Agriculture, Fisheries and Forestry portfolio

The Agriculture, Fisheries and Forestry portfolio is responsible for advising government and implementing programs in relation to support for the agriculture, fisheries and forestry sectors, including drought resilience and preparedness, plant and animal biosecurity, and Australia’s agricultural, fisheries, food and forestry industries.

The Department of Agriculture, Fisheries and Forestry (the department) is the lead entity in the portfolio. It is responsible for developing and implementing policies and initiatives to promote more sustainable, productive, internationally competitive and profitable Australian agricultural, food and fibre industries; and safeguarding Australia’s animal and plant health status to maintain overseas markets and protect the economy and environment from exotic pests and diseases. Further information is available from the department’s website.

In addition to the department, there are eight entities  within the portfolio that deliver specialised functions, including the management of Commonwealth fisheries; regulation of pesticides and veterinary medicines; administration of farm business loans; and research and development for the wine, cotton, fisheries, grains and rural industries.

In the 2026–27 Portfolio Budget Statements (PBS) for the Agriculture, Fisheries and Forestry portfolio, the aggregated budgeted expenses for 2026–27 totalled $4.0 billion. The PBS contain budgets for those entities in the general government sector (GGS) that receive appropriations directly or indirectly through annual appropriation Acts.

The level of budgeted departmental  and administered  expenses, and the average staffing level for entities in the GGS within this portfolio are shown in Figure 1. The Department of Agriculture, Fisheries and Forestry represents the largest proportion of the portfolio’s expenses, and departmental expenses of the portfolio are the most material component, representing 57 per cent of expenses.

Figure 1: Agriculture, Fisheries and Forestry portfolio – total expenses and average staffing level by entity

Source: ANAO analysis of 2026–27 Portfolio Budget Statements.

In determining the 2026–27 audit work program, the ANAO considers prior-year audit and other review findings and what these indicate about portfolio risks and areas for improvement. The ANAO also considers emerging risks from new investments or changes in the operating environment.

The primary risks identified by the ANAO for the portfolio relate to the effective and efficient delivery of policy advice, activities and programs in relation to its responsibilities. These responsibilities relate to the growth, resilience and sustainability of Australia’s agriculture, fisheries and forestry sectors, as well as Australia’s national biosecurity system. The value of agricultural, fisheries and forestry sectors is forecast to be $101.2 billion in 2026–27. There remains an important focus on implementing risk-based regulatory regimes, strong risk-based biosecurity controls and effective management of resources to achieve the department’s purpose. 

The Agriculture, Fisheries and Forestry portfolio’s strategic risks relate to governance, service delivery, regulation and financial management.

Governance

Audits of the Department of Agriculture, Fisheries and Forestry have found weaknesses in the department’s governance arrangements. Issues have been identified in relation to risk management, demonstrating value for money in the department’s procurement activities, workforce planning, record keeping, compliance with whole of Australian Government travel arrangements and implementation of recommendations. 

The portfolio has experienced continuous change in governance arrangements which has presented challenges in relation to clarity of accountability and the effectiveness of delivery on strategies, plans and actions, thereby reducing confidence in the ability to achieve intended outcomes. 

Effective change programs require ongoing and active oversight. Over time, the department has had multiple change programs. While the department has a change support capability, it is not always clear that change programs have been implemented to achieve their desired outcomes. 

Service delivery

The Agriculture, Fisheries and Forestry portfolio is responsible for the delivery of programs relating to drought preparedness and resilience, phasing out of live sheep exports by sea, and biosecurity operations. There is a risk that these initiatives may not achieve desired outcomes if they are not supported by appropriate IT systems, sufficient planning, consultation, a clear rationale of where intervention is required, use of the best available evidence, and application of appropriate risk management and performance measurement frameworks. 

Regulation

The department is responsible for a range of regulatory functions: regulating agricultural goods imported into and exported from Australia; agricultural levies; imported food safety; imported wood and paper products; and pest and disease risks of goods, people and vessels arriving in Australia. Past ANAO audits have identified deficiencies in the department’s arrangements to manage its performance as a regulator. 

The department has joint responsibilities with international, state and territory regulators in biosecurity. Arrangements should be clear and coordinated to ensure that biosecurity risks are being managed appropriately.

There has been a significant change in the regulatory framework for agricultural levies which will require related changes to regulatory administrative practices and staff training to fully implement.

Financial management

The financial stability of the department remains a key watchpoint. The department’s budget is made up of appropriation revenue and a very large cost recovery component (fees, charges and levies). For a number of years, the department’s cost recovery increases did not match its expenses. This meant appropriation funding was supplementing “user” (importers and exporters) costs. Commonwealth entities should develop mechanisms to manage any under- or over-recovery and expenses and revenue should be aligned on a yearly basis or over a longer period where justified.  Continued implementation of actions to improve the department’s financial management are required to manage the risk that financial management practices do not support the department to deliver key functions, therefore affecting its performance as a regulator and its ability to effectively deliver services.

The ANAO’s performance audit activities involve the independent and objective assessment of all or part of an entity’s operations and administrative support systems. Performance audits may involve multiple entities and examine common aspects of administration or the joint administration of a program or service.

During the performance audit process, the ANAO gathers and analyses the evidence necessary to draw a conclusion on the audit objective. Audit conclusions can be grouped into four categories:

• unqualified;
• qualified (largely positive);
• qualified (partly positive); and
• adverse.

In the period between 2021–22 to 2025–26 entities within the Agriculture, Fisheries and Forestry  portfolio were included in tabled ANAO performance audits eight times.  The conclusions directed toward entities within this portfolio were as follows:

• none were unqualified;
• two were qualified (largely positive);
• five were qualified (partly positive); and
• one was adverse.

Figure 2 shows the number of audit conclusions for entities within the Agriculture, Fisheries and Forestry portfolio that were included in ANAO performance audits between 2021–22 and 2025–26 compared with all audits tabled in this period.

Figure 2: Audit conclusions 2021–22 to 2025–26: entities within the Agriculture, Fisheries and Forestry portfolio compared with all audits tabled

Source: ANAO data.

The ANAO’s annual audit work program is intended to deliver a mix of performance audits across seven audit activities: governance; service delivery; grants administration; procurement; policy development; regulation and asset management and sustainment. These activities are intended to cover the scope of activities undertaken by the public sector. Each performance audit considers a primary audit activity. Figure 3 shows audit conclusions by primary audit activity for audits involving entities in the Agriculture, Fisheries and Forestry portfolio.

Figure 3: Audit conclusions by activity for audits involving entities within the Agriculture, Fisheries and Forestry portfolio, 2021–22 to 2025–26

Source: ANAO data.

Overview

Entities within the Agriculture, Fisheries and Forestry portfolio, and the risk profile of each entity, are shown in Table 1.

Table 1: Agriculture, Fisheries and Forestry portfolio entities and risk profile

Department of Agriculture, Fisheries and Forestry

The Department of Agriculture, Fisheries and Forestry (DAFF) is responsible for developing and implementing policies and initiatives to promote more sustainable, productive, internationally competitive and profitable Australian agricultural, food and fibre industries; safeguarding Australia’s animal and plant health status to maintain overseas markets and protect the economy and environment from exotic pests and diseases.

The Department of Agriculture, Fisheries and Forestry’s total budgeted revenues for 2026–27 are $2.4 billion, with other taxes and sales of goods and rendering of services representing 28 per cent each, as shown in Figure 4. Loan receivables represents 58 per cent of total budgeted assets.

Figure 4:  Department of Agriculture, Fisheries and Forestry’s total budgeted financial statements by category ($’000)

Source: ANAO analysis of 2026–27 Portfolio Budget Statements.

There are three key risks for the Department of Agriculture, Fisheries and Forestry’s 2025–26 financial statements that the ANAO has highlighted for specific audit coverage. The ANAO considers three of these risks as potential key audit matters (KAMs).

• The accuracy and completeness of revenue relating to import and export regulatory functions. There is a risk that the complex administrative and information technology processes that support the collection of import and export fees and charges could result in the under collection of revenue. Fees and charges are recognised on the basis of declarations by importers and exporters. (KAM – Accuracy and completeness of own-source revenue)
• The accuracy and completeness of primary industry levies and charges, due to the complex calculations used to derive the estimated collections based on agricultural production and the risk of under collection arising from the submission of inaccurate levy returns and declarations. (KAM – Accuracy and completeness of the collection and distribution of primary industry levies and charges)
• The valuation of drought and farm finance assistance loans due to the nature of eligibility criteria, differing limits and lending terms and the complexity of calculations in determining the valuation and impairment of the loans balance at year end. These loans are coordinated through the state and territory governments and, for new loans made after 1 July 2018, through the Regional Investment Corporation. (KAM – Valuation of loans to the state and territory governments for drought and farm finance assistance)