2022-23 Annual Report

The new strategy will set the direction for industry and government collaboration to grow manufacturing and drive South Australia’s economic transition towards a knowledge-based, resilient, and greener economy.

Further to this, though initiatives such as the South Australian Industry Capability Network (ICN) program, it is more important than ever that we connect local suppliers to new business opportunities, building capability and capacity in supply chains across major defence projects.

To ensure businesses have access to the skills they need, particularly in regional South Australia, we’ve continued to deliver skilled, employer-sponsored and business migration programs, with 2022-23 seeing a significant increase in employers utilising the state’s Designated Area Migration Agreements.

The department has been critical to delivering on the government’s commitment to supporting and enabling South Australian small and family business to succeed.

We established the Office for Small and Family Business to provide seamless access to support and resources, and we conducted a comprehensive engagement program with the small business community, harnessing these insights to shape a Small Business Strategy for South Australia.

We launched the Women in Business Program to address the specific barriers that women face in starting, running and growing businesses, and have planned a whole suite of initiatives to increase fundamental business skills, improve digital readiness and cyber awareness, and help small businesses to become more sustainable.

We have also provided critical support to small businesses impacted by the River Murray flooding, both on the ground in the region, and through a range of grants.

The department has continued to support South Australia’s creative industries to grow and thrive.

Through the Music Development Office, we supported South Australian music industry professionals to get back on stages at events and in live music and hospitality venues with See It LIVE e-vouchers, venue upgrade grants, event grants, mental health support, and more.

We have also supported our state’s world-renowned screen industry, preparing to hold the first annual iteration of the iconic Adelaide Film Festival later this year, and supporting the South Australian Film Corporation to launch a workforce development strategy in response to skills shortages in the industry.

We are also contributing to developing a framework for a new state-wide innovation model, which will strategically connect the state’s innovation districts, including Lot Fourteen, Tonsley and Adelaide BioMed City, along with other knowledge and manufacturing hubs, and capitalise on our competitive advantages in defence, space, advanced manufacturing and critical technologies industries.

The opportunity to create a new university – Adelaide University – a combined University of Adelaide and University of South Australia is nationally and internationally significant. The new university would have a mission focused on access and equity, while undertaking research of scale and focus, aligned to the economic priorities of the state.

Looking forward, the department will continue to work with our stakeholders within the higher education sector to not only support the creation of the new Adelaide University, but to drive a high performing, strong higher education sector in South Australia.

The department will work with the higher education sector to deliver the desired outcomes for the state of excellence in research, translation and commercialisation, engagement with industry and business, equity and access for all students, a strong, stable and secure sector and improved integration with vocational education and training.

It has been an incredibly productive and busy year for the department and we remain committed to continuing to drive the state’s economic transformation towards a knowledge-based, resilient and greener economy for the future.

During 2022-23, there were changes to the agency’s structure and objectives as a result of internal reviews. An organisational change process was conducted between September – November 2022 to review and realign existing functions following the creation of the Department for Industry, Innovation and Science on 1 July 2022. No functions were transferred in or out of the department and the new structure became effective 1 November 2022.

Hon Susan Close MP

Susan Close is the Deputy Premier of South Australia and the Minister for Climate, Environment and Water; Minister for Industry, Innovation and Science; and Minister for Defence and Space Industries. Susan has been the Member for Port Adelaide since 2012.

Before entering parliament, Susan was an executive in the Department of Environment and Natural Resources and played a key role in the establishment of the Adelaide Dolphin Sanctuary as a community advocate.

She previously worked at the University of Adelaide managing student services and holds a PhD from Flinders University. Susan is a fierce advocate for women in the workplace, passionate about ensuring accessible and quality education for all, deeply concerned about protecting nature, and driven to deliver the best economic outcomes for South Australia so everyone can benefit from a prosperous future for our state.

Hon Andrea Michaels MP

Andrea Michaels is the South Australian Minister for Small and Family Business, Consumer and Business Affairs, and Arts. She is also the Member for Enfield, representing the community in Adelaide’s inner north and north-eastern suburbs.

Prior to becoming a Minister, Andrea was running her own small business – a legal practice specialising in commercial law and supporting small and family businesses. She has also been Treasurer of the Law Society of SA, a company director, and a partner at industry leading law firms, as well as a chartered tax advisor and accredited family business advisor.

Andrea is passionate about promoting diversity, supporting more women to launch and grow businesses, and building safe, fair and friendly communities. She is focused on ensuring the government is easy to do business with, that small businesses are supported to succeed, and that the whole community has access to a thriving cultural and creative sector.

Adam Reid, Chief Executive

Adam is the Chief Executive of the Department for Industry, Innovation and Science, which is responsible for supporting sustainable economic growth through research and innovation, technology development, industry and business growth, manufacturing capability, and skilled and business migration.

Adam brings more than 20 years of experience in the South Australian public sector in industry, science and innovation policy, and program delivery. Prior to becoming the Chief Executive, Adam was the Executive Director of the Innovation and Science division within the Department for Innovation and Skills, responsible for developing and supporting the state’s innovation system to drive economic growth.

Previously, Adam held executive positions within the Department of State Development and Department of Trade and Economic Development, where he led industry development policy and strategy implementation, small business and investment management.

In his previous roles, Adam led the development of South Australia’s manufacturing strategy, the purchase and planning of the Tonsley Innovation District, investments in strategic research infrastructure and capabilities, and the transition of the state’s automotive supply chain.

Adam holds a Bachelor of Commerce from the University of Adelaide.

Phuong Chau, Executive Director, Portfolio Delivery

Phuong is the Executive Director, Portfolio Delivery responsible for leading the strategic enabler teams which support and enable the delivery of the department’s strategic and operational objectives. This includes responsibility for corporate & business services, people, policy, communications and engagement, governance and migration. The group is focussed on driving and supporting the department to drive an enterprise approach which delivers customer service with our people and clients.

As of 1 July 2023, Phuong Chau has transferred to a new role in the Department for Treasury and Finance.

Andrew Dunbar, Executive Director, Research and Innovation

Andrew is the Executive Director, Research and Innovation, responsible for developing and supporting the state’s innovation system in partnership with other parts of government, research organisations, industry and business. This includes responsibility for the Office of the South Australian Chief Entrepreneur and the Office of the South Australian Chief Scientist. The group is focused on supporting sustainable economic growth by:

• increasing South Australia’s global standing in science and research
• encouraging commercialisation of research through industry, research and government collaboration
• supporting entrepreneurs, startups and small business, and attracting early stage and venture capital, and
• working across government, with industry and the community to support the skills, workforce, and international relations benefits brought about by a strong higher and international education sector.

Callan Markwick, Executive Director, Industry and Workforce Capability

Callan is the Executive Director, Industry and Workforce Capability, responsible for developing and supporting our creative industries and supporting sustainable economic growth through industry development, technology adoption and workforce strategies. With more than 20 years' experience in leadership roles in both public and private sector, Callan has developed in-depth knowledge and expertise in modern manufacturing, local and national training and education systems, workforce planning, and public sector policy and delivery.

Prior to being Executive Director, Callan held senior roles delivering systemic reform, key partnerships with industry, and complex projects and strategies of state and national importance. Callan holds a Graduate Certificate of Leadership from Deakin University along with tertiary qualifications in project management, human resources, training and career development.

South Australian Film Corporation Act 1972

Flinders University Act 1966

Torrens University Australia Act 2013

University of Adelaide Act 1971

University of South Australia Act 1990

Adelaide Film Festival

JamFactory

South Australian Film Corporation

StudyAdelaide

The department supports sustainable economic growth by developing creative, innovative and productive industries and businesses that leverage South Australia’s strengths.

During 2022-23, the department delivered support and assistance to small businesses in communities impacted by the River Murray flood event.

Highlights from 2022-23:

• Delivered the state’s largest ever General Skilled Migration program, including substantial increase to offshore skilled migration, helping business and industry access a skilled workforce to meet skill gaps in the local market.
• South Australia’s employers heavily utilised the state’s Designated Area Migration Agreements (DAMAs), with positions endorsed in 2022-23 more than doubling total endorsements during the previous three years in which the DAMAs have been in place.
• Continued to invest in research talent, research infrastructure, industry-research collaboration and high-growth, high impact potential early-stage businesses, including by:
  • supporting five new Cooperative Research Centres (CRCs) bids, which are being considered under Round 24 of the Commonwealth CRC Program
  • committing $25.4 million over five years to continue support and upgrades to South Australia’s National Collaborative Research Infrastructure Strategy (NCRIS) facilities
  • establishing two Industry Doctoral Training Centres, one in biomanufacturing and one in the industrial application of quantum technologies
  • supporting high-growth and high impact potential early-stage businesses through the Startup Hub at Lot Fourteen and through direct funding initiatives, including the Research and Innovation Fund (Seed-Start) and the South Australian Venture Capital Fund.

• Continued to support increased awareness and resilience of South Australian industry to cyber threats through the Australian Cyber Collaboration Centre.
• Facilitated the government’s commitment to evaluating the feasibility of creating a new university for the future, Adelaide University, through a Statement of Cooperation co-signed with the Australian Government, the University of South Australia and the University of Adelaide.
• Launched the Enabling Educator Excellence Scholarship Program through the three public universities to support targeted cohorts commencing a teaching degree to strengthen and diversify the teaching profession in South Australia
• Launched the Office for Small and Family Business, a clear entry point for small business information and support.
• Conducted a state-wide small business engagement to inform the development of a Small Business Strategy 2023-2030, and developed programs to respond to the immediate needs identified by small businesses in South Australia.
• Launched the Women in Business Foundations Program and the Women in Business Advisory Program, which deliver capability and skills development for women in the early stages of their business journey, as well as focusing on preparing women owners and entrepreneurs of established businesses for growth.
• Supported small businesses impacted by the River Murray flood event through delivering grants, on-the-ground support and financial counselling services.
• Connected South Australian suppliers to key projects in defence, energy (including hydrogen), mining, infrastructure and construction sectors.
• Launched the Manufacturing Growth Accelerator with Flinders University at the Tonsley Innovation District Factory of the Future site, building the capabilities and skills of manufacturers in advanced manufacturing technologies.
• Delivered programs to local manufacturers to build capabilities and become more competitive through the adoption of manufacturing technologies, and to take advantage of new opportunities in areas such as the green economy in Australia and overseas.
• Established in partnership with the Commonwealth Government, the South Australian Defence Industry Workforce and Skills Taskforce.
• Commenced the development of workforce strategies and roadmaps to support key industries and regions to grow and develop their workforces.
• Implemented workforce development initiatives, including Workforce Innovation Projects and the Regional Workforce Connector and Collaboration Program.
• Facilitated industry development activities across creative businesses, including the music, fashion and screen sectors.
• Delivered the Adelaide CreaTech City Challenge in partnership with the City of Adelaide and Adelaide Economic Development Agency and supported the 2023 Electric Dreams Conference.
• Supported the South Australian music industry to recover from the impacts of the COVID-19 pandemic through Music Development Office programs, and successfully implemented and delivered the suite of grant programs under the See It LIVE election commitment package to support the state’s live music industry.
• Supported a new production partnership between the South Australian Film Corporation and ABC to create a pipeline of screen production in South Australia.
• Annualised the Adelaide Film Festival and, through the 2023-24 State Budget, achieved additional funding to increase the Adelaide Film Festival Investment Fund.
• Supported screen development organisation The Mercury to transition to a new business model.
• Initiated development of the Green Industrial Transition Roadmap and a new South Australian Manufacturing Strategy to support South Australia’s green reindustrialisation and manufacturing capability uplift.

Employment opportunity programs

Agency performance management and development systems

Work health, safety and return to work programs

*number of claimants assessed during the reporting period as having a whole person impairment of 30% or more under the Return to Work Act 2014 (Part 2 Division 5)

**before third party recovery

Data for previous years is available at: Data.SA

Executive employment in the agency

Data for previous years is available at: Data.SA

The Office of the Commissioner for Public Sector Employment has a workforce information page that provides further information on the breakdown of executive gender, salary and tenure by agency.

Financial performance at a glance

The following is a brief summary of the overall financial position of the agency. The information is unaudited. Full audited financial statements for 2022-2023 are attached to this report.

The department reported a $9.847 million net loss in the 2022-23 financial year. This result is $27.528 million favourable compared to original budget, mainly relating to the transfer of budgets to the Department for Education following the transfer of training and skills functions effective from 1 July 2022. Further detail is provided at note 1.5 of the full audited financial statements.

The department’s net assets at 30 June 2023 were $18.421 million, $42.484 million lower than original budget, mainly due to the transfer of net assets to the Department for Education following the transfer of training and skills functions effective from 1 July 2022 that was not included in original budget, partially offset by an improvement in net result compared to original budget.

Consultants disclosure

The following is a summary of external consultants that have been engaged by the agency, the nature of work undertaken, and the actual payments made for the work undertaken during the financial year.

Consultancies with a contract value below $10,000 each

Consultancies with a contract value above $10,000 each

Data for previous years is available at: Data.SA

See also the Consolidated Financial Report of the Department of Treasury and Finance for total value of consultancy contracts across the South Australian public sector.

Contractors disclosure

The following is a summary of external contractors that have been engaged by the agency, the nature of work undertaken, and the actual payments made for work undertaken during the financial year.

Contractors with a contract value below $10,000

Contractors with a contract value above $10,000 each

Data for previous years is available at: Data.SA

The details of South Australian Government-awarded contracts for goods, services, and works are displayed on the SA Tenders and Contracts website. View the agency list of contracts.

The website also provides details of across government contracts.

Risk and audit at a glance

The department’s Risk and Audit Committee (RAC) in its advisory capacity assists the Chief Executive to fulfil their responsibilities in matters relating to integrity of the financial statements, compliance with relevant legal and regulatory requirements, performance of the internal audit function and efficient and effective management of all aspects of risk. The RAC is chaired by an external member and met six times in 2022-23.

The department’s risk profile has evolved, resulting in the identification of 10 strategic risks, which have been assigned to experienced Senior Managers and Directors for monitoring and reporting, with oversight provided by the leadership team and the RAC. Risk management strategies have continued to be deployed across the department through the revised enterprise risk management framework.

Several internal audit projects, compliance and framework reviews and assurance activities are regularly performed to test, support and enhance the effectiveness of internal controls.

Fraud detected in the agency

NB: Fraud reported includes actual and reasonably suspected incidents of fraud.

Strategies implemented to control and prevent fraud

The department is strongly committed to the identification, management and response to the risk of fraud through promoting a positive risk culture, maintaining a robust internal controls environment and employee awareness.

Employees are screened prior to an offer of employment being made and provided with resources relating to the Public Sector Code of Ethics and a mandatory Code of Ethics awareness training program. Expectations are regularly communicated to staff through reminders of their responsibilities regarding the Code of Ethics, gifts and benefits, conflicts of interest, and secondary employment.

The department maintains a robust corporate governance framework, grants management framework, internal audit plan and enterprise risk management framework, which collectively contribute to the organisational governance and control environments for managing risks, including fraud risks. The department also maintains fraud control policies and procedures, which outline the mandatory process to report all cases of actual or suspected fraudulent activity, and the fraud control plan documents the activities performed across the agency to enable the prevention, detection and reduction of fraud, corruption, misconduct and maladministration.

The department also maintains an effective internal control environment supported by risk-based Financial Management Compliance Program activities to provide assurance that the agency’s financial report is not materially misstated due to fraud.

On 1 May 2023, the Independent Commissioner Against Corruption (ICAC) announced that the department was selected for an evaluation of practices, policies and procedures related to the administration of grants programs. The department is assisting ICAC in its evaluation and looks forward to the ICAC’s findings in due course, and any recommendations to further improve internal controls, reporting and management systems.

Data for previous years is available at: Data.SA

Public interest disclosure

Number of occasions on which public interest information has been disclosed to a responsible officer of the agency under the Public Interest Disclosure Act 2018:

0

Data for previous years is available at: Data.SA

Note: Disclosure of public interest information was previously reported under the Whistleblowers Protection Act 1993 and repealed by the Public Interest Disclosure Act 2018 on 1/7/2019.

NIL

Reporting required under the Carers’ Recognition Act 2005

The Department for Industry, Innovation and Science is an applicable organisation for the purposes of the Carers’ Recognition Act 2005.

Section 7: Compliance or non-compliance with section 6 of the Carers Recognition Act 2005 and (b) if a person or body provides relevant services under a contract with the organisation (other than a contract of employment), that person's or body's compliance or noncompliance with section 6.

The Department provides online training to staff regarding disability and inclusion, which includes the Carer’s Recognition Act 2005, as well as flexible working and special leave options to assist employees in meeting caring responsibilities.

Number of public complaints reported

Data for previous years is available at: Data.SA

Service improvements

The department is committed to ensuring information and services are easy to access, and welcomes feedback from our customers and the general public.

Of the 69 feedback comments received during 2022-2023, one was a complaint, and the remainder were operational enquiries or suggestions referred to the relevant business unit for action.

These feedback and complaints assist the department to continually improve the overall customer experience and service.

Compliance statement