Annual Report 2010-11 - Suburban Land...

LAND DEVELOPMENT AGENCY

CORRIGENDUM TO THE ANNUAL

REPORT

2010 - 11

C21. ECOLOGICALLY SUSTAINABLE DEVELOPMENT

RESOURCE CONSUMPTION 2009-10 AND 2010-11

Indicator as at 30 June

UnitFigures Provided in

2009-10 Annual Report

Revised 2009-10 2010-11

Line General Office Total Office Total Office Total

L1Occupancy –

staff full-time equivalent

Numeric (FTE)

80.1 80.1 80.1 80.1 97.05 97.05

L2Area office space – net

lettable area

Square metres

(m2)2,290 2,190 2,190 2,190 2,190

Stationary Energy

Office Total Office Total Office Total

L3 Electricity useKilowatt

hours81,096 291,280 372,601 625,766 372,371 542,878

L4

Renewable energy use

(GreenPower + EDL land fill

gases)

Kilowatt hours

87,477 32,387 68,929 18,177 39,541

L5

Percentage of renewable

energy used (L4 / L3 x 100)

Percentage 30 8.7 11.0 4.9 7.3

L6Natural Gas

useMega-joules

0 0 1,030,740 1,030,740 1,031,035 1,031,035

L7*Total energy

useMega-joules

733,690 2,372,104 3,283,498 2,371,570 2,985,396

Intensities

L8Energy

intensity per FTE (L7 / L1)

Mega-joules /

FTE9,159 29,614 N/A 24,437 N/A

Land Development Agency ANNUAL REPORT 2010 - 11 1

Corrigendum to the Annual Report 2010-11




Revised 2009-10 2010-11

L9

Energy intensity per square metre

(L7 / L2)

Mega-joules / m2 320 1,083 N/A 1,083 N/A

Transport Office Total Office Total Office Total

L10Total number

of vehiclesNumeric 6 6 6 5 5

L11Total vehicle kilometres travelled

Kilometres (km)

115,240 115,240 89,574 89,574

L12Transport fuel

(Petrol)Kilolitres 7.43 7.52 7.52 4.37 4.366

L13Transport fuel

(Diesel)Kilolitres 4.22 4.28 4.28 6.48 6.478

L14Transport fuel

(LPG)Kilolitres - 0 0 0 0

L15Transport fuel

(CNG)Kilolitres - 0 0 0 0

L16*Total transport

energy useGigajoules 417 422 422 399 399

Water Office Total Office Total Office Total

L17 Water use Kilolitres 947 5117 947 5,582 1,092 4,357

Intensities

L18Water use per FTE (L17 / L1)

Kilolitres / FTE

11.82 11.82 N/A 11.25 N/A

L19Water use per square metre

(L17 / L2)

Kilolitres / m2 0.43 0.43 N/A 0.50 N/A

Resource Efficiency and

WasteOffice Total Office Total Office Total

L20Reams of

paper purchased

Reams 1,871 2375 2375 2539 2539

L21Recycled con-tent of paper

purchasedPercentage 63 49.7 49.7 30.9 30.9


Land Development Agency ANNUAL REPORT 2010 - 112




Revised 2009-10 2010-11

L22

Estimate of general waste (based on bins

collected)

Litres 47,500 47,500 57,551 57,551

L23

Estimate of comingled ma-terial recycled (based on bins

collected)

Litres 42,720 44,640 46,800 48,000 53,760

L24

Estimate of paper recycled (based on bins

collected)

Litres 118,320 119,760 119,760 111,360 111,360

L25

Estimate of organic mate-

rial recycled (based on bins

collected)

Litres 3,500 3,500 4,241 4,241

Greenhouse Gas Emissions

Office Total Office Total Office Total

L26*

Total station-ary energy

greenhouse gas emissions

(All Scopes)

Tonnes CO

2-e

210.26 415.04 640.14 446.26 605.75

L27*

Total transport greenhouse

gas emissions (All Scopes)

Tonnes CO

2-e

31.28 31.67 31.67 29.99 29.99

Intensities

L28

Greenhouse gas emissions

per person (L26 / L1)

Tonnes CO

2-e / FTE

2.62 5.18 N/A 4.60 N/A

L29

Greenhouse gas emissions

per square metre (L26

/ L2)

Tonnes CO

2-e / m2 0.092 0.19 N/A 0.20 N/A

L30

Transport greenhouse

gas emissions per person (L27 / L1)

Tonnes CO

2-e / FTE

0.39 0.40 N/A 0.31 N/A



Supporting notes to table:

Revised data for 2009-2010 has been included to reflect new reporting methods which have resulted in greater data

accuracy. Revised 2009-2010 figures can be used to draw more accurate comparisons in Resource Consumption

between 2009-2010 and 2010-2011.

The figures provided in the 2009-2010 Annual Report should not be used for comparison for the following reasons:

• data sets are not the same as reported 2009-2010 figures were not based on a complete data set;

• breakdown between office and other electricity uses was not reflective of actual building use; and

• accuracy has improved this year.

OSCAR is used to gather and report on all internal energy, water and greenhouse gas consumption as mandated by

the ACT Government.

GENERALFTE figures are provided by Shared Services and include all LDA staff members. All LDA staff members occupy the

office space located at TransACT House Level 6 and 7 as recorded as the Net Lettable Area (NLA) of office space.

STATIONARY ENERGYStationary Energy is divided into office consumption and total consumption. Office consumption is any

consumption related directly to our internal business operations. This includes the following categories as reported

in OSCAR:

• office – Public Areas (includes all Sales Offices);

• office – Tenant Light and Power (TransACT House Level 6 and 7); and

• office – Central Services (percentage of total base building consumption as provided by TAMSD).

Office – Central Services were assumed to be the same for 2009-2010 and 2010-2011 as accurate data was not easily

accessible for the 2009-2010 reporting period. Office use and area did not change dramatically between the

reporting periods and this is the best estimate available. These were not included in the 2009-2010 Annual Report

as the relevant information was not available to the LDA at that time..

Other energy consumption is generated at LDA managed estates and properties throughout the ACT. These estates

change over time as land is developed and sold. This consumption includes irrigation pumps, sewer valves, gross

pollutant traps, offsite storage sheds etc.

Renewable energy is purchased through a whole-of-government contract. The LDA was not invoiced for renewable

energy between January 2011 and June 2011 resulting in a significant decrease from 2009-2010 figures.

Energy intensities have been reported using office consumption data only levels. Intensities based on total

consumption data are not indicative due to the nature of the LDA operations and the types of external meters being

Land Development Agency ANNUAL REPORT 2010 - 114


managed as described above. They are not directly related to the number of FTE staff employed by the LDA or the

amount of office NLA.

TRANSPORTThe LDA vehicle fleet is managed by SG Fleet (WhoG provider) who provide accurate data on the kilometres travelled

and fuel consumption of all LDA fleet vehicles. Fuel substitution away from petrol and towards diesel has occurred

and is evident in the reported figures.

RESOURCE EFFICIENCY AND WASTEWaste is reported based on the number of bins collected for a particular waste/recycling stream. Unless all bins are

full, the reported figures may not be the actual amount of waste produced but are the best estimate available at this

point in time.

General waste from the LDA Offices is not separately sorted from other waste generate at TransACT House. A waste

audit was conducted in November 2009 and the annual volume of landfill waste (47,500L) was estimated. Landfill

waste was then estimated for 2010-2011 based on the increase in FTE for the period as waste is proportionate to the

number of staff.

Similarly, the amount of organic waste for 2009-2010 was gathered from the Waste audit conducted in November

2009 and then extrapolated for 2010-2010 based on the increase in FTE for the period.

GREENHOUSE GAS EMISSIONSTotal stationary energy greenhouse gas emissions are calculated as net emissions - those generated from stationary

energy consumption minus any greenhouse gas emissions offset through the purchase of renewable energy.



Land deveLopment agency

annuaL RepoRt

2010 - 11

ISBn: 978-0-642-60564-1

© australian capital territory, canberra 2010

this work is copyright. apart from any use as permitted under the copyright act 1968, no part

may be reproduced by any process without written permission from the territory Records office,

community and Infrastructure Services, territory and municipal Services,

act government, gpo Box 158, canberra city act 2601.

produced by publishing Services for the Land development agency

enquiries about this publication should be directed to:

Land development agency

Street address:

Level 6 transact House

470 northbourne ave

dIcKSon act 2602

postal address:


gpo Box 158

canBeRRa act 2601

telephone (02) 6205 0600

Job no 11/1205

Land development agency AnnuAl RepoRt 2010 - 11 iii

Land development agency AnnuAl RepoRt 2010 - 11iv

Land development agency AnnuAl RepoRt 2010 - 11 v

Table of conTenTs

transmittal certificate iii table of contents v glossary of technical terms vi glossary of acronyms vii

a1 tHe oRganISatIon 2

a2 oveRvIeW 9

a3 HIgHLIgHtS 9

a4 outLooK 9

a5 management dIScuSSIon 18

a6 FInancIaL RepoRtS 29 (Land development agency, crace Joint venture,

Forde Joint venture and Woden green Joint venture)

a7 Statement oF peRFoRmance 167

a8 StRategIc IndIcatoRS 178

a9 anaLySIS oF agency peRFoRmance 179

a10 tRIpLe Bottom LIne RepoRt 186

B1 communIty engagement 192

B2 InteRnaL and eXteRnaL SecuRIty 194

B3 LegISLatIve aSSemBLy commIttee InQuIRIeS and RepoRtS 197

B4 LegISLatIve RepoRt 198

c1 RISK management and InteRnaL audIt 202

c2 FRaud pReventIon 203

c3 puBLIc InteReSt dIScLoSuRe 204

c4 FReedom oF InFoRmatIon 205

c5 InteRnaL accountaBILIty 210

c6 HR peRFoRmance 219

c7 StaFFIng pRoFILe 222

c8 LeaRnIng and deveLopment 226

c9 WoRKpLace HeaLtH and SaFety 228

c10 WoRKpLace ReLatIonS 230

c11 StRategIc BuSHFIRe management pLan 232

c12 StRategIc aSSet management 233

c13 capItaL WoRKS 235

c14 goveRnment contRactIng 238

c15 communIty gRantS/aSSIStance/SponSoRSHIp 256

c16 teRRItoRy RecoRdS 257

c17 Human RIgHtS act 2004 259

c18 commISSIoneR FoR tHe envIRonment 260

c19 act muLtIcuLtuRaL StRategy 261

c20 aBoRIgInaL and toRReS StRaIt ISLandeR RepoRtIng 262

c21 ecoLogIcaLLy SuStaInaBLe deveLopment 263

c22 act Women’S pLan 2010-2015 266

c23 modeL LItIgant guIdeLIneS 267

compliance Index 268

alphabetical Index 270

Land development agency AnnuAl RepoRt 2010 - 11vi

Glossary of TecHnIcal TerMs

term Definition

englobounserviced land released to the private sector for servicing and sale. Individual serviced dwelling sites released by englobo release become available for purchase over subsequent years

greenfield new residential area

joint venturepartnership between the Lda and the joint venture partner to release serviced dwelling or multi-unit sites for dwellings

raw land unserviced land

Land development agency AnnuAl RepoRt 2010 - 11 vii

Glossary of acronyMs

actpLa act planning and Land authority

acat act civil and administrative tribunal

acc agency consultative committee

actpS act public Service

amp asset management plan

anu australia national university

aSa australian accounting Standards

aWas australian Workplace agreements

BaZ Bushfire abatement Zone

Bmp Bushfire management plan

Bop Bushfire operational plan

ceFI chief executive Financial Instructions

ceo chief executive officer

cHc community Housing canberra Ltd

cIc canberra Investment corporation australia

cmcd chief minister and cabinet directorate

cng compressed natural gas

co2-e carbon dioxide emissions

cogS canberra organic growers Society

cSd community Services directorate

da development application

decceWdepartment of the environment, climate change, energy and Water (now eSdd)

dg director general

dHa defence Housing australia

dHcS department of disability, Housing and community Services (now cSd)

dRp design Review panel

eap employee assistance program

edd economic development directorate (formerly LapS)

edp estate development plan

epBc environmental protection and Biodiversity conservation

Land development agency AnnuAl RepoRt 2010 - 11viii

eSa emergency Services agency

eSd environmentally Sustainable design

eSdd environment and Sustainable development directorate (formerly decceW)

Fma Financial Management Act 1996

FoI Freedom of Information

Fte Full-time equivalent

gFc global Financial crisis

gLo government Land organisations

gpB government procurement Board

gRcS gungahlin Regional community Services

gSo government Solicitors office

HaF Housing affordability Fund

HIa Housing Industry association

HR Human Resources

HSR Health Safety Representative

IpS IpS Worldwide

JacS Justice and community Safety directorate

Jv Joint venture

Jvmc Joint venture management committees

LapS department of Land and property Services (now edd)

Lda Land development agency

Lpg liquefied petroleum gas

LRp Land Release program

mBa master Builders association

mou memorandum of understanding

m2 Square metre

nLa net Lettable area

nteR national tax equivalent Regime

oHS occupational Health and Safety

oHSRac occupational Health, Safety and Rehabilitation advisory committee

oScaR online System for comprehensive activity Reporting

pda Planning and Development Act 2007

pIa planning Institute of australia

pRg project Reference group

Land development agency AnnuAl RepoRt 2010 - 11 ix

pSm public Sector management

pSma Public Sector Management Act 1994

pte public trading enterprise

Red Respect, equity and diversity

Rmp Records management plan

SBmp Strategic Bushfire management plan

Sea Special employment arrangement

SoI Statement of Intent

SRmp Strategic Risk management plan

SSc Shared Services centre

SQm Square metres

tBa territory Banking account

tamSd territory and municipal Services directorate

taRdIS territory administrative Records disposal Schedule

tRa Territory Records Act 2002

tvKaaa Keywork aaa thesaurus

udIa urban development Institute of australia

Wcc Workplace consultative committee

Whog Whole of government

WHSc Workplace Health and Safety committee

WHS Workplace Health and Safety

WSR Workplace Safety Representative

Land development agency AnnuAl RepoRt 2010 - 11x

Land development agency AnnuAl RepoRt 2010 - 11 1

performance and Financial management

Reporting

SectIon a

Land development agency AnnuAl RepoRt 2010 - 112

SectIon a performance and Financial management Reporting

a1. THe orGanIsaTIon

the Land development agency (Lda) is the act government’s agency with responsibility for the

development and release of government owned land for residential, commercial, industrial and

community purposes. In this role it operates at the boundary of commercial and public sector

activities. It seeks to balance potentially competing priorities, and provide opportunities for

private sector development to optimise the community benefits from the act’s land assets.

In the discharge of its responsibilities, the Lda is:

• a key deliverer of government land release outcomes;

• a major supplier of raw land for development and individual serviced sites for building

activities for private sector developers, builders, households and businesses; and

• a tool for the delivery of the act community’s aspirations for high quality, sustainable

living environments.

leGISlAtIonthe Lda is a territory authority established by Section 31 of the Planning and Development Act

2007 (pda). While the Lda does not administer any enactments, it is bound by chapter 4 of the

pda.

the pda provides for planning (act planning and Land authority (actpLa) as custodian of the

territory plan: chapter 5, pda) and development (Lda as land developer in compliance with the

territory plan) in implementing a land system that contributes to the orderly and sustainable

development of the act.

the Lda governing Board was established by Section 42 of the pda and Board members are

appointed under that section. the role of the Board is to govern the Lda in accordance with the

Financial Management Act 1996 (Fma) and the pda. the Board has appointed a Board audit

committee which meets at least quarterly.

the Lda must also comply with any directions given to it by the minister under Section 37 of the

pda and is staffed under the Public Sector Management Act 1994 (pSma).

the chief executive officer (ceo) of the Lda holds all the powers of a ceo of a territory

instrumentality under the pSma. the ceo is a statutory office holder appointed under the Fma

and is a member of the Lda Board. the role of the ceo is to manage the Lda in accordance with

governance arrangements determined by the Lda Board.

In January 2011, the act government received the report of the Hawke Review which

recommended substantial changes to the governance arrangements for act government

operations. Interalia, the report recommended abolition of the Lda governing Board. In early


SectIon aperformance and Financial management Reporting

July 2011, the act government advised the Lda chair that it had decided to retain the Lda

governing Board, but that the government’s preference was that the roles of director-general

(dg), economic development directorate (edd) and the ceo of the Lda be combined. the Lda

Board accepted the governments’ preference and has acted to implement the new organisational

structure.

MISSIonthe Lda will contribute positively to the economic and social development of the act by building

vibrant and sustainable communities through greenfield and urban renewal projects for the

development of residential, commercial and industrial land.

VISIonthe Lda strives to be an organisation of excellence that:

• recognises it is a key instrument for the delivery of government policies,

• acts commercially,

• promotes and rewards innovation,

• is adaptable,

• behaves ethically and professionally in all that it does, and

• appropriately values its people and its customers.

VAlueS StAteMentthe Lda is committed to the core values of professionalism, honesty, integrity, innovation,

cooperation and pursues these values in all its business dealings.

oBJeCtIVeSthe key objectives of the Lda are to:

• deliver the government’s agreed Indicative Land Release programs in the residential,

commercial, industrial and community sectors;

• contribute to the delivery of the act government’s key priorities related to affordable

housing, sustainability and climate change;

• provide advice to the government on the delivery of capital works and infrastructure

supporting the land release program;

• provide a commercial return to the territory on its investment in the agency;



• continuously improve the Lda’s role as an informed source of advice to the government

and other agencies on land development related issues;

• deliver high quality urban development;

• support the continuing development of town centres;

• strengthen relationships with stakeholders, including other act government agencies,

developers, builders, industry associations and the canberra and regional community;

and

• develop the Lda’s capability and the expertise of staff to enable the delivery of the Lda’s

objectives.

StRuCtuReduring 2010-11 the Lda underwent a restructure to streamline functions following the

establishment of the department of Land and property Services (LapS – now known as edd) in

2009.

the Lda moved to a top structure containing four general managers reporting directly to

the ceo (development, urban Renewal, Finance and enabling Services and governance and

communications).

• development division – responsible for advising on and delivering the government’s

residential and industrial land release programs, providing a commercial return to the

territory, contributing to the delivery of the government’s Affordable Housing Action

Plan and positioning the Lda as a market leader through choice, innovation and mutually

beneficial stakeholder relationships.

• urban Renewal (formerly planning and design division) – responsible for commercial

land releases and positioning the Lda as a leading developer of land and communities

through innovative and sustainable designs, advising on capital works and infrastructure

supporting the land release program, advising on options for housing choices and scales

of commercial and industrial development, and advising on the continuing development

of town centres.

• governance and communications (included the former divisions of Legal and

compliance, executive and communications) – responsible for legal compliance, audit,

risk, governance, Board and executive support, communications and marketing.

• Finance and enabling Services (included former Sales division and corporate

responsibilities) – responsible for financial and accounting services under the Fma

accountability framework and project financial analysis, sales activities, information

technology and communications, assets and facilities.



oRGAnISAtIon CHARt (2010-11)

lDA DeVelopMentSIn 2010-11 the Lda engaged in activities for the release and development of land in:

ReSIDentIAl

Gungahlin

• Bonner

• crace (Joint venture)

• dunlop (including ginninderra ponds)

• Forde (Joint venture)

• Franklin

• Harrison (Flemington Road)

• Harrison Four

• Jacka

• moncrieff

Belconnen

• Lawson

• Bruce

LAND DEVELOPMENT AGENCY BOARD

CHIEF EXECUTIVE OFFICER

URBAN RENEWAL DEVELOPMENTGOVERNANCE AND COMMUNICATIONS

FINANCE AND ENABLING SERVICES



Inner City

• Barton

• canberra Brickworks - yarralumla

• Forrest

• Kingston Foreshore

• Woden green Joint venture in phillip

Molonglo

• molonglo valley (Wright and coombs)

tuggeranong

• Isabella plains

CoMMeRCIAl

• Barton

• Belconnen town centre

• city

• Forrest

• Fyshwick (including epicentre)

• gungahlin

• Harrison (Flemington Road)

• Higgins

• Holt

• new West Industry park (Hume)

• nicholls

• page

• Watson

CoMMunIty

• Isabella plains

• giralang

• mcKellar



Further information can be obtained from:

a/g chief executive officer

mr david dawes

telephone: (02) 6207 3331

a/g chief Finance officer

mr ashley tucker

telephone: (02) 6207 0129

Senior Business manager

Business Support and Freedom of Information coordinator

ms annette Wright

telephone: (02) 6207 8263

Street address:



470 northbourne avenue

dIcKSon act 2602

postal address:


gpo Box 158

canBeRRa act 2601

telephone: (02) 6205 0600

Fax: (02) 6207 5101

email: [email protected]

Website: www.lda.act.gov.au



lDA DeVelopMentS 2010-11



a2 - a4. oVerVIeW, HIGHlIGHTs anD oUTlooK

RepoRt By tHe CHAIRFor the fourth consecutive year, the Lda successfully met and exceeded the land release

targets detailed in the 2010-11 Indicative Land Release programs for residential, industrial and

commercial land. In often challenging circumstances, land releases occurred across canberra in a

range of block sizes and types to cater for diverse residential, industrial and commercial needs.

Residential land releases totalled sites for 5,048 dwellings (target 5,000), with six gungahlin

suburbs, Flemington Road and the molonglo valley suburb of Wright being the main areas of

release activity. commercial land releases comprised a total area of 168,233 square metres

(target 142,936), with industrial land releases totalling 173,466 square metres (target 110,616)

being achieved.

construction activity on behalf of the Lda and for housing construction and other works on land

sold by the Lda, was a key factor in the act remaining in the top ranks of economic performers

in inter-jurisdictional comparisons. this continuing strength of the local economy was also

reflected in the continuing demand for land in all categories of the Lda’s activities.

notwithstanding significant effort by the Lda and other act government agencies, an inventory

of serviced residential land has not yet been achieved. this has been due to market demand

continuing to exceed projections. measures being pursued by the Lda and other agencies are

expected to deliver an inventory in 2012.

unlike most of the previous decade, adverse weather conditions caused significant delays in the

construction of key trunk and suburban level infrastructure in a number of Lda developments.

these delays have impacted on the timeframes for the completion of site servicing by contractors

and asset acceptance by regulatory agencies. as a result, settlements of many individual land

sales contracts have been delayed, some from 2010-11 to 2011-12. as a consequence, land

sales revenue for the year has been below original estimates. offsetting this, as at 30 June 2011

the Lda held exchanged contracts with a total value of $476 million. about $376 million of this

record level of exchanged contracts are scheduled to settle in 2011-12.

Industry recognition reflected through awards for Lda projects and initiatives and engagement

with other government Land organisations (gLo) demonstrates that the Lda remains at

the forefront of efforts to make land development and our new suburbs amongst the most

sustainable in australia. particular highlights are the envirodevelopment certification for Wright

and coombs, the continuing accolades for the ownplace program and the Lda’s development

of Bonner winning the urban development Institute of australia’s award for affordable

development.



at this stage, Bonner best reflects the endeavours of the Lda staff and Board to meet the act

government’s challenge to the Lda and make our developments economically, socially and

environmental sustainable. Subsequent suburbs will be even better.

on 31 december 2010, John Haskins am retired as chair of the Lda Board, having been chair

since 1 July 2007. His leadership of the Board, industry knowledge and connections have been

invaluable in the turnaround in the Lda’s performance and achievements over that period.

margaret gillespie resigned as a Board member in may 2011 to take up a senior role with the

incoming chief minister. margaret also made a significant contribution to the Board’s discharge

of its responsibilities during her time as a Board member.

my thanks to my fellow Board members namely, deputy Rob tonkin, Bill Wood and Ray davis for

their outstanding contributions to the Board throughout the year, and on behalf of the Board,

I would also like to thank the Lda staff for their tremendous efforts and many achievements

throughout the year.

In January 2011 the Hawke Report on governance of the act public service (actpS) was released.

amongst many other recommendations, the report recommended that the Lda Board be

abolished. Whilst the last five months of the financial year was a period of significant uncertainty

for the Lda Board and staff, it is a credit to the professionalism and dedication of the staff and

Board members that there was no disruption to the Lda’s activities and the various land release

targets were met and exceeded. equally important, the work that has been undertaken in

this period, including in the preparation for a range of new developments in coombs, Lawson,

moncrieff, Jacka and elsewhere, will stand the Lda and act community in good stead in future

years.

In July 2011, the Lda Board was advised that the government had agreed to retain the Board,

with it being the government’s preference that the dg of the edd also be the ceo of the Lda.

Subsequently, the Lda Board has decided to give effect to the government’s preference, with the

associated changes to governance and management arrangements being implemented in the

first quarter of 2011-12.

I would like to join the act government in paying tribute to John Robertson’s superb contribution

over the last four years as ceo of the Lda. under John’s leadership the level of achievement of

the Lda has been outstanding. on behalf of the Board, I acknowledge our high professional and

personal regard and appreciation for John’s leadership, capacity, efforts and achievements as

ceo.

Ray young

chair

Lda Board



RepoRt By tHe CHIef exeCutIVe offICeRthe 2010-11 financial year was one of numerous highlights and achievements for the Lda

accompanied by some frustrations and project delays arising from the impact of adverse weather

conditions on greenfield developments and from protracted regulatory processes. For the fourth

consecutive year the Lda met and exceeded the target specified in its annual Statement of Intent

(SoI) for the release of land for residential development.

the releases of land for commercial and industrial purposes also significantly exceeded the SoI

targets. overall, the Lda experienced continuing strong demand for residential and commercial

land, with varying levels of demand for different categories of industrial land.

the increased capability of individual staff members and the organisation as a whole, which has

underpinned the agency’s performance in 2010-11, are evident through a number of factors:

• continuing increase in the volume of land releases,

• growing volume of construction and other contracts under management,

• continuing increase in the quality of the Lda’s estate and precinct planning and

associated community consultation activities, and

• growing geographic spread of the Lda’s activities across canberra.

the professionalism of the Lda staff enables the Lda to successfully address the many challenges

we face in delivering the increasing volumes of land and development opportunities required for

the economic development of canberra and provision of more sustainable and more affordable

housing.

ReSIDentIAl lAnD ReleASeS

Land releases for residential development continued to be the major focus for the Lda. as noted

above, for the fourth consecutive year, total residential land releases exceeded the indicative land

release target detailed in the Indicative Land Release program 2010-11 to 2013-14 and embedded

in the Lda’s 2010-11 SoI. Residential land releases in 2010-11 totalled sites for 5,048 dwellings,

compared with the SoI volume target of 5,000. this total included sites for single residential

dwellings and multi-unit developments in Lda estates and by the Lda joint ventures, englobo

releases for private sector subdivision and a range of sites in infill locations across canberra.

a significant component of the total releases achieved related to land that was not initially

included in the Indicative Land Release programs. this substitution was necessary in large part

to replace planned releases that were delayed or deferred because of protracted commonwealth

and act environmental clearances and regulatory processes managed by other agencies. a

substantial proportion of the additional releases came from existing Lda and joint venture

estates, including Wright, Flemington Road, Forde and crace. the Lda’s resilience in responding

to continuing market demand and bringing this other land to the market is testament to the

Lda’s forward planning work and its efforts with other act government agencies to reduce the

timeframes for the release of land.



In the four years since the act government made significant changes to the membership of

the Lda Board and associated changes to senior management, sites for over 17,000 dwellings

have been released. this is nearly 4,000 above the total original annual Indicative Land Release

program targets, and combined SoI targets, for the period of total releases of sites for just over

13,000 dwellings. over this period, whilst the Lda’s staffing levels have increased by about 50

per cent, the level of outputs has increased by 150 per cent.

during 2010-11, construction activities and housing starts associated with these releases

have continued to be a major contributor to the act being a leading economic performer in

inter-jurisdictional rankings and helped the act weather continuing international economic

uncertainty.

gungahlin continues to be the major area of land release activity, with significant volumes of land

being released in Bonner and on Flemington Road and through the Lda joint ventures at Forde

and crace. Releases from the new Lda estate at Harrison Four commenced during the year, with

all sites in the estate released and sold during the year. englobo releases occurred in ngunnawal

2c (475 dwellings) and casey 4 (mixed use including up to 500 dwellings), with both sites selling,

with particularly spirited bidding at the auction for the ngunnawal site. overall, almost 60 per

cent of the total 2010-11 releases of residential land related to gungahlin suburbs.

the pace of land release and development in the Lda’s gungahlin estates and its joint venture

estates has been such that by 30 June 2011, significant land release activities from Bonner,

Harrison and Forde essentially finished with only a small number of blocks remaining for release.

of these, the release of 17 serviced single residential blocks in Bonner is on hold pending

resolution of environmental issues on adjoining land.

construction activities are well underway in those suburbs and are anticipated to be completed

within the next twelve months. as a result of this accelerated development, sites for over 2,200

dwellings were released in Bonner in less than three years and almost all of the additional land

that was added to the Forde joint venture in June 2010 was released within a twelve month

period.

the development of Bonner continues to showcase enhanced sustainability and approaches to

housing affordability with the release of sites for 660 predominantly single residential dwellings

during 2010-11. the Bonner Living Showcase, which demonstrated a range of approaches to

more sustainable housing, operated throughout the year and provided a focus for the Mingle

community development program which was extended to Bonner in april 2011. around

1,500 people now call Bonner home, with more residents moving in every week as homes are

completed. Bonner was selected as a finalist in the property council of australia’s (pca) national

awards in the master planned community category.

the joint venture estates at crace and Forde continued to perform strongly, with both projects

releasing sites for substantially more dwellings than initially planned. In total the Forde joint

venture released sites for 300 dwellings and the crace joint venture releases totalled 338. during

2010-11, the Woden green joint venture commenced construction of the 179 units in the avoca

development and construction will be completed by mid-2012.



Sites for 306 multi-unit dwellings were released on Flemington Road, with numerous multi-unit

developments under construction. In the immediate precinct, construction of single residential

housing in Franklin is nearing completion as the suburb takes on the final form planned when

the Lda’s releases commenced just over four years ago. the Lda’s community building program

mingle has been actively enhancing community life in Franklin through a diverse range of

activities and has served as an excellent pilot for future such activities in other new suburbs.

Kingston Foreshore continues to take shape, with construction of roads and other infrastructure

commencing on the eastlake/Fyshwick side of the Kingston Harbour. contracts were also let

for the substantial landscaping and boardwalk development that will be key elements of the

Foreshore’s future character. the year also saw the release of sites for a further 426 dwellings,

including the first releases of land in the area bordering the Jerrabomberra wetlands.

during 2010-11 there was substantial progress on the construction of Stage 1 of Wright and

also significant work by others on the adjoining capital works funded activities to supply trunk

infrastructure to service Wright, coombs and other future suburbs in molonglo valley. Sites for a

further 832 dwellings were released in Wright during the year, with strong demand for the

multi-unit sites that were released. the Home Sustainability adviser activities have been very

well received by purchasers and this engagement with buyers of land in Wright is helping ensure

that the suburb will be one of canberra’s most sustainable.

a range of mixed use sites with residential components were released and sold across canberra,

with all attracting strong interest and being sold. Such releases included land in the Belconnen

town centre, Forrest, Barton and page.

Substantial work occurred in 2010-11 for the future release of residential land in Lawson,

moncrieff, Jacka, coombs and phillip, with releases in these suburbs anticipated to commence in

2011-12 and continue to be key areas of release activity over the next few years. Further land for

residential development will be released during 2011-12 in Wright, coombs, Kingston Foreshore,

crace, Woden green, amaroo, campbell and along Flemington Road.

HouSInG AffoRDABIlIty InItIAtIVeS

as at 30 June 2011, a total of 1,106 Lda blocks were involved in the Land Rent scheme, an

increase of 642 (30 June 2010 total was 464) over the year. these blocks have a total value of

$271.5 million, of which 232 blocks ($47.6 million) have settled and the remaining 874 (total

$256 million) have exchanged and are expected to settle over the next 24 months. a further

51 blocks, initially taken on Land Rent leases have been converted to standard leases. Further

take-up of land rent leases is expected in 2011-12 and beyond as additional releases occur in

Wright, coombs, moncrieff, Lawson, Jacka and other Lda estates.

during 2010-11 the Lda’s innovative ownplace program continued to build on its successes,

with many homes being completed and numerous others under construction. at 30 June 2011

a total of 454 blocks had been made available to builders on the Lda’s ownplace panel for the

construction of affordable house and land packages under the affordable housing threshold. a

total of 216 ownplace homes have been completed, with many others under construction. the



final releases of blocks for ownplace in Bonner to builders to develop housing packages occurred

during 2010-11. the remaining Bonner ownplace house and land packages will be offered to

eligible purchasers later in 2011.

In addition to the ownplace program in June 2010 being awarded the pca 2010 Innovation

and excellence award for excellence in government Leadership, the program received a

commendation at the urban development Institute of australia (udIa) awards.

the Lda’s collaboration with the commonwealth government under the Housing affordability

Fund (HaF) continued to develop, with the Lda managing commonwealth funding totalling

$13.2 million for the development of affordable housing in Bonner, crace and gungaderra in

Harrison.

during the year the Lda made further land available to community Housing canberra (cHc) in

accordance with the memorandum of understanding (mou). the joint ventures at crace and

Forde also continue to facilitate the delivery of quality affordable homes.

CoMMeRCIAl AnD InDuStRIAl lAnD ReleASeS

Industry demand was generally stronger than the previous year as confidence increased and

finance availability improved from the situation during the aftermath of the global Financial

crisis (gFc). Whilst there was an improvement, finance availability remained somewhat

constrained compared to the pre-gFc situation. the Lda responded by offering releases

in a range of sizes and locations to address the varying capacities and interests of market

participants. the act has been somewhat insulated from the more severe difficulties faced

in other jurisdictions. this has been reflected in the results of the various tender and auction

processes that show confidence in the local market remains strong, with local firms generally

outbidding interstate organisations for raw land and associated commercial development

opportunities.

In total, during 2010-11 the Lda released 168,233 square metres of land for commercial purposes,

18 per cent above the Indicative Land Release program 2010-11 to 2013-14 and SoI target of

142,936 square metres. this land was released by auction and tender processes in a range of

locations across canberra, with the largest component being the casey 4 group centre.

Industrial land releases also significantly exceeded the Land Release program target, with a total

of 173,466 square metres of land being released in Fyshwick and Hume. this total is 57 per cent

above the 2011-12 Indicative Land release program target of 110,616 square metres. the releases

included all of the blocks in the Fyshwick Section 26 estate and the first releases from the Hume

new West industrial estate.

fInAnCIAl outCoMe

during 2010-11, total land sales revenues and profits were below the levels achieved in the

previous year and the levels forecast in the 2010-11 SoI, with total revenues declining to

$218.3 million in 2010-11 compared to $318.4 million in 2009-10. profit before tax was

$52.7 million, compared to $112.6 million in 2009-10. these declines were due to delays in the



settlement timeframes for a number of land releases which originally had been forecast to settle

in 2010-11, but will now settle in 2011-12 and the deferral of other planned releases, for example

a Kingston car park site (forecast $23 million) to allow a precinct master plan to be prepared by

actpLa. delayed settlements include the first blocks sold in Wright (total $68 million) and the

ngunnawal 2c englobo release ($24 million). these and other delayed settlements arose from

two factors. Firstly, adverse weather, including significant rain events in late 2010 and early 2011,

contributed to significant delays in the construction of roads and other infrastructure in Wright,

Bonner and some other greenfields developments, thereby delaying completion of the works and

the settlement of individual sales contracts. the first settlements of blocks in Wright are now

anticipated to occur in late September 2011.

the second factor that contributed to the reduced revenues was the protracted timeframes for

obtaining key environmental clearances and related approvals to allow relevant land to be taken

to the market. this was particularly the case in relation to ngunnawal 2c, where necessary

commonwealth approvals took substantially longer than forecast by act government agencies.

consequently, whilst the necessary approvals were obtained during 2010-11 and the block

was sold at auction, the approvals were received too late in the financial year to allow the sale

to occur early enough to allow an adequate timeframe for the subsequent settlement of the

sales contract. the Lda recognises land sales revenue on a settlements basis, and whilst the

ngunnawal 2c work was done and the sale achieved in 2010-11, the revenue will be recorded in

2011-12.

In this context, as at 30 June 2011, the Lda had exchanged sales contracts totalling about

$476 million, the vast majority of which is scheduled to settle in 2011-12. this figure is over

$320 million more than the corresponding figure at 30 June 2010. this level of carry forward of

exchanged contracts demonstrates the scale of the Lda’s activities and achievements during

2010-11. a consequence is that the Lda was in a stronger position at 30 June 2011 to deliver

returns to the territory than at the end of the previous financial year.

InVentoRy leVelS

the stock of serviced industrial land that the Lda held at 30 June 2010 was sold during the year

and continuing strong demand resulted in the Lda not holding any serviced industrial land at

30 June 2011. as at 30 June 2011, the Lda had a number of sites at new West available for sale

over the counter and servicing of these sites is underway.

the Lda continues to work towards achieving an inventory of residential land, including letting

two contracts for the preparation of estate development plans for moncrieff and substantial

levels of work in other precincts. this will put the Lda in a position where, subject to market

demand, a substantial level of inventory may be achieved in 2012.

peeR ReCoGnItIon

the high quality of the Lda’s work and that of our consultants and contractors continues to

be recognised by our industry peers, with Lda projects and those of our industry partners in

programs like ownplace winning a growing number of local and national awards. the highlight



in 2010-11 was the Lda’s molonglo valley developments of Wright and coombs being awarded

envirodevelopment certification in a range of categories by the udIa. Wright and coombs are

the largest such projects in australia and the first in the act to receive the certification.

In august 2011 the Bonner project received the udIa’s award for affordable development.

the judges noted the use of the ownplace program and the government’s land rent scheme,

providing a successful combination meeting affordable housing objectives in cooperation with

local builders, as part of an integrated approach to neighbourhood development which with

other forms of housing provides a more integrated and interesting streetscape.

CoMMunIty enGAGeMent

the Lda, in conjunction with our portfolio agency, continues to enhance its capacity to

effectively consult with the act community in relation to developments in our estates and in

infill locations. the development of molonglo valley, the canberra Brickworks and environs

planning Strategy, and development in the tuggeranong, Belconnen and Woden town centres

have been the primary focus of the Lda’s community consultation activities during 2010-11.

these consultations are continuing and during 2011-12, consultations will also occur in relation to

planned land releases in campbell and other infill locations.

Lda staff are also working with officers of the edd, industry associations, professional groups

and the community councils to ensure that community comments and suggestions are received

and addressed in relation to the full range of proposed land releases on the government’s

Indicative Land Release programs.

the Lda recognises that land release and the physical construction of infrastructure for new

suburbs are only part of its responsibilities to help develop vibrant new communities. the

‘mingle” program has been successfully contributing to the social development of Franklin and

has commenced activities in Bonner. during 2012, mingle activities will commence in molonglo

valley.

through effective community engagement, the Lda will continue to offer a range of high

quality opportunities for residential, commercial and industrial development across the act, in

greenfields and infill locations and then help build engaged communities in the new precincts.

I would like to acknowledge the contribution of the Board members and staff across the Lda

to our many achievements. the work that has been done during 2010-11 and earlier years will

stand the Lda in good stead as future challenges are pursued and met on behalf of the act

government and community. In particular I would like to thank John Haskins am who retired as

chair of the Lda Board on 31 december 2010 for his support, guidance and encouragement over

the three and a half years we worked together and also thank margaret gillespie who resigned

from the Board in may 2011 for her contributions. margaret resigned to become chief of Staff to

the incoming act chief minister.

this will be my last report as ceo of the Lda. after four years in the role, my employment with

the Lda will finish on 30 September 2011. Key achievements over this period have been the

release of sites for over 17,500 dwellings, release of almost one million square metres of land



for commercial and industrial purposes, the development of ownplace and the return of almost

$900 million to the act government in the form of dividends, tax equivalents, payments for raw

land and stamp duty. none of the achievements above would have been possible without the

professionalism, ideas and dedicated contributions of staff across the Lda. It has been a privilege

to lead the Lda staff and contribute to their individual development and that of the organisation

as a whole.

John Robertson

chief executive officer



a5. ManaGeMenT DIscUssIon anD analysIs General oVerVIeW

oBJeCtIVeSthe mission of the Lda is to contribute positively to the economic and social development of the

act by building vibrant and sustainable communities through greenfields and urban renewal

projects for the development of residential, commercial and industrial land.

the Lda provides land for development directly to the market, undertakes joint ventures with the

private sector to develop land, and conducts land development within its own estates. It takes

into account the social and sustainability objectives of the act government, such as the need for

affordable housing, more sustainable development and housing for the aged. In addition to its

social objectives, the Lda also seeks to improve urban design outcomes by working with leading

urban designers, builders and the industry as a whole.

puBlIC tRADInG enteRpRISe the Lda is a public trading enterprise (pte). as a pte, the Lda acquires unleased territory land

from the act government at market value for development and sale. the Lda is also subject to

income tax under the national tax equivalent Regime (nteR). under these pte arrangements,

the Lda provides financial returns to the territory consisting of:

• land acquisitions at market value,

• stamp duty and Interest,

• payment of income tax equivalents, and

• dividends based on operating profit after Income tax equivalents.

table 1 compares the total returns to the territory in 2010-11 with the 2010-11 budgeted return

and the actual return in 2009-10. these results are based on the accrual basis of accounting.



table 1: comparison of Returns to the territory

Actual 2011 Budget 2011 Actual 2010

dividends paid $37m $54m $77m

Income tax equivalents $16m $23m $35m

payments for land acquisitions $77m $169m $113m

Stamp duty and Interest on Borrowing - $4m -

total Returns to the territory $130m $250m $225m

total returns to the territory are lower than the previous year due primarily to a decrease in

land sales due to adverse weather conditions impacting on construction activities and hence

settlement timeframes of sales contracts. detailed variances between the 2010-11 result, the

2009-10 result and the 2010-11 Budget are provided in this section of the annual Report.

RISk MAnAGeMentthe residential land sales market and the commercial/industrial markets are highly cyclical

and when market conditions change the land sales program and profit will be impacted.

consequently, this may adversely impact on the Lda’s ability to deliver forecast returns to the

act government if market conditions deteriorate. It could also lead to higher than forecast

returns if market conditions are more robust than forecast. Specific risks include market,

regulatory and industry capacity and performance risks as detailed below.

MARket RISkS

• volatility in market demand for commercial and industrial land as a result of the

economic environment.

• Whether the government’s Indicative Land Release program can be absorbed by the

market and whether the sales revenue targets that derive from that program can be

achieved.

• ability for the Lda to attract, recruit and retain skilled staff in the face of increased

private sector competition for scarce resources.

• possible increases in land servicing and building construction costs.

ReGulAtoRy RISkS

• the availability of an adequate supply of appropriately zoned residential, commercial and

industrial land together with concept plans and timely approvals to enable development

activity to take place within planned timeframe.



• unforseen delays in approvals from relevant agencies that would result in delays in the

planned release program and changes to the timeframes for revenue flows.

• any future changes in commonwealth legislation or other regulatory requirements

that may add uncertainty or increase costs for the Lda’s activities or for those of private

developers, resulting in slower delivery timeframes or increased risk discounts in the

prices that the private sector is willing to pay for development opportunities.

InDuStRy CApACIty AnD peRfoRMAnCe RISkS

• Increases in cost or contract performance and extension of time (e.g. from sustained wet

weather) impacting on development schedules and financial performance of projects,

resulting in lower forecast returns to the government.

• delays in the planning and timely delivery by other agencies of necessary budget funded

capital Works infrastructure in order to support residential, commercial and industrial

development.

• the adequacy or otherwise of industry capacity and skills availability to provide necessary

services to deliver land servicing and broader capital works activities.

the key strategies the Lda employs to achieve its objectives and effectively manage business and

financial risks include:

• engaging with other act government departments and agencies in the timely

development and review of the Indicative Land Release program and related revenue

estimates;

• identifying the sensitivity of forecasts to potential changes in the market for residential,

commercial and industrial land;

• working with other agencies towards developing an inventory of environmentally cleared,

planned, release ready and serviced land to provide flexibility and alternative release

options to cover any unanticipated delays on sites otherwise identified for release in the

relevant period;

• effectively engaging with local communities, industry associations, relevant special

interest groups and the broader act community to ensure relevant interests are

identified and considered in the Lda’s developments and land release activities;

• use of appropriate contract types and mechanisms and active management of the full

range of contractors and consultants providing services to the Lda;

• considering market trends to gauge likely sales rates prior to committing to construction

contracts;

• incorporating contingencies to limit the scale of construction packages if there is a

downturn in the market and land sales rates;

• maintaining a detailed understanding of relevant regulatory requirements and

monitoring approval processes and liaising with relevant agencies to manage any issues

that could otherwise delay projects;



• maintaining close liaison with regulatory agencies to ensure that any potentially adverse

impacts on the Lda and other development activities are understood and appropriately

considered ahead of any regulatory changes being implemented;

• ensuring sustainability and innovation issues are incorporated in planning and design

by developing a work plan that will address energy, water, sustainable resource use and

waste management, biodiversity protection, transport, social and cultural aspects of

communities, economic viability and sustainability;

• in consultation with the portfolio department, contributing to the development and

enhancement of streamlined planning and approval processes;

• streamlining and enhancing procurement processes and contributing to the coordination

of government civil works contracts to ensure the best value for money and more

efficient procurement outcomes; and

• building an effective involvement with the private sector to capture market knowledge

and encourage innovation and the transfer of skills.

fInAnCIAl peRfoRMAnCe the following financial information is based on the 2010-11 Financial Statements certified by the

Lda Board, audited Financial Statements for 2009-10 and the forward estimates contained in the

2011-12 Budget papers.

totAl InCoMe

Components of Income

as shown in Figure 1, the Lda derived 94.1 per cent of its total income for the year ended

30 June 2011 from Land Sales, 3.5 per cent from Interest and 2.4 per cent from other Income.



Figure 1: components of Income 2010-11

Comparison to Budget

actual income of $218.6 million was $150.7 million lower than budget. actual land sales revenue

of $205.8 million was $162.8 million lower than budget due primarily to a decrease in englobo

land sales, commercial land sales, sales in Lda estates and infrastructure delivered by third

parties. the decrease in englobo sales was due to a delay in the release of the ngunnawal 2c

site ($24 million) caused by a significant delay in the receipt of environmental protection and

Biodiversity conservation (epBc) approval. the decrease in commercial land was primarily due to

the release of a number of large sites being deferred until 2011-12. the decrease in sales of land

in Lda estates was primarily due to anticipated sales in Wright ($68 million) being delayed due to

the impact of adverse weather. the decrease in infrastructure sales delivered by third parties was

due to varied contractual obligations negotiated by the Lda with purchasers of land at the point

of sale. the number of contracts settled that required infrastructure to be delivered by third

parties increased however, the cumulative scope of works required decreased in value.

Comparison to 2009-10 Actual

actual income of $218.3 million was $100.1 million lower than the 2009-10 actual result. actual

land sales revenue of $205.8 million was $103.6 million lower than the figure achieved in 2009-10

due to:

• a decrease in englobo sales due to a delay in the release of the ngunnawal 2c site

($24 million) caused by a significant delay in the receipt of epBc approval;

• a decrease in sales of land in Lda estates primarily due to anticipated sales in Wright

($68 million) being delayed due to the impact of adverse weather;

Land Sales94.1%

Interest3.5%

Other Income2.4%



• a decrease in infrastructure sales delivered by third parties due to varied contractual

obligations negotiated by the Lda with purchasers of land at the point of sale. the

number of contracts settled that required infrastructure to be delivered by third parties

increased however, the cumulative scope of works required decreased in value; and

• there were no sales of development rights to Joint ventures during 2010-11.

future trend - Income

Figure 2 shows the actual total Income (inclusive of net investments in joint ventures), total

expenses and operating profit before tax for 2009-10, 2010-11, the budget for 2010-11 and the

forward estimates for the upcoming four years. the future trend in total Revenue reflects the

government’s currently published land release program which continues to accelerate in 2011-12

(5,500 dwellings) and stabilise in future years (2012-13: 5,000 dwellings; 2013-14: 4,000 dwellings;

2014-15: 4,000 dwellings).

Figure 2: Future trends

totAl expenDItuRe

Components of expenditure

total expenses for the year ended 30 June 2011 (as shown in Figure 3) were predominantly for

cost of Land Sold, which was 82.4 per cent of the total. the two components of cost of Land

Sold are land acquisitions (40.9 per cent) and development costs (41.5 per cent). the balance of

total expenses was for Supplies and Services (8.4 per cent), employee expenses (6.2 per cent) and

other expenses (3.0 per cent).

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

2009-10 Actual

2010-11 Budget

2010-11 Actual

2011-12 Budget

2012-13 Budget

2013-14 Budget

2014-15 Budget

Total Revenue Total Expenses Operating Profit before Tax

Estimate Estimate Estimate

800700600500400300200100

0

$m



Figure 3: components of expenditure 2010-11


actual expenses of $187.5 million were $118.0 million lower than the budget. this reflected the

following variances:

• cost of Land Sold was $116.3 million lower than budget primarily due to lower land sales

of $162.8 million as detailed above. the estimated cost of inventories sold are expensed

in the Statement of comprehensive Income at the point the developed land is sold; and

• other expenses were $1.1 million lower than budget mainly due to a decrease in stamp

duty payments compared to budget.

Comparison to 2009-10 Actual

total expenditure was $37.5 million lower than 2009-10. the decrease largely reflects the

decrease in cost of Land Sold which is directly related to decreased land sales of $103.6 million

as detailed above. the estimated cost of inventories sold are expensed in the Statement of

comprehensive Income at the point the developed land is sold.

future trends - expenses

as shown in Figure 2, total expenses are budgeted to vary in line with the government’s land

release program (detailed above at Future trends - Income) which directly impacts both the level

of construction activity and subsequent land sales.

DIVIDenDS

actual dividends paid and provided for during the 2010-11 year were $36.9 million compared to

Cost of Land Sold -land acquisitions

40.9%

Cost of Land Sold -development costs

41.5%

Employee Expenses6.2%

Supplies and Services8.4%

Other Expenses3%



the budgeted amount of $53.7 million, a decrease of $16.8 million as a consequence of the lower

than expected profit resulting from lower than budgeted land sales.

fInAnCIAl poSItIonKey indicators of the health of the Lda’s financial position are the ability to sustain its asset base,

to pay debts as they fall due and maintain long-term liabilities at prudent levels.

totAl ASSetS

Components of total Assets

In 2010-11 the Lda maintained a strong net asset position due to its significant cash,

investments, receivables and inventory holdings in comparison with its liabilities.

total assets as at 30 June 2011 (as shown in Figure 4) comprise current and non-current Inventory

(37 per cent), Investments in the territory Banking account (tBa) (28 per cent), Receivables

(17 per cent), Investments in Joint ventures (11 per cent), cash and cash equivalents Balances

(5 per cent), and property, plant and equipment (2 per cent).

Figure 4: components of total assets 2010-11


the Lda’s total asset position as at 30 June 2011 of $306.8 million was $43.1 million lower than

budget. the decrease is largely due to:

Cash and Cash Equivalents5%

Receivables17%

Investment is TBA28%

Investments in Joint Venture

11%

Property, Plant & Equipment

2%

Inventories37%



• a decrease in inventories ($114.0 million) mainly due to lower than budgeted

development expenditure spending due to the impact of adverse weather;

• a decrease in Investments in Joint ventures ($25.2 million) due to a change in accounting

treatment (aaSB 131.48) which decreased the carrying value of the Lda’s investments

together with higher than budgeted distributions received from the Joint ventures’s

throughout 2010-11; and

• a decrease in cash and cash equivalents ($10.3 million) due to an increase in the purchase

of investments with the tBa.

partially offset by increases in:

• Investments in tBa ($84.8 million) primarily due to an increase in the number of units

purchased in the cash enhanced Fund administered by the tBa. the increase in units

purchased was directly related to an increase in cash held throughout the year due to

lower than budgeted development expenditure due to the impact of adverse weather

offset by reduced income from land sales; and

• Receivables ($22.1 million) due to an increase in the value of infrastructure assets to

be received from the purchasers of land and a higher than budgeted receivable from

treasury for land rent blocks settled but not paid by treasury as at 30 June 2011.

liquidity

Liquidity refers to the ability of the Lda to satisfy its short-term debts as they fall due. this ability

is demonstrated by the Lda’s ‘current ratio’ (set out in table 2), which compares the ability to

fund short-term liabilities from short-term assets. the ratio shows that the Lda is in a healthy

liquidity position (1.89 to 1) at 30 June 2011.

table 2: current assets to current Liabilities

prior year

Actual 2009-10

Current year

Budget 2010-11

Current year

Actual 2010-11

forward year

Budget 2011-12

forward year

Budget 2012-13

forward year

Budget 2013-14

forward year

Budget 2014-15

$’000 $’000 $’000 $’000 $’000 $’000 $’000

total current assets

280,504 277,728 241,137 378,435 354,923 403,345 413,697

total current Liabili-ties

188,487 149,145 127,484 228,031 203,203 250,556 268,282

Current Ratio

1.49:1 1.86:1 1.89:1 1.66:1 1.75:1 1.61:1 1.54:1



totAl lIABIlItIeS

Figure 5 illustrates the Lda’s total Liabilities comprising provision for project completions

(29 per cent), Liability to transfer Infrastructure (23 per cent), other Liabilities (22 per cent)

payables (13 per cent), Income tax Liability (11 per cent), and employee Benefits (2 per cent).

Figure 5: components of total Liabilities 2010-11

the provision for project completions reflects expected costs required to finish developed parcels

of land; the Liability to transfer Infrastructure reflects the value of infrastructure assets that

are to be transferred to the relevant act government agency when construction is completed;

other Liabilities reflect revenue received in advance for blocks exchanged, the Lda’s deferred

Income tax Liability, the balance of the dividend to be paid to the act government and the value

of developed land ready for sale but yet to be sold; payables reflect the value of land accrued for

sold blocks together with accrued development costs and administration expenses; and Income

tax Liability reflects the balance of income tax payable to the act government.


the Lda’s total liability position as at 30 June 2011 of $180.3 million was $43.6 million lower than

budget mainly due to decreases in:

• borrowings ($40.0 million) because no borrowings were required during 2010-11;

• payables ($34.8 million) mainly due to a lower than budgeted accrual for land sold in June

2011; and

• income tax liability ($4.4 million) due to a lower than budgeted operating surplus.

Payables13%

Provision for Project

Completions 29%

Liability to Transfer Infrastructure

23%

Other Liabilities22%

Income tax liability11%

Employee Benefits2%Tax liability



partially offset by increases in:

• other provisions ($6.8 million) mainly due to an increased liability to transfer

infrastructure reflecting an increase in the value of infrastructure assets to be transferred

to other government entities; and

• other liabilities ($26.7 million) due to an increased balance of dividend payable to the

act government at 30 June 2011, increased deposit holdings for blocks exchanged but

not yet settled and an increase in the value of developed land ready for sale but yet to be

sold.



a6. fInancIal rePorT



OriginalActual Budget Actual

Note 2011 2011 2010No. $’000 $’000 $’000

Income

Revenue

Land Sales 5 205,760 368,562 309,402 User Charges - ACT Government 6 - - 58 User Charges - Non-ACT Government 7 137 110 139 Interest 8 7,565 610 4,444 Resources Received Free of Charge 9 944 - 453 Other Revenue 10 3,889 60 3,872

Total Revenue 218,295 369,342 318,368

Gains

Gains on Investments 11 324 - -

Total Gains 324 - -

Total Income 218,619 369,342 318,368

ExpensesEmployee Expenses 12 10,226 11,614 10,494 Superannuation Expenses 13 1,316 1,431 1,380 Supplies and Services 14 15,730 16,284 14,560 Depreciation 15 447 742 463 Grants and Purchased Services 16 3,200 - -Cost of Land Sold 17 154,699 270,991 197,526 Interest Expense 18 9 1,473 16 Other Expenses 19 1,919 2,998 615

Total Expenses 187,546 305,533 225,054

Share of Operating Profit from Joint Ventures accounted for using the Equity Method 40 21,601 12,869 19,259

Operating Surplus before Income Tax Equivalents 52,674 76,678 112,573

Income Tax Equivalents 22 15,808 23,003 35,144 Operating Surplus 36,866 53,675 77,429

Other Comprehensive Income

Increase in Asset Revaluation Surplus 36 437 - -

Total Other Comprehensive Income 437 - -

Total Comprehensive Income 37,303 53,675 77,429

The above Statement of Comprehensive Income should be read in conjunction with the accompanying notes.

Land Development AgencyStatement of Comprehensive Income

For the Year Ended 30 June 2011




Note 2011 2011 2010No. $’000 $’000 $’000

Current Assets

Cash and Cash Equivalents 23 16,047 26,370 10,680 Receivables 24 38,666 27,173 111,650 Investments at Fair Value Through Profit or Loss 25 84,841 - 75,517 Inventories 26 79,187 194,926 69,407 Investments - Joint Ventures 40 21,844 29,259 13,012 Capital Works in Progress 28 552 - 238

Total Current Assets 241,137 277,728 280,504

Non-Current Assets

Receivables 24 14,042 3,376 12,255 Inventories 26 35,034 33,346 28,143 Property, Plant and Equipment 27 5,715 6,785 6,437 Investments - Joint Ventures 40 10,889 28,686 18,849

Total Non-Current Assets 65,680 72,193 65,684

Total Assets 306,817 349,921 346,188

Current Liabilities

Payables 29 24,218 59,065 45,830 Finance Leases 30 83 98 32Employee Benefits 31 3,058 2,267 2,469 Other Provisions 32 59,186 69,080 54,294 Income Tax Payable/(Refundable) 33 1,313 5,751 23,012 Other Liabilities 34 39,626 12,884 62,850

Total Current Liabilities 127,484 149,145 188,487

Non-Current Liabilities

Interest-Bearing Liabilities 30 - 40,000 -Finance Leases 30 22 64 96Employee Benefits and On-Costs 31 229 154 300Other Provisions 32 33,405 16,722 25,548 Deferred Tax Liability 35 19,175 17,822 5,692

Total Non-Current Liabilities 52,831 74,762 31,636

Total Liabilities 180,315 223,907 220,123

Net Assets 126,502 126,014 126,065

Equity

Contributed Equity (a) 77,634 77,634 77,634 Retained Profits (a) 36 45,267 45,216 45,267 Asset Revaluation Surplus 36 3,601 3,164 3,164

Total Equity 126,502 126,014 126,065

The above Statement of Financial Position should be read in conjunction with the accompanying notes.

Land Development AgencyStatement of Financial Position

As at 30 June 2011

(a) The original budget included an amount of $122,850 as Accumulated Funds. This amount has been reclassified into Contributed Equity and Retained Profits to provide a clearer comparison to the actual results presented above.



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Note 2011 2011 2010No. $’000 $’000 $’000

Cash Flows from Operating Activities

Receipts

Land Sales 240,483 409,831 261,159 User Charges - ACT Government - - 58User Charges - Non-ACT Government 137 122 139Interest Received 7,080 610 5,181 Goods and Services Tax(GST) Collected from Customers and GST Input Tax Credits from the Australian Taxation Office 29,917 13,013 29,330 Other 4,721 72 4,310

Total Receipts from Operating Activities 282,338 423,648 300,177

Payments

Employee 9,721 11,614 10,110 Superannuation 1,308 1,431 1,376 Supplies and Services 19,184 17,674 11,837 Development Costs 86,039 214,440 49,351 Land Acquisitions 94,226 187,889 103,194 Borrowing Costs 8 1,467 7Goods and Services Tax Paid to Suppliers and Remitted to the Australian Taxation Office 32,938 32,924 26,506 Income Tax Equivalents 24,024 23,318 (3,377)Other 1,651 2,998 174

Total Payments from Operating Activities 269,099 493,755 199,178 Net Cash Inflows/(Outflows) from Operating Activities 41 13,239 (70,107) 100,999

Cash Flows from Investing Activities

Receipts

Proceeds from Sale of Property, Plant and Equipment 6 - 16Cash Distributions from Joint Ventures 20,216 32,050 16,500

Total Receipts from Investing Activities 20,222 32,050 16,516

Payments

Purchase of Property, Plant and Equipment - 550 66Purchase of Investment in Territory Bank Account 9,000 - 75,500

Total Payments from Investing Activities 9,000 550 75,566

Net Cash Inflows/(Outflows) from Investing Activities 11,222 31,500 (59,050)

Land Development AgencyCash Flow Statement





Note 2011 2011 2010No. $’000 $’000 $’000

Cash Flows from Financing Activities

Receipts

Refund of Previously Overpaid Dividends 42,891 - -Borrowings Received - 40,000 -

Total Receipts from Financing Activities 42,891 40,000 -

Payments

Repayment of Finance Leases 59 - 63Dividends Paid 61,926 53,674 60,593

Total Payments from Financing Activities 61,985 53,674 60,656 Net Cash (Outflows) from Financing Activities (19,094) (13,674) (60,656)

Net Increase/(Decrease) in Cash and Cash Equivalents Held 5,367 (52,281) (18,707)

Cash and Cash Equivalents at the Beginning of the Reporting Period 10,680 78,651 29,386 Cash and Cash Equivalents at the End of the Reporting Period 41 16,047 26,370 10,679

The above Cash Flow Statement should be read in conjunction with the accompanying notes.

Cash Flow Statement - ContinuedFor the Year Ended 30 June 2011

Land Development Agency



Note 1 Objectives of the Land Development AgencyNote 2 Summary of Significant Accounting PoliciesNote 3 Change in Accounting EstimatesNote 4 Significant Accounting Judgements and Estimates

Income NotesNote 5 Land SalesNote 6 User Charges - ACT GovernmentNote 7 User Charges - Non-ACT GovernmentNote 8 InterestNote 9 Resources Received Free of ChargeNote 10 Other RevenueNote 11 Gains on Investments

Expense NotesNote 12 Employee ExpensesNote 13 Superannuation ExpensesNote 14 Supplies and ServicesNote 15 Depreciation Note 16 Grants and Purchased ServicesNote 17 Cost of Land SoldNote 18 Interest ExpenseNote 19 Other ExpensesNote 20 Waivers, Impairment Losses and Write-offsNote 21 Auditor's RemunerationNote 22 Income Tax Equivalents

Asset NotesNote 23 Cash and Cash EquivalentsNote 24 ReceivablesNote 25 Investments at Fair Value Through Profit or LossNote 26 InventoriesNote 27 Property, Plant and EquipmentNote 28 Capital Works in Progress

Liability NotesNote 29 PayablesNote 30 Interest-Bearing LiabilitiesNote 31 Employee Benefits Note 32 Other ProvisionsNote 33 Income Tax Payable/(Refundable)Note 34 Other LiabilitiesNote 35 Deferred Tax Liability

Equity NoteNote 36 Equity

Other NotesNote 37 Financial InstrumentsNote 38 CommitmentsNote 39 Contingent Liabilities and Contingent AssetsNote 40 Interest in Jointly Controlled EntitiesNote 41 Cash Flow ReconciliationNote 42 Events Occurring after Balance DateNote 43 Related Party Disclosures

LAND DEVELOPMENT AGENCYNOTE INDEX



Land Development AgencyNotes to and Forming Part of the Financial Statements


NOTE 1 OBJECTIVES OF THE LAND DEVELOPMENT AGENCY

(a) Operations and Principal Activities

Following the recent administrative arrangements (Notifiable instrument NI2011-244) which commenced on17 May 2011, LDA is now part of the Economic Development Portfolio. However, LDA remains a separate reportingentity for the purpose of the Financial Management Act 1996.

(b) Public Trading Enterprise

LDA is a Public Trading Enterprise. Accordingly, unleased land is acquired from the Territory on a commercial basisand at relevant market valuations.

LDA is subject to income tax under the National Taxation Equivalent Regime.

The overall annual returns, either directly or indirectly, to the ACT Government from LDA's activities consist of:

- land acquisitions at market value;

- the payment of income tax equivalents; and

- the payment of dividends based on operating profit after tax.

Following acquisition of unleased Territory land, LDA will carry out development and sale of the land in order toachieve a commercial return on behalf of the ACT Government.

The Land Development Agency (LDA) operates under the Planning and Development Act 2007 and was created bythe Act Government to maintain stability in the supply of land, to deliver high quality urban development and to realisea better return on the Territory's land holdings.

LDA's objective is to contribute positively to the building of thriving and vibrant communities by facilitating highquality design and built-form outcomes in its urban renewal projects and the development of residential, commercialand industrial land. It provides land for development directly to the market, undertakes joint ventures with the privatesector to develop land, and conducts land development within its own estates. It takes into account the socialobjectives of the ACT Government, such as the need for affordable housing and housing for the aged. In addition toits social objectives, LDA also seeks to improve urban design outcomes by working with leading urban designers,builders and the industry as a whole.

LDA applies due commercial rigour in the undertaking of its operations, with the objective of delivering a return to theTerritory commensurate with relevant industry benchmarks. For the purposes of presentation of the FinancialStatements, LDA is treated as a 'for profit' entity.



NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a) Basis of Accounting

(i) a Statement of Comprehensive Income for the year; (ii) a Statement of Financial Position at the end of the year;(iii) a Statement of Changes in Equity for the year;(iv) a Cash Flow Statement for the year;(v) a summary of the significant accounting policies adopted for the year; and(vi) such other statements as are necessary to fairly reflect the financial operations of LDA during the year and its financial position at the end of the year.

(i) Australian Accounting Standards; (ii) International Financial Reporting Standards; and(iii) ACT Accounting Policies.

These financial statements are presented in Australian dollars, which is LDA's functional currency.

LDA is an individual reporting entity.

(b) The Reporting Period

The financial statements have been prepared using the accrual basis of accounting, which recognises the effects oftransactions and events when they occur. The financial statements have also been prepared according to the historicalcost convention, except for assets which were valued in accordance with the valuation policies applicable to LDAduring the reporting period.

These financial statements state the financial performance, changes in equity and cash flows of LDA for the year ended30 June 2011 together with the financial position of LDA as at 30 June 2011.

These general-purpose financial statements have been prepared in accordance with 'Generally Accepted AccountingPrinciples' (GAAP) as required by the Financial Management Act 1996 . The financial statements have been preparedin accordance with:



The Financial Management Act 1996 requires the preparation of annual financial statements for Territory authorities.The Financial Management Act 1996 and the Financial Management Guidelines issued under the Act, requiresLDA's financial statements to include:



NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED

(c) Comparative Figures

Budget Figures

Prior Year Comparatives

(d) Rounding

(e) Revenue Recognition

Land Sales

Revenue from the provision of development rights to a joint venture is recognised in accordance with thesubstance of the transaction. When a legally enforceable agreement to contribute undeveloped parcels of land tothe joint venture entity for development exists, LDA recognise the gains attributable to the interest of:

(a) other ventures on the provision of development rights to the joint venture; and

(b) progressively as the land is sold to third party by the joint venture.

Sales under the Land Rent Scheme are recognised on settlement at which point LDA forward an invoice toTreasury in order to receive payment for the land.



The Financial Management Act 1996 requires the financial statements to facilitate a comparison with LDA'sStatement of Intent. Budget information provided for 2010-11 is the budget information in LDA's 2010-11Statement of Intent.

Proceeds from land sales may comprise both cash related transactions and the value of infrastructure required to beprovided by the purchaser as part of the Deed of Agreement associated with the sale of land. The Right to ReceiveInfrastructure from the purchaser is recognised as revenue and a receivable at the time of settlement.

Comparative information has been disclosed in respect of the previous period for all amounts reported in thefinancial statements, except where an Australian Accounting Standard does not require comparative information tobe disclosed.

Where the presentation or classification of items in the financial statements is amended, the comparative amountshave been reclassified where practical. Where a reclassification has occurred, the nature, amount and reason for thereclassification is provided.

All amounts in the financial statements have been rounded to the nearest thousand dollars ($'000). Use of "-"represents amounts equal to or rounded down to zero.

Land sales revenue is recognised when the significant risks and rewards of the sale of land are transferred to thepurchaser. Whilst the point of recognition for one sale may differ from another depending on the individual terms ofeach contract of sale, in the majority of cases sales completed via auction, direct grant, ballot or over the counter willbe recognised on settlement.

Should sale proceeds be received by instalments over more than 12 months, the initial amount to be recorded asrevenue is the fair value of the consideration calculated by discounting the contracted value (nominal value) using aprevailing rate for a similar instrument of an issuer with a similar credit rating to the LDA. The difference whicharises between the fair value of the consideration to be received over the deferral period and the contracted (nominal)value of the land is recognised as interest income over the deferral period.




(e) Revenue Recognition - Continued

User Charges

User charges are revenue directly related to the sale of goods or provision of services. They are generated by consumerdemand and are non-regulatory in nature. User charges revenue is recognised when the goods are provided or when thefee in respect of services provided is receivable. User charge revenue is not part of government appropriation.

The majority of user charges relate to rental income derived from sites located in Kingston, Gungahlin and Civic.

Interest Income

Interest income is recognised as it accrues using the effective interest method.

(f) Repairs and Maintenance

(g) Waivers of Debt

(h) Taxation

Deferred income tax assets are recognised to the extent that it is probable that future tax profits will be available againstwhich deductible temporary differences can be utilised. Deferred tax assets are reviewed at each reporting date and arereduced to the extent that it is no longer probable that the related tax benefit will be realised.

Debts that are waived under Section 131 of the Financial Management Act 1996 are expensed during the year in whichthe right to payment was waived. Further details of waivers are disclosed at Note 19 'Waivers, Impairment Losses andWrite-offs’.

LDA is registered with the National Tax Equivalent Regime, and is required to calculate income tax in accordance withthe Income Tax Assessment Act 1997 and to account for the resulting amounts under the requirements of AASB 112‘Income Taxes’.



LDA undertakes cyclical maintenance as required on its buildings and plant and equipment. Where the maintenanceleads to an upgrade of the assets, and increases the service potential of the existing buildings or plant and equipment, thecost is capitalised. Maintenance expenses which do not increase the service potential of the asset are expensed.

Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is realised or theliability settled. Deferred tax is credited in the Statement of Comprehensive Income except where it relates to items thatmay be credited directly to equity, in which case the deferred tax is adjusted directly against equity.

Deferred tax is accounted for using the balance sheet liability method in respect of temporary differences arisingbetween the tax bases of assets and liabilities and their carrying amounts in the financial statements. No deferred incometax will be recognised from the initial recognition of an asset or liability, excluding a business combination, where thereis no effect on accounting or taxable surplus or deficit.

The charge for the current income tax equivalent expense is based on the surplus/(deficit) for the year adjusted for anynon-assessable or non-deductible items. It is calculated using the tax rates that have been enacted or are substantiallyenacted by the balance date.






(h) Taxation - Continued

LDA also pays Goods and Services Tax, Fringe Benefits Tax and Payroll Tax.

(i) Current and Non-Current Items

Assets and liabilities are classified as current or non-current in the Statement of Financial Position and in the relevantnotes. Assets are classified as current where they are expected to be realised within 12 months after the reporting date.Liabilities are classified as current when they are due to be settled within 12 months after the reporting date or LDAdoes not have an unconditional right to defer settlement of the liability for at least 12 months after the reporting date.

Assets or liabilities which do not fall within the current classification are classified as non-current.

(j) Impairment of Assets

Impairment of receivables is discussed at 2 (m).

(k) Cash and Cash Equivalents

(l) Investments at Fair Value Through Profit or Loss

LDA holds units within the Cash Enhanced Fund administered by the Territory Banking Account which invests onbehalf of LDA. These units are subject to price risk and unrealised gains or losses at balance date.

Fair value of these investments is based on unit prices provided by Territory Banking Account. Movements in the fairvalue of these investments are recorded in the Statement of Comprehensive Income.

LDA assesses, at each reporting date, whether there is any indication that an asset may be impaired. Assets are alsoreviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not berecoverable.

Any resulting impairment losses, for land and buildings, are recognised as a decrease in the available AssetRevaluation Surplus relating to these assets. Where the impairment loss is greater than the available balance in theAsset Revaluation Surplus for the asset, the difference is expensed in the Statement of Comprehensive Income.Impairment losses for plant and equipment and leasehold improvements are recognised in the Statement ofComprehensive Income. Also, in all cases the carrying amount of the asset is reduced to its recoverable amount.

LDA participates in the margin scheme which allows the sellers of real property to pay GST equal to one-eleventh ofthe 'margin' rather than one-eleventh of the sale price. The 'margin' is generally the difference between the sale priceand a valuation of the property as at 1 July 2000.

For the purposes of the Cash Flow Statement and the Statement of Financial Position, cash includes cash at bank andcash on hand. Cash equivalents are short-term, highly liquid investments that are readily convertible to knownamounts of cash and are not subject to price risk. Bank overdrafts are included in cash and cash equivalents in theCash Flow Statement but not in the cash and cash equivalents line on the Statement of Financial Position.




(m) Receivables

Right to Receive Infrastructure

Trade Receivables

Deferred Payment Receivables

Accrued Revenue

Goods and Services Tax Refunds Due



Receivables include the Right to Receive Infrastructure, Trade Receivables, Accrued Revenue and Goods andServices Tax refunds due.

The sale of land by LDA can involve the receipt of cash as well as the value of infrastructure assets (such as roads,services and landscaping) required to be constructed by the purchaser as part of the sale conditions. Upon itscompletion and handover to LDA by the purchaser, the infrastructure works are transferred to Territory andMunicipal Services(TAMS) and ACTEW Corporation (ACTEW). At contract settlement, LDA recognises the valueof the infrastructure to be developed as a receivable.

The collectability of receivables is reviewed on an on-going basis. Receivables which are known to be uncollectableare written-off.

Accrued Revenue is recognised for goods and services provided to other agencies and the public prior to the end ofthe financial year and for which an invoice had not been raised.

Goods and Services Tax refunds due reflects the amounts of Goods and Services Tax input credits claimed oravailable to be claimed from the Australian Taxation Office, net of any Goods and Services Tax collected but notremitted to the Australian Taxation Office.

Trade Receivables arise in the normal course of providing goods and services to other agencies and the public. TradeReceivables are payable within 30 days after the issue of an invoice or after the goods/services have been providedunder a contractual arrangement and in accordance with the terms and conditions of that contract.

Should sale proceeds be received by instalments over more than 12 months, the initial amount to be recorded as areceivable is the fair value calculated by discounting the future instalments using a prevailing rate for a similarinstrument of an issuer with a similar credit rating to the LDA. The deferred payment receivable is increased by theamount recognised as interest revenue during the reporting period so that the carrying amount of the receivable at theend of the discount period equals the final cash payment to be received. Refer Note 2(e).




(m) Receivables - Continued

Impairment of Receivables

(a) becoming aware of financial difficulties of debtors; (b) default payments; or (c) debts being more than 90 days overdue.

(n) Property, Plant and Equipment

Acquisition and Recognition of Property, Plant and Equipment

Measurement of Property, Plant and Equipment After Initial Recognition

Fair value is the amount for which an asset could be exchanged between knowledgeable willing parties in an arm'slength transaction. Fair value is measured using market based evidence available for that asset (or a similar asset), asthis is the best evidence of an asset’s fair value. Where the market price for an asset cannot be obtained, because theasset is specialised and is rarely sold, depreciated replacement cost is used as fair value.



Any allowance for impairment of receivables represents the amount of trade and other receivables the LDA estimateswill not be repaid. The allowance for impairment losses is based on objective evidence and a review of overduebalances. LDA considers the following is objective evidence of impairment:

The amount of any allowance for impairment losses is the difference between the asset’s carrying amount and thepresent value of the estimated future cash flows, discounted at the current effective interest rate. Cash flows relatingto short-term receivables are not discounted if the effect of discounting is immaterial. The amount of the allowance isrecognised in the Statement of Comprehensive Income. The allowance for impairment losses is written back againstthe receivables account when LDA ceases action to collect the debt as it considers that it will cost more to recover thedebt than the debt is worth. Receivables that have been renegotiated because they are past due or impaired areaccounted for based on the renegotiated terms.

Property, Plant and Equipment are initially recorded at cost. Cost includes the purchase price, directly attributablecosts and the estimated cost of dismantling and removing the item (where, upon acquisition, there is a presentobligation to remove the item). Where Property, Plant and Equipment is acquired at no cost, or minimal cost, cost isits fair value as at the date of acquisition. LDA capitalises all non-current physical assets with a value of $5,000 ormore.

Land and buildings are measured at fair value. Plant and equipment and leasehold improvements are measured atcost.




(n) Property, Plant and Equipment - Continued

Depreciation of Non-Current Assets

Land has an unlimited useful life and is therefore not depreciated.

Depreciation for non-current assets is determined as follows:

Class of Asset DepreciationMethod

Buildings Straight LineLeasehold Improvements Straight LinePlant and Equipment Straight LineMotor Vehicles under a Finance Lease Straight Line

* Useful life commences when an asset is first acquired. When an asset is re-valued, it is depreciated over the remaining useful life of that asset.

If at any time management considers the carrying amount of an asset materially differs from its fair value, then the assetwill be revalued regardless of when the last valuation took place. Land and buildings that are acquired betweenrevaluations are held at cost until the next valuation, where they are re-valued to fair value.

Buildings, leasehold improvement and plant and equipment are systematically depreciated over their useful lives in amanner that reflects the consumption of their service potential. The useful lives of all assets held by LDA arereassessed on an annual basis.

Leasehold improvements and motor vehicles under a finance lease are depreciated over the estimated useful life ofeach asset, or the unexpired period of the relevant lease, whichever is shorter.



Fair value for land and buildings is measured using depreciated replacement cost. LDA obtains an independentvaluation for its land and buildings every two years. The date of the latest valuation was 30 June 2011.

All depreciation is calculated after first deducting any residual values which remain for each asset.

2-33-55

Useful Life (Years)*

10-50




(o) Inventories

Land Acquisitions

Capitalised Development Costs

(p) Payables

Unleased Territory land is acquired at market value and LDA makes payment to TAMS when the land is sold. LDA alsopurchases land from third parties at market value as required.



Inventories include Developed Land and Work in Progress and are stated at the lower of cost and net realisable value.Work in Progress costs are transferred to Developed Land when a specific development stage receives OperationalAcceptance and therefore becomes available for sale. The cost of Developed Land includes the acquisition cost as wellas any development costs incurred in development of the land.

GST payable to ATO reflects the amount of GST collected but not remitted to the ATO, net of any GST input creditsclaimed or available to be claimed from ATO.

Trade Payables represent the amounts owing for goods and services received prior to the end of the reporting period andunpaid at the end of the reporting period and relating to the normal operations of LDA.

Other payables include retention monies, joint venture creditors and GST payable to ATO.

Costs of development are costs that directly relate to preparing sites for sale as serviced land. These includeexpenditure associated with the implementation of estate planning, demolition, remediation activities, and relocation orconstruction of infrastructure services. Costs associated with marketing and selling activities, feasibility analysis andpreliminary development designs are not considered to be directly related to the preparation of the sites for sale asserviced land, and are expensed as incurred.

Land sites held for development and sale are classified as current assets when they are expected to be sold within oneyear.

Payables are a financial liability and are measured at the fair value of the consideration received when initiallyrecognised and at amortised cost subsequent to initial recognition, with any adjustments to the carrying amount beingrecorded in the Statement of Comprehensive Income. All amounts are normally settled within 30 days after the invoicedate.

Accrued expenses represent goods and services provided by other parties during the period that are unpaid at the end ofthe reporting period and where an invoice has not been received by year end.

Retention monies reflect amounts unpaid on progress claims by construction contractors that are held by LDA, pendingsatisfactory completion of works under the terms of the contracts.

Payables include Trade Payables, Accrued Expenses, Payable to TAMS for land sold, Other Payables, RetentionMonies and the Goods and Services Tax (GST) payable to the Australian Taxation Office (ATO).

The payable to TAMS for land sold represents the cost to LDA of blocks sold to third parties that remain unpaid toTAMS at the end of the reporting period.




(q) Other Provisions

Provision for Project Completions

Provision to Transfer Infrastructure

(r) Joint Ventures

Jointly Controlled Entities

The sale of land by LDA can involve the receipt of cash as well as the value of infrastructure assets (such as roads,services and landscaping) required to be constructed by the purchaser as part of the sale conditions. Upon itscompletion, the infrastructure works are transferred to TAMS and ACTEW Corporation. At contract settlement, LDArecognises the value of the future infrastructure as a liability.

LDA uses the equity method to account for its interest in three unincorporated jointly controlled entities (Forde JointVenture, Crace Joint Venture and Woden East Joint Venture). Under the equity method, the interest in a jointlycontrolled entity is initially recognised at cost. After initial recognition, this interest is adjusted for any post-acquisitionchange in the share of the jointly controlled entity’s net assets and is reflected in the Statement of Financial Position.The Statement of Comprehensive Income includes the share of the profit or loss of the jointly controlled entity.

Unrealised profits and losses associated with the contribution of development rights to the jointly controlled entity havebeen eliminated.



For any parcel of Developed Land, an estimate is made as to the amount of work still to be completed by LDA. Thisestimate takes the form of a ‘Project Completion percentage’ and is calculated on a monthly basis. The Provision forProject Completions is a calculation combining the total anticipated costs of each finished parcel of Developed Landtogether with the project completion percentage. Accordingly, the proportion of costs anticipated but not yet incurredare accounted for in this provision.




(s) Employee Benefits and On-Costs

Accrued Salaries and Superannuation

Accrued Annual and Long Service Leave

(t) Superannuation

Superannuation payments have also been made directly to superannuation funds for those members of the Public Sectorwho are part of superannuation accumulation schemes. This includes the Public Sector Superannuation SchemeAccumulation Plan (PSSAP) and schemes of employee choice.

Annual leave and long service leave liabilities are classified as current liabilities in the Statement of Financial Positionwhere there is no unconditional right to defer the settlement of the liability for at least 12 months. However, where thereis an unconditional right to defer the settlement of the liability for at least 12 months, annual leave and long serviceleave have been classified as a non-current liability in the Statement of Financial Position.

Superannuation payments are made to the Territory Banking Account each fortnight to cover LDA's superannuationliability for the Commonwealth Superannuation Scheme (CSS) and the Public Sector Superannuation (PSS). Thispayment covers the CSS/PSS employer contribution but does not include the productivity component. The productivitycomponent is paid directly to ComSuper by LDA. The CSS and PSS are defined benefit superannuation plans meaningthat the defined benefits received by employees are based on the employee's years of service and average final salary.

Accrued salaries and superannuation are measured at the amount that remains unpaid to employees at the end of thereporting period.

The long service leave liability is estimated with reference to the minimum period of qualifying service. For employeeswith less than the required minimum period of 7 years of qualifying service, the probability that employees will reachthe required minimum period has been taken into account in estimating the provision for long service leave and theapplicable on-costs.The provision for annual leave and long service leave includes estimated on-costs. As these on-costs only becomepayable if the employee takes annual and long service leave while in-service, the probability that employees will takeannual and long service leave while in service has been taken into account in estimating the liability for on-costs.

Annual and long service leave including applicable on-costs that do not fall due within the next 12 months are measuredat the present value of estimated future payments to be made in respect of services provided by employees up to the endof the reporting period. Consideration is given to the future wage and salary levels, experience of employee departuresand periods of service. At each reporting period end, the estimated future payments are discounted using market yieldson Commonwealth Government bonds with terms to maturity that match, as closely as possible, the estimated futurecash flows. In 2010-11, the discount factor used to calculate the present value of these future payments is 92.2%(92.9% in 2009-10).

Annual leave and long service leave that fall due wholly within the next 12 months are measured based on the estimatedamount of remuneration payable when the leave is taken.



Employee benefits include accrued salaries and superannuation, annual leave and long service leave. On-costs includepayroll tax and fringe benefits tax. Employee benefits accrue as a result of services provided by employees up to thereporting period that remain unpaid. They are recorded as a liability and as an expense.




(t) Superannuation - Continued

(u) Equity Contributed by the ACT Government

(v) Insurance

(w) Leases

LDA has entered into operating leases and finance leases.

Operating Leases

Finance Leases

(x) Finished Inventory - Land Value

The land value of finished inventory represents the land portion of inventory ready for sale but yet to be sold. This isrecorded as a liability as LDA is obligated to pay TAMS for the value of land once it is sold.

In respect of operating leases, the lessor effectively retains substantially all of the risks and benefits incidental toownership of the assets under an operating lease. Operating lease payments are recorded as an expense in theStatement of Comprehensive Income on a straight line basis over the term of the lease.

Finance leases effectively transfer, to the lessee, substantially the risk and benefits incidental to ownership of the assetsunder a finance lease and are initially recognised as assets and liabilities at the lower of fair value and the present valueof the minimum lease payments. Where there is reasonable assurance that LDA will obtain ownership of the asset atthe end of the lease term, the asset is depreciated over its useful life, otherwise it is depreciated over the lease term.Assets under a finance lease are depreciated on a straight-line basis. The depreciation is calculated after first deductingany residual values which remain for each leased asset. Minimum lease payments are allocated between interestexpense and reduction of the lease liability, according to the interest rate implicit in the lease.



Superannuation employer contribution payments, for the CSS and PSS, are calculated by taking the salary level at anemployee's anniversary date and multiplying it by the actuarially assessed nominal CSS or PSS employer contributionrate for each employee. The productivity component payments are calculated by taking the salary level, at anemployee's anniversary date, and multiplying it by the employer contribution rate (approximately 3%) for eachemployee. Superannuation payments for the PSSAP are calculated by taking the salary level, at an employee'sanniversary date, and multiplying it by the appropriate employer contribution rate. Superannuation payments for fundof choice arrangements are calculated by taking an employee's salary each pay and multiplying it by the appropriateemployer contribution rate.

A superannuation liability is not recognised in the Statement of Financial Position as the Superannuation ProvisionAccount recognises the total Territory superannuation liability for the CSS and PSS, and ComSuper and the externalschemes recognise the superannuation liability for the PSSAP and other schemes respectively.

The ACT Government is liable for the reimbursement of the emerging costs of benefits paid each year to members ofthe CSS and PSS in respect of the ACT Government service provided after 1 July 1989. These reimbursementpayments are made from the Superannuation Provision Account.

Contributions made by the ACT Government through its role as owner of LDA are treated as contributions of equity.

Major risks are insured through the ACT Insurance Authority. The excess payable, under this arrangement, variesdepending on each class of insurance held.






(y) Impact of Accounting Standards Issued but yet to be Applied

• AASB 1 First-time Adoption of Australian Accounting Standards (application date 1 January 2011);• AASB 5 Non-current Assets Held for Sale and Discontinued Operations (application date 1 January 2011);• AASB 7 Financial Instruments: Disclosures (application date 1 January 2011);• AASB 9 Financial Instruments (application date 1 January 2013);• AASB 101 Presentation of Financial Statements (application date 1 January 2011);• AASB 107 Statement of Cash Flows (application date 1 January 2011);• AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors (application date 1 January 2011).• AASB 110 Events after the Reporting Period (application date 1 January 2011);• AASB 118 Revenue (application date 1 January 2011);• AASB 119 Employee Benefits (application date 1 January 2011);• AASB 132 Financial Instruments: Presentation (application date 1 Jan 2011);• AASB 137 Provisions, Contingent Liabilities and Contingent Assets (application date 1 January 2011);• AASB 139 Financial Instruments: Recognition and Measurement (application date 1 January 2011);• AASB 140 Investment Property (application date 1 Jan 2011);• AASB 1031 Materiality (application date 1 January 2011);• AASB 1053 Application of Tiers of Australian Accounting Standards (application date 1 July 2013);• AASB 2009-11 Amendments to Australian Accounting Standards arising from AASB 9 [AASB 1, 3, 4, 5, 7, 101,

102, 108, 112, 118, 121, 127, 128, 131, 132, 136, 139, 1023 & 1038 and Interpretations 10 & 12] (application date 1January 2013);

• [AASB 1, 2, 3, 5, 7, 8, 101, 102, 107, 108, 110, 111, 112, 116, 117, 119, 121, 123, 124, 127, 128, 131, 133, 134, 136,137, 138, 140, 141, 1050, 1052 and Interpretations 2, 4, 5, 15, 17, 127, 129 & 1052] (application date 1 January2013);

•AASB 2010-6 Amendments to Australian Accounting Standards - Disclosures on Transfers of Financial Assets[AASB 1 & AASB 7] (application date 1 July 2011);

• AASB 2010-7 Amendments to Australian Accounting Standards arising from AASB 9 (December 2010) [AASB 1, 3,4, 5, 7, 101, 102, 108, 112, 118, 120, 121, 127, 128, 131, 132, 136, 137, 139, 1023 & 1038 and Interpretations 2, 5,10, 12, 19 & 127] (application date 1 January 2013);12, 19 & 127] (application date 1 January 2013); and

• AASB Interpretation 4 Determining whether an Arrangement contains a lease (application date 1 January 2011).• AASB Interpretation 14 AASB 119 - The Limit on a Defined Benefit Asset, Minimum Funding Requirements and

their Interaction (application date 1 Jan 2011).

The following new and revised accounting standards and interpretations have been issued by the Australian AccountingStandards Board but do not apply to the current reporting period. These standards and interpretations are applicable tofuture reporting periods. LDA does not intend to adopt these standards and interpretations early. It is estimated that theeffect of adopting the below pronouncements, when applicable, will have no material financial impact on LDA in futurereporting periods:





NOTE 3 CHANGE IN ACCOUNTING ESTIMATES

Change in Accounting Estimates

As disclosed in Note 2(s) Employee Benefits and On-Costs, the estimated future payments for annual and long serviceleave that do not fall due within the next 12 months are measured at present value. LDA uses a discount rate tocalculate the present value of long service and annual leave liabilities classified as long-term. This method takes intoaccount future wage increases discounted back to present value using the Commonwealth Government bond rate. Lastfinancial year the discount rate was 92.9%, however, due to a change in the Commonwealth Government bond rate, thepercentage is now 92.2%. This change decreased the value of the long service leave liabilities by $12,000.

Bi-annual review of project costing

The Bi-Annual Reviews for 2010-11 resulted in adjustments to total estimated costs of various projects. The overallimpact of the adjustment was to increase Cost of Land Sold and decrease inventory by $6.877m and therefore reduceOperating Surplus before Income Tax Equivalents by $6.877m.

Revision of the Discount Rate used to Estimate the Liability for Employee Benefits



NOTE 4 SIGNIFICANT ACCOUNTING JUDGEMENTS AND ESTIMATES

(i)

(ii)

(iii)

(iv)

(v)

(vi)

(vii) Interest Rate Applicable to Deferred Payment Receivables: LDA has made an estimate of the imputedrate of interest required to discount the contracted value (nominal value) of consideration to the fair value ofconsideration for those sales where payment has been deferred for more than 12 months. This occurs whenproceeds are received by instalments. The imputed rate of interest is calculated on a case by case basis andinvolves estimating the prevailing rate for a similar instrument that would be offered by an issuer with asimilar credit rating to the LDA.


For the Year Ended 30 June 2011Notes to and Forming Part of the Financial Statements

In the process of applying the accounting policies listed in this note, LDA has made the following judgements andestimates that have the most significant impact on the amounts recorded in the financial statements:

Fair Value of Assets: LDA has made a significant judgement regarding the fair value of its assets. Land andbuildings have been recorded at the depreciated replacement cost as determined by an independent valuer. Insome circumstances, buildings that are purpose built may in fact realise more or less than their carryingvalues.

Depreciation: LDA has made a significant estimate in the lengths of useful lives over which its assets aredepreciated. This estimation is the period in which utility will be gained from the use of assets, based onestimates from officers of LDA.

Inventories: The cost of unleased Territory land acquired from Government by LDA is recorded at the lowerof cost and net realisable value. Significant judgement has been made using management experience todetermine net realisable value of the land. The cost of land held for resale includes the acquisition cost aswell as any development costs incurred in development of the land.

Project Costing: As detailed at Note 2(q): Other Provisions, LDA has made a significant estimate of itsProvision for Project Completions based on the difference between the actual expenditure incurred to date,the estimated percentage of the project that is complete and total forecast expenditure. The computationsinvolve a consultative process involving both financial and operational executive staff. The calculations arebased on invoices paid to date, accrued expenditure and an estimation of costs still to be incurred to ensuresatisfactory completion of the project. Furthermore, an appropriate contingency is calculated based onmanagement experience and expertise together with accepted industry norms. Significant estimates havebeen made to calculate the cost of each block of land sold. The computation allocates a percentage of theestimated total forecast expenditure to each individual block based on the square metres of each individualblock in comparison to the overall size of the land being developed.

Impairment of Assets: LDA has made a judgement regarding its impairment of assets by undertaking aprocess of reviewing any likely impairment factors. LDA performed an assessment of any indication ofimpairment by completing an impairment checklist. This process has revealed that no asset impairments existin LDA.

Employee Benefits: Significant judgements have been applied in estimating liability for employee benefits.The estimated liability for employee benefits requires a consideration of the future wage and salary levels,experience of employee departures and periods of service. The estimate also includes an assessment of theprobability that employees will meet the minimum service period required to qualify for long service leaveand that on-costs will become payable. Further information on this estimate is provided in Note 2 (s)Employee Benefits and On-Costs and Note 3 Change in Accounting Estimates.

The Depreciated replacement cost is used to estimate fair value as there is a lack of market-based evidence ofsimilar sales because the assets are heritage listed and do not have a Crown lease.



2011 2010$’000 $’000

NOTE 5 LAND SALES

Sales of Land in LDA Estates (a) 140,936 204,709Sale of Development Rights to LDA Joint Ventures (b) - 7,159Englobo Sales to Other Developers (c) 13,200 39,619Auctions of Commercial, Industrial and Other Land 36,330 33,415Direct Sales of Land 13,284 15,323Infrastructure Delivery by Third Parties (d) 2,010 9,177

Total Land Sales 205,760 309,402

NOTE 6 USER CHARGES - ACT GOVERNMENT

Rental Income - ACT Government Entities - 58

Total User Charges - ACT Government - 58

NOTE 7 USER CHARGES - NON-ACT GOVERNMENT

User Charges – Non-ACT Government

Rental Income 137 139

Total User Charges - Non-ACT Government 137 139

LDA derives rental income from sites in Civic, Kingston and Gungahlin.

Notes to and Forming Part of the Financial StatementsLand Development Agency


(c) The decrease in Englobo sales was due to a delay in the release of the Ngunnawal2C site ($24 million) caused by a significant delay in the receipt of EnvironmentalProtection and Biodiversity Conservation (EPBC) approval.

(b) There were no sales of development rights to Joint Ventures during 2010-11.

(a) The decrease in sales of land in LDA estates was primarily due to sales in Wright($68 million) being delayed due to the impact of adverse weather.

(d) The decrease in infrastructure sales delivered by third parties was due to variedcontractual obligations negotiated by LDA with purchasers of land at the point of sale.The number of contracts settled that required infrastructure to be delivered by thirdparties increased however the cumulative scope of works required decreased in value.

In 2009-10, the ACT Government rented premises owned by the LDA in Kingston. In2010-11, these premises were transferred to TAMS.



2011 2010$’000 $’000

NOTE 8 INTEREST

Revenue from ACT Government Entities

Interest Revenue from the Investments at Fair Value through the Profit or Loss (a) 5,347 1,808 Interest Revenue from Treasury for Overpaid Income Tax (b) 1,129 1,099

Total Interest Revenue from ACT Government Entities 6,476 2,907

Revenue from Non - ACT Government Entities

Interest from Banks 288 295Other Interest Revenue - Late Settlements and Deferred Payments 801 1,242

Total Interest Revenue from Non-ACT Government Entities 1,089 1,537

Total Interest Revenue 7,565 4,444

(a) The increase in interest revenue was mainly due to higher investment returnsreceived from funds invested in the Territory Banking Account. The increasedinvestment returns were a result of a higher average investment balance due to asignificantly higher opening balance at 1 July 2010 ($86 million) in comparison to1 July 2009 ($29 million) together with a net increase in cash held throughout 2010-11($5 million), refer Cash Flow Statement.

(b) LDA lodged amended tax returns for the financial years 2006-07, 2007-08 and2008-09 which resulted in a refund of $16.16 million inclusive of $1.129 million ofinterest.

NOTE 9 RESOURCES RECEIVED FREE OF CHARGE

Resources Received from ACT Government Entities 944 453

Total Resources Received Free of Charge 944 453

The resources received free of charge relate to transfers of land from the ACT Property Group to the LDA at no cost. Four blocks were transferred in 2010-11 compared to one block in 2009-10.



Resources received free of charge relate to goods and/or services being provided freeof charge from other entities within the ACT Government.



2011 2010$’000 $’000

NOTE 10 OTHER REVENUE

Commonwealth Grants (a) 3,048 2,500 Miscellaneous Revenue (b) 812 1,250 Application and Call Option Fees 22 106Other Revenue 7 16

Total Other Revenue 3,889 3,872

NOTE 11 GAINS ON INVESTMENT

Unrealised Gains from Investments in the Cash Enhanced Fund with TerritoryBanking Account (a) 324 -

Total Other Revenue 324 -

NOTE 12 EMPLOYEE EXPENSES

Wages and Salaries 9,097 9,421 Payroll Tax 610 638Long Service Leave - Movement in Provision 337 174Annual Leave - Movement in Provision 115 145Other Employee Benefits (a) 1 53Workers Compensation Insurance Premium 61 51Fringe Benefit Tax 5 12

Total Employee Expenses 10,226 10,494

(a) Other employee benefits in 2009-10 included a one-off payment as a sign-on bonus for employees.

(a) The investment with the Territory Banking Account generated a gain in 2010-11.In the previous year, the Territory Banking Account adjusted cash distributions forunrealised gains and losses on this investment.



(b) The decrease in miscellaneous revenue is due primarily to the one-off GSTadjustment received in 2009-10 ($776,000) part offset by an increase in both landrent application fees.

(a) LDA continued to receive revenue via the Commonwealth Housing AffordabilityFund in order to meet its obligations to provide affordable housing to the Community. The increase in revenue was due to funding being received for projects in Harrisonand Crace, in addition to the continued funding of LDA's estate in Bonner.



2011 2010$’000 $’000

NOTE 13 SUPERANNUATION EXPENSES

Superannuation Contributions to the Territory Banking Account 804 860Superannuation to External Providers 314 269Superannuation Payment to ComSuper (for the PSSAP) 94 140Productivity Benefit 104 111

Total Superannuation Expenses 1,316 1,380

NOTE 14 SUPPLIES AND SERVICES

Selling Costs (a) 4,709 3,984 Consultants and Contractors 4,236 3,834 Office Services (b) 1,553 875Advertising and Marketing Costs 1,610 2,026 Asset Management 1,382 1,272 Operating Lease Rental Payments 917 1056Insurance 425 498Staff Development 243 292Office Equipment and Consumables 230 259Other 425 464

Total Supplies and Services 15,730 14,560

(a) Selling costs increased due to an increase in selling agent commissions. Theincrease in costs, despite the decrease in overall sales revenue, relates primarily tosome sales in Wright in which LDA became liable for 50% of commission costs atcontract exchange with the remaining 50% due at settlement.

(b) The increase in costs relate to the expensing of costs associated with thedevelopment of intangible assets which were not of a capital nature.

NOTE 15 DEPRECIATION

Buildings 46 58Leasehold Improvements 356 356Plant and Equipment 13 11Motor Vehicles under a Finance Lease 32 38

Total Depreciation 447 463





2011 2010$’000 $’000

NOTE 16 GRANTS AND PURCHASED SERVICES

Grants are amounts provided to ACT Government agencies and non-ACTGovernment agencies for general assistance or for a particular purpose. Grants maybe for capital, current or recurrent purposes and the name or category reflects the useof the grant. The grants given are usually subject to terms and conditions set out inthe contract, correspondence, or by legislation.

Purchased services are amounts paid to obtain services from other ACT Governmentagencies and external parties.

Housing Affordability Funding (a) 2,548 -Purchased Services (b) 652 -

Total Grants and Purchased Services 3,200 -

(a) LDA continued to receive revenue via the Commonwealth Housing AffordabilityFund (HAF) in order to meet its obligations to provide affordable housing to theCommunity. Funding was received for the first time for projects in Gungaderra andCrace and subsequently forwarded to LDA's project partners in line with contractualagreements. Funding received in 2009-10 related LDA estates and was therefore notpassed on to any other entities.



(b) Under contractual agreements signed in 2010-11, LDA agreed to purchaseservices from ACT Procurement Services ($200,000/year for 2009-10 & 2010-11)and the Economic Development Directorate ($252,000) for Human Resource servicesand Records Management services.



2011 2010$’000 $’000

NOTE 17 COST OF LAND SOLD

Land Transfers and Acquisitions (a) 76,792 113,443 Capitalised Development Costs (b) 75,897 74,906 Transfer of Infrastructure Assets (c) 2,010 9,177

Total Costs of Land Sold 154,699 197,526

In addition to the above, estimates of the Cost of Land Sold are reviewed on a bi-annual basis and the result of the 2010-11 bi-annual reviews was to increase Cost ofLand Sold by $6.877m, refer Note 3: Change in Accounting Estimates.

(a) The estimated cost of inventories sold, as detailed above, are expensed in theStatement of Comprehensive Income at the point the developed land is sold. Thedecrease in the value of land sold was primarily due to the decrease in overall landsales.

(b) Despite the decrease in overall land sales, capitalised development costs remainedconstant due to the effect of the bi-annual reviews detailed above ($7 million)together with the transfer of two community blocks to the Education and TrainingDirectorate for which developments costs were incurred but for which no revenue wasreceived ($5 million).

(c) The decrease in infrastructure sales delivered by third parties was due to variedcontractual obligations negotiated by LDA with purchasers of land at the point ofsale. The number of contracts settled that required infrastructure to be delivered bythird parties increased however the cumulative scope of works required decreased in



Cost of Land Sold is the current estimate for cost of inventories sold during thereporting period, which includes the acquisition of land, direct costs relating to thedevelopment of land and the value of infrastructure constructed by land purchasersand transferred to the Territory and Municipal Services Directorate, ACTEWCorporation Limited and ActewAGL.



2011 2010$’000 $’000

NOTE 18 INTEREST EXPENSE

Penalty Interest on Sales - 7Finance Charges on Finance Leases 9 9

Total Borrowing Costs 9 16

NOTE 19 OTHER EXPENSES

Costs of Land and Building Transferred to Other ACT Government Agencies Free of Charge (a) 705 440Community Service Obligation Payments to Agencies (b) 200 -Community Service Obligations (c) 69 -Joint Venture Expenses (d) 134 175Other Expenses (e) 811 -

Total Other Expenses 1,919 615

(a) LDA transferred previously owned land and buildings in Kingston to theACT Property Group.

(b) Payment to the Chief Minister's Department towards the cost of the ACTGovernment's "Canberra 2030 - Time to Talk" community engagement project.

(c) LDA incurs costs during the processing of direct grant applications. In theevent a direct sale is terminated with no revenue received, costs are categorisedas Community Service Obligation expenditure rather than a cost of land sold.

(d) Joint Venture Expenses consists mainly of indirect costs associated with themanagement of LDA's interests in Joint Ventures.

(e) The increase relates primarily to a one-off payment relating to a settlementwith the Australian Taxation Office in respect to GST payable for sales inMcGregor West in 2006-07 ($804,000).





2011 2010$’000 $’000

NOTE 20 WAIVERS, IMPAIRMENT LOSSES AND WRITE-OFFS

- -

NOTE 21 AUDITOR'S REMUNERATION

Audit Services

Audit Fees Paid to the ACT Auditor-General's Office 104 112

Total Audit Fees 104 112

NOTE 22 INCOME TAX EQUIVALENTS

Income Tax Equivalents

The major components of income tax equivalents are:Provision for Current Year Income Tax (a) 11,612 46,946 Adjustment in respect of Current Income Tax of Previous Year 6 327Current Year Movement in the Net Deferred Tax Liability, refer Note 33 4,190 (12,129)

Income Tax Equivalents 15,808 35,144

Numeric Reconciliation of Income Tax Equivalents to Prima Facie Tax Payable

Operating Surplus before Income Tax Equivalents 52,674 112,573 Income tax calculated at 30% 15,802 33,772Adjustment in respect of Current Income Tax of the Previous Year 6 327Adjustment in respect of Deferred Tax of Previous Year - 1,042

Tax Effect of Permanent Differences

Investment Allowance for Cost of New Motor Vehicles - (1)Non-deductible GST transaction - 4

Income Tax Equivalents 15,808 35,144

(a) The decrease in income tax equivalents is due to the decreased operating surplusbefore tax ($18 million) together with an increase in LDA's deferred tax liability ($18million).



Auditor’s remuneration consists of financial audit services provided to LDA by theACT Auditor-General’s Office. No other services were provided by theACT Auditor - General's Office.

There were no Waivers, Impairment Losses or Write-offs during the reporting periodpursuant to Section 131 of the Financial Management Act 1996. (2009-10: Nil)



2011 2010$’000 $’000

NOTE 23 CASH AND CASH EQUIVALENTS

Cash at Bank 16,045 10,679 Cash on Hand 2 1

Total Cash and Cash Equivalents 16,047 10,680

The change in cash held is detailed in the Cash Flow Statement and Cash FlowReconciliation (Note 41).

NOTE 24 RECEIVABLES

Current Receivables

Trade Receivables (a) 8,494 12,484 Deferred Payment Receivables (b) - 26,348 Dividend Receivable (c) - 42,891

8,494 81,723

Accrued Revenue 769 284Right to Receive Infrastructure 29,403 29,643

Total Current Receivables 38,666 111,650

Non-Current Receivables

Deferred Payment Receivables (b) 2,855 2,648

2,855 2,648

Right to Receive Infrastructure 11,187 9,607

Total Non-Current Receivables 14,042 12,255

Total Receivables 52,708 123,905



(a) As per Note 2(e): Revenue Recognition and based on AASB 118 Revenue, LDArecognises revenue at either exchange or settlement depending on the individual terms ofeach contract of sale. At 30 June 2011, there was a reduced number of contractsrecognised as revenue at the point of exchange.

(b) At 30 June 2011 all outstanding funds for contracts in which the sale proceeds werereceived by instalments had been received in full except for one contract inwhich $2.85 million was yet to be received.

(c) LDA received all outstanding funds from Treasury for previously overpaid dividends.



NOTE 24 RECEIVABLES - CONTINUED

Ageing of Receivables

Not Overdue Past Due TotalLess than 30

Days 30 to 90 DaysGreater than

90 Days$’000 $’000 $’000 $’000 $’000

2011Not Impaired 1

Receivables 52,608 17 83 -

52,708

Impaired 1

Receivables- - - - -

2010Not Impaired 1

Receivables 123,905 - - - 123,905

Impaired 1

Receivables- - - - -

(1) 'Not Impaired' refers to Net Receivables (that is Gross Receivables less Impaired Receivables).





2011 2010$’000 $’000

NOTE 24 RECEIVABLES - CONTINUED

Classification of ACT Government/Non-ACT Government Receivables

Receivables with ACT Government Entities

Trade Receivables 8,435 2,236 Dividend Receivable - 42,891 Accrued Revenue 729 230

Total Receivables with ACT Government Entities 9,164 45,357

Receivables with Non-ACT Government Entities

Right to Receive Infrastructure 40,590 39,250 Trade Receivables 59 12,611 Deferred Payment Receivables 2,855 26,348 Other Receivables - 285Accrued Revenue 40 54

Total Receivables with Non-ACT Government Entities 43,544 78,548

Total Receivables 52,708 123,905

NOTE 25 INVESTMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS

Investments at Fair Value Through Profit or Loss 84,841 75,517

Total Investments at Fair Value Through Profit or Loss 84,841 75,517

The increase in the investment held is primarily due to an increase in thenumber of units purchased in the Cash Enhanced Fund administered by theTerritory Banking Account. The increase in units purchased was due toincreased cash balances.





2011 2010$’000 $’000

NOTE 26 INVENTORIES

Current Inventories

Developed Land, Construction Completed and Available for Sale, at Cost (a) 25,064 53,894

Land Being Developed - Work in Progress Land Acquisition Costs (b) 1,090 1,146 Development Costs (c) 53,033 14,367 Total Land Being Developed - Work in Progress 54,123 15,513

Total Current Inventories 79,187 69,407

Non-Current Inventories

Land Being Developed - Work in Progress Land Acquisition Costs (b) 4,084 2,646 Development Costs (c) 30,950 25,497 Total Land Being Developed - Work in Progress 35,034 28,143

Total Non-Current Inventories 35,034 28,143

Total Inventories 114,221 97,550

(a) The decrease in land available for sale was due to the sale of the majority of theremaining Fyshwick Epicentre inventory together with continued sales at Bonner andFlemington Road.

(c) Development costs have increased due to the acceleration of the development inBonner (Stages 2 and 3) and new developments in Harrison, Molonglo (Wright andCoombs), Fyshwick Section 26 and New West (Hume).



(b) Land acquisitions include costs incurred in acquiring land from the Territory inaccordance with LDA's status as a Public Trading Enterprise [see Note 1(b)]: PublicTrading Enterprise. Acquisitions include land purchased from other parties at marketvalue and the fair value of land transferred from other ACT Government agencies toLDA for sale.



NOTE 27 PROPERTY, PLANT AND EQUIPMENT

2011 2010$’000 $’000

Land and Buildings

Land at Fair Value 1,800 2,470

Total Land Assets 1,800 2,470

Buildings at Fair Value 2,790 2,493 Less: Accumulated Depreciation - (59)

Total Written-Down Value of Buildings 2,790 2,434

Total Land and Written-Down Value of Buildings 4,590 4,904

Leasehold Improvements at Cost

Leasehold Improvements at Cost 1,779 1,779 Less: Accumulated Depreciation (800) (444)

Total Written-Down Value of Leasehold Improvement Assets 979 1,335

Plant and Equipment at Cost

Plant and Equipment at Cost 588 617 Less: Accumulated Depreciation (442) (419)

Total Written-Down Value of Plant and Equipment 146 198

5,715 6,437

Plant and Equipment under a Finance Lease

Carrying Amount of Assets under a Finance Lease

Motor Vehicles under a Finance Lease 159 189 Less: Accumulated Depreciation (54) (44)

Total Written-Down Value of Assets under a Finance Lease 105 145

Assets are included in the asset class to which they relate in the above disclosure.However, assets under a finance lease are also required to be separately disclosed asoutlined below.

Total Written-Down Value of Property, Plant and Equipment



Property, plant and equipment includes the following classes of assets – land,buildings, leasehold improvements, plant and equipment.

Land and Buildings held includes property held for use as office buildings, storagefacilities, and commercial display space. Land which is used for trading is held asinventory (See Note 26 'Inventories').

Leasehold Improvements represent capital expenditure incurred in relation to leasedassets. LDA has fit-outs in its leased buildings.

Plant and Equipment includes motor vehicles under a finance lease, furniture, fittingsand office electronic equipment.



NOTE 27 PROPERTY, PLANT AND EQUIPMENT - CONTINUED

Valuation of Property, Plant and Equipment

CB Richard Ellis performed an independent valuation of Land and Buildings as at 30 June 2011.

Reconciliation of Property, Plant and Equipment at 30 June 2011

The following table shows the movement of Property, Plant and Equipment throughout 2010-11.

Land Buildings Leasehold Plant and TotalImprovements Equipment

$’000 $’000 $’000 $’000 $’000

Carrying Amount at the Beginning of the Reporting Period 2,470 2,434 1,335 198 6,437

Additions - - - 36 36

Disposals (175) (530) - (44) (749)

Depreciation - (46) (356) (44) (446) Revaluation Increment (decrement) (495) 932 - - 437

Carrying Amount at the End of the Reporting Period 1,800 2,790 979 146 5,715

Reconciliation of Property, Plant and Equipment at 30 June 2010

The following table shows the movement of Property, Plant and Equipment throughout 2009-10.

Land Buildings Leasehold Plant and TotalImprovements Equipment

$’000 $’000 $’000 $’000 $’000

Carrying Amount at the Beginning of the Reporting 2,470 2,493 1,740 181 6,884 Period

Additions - - 20 142 162

Disposals - - (70) (76) (146) - Depreciation - (59) (355) (49) (463)

Carrying Amount at the End of the Reporting Period 2,470 2,434 1,335 198 6,437





NOTE 27 PROPERTY, PLANT AND EQUIPMENT - CONTINUED

Carrying Value of Assets Measured at Fair Valued under the Cost Model

2011 2010$’000 $’000

Carrying value if measured using Cost Model

Land Cost 670 722

Net Carrying amount of Land at Cost 670 722

BuildingsCost 1,761 1,895 Accumulated Depreciation and Impairment (1,409) (1,326)

Net Carrying amount of Buildings at Cost 352 569

NOTE 28 CAPITAL WORKS IN PROGRESS

Work in Progress - Software Development

Balance at the Beginning of the Reporting Period 238 -Additions 314 238

Balance at the End of the Reporting Period 552 238

LDA continued to pay licence and design fees as part of the development of in-housesoftware.

The following classes of Property, Plant & Equipment, which are carried at fair value (as indicated above), would havehad carrying values, if measured using the cost model, as follows:





2011 2010$’000 $’000

NOTE 29 PAYABLES

Current Payables

Trade Payables 1 11Other Payables 5,330 7,457 Payable to Territory and Municipal Services (TAMS) for land sold (a) 4,312 27,877 Accrued Expenses 14,575 10,485

Total Current Payables 24,218 45,830

Total Payables 24,218 45,830

Payables are aged as follows:

Not Overdue 24,218 45,830 Overdue for Less than 30 Days - -


Classification of ACT Government/Non-ACT Government Payables

Payables with ACT Government Entities

Payable to TAMS for Land Sold (a) 4,312 27,877 Accrued Expenses 432 827

Total Payables with ACT Government Entities 4,744 28,704

Payables with Non-ACT Government Entities

Other Payables 5,330 7,467 Accrued Expenses 14,144 9,659

Total Payables with Non-ACT Government Entities 19,474 17,126


(a) At 30 June 2010, LDA owed TAMS $27.9 million for land sold in June 2010. Thesubsequent payment was made in July creating a payable at 30 June 2010 for thesame amount. At 30 June 2011, due to a strong cash flow position, LDA made aninterim payment to TAMS for land sold in June 2011. The interim paymentof $30 million reduced the payable at year-end to $4.3 million.





NOTE 30 INTEREST-BEARING LIABILITIES

Finance Leases

LDA holds a number of finance leases. These leases are for motor vehicles. The interestrates implicit in these leases vary from 6.24% to 7.37% and the terms are two to threeyears. These leases allow for extensions, but have no terms of renewal or purchaseoptions, nor escalation clauses.

2011 2010$’000 $’000

Current Finance Leases

Secured

Finance Leases 83 32

Total Current Secured Finance Leases 83 32

Non-Current Finance Leases

Secured

Finance Leases 22 96

Total Non-Current Secured Finance Leases 22 96

Total Finance Leases 105 128

Secured Liability

Finance Leases

Finance lease commitments are payable as follows:

Within one year 87 39Later than one year but not later than five years 22 99

Minimum Lease Payments 109 138

Less: Future Finance Lease Charges (4) (10)

Amount Recognised as a Liability 105 128

Total Present Value of Minimum Lease Payments 105 128

The present value of the minimum lease payments are as follows:

Within one year 83 32Later than one year but not later than five years 22 96

Total Present Value of Minimum Lease Payments 105 128



The LDA's finance lease liability is effectively secured because if LDA defaults, theassets under a finance lease revert to the lessor.

Notes to and Forming Part of the Financial Statements



NOTE 30 INTEREST-BEARING LIABILITIES - CONTINUED

Classification on the Statement of Financial Position 2011 2010$’000 $’000

Finance Leases

Current Finance Leases 83 32Non-Current Finance Leases 22 96

Total Finance Lease Liabilities 105 128

(1) Credit Facilities

LDA has access to a $40 million credit facility with Treasury. However, no borrowingwas required during 2010-11.

(2) Overdraft

LDA didn't go into overdraft during the reporting period.

Notes to and Forming Part of the Financial StatementsFor the Year Ended 30 June 2011




2011 2010$’000 $’000

NOTE 31 EMPLOYEE BENEFITS

Current Employee Benefits and On-Costs

Long Service Leave 1,552 1,135 Annual Leave 1,222 1,066 Accrued Salaries and Superannuation 242 175On-Costs 42 40Other Benefits - 53

Total Current Employee Benefits and On-Costs 3,058 2,469

Non-Current Employee Benefits

Long Service Leave 229 300

Total Non-Current Employee Benefits 229 300

Total Employee Benefits 3,287 2,769

For Disclosure Purposes Only

Estimate of when Leave is Payable

Estimated Amount Payable within 12 Months

Long Service Leave 110 101Annual Leave 694 511Accrued Salaries 242 175Other Benefits 42 93

Total Employee Benefits Payable within 12 Months 1,088 779

Estimated Amount Payable after 12 Months

Long Service Leave 1,671 1,333Annual Leave 528 556

Total Employee Benefits Payable after 12 Months 2,199 1,889

Total Employee Benefits 3,287 2,668



The classification of current employee provisions includes amounts for which there is notan unconditional right to defer settlement by one year. This classification does notrepresent the amount expected to be settled within one year of reporting date. Theaverage annual leave and long service leave paid over the past three years is used toestimate the expected amounts of these benefits to be paid during the next 12 months andis detailed below.



2011 2010$’000 $’000

NOTE 32 OTHER PROVISIONS

Current Other Provisions

Provision for Project Completions 29,783 24,651 Provision to Transfer Infrastructure 29,403 29,643

Total Current Other Provisions 59,186 54,294

Non-Current Other Provisions

Provision for Project Completions 22,218 15,941 Provision to Transfer Infrastructure 11,187 9,607

Total Non-Current Other Provisions 33,405 25,548

Total Other Provisions 92,591 79,842

Reconciliation of the Provision for Project Completions

Provision for Project completion at the Beginning of the Reporting Period 40,592 108,253 Increase in Provision during the Reporting Period due to blocks becoming Settlement Ready (a) 54,042 90,639

Decrease in Provision during the Reporting Period due to Provision payments (b) (42,633) (158,300)

Provision for Project Completion at the End of the Reporting Period 52,001 40,592

Reconciliation of the Provision to Transfer Infrastructure

Provision to Transfer Infrastructure at the Beginning of the Reporting Period 39,250 30,549 New Infrastructure to be Developed by Other Developers (c) 2,010 9,177 Transfer of Infrastructure to ACT Government (670) (476)

Provision to Transfer Infrastructure at the End of the Reporting Period 40,590 39,250

(a) In 2009-10, the LDA estates at Franklin and Fyshwick Epicentre contributed $24 millionand $6 million respectively to the value of settlement ready blocks. The inventory in theseestates was predominately sold in 2009-10 and therefore the estates did not contribute to thevalue of settlement ready blocks in 2010-11. LDA continued to develop blocks throughout2010-11 however the impact of adverse weather caused significant delays in construction.

(b) In 2009-10, the Provision for Project Completion in the LDA estates at Franklin andFyshwick Epicentre were reduced by $49 million and $6 million respectively. As the estates arenear development completion, a similar reduction did not occur in 2010-11. This combined $55million forms part of the above variance together with the change in the Provision calculationmethodology which occurred in 2009-10 ($57 million). The change in methodology related tothe specific costing of each stage within an estate as opposed to using the cost of the entireproject as a base.

(c) The decrease in infrastructure sales delivered by third parties was due to varied contractualobligations negotiated by LDA with purchasers of land at the point of sale. The number ofcontracts settled that required infrastructure to be delivered by third parties increased howeverthe cumulative scope of works required decreased in value.





2011 2010$’000 $’000

NOTE 33 INCOME TAX PAYABLE / (REFUNDABLE)

Opening Balance 23,012 (27,639)Refund/(Payment) of Previous Year's Income Tax (28,752) 21,900 Refund for amended tax returns in 2006-07, 2007-08 and 2008-09 (a) 5,739 -Provision for Current Year Income Tax 11,612 46,946 Instalments Paid for Current Year's Income Tax (10,298) (18,195)

Total Income Tax Payable / (Refundable) 1,313 23,012

NOTE 34 OTHER LIABILITIES

Current Other Liabilities

Dividend Payable (a) 6,866 31,926 Revenue Received in Advance (b) 21,886 15,216 Finished Inventory - Land Value (c) 10,874 15,708

Total Current Other Liabilities 39,626 62,850

Reconciliation of Dividends Payable

Dividends Payable at the Beginning of the Reporting Period 31,926 15,093 Dividends Declared during the Reporting Period 36,866 77,429 Adjustment in respect of previous Reporting Period - (3)Dividends Paid during the Reporting Period for Previous Year (31,926) (10,593)Dividends Paid during the Reporting Period for Current Year (30,000) (50,000)

Dividend Payable at the End of the Reporting Period 6,866 31,926



(b) Revenue Received in Advance relates to deposits received for land sales. Theincrease is directly related to an increase in the value of sales contracts that have beenexchanged but are yet to settle in Bonner, Wright, Harrison and Ngunnawal.(c) The decrease in land available for sale was due to the continued sales at Bonner,Franklin and Flemington Road.

(a) The decrease in dividend payable is due to the decrease in the Operating Surplus andthe corresponding Dividend declared.

(a) LDA lodged amended returns in relation to a prior period error as detailed in LDA'sFinancial Statements for the year ended 30 June 2010. The error related to therecognition of revenue in respect to the sale of development rights to LDA's JointVenture partners.



2011 2010$’000 $’000

NOTE 35 DEFERRED TAX LIABILITY

The balance comprises temporary differences attributable to:

Opening Balance 5,692 17,822

Movement in Inventories 8,201 (30,763)Movement in Provision for Project Completions (3,423) 19,432 Movement in Employee Benefits (147) 36Accelerated Depreciation (91) (118)Other (350) (717)Subtotal - Current year movements 4,190 (12,130)

Adjustments for previous period share of Joint Venture Profit (a) 9,293 -

Net Deferred Tax Liability 19,175 5,692

Notes to and Forming Part of the Financial StatementsFor the Year Ended 30 June 2011


The increase in the deferred tax liability is primarily due to the reversals of timingdifferences for both Inventories and the Provision for Project Completions.

(a) The LDA lodged amended tax returns for 2007-08 and 2008-09 as a result of anamendment to the Crace Joint Venture taxable income for the above mentionedperiods. The amendment resulted in LDA recording a decreased taxable incomewhich resulted in a refund of $6.56 million. LDA also received a tax refund in respectto the year ended 30 June 2010 as a result of overpaid instalments of $2.74 milliondue to a delay in the finalisation of the Crace Joint venture taxable income.



2011 2010$’000 $’000

NOTE 36 EQUITY

Asset Revaluation Surplus

Balance at the Beginning of the Reporting Period 3,164 3,164

Decrement in Land due to Revaluation (495) -Increment in Buildings due to Revaluation 932 -

437 -

Balance at the End of the Reporting Period 3,601 3,164



The Asset Revaluation Surplus is used to record the increments and decrements in thevalue of land and buildings.



NOTE 37 FINANCIAL INSTRUMENTS

Interest Rate Risk

Credit Risk

LDA only hold financial assets in floating interest rate arrangements. Therefore, LDA is not significantly exposed tomovements in interest payable, however, it is exposed to movements in interest receivable.

Notes to and Forming Part of the Financial Statements

LDA's credit risk mainly includes the investment of excess cash and exposure to deferred payment receivables. Creditrisk is managed by LDA by only investing surplus funds with the Territory Banking Account, which has appropriateinvestment criteria for the external fund manager engaged to manage the Territory’s surplus funds. Credit risk fordeferred payment receivables relates to sales in which proceeds are received via instalments. All contracts of this natureare effectively secured by the Deed of Agreement for each sale. Therefore, the credit risk of the investment of excesscash and loans receivable is immaterial.



Credit risk is the risk that one party to a financial instrument will fail to discharge an obligation and cause the otherparty to incur a financial loss. LDA’s credit risk is limited to the amount of the financial assets it holds net of anyprovision for impairment. LDA expects to collect all financial assets that are not past due or impaired.

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because ofchanges in market interest rates.

Financial assets subject to floating interest rates include investments held in commercial banking accounts and theTerritory Banking account together with receivables in respect to sales completed via instalments. LDA manages theinterest rate risk on investments held in commercial banking account and Territory Banking Account by only investingin floating interest rate investments that are low risk whilst the receivable from instalment payments is not activelymanaged due to the immateriality of the associated interest payments.

Interest rate risk for financial liabilities is not actively managed by LDA as the majority of financial liabilities are non-interest bearing.

Outlined below are the terms and conditions of financial assets and liabilities held by the LDA as at 30 June 2011.Details of significant policies and methods adopted, including the criteria for recognition, the basis of measurement, andthe basis on which income and expenses are recognised, with respect to each class of financial asset and financialliability are disclosed at Note 2 Summary of Significant Accounting Policies.

A sensitively analysis of the interest rate risk has not been performed, because as disclosed above, the LDA's interestrate risk is immaterial (low).



NOTE 37 FINANCIAL INSTRUMENTS - CONTINUED

Liquidity Risk

Price Risk

A sensitively analysis of the price risk has not been performed, because as disclosed above, the LDA's exposure to pricerisk is immaterial (low).

Price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes inmarket prices (other than those arising from interest rate risk or currency risk), whether these changes are caused byfactors specific to the individual financial instrument or its issuer, or factors affecting all similar financial instrumentstraded in the market. LDA is subject to price risk due to its investments in the Cash Enhanced Fund administered by theTerritory Banking Account. The price fluctuations in the units of the cash enhanced portfolio are caused by movementsin the underlying investment of the portfolio. The underlying investments are managed by an external fund managerwho invests in a variety of different bonds including bonds issued by the Commonwealth Government, StateGovernment guaranteed Treasury corporations and semi government authorities, as well as investment-grade corporateissues.



Liquidity risk is the risk that LDA will encounter difficulties in meeting obligations associated with financial liabilitiesthat are settled by delivering cash or another financial asset. To limit its exposure to liquidity risk, LDA ensures that itdoes not have a large portion of its financial liabilities maturing in any one reporting period and that, at any particularpoint in time, it has a sufficient amount of current financial assets to meet its current financial liabilities.

LDA's exposure to liquidity risk and the management of this risk has not changed since the previous reporting period.




Fair Value of Financial Assets and Liabilities

The carrying amounts and fair values of financial assets and liabilities at the end of the reporting period are:

Carrying CarryingNote Amount Fair Value Amount Fair ValueNo. 2011 2011 2010 2010

$’000 $’000 $’000 $’000Financial Assets

Cash and Cash Equivalents 23 16,047 16,047 10,680 10,680 Receivables (a) 24 11,349 11,349 84,371 84,371 Investments at Fair Value Through Profit or Loss 25 84,841 84,841 75,517 75,517

Total Financial Assets 112,237 112,237 170,568 170,568

Financial Liabilities

Payables 29 24,218 24,218 45,830 45,830 Finance Leases 30 105 105 128 128

Total Financial Liabilities 24,323 24,323 45,958 45,958



(a) The amounts reported are net of the Right to Receive Infrastructure and accrued revenue which do not meet thedefinition of a Financial Instrument under AASB 139 'Financial Instruments'.




Fair Value Hierarchy

Level 1 Level 2 Level 3 Total$’000 $’000 $’000 $’000

Financial Assets

Financial Assets at Fair Value Through the Profit - 84,841 - 84,841

- 84,841 - 84,841

Transfer Between Categories

Level 1 Level 2 Level 3 Total$’000 $’000 $’000 $’000

Financial Assets

Financial Assets at Fair Value Through the Profit - 75,517 - 75,517

- 75,517 - 75,517

Classification According to Fair Value Hierarchy

Classification According to Fair Value Hierarchy

or Loss

There have been no transfers of financial assets or financial liabilities between Level 1 and Level 2 during the reporting period.

2010

and Loss

• Level 2 - inputs other than quoted prices included within Level 1 that are observable for the asset or liability either

• Level 3 - inputs for the asset or liability that are not based on observable market data (unobservable inputs).

The carrying amount of financial assets measured at fair value, as well as the methods used to estimate the fair value aresummarised in the table below. All other financial assets and liabilities are measured, subsequent to initial recognition, atamortised cost and as such are not included in the table below.

2011

directly (i.e. as prices) or indirectly (i.e. derived from prices); and



LDA is required to classify financial assets and financial liabilities into a fair value hierarchy that reflects the significance ofthe inputs used in determining their fair value. The fair value hierarchy is made up of the following three levels:

• Level 1 - quoted prices (unadjusted) in active markets for identical assets or liabilities;




Maturity Analysis

Note Weighted Floating 1 Year Over 1 to More Non- TotalNo. Average Interest or Less 5 Years than 5 Interest

Interest Rate Years BearingRate $’000 $’000 $’000 $’000 $’000 $’000

Financial Instruments

Financial Assets

Cash and Cash Equivalents 23 2.15% 16,045 - - - 2 16,047Receivables (a) 24 7.17% 3,416 - - - 9,263 12,679Investments at Fair Value Through Profit or Loss 25 6.67% 84,841 - 84,841

Total Financial Assets 104,302 - - - 9,265 113,567


Payables 29 - - - - 24,218 24,218Finance Leases 30 6.05% - 87 22 - - 109

Total Financial Liabilities - 87 22 - 24,218 24,327

Net Financial Assets/(Liabilities) 104,302 (87) (22) - (14,953) 89,240

(a) The amounts reported are net of the Right to Receive Infrastructure which does not meet the definition of a Financial Instrumentunder AASB 139 'Financial Instruments'.

Fixed Interest maturing in:

The following table sets out LDA's maturity analysis for financial assets and liabilities as well as the exposure to interest rates,including the weighted average interest rates by maturity period as at 30 June 2011. All financial assets and liabilities which havea floating interest rate or are non-interest bearing will mature in one year or less. All amounts appearing in the following maturityanalysis are shown on an undiscounted cash flow basis.






Note Weighted Floating 1 Year Over 1 to More Non- TotalNo. Average Interest or Less 5 Years than 5 Interest

Interest Rate Years BearingRate $’000 $’000 $’000 $’000 $’000 $’000

Financial Instruments

Financial Assets

Cash and Cash Equivalents 23 1.47% 10,679 - - - 1 10,680Receivables (a) 24 7.17% 15,836 - - - 69,746 85,582Investments at Fair Value Through 25 4.79% 75,517 - 75,517 Profit or Loss

Total Financial Assets 102,032 - - - 69,747 171,779


Payables 27 - - - - 45,830 45,830Finance Leases 28 6.05% - 39 99 - - 138

Total Financial Liabilities - 39 99 - 45,830 45,968

Net Financial Assets/(Liabilities) 102,032 (39) (99) - 23,917 125,811

Carrying Amount of Each Category of Financial Asset and Financial Liability2011 2010

$'000 $'000Financial AssetsLoans and Receivables (a) 12,679 85,582Investments at Fair Value Through Profit or Loss 84,841 75,517

Financial LiabilitiesFinancial Liabilities Measured at Amortised Cost 24,327 45,968

(a) The amounts reported are net of the Right to Receive Infrastructure which does not meet the definition of a Financial Instrumentunder AASB 139 'Financial Instruments'.

LDA does not have any financial assets in the 'Available for Sale' category or the 'Held to Maturity' category and as such thesecategories are not included above. Also, LDA does not have any financial liabilities in the 'Financial Liabilities at Fair Valuethrough Profit and Loss' category and as such this category is not included above.



Fixed Interest maturing in:

The following table sets out LDA's maturity analysis for financial assets and liabilities as well as the exposure to interest rates,including the weighted average interest rates by maturity period as at 30 June 2010. All financial assets and liabilities which have afloating interest rate or are non-interest bearing will mature in one year or less. All amounts appearing in the following maturityanalysis are shown on an undiscounted cash flow basis.



2011 2010$’000 $’000

NOTE 38 COMMITMENTS

Operating Leases

Non-cancellable operating lease commitments are payable as follows:

Within One Year 997 908Later than One Year but not later than Five Years 1,374 2,305

Total Operating Lease Commitments 2,371 3,213

The operating leases relate to the lease of Dickson Office from ACT Property Groupand IT plant and equipment and mobile phones provided by Shared Services Centre.The operating lease agreements give LDA the right to renew the lease. This will resultin the terms of the lease becoming renegotiable.







NOTE 39 CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Contingent Liabilities

The ACT Government Solicitor is acting for the Land Development Agency in matters involving legal claims. At 30 June 2011, the current estimate of potential claims is $1,050,000.

Contingent Assets

Should the LDA becomes liable for the amount detailed above, the insurance claims will be made in respect topolicies held with ACT Insurance Authority with expected receipts to total $1,040,000.



NOTE 40 INTEREST IN JOINTLY CONTROLLED ENTITIES

2011 2010$’000 $’000

Revenue 49,031 46,228 Expenses 35,251 35,536

13,780 10,692

Revenue Progressively Recognised for Sale of Development Rights (AASB 131.48) 7,821 8,567

Total Net Income 21,601 19,259

Assets 107,677 113,270 Liabilities 43,109 42,266

Net Assets 64,568 71,004

31,861 24,807 Share of Operating Profit from Joint Ventures 13,780 10,692 New Investment in Joint Ventures - 4,295 Distribution from Joint Ventures (20,216) (16,500)Elimination of Net Receivable/(Payable) at year-end (513) -Revenue progressively recognised for sale of development rights (AASB 131.48) 7,821 8,567

32,733 31,861

Classification in the Statement of Financial Position

Future Joint Venture Distributions

Current 21,844 13,012Non-Current 10,889 22,155

32,733 35,167

Share of Joint Venture Assets and Liabilities are as follows:

The Carrying Amount of the Investments in the Joint Ventures

Balance of Investments in Joint Ventures at the Beginning of the Reporting

Balance of Investment in Joint Ventures at the End of the Reporting Period



LDA was involved in three unincorporated joint venture entities during the reportingperiod for the residential development of Forde, Woden East and Crace. A summary ofLDA's total interest in its Joint Ventures is detailed below.

Share of Joint Venture Profits are as follows:

Operating Profit before Income Tax

The carrying amount of LDA's Investment in any of its Joint Ventures will differ fromthe carrying amount recorded in the Financial Statements of that Joint Venture due torecognition requirements detailed in AASB 131 'Interests in Joint Ventures'. UnderAASB 131.48, when a venturer contributes assets to a Joint Venture only that portion ofthe gain that is attributable to other venturers can be recognised. The balance of LDA'sinvestment in any of its Joint Ventures is recognised progressively in line with the saleof developed land by that Joint Venture to third parties.



NOTE 40 INTEREST IN JOINTLY CONTROLLED ENTITIES - CONTINUED

Joint Venture Name Estate Name

Forde JV Forde

2011 2010$’000 $’000

Revenue 25,357 34,983 Expenses 15,004 25,283

10,353 9,700




Net Assets 7,586 13,948

5,206 968Share of Operating Profit from Joint Venture 10,353 9,700 New Investment in Joint Venture - 4,295 Distribution from Joint Venture (16,716) (16,500)Elimination of Net Receivable at year-end 26Revenue progressively recognised for sale of development rights (AASB 131.48) 4,475 6,743

3,344 5,206



Current 3,344 5,206 Non-Current - -

3,344 5,206

Capital Commitments arising from the Joint VentureThe Joint Venture has no commitments that do not relate to inventory.


LDA was involved in an unincorporated joint venture entity during the reporting period,('Forde JV'), for the residential development of Forde. There are two venturers in theForde Joint Venture. LDA and Forde Developments Pty Ltd with each party having a50% ownership interest and voting power in the Joint Venture. The reporting date ofLDA is 30 June and the reporting date of the Joint Venture is 30 June and 31 Decembereach year.

The Joint Venture has no contingent liabilities.



Share of the Joint Venture Profit is as follows:

Operating Profit before Income Tax

Balance of Investment in Joint Venture at the End of the Reporting Period

The Carrying Amount of the Investment in the Joint Venture

Balance of Investment in Joint Venture at the Beginning of the Reporting Period

Share of the Joint Venture Assets and Liabilities is as follows:





Woden East JV Woden East

2011 2010$’000 $’000

Revenue 58 65Expenses 996 478

Operating (Loss) Before Income Tax (938) (413)


Net Assets 10,767 11,706

3,306 3,719 Share of Operating (Loss) from Joint Venture (938) (413)Elimination of Net Receivable at year-end 2 -

2,370 3,306



Current - -Non-Current 2,370 3,306

2,370 3,306

Capital Commitments arising from the Joint Venture






LDA was involved in an unincorporated joint venture entity during the reporting period('Woden East JV') for the residential development of Woden East. There are twoventurers in Woden East JV. LDA and Woden East Pty Ltd each have a 50% ownershipinterest and voting power in the Joint Venture. The reporting date of LDA and the JointVenture is 30 June each year.

The Joint Venture has no contingent liabilities.




The Joint Venture has no commitments that do not relate to inventory.





Crace JV Crace

2011 2010$’000 $’000

Revenue 23,616 11,180Expenses 19,251 9,775

Operating Profit/(Loss) Before Income Tax 4,365 1,405



Assets 62,385 66,954Liabilities 16,170 21,604

Net Assets 46,215 45,350

23,349 20,120Share of Operating Profit /(Loss) from Joint Venture 4,365 1,405Distribution from Joint Venture (3,500) -Elimination of Net Receivable(Payable) at year-end (541) -Revenue progressively recognised for sale of development rights (AASB 131.48) 3,346 1,824

27,019 23,349



Current 18,500 4,500Non-Current 8,519 18,849

27,019 23,349

Capital Commitments arising from the Joint VentureThe Joint Venture has no commitments that do not relate to inventory.

Contingent Liabilities The Joint Venture has no contingent liabilities.








LDA was involved in an unincorporated joint venture entity during the reporting period('Crace JV) for the residential development of Crace. There are two venturers in CraceJV. LDA and Crace Developments Pty Ltd each have a 50% ownership interest andvoting power in the Joint Venture. The reporting date of LDA is 30 June and thereporting date of Crace JV is 30 June and 31 December each year.



NOTE 41 CASH FLOW RECONCILIATION

2011 2010$’000 $’000

Total Cash and Cash Equivalents Recorded in the Statement of Financial Position 16,047 10,680

Cash and Cash Equivalents at the End of the Reporting Period as Recorded in the Cash Flow Statement 16,047 10,680

(b) Reconciliation of Net Cash Inflows from Operating Activities to the Operating Surplus

Operating Surplus 36,866 77,429

Add/(Less) Non-Cash Items

Depreciation 447 463

Add/(Less) Items Classified as Investing or Financing

Profit on Sale of Asset (6) (16)Loss on Disposal of Asset 748 51Unrealised Gain (324) -Revenue Received Free of Charge (944) (440)Share of Joint Ventures Profit (21,600) (19,260)

15,187 58,227

Changes in Operating Assets and Liabilities

Decrease/(Increase) in Receivables 28,818 (49,230)(Increase)/Decrease in Inventories (15,727) 109,883 Decrease/(Increase) in Deferred Tax Asset/Liability 13,483 (12,130)(Decrease)/Increase in Capital Works in Progress (314) 238Increase/(Decrease)in Employee Entitlements 518 (35)(Decrease)/Increase in Payables (21,612) 15,449 Increase/(Decrease) in Provisions 12,749 (58,960)(Decrease)/Increase in Income Tax Payable (21,699) 50,651 Increase/(Decrease) in Other Liabilities 1,836 (13,094)

Net Changes in Operating Assets and Liabilities (1,948) 42,772

Net Cash Inflows from Operating Activities 13,239 100,999

(c) Non-Cash Financing and Investing Activities

Acquisition of Motor Vehicles by means of Finance Lease 91 96



Cash Before Changes in Operating Assets and Liabilities

(a) Reconciliation of Cash and Cash Equivalents at the End of the ReportingPeriod in the Cash Flow Statement to the Equivalent Items in the Statement ofFinancial Position.



NOTE 42 EVENTS OCCURRING AFTER BALANCE DATE

NOTE 43 RELATED PARTY DISCLOSURES

The directors of LDA during the year were:

Mr Ray Young: Former Deputy Chair, appointed on 01/01/2011 as ChairMr John Haskins: Former Chair, resigned on 31/12/2010Mr Bill Wood: MemberMs Margaret Gillespie: Former Member, resigned on 13/05/2011Mr Robert Tonkin: Member, appointed as Deputy Chair on 01/01/2011 Mr Ray Davis: Member, appointed on 01/07/2010 Mr John Robertson: Chief Executive Officer, Member

2011 2010$’000 $’000

Total remuneration received or due and receivable by the directors of LDA 281 261

Number Number$10,000 - $20,000 - 1$20,000 - $3,0000 1 -$40,000 - $50,000 4 3$50,000 - $60,000 - 1$60,000 - $70,000 1 1

6 6

The Chief Executive Officer did not receive any remuneration as a member of the Board.

Value$’000

Sales to related parties 213

Sales to related parties included the arm's length sale of land to the relatives of a Board member.

Related Party Transaction



Related party transactions between the Land Development Agency and related parties are detailed below:

On 16 August 2011, the Australian Taxation Office (ATO) and LDA agreed to a settlement in respect to an underpaidGST liability. The settlement amount was $927,204 and was paid on 5 September 2011.



1

Woden East Joint Venture

Land Development Agency ABN 20 419 925 579

and

Woden East Pty Ltd ACN 119 653 093

Financial Statements For the year ended 30 June 2011

Contents

Page

Financial Statements Statement of comprehensive income 2 Statement of changes in equity 2 Statement of financial position 3 Statement of cash flows 4 Notes to the financial statements 5 Declaration by the Joint Venture Partners 20 Independent auditor’s report 21




2

Statement of comprehensive income For the year ended 30 June 2011 Note 2011

$ 2010 $

REVENUE Revenue from operations 4 144,791 85,937 TOTAL REVENUE

144,791

85,937

EXPENSES Expenses from operations 5 (85,788) (75,885) Administration expenses 5 (9,249) (9,535) TOTAL EXPENSES

(95,037)

(85,420)

OPERATING PROFIT ATTRIBUTABLE TO MEMBERS OF WODEN EAST JOINT VENTURE

49,754

517

Statement of changes in equity

For the year ended 30 June 2011

Note 2011 $

2010 $

CAPITAL ACCOUNTS Balance at the beginning of the reporting period 25,000,000 25,000,000 Capital contribution - - Balance at the end of the reporting period 13 25,000,000 25,000,000 ACCUMULATED PROFITS / (LOSSES) Balance at the beginning of the reporting period (1,588,900) (717,342) Effects of retrospective restatement recognised in accordance with AASB 108

1(q)

1,598,702

726,627

Adjusted balance at the beginning of the reporting period 9,802 9,285 Operating profit attributable to members of the Woden East Joint Venture

49,754

517

Balance at the end of the reporting period 14 59,556 9,802 TOTAL EQUITY AT THE END OF THE REPORTING PERIOD 25,059,556 25,009,802

The above statement of comprehensive income and statement of changes in equity should be read in conjunction with the accompanying notes.




3

Statement of financial position As at 30 June 2011 Note 2011

$ 2010 $

2009 $

CURRENT ASSETS Cash and cash equivalents 6 1,639,305 2,414,840 1,922,593 Trade and other receivables 7 280,054 285,747 2,547,082 Inventories 8 22,762,428 - - TOTAL CURRENT ASSETS 24,681,787 2,700,587 4,469,675 NON-CURRENT ASSETS Inventories 8 34,510,238 36,476,124 33,174,534 Property, plant and equipment 9 8,047 12,615 17,183 TOTAL NON-CURRENT ASSETS 34,518,285 36,488,739 33,191,717 TOTAL ASSETS 59,200,072 39,189,326 37,661,392 CURRENT LIABILITIES Trade and other payables 10 2,711,909 655,870 3,061,268 Interest-bearing loans 11 8,328,607 13,523,654 9,590,839 TOTAL CURRENT LIABILITIES 11,040,516 14,179,524 12,652,107 NON-CURRENT LIABILITIES Interest-bearing loans 11 23,100,000 - - TOTAL NON-CURRENT LIABILITIES 23,100,000 - - TOTAL LIABILITIES 34,140,516 14,179,524 12,652,107 NET ASSETS 25,059,556 25,009,802 25,009,285

MEMBERS` EQUITY Capital accounts 13 25,000,000 25,000,000 25,000,000 Accumulated profits 14 59,556 9,802 9,285

TOTAL MEMBERS` EQUITY 25,059,556 25,009,802 25,009,285

The above statement of financial position should be read in conjunction with the accompanying notes.




4

Statement of cash flows For the year ended 30 June 2011 Note 2011

$ 2010

$ CASH FLOWS FROM OPERATING ACTIVITIES Receipts from operations 453,014 161,516 Interest received 26,778 12,707 Payments to suppliers (110,792) (151,356) Finance costs paid (2,441,827) (987,135) Purchase of inventories (16,607,661) (2,476,300) NET CASH (OUTFLOWS) FROM OPERATING ACTIVITIES

15

(18,680,488)

(3,440,568)

CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from borrowings 31,604,953 3,932,815 Repayment of borrowings (13,700,000) - NET CASH INFLOWS FROM FINANCING ACTIVITIES

17,904,953

3,932,815

NET (DECREASE) / INCREASE IN CASH AND CASH EQUIVALENTS

(775,535)

492,247

Cash and cash equivalents at the beginning of the reporting period 2,414,840 1,922,593 CASH AND CASH EQUIVALENTS AT THE END OF THE REPORTING PERIOD

6

1,639,305

2,414,840

The above statement of cash flows should be read in conjunction with the accompanying notes.



Woden East Joint Venture Notes to the financial statements For the year ended 30 June 2011

5

1. Summary of Significant Accounting Policies The Woden East Joint Venture (the “Joint Venture”) is a joint venture domiciled in Australia. The Joint Venture was formed to develop the “Woden Green” suburb. (a) Statement of Compliance

The financial statements are special purpose financial statements which have been prepared under a fair presentation framework and comply with all applicable Australian Accounting Standards (‘AASBs’) (including Australian Accounting Interpretations) adopted by the Australian Accounting Standards Board (AASB). (b) Basis of Preparation

The special purpose financial statements have been prepared under a fair presentation framework in accordance with the requirements of the Joint Venture Agreement between Woden East Pty Ltd and the Land Development Agency. The financial statements have been prepared using the accrual basis of accounting, which recognises the effects of transactions and events when they occur.

The financial statements are prepared on a historical cost basis. The financial statements are presented in Australian dollars.

The preparation of financial statements in conformity with Australian Accounting Standards requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods. Significant Accounting Estimates and Judgements A judgement was made by management in the application of Australian Accounting Standards with regard to the allocation of land and scheme costs that has had a significant effect on the financial statements. The allocation of land and scheme costs was made between stage 1 of the Avoca development; stage 2 of the Avoca development; the commercial component of the ‘N10’ site; and the rest of the development site. Land and other costs not directly attributable to a specific development stage are allocated based on the percentage of the total value of the development that each stage represents. The percentage used is determined with reference to an independent land valuation. Stage 1 of the Avoca development and the commercial component of the ‘N10’ site are presented as current inventories as they are expected to be sold, or be brought to a condition ready for sale, within twelve months after the end of the reporting period. Inventories are measured at the lower of cost and net realisable value. Management has estimated that the net realisable value of all inventories exceeds their cost. Therefore, all inventories are measured at cost. (c) Reporting Period These financial statements state the financial performance, changes in equity and cash flow for the Joint Venture for the year ended 30 June 2011 and the financial position of the Joint Venture as at 30 June 2011.




6

1. Summary of Significant Accounting Policies (continued) (d) Comparatives Where necessary comparative figures have been adjusted to conform with any changes in presentation in the current year. (e) Revenue Recognition Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Joint Venture and the revenue can be reliably measured. Car parking income is recognised in the period in which it is collected by the car park manager. Interest revenue is recognised in the statement of comprehensive income as it accrues. (f) Taxes Income taxes The Joint Venture is not a taxable entity with the net profit or loss being distributed to the members at the end of the financial year. Goods and Services Tax (GST) The Joint Venture obtained status as a GST Joint Venture from 1 July 2010. Therefore, the Joint Venture was able to lodge its own GST returns and remit or claim GST in its own right for the year ended 30 June 2011. (g) Cash and Cash Equivalents Cash and cash equivalents in the statement of financial position and the statement of cash flows consist of cash at bank. (h) Trade and Other Receivables Trade receivables are initially recognised at fair value and subsequently measured at amortised cost less an allowance for any uncollectible amounts. An allowance for impairment losses is made when there is objective evidence that the Joint Venture will not be able to collect the debts. (i) Property, Plant and Equipment Property, plant and equipment are measured at cost less accumulated depreciation and any accumulated impairment losses (if applicable). Property, plant and equipment consist of car park equipment.




7

1. Summary of Significant Accounting Policies (continued) (j) Inventories Development projects are stated at the lower of cost and net realisable value. Cost includes direct materials and expenses necessary to bring inventories to their present location and condition. Costs incurred in the initial phase of development projects are capitalised and expensed against the associated sales on the same basis as the recognition of sales and profit for development costs. Marketing costs of the project are expensed as incurred. Borrowing costs that are attributable to the construction of inventories are capitalised. (k) Impairment of Assets The Joint Venture assesses at each reporting date whether there is an indication that an asset may be impaired. If any such indication exists, or when annual impairment testing for an asset is required, the Joint Venture makes an estimate of the asset’s recoverable amount. An asset’s recoverable amount is the higher of its fair value less costs to sell and its value in use and is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets and the asset's value in use cannot be estimated to be close to its fair value. In such cases, the asset is tested for impairment as part of the cash generating unit to which it belongs. When the carrying amount of an asset or cash-generating unit exceeds its recoverable amount, the asset or cash-generating unit is considered impaired and is written down to its recoverable amount. In assessing value in use, the estimated future cash flows are discounted to their present value using a discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. Impairment losses relating to continuing operations are recognised in those expense categories consistent with the function of the impaired asset. An assessment is also made at each reporting date as to whether there is any indication that previously recognised impairment losses may no longer exist or may have decreased. If such indication exists, the recoverable amount is estimated. A previously recognised impairment loss is reversed only if there has been a change in the estimates used to determine the asset’s recoverable amount since the last impairment loss was recognised. If that is the case, the carrying amount of the asset is increased to its recoverable amount. That increased amount cannot exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised for the asset in prior years. Such reversal is recognised in profit or loss. After such a reversal, the depreciation charge is adjusted in future periods to allocate the asset’s revised carrying amount, less any residual value, on a systematic basis over its remaining useful life. (l) Trade and Other Payables Trade payables and other payables are measured at fair value and represent liabilities for goods and services provided to the Joint Venture prior to the end of the financial year that are unpaid and arise when the Joint Venture becomes obliged to make future payments in respect of the purchase of these goods and services. (m) Interest-bearing Loans All borrowings are initially recognised at fair value. After initial recognition, interest-bearing loans are subsequently measured at amortised cost. Borrowing costs are recognised as an expense when incurred, except for borrowing costs that are directly attributable to the construction of inventories, which are capitalised.




8

1. Summary of Significant Accounting Policies (continued) (n) Contributed Equity Under the Joint Venture Agreement each Joint Venturer’s Capital Account was credited with an equal share of the value of the land. Further contributions to venture capital shall be credited and withdrawals from and other debits in respect of each Joint Venturer’s capital contributions shall be debited. It is the basic intention of the Joint Venturers that their respective Capital Accounts shall be in balance at all times. To the extent that imbalances may arise from time to time, such imbalances shall be adjusted by capital contributions or withdrawals (as may be appropriate). During any period of imbalance the Joint Venturer in credit shall have its Capital Account credited with interest on the quantum of the imbalance at the prescribed interest rate calculated on daily balances and credited at the end of the month and the other Joint Venturer’s Capital Account shall be debited with a like sum. (o) Financial Instruments Non-derivative financial instruments Financial instruments comprise of trade and other receivables, cash and cash equivalents, interest-bearing loans and trade and other payables. Financial instruments are recognised initially at fair value plus any directly attributable transactions costs. Subsequent to initial recognition financial instruments are measured at amortised cost. A financial instrument is recognised if the Joint Venture becomes a party to the contractual provisions of the instrument. Financial assets are derecognised if the Joint Venture’s contractual rights to the cash flows from the financial assets expire, or if the Joint Venture transfers the financial asset to another party without retaining control or substantially all risks and rewards of the asset. Financial liabilities are derecognised if the Joint Venture’s obligations specified in the contract expire or are discharged or cancelled. Cash and cash equivalents comprise cash balances. Accounting for finance income is discussed in Note 1(e). (p) New Standards and Interpretations not yet adopted The following standards, amendments to standards and interpretations have been identified as those which may impact the entity in the period of initial application. They are available for early adoption at 30 June 2011, but have not been applied in preparing these financial statements: AASB 9 Financial Instruments includes requirements for the classification and measurement of financial assets resulting from the first part of Phase 1 of the project to replace AASB 139 Financial Instruments: Recognition and Measurement. AASB 9 will become mandatory for the financial statements of the Joint Venture for the financial year ending 30 June 2014. Retrospective application is generally required, although there are exceptions, particularly if the Joint Venture adopts the standard for the financial year ended 30 June 2012 or earlier. It is the Joint Venture’s view that the impact will be immaterial on the financial statements. AASB 124 Related Party Disclosures (revised December 2009) simplifies and clarifies the intended meaning of the definition of a related party and provides a partial exemption from the disclosure requirements for government-related entity. The standard will become mandatory for the Joint Venture’s 30 June 2012 financial statements. It is the Joint Venture’s view that the impact will be immaterial on the financial statements.




9

1. Summary of Significant Accounting Policies (continued) (q) Correction of Errors A detailed review of the Joint Venture’s development costs was undertaken. This review identified a number of items that had been expensed in prior years that should have been capitalised into inventories, as well as items that were capitalised into inventories that should have been expensed. Most notably, all borrowing costs had been expensed in prior years when they should have been capitalised into inventories as they are directly attributable to the construction of a qualifying asset. It also became apparent that the Joint Venture had recognised too much rates expense in prior years. These errors have been corrected by restating each of the affected financial statement line items for the prior periods as follows: Previously

Reported Increase /

(Decrease)

Restated 2010 2010 $ $ $ Statement of financial position (extract) Trade and other receivables 57,319 228,428 285,747 Inventories (current) 481,984 (481,984) - Prepayments 219,107 (219,107) - Inventories (non-current) 34,404,759 2,071,365 36,476,124 Net assets 23,411,100 1,598,702 25,009,802 Accumulated profits / (losses) (1,588,900) 1,598,702 9,802 Total equity 23,411,100 1,598,702 25,009,802 Previously

Reported Increase /

(Decrease)

Restated 2009 2009 $ $ $ Statement of financial position (extract) Trade and other receivables 2,391,693 155,389 2,547,082 Prepayments 16,375 (16,375) - Inventories (non-current) 32,586,921 587,613 33,174,534 Net assets 24,282,658 726,627 25,009,285 Accumulated profits / (losses) (717,342) 726,627 9,285 Total equity 24,282,658 726,627 25,009,285




10

1. Summary of Significant Accounting Policies (continued) (q) Correction of Errors (continued) Previously

Reported Increase /

(Decrease)

Restated 2010 2010 $ $ $ Statement of comprehensive income (extract) Expenses from operations (136,458) 60,573 (75,885) Administration expenses (36,664) 27,129 (9,535) Finance costs (784,373) 784,373 - Operating (loss) / profit / (871,558) 872,075 517 Previously

Reported Increase /

(Decrease)

Restated 2010 2010 $ $ $ Statement of cash flows (extract) Payments to suppliers (165,990) 14,634 (151,356) Purchase of inventories (2,461,666) (14,634) (2,476,300) Net cash (outflows) from operating activities (3,440,568) - (3,440,568) 2. Financial Risk Management Objectives and Policies The Joint Venture’s principal financial instruments comprise trade and other receivables, trade and other payables, interest-bearing loans and cash and cash equivalents. The Joint Venture Management Committee manages its exposure to key financial risks, including interest rates in accordance with the Joint Venture Agreement and Joint Venture Annual Business Plan. The Joint Venture manages its finance costs using a mix of fixed and variable rate debt. The Joint Venture has not entered into derivative transactions. The main risks arising from the Joint Venture's financial instruments are: Interest rate risk The risk associated with movements in interest rates which cause financial assets and liabilities to increase or decrease in value. Credit risk The risk of potential default of counter parties resulting in reduced recoverability of financial assets. Liquidity risk The risk that the Joint Venture will not meet its obligations due to a shortage of liquid assets or inability to raise funds. The Joint Venture uses different methods to measure and manage different types of risks to which it is exposed. The Joint Venture reviews and agrees policies for managing each of these risks. Primary responsibility for identification and control of financial risks rests with the Joint Venture Management Committee. The Committee reviews and agrees policies for managing each of the risks identified below, including the setting of limits for interest rate risk, credit allowances, and future cash flow forecast projections.




11

2. Financial Risk Management Objectives and Policies (continued) Risk Exposures and Responses Interest rate risk The Joint Venture’s exposure to market interest rates relates primarily to the Joint Venture's debt obligations. The level of debt is disclosed in Note 11. The Joint Venture regularly analyses its interest rate exposure. Within this analysis consideration is given to potential renewals of existing positions, alternative financing, alternative hedging positions and the mix of fixed and variable interest rates.

Credit risk Credit risk arises from the financial assets of the Joint Venture, which comprise cash and cash equivalents, trade and other receivables. The Joint Venture's exposure to credit risk arises from potential default of the counter party, with a maximum exposure equal to the carrying amount of these instruments. Exposure at balance date is addressed in each applicable note. The Joint Venture does not hold any credit derivatives to offset its credit exposure. The Joint Venture is currently trading with related parties, being Hindmarsh Property Pty Ltd, Ezipark Pty Ltd, Avoca Residential Development Pty Ltd, Hindmarsh Funds Management Pty Ltd and Hindmarsh Corporate Pty Ltd and as such collateral is not requested. Receivable balances are monitored on an ongoing basis with the result that the Joint Venture's exposure to bad debts is not significant. There is no significant exposure of credit risk within the Joint Venture. Liquidity risk The Joint Venture's objective is to maintain a balance between continuity of funding and flexibility through the use of bank loans and committed available credit lines. Liquidity risk is monitored through the development of future cash flow forecasts. The Joint Venture has secured debt funding totalling $49.9 million of which $18.5 million is still available for draw down as at 30 June 2011. $24.0 million is due and payable not earlier than 31 March 2012 at which time it is expected that the Avoca development will be completed and the sales proceeds of the development will be available for repaying the debt. $19.4 million is due and payable in December 2012 at which time the funds will be repaid or the bill facility will be renegotiated (refer Note 11). The Joint Venture has an overdraft facility limit of $400,000 and is also able to call on funds as loans from Woden East Pty Ltd and the Land Development Agency to overcome short-term liquidity issues. 3. Segment Reporting The Joint Venture operates in one business segment being the provision of development services. The Joint Venture is located in Canberra, Australia only. 2011

$ 2010

$ 4. Revenue Car parking income 118,013 73,230 Bank interest received 26,778 12,707 144,791 85,937




12

2011

$ 2010

$ 5. Expenses Expenses from operations: Holding costs 35,109 28,739 Car parking fees 28,861 29,812 Marketing costs 17,250 12,766 Depreciation 4,568 4,568 85,788 75,885

Administration expenses: Accounting and tax - 2,010 Audit fees 9,249 7,525 9,249 9,535

6. Cash and Cash Equivalents Cash at bank 1,639,305 2,414,840 1,639,305 2,414,840

The Joint Venture’s exposure to interest rate risk and a sensitivity analysis for financial assets and liabilities are disclosed in Note 12.

7. Trade and Other Receivables Receivable from Joint Venture Members Land Development Agency - 18,757 Woden East Pty Ltd - 18,757 Total Receivable from Joint Venture Members - 37,514 Related party receivable 27,323 19,805 Receivable from ACT Revenue Office - 228,428 GST receivable 252,731 - 280,054 285,747

8. Inventories Current 22,762,428 - Non-Current 34,510,238 36,476,124 57,272,666 36,476,124

Inventories include the cost of the land made available to the Joint Venture by the Land Development Agency and the expenditure on design of the estate and construction of infrastructure.




13

2011

$ 2010

$ 8. Inventories (continued) The amount of borrowing costs capitalised into inventories during the year ended 30 June 2011 was $2,398,747 (2010: $987,135).

9. Property, Plant and Equipment Reconciliation of carrying amounts at the beginning and the end of the reporting period

Balance at the beginning of the reporting period 12,615 17,183 Depreciation (4,568) (4,568) Balance at the end of the reporting period 8,047 12,615

Cost 22,840 22,840 Accumulated depreciation (14,793) (10,225) 8,047 12,615

10. Trade and Other Payables Trade creditors 261,449 268,309 Accruals 2,362,960 387,561 Sales deposits 87,500 -

2,711,909 655,870

Less than 30 days: $261,449 (2010: $268,309) 11. Interest-bearing Loans CURRENT St George Bank – Floating commercial bill – 4.79% - 13,523,654 Loan from related party 8,328,607 - 8,328,607 13,523,654

NON-CURRENT Commonwealth Bank of Australia – Floating commercial bill – 4.89% 16,600,000 - Loan from related party 6,500,000 - 23,100,000 -

The Commonwealth Bank of Australia commercial bill is due and payable 26 months after the initial drawdown date of 27 October 2010. The term ends 27 December 2012. As the project is ongoing, the loan will be repaid or re-negotiated at the end of the term.




14

2011

$ 2010

$ 11. Interest-bearing Loans (continued) $8,328,607 of the loan from a related party is due and payable not earlier than 31 March 2012, at which time it is expected to be repaid using sales proceeds from the Avoca development. The balance of $6,500,000 is due and payable on 27 December 2012. It is anticipated that this loan will be repaid on or before this date using sales proceeds from the Avoca development. The interest rate was 4.86% plus an additional 1.10% usage fee as at 30 June 2011.

Assets pledged as security The carrying amount of assets pledged as security for current and non-current interest-bearing liabilities are:

Current First mortgage Leasehold land 25,000,000 25,000,000 25,000,000 25,000,000

12. Financial Instruments Details regarding credit risk, liquidity risk and interest rate risk are disclosed in Note 2: Financial Risk Management Objectives and Policies. (a) Credit Risk The carrying amount of the Joint Venture’s financial assets represents the maximum credit exposure. The Joint Venture’s maximum exposure to credit risk at the reporting date was: 2011

$ 2010

$ Cash and cash equivalents 1,639,305 2,414,840 Trade and other receivables 280,054 285,747 1,919,359 2,700,587

The Joint Venture’s maximum exposure to credit risk for trade receivables at reporting date was all located within Australia. The Joint Venture believes no impairment allowance is necessary in respect of trade and other receivables not past due date. The aging of the Joint Venture’s trade and other receivables at the reporting date was:

Less than 30 days 280,054 285,747 30-60 days - - Greater than 60 days - - 280,054 285,747




15

12. Financial Instruments (continued) (b) Liquidity Risk The table below reflects an analysis of the contractual maturities of the Joint Venture’s financial liabilities as at 30 June 2011, representing cash flows if the loan is paid out at maturity. Carrying

amount $

Contractual cash flows

$

6 months or less

$

6 to 12 months

$

12 months or more

$ 2011 Commercial bill (secured) 16,600,000 (16,600,000) - - (16,600,000)Loan from related party 14,828,607 (14,828,607) - (8,328,607) (6,500,000)Trade and other payables (unsecured)

2,624,409

(2,624,409)

(2,624,409)

-

-

34,053,016 (34,053,016) (2,624,409) (8,328,607) (23,100,000)

2010 Commercial bill (secured) 13,523,654 (13,523,654) (13,523,654) - - Loan from related party - - - - - Trade and other payables (unsecured)

655,870

(655,870)

(655,870)

-

-

14,179,524 (14,179,524) (14,179,524) - -

(c) Interest Rate Risk Profile At the reporting date the interest rate profile of the Joint Venture’s interest-bearing financial instruments was: 2011

$ 2010

$ Variable rate instruments Cash at bank 1,639,305 2,414,840 Commercial bills (secured) 16,600,000 13,523,654 Loan from related party 14,828,607 - Cash flow sensitivity analysis for variable rate instruments A change of 100 basis points in interest rates at the reporting date would have increased / (decreased) equity and profit or loss by the amounts shown below. This analysis assumes that all other variables remain constant. Profit or loss Equity Carrying

amount $

100bp Increase

$

100bp Decrease

$

100bp Increase

$

100bp Decrease

$ 2011 Cash at bank 1,639,305 16,393 (16,393) 16,393 (16,393) Commercial bill (secured) 16,600,000 (166,000) 166,000 (166,000) 166,000 Loan from related party 14,828,607 (148,286) 148,286 (148,286) 148,286 (297,893) 297,893 (297,893) 297,893




16

12. Financial Instruments (continued) Profit or loss Equity Carrying

amount $

100bp Increase

$

100bp Decrease

$

100bp Increase

$

100bp Decrease

$ 2010 Cash at bank 2,414,840 24,148 (24,148) 24,148 (24,148)Commercial bill (secured) (13,523,654) (135,237) 135,237 (135,237) 135,237 Loan from related party - - - - - (111,089) 111,089 (111,089) 111,089

Fair values Fair values versus carrying amounts The fair value of cash at bank, trade and other receivables, trade and other payables and borrowings approximates the values shown in the statement of financial position and notes thereto.

2011 $

2010 $

13. Capital Accounts Capital account - Land Development Agency Balance at the beginning of the reporting period 12,500,000 12,500,000 Capital contribution - - Balance at the end of the reporting period 12,500,000 12,500,000 Capital account - Woden East Pty Ltd Balance at the beginning of the reporting period 12,500,000 12,500,000 Capital contribution - - Balance at the end of the reporting period 12,500,000 12,500,000 25,000,000 25,000,000

14. Reconciliation of Accumulated Profits Accumulated profits at the beginning of the reporting period 9,802 9,285 Operating profit attributable to members of the Woden East Joint Venture 49,754 517 Accumulated profits at the end of the reporting period 59,556 9,802




17

2011

$ 2010

$ 15. Reconciliation of the Operating Profit to Net Cash (Outflows)

from Operating Activities

Operating profit attributable to members of the Woden East Joint Venture 49,754 517

Adjust for Depreciation expense 4,568 4,568 Changes in assets and liabilities Decrease in trade and other receivables 5,693 2,261,335 (Increase) in inventories (20,796,542) (3,301,590) Increase / (decrease) in trade and other payables 2,056,039 (2,405,398) Net cash (outflows) from operating activities (18,680,488) (3,440,568)

16. Related Party Transactions The members of the Joint Venture are: Land Development Agency 50% Woden East Pty Ltd 50%

Woden East Pty Ltd is wholly owned by Hallmark Management Pty Ltd and Land Development Agency is a Territory Authority of the Australian Capital Territory.

Hindmarsh Property Pty Ltd, an entity related to Woden East Pty Ltd, acts as the Development Manager as per the Development Management Agreement. Development Management fees are 2% of the total sales revenue. Until sales revenue is determined, a monthly fee is paid which is set by the Joint Venture Management Committee.

797,760 797,760

Ezipark Pty Ltd, an entity related to Woden East Pty Ltd, provided car parking management and collection services to the Joint Venture as per the Car-parking Management Agreement. The Joint Venture receives net car-parking income after deduction by Ezipark Pty Ltd of management fees and operating expenses. Ezipark Pty Ltd receives management fees. The gross income collected by Ezipark on behalf of the Joint Venture for the financial year ended 30 June 2011 amounted to $118,013 (2010: $73,230). The net income received by the Joint Venture after deducting management fees of $12,000 (2010: $12,000) and operating expenses of $16,861 (2010: $17,812) was $89,152 (2010: $43,418).

89,152 43,418

Avoca Residential Development Pty Ltd, an entity related to Woden East Pty Ltd, has been appointed by the Joint Venture to facilitate the provision of finance, construction management and sales for the Avoca residential development. Interest is payable at a floating rate equivalent to the rate of Avoca Residential Development Pty Ltd’s floating commercial bill with the Commonwealth Bank of Australia. The interest rate was 4.86% plus an additional 1.10% usage fee as at 30 June 2011.

16,597,396 362,103




18

2011

$ 2010

$ 16. Related Party Transactions (continued) Hindmarsh Funds Management Pty Ltd, an entity related to Woden East Pty Ltd, provides funding advice and funds management services. Capital management fees are 1% of the total financing facility limit negotiated.

430,800 28,500

Hindmarsh Corporate Pty Ltd, an entity related to Woden East Pty Ltd, has been authorised to provide community consultation services.

21,500 13,636

Payable to Avoca Residential Development Pty Ltd 1,979,870 362,103 Loan from Avoca Residential Development Pty Ltd 14,828,607 - Receivable owing from Woden East Pty Ltd - 18,757 Receivable owing from Land Development Agency - 18,757 Receivable owing from Ezipark Pty Ltd 15,536 8,018 All transactions with related parties are at arms length. The members of the Joint Venture Management Committee during 2011 were: Matthew Kelly (to 6 June 2011) (Land Development Agency) John Robertson (Land Development Agency) John Hindmarsh (to 17 May 2011) (Woden East Pty Ltd) Darren Dougan (Woden East Pty Ltd) Brett Smith (Secretary) (Hindmarsh Property Pty Ltd) Chris Reynolds (from 28 April 2011) (Land Development Agency) Members of the Joint Venture Management Committee received no remuneration for their services. 17. Subsequent Events Since the end of the financial year, there has not arisen any event, item or transaction of a material and unusual nature likely, in the opinion of the Management Committee, to affect significantly the operations of the Joint Venture. 18. Contingent Liabilities As at 30 June 2011 there are no known contingent liabilities.




19

2011 $

2010 $

19. Auditors Remuneration Auditor’s remuneration consists of financial audit services provided to the Woden East Joint Venture by the ACT Auditor-General’s Office to conduct the financial audit

Audit services: Audit fees paid or payable to the ACT Auditor-General’s Office 9,529 7,525

The ACT Auditor-General’s Office did not provide any other services. 20. Commitments Capital commitments Capital expenditure contracted for at the reporting date but not recognised as a liability as follows:

Construction 22,314,157 38,137,897 Management fees 797,760 797,760 Consultants - 249,069 Road works – Easty Street 2,285,879 - Total commitments 25,397,796 39,184,726

The capital commitment for construction reflects the Gross Maximum Price contract executed between Hindmarsh Construction Australia Pty Ltd and Avoca Residential Developments Pty Ltd (on behalf of the Joint Venture), which was approved by the Joint Venture Management Committee on 17 June 2010.



a7. sTaTeMenT of PerforMance

StAteMent of ReSponSIBIlIty



fInAnCIAl peRfoRMAnCe MeASuReMentS AnAlySIS 2010-11

financial performance Measures

target2010-11

Actual2010-11

Variance*explanation of Material Variance

profitability

profit (before tax)

profit (after tax)

dividend

$77m

$54m

$54m

$53m

$37m

$37m

(31%)

(31%)

(31%)

the lower than anticipated profit and dividend was the result of the following:

• the sale of a significant englobo site was deferred due to a delay in the receipt of clearance from all relevant authorities.

• Sales from one of the new Lda estates was delayed due to the impact of adverse weather.

Return on assets1

Return on equity2

22.7%

60.8%

16.1%

41.6%

(29%)

(32%)

the lower than expected return on assets and equity was due to the lower than budgeted operating profit before tax explained above.

gross profit margin on Land Sales3

25.7% 24.8% (4%)

liquidity

current Ratio4 1.9 1.9 - Whilst there was no variance in the ratio, both current liabilities and current assets decreased.

acid test Ratio5 0.6 1.3 117% the better than expected ratio was primarily due to reduced inventories due to lower than budgeted development expenditure resulting from the impact of adverse weather.

cash Flow Indicator6

(0.5) 0.1 120% cash flows from operating activities were higher than budget mainly due to lower than budgeted development expenditure resulting from the impact of adverse weather.



financial performance Measures

target2010-11

Actual2010-11

Variance*explanation of Material Variance

financial Stability

equity Ratio7 36.0% 41.2% 14% the variance was due to a slightly lower asset base as a result of lower than estimated inventories offset by higher receivable. the underlying causes of these variances are explained above.

debt to equity Ratio8

31.7% nil (100%) the actual result was ‘nil’ as no borrowings were required during 2010–11 as a result of higher than budgeted net cash flows from operating activities.

Interest coverage9 53.1 5,854 10883% the interest coverage variance was favourable due to no borrowings being required during 2010–11.

*negative figures in brackets

noteS

1. Return on assets - (operating result before tax+ interest expense) / average total assets for

period

2. Return on equity - operating result before tax / equity

3. gross profit margin -(land settlements – cost of goods sold) / land settlements

4. current Ratio - current assets / current liabilities

5. acid test Ratio - (current assets –current inventory) / current liabilities

6. cash Flow Indicator - cash flow from operating activities / current liabilities

7. equity Ratio - total funds employed / total assets

8. debt to equity Ratio - total borrowing / total funds employed

9. Interest coverage - (operating result before tax + interest expense) / interest expense

non-fInAnCIAl peRfoRMAnCe MeASuReS foR yeAR enDeD 30 June 2011

DeSCRIptIon of non-fInAnCIAl peRfoRMAnCe

the Lda’s performance is measured by assessing the level of achievement against the targets

for the release of residential, commercial and industrial land specified in tables 1, 2, 3 and 4 at

attachment 2 of the 2010-11 SoI.



original target

2010-11 (Dwellings)

Actual Result

2010-11 (Dwellings)

Variance %

notes

table 1 Residential land Release program (type)

Englobo/Private Sector:

aged care units

Block 17 Section 15 phillip

Block 18 Section 15 phillip

Block 45 Section 100 narrabundah

Block 5 Section 91 Bruce

ngunnawal 2c

casey 4

Total Englobo

100

120

120

150

150

475

500

1,615

120

-

-

-

224

475

500

1,319

20%

(100%)

(100%)

(100%)

49%

-

-

(18%)

1

2

2

3

1

Joint Ventures:

Forde (including Forde 2)

crace

Woden east

Total Joint Venture

250

250

100

600

300

338

-

638

20%

35%

(100%)

6%

4

4

5

LDA Estates:

Site 13 g Kingston Foreshore (now known as Site 13 c Kingston Foreshore)

Site 13 H Kingston Foreshore (now known as Site 13 a Kingston Foreshore)

Site 13 I Kingston Foreshore (now known as Site 13 B Kingston Foreshore)

Site 14 Kingston Foreshore

oaks estate

Bonner 1a

Bonner 3

Bonner 4

Harrison 4

Flemington Road

Wright

coombs

Lawson

Site 20 Kingston Foreshore*

Bonner 1b*

Bonner 2*

164

66

70

60

10

20

531

352

419

230

413

400

50

-

-

-

161

65

72

-

-

20

289

252

416

306

832

-

-

123

10

89

(2%)

(1%)

3%

(100%)

(100%)

-

(46%)

(28%)

(1%)

33%

101%

(100%)

(100%)

100%

100%

100%

6

7

8

9

10

10

11

11

12

12

12



original target

2010-11 (Dwellings)

Actual Result

2010-11 (Dwellings)

Variance %

notes

Franklin*

Block 14 Section 22 Barton*

Block 1 Section 199 Belconnen*

Block 15 Section 30 Forrest*

Watson (d/S)*

Block 45 Section 7 page*

Total LDA Estates

-

-

-

-

-

-

2,785

1

50

240

70

78

12

3,091

100%

100%

100%

100%

100%

100%

11%

12

13

1

13

14

13

Total Residential Releases 5,000 5,048 1%

For the englobo releases land is considered to be ‘released’ when the land has been offered to the

market, irrespective of whether it has actually sold.

englobo releases are counted as released using the following measures:

• auction, land is considered released the day of the auction;

• direct sale land is considered released when an offer of land has been offered to an eligible applicant, and

• a tender/expression of interest, land is considered released when the tender documents

have been made publically available.

For the Joint venture releases land is considered to be ‘released’ when the land has been offered

to the market, irrespective of whether it has actually sold.

Joint venture releases are counted as released using the following measures:

• ballot, land is considered released the day of the ballot;

• over the counter sales, land is considered released the day the site is available for

purchase over the counter.

For the Lda estate releases land is considered to be ‘released’ when the land has been offered to

the market, irrespective of whether it has actually sold.

Lda estate releases are counted as released using the following measures:


• ballot, land is considered released the day of the ballot;

• direct sale land is considered released when an offer of land has been offered to an

eligible applicant, and

• a tender/expression of Interest, land is considered released when the tender documents




If a site is ‘released’ and not purchased it will be counted as achieving the land release target

for that year. unsold sites will not be considered to be re-released if they are sold in subsequent

years.

* the releases marked with an asterisk were added to the Land Release program after the

Statement of Intent was finalised and have been included to facilitate a comparison against the

target for the Residential program as a whole and the total for each type of release.

the above Statement of performance should be read in conjunction with the accompanying

notes.

explanation of Material Variances

1. the increase in yield was the result of additional planning work on the sites which identified

a greater potential yield.

2. these sites were withdrawn from the 2010/11 release program to allow for comprehensive

community consultation.

3. this site was identified for the former department of Land and property Services as special

project and withdrawn from the program.

4. Releases from the Forde and crace Joint ventures were increased at the request of the Lda

to replace the shortfall from other sites.

5. the Woden green release was delayed due to financial constraints impacting on the Joint

venture.

6. this block cannot be released until current licence holder is relocated.

7. this site was withdrawn from the program pending the outcome of an act planning and

Land authority planning study.

8. Fewer blocks were available for sale in this stage in 2010/11 as they were brought forward

and released in the 2009/10 program.

9. the yield from this stage was reduced due to the presence of golden Sun moths on the site.

10. the release numbers were increased to replace the shortfall from other sites.

11. these sites were deferred to 2011/12 as environmental clearances were not received.

12. these blocks were released to replace the shortfall from other sites, noting they had not

been released as part of the 2009-10 program.

13. these sites were added to the program as a result of demand from the market.

14. this site was released by direct Sale noting that because of the uncertainty in the timing of

direct sales, it was not included in the original program.



original target

2010-11 (Dwellings)

Actual Result

2010-11 (Dwellings)

Variance %

notes

table 2 Residential land Release program (District)

gungahlin

Belconnen

central canberra

molonglo

Woden and Weston

other

Total Residential Releases

3,027

200

510

813

340

110

5,000

2,996

476

546

832

-

198

5,048

(1%)

138%

7%

2%

(100%)

80%

1%

1

2

3

In table 2 land is considered to be ‘released’ when the land has been offered to the market,

irrespective of whether it has actually sold.

Residential releases are counted as released using the following measures:


• ballot by Lda or a joint venture partner, land is considered released the day of the ballot;

• over the counter sales by Lda or a joint venture partner, land is considered released the

day the site is available for purchase over the counter;

• direct sale land is considered released when an offer of land has been offered to an

eligible applicant, and





years.


notes.


1. this higher than budgeted release was mainly the result of an increase in dwelling yield at

Section 91 Bruce and Section 199 Belconnen partially offset by a decrease in Lawson due to

environmental clearances not being received.

2. See table 1 above – notes 2 & 5.

3. this increase is predominately due to the addition of a direct sale in Watson.



original target

2010-11 (Dwellings)

Actual Result

2010-11 (Dwellings)

Variance %

notes

table 3 Commercial land Release program (District)

gungahlin

Belconnen

central canberra

Woden and Weston

tuggeranong

Total Commercial Releases

21,996

36,394

62,065

19,050

3,431

142,936

78,736

9,206

67,384

12,907

-

168,233

258%

(75%)

9%

(32%)

(100%)

18%

1

2

3

4

For the commercial releases land is considered to be ‘released’ when the land has been offered to


commercial releases are counted as released using the following measures:

• auction, land is considered released the day of the auction,; and





years.


notes.


1. the release of Block 5 Section 39 nicholls and three blocks on Flemington Road that have

a commercial component resulted in a higher total area of commercial land release in

gungahlin than originally planned.

2. the sale of Block 5 Section 91 Bruce to community Housing canberra Limited removed the

commercial component from this site. other sites in the Belconnen district yielded less

commercial space due to the inclusion of a residential component in the leases.

3. the decrease in Woden and Weston districts was due to the removal from the 2010/11

program of sites in phillip to allow more extensive community consultation and further

precinct planning.

4. the lack of a commercial release in tuggeranong was due to the removal from the 2010/11

program of sites in greenway to allow more extensive community consultation and further

precinct planning.



original target

2010-11 (Dwellings)

Actual Result

2010-11 (Dwellings)

Variance %

notes

table 4 Industrial land Release program (District)

Fyshwick

Hume

Total Industrial Releases

45,616

65,000

110,616

75,671

97,795

173,466

66%

50%

57%

1

2

For the Industrial releases land is considered to be ‘released’ when the land has been offered to


Industrial releases are counted as released using the following measures:

• auction, land is considered released the day of the auction, and





years.


notes.


1. the increase in Fyshwick industrial releases was due to blocks from Section 26 Fyshwick that

were not released in 2009-10 being added to the 2010-11 program.

2. the increase in total area released in the Hume district was due to the inclusion of a direct

sale which due to the uncertainty in the timing of direct sales was not included on the

original program.



a8. sTraTeGIc InDIcaTors

Strategic Indicators for the Lda are not reportable as they are not set as part of the Budget

process and do not appear in the Budget papers.



a9. analysIs of aGency PerforMance

the Lda’s major deliverables for 2010-11, as set out in the 2010-11 SoI, are as follows:

2010-11 oBJeCtIVe 1:

Deliver the Government’s agreed Indicative Land Release Programs in the residential,

commercial, industrial and community sectors.

the Lda met and exceeded the land release targets set by the 2010-11 Indicative Land Release

programs by 48 dwellings. as at 30 June 2011, the following had been released:

• sites for 5,048 residential dwellings, compared to the target of sites for 5,000 dwellings,

which was one per cent over the LRp target;

• 158,194m2 of commercial land, compared to the target of 142,936m2;

• 139,566m2 of industrial land, compared to the target of 110,616m2; and

• 48,311m2 of community and non-urban land compared to a target of 48,561m2.


Contribute to the delivery of the ACT Government’s key priorities related to affordable housing,

sustainability and climate change.

Affordable Housing

ownplace

the Lda’s innovative ownplace program continued to build on its successes with numerous

homes being completed and a number of others under construction. as at 30 June 2011,

454 blocks had been made available to builders on the Lda ownplace panel for the construction

of affordable house and land packages under $328,000 (indexed). of these, 216 homes have

been completed, 31 homes were under construction and 157 are due to commence construction

over the next six months with the remaining 50 to be released to the public in october 2011.

the success of the Lda’s ownplace program was demonstrated when the Lda won the pca

national award for government Leadership in June 2010 for its work in developing and

implementing the ownplace program. the program also won a commendation from the udIa

during 2010-11.

land Rent leases

In accordance with the government’s Affordable Housing Action Plan, the Lda provides the



option for purchasers of land in Lda residential estates to take up a Land Rent Lease. this scheme

commenced on 1 July 2008.

as at 30 June 2011:

• 1,327 Land Rent contracts have been entered into (in total, including those that have been

rescinded or converted);

• 1,106 Land Rent contracts have either exchanged or settled;

• 232 settled with a total value of $47,623,263 (gSt excl);

• 874 exchanged with a total value of $223,919,545 (gSt excl);

• 169 have been rescinded; and

• a further 51 Land Rent leases had been converted to a standard lease before settlement.

Housing Affordability fund (HAf)

Building on the success of the Lda’s previous commonwealth Housing affordability Fund

agreements, the agency continued to invest in affordable housing at Bonner, crace and Harrison.

over the life of this collaboration, the Lda will manage $13.2 million from the commonwealth

which will be directly contributed to the provision of affordable housing.

Sustainability and Climate Change

the Lda has continued to incorporate the principles of ecologically sustainable development into

its activities in line with government requirements and the Lda SoI.

the Lda has commenced a process of embedding elements of the ‘LDA Sustainability and

Innovation Framework’ into its key business processes. the framework addresses a range

of elements, including: energy and water; sustainable resource use and waste management;

biodiversity and landscape protection; transport; social and cultural aspects of communities; and

economic viability.

In addition, the Lda’s design Review panel (dRp) also assesses development proposals at various

stages in the planning process to ensure high quality design and outcomes.

Wright and coombs, the first suburbs in molonglo valley, were named as canberra’s first certified

envirodevelopment projects by the udIa in october 2010, and represent the largest such project

in australia.

the Lda is sponsoring a scholarship to undertake a program of phd research at the

australian national university’s (anu) Fenner School of environment and Society. It is a project

researching the social perspectives of nature reserves and developing urban areas.

While the government supports significant research into the ecological aspects of our nature

reserves, little is known about the social aspects of living near nature reserves. this is particularly

important in developing areas that border nature reserves. this research will help to understand

how people value living near reserves, and how their behaviour may impact on these reserves.



this research project will seek lessons from elsewhere to integrate biodiversity conservation,

recreational use, and urban development.

the Lda is also providing funding to the anu for a phd scholarship to research the effectiveness

of nesting boxes including the maintenance and perpetuation of hollow bearing trees in urban

developments. Following discussions with the anu the scope was expanded to include not only

the effectiveness of nesting boxes, but also the wider issue of maintaining and perpetuating

trees and tree hollows in developing areas in the long term, focussing on strategic conservation

outcomes and planning.

this research project could include research into valid offsets, with artificial habitat such as

nesting boxes being included, but as part of a more strategic long term approach.


Provide advice to the Government on the delivery of capital works and infrastructure supporting

the land release program.

the Lda maintains representation on a number of land supply and capital works working groups

coordinated by other agencies. through these working groups, the Lda has provided advice and

risk identification that has supported delivery of critical infrastructure such as Wells Station drive

extension, John gorton drive and the Horse park drive access to Forde.


Provide a commercial return to the Territory on its investment in the Agency.

For the year ended 30 June 2011, the Lda returned a total of $129.5 million to the act

government in the form of payment for raw land, ($76.8 million), tax equivalents ($15.8 million)

and dividends ($36.9 million).

the tax equivalents and dividends represent a return of 41.6 per cent on the government’s total

equity.

as at 30 June 2011, the Lda held $476.2 million (gSt excl) of exchanged contracts, of which

$376.4 million was scheduled to settle in 2011-12.


Continuously improve the LDA’s role as an informed source of advice to the Government and

other agencies on land development related issues.

the Lda Board, audit committee, executive and various land release program committees met

on a regular basis to ensure the accountability of program delivery through a strong governance

approach and to ensure the efficacy of the Lda’s processes and knowledge management. In

addition, internal policies and procedures were reviewed to ensure currency and relevance to

assist in the delivery of the program.



the Lda has a dRp consisting of a group of experts from local and interstate architects, heritage,

environmental and urban planners. the panel critically reviews and helps refine Lda projects.

the Lda chair, ceo and director of Sustainability and Innovation meet and share information

with their equivalents in other gLos on current land development issues and innovation from

across australia.

the Lda is involved with the udIa in the context of envirodevelopment accreditation in

molonglo valley and is also working with the green Building council of australia on the green

Star - communities tool along with other gLos and major developers.

the Lda is actively involved in a range of interdepartmental and consultative committees

reviewing such topical issues as climate change, urban design, nature conservation, water,

transport and heritage.

Lda staff at all levels actively participate in various industry conferences and forums as

participants and contributors.


Deliver high quality urban development.

the Lda has continued to build on its reputation of delivering high quality and innovative

projects across the act. examples of this include the ownplace program that received the pca

national award for ‘excellence in government leadership’ in June 2010 and the successful udIa

envirodevelopment certification of the Wright and coombs estates.

the Lda’s joint venture at Forde continues to demonstrate high quality amenity and public

domain landscaping. at crace, the careful planning and rollout of high quality housing is

producing a vibrant and evolving community.

Judges from the pca visited Bonner as part of the assessment process for this year’s national

awards. Subsequently Bonner was named as a finalist in the Best master planned community

category.

the Lda also demonstrates its approach to high quality urban development in its work on infill

development opportunities such as Woden town centre, canberra Brickworks and emerging

centres such as amaroo.


Support the continuing development of town centres.

Woden town Centre

the Lda commenced the preparation of a development/revitalisation strategy to implement

the Woden town centre master plan for the western side of the town centre. the development

strategy provides for 2,500 to 3,000 dwellings on land currently used as surface carparks. the



development strategy provides for a new central park, sites for community buildings, residential

development and provision for retail and office space, whilst maintaining publicly available

parking in the precinct.

as a catalyst project, the Lda has prepared a development application (da) for 600 dwellings on

Section 9 phillip.

Belconnen town Centre

the Lda released a 2,988m2 site (in Service trades area - Block 3 Section 3) for mixed

development and Block 1 Section 199 (adjacent to the Belconnen bus station) for mixed use

development including up to 240 dwellings, retail and commercial development.

Gungahlin town Centre

the Lda released approximately 3,000m2 of land (Block 6 Section 2 and Block 1 Section 225) for

mixed use development.

tuggeranong town Centre

the Lda has begun preparation of a master plan for Sections 57, 58, 59, 65 and 66 greenway

(a large vacant lakeside site opposite Bunnings) to provide for up to 1,000 new dwellings and a

vibrant new waterfront precinct for the tuggeranong community. the Lda will undertake public

realm works and release sites from 2012-13 to 2014-15.


Strengthen relationships with stakeholders, including ACT Government agencies, developers,

builders, industry associations and the Canberra and regional community.

the Lda has undertaken extensive engagement with stakeholders including community councils

environmental and industry assistance and local residents on a wide range of urban development

projects including:

Canberra Brickworks and environs planning Strategy

establishment of a project Reference group (pRg) including yarralumla Residents association,

australian Institute of architects, australian Institute of Landscape architects, planning Institute

of australia, national trust, Walter Burley griffin Society, national Heart Foundation, Royal

canberra golf course, act Heritage council and yarralumla uniting church. Seven pRg meetings

and five community workshops/information sessions were held to develop a preferred planning

strategy for the Brickworks and environs. an act government agency Steering committee was

also established to ensure Whole of government support of the strategy.

Woden town Centre – phillip Section 9

a community and stakeholder engagement process was undertaken to progress a da for a high

density mixed use development on an existing carpark. a series of presentations and workshops



were undertaken to obtain support for the proposal from the Woden valley community council,

residents and government agencies prior to submitting a da.

Greenway Sections 57, 58, 59, 65 and 66 Master plan

a community and stakeholder engagement process with tuggeranong community council and

Business tuggeranong was undertaken to guide the master plan proposals. the Lda’s proposals

for the precinct have received strong public support.

Campbell Section 5

a community and stakeholder engagement process commenced to guide master plan proposals

for a major site fronting constitution avenue. Stakeholders include campbell and Reid residents,

national capital authority (nca), australian War memorial, RSL, St Johns anglican church Reid,

campbell local traders and local schools.

Community Development program - Mingle

the mingle program is designed to build vibrant communities through a range of events such

as new resident programs, family fun days, walking groups and more. It commenced in the

Lda’s suburb of Franklin in early 2009. the Lda has conducted numerous surveys and arranged

community events to monitor resident satisfaction and to date the large majority of responses

have been positive. there is an increase in the number of residents who are seeking to be

involved in the activities and also an increase in the number seeking to be on the Franklin mingle

database. a series of events and activities were held during 2010-11 including a family easter egg

hunt, mix ‘n’ mingle events such as coffee and muffin day and Family and community day. the

Lda also organised a BBQ for residents who participated in clean up australia day in Franklin.

the mingle program was launched for Bonner residents on 1 april 2011. a database of Bonner

residents interested in participating in mingle activities is being developed for future events in

2011 and 2012.

the Lda’s mingle program is also planned to be put in place for Wright and coombs, in molonglo

valley. Research will be conducted in 2011-12 to inform the strategies for coombs and Wright.

the program details for each suburb will be varied to suit the demographics, resident feedback

and proximity to surrounding services.

a highlight for mingle in 2010-11 was a mural by indigenous artist, duncan Smith, prepared with

the help of students from amaroo School which was unveiled at the Bonner Living Showcase in

Bonner on 25 February 2011.


Develop the LDA’s capability and the expertise of staff to enable the delivery of the LDA’s

objectives.

the capability and expertise of many individual staff and the organisation as a whole continued

to increase over the course of the year. In addition to enhanced expertise gained in the course of



individual projects Lda staff accessed a range of in-house programs, Shared Services (SS) training

calendar programs and various external specialist programs to build, retain and enhance skills

and knowledge within the Lda. the staff also actively participate in industry conferences and

forums as participants and contributors. during 2010-11, the Lda conducted an all staff skills

and training survey to inform future training and skills programs.



a10. TrIPle boTToM lIne rePorT

Indicator2009-10 Result*

2010-11 Result

% Change

eco

no

mIc

employee expenses

• number of staff employed (head

count)

• total employee expenditure (,000)

84

$10,494

102

$10,226

21% higher

3% lower

operating Statement

• total expenditure (,000)

• total own source revenue (,000)

• total net cost of services (,000)

$225,054

$318,368

n/a

$187,546

$218,295

n/a

17% lower

31% lower

n/a

economic Viability

• total assets (,000)

• total liabilities (,000)

$346,188

$220,123

$306,817

$180,315

11% lower

18% lower

env

IRo

nm

enta

L

transport

• total number of fleet vehicles

• total transport fuel used (kilolitres)

• total direct greenhouse emissions

of the fleet (tonnes of co2e)

6

11.8

31.67

5

10.8

29.99

14% lower

8% lower

5% lower

energy use

• total office energy use (megajoules)

• office energy use per Fte

(megajoules/Fte)

• office energy use per square

metre(megajoules/m2)

2,372,104

29,614

1083

2,371,570

24,437

1083

0.02% lower

17% lower

no change

Greenhouse emissions

• total office greenhouse emissions -

direct and indirect (tonnes of co2e)

• total office greenhouse emissions

per Fte (tonnes of co2e/Fte)

• total office greenhouse emissions

per square metre (tonnes of co2e/

m2)

415.04

5.18

0.19

446.26

4.60

0.20

8% higher

11% lower

8% higher



Indicator2009-10 Result*

2010-11 Result

% Change

env

IRo

nm

enta

L

Water Consumption

• total water use (kilolitres)

• office water use per Fte (kilolitres/

Fte)

• office water use per square metre

(kilolitres/m2)

947

11.82

0.43

1092

11.25

0.50

15% higher

5% lower

15% higher

Resource efficiency and Waste

• estimate of co-mingled office

waste per Fte (litres)

• estimate of paper recycled (litres)

• estimate of paper used (by reams)

per Fte

557

119,760

29.65

495

111,360

26.16

11% lower

7% lower

12% lower

Soc

IaL

the Diversity of our Workforce

• Women (Female Ftes as a

percentage of the total workforce)

• people with a disability (as a

percentage of the total workforce)

• aboriginal and torres Strait Islander

people (as a percentage of the total

workforce)

• Staff with english as a second

language (as a percentage of the

total workforce)

55%

1.2%

1.2%

6.0%

54%

3.9%

2.0%

7.8%

1% lower

2.7% higher

0.8% higher

1.8% higher

Staff Health and Wellbeing

• oH&S Incident Reports

• accepted claims for compensation

(as at 31 august 2011)

• Staff receiving influenza

vaccinations

• Workstation assessments

requested

9

3

41

13

4

0

47

11

55% decrease

100% decrease

14% increase

15% decrease

* Revised data for 2009-10 has been included to reflect new reporting methods which have

resulted in greater data accuracy. as such the revised 2009-10 figures can be used to draw more

accurate comparisons in Resource consumption between 2009-10 and 2010-11.



the figures provided in the 2009-10 annual Report should not be used for comparison for the

following reasons:

• data sets are not the same - reported 2009-10 figures were not based on a complete data

set;

• breakdown between office and other electricity uses was not reflective of actual building

use; and

• accuracy has improved this year.

online System for comprehensive activity Report (oScaR) is used to gather and report on all

internal energy, water and greenhouse gas consumption as mandated by the act government.


consultation and Scrutiny Reporting

SectIon B


SectIon B consultation and Scrutiny Reporting

b1. coMMUnITy consUlTaTIon anD enGaGeMenT

the Lda applies a community engagement Framework in consulting the act community on its

projects. the framework is based on the citizen centred governance model published on the

chief minister and cabinet directorate website at www.cmd.act.gov.au

this governance model incorporates the desired community perspective and levels of

engagement into government systems and processes. It covers three main elements of

government activity:

• priority and direction setting,

• service frameworks and delivery, and

• accountability.

there are several stages to community consultation and depending upon the level of

consultation being undertaken by the government, the first level is ‘informing’. this involves the

notification by government of a proposed release of land for sale.

the second level of consultation is ‘seeking information’ which provides the community with the

opportunity to comment on the proposal and receive feedback.

the third level of consultation is called ‘involving’ and describes the activity where the

community is invited by the government to participate in hands-on activities such as workshops

and meetings.

the final level of consultation is called ‘partnerships’. this is where the government establishes

a partnership with the community as a method of providing a recognised agreement with the

community to be involved directly in the decision making process.

It should be noted that the level of consultation for most land releases will commence with the

informing step. then depending upon the response to the first level, the consultation process

may proceed to the next level. not all land releases will require more than one or two of the

lower level consultation processes as some releases are the result of a direct request by the

community e.g. childcare facilities.

this will not be the case when dealing with proposals which are deemed to be high profile

and have significant public interest. consultation on these sites starts at a level which will be

determined by the government. the opportunity to comment at the da stage remains.

Lda staff attend evening regional community council meetings across canberra to provide

information on elements of the LRp in those areas. Letters were circulated in a number of

suburbs during 2010-11, in relation to the release of sites on the land release program including

Watson, Holt, Belconnen and Higgins.


SectIon Bconsultation and Scrutiny Reporting

during the reporting period, the Lda ceo and Lda staff participated in cabinet in the community

gatherings at the Belconnen arts centre and the canberra museum and gallery. the Lda also

shared a stand with the edd (formerly LapS) and all other major act government agencies were

represented.

post development of its own residential estates, the Lda runs a community engagement

program, mingle, which is an initiative recognising the importance of building vibrant

communities within new Lda estates. currently implemented in the suburbs of Franklin and

Bonner, the program aims to achieve a number of objectives all based around the notion of

encouraging new residents to feel a part of the community and become involved in community

life and activities.

this has been achieved through a series of events and activities in 2010-11 including a family

easter egg hunt, mix ‘n’ mingle events such as coffee and muffin day and Family and community

day. the Lda also organised a BBQ for residents who participated in clean up australia day in

Franklin.

Franklin residents receive regular newsletters about what’s happening in their suburb and access

to a mingle website which includes a community noticeboard.

In 2010-11 the Lda engaged the gungahlin Regional community Service (gRcS) to assist with the

implementation of the community development program for Franklin over the next two years.

the program will be handed over to gRcS to continue to oversee at the end of this period.



b2. InTernal anD exTernal scrUTIny

the Lda Board and senior management ensure the accountability of program delivery through

a strong governance approach. this approach is maintained through regular monitoring and

scrutiny of key activities by the Lda Board, the Lda Board audit committee and the Lda executive.

Internal policies and procedures are regularly reviewed to ensure they are current and reflect the

business structure and objectives of the Lda.

Internal audit is reported separately in the Section c1 Risk management and Internal audit of this

report.

during 2010-11 the Lda contributed to a performance audit undertaken by the act auditor

general on Residential Land Supply and development. the report was tabled in the Legislative

assembly on thursday 24 February 2011. as at 30 June 2011, the government submission was yet

to be provided to the Standing committee on public accounts.

In response to this report the Lda noted the report’s conclusion that the Lda has a strong financial

management focus and the finding that the Lda has exceeded its land release targets since

2007-08. In addition the audit did not identify any inefficiencies in the Lda’s operations.

nature of Inquiry/Report title Recommendations/outcome of Inquiry

act auditor general’s office Report no 2/2011 – Residential Land Supply and development available at: www.audit.act.gov.au/au-ditreports/reports2011/Report_2-2011_Resi-dential_Land_Supply_and_development.pdf

as at 30 June 2011 the government submission still to be finalised.

ACt AuDItoR GeneRAl’S offICe RepoRt on fInAnCIAl AuDItS 2009-10 - 10/2010

this report, released on 21 december 2010, provides details of the results of the audits of

financial statements and reviews of statements of performance of the territory and its agencies

completed during 2009-10. In this report the audit office issued an unqualified audit report on

the Lda’s 2009-10 financial statements and an unqualified report of factual findings on its 2009-10

statement of performance.

the auditor general’s office reported that the Lda had resolved all previously reported audit

findings. In particular, the Lda had improved the non-financial performance indicators included

in its statement of performance so that readers of the statement could make a more meaningful

assessment of the Lda’s performance.



Whilst there were no recommendations, the report identified five findings which have been acted

upon internally within the Lda as follows:

1. Accounting for Joint Ventures (JV).

Recommendation:

the Lda should ensure that the accounting treatment for land joint ventures complies with aaSB

131.

progress:

the Lda is now reporting in a manner that complies with aaSB 131 in respect to the sale of

development rights. that is, the balance of the difference between the value of the rights and

the cost incurred in acquiring the rights is being recognised progressively in line with the sale of

developed land by the Jv to third parties.

2. Internal Audit Arrangements – Internal Audit Charter.

Recommendation:

the Lda should:

I. develop and implement an internal audit charter, and

II. ensure the internal audit charter is approved by its governing Board and routinely

(e.g. annually) reviewed.

progress:

It was noted that the Lda audit committee did have a charter however, it was revised to ensure

it was compliant with the audit findings. the Internal audit charter was adopted by the audit

committee at the 22 February 2011 meeting.

3. Internal Audit Arrangements – Internal Audit Contractors.

Recommendation:

the Lda should:

I. implement approved policies and procedures for the regular review of the work of

internal audit contractors;

II. conduct regular quality control reviews of the work of internal audit contractors.

these reviews should be performed by those with sufficient audit experience to

assess whether internal audit work complies with the relevant internal audit

standards; and

III. provide feedback to internal audit contractors on the quality of their work including

any matters that need to be addressed.

progress:



the audit committee has determined to undertake its own periodic assessment of the work of

contracted audit providers.

4. Chief executive’s financial Instructions.

Recommendation:

the Lda should ensure its chief executive Financial Instructions (ceFI) are reviewed, updated and

approved on a sufficiently regular basis (for example, at least every three years or more frequently

when significant changes to the systems or procedures occur).

progress:

the ceFI have been updated and uploaded to the Lda intranet.

5. Statement of performance – non-financial performance Indicators.

Recommendation:

I. the Lda comprehensively review the presentation of its statement of performance

to ensure that it enables readers to clearly:

• see the Lda’s actual results against each of the targets listed in its SoI along with

the calculated variances from each target,

• differentiate between the reported results from the accompanying explanations

of the material variances from each target, and

• always clearly explain how the reported result was measured or estimated.

II. the audit office believes the statement of performance prepared by the department

of disability, Housing and community Services (dHcS) provides an example of better

practice adopted by the act government agency. the office therefore recommends

that Lda should use this format in preparing its statement of performance.

progress:

Finance has prepared a draft statement of performance, which has been forwarded to the

auditor-general’s office seeking feedback to ensure the Lda meets its reporting requirements.



b3. leGIslaTIVe asseMbly coMMITTee InqUIrIes anD rePorTs

the Lda did not formally respond to any assembly committee Inquiries or Reports during the

reporting period. Lda executives attended the following committee hearings:

• Standing committee on planning, public Works and territory and municipal Services –

Inquiry into annual and Financial Reports 2009-10; and

• Select committee on estimates 2011-12.



b4. leGIslaTIVe rePorT

While the Lda does not administer any enactments, it is established by section 31 of the Planning

and Development Act 2007 and is bound by chapter 4 of that act.


other Reporting

SectIon c


SectIon c other Reporting

c1. rIsK ManaGeMenT anD InTernal aUDIT

enteRpRISe RISk MAnAGeMentthe Lda Board and executive regularly monitor and review the Lda Strategic Risk management

plan (SRmp), and the executive ensures the effective transfer of risk mitigation strategies into

operational planning and delivery.

during 2010-11 the audit committee approved a revised SRmp which identified a set of strategic

and emerging risks for the agency, as detailed in Section a5 of this report and in the Lda SoI.

BoARD AuDIt CoMMItteethe Board audit committee and internal auditors provide independent assurance and assistance

to the Board on Lda risk management, financial controls and legal compliance as well as external

accountability responsibilities.

the Board audit committee approved a new Internal audit charter for the agency which

highlights the manner in which the internal audit function operates within the agency.

the Board audit committee also approved a renewed three year Lda Forward audit program

which includes: business continuity planning; sales processes; fraud control; records

management, workforce health and safety policies and legislative compliance audits.

the Board audit committee met five times during 2010-11.

c.1 Risk management and Internal audit

name of Member position DurationMeetings attended of total of 5

Robert tonkin chair 2010-2011 5

Bill Wood member 2010-2011 5

margaret gillespie member 2010-2011 4


SectIon cother Reporting

c2. fraUD PreVenTIon

the act Integrity policy addresses fraud and corruption prevention at the Whole of government

(Whog) level. the policy requires agencies to undertake a business integrity risk assessment and

prepare a Fraud and corruption prevention plan every two years.

the Lda’s Fraud control plan provides the basic architecture for a robust fraud prevention

strategy within the organisation and it is accompanied by a Risk treatment identifying the

relevant risks. these were approved by the audit committee in may 2009 and remain current.

the Lda did not conduct any investigations into fraud in 2010-11.



c3. PUblIc InTeresT DIsclosUre

the Public Interest Disclosure Act 1994 provides the mechanism for people to report wrongdoing

in the act public Service. this action is referred to as making a ‘public interest disclosure’,

less formally known as ‘whistle-blowing’. a chief minister and cabinet directorate (cmcd)

information leaflet is available on the cmcd website (www.cmd.act.gov.au/governance/public/

publications#p) which provides information on making a public interest disclosure.

the Lda did not receive any public interest disclosures in 2010-11.



c4. freeDoM of InforMaTIon

the act Freedom of Information Act 1989 (the FoI act) provides a legally enforceable right of

access by citizens to all documentation in the possession of the act government, subject only

to exemptions to protect the legitimate interest of the act government, and of the third parties

who deal with the act government. the FoI act requires information about the operations of

act agencies to be made publicly available, in particular, the rules and practices affecting citizens

in their dealings with those agencies.

the Lda is a prescribed authority for the purposes of the FoI act.

Section 7 of the FoI act requires the Lda to prepare and publish a statement outlining its:

• organisation and functions,

• any public consultative arrangements,

• the categories of documents it maintains in its possession; and

• how members of the public can access these documents and contact details of relevant

officers.

oRGAnISAtIon AnD funCtIonSthe Lda is a territory authority established by section 31 of the pda to develop land, carry out

works to enhance land, and carry out strategic or complex urban development projects.

the Lda does not administer any legislation.

For further details of the Lda’s organisation and objectives see a1 of this report.

puBlIC ConSultAtIonthe Lda applies a community engagement Framework in consulting the act community on its

projects.

For further details see B1 of this report.

CAteGoRIeS of DoCuMentSthe Lda holds several categories of documents:

• those that are available on request and without charge, and

• all other kinds of documents that may be available under the FoI act.



DoCuMentS AVAIlABle on RequeSt AnD WItHout CHARGethese documents include Lda sales and marketing material, that can be obtained from the Lda

public counter at Level 6 transact House, 470 northbourne avenue, dickson. the majority of

these documents can be downloaded from the Lda website at www.lda.act.gov.au

In addition, the copies of the following documents can also be downloaded from the website:

• the Indicative Land Release program

• annual Report

• Statement of Intent

All otHeR kInDS of DoCuMentS tHAt MAy Be AVAIlABle unDeR tHe foI ACtthese documents include general files, minutes of meetings of management and other

committees, background papers, policy statements, financial and staffing estimates, program

and policy files, records on computer or paper in connection with specialised divisional functions,

contracts and tenders, records of government, and leases and deeds of agreement.

fACIlItIeS foR ACCeSSLda documents may be accessed outside the FoI act. Before submitting a formal FoI request,

persons seeking information are encouraged to contact the Lda FoI coordinator as in many

cases, information can be provided more quickly and efficiently through such an approach.

the Lda public counter is located on Level 6 transact House, 470 northbourne avenue, dickson.

Several bus stops are close to transact House and short-term car parking is located off challis

Street including disabled car park spaces. the building has wheelchair and elevator access.

SeCtIon 8 StAteMentSection 8 of the FoI act requires the Lda to publish a statement setting out particulars of:

• manuals or other documents containing interpretations, rules, guidelines, practices or

precedents;

• documents about a scheme, its administration or enforcement; and

• documents describing the procedures for investigating breaches or evasions of schemes.



the Lda uses the following documents in making decisions:

• the Statement of Intent (SoI) for the Budget year, a copy of which is published on the Lda

website at www.lda.act.gov.au/?/home/about/reports

• Lda guidelines for decision makers & action officers.

SeCtIon 48 StAteMentSection 48 of the FoI act provides for a person, under specified circumstances, to ask for personal

information in the documents to be amended if he or she believes they are incomplete, incorrect,

out-of-date, or misleading – providing the person establishes one of the these grounds.

during 2010-11 no requests were received under Section 48.

SuMMARy of outCoMeS of foI RequeStS – SeCtIon 79 (2)In 2010-11 the Lda received 11 applications under the FoI act for access to documents held by

the agency. of the 11 requests, five were finalised with full or partial access being granted, four

requests involved a technical refusal and two requests were withdrawn.

time taken to finalise FoI request

number of foI requests received

30 days or less

31 to 45 days

46 to 60 days

61 to 90 days

91 days or more

not yet finalised

11 7 21 11 11 nil 0

1 extension agreed on three requests.

access decisions

full Access partial Access total exemptiontechnical refusal (no documents)

Withdrawn

0 5 nil 4 2



decisions appealed

Requests for internal review

Affirmed partial Access overturned

1 nil nil 12

2 exempted documents released under subpoena with remaining documents released following Internal Review.

Referrals to the act civil and administrative tribunal (acat)

Request to ACAt Affirmed overturned ongoing

nil nil nil nil

Fees and charges (for requests with >10 hours processing time)

fees Charged total Amount Collected

3 $2,159.10

applicant type

Member of public

SolicitorAssociation/organisation

MlA Company

5 3 1 2 nil

Requests to amend personal records (Section 48)

Requests Affirmed overturned ongoing

nil nil nil nil

fReeDoM of InfoRMAtIon GuIDelIneSthe Lda FoI guidelines for applicants and guidelines for managers and Staff were updated in

2010 and are available through the Lda website and intranet.

the purpose of the guidelines for applicants is to assist prospective applicants to make an FoI

request.



the purpose of the guidelines for managers and Staff is to inform decision- makers and action

officers about the FoI act and their roles in managing responses to applications in accordance

with the FoI act in a comprehensive and timely way.


the FoI coordinator



dIcKSon act 2602

telephone: (02) 6207 8263

Fax: (02) 6207 6110



c5. InTernal accoUnTabIlITy

lDA BoARDthe Lda Board is established by section 42 of the planning and development act 2007 as a

governing board. the Board must have at least five but not more than eight members. In

appointing Board members, the minister must try to ensure that the following disciplines and

areas of expertise are represented:

• land development

• landscape architecture

• sustainable development

• economics

• public law

• finance or accounting

• public administration

• engineering

In 2010-11 there were six Board members and a total of 14 meetings.

Board attendance 2010-11

name positionMeetings attended of total of 14

John Haskins am chair (until 31 dec 2010) 6*

Ray youngdeputy chair

14chair from Jan 2011

Robert tonkin deputy chair from Jan 2011 13*

Bill Wood member 12*

margaret gillespie member (resigned on 13 may 2011) 11*

Ray davis member 13*

John Robertson ceo and member 12*

*apologies recorded



JoHn HASkInS AM

John Haskins retired from full-time work in 1998. For over 20 years prior to his retirement, John

was chairman of a medium-size construction and development company with offices on the gold

coast, canberra and Sydney. He has always been involved in all facets of the construction and

development industry and still is today with his continued involvement in the master Builders’

association.

He is the immediate past vice-president of the world-wide construction industry association

known as confederation of International contractors’ association (cIca) and immediate past

president of International Federation of asian and Western pacific contractors’ association

(IFaWpca) of which 15 countries are members.

mr Haskins is a Life member and past president of the master Builders’ association of australia

and Life member and past president of the master Builders’ association of the act.

currently, he sits on the board of construction Building unions Superannuation Fund (cBuS),

is chairman of the cBuS audit committee, is a director of the utilities trust of australia and

chairman of exhibition park in canberra (epIc).

mr Haskins was awarded the medal of australia (am) in the Queen’s Birthday Honours for his

service and outstanding contributions to the building industry both locally and internationally.

(L-R) Ray young, Bill Wood, John Robertson, Robert tonkin, Ray davis.



RAy younG

Ray young is a civil engineer with more than 30 years experience in the consulting engineering

field.

He formed young consulting engineers pty Ltd (formerly R.a. young & associates) in 1982

growing the organisation to staff numbers of 60 with its head office in the act and offices in,

Sydney, melbourne and Brisbane. these offices provided a full consulting service over a wide

range of civil engineering projects.

In 2004 the company merged with cardno Limited, a major australian owned national and

international engineering and management group.

Since 1984 mr young has been closely involved in urban land development in the surrounding

region and in particular the act as the industry moved to a greater involvement by the private

sector. these projects included the Jerrabomberra estate in nSW and the Harcourt Hill estate in

the act.

my young retired from full time work in 2006. He continues to be involved in some consulting

work and holds other board positions including president of the Royal canberra golf club and a

member of the Salvation army advisory Board. He is the former chairman of the Radford college

Board.

He is also a former national president of the association of consulting engineers australia.

In 2000 mr young was presented with the australian Sports medal for his engineering

contribution to the Sydney olympic games and in 2002 received the centenary medal for his

contribution to consult australia (formerly the association of consulting engineers australia).

BIll WooD

Bill Wood was a member of the act Legislative assembly from its inception in 1989 until his

retirement in 2004. From this position he developed strong knowledge of, and communication

with a wide range of community groups operating in the act. He became familiar with the major

issues facing the territory and its people.

over six and a half years he served as minister in two governments. From 1991 to 1995 he

was minister for environment, Land and planning in the Follett government with ministerial

responsibility for most of the functions now performed by the Land development agency. the

management of land supply and its development was a major priority ensuring that there was

sufficient land to meet the demands of a growing population. ministerially, he had responsibility

for the quality of that development through the territory’s planning legislation and its

administration.

He charted the way towards returning land development to be an integral activity of

government, rather than development simply via englobo sales to developers. He began by

considerably expanding the number of joint ventures through which the government had a more

direct role in development. It was a period too, of greater focus on energy efficient suburban



design, sustainability, sound environmental policies and the introduction of a greenhouse

strategy.

He advanced long-considered, but delayed, plans for urban renewal and consolidation, with the

introduction of a policy that half of new housing starts should be in established areas rather than

greenfield. during that time he was also instrumental in overseeing the development of the first

consolidated territory plan replacing a large number of site-specific policies.

From 2001 to 2004 he was minister for Housing and community Services in the Stanhope

government when greater priority and increased capital funding was directed to the need to

maintain the public housing stock. He established the Housing affordability task Force which

provided strong direction to issues relating to housing supply and the housing stress caused by

high land and house prices now a major policy issue for the government and the agency.

He has been a board member of the Lda for the last five years and is a member of its audit

committee.

prior to his election to the Legislative assembly he was an officer in the act Schools authority

and a teacher and deputy principal in its schools.

Before arriving in canberra in 1978, he was a teacher and principal in special schools in

Queensland and for six years a member of the Queensland Legislative assembly. He holds a

teachers’ college certificate, a Bachelor of education degree from the university of Queensland

and a master of education degree from the then canberra college of advanced education.

He remains a permanent resident of canberra, residing at o’connor with his wife.

RoBeRt tonkIn

Robert tonkin is a former senior commonwealth and act public servant and has been a resident

of canberra since 1973. mr tonkin is a former deputy Secretary of the department of defence,

chief executive of the act chief minister’s department, and was an unattached Secretary within

the department of the prime minister and cabinet.

mr tonkin has extensive high-level experience in public sector governance, strategic policy and

resource management, and in national security and risk management.

at the department of the prime minister and cabinet, mr tonkin led the australian government’s

taskforce on offshore maritime Security, and headed the Secretariat of the 2004 coag national

enquiry on Bushfire mitigation and management. In the act he led reform initiatives in the act

public Service, the Service’s response to the 2003 bushfires and served on the Bushfire Recovery

taskforce.

as a deputy Secretary in the department of defence mr tonkin was concurrently cFo and cIo,

oversighted a number of other divisions including corporate planning, government relations,

estate management, personnel, corporate support and audit and lead the department’s

successful implementation of major reform and efficiency initiatives.



mr tonkin has chaired a number of commonwealth department audit committees and has been

a board member of the defence Housing authority.

He has previously been a member of the council of the order of australia and of the australian

Bravery decorations council, and was deputy chair of the defence Reserves Support council of

the act.

currently, mr tonkin is the national Secretary and act chair of the australian Industry and

defence network.

mr tonkin has an Honours degree in urban geography and is a Fellow of the australian Institute

of management.

RAy DAVIS

one of canberra’s most experienced and well known property identities, Ray davis has built up

an unparalleled healthy respect from property owners, investors, financiers and managers over

some 30 years of consultancy, agency practice, valuations and property management in the act

and the local region in all facets including residential, rural, commercial, industrial and retail.

For seven years in the early 1980s mr davis was the managing director and shareholder of a

major commercial property group prior to establishing Ray L davis and company pty Ltd in 1988.

He has extensive experience in all forms of valuation and consultancy and has been responsible

for providing advice to the government and major institutional investors, on many and

varied complex matters included but not limited to, asset valuations, asset performance and

benchmarking, asset sale and acquisitions, crown Lease administration and variation to crown

Leases, representations in the administrative appeals tribunal (aat) on behalf of clients, review

of commercial unimproved values, complex project feasibility studies for new and refurbishment

projects, crown Lease land rent payouts, market research and forward projections, presentation

of office market trends in the act, office market rental determinations, rural and residential

valuations, leasehold and freehold acquisitions and resumptions.

mr davis’ contribution to the property industry has been recognised in a number of ways. In 1985

he was admitted as a Fellow of the australian property Institute (formerly Institute of valuers);

he was awarded the act property council’s outstanding property professional of the year in

1999; appointed Honorary ambassador for canberra in 2000; the Ray L davis and company

was awarded the Real estate Institute of the act and the canberra times Industry awards for

excellence ‘commercial agency of the year’ for six consecutive years until his retirement and was

an inaugural inductee into the act Real estate Institute Hall of Fame in 2002.

MARGARet GIlleSpIe

prior to her retirement from full time work in 2008, margaret was the assistant national

Secretary of the community and public Sector union (cpSu). She headed up the canberra office

of the union and served as director of the union’s Legal and technical unit. ms gillespie has

extensive experience with legislation, parliamentary procedure and government decision making

procedures.



She served two terms as an honorary assistant Secretary of the australian council of trade

unions (actu).

ms gillespie tendered her resignation from the Lda Board on 13 may 2011 to take up the position

of chief of Staff for Katy gallagher, act chief minister.

until 13 may 2011, margaret was also a trustee on the board of australian Reward Investment

alliance (aRIa) superannuation fund, a member of the university of canberra council as well as

being a member of the ministerial advisory council on Women.

JoHn RoBeRtSon

John Robertson joined the Lda as ceo on 22 august 2007. He was appointed to the position

of ceo in november 2007 and is a member of the Lda Board. He has been responsible for the

agency’s delivery of the act government program of commercial, industrial and residential

land release to the market through joint ventures with the private sector, englobo releases and

development of Lda’s own estates.

mr Robertson was previously the executive director of act procurement Solutions, the act

government’s acknowledged centre of procurement excellence. From June 2002 he led a team

which grew to 100 professionals, in the procurement of a wide range of goods, services and

works and the construction of a wide range of public infrastructure and facilities. at the time

he left procurement Solutions, it had construction projects totalling over $800 million under

management, including major roads, new schools, hospital upgrades and arts and correctional

facilities.

mr Robertson has extensive experience in the management and reform of government business

enterprises, the development of regulatory frameworks, economic, industry and innovation

policy, procurement and governance issues with both the commonwealth and act public

Services. Key activities to which he has made major contributions include the reform of act

government procurement arrangements, the establishment of the actewagL joint venture

arrangements and the act’s utility regulatory framework.

mr Robertson has held a number of statutory and board appointments and been a member of a

broad range of commonwealth-State Senior officials groups and working parties, most recently

as a member of the australian procurement and construction council Leadership group. He is

a member of the australian Institute of company directors and was the inaugural act Regional

chair of the chartered Institute of purchasing and Supply australia. He has an Honours degree in

Science and a degree in economics, both from the australian national university.



ReMuneRAtIon foR CHIef exeCutIVe offICeR AnD tHe lDA BoARD MeMBeRSunder the Remuneration Tribunal Act 1995 the Remuneration tribunal determines remuneration

for the ceo and Board members.

Senior executives*

name position

John Robertson chief executive officer

chris Reynolds general manager - development

Ian Wood-Bradley general manager - urban Renewal

* as at 30 June 2011

MAnAGeMent CoMMItteeSthe Lda executive committee manages ongoing operational issues, oversights project delivery,

and implements development programs and addresses organisational management issues.

executive committee*

name position

John Robertson chief executive officer

chris Reynolds general manager - development

Ian Wood-Bradley general manager - urban Renewal

annette Wright Senior manager – governance and communications

ashley tucker acting chief Finance officer

clint peters director Sales


WoRkplACe HeAltH AnD SAfety CoMMIttee (WHSC)the Lda’s WHSc facilitates consultation and communication between employees, represented

unions and management. It also monitors the effectiveness of the safety management system

and develops initiatives and programs to achieve improved outcomes in health and safety.



WHSc committee*

name position

Joanne Rosewarne chairperson

Sarah davies Secretariat

Kathryn thresher Health Safety Representative

Jason Hunter Health Safety Representative

Steve polsen/adam nugent management Representative – Facilities manager

david pitt or Ian decosta or alix Blakeley

Shared Services Safety team Representative

Jason Wood union Representative

chris Reynolds executive Representative


JoInt VentuRe MAnAGeMent CoMMItteeSthe joint ventures in crace, Forde and Woden green are each managed by a Joint venture

management committee (Jvmc). Separate project control groups manage the operational

aspects of each respective site.

CRACe

crace is being developed as a joint venture between the Lda and crace development pty Ltd.

crace development is a consortium with canberra Investment corporation australia (cIc) as

project manager and lead partner. the other consortium partners are defence Housing australia

(dHa), cHc affordable Housing and investment company, tatebrook pty Ltd. the whole suburb

has HIa greensmart© accreditation – a canberra First and a special arrangement with greening

australia is offsetting emissions during the development process.

the crace demonstration village features a unique mix of 17 architect-designed homes and

terraces. to find out more visit www.crace.com.au

foRDe

Forde in gungahlin is a joint venture development between the Lda, delfin Lend Lease and cIc.

dedicated to creating a genuine sense of community and a respect for the surrounding natural

bushland, Forde has a strong focus on sustainability. to find out more visit www.forde.com.au

WoDen GReen

Woden green is a joint venture development between the Lda and Hindmarsh property. the

planning of Woden green was formed as a “Residential Lifestyle estate” setting a new standard



in innovation and quality for multi generational living. this has led to an emphasis on high

quality, architecturally designed, fully adaptable housing integrated into an environmentally

sensitive landscaped environment. the development aims to achieve walk-ability, active street

frontages and a proactive approach to achieving a wide range of housing outcomes in close

proximity to the Woden town centre.

Details of the financial statements for 2010-11 for all joint ventures are provided in A6 of this

report.



c6. Hr PerforMance

the edd Human Resource (HR) unit continued to provide strategic, operational and technical HR

support and advice to executives, managers and staff of the Lda.

during the year the Lda implemented a number of initiatives consistent with the Whog strategic

themes.

DelIVeRInG foR tHe futuRemaximising learning and development opportunities were identified as key priorities during the

2010-11 reporting period.

In 2010-11 the Lda participated in the act public Service (actpS) Indigenous traineeship

programs, with one trainee graduating in august 2010 and another engaged for the 2011

program.

the Lda also participated in the 2010 and 2011 actpS graduate development programs, hosting

two graduates each year. In december 2010 both graduates accepted positions within the Lda

and another two graduates were engaged in February 2011.

the provision of monthly and quarterly workforce reports to the ceo continued. these reports

support business units in implementing a planned approach to workforce needs and building

organisational capacity.

StRenGtHenInG oRGAnISAtIonAl ReSIlIenCethe Lda has continued to be committed to building and maintaining a positive and respectful

work environment that encourages innovation and the sharing of ideas. It recognised that a

positive workplace is a diverse workplace that accepts people with diverse characteristics, beliefs,

attitudes, language and social circumstances without prejudice.

In keeping with this commitment to develop and maintain a positive and respectful work

environment, the Lda is implementing the Whog Respect, equity and diversity (Red) Framework

including awareness training for all staff.

Work is underway in the review of the performance management Scheme with the aim of

enhancing the program by streamlining the process, making it more user friendly and ensuring

active and constructive participation, and that a culture of continuous improvement and

feedback is maintained.

the Lda continues to provide health and wellbeing initiatives to support and promote a healthy

workforce. these initiatives have included workplace massage and annual influenza vaccinations



and work-life balance posters. Further details regarding health and wellbeing initiatives are

provided in Section c9 of this report.

the Lda continues to promote the services of the employee assistance program (eap) which is a

short term solution based counselling service available to staff and their families at no cost. the

service is available for both work related and personal issues.

SuStAInInG CoMMunIty ConfIDenCethe Lda is participating in the actpS administrative traineeship pilot program for people with an

Intellectual disability. the traineeship is designed to assist people with an intellectual disability

to gain skills and qualifications to develop long term careers in an administrative/ clerical

environment. the Lda trainee has undertaken a variety of clerical roles appropriate to their

specific circumstances and is expected to graduate in august 2011.

WoRkInG CollABoRAtIVely Lda executives and managers continued to seek specialist advice and support from HR to best

support team and individual needs in the workplace.

the Lda continues to actively participate on a number of inter agency forums such as

management council, HR council, Shared Services HR Reference groups and the occupational

Health, Safety and Rehabilitation advisory committee (oHSRac) via the edd HR team.

In addition the Lda maintains a collaborative working relationship with Shared Services

for delivery of HR functions, in particular recruitment, payroll, injury prevention and injury

management and employee relation functions. Regular meetings are held with managers of

Shared Services to facilitate the provisions of services offered to the Lda and where necessary

review these services with the aim of ensuring processes are efficient and effective.

the Lda’s consultative committees continued to remain active, supporting consultation and

communication processes between staff, management and unions and promoting the sharing of

information across the agency. the Workplace consultative committee and WHSc continued to

meet on a quarterly basis throughout the year and the Lda also actively participated in the edd

agency consultative committee (acc)

In addition, the ceo holds monthly staff forums to discuss strategic (including HR) issues.

enHAnCInG SkIllS AnD CApABIlItIeSthe Lda is committed to the development and retention of competent and skilled employees.

HR facilitated the delivery of learning and development opportunities aligned with the identified

priority areas. Further details regarding the targeted programs are provided in Section c8 of this

report.



In 2011–12, HR will continue to partner with the Lda’s executive and business units to refine and

develop these strategies and plans. a major focus is expected to be refining human resources

service delivery to internal business units and supporting the organisation’s redevelopment and

capital investment program.



c7. sTaffInG ProfIle

the Lda has a workforce of 102 of whom 87 are permanent officers and 15 are temporary

employees.

the following tables outline the breakdown of staff by classification, employment category,

average length of service and age profile as at 30 June 2011.

Full time equivalents (Fte) and Headcount

female Male

Fte by gender 52.16 44.89

Headcount by gender 55 47

% of Workforce 54% 46%

classifications

Classification Group female Male total

administrative officers 26 7 33

executive officers - 3 3

Senior officers 28 36 64

trainees and apprentices 1 1 2

total 55 47 102

employment category by gender

employment Category female Male total

casual - - 0

permanent Full-time 40 38 78

permanent part-time 8 1 9

temporary Full-time 6 6 12

temporary part-time 1 2 3

total 55 47 102



average Length of Service by age-group by gender

Average length of Service

pre-Baby Boomers

Baby Boomers

Generation x

Generation y

total

F m F m F m F m F m

0-2 - - - 6 6 4 12 3 18 13

2-4 - - 4 2 7 2 7 - 18 5

4-6 - - 1 2 3 3 3 - 7 5

6-8 - - - 1 1 4 1 1 2 6

8-10 - - - 3 1 1 - - 1 4

10-12 - - - 1 - - - - 0 1

12-14 - - 2 1 2 - - - 4 1

14+ years - - 3 8 2 4 - - 5 12

total average Length of Service by gender

Gender Average length of service

Female 5.4

male 9.3

total 7.2

age profile

Age Group female Male total

< 20 - - 0

20-24 9 2 11

25-29 11 1 12

30-34 9 6 15

35-39 5 4 9

40-44 9 9 18

45-49 4 4 8

50-54 7 7 14

55-59 - 7 7

60-64 - 6 6

65-69 1 1 2

70+ - - 0



agency profile

Branch/Division fte Headcount

development 27.7 29

executive 3.1 4

Finance (enabling Services) 28.5 31

governance and communications 15.8 16

Kingston Foreshore 3 3

urban Renewal 19 19

total 97.1 102

agency profile by employment type

Branch/Division permanent temporary Casual

development 26 3 -

executive 3 1 -

Finance (enabling Services) 26 5 -

governance and communications 16 3 -

Kingston Foreshore 3 - -

urban Renewal 13 3 -

total 87 15 0

equity and Workplace diversity

A

Aboriginal and/or

Torres Strait Islander

Employment

B

Culturally & Linguisti-

cally Diverse (CALD)

Employment

C

Employment of people

with a disability

Number of employees

who identify in any of the

Equity & Diversity

categories (A, B, C)*

Women

Headcount 2 8 4 14 55

% of total Staff

2.0% 7.8% 3.9% 13.7% 53.9%



* employees who identify in more than one equity and diversity category are counted once.

the statistics exclude board members; staff not paid by the actpS and people on leave without

pay. Staff members who had separated from the actpS, but received a payment have been

included.


Senior Human Resources manager

Level 2 telstra Building


dIcKSon act 2602

telephone: (02) 6205 4057

Fax: (02) 6207 0123



c8. learnInG anD DeVeloPMenT

Learning and development, with a focus on ‘in house training’ is a high priority for the Lda.

during 2010-11, a skills audit was completed for all staff and this has informed future learning

and development strategies across the Lda. training has also been identified so that staff retain

their skills and are up to date with new initiatives in the land development area. In 2010-11 there

was a particular emphasis on developing skills and knowledge through attendance at seminars

and conferences.

Staff also accessed a range of in-house programs, actpS training calendar courses and various

specialist programs to build, retain and enhance the skills and knowledge of staff.

StuDy ASSIStAnCeduring 2010-11, two staff members were supported to undertake further study through the

study assistance program.

SHAReD SeRVICeS tRAInInGSix staff completed the actpS e-induction and seventeen staff attended Shared Services

calendar training courses.

Whole of government training programs

Initiative number of participants

actpS graduate program 2

young professionals’ network 5

Future Leaders program 3

executive development program 0

pSm program 0

Sponsored training for First-time and Front-line managers 3

In-HouSe tRAInInG pRoGRAMSIn response to a potential privacy breach the Lda arranged for the australian government

Solicitors office to provide an all staff training session on 8 February 2011 on the Privacy Act.




Respect, equity and diversity training 14

privacy act overview 60

Introduction to procurement 10

otHeR pRofeSSIonAl DeVelopMent


advanced diploma in project management 2

project management – one and two day courses 3

new Supervisor training 2

various conferences 34

Worksafe in construction certificate 16

company director course 1

estate master training 2

First aid training 5

2010 public Sector governance conference 4



c9. WorKPlace HealTH anD safeTy

the health and safety of all employees remains a high priority for the Lda. Workplace Health and

Safety (WHS) initiatives focused on providing employees with information and education as part

of the ongoing commitment to employee safety. the Lda continues to review and implement

improvements to work practices, equipment and guidelines which will assist all employees in

meeting their obligations under the Work Safety Act 2008 (the act).

HeAltH AnD SAfety StRuCtuReS AnD RepReSentAtIVeSthe Lda has two WHS work units delineated by level 6 and 7 of the transact building with two

representatives on each level. during 2010-11, a review of fire wardens and first aid officers

and health safety representatives (HSRs) was conducted and training was provided to new

representatives. the Lda held quarterly Work Safety committee meetings with attendance from

HSRs, Senior management, HR, representatives from the Injury prevention management unit,

Shared Services Health and Safety team and the relevant union. these meetings allowed the

HSRs to raise workplace safety matters with senior management on behalf of all staff. through

these meetings workplace safety issues were resolved and improvement strategies developed.

HeAltH AnD WellBeInG of StAffa number of preventative and restorative initiatives continue to be made available to staff

including completion of workstation self assessments followed by an occupational workplace

assessment and the provision of equipment where required; free workplace massages and

immunisation against the influenza virus are available for all staff.

ACCIDent AnD InCIDent RepoRtInGall accident/incident reports are assessed to identify and implement corrective action to address

the incident and to identify preventative measures to prevent a similar accident from occurring.

the accident form and corrective action taken are reviewed by the HR team to determine if

further investigation is required and to identify any trends within the Lda.

during 2010-11, no incidents were notifiable to Workcover in accordance with section 38 of the

act. during the reporting period, the Lda did not receive any notices issues under section 167

and 170 of the act.



eMployee ASSIStAnCe pRoGRAMthe employee assistance program (eap) continues to be widely promoted across the Lda and

the provider IpS Worldwide provided a number of lunchtime ‘healthy life’ sessions during the

reporting period.



c10. WorKPlace relaTIons

the Lda is a party to the LapS enterprise agreement 2010-2011. this agreement expired on 30

June 2011 and work has commenced on the development of a new enterprise agreement. It is

expected that the new agreement will be implemented early in the 2011-12 reporting year.

AGenCy AnD WoRkplACe ConSultAtIVe CoMMItteeSthe Lda continued to support consultative processes such as the agency and Workplace

consultative committees (Wcc), which included industrial organisations and staff

representatives from each business unit.

Special employment arrangements

Descriptionno. of

Individual SeAs

no. of GroupSeAs*

total employees

covered by Group

SeAs**

total

a B c (a+c)

SeAs

number of Seas as at 30 June 2010

5 nil nil 5

number of Seas entered into during period

1 nil nil 1

number of Seas terminated during period

1 nil nil 1

the number of Seas providing for privately plated vehicles as at 30 June 2011

nil nil nil nil

number of Seas for employees who have transferred from aWas during period

nil nil nil nil

AWAs

number of aWas as at 30 June 2011

nil nil nil nil

number of aWas terminated/lapsed (including formal termination and those that have lapsed due to staff departures)

nil nil nil nil



Classification RangeRemuneration as at

30 June 2010

Individual and group Seas Soga $125,016 - $146,996

aWas (includes aWas ceased during period) nil nil



c11. sTraTeGIc bUsHfIre ManaGeMenT Plan

the Lda complies with the requirements of the government’s Strategic Bushfire management

plan (SBmp) for the act.

the Emergencies Act 2004 requires the emergency Services agency (eSa) to develop a SBmp.

the SBmp establishes the basis and framework for efficient, effective and comprehensive

management of fire and fire related activities to protect human life, property, assets and the

environment. one of the requirements of the plan is that land managers inside the Bushfire

abatement Zone (BaZ) produce a Bushfire operational plan (Bop).

the Lda prepares a Bushfire management plan (Bmp) to cover areas under its land management

control and sets out individual requirements and commitments in a Bop.

the Lda’s Bop comprises a variety of methods to reduce or remove fire fuels such as dead and

damaged trees, long dry grass and fallen branches, some shrub and lower branches, bark and

leaves. In 2010–11 these methods included physical removal, slashing, mowing, grazing, general

maintenance and creation of fire suppression trails.

all areas in which these methods are applied are monitored for regrowth.

In 2010-11 slashing was carried out on over 32.8 hectares at ngunnawal, Lawson, crace,

gungahlin, Bonner and casey.

grazing of livestock is used in areas not considered environmentally sensitive. In 2010-11, 165.78

hectares of land in Bonner, casey, crace, Lawson and ngunnawal were grazed.

In addition, the Lda undertakes individual bushfire risk assessments for estates as directed

by eSa’s SBmp and using the environment and Sustainable development directorate’s (eSdd)

(formerly actpLa) guidelines Planning for Bushfire Risk Mitigation General Code 2008.

Bushfire mitigation strategies identified as a result of these assessments are implemented in

development of the estates or included in individual sale conditions.



c12. sTraTeGIc asseT ManaGeMenT

the Lda has an asset management plan (amp) covering planned fixed asset acquisitions and

disposals for the period 2010-11 and addressing the principles and requirements of the act asset

management Strategy.

the plan covers all assets utilised by the Lda in its service delivery including leased and

financed assets. It addresses asset management directions and strategies, asset acquisitions

or replacements, office accommodation, asset maintenance and asset reuse or rationalisation

opportunities.

ASSetS MAnAGeDas at 30 June 2011, the Lda had assets valued at $5.610 million comprising one building at

Kingston Foreshore, leasehold improvements and office equipment.

these assets are held at independent valuation (building) and cost (furniture, fittings and

equipment) net of accumulated depreciation.

It should be noted land purchased from the commonwealth and act government and land

development works in progress are treated as inventory by the Lda and valued at the lower of

cost or net realisable value in accordance with australian accounting Standards (aSa) and do not

form part of Lda’s fixed asset register.

assets managed

Assets properties

Built property assets Former Kingston transport depot (occupied by the old Bus depot markets, the Burley griffin antique centre and former Lda offices)

Leasehold improvements Levels 6 and 7, transact House

other office equipment

during 2010-11 no assets were added to the agency’s asset register.

during 2010-11 the following assets were removed from the agency’s asset register – temporary

office building and temporary amenities building (toilet block) and former Kingston Fitter’s

Workshop (vacant heritage building).

the temporary office building and temporary amenities building (toilet block) were transferred

to the national arboretum canberra. the former Kingston Fitter’s Workshop (vacant heritage

building) was transferred to edd.



ASSetS MAIntenAnCe AnD upGRADeIn 2010-11 the Lda operational assets valued at $5.715 million were subject to general repairs

and maintenance only. no upgrades were undertaken.

offICe ACCoMMoDAtIonthe Lda has provision for 104 employees and contractors occupying approximately 2,514 m2 of

office accommodation as follows.

loCAtIon 1

Levels 6 and 7, transact House, 470 northbourne avenue dickson — 102 employees occupy

approximately 2,190m2.

loCAtIon 2

Bonner Information centre, 1 clay Street Bonner—three employees, normally located in transact

House, occupy 324m2 on a part-time rotational basis.

this office accommodation includes public sales counters, reception and display areas and

facilities for the conduct of Board meetings, public sales events and community forums. the

Bonner Information centre subsequently closed on 31 July 2011.



c13. caPITal WorKs ManaGeMenT

the Lda carries out a significant number of civil infrastructure and landscape construction

programs in conducting its land development activities. most expenditure is incurred in

constructing major infrastructure items and servicing estates.

civil Infrastructure construction - Work in progress

projectoriginal estimates

year of Approval

original estimated Completion

Revised Completion Date

Revised total project Value

Bonner 3 Stage a $12,226,021 2009 05/2011 09/2011 $13,286,239 §

Bonner 3 Stage B $11,903,787 2009 07/2011 09/2011 $11,695,887 »

Fyshwick Section 26 Infrastructure

$4,316,462 2009 10/2011 09/2011 $5,836,153

efkarpidis Street extension Hinder Street to Kate crace St

$1,102,421 2010 08/2010 11/2010 $1,101,980

Bonner 3 Stage c $7,460,641 2009 07/2011 10/2011 $7,460,641

Harrison 4 Stage 1

$10,145,281 2010 03/2012 03/2012 $10,145,281

Harrison 4 Stage 2

$9,053,260 2010 03/2012 03/2012 $9,053,260

Flemington Road Stage 2

$4,592,527 2010 08/2011 09/2011 $5,000,000 √

new West Infrastructure

$16,574,923 2010 01/2012 02/2012 $16,574,923

Kingston Stage 4 $12,226,892 2010 12/2011 02/2012 $14,000,000 #

Wright Stage 1a $15,577,926 2010 07/2011 09/2011 $15,577,926

Bonner 4 $19,185,752 2010 11/2012 11/2012 $19,185,752

Kingston canal Bridge

$1,234,376 2010 11/2012 11/2012 $1,234,376

mitchell Block 45 Section 38

$91,234 2010 08/2011 08/2011 $91,234

nicholls Block 19 Section 73

$503,572 2010 07/2011 07/2011 $503,572

Wright 1B - variation to Wright 1a

$17,780,000 2010 02/2011 04/2012 $17,780,000

Note: All the above projects commenced in 2010-11



§ - additional works including landscaping and earthworks included.

» - components of earthworks carried out by Bonner 3a contact.

# - the increase due to the treatment/disposal of contaminated or unsuitable material and design amendments.

√ - the increase was due to changes required to obtain engineering design approvals, a bill of quantity variation and

unanticipated site conditions.

civil Infrastructure - completed


final Costsestimated Completion

practical Completion

financially Complete

Bonner 2 Stage 1

$11,856,460 $11,856,460 11/2010 03/2011 no

gungahlin Business park Stage 2

$3,092,129 $4,163,709.23 ¥ 02/2010 09/2011 no

Flemington Road Infrastructure

$2,931,590 $2,917,674.82 06/2010 04/2010 no

Belconnen Sewerage treatment Remediation Works

$980,595 $1,200,000 10/2010 09/2011 no

Bonner 2 Stage 2

$9,764,279 $9,764,279 11/2010 05/2011 no

gungaderra creek culverts and cyclepath

$1, 308,554 $1,457,746 09/2010 12/2011 no

¥ - Increase in cost due to unanticipated services relocations and design amendments.

Landscape construction - Work in progress


year of Approval

original estimated Completion

Revised Completion Date

Revised total project Value

Bonner 2 Landscaping

$1,545,131 2010 09/2011 10/2011 $1,545,131

gunghalin town centre Shade Structure

$175,758 2010 12/2010 03/2011 $198,759

Franklin - gubur dhaura

$1,403,027 2011 10/2011 11/2011 $1,403,027

Note: All the above projects commenced in 2010-11



Landscaping construction - completed


final Costsestimated Completion

practical Completion

financially Complete

gungahlin metros Rear Laneway construction

$1,186,121 $1,233,369.49 10/2010 08/2010 no

Franklin Laneway driveways

$75,056 $75,056 04/2010 06/2010 yes

Bonner 1a $1,426,052 $1,553,953.92 03/2010 05/2011 no

Franklin 3a and 3B

$2,070,001 $2,284,984 05/2010 12/2010 no

Bonner 1B1 $2,415,693 $3,369,649.70 06/2010 12/2011 no

Bonner 1B2 $966,721 $1,135,395.78 06/2010 12/2011 no

gungaderra package c

$1,837,695 $1,837,695 03/2011 08/2011 no

Bonner display village Landscaping

$567,427 $532,946.48 04/2010 06/2011 no

yerrabi 2 Residential estate

$1,080,455.09 $1,248,734.57 04/2010 09/2010 no



c14. GoVernMenT conTracTInG

pRoCuReMent ContRACtInG pRInCIpleS AnD pRoCeSSthe Lda’s procurement selection and management processes for all contractors including

consultants was compiled in accordance with the Government Procurement Act 2001 and

government procurement Regulation 2007, and subordinate guidelines and circulars.

the government procurement Regulation 2007 sets quotation and tender thresholds and

requires procurement plans for procurements valued at $1 million or more to be reviewed by the

act government procurement Board (gpB).

the Lda engaged a range of consultants and contractors to provide specialist resource needs in

relation to specific functions. In 2010-11 this included civil engineers, geotechnical engineers,

urban designers, planners and environmental planners.

these specialists provide services such as contamination assessments, heritage assessments,

environmental assessments, residential estate planning, documentation and supervision of

construction surveys, valuations and the preparation of lease and development conditions.

ContRACtoRS AnD ConSultAntSthe Lda uses external sources of labour and services to meet objectives. the following tables

list the contract entities used to provide professional services to the Lda where the total amount

expended, equalled or exceeded $20,000 or where smaller contracts awarded to the same

contactor exceeded $20,000 in total in 2010-11.

Contracting entity DescriptionMonth Contract let

Cost $ (GSt exc)

procurement Method

act SuRvey pty LtdSurvey Services - Hawker Shops Feb-11 22,500 Single Select

act SuRvey pty LtdSurvey Services - multiple contracts nov-10 24,280 Select tender

aecom auStRaLIa pty Ltdplanning Strategy - canberra Brickworks nov-11 6,873 Single Select

aecom auStRaLIa pty Ltd design Review panel Jul-10 11,540 Single Select

aecom auStRaLIa pty Ltddesign options Study - parkes 6/3

Sep-10 20,226 Select tender




Cost $ (GSt exc)

procurement Method

aecom auStRaLIa pty LtdSite Investigation - nicholls 9/78

Jul-10 20,780 Select tender

aecom auStRaLIa pty Ltdplanning and engineering Services - Bonner Stage 1a

aug-07 22,044 open tender

aecom auStRaLIa pty LtdFeasibility Study and Survey - canberra Brickworks

Feb-11 29,526 Single Select

aecom auStRaLIa pty Ltdenvironmental compliance - Kingston Foreshore 1st edition

apr-11 32,945 Select tender

aecom auStRaLIa pty LtdSustainability Strategy - Section 5 campbell


aecom auStRaLIa pty Ltdenvironmental management Services - Kingston Foreshore

may-08 39,241 Select tender

aecom auStRaLIa pty LtdLandscape design Services - greenway

Jun-11 49,850 Select tender

aecom auStRaLIa pty Ltdplanning & engineering Services Franklin Stage 3a & 3B

mar-08 79,481 open tender

aecom auStRaLIa pty Ltdplanning - Section 5 campbell

Feb-11 88,670 Select tender

aecom auStRaLIa pty Ltdproject validation and Site audit - Kingston Foreshore


aecom auStRaLIa pty Ltdenvironmental program manager - Kingston Foreshore

aug-10 144,219 Select tender

aecom auStRaLIa pty Ltdenvironmental compliance - Kingston Foreshore

oct-08 197,238 Select tender

aLLteRRaIn BoBcat SeRvIceS

environmental contamination Services - Kingston Foreshore

Jul 09 - nov 10

38,336 Single Select

antHony QuInn SuRveyS pty Ltd

Survey Services - multiple contracts

Jul10-Jun11

176,325 Select tender

aSBeStoS aBatement conSuLtantS

environmental Services - Kingston Foreshore


auRecon auStRaLIa pty Ltd

Site Investigation - multiple contracts

nov10 - nov11





Cost $ (GSt exc)

procurement Method

auRecon auStRaLIa pty Ltd

Remediation - Belconnen Sewage plant

apr-10 229,498 Single Select

auStRaLIan BuSHFIRe pRotectIon pLanneRS pty Ltd

Bushfire Risk assessment - multiple contracts

Jul10-Jun11


auStRaLIan vaLuatIon oFFIce

valuation ServicesJul-Jun11

6,471 Select tender

BIoSIS ReSeaRcH pty Ltd Reptile Servey nov-10 134,994 Select tender

BRoWn conSuLtIng (act) pty Ltd

Landscape design and Superintendency - multiple contracts

Jul03 - nov09

6,921 open tender


Site Investigation - Barton

dec-10 26,250 Select tender


Infrastructure Services Review - moncrieff

Jan-11 32,640 Select tender


design and Superintendency - gungahlin town centre



engineering Services - multiple contracts

aug06-may11



project management - new West

Jan-11 46,000 open tender


estate development plan and detail design - Flemington Road

dec-08 49,093 open tender





planning Services - amaroo group centre



Site management and Superintendency - Harrison 4 estate

mar-11 131,526 tender


planning Study and Site Investigation - dickson



engineering Superintendency - Bonner 2 estate

oct-09 441,746 open tender


planning and engineering Services Bonner 4 estate

Feb-10 520,402 open tender




Cost $ (GSt exc)

procurement Method


planning and engineering - Harrison Four estate


capItaL vaLueRS pty Ltd valuation ServicesJul-Jun11


capItaL WoRKS conSuLtIng pty Ltd

project delivery and Business plan - amaroo group centre

nov-10 28,560 Select tender


planning Services - Woden town centre



project management Services - Woden town centre

Jan-11 169,976 Single Select

caRdno young pty Ltdengineering Services - multiple contracts

nov09 - apr11


caRdno young pty LtdSite Investiation - multiple contracts


caRdno young pty LtdRemediation - Belconnen Sewage plant

nov-09 66,745 open tender

caRdno young pty Ltddesign and Superintendency - gungahlin town centre


caRdno young pty Ltdplanning and engineering - Hume West


caRdno young pty Ltdplanning and engineering Services - Lawson South


caRdno young pty LtdSite management - Wright


caRdno young pty Ltd

planning and engineering consul-tancy - coombs and Wright

dec-09 1,367,410 open tender

cB RIcHaRd eLLIS pty Ltdplanning and Feasibility Services - multiple contracts

Jul - Jun 11


cB RIcHaRd eLLIS pty Ltdplanning - gungahlin town centre

nov-11 36,973 Single Select

cB RIcHaRd eLLIS pty Ltdplanning Services - greenway





Cost $ (GSt exc)

procurement Method

cB RIcHaRd eLLIS pty Ltd valuation ServicesJul-Jun11


cHamBeRLaInS LaW FIRm pty Ltd

Legal adviceJul10 - Jun11


cIRRuS StRategIeS project management nov-09 89,500 Single Select

cLaRKe and dI pauLI SuRveyoRS




Survey Services - moncrieff



Survey Services - Jacka nov-10 74,050 Select tender

cLayton utZ Legal adviceJul-Jun11


coFFey geotecHnIcS pty Ltd

geotechnical Investigation - dunlop 5 West


coFFey geotecHnIcS pty Ltd

geotechnical Investigation - ngunnawal 2c

mar-11 22,591 Single Select

coFFey envIRonmentS pty Ltd

environmental assessment - nicholls 19/73



environmental assessments - multiple contracts

Sep10 - mar11



environmental Site assessment - Lawson South



environmental Site assessment - ngunnawal 2c



contamination assessment - Jacka


coLLIeRS InteRnatIonaL conSuLtancy and vaLuatIon pty LImIted



coLLInS caddaye and aRcHItectS

architectural Services may-11 22,200 Select tender

coX aRcHItectuRe pty Ltd

urban design - phillip Section 3





Cost $ (GSt exc)

procurement Method


masterplan - phillip Section 105



planning and design Services - multiple contracts



architectural Services - phillip Section 9


davId Hogg pty LtdSurvey & environmen-tal Services - B799 gungahlin

dec-09 34,254 Select

davId Hogg pty Ltdenvironmental assessments - multiple contracts

dec 09 - may 11


deeBLe B and c pty Ltd Site Servicing mar-10 275,053 Select tender

deLoItte toucHe toHmatSu

taxation adviceJul-Jun11


dKo aRcHItectuRe pty Ltd

planning Services - molonglo


dKo aRcHItectuRe pty Ltd

masterplan - moncrieff nov-09 39,000 Select tender

doma pRoJectS pty Ltd energy costs Jun-11 24,039 Single Select

dougLaS paRtneRS pty Ltd

environmental Services - multiple contracts

Feb-apr11



contamination assessment - Harrison 4



environmental Site assessment


dSB paRtneRS pty Ltdvegetation assessment - yarralumla Brickworks


dSB paRtneRS pty LtdLandscape design and assessments - multiple contracts

mar 10 - Jan 11

36,330 open tender

dWyeR conSuLtantS pty Ltd

project management Jul-10 101,530 Single Select

dZ deSIgnS Landscape design Jan-10 50,909 Select tender

eco LogIcaL auStRaLIa pty Ltd

environmental Services - molonglo valley


egan natIonaL vaLueRS act

valuation ServicesJul- Jun 11





Cost $ (GSt exc)

procurement Method

eLton conSuLtIng gRoup pty Ltd

planning & community engagement - multiple contracts

nov 10 - mar 11


eLton conSuLtIng gRoup pty Ltd

planning Strategy - canberra Brickworks

mar-10 175,194 Select tender

engLoBo gRoup ventuRe

asbestos Removal - Kingston Foreshore

may-11 143,899 Single Select

envIRonmentaL ReSouRceS management auSt

contamination assessment - multiple contracts

Jun-dec10



environmental assessment - Harbour civil Works



Strategic environmental management Services - Kingston Foreshore


FendeR KatSaLIdIS (auSt) pty Ltd

urban design and Review - multiple contracts

mar-Jun10


FouR WaLLS and a RooFSustainability Strategy - molonglo

dec-09 44,978 Single Select

g e SHaW and aSSocIateS (act) pty Ltd

Landscape design - Bonner

Jun-10 29,175 Single Select

gHd pty LtdRemediation & audit Services - multiple contracts

Sep-dec10


gHd pty Ltdconcept design - Kingston Foreshore


gHd pty LtdLandscape Superintedence - Harrison

Jul-06 27,939 open tender

gHd pty LtdSite Investigation - multiple contracts


gHd pty LtdWorking Harbour consultancy - Kingston Foreshore


gHd pty Ltd

driveway and Landscape Superintendency - metros





Cost $ (GSt exc)

procurement Method

gHd pty LtdFlood Study - charnwood


gHd pty Ltdplanning and engineering - Fyshwick Section 26


goLdeR aSSocIateS pty Ltd

Site audit Services - Kingston Foreshore


goLdSmItH cIvIL & envIRonmentaL

Landfarm pad construction & farming


gRIFFItHS conSuLtantSproject management Services


gta conSuLtantSSustainable transport Strategy - greenway


gta conSuLtantSparking and traffic Study - Woden Section 3

oct-10 26,989 Single Select

gta conSuLtantSparking & access - Woden Section 9


gta conSuLtantStransport and traffic planning - multiple contracts

Jul10-may11


gta conSuLtantSmasterplan - Woden town centre


HaRRIS HoBBS LandScapeS

tree assessments and Removal - multiple contracts

Jun10 - Jul-11


HayS SpecIaLISt RecRuItment auStRaLIa pty Ltd

Recruitment Services nov-11 8,889 Single Select

HayS SpecIaLISt RecRuItment auStRaLIa pty Ltd

Financial Services may-10 287,086 Single Select

HeggIeS pty Ltdcontamination Study - moncrieff


HeRRon todd WHIte canBeRRa pty Ltd



HILL tHaLIS aRcHItectS & uRBan pRoJectS pty Ltd

urban design - multiple contracts

dec10 - Feb11








Cost $ (GSt exc)

procurement Method


concept design - cultural precinct Kingston Foreshore




may-10 262,088 open tender

HugHeS tRueman pty Ltd


Jul-10 16,160 Select tender


Site Investigation - nicholls 19/73



Infrastructure Works geotechnical Study - Kingston Foreshore


Ian c mILLS pty Ltdproject management Services

Jul-10 112,500 Single Select

IndeSco pty LImItedSite Investigation - Watson 2-3/95


IndeSco pty LImItedSpecification and technical exceptions clauses Review


IndeSco pty LImItedSite Investigation - multiple contracts

Sep10 - Feb11


IndeSco pty LImItedSite Investigation - multiple contracts


IndeSco pty LImItedplanning and engineering consutlancy - Jacka


IndeSco pty LImItedplanning and engineering consultancy - Bonner 3


IntegRaL SeRvIceS gRoup pty Ltd



IRWIn and HaRtSHoRn pty Ltd

Remediation Services - ngunnawal 2c


Itecproject management Services


J eaStHope and aSSoc pty Ltd

planning and certification Services - multiple contracts

Jul10 - Jun11


JoneS Lang LaSaLLe auSt pty Ltd






Cost $ (GSt exc)

procurement Method

KIneSIS pty LtdSustainability targets - amaroo group centre


KIneSIS pty LtdSustainable urban design plan - molonglo


Land data SuRveyS pty Ltd

Survey - canberra Brickworks


Land data SuRveyS pty Ltd

Survey Services - greenway


LInK coRpoRate SeRvIceS pty Ltd

Financial Services Jul-10 158,956 Single Select

LoveLL cHen pty Ltdconservatio management plan - canberra Brickworks


macRopLan auStRaLIa pty Ltd

market assessment and construction options - multiple contracts

mar-Jul10


macRopLan auStRaLIa pty Ltd

Retail and viability assessment - Hawker


maIL mcdonaLd BaRnSLey pty Ltd



manteena pty LtdBoat Harbour project management - Kingston Foreshore


meLInda dodSon aRcHItectS

architectural and planning Services - multiple contracts

nov-dec10


meyeR vandenBeRg LaWyeRS

Legal adviceJul-Jun11


mmJ ReaL eState valuation ServicesJul-Jun11


mott macdonaLd HugHeS tRueman

Site Investigation apr-11 29,460 Select tender

mott macdonaLd HugHeS tRueman

geotechnical Infrastructure Works - Kingston Foreshore


navIn oFFIceR HeRItage conSuLtantS

Heritage Investigations - multiple contracts


noRtHRop conSuLtIng engIneeRS

Site Investigation oct-10 3,500 Select tender




Cost $ (GSt exc)

procurement Method

noRtHRop conSuLtIng engIneeRS

Structural advice - Kingston Foreshore


open LIneS envIRonmentaL conSuLtIng

concept plan - moncrieff


oXIgen pty tLdLandscape consultancy - Kingston Foreshore

oct09 - nov10


oXIgen pty tLd

detail design and construction Superitendency - canal pedestrial Bridge


oXIgen pty tLdLandscape masterplan - KF


oXIgen pty tLdLandscape consutlancy - Wright


oXIgen pty tLddetail design & Superintedency - Kingston Harbour

aug-10 416,000 Single Select

pHILIp LeeSon aRcHItectS pty Ltd

childcare options - amaroo group centre



conservation management plan - Kingston Foreshore



architectural Services - Former transport depot - Kingston Foreshore



urban design Study - Kingston Foreshore


pRIce WateRHouSe coopeRS

taxation/gSt adviceJul-Jun11


pRoJectum pty Ltdaudit Services - multiple contracts

aug09 - Jan11


pRoJectum pty Ltdproject delivery Systems


pRovIdence conSuLtIng gRoup

engineering Services nov-10 45,650 Single Select

puRdon aSSocIateS pty Ltd

planning advice - multiple contracts



precinct code - Kingston Foreshore





Cost $ (GSt exc)

procurement Method


Site Investigations may-10 97,769 Select tender


estate development plan - Woden Section 9


R d goSSIp pty Ltd Site Investigations nov-10 139,325 Select tender

RedBoX deSIgn gRoup pty Ltd

Landscape consultancy - Harrison 2

nov-08 310 open tender


Landscape consutlancy - Harrison 3



Landscape consutlancy - Franklin

aug-07 99,747 open tender


Landscape consultancy - Bonner

Sep-09 126,642 open tender

RIdeR Levett BucKnaLLcost analysis - Kingston Foreshore


RoBeRtS day gRoup pty Ltd

concept design - amaroo group centre


RoBeRtS day gRoup pty Ltd

planning and urban design - casey 4


RoBSon envIRonmentaLasbestos monitoring - Kingston Foreshore


RoBSon envIRonmentaLSurvery Services - multiple contracts


RoBSon envIRonmentaLasbestos monitoring - Wright


SavILLS act pty Ltd valuation ServicesJul-Jun11


ScenIc LandScape aRcHItectuRe pty Ltd

Landscape design - dickson


ScenIc LandScape aRcHItectuRe pty Ltd

Landscape design - moncrieff


SgS auStRaLIaenvironmental Services - Kingston Foreshore


SgS economIcS and pLannIng pty Ltd

Financial assessment of parking Study


Smec auStRaLIa pty Ltd

Feasibility Study - eastlake parade cycle path - Kingston Foreshore

may-10 20,390 Single Select




Cost $ (GSt exc)

procurement Method

Smec auStRaLIa pty LtdSite Investigation - multiple contracts


Smec auStRaLIa pty Ltdcompliance consultancy - Kingston Foreshore


Smec auStRaLIa pty Ltdvalidation and Site audit - Kingston Fore-shore package 3


Smec auStRaLIa pty Ltd

Superintendence and Surveillance - Flemington Road Stage 2a


Smec auStRaLIa pty Ltdplanning Strategy - yarralumla Brickworks


Smec auStRaLIa pty Ltddevelopment project compliance consultancy - KF


Smec auStRaLIa pty Ltdengineering, planning & Landscape design - Flemington Road


SpHeRe pRopeRty coRpLand economist consultancy - yarralumla Brickworks


StaFFIng and oFFIce SoLutIonS pty Ltd

temporary and contract Staff - multiple contracts



temporary and contract Staff










Sep-10 25,571 Single Select
















Cost $ (GSt exc)

procurement Method

tHe eXpeRt cLIent pty Ltd

design Review panel Jul-10 618 Single Select


Site Investigation and planning - oaks estate



planning Services - multiple contracts

Feb10 - Jan11



planning Services - Hawker



planning Services - amaroo group centre


tRact conSuLtantS pty Ltd

Landscape architecture design Study - Woden town centre


tReadStone company pty Ltd

project management Services


vaLLey dRIve pty LtdSustainability advice - Wright


vIRIdIS e3 pty LtdSustainability advice - Woden Section 9


vIRIdIS e3 pty LtdeSd Rebate Scheme - Hume West


WaLKeR engIneeRIng & dRaFtIng SeRvIceS

project management Services


WILde & WooLLaRd conSuLtantS pty Ltd

project cost Study - amaroo



construction estimate - coombes demo precinct



estate development and project costing

oct10 - Feb11


WInton SuStaInaBLe ReSeaRcH StRategIeS pty Ltd

Redevelopment Survey - Hawker


WInton SuStaInaBLe ReSeaRcH StRategIeS pty Ltd

community consultation - Brickworks




ConStRuCtIon – RelAteD WoRkS ContRACtSthe Lda used the following external sources of labour and services for construction activities.

these contracting entities were all selected in accordance with the Government Procurement Act

2001 and Government Procurement Regulation 2007.

no contracts were established with non pre-qualified contractors, where prequalification

categories exist.


Cost $ (GSt exc)

aBLe LandScapIng pty LtdLandscape construction - Bonner display village Jan-10 54,172.80

acteWagL dIStRIButIonelectrical Infrastructure construction

Jan-apr-11

31,150.68

acteWagL dIStRIButIonelectrical Infrastructure construction - Harrison 4 estate

may-11 33,497.20

acteWagL dIStRIButIonelectrical Infrastructure construction - Bonner 3 estate

may-Jun-11

372,910.53

acteWagL dIStRIButIonelectrical Infrastructure construction - Kingston Foreshore

Jul-10-mar-11

593,753.21

acteWagL dIStRIButIonelectrical Infrastructure construction - Bonner 2 estate

Sep-10 - Feb-11

1,695,656.85

Bmd conStRuctIonS pty Ltd

civil Works construction - new West

mar-11 1,718,117.11


civil Works construction - Flemington Road

Feb-11 2,828,308.30


civil Works construction - Kingston Foreshore

dec-10 5,272,331.45


civil Works construction - Bonner 3 estate

Sep-10 8,509,507.42

BoSt pty Ltdcivil Works construction - gungaderra creek cycleway

apr-10 503,651.28

canBeRRa contRactoRS pty Ltd

civil Works construction - Bonner 2

mar-10 4,997,496.30

canBeRRa unIted LandScapeRS

Landscape constructionaug01 - Feb11

14,600.40


Landscape construction - yerrabi 2

may-05 31,538.00


Landscape construction - Bonython West

aug-07 40,861.00




Cost $ (GSt exc)


Landscape construction - Harrison 3

oct-06 66,500.00


Landscape construction - gungahlin

Sep-10 178,221.83


driveway and Landscape construction - gungahlin town centre

aug-08 297,812.50

cHIncIvIL pty Ltdcivil Works construction - Bonner

Jul-08 111,776.39

cHIncIvIL pty Ltdcivil Works construction - gungahlin town centre

Sep-09 957,185.22

cHIncIvIL pty Ltdcivil Works construction - Harrison 4

mar-11 1,814,199.38

cIvIL WeRXS pty Ltd defects Rectification - FranklinJul-oct-10

26,975.00

cIvIL WeRXS pty Ltd defects Rectification - Bonner 1a Feb-11 66,020.44

daLe and HItcHcocK cIvIL engIneeRIng and LandScapIng pty Ltd

Landscape construction - Kingston Foreshore

Jul-09 1,818.18

daLe and HItcHcocK cIvIL engIneeRIng and LandScapIng pty Ltd


oct-06 47,581.82

deLFIn caSey-2 pty LImItedBulk Water main extension - casey 3

Jun-11 203,413.92

gRoup one pty Ltdcivil Works construction - Franklin

may-10 1,874.86

gRoup one pty Ltddefects Rectification Works - Bonner 1B

apr-10 65,877.57

gRoup one pty Ltdcivil Works construction - Bonner 2

dec-09 3,726,663.53

gRoup one pty Ltdcivil Works construction - Wright

Jan-11 6,571,414.76

HaWKInS cIvIL engIneeRIng pty Ltd

pedestrian/cycle Bridge construction - Kingston Foreshore

apr-11 101,454.20

HeWatt eaRtHWoRKS pty Ltd

Stockpile transportation - Kingston Foreshore

Sep-10 361,182.22

Huon management SeRvIceS pty Ltd

civil Works construction - Harrison 4

mar-11 1,585,217.18

Huon management SeRvIceS pty Ltd

civil Works construction - Fyshwick Section 26

aug-10 4,760,479.95




Cost $ (GSt exc)

KenoSS contRactoRS pty Ltd

civil Works construction - Bonner 1

Jul-10 135,175.72

LIttLeWoodS cIvIL contRactIng pty Ltd

civil Works construction - Franklin

Sep-10 23,005.18

LIttLeWoodS cIvIL contRactIng pty Ltd

Stormwater and Sewer ties - Bonner

aug-10 - may-11

94,554.60

macmaHon contRactoRS pty Ltd

Harbour civil Works - Kingston Foreshore

may-07 37,414.23

maRSupIaL LandScape management pty Ltd

Landscape construction - Franklin

Jun-08 12,266.72


Landscape construction - Franklin 3

may-09 43,954.00


Landscape construction - Bonner 1

nov-09 77,628.60


Landscape construction - gungaderra creek

may-10 1,502,837.67

mILIn BRoS BuILdeRS pty Ltd

Landscape construction - Footpath - Franklin 1/96

Jul-10 25,096.50

pauL aBBey conStRuctIonS pty Ltd


dec-09 70,784.85

pyRamId coRpoRatIon pty Ltd

Landscape construction - Bonner open Space

may-11 106,780.00

pyRamId coRpoRatIon pty Ltd

Landscape construction - Bonner School Site

Jun-10 151,422.50

Ram conStRuctIonSLandscape construction - multiple contracts

may-11 79,939.98

Ram conStRuctIonSLandscape construction - dunlop 4 east

Sep-08 109,584.54

Ram conStRuctIonSLandscape construction - Bonner 1B Stg 1

Jul-09 482,746.05

Ram conStRuctIonSLandscape construction - Bonner 1B Stg 2

may-10 1,735,103.01

SImeonov cIvIL engIneeRIng act pty Ltd

Remediation - Belconnen Sewage plant

dec-10 57,465.00

SImeonov cIvIL engIneeRIng act pty Ltd

civil Works construction - gungahlin town centre

Jun-10 987,794.58

SuRRoundScapeS (act) pty Ltd

Landscape construction - Franklin

oct-10 76,523.36

teLStRa coRpoRatIon Ltdcommunications Infrastructure Relocation - Fyshwick Section 26

Sep-10 233,489.97




Cost $ (GSt exc)

tRanSact capItaL communIcatIonS pty Ltd

Broadband Infrastructure - Fyshwick Section 26

aug-10 30,000.00


communications Infrastructure relocation - Kingston Foreshore

Sep-10 141,020.69


Broadband Infrastructure - Franklin

Jun-oct-10

394,298.45


Broadband Infrastructure - Bonner

mar-10 411,400.00

Woden contRactoRS pty Ltd

civil Works construction - dunlop 5

oct-08 57,635.00


civil Works construction - Bonner 3c

nov-10 3,675,611.58


civil Works construction - Bonner 3a

Jul-10 8,402,356.13



c15. coMMUnITy GranTs/assIsTance/sPonsorsHIP

no. organisation/ Recipientproject Description/process/ period of time engaged

outcomes Amount

1chief ministers’ department Live in canberra campaign

Sponsorship of the Live in canberra campaign. this is an ongoing sponsorship renewed every 12 months.

Inclusion of Lda marketing material in Live in canberra packs.

$5,500

2Woden valley community Festival

Sponsorship of the Woden valley community Festival. this is an annual event.

provision of Lda marketing material which was handed out at the Festival.

$2,000

3 planning Institute of australia (pIa)

Sponsorship of the pIa national congress.

Recognition of the Lda in conference materials and during presentations.

$2,000

4canberra organic growers Society (cogS)

Sponsorship of the cogS community gardening Society conference.

Recognition of the Lda in conference materials and signage at the event.

$2,500



c16. TerrITory recorDs

the Lda complies with the requirements of the Territory Records Act 2002 (tRa) through the

Lda Records management program (Rmp). the Lda Rmp includes Records management policy

and procedures in addition to the agency thesaurus and Records disposal Schedules. these

documents have been approved by the Lda ceo and the director of territory Records and

disseminated to staff. over the coming year the Rmp will be reviewed to ensure currency as

required by legislation

Records management awareness and training is ongoing and also forms part of the Lda’s

induction package.

the Lda’s thesaurus uses Keyword aaa (tvKaaa) terms to title records.

the territory administrative Records disposal Schedule (taRdIS) is used to manage disposal of

administrative records and agency specific records are managed in accordance with the following

instrument:

Records Disposal Schedule effective year and no.

Land development Records 21 april 2006 nI2006-136

the Lda has in place arrangements for preserving records containing information that may allow

people to establish links with their aboriginal or torres Strait Islander heritage.

If any such record is created, received or discovered, the Lda endorses the relevant file with the

notation ‘File contains records with aboriginal or torres Strait Islander heritage information—do

not destroy’. Records so annotated have their disposal status amended accordingly by the Lda

Records manager.

public access provisions of the tRa allow access to records over 20 years old.

members of the public can seek access to the Lda’s records by contacting:

Archives ACT

gpo Box 158

canBeRRa act 2601

tel: (02) 6207 5726 (Reference archivist)

tel: (02) 6205 3510 (public access Support officer)

Fax: (02) 6207 5835

Website: www.archives.act.gov.au

email: archives@act gov.au



By maintaining an approved register of section 28 declarations the Lda complies with the tRa

which allows a declaration to be made in relation to a document classed as an exempt document

under prescribed provisions of the Freedom of Information Act 1989.

access to a record to which a declaration applies is prohibited under the tRa.



c17. HUMan rIGHTs acT 2004

under section 40 of the Human Rights Act 2004 the Lda and its employees are public authorities.

the majority of the Lda’s functions involve commercial relationships with business entities.

the Lda discharges those functions in accordance with its obligations under section 40B of the

Human Rights Act 2004 whereby it is unlawful to act in a way that is incompatible with a human

right or, in making a decision, to fail to give proper consideration to a relevant human right.

In its interactions with individuals, primarily through land sales, the Lda applies clear and

transparent sale processes to protect the rights of all parties. It also provides comprehensive

pre-sale material to intending purchasers that fully informs them of all relevant issues. In all its

dealings with staff, members of the public and the business community, the Lda acts in a way

that takes its responsibilities into account and is respectful of human rights.



c18. coMMIssIoner for THe enVIronMenT

the Lda continued working with other act government directorates to implement the

recommendations relating to the Lda of the commissioner for the environment’s Report on ACT

Lowland Native Grassland Investigation delivered in march 2009.

the Lda provided input to the act State of environment Report 2011.

the Lda assisted the commissioner to address complaints including those in relation to land

development.

the Lda continues to support the commissioner’s inquiries and investigations and provided input

into the commissioner’s Investigations of:

• the government’s tree management practices and renewal of canberra’s urban Forest

Investigation; and

• canberra nature parks (nature Reserves): molonglo River corridor (nature Reserves) and

googong Foreshores Investigation.

there were no other requests or recommendations affecting the Lda under section 23 of the

Commissioner for the Environment Act 1993.



c19. acT MUlTIcUlTUral sTraTeGy 2010-13

the act multicultural Strategy 2010-13 provides a shared framework for act government

agencies to work towards a common goal and an integrated government response to

multicultural issues in the community. the Lda contributes to the outcomes of the strategy

through implementing activities, indicated under the relevant themes below, and is committed

to the ongoing process of furthering work in these areas.

focus Area progress

Languages

the Lda continues to promote service accessibility to people with multicultural backgrounds through a range of language-targeted activities, including the provision of a link to the interpreter services on each page of the Lda website. this links to the cSd website available at www.dhcs.act.gov.au/home/translation

the Lda is also working toward including this information on all new brochures.

children and young people

during the 2010-11 reporting period, the Lda coordinated a number of events aimed at families with young children. these include:

• christmas in gungahlin;

• an easter egg hunt in Franklin (mingle); and

• coffee and muffin days held in local parks in Franklin as

part of the mingle program.

Lda public areas such as the head office reception area and the Bonner Living Showcase Information centre include resources such as books and toys for children.

Intercultural Harmony and Religious acceptance

Lda staff participated in the pilot of the edd cultural awareness training program and work has commenced on an on-going program for all staff.



c20. aborIGInal anD Torres sTraIT IslanDer rePorTInG

the Lda continued to support the Whog approach to indigenous policy. It again participated in

the act Indigenous traineeship program administered by the cSd multicultural, aboriginal and

torres Strait Islanders affairs unit.

one Lda trainee graduated in august 2010 and was promoted to a position in the development

division. another trainee commenced in the 2011 cohort and will be promoted to a permanent

position on successful completion of her traineeship.

the Lda engaged Indigenous artist duncan Smith, to create a mural for display at the Bonner

Living Showcase. With the assistance of students from amaroo School, mr Smith created the

mural entitled “yerrabi ponds” which depicts the area as a meeting place for the Indigenous

gungahlin community.



c21. ecoloGIcally sUsTaInable DeVeloPMenT

In 2010-11 the Lda incorporated the principles of ecologically sustainable development into its

activities in line with government requirements and the Lda SoI.

the Lda has continued to implement its Sustainability and Innovation Framework and has

continued a process of embedding elements into the key business processes of the Lda. the

Framework addresses environmental, social and economic aspects of Lda’s developments.

during 2010-11 the Lda undertook the following initiatives:

InteGRAteD SuStAInABIlIty InItIAtIVeS

• achieved envirodevelopment certification, attained in four categories, for Wright and

coombs (see case study at end of Section).

• Worked with the green Building council australia to develop the green Star communities

tool.

• Introduced a voluntary ‘best practice’ environmentally Sustainable design (eSd) rebate

scheme for the new West industrial development.

eneRGy

• maximised the solar orientation of all blocks, within the constraints of topography and

major roads, in Lawson and Harrison 4, with new solar envelope guidelines introduced for

land releases in Wright

• Solar hot water heating mandated in Harrison 4.

• Initiated and demonstrated the installation of energy efficient compact fluorescent

streetlights in Bonner and Harrison 4 in conjunction with actewagL and tamSd.

• Included energy efficiency and sustainability requirements in project delivery

agreements for multi unit sites on Flemington Road and in Wright, including relating to

star ratings and energy efficiency fixtures and fittings.

WAteR

• Incorporated Water Sensitive design principles through the use of swales, bioretention

basins, water quality control ponds, tree pits and rain gardens for street trees in Lda

estates.

• developed infrastructure for non potable water to be used to irrigate public open space.



BIoDIVeRSIty

• Identified and protected rare and threatened species and communities in our estates in

compliance with act legislation and the commonwealth epBc act, including funding

ecological surveys.

• active engagement in the Bush on the Boundary groups in gungahlin and molonglo

valley.

• provided funding for anu scholarships on social perspectives of nature reserves and

developing urban areas” and on habitat maintenance in developing areas.

tRAnSpoRt AnD CoMMunICAtIonS

• Facilitated higher density developments close to major transport routes, such as

Flemington Road and John gorton drive to support transit oriented development.

• Supported alternative business and work from home options by providing fibre to the

premises for in new suburbs.

CoMMunIty DeVelopMent

• Supported community development programs, such as ‘mingle’ in Franklin.

HouSInG AffoRDABIlIty

• provided access to affordable housing through ownplace and the Land Rent Scheme, and

through engagement with community Housing canberra (cHc).

In ouR oWn opeRAtIonS

• achieved reaccreditation from eSdd (formerly known as decceW) under the act Smart

office program for our internal waste management systems.

• utilised oScaR, to gather and report on internal energy, water, water and greenhouse

data.

• established a working group to oversee a Supply chain environmental Reporting System

to develop enhanced performance indicators, as suggested in the act auditor general’s

office of the performance audit Report on Residential Land Supply and development.

CASe StuDy - MolonGlo VAlleyduring 2010-11 the Lda achieved certification under the urban development Institute of



australia’s (udIa) envirodevelopment program for Wright and coombs, the first suburbs to

be developed in molonglo valley. the Lda received accreditation in the elements of energy,

Waste, community and ecosystems, placing them amongst the most sustainable developments

in australia. Wright and coombs are also the largest project in australia to date to earn

envirodevelopment status.

the Lda’s application for certification for Wright and coombs is based on actions already

undertaken by the Lda as well as commitments to initiatives that will contribute to meeting the

envirodevelopment Standards for the act. these actions and initiatives exceed what is required

under the current regulatory framework in the act. a development’s application for accreditation

is assessed by the udIa’s envirodevelopment Board of management. the development is

required to report annually to the udIa on progress on the implementation of the initiatives, and

data which monitors progress towards the targets. Independent audits will be undertaken by

the udIa to ensure developments are meeting targets and to ensure the integrity of the scheme.

more information can be found at www.envirodevelopment.com.au

Some examples of LDA initiatives in the energy, waste, community and ecosystems categories in

Wright and Coombs include:

• the establishment of a Home Sustainability advisory Service which offers Buyers free

one-on-one sessions with a dedicated Home Sustainability advisor to help reduce their

carbon footprint. this service includes advice about incorporating sustainability measures

into new homes during the design stage. In particular, all new homes in Wright must

meet criteria contained within the Wright Housing development guide. the Home

Sustainability advisor will help guide residents through the design process to ensure

these standards are met.

• Implementing new waste management requirements in the civil construction contracts

which commit contractors to maximise on-site reuse and processing of construction

waste, and minimise the amount sent to landfill by recycling materials for use elsewhere.

For example, construction waste can be recycled into products such as brick rubble and

timber mulch for use in backyards and other developments.

• the extension of the Lda’s mingle community development program to molonglo valley.

mingle aims to build vibrant, cohesive communities in new Lda estates through a range

of fun activities, including ‘meet the neighbours’ events, welcome programs, community

working groups and neighbourhood Watch involvement. the program has been a big

success in Franklin and is being developed in Bonner, where it is helping new residents

get to know each other and feel more at home in their new suburb. mingle in molonglo

valley will be launched when the first residents begin arriving in Wright and coombs

from 2012, and is planned to incorporate plenty of fun family events and community

building activities.

• the protection of pink-tailed Worm Lizard (aprasia parapulchella) habitat and the

preparation of a comprehensive Riparian management Strategy to inform the

rehabilitation and regeneration of the molonglo River corridor. the pink-tailed

Worm Lizard is listed as vulnerable under the Environment Protection and Biodiversity

Conservation (1999) Act.



c22. acT WoMen’s Plan 2010-15

the ACT Women’s Plan sets out the act government’s vision for working with the community to

improve the status of all females, and provides a shared approach for working towards this vision

across act government agencies.

the Lda contributed to the achievement of the plan’s objectives as described below:

eConoMICthe Lda remains committed to supporting and encouraging learning and development

opportunities for all of its employees.

Study assistance to our female staff is available to support their professional development.

the Lda offers a scholarship for women enrolled at the university of canberra in the degree

course Building and construction management/urban and Regional planning.

SoCIAlthe Lda workforce includes 54 per cent females.

Staff are encouraged to attend training courses which are designed to promote a safe and

healthy work environment. the Respect, equity and diversity Framework addressing respectful

behaviour in the workplace has been published on the Lda Intranet and all staff are currently

undergoing awareness training.

the Lda continued its implementation of the act government’s Work and Life Balance policy

by recognising and supporting family friendly initiatives for female employees, including

arrangements for flexible part time employment, positively managing maternity/parental leave,

and by providing space and accommodation for nursing mothers and a carers room for children.

as part of the mingle events organised by the Lda, families including females were involved in

a series of events and activities including a family easter egg hunt, coffee and muffin day and

Family community day.

enVIRonMentAlthe Lda has a number of women involved on committees and working groups which contribute

to urban planning and our sustainable environment.

more information on the act Women’s plan can be access at www.women.act.gov.au or phone

the act office For Women on (02) 6207 0961.

Land development agency AnnuAl RepoRt 2010 - 11 267Land development agency AnnuAl RepoRt 2010 - 11 267

c23 MoDel lITIGanT GUIDelInes

The Law Officer Act 1992, Section 5aa, requires all agencies to comply with the Law officer

(model Litigant guidelines 2010 (no1). the model litigant guidelines apply to all territory legal

work, including conduct that may lead to litigation in the future, even if advice has not been

sought from the act government Solicitor’s office (gSo).

the gSo conducted all the Lda’s litigation during 2010-11 and in doing so applied the model

Litigant guidelines to its practice.

no breaches of the model litigant guidelines by the Lda occurred in 2010-11


coMPlIance InDex

transmittal certificate iii

glossary of acronyms vii

Section A - performance and financial Management Reporting 1

a.1 the organisation 2

a2 – a4 overview, Highlights and outlook 9

a5 management discussion and analysis 18

a6 Financial Report 29

a7 Statement of performance 167

a8 Strategic Indicators 178

a9 analysis of agency performance 179

a10 triple Bottom Line Report 186

Section B - Consultation and Scrutiny Reporting 191

B1 community engagement 192

B2 Internal and external Scrutiny 194

B3 Legislative assembly committee Inquiries and Reports 197

B4 Legislation Report 198

Section C - other Reporting 201

c1 Risk and management and Internal audit 202

c2 Fraud prevention 203

c3 public Interest disclosure 204

c4 Freedom of Information 205

c5 Internal accountability 210

c6 Human Resource performance 219

c7 Staffing profile 222

c8 Learning and development 226

c9 Workplace Health and Safety 228

c10 Workplace Relations 230

c11 Strategic Bushfire management plan 232

c12 Strategic asset management 233

c13 capital Works 235

c14 government contracting 238

c15 community grants/assistance/Sponsorship 256

c16 territory Records 257

c17 Human Rights act 2004 259

c18 commissioner for the environment 260

c19 act multicultural Strategy 2010–2013 261

c20 aboriginal and torres Strait Islander Reporting 262


c21 ecologically Sustainable development 263

c22 act Women’s plan 2010–2015 266

c23 model Litigant guidelines 267


alphabetical Index 270


alPHabeTIcal InDex

aboriginal and torres Strait Islander Reporting 262

act multicultural Strategy 2010–2013 261

act Women’s plan 2010–2015 266

analysis of agency performance 179

capital Works 235

commissioner for the environment 260

community engagement 192

community grants/assistance/Sponsorship 256


consultation and Scrutiny Reporting 191

ecologically Sustainable development 263

Financial Reports 29

Fraud prevention 203

Freedom of Information 205

glossary of acronyms vii

government contracting 238

Human Resource performance 219

Human Rights act 2004 259

Internal accountability 210

Internal and external Scrutiny 194

Learning and development 226

Legislation Report 198

Legislative assembly committee Inquiries and Reports 197

management discussion and analysis 18

model Litigant guidelines 267

outlook 9

other Reporting 201

overview and Highlights 9

performance and Financial management Reporting 1

public Interest disclosure 204

Risk management and Internal audit 202

Staffing profile 222

Strategic asset management 233

Strategic Bushfire management plan 232

territory Records 257

the organisation 2

transmittal certificate iii

triple Bottom Line Reporting 186

Workplace Health and Safety 228

Workplace Relations 230

www.lda.act.gov.au

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