ANNUAL REPORT 2016-17 - Suburban Land Agency · The LDA was an ACT Government agency within the...

ANNUAL REPORT

2016-17LAND DEVELOPMENT AGENCY

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ANNUAL REPORT

2016-17LAND DEVELOPMENT AGENCY

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ISSN: 1835-1727

© Australian Capital Territory, Canberra 2017

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, ACT Government. GPO Box 158, Canberra City ACT 2601.

First published October 2017

Website – www.act.gov.au

Produced by: ACT Government Publishing Services

Accessibility

The ACT Government is committed to making its information, services, events and venues accessible to as many people as possible. If you have difficulty reading a standard printed document and would like to receive this publication in an alternative format – such as large print and audio – please call the Canberra Blind Society on (02) 6247 4580.

If English is not your first language and you require the translating and interpreting service, please call the Telephone Interpreter Service on 131 450. If you are deaf or hearing impaired and require assistance, please call the National Relay Service on 133 677.

This report is also available online at www.suburbanland.act.gov.au

Inquiries about this publication should be directed to:

Suburban Land Agency 02 6205 0600 www.suburbanland.act.gov.au

Postal address: GPO Box 158 Canberra City ACT 2601

Produced by Publishing Services for the Land Development Agency.

© Australian Capital Territory, Canberra, October 2017 Material in this publication may be reproduced provided due acknowledgment is made.

Publication No 17/0855

Printed on recycled paper.

2 Land Development Agency: Annual Report 2016-17

CONTENTSAccessibility 2

Contents 3

Abbreviations and Acronyms 4

SECTION A: Transmittal Certificate and Compliance Statement 5

Transmittal Certificate 6

Compliance Statement 7

SECTION B: Organisation Overview and Performance 9

B.1 Organisational Overview 11

B.2 Performance Analysis 26

B.3 Scrutiny 32

B.4 Risk Management 37

B.5 Internal Audit 38

B.6 Fraud Prevention 39

B.7 Work Health and Safety 40

B.8 Human Resources Management 42

B.9 Ecologically Sustainable Development 46

SECTION C: Financial Management Reporting 54

C.1 Financial Management Analysis 55

C.2 Financial Statements 68

C.3 Capital Works 168

C.4 Asset Management 176

C.5 Government Contracting 177

C.6 Statement of Performance 185

SECTION D: Exception and Agency Specific Reporting 196

D.1 Dangerous Substances 197

D.2 Medicines, Poisons and Therapeutic Goods 197

SECTION E: Chief Minister, Treasury and Economic Development 198

SECTION F: Education and Training 200

SECTION G: Health 202

SECTION H: Gambling and Racing 204

SECTION I: Ministerial and Director-General Directions 206

SECTION J: Public Land Management Plans 208

SECTION K: Third Party Insurance 210

SECTION L: Victims of Crime 212

SECTION M: Waste Minimisation Contraventions 214

SECTION N: Community Engagement and Support 216

SECTION O: Justice and Community Safety 222

SECTION P: Public Sector Standards and 224 Workforce Profile

SECTION Q: Territory Records 227

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ABBREVIATIONS AND ACRONYMSACT Australian Capital TerritoryACTPG ACT Property GroupACTPLA Planning and Land AuthorityACTPS ACT Public ServiceAFP Australian Federal PoliceAM Member of the OrderAO Officer of the OrderARI Asset Recycling InitiativeARIn Attraction and Retention IncentiveBARC Board Audit and Risk CommitteeBCC Belconnen Community CouncilCEO Chief Executive OfficerCIT Canberra Institute of TechnologyCMTEDD Chief Minister, Treasury and Economic

Development DirectorateCSD Community Services DirectorateDHA Defence Housing AustraliaDRP Design Review PanelEAP Employee Assistance ProgramED Economic DevelopmentEDP Estate Development PlanEPBC Environment Protection and Biodiversity

Conservation Act 1999 (C’wealth)EPSDD Environment, Planning and Sustainable

Development DirectorateFMA Financial Management Act 1996FOI Freedom of InformationFTE Full Time EquivalentGBCA Green Building Council of AustraliaGLO Government Land OrganisationsHA HectareHR Human ResourcesIAP2 International Association for

Public ParticipationILRP Indicative Land Release ProgramIZ1 General Industrial LandKPI Key Performance IndicatorLDA Land Development AgencyLED Light Emitting DiodeLFAIA Life Fellow of the Australian Institute

of ArchitectsMBA Master Builders AssociationMoU Memorandum of Understanding

NCA National Capital AuthorityNLA Net Lettable AreaNSW New South WalesNZ New ZealandOAM Medal of the OrderOCG Office of the Coordinator-GeneralPDA Planning and Development Act 2007PHRT Public Housing Renewal TaskforcePIA Planning Institute of AustraliaPRZ1 Urban Open SpacePSMA Public Sector Management Act 1994PSM Public Service MedalRED Respect, Equity and DiversityRFP Request for ProposalRFT Request for TenderSEA Special Employment ArrangementSERBIR Senior Executive Responsible for

Business Integrity RiskSOI Statement of IntentTCCS Transport Canberra and City ServicesTRIM Total Records Information ManagementUDIA Urban Development Institute of AustraliaWhoG Whole of GovernmentWHS Work Health and SafetyWHS Act Work Health and Safety Act 2011WHSMS Work Health and Safety

Management System


SECTION A

SECTION A: TRANSMITTAL

CERTIFICATE 5

Ms Yvette Berry MLA Minister for Housing and Suburban Development ACT Legislative Assembly London Circuit Canberra ACT 2601

Dear Minister

This Report has been prepared pursuant to section 6(1) of the Annual Reports (Government Agencies) Act 2004 and in accordance with the requirements of the Annual Report Directions as provided in the Annual Reports (Government Agencies) Notice 2017, Notifiable Instrument NI2017–280.

It has been prepared in conformity with other legislation applicable to the preparation of the Annual Report by the Land Development Agency.

We certify that information in the attached Annual Report, and information provided for whole of government reporting, is an honest and accurate account and that all material information on the operations of the Land Development Agency has been included for the period 1 July 2016 to 30 June 2017.

We hereby certify that fraud prevention has been managed in accordance with the Public Sector Management Standards 2006, Part 2.

Section 13 of the Annual Reports (Government Agencies) Act 2004 requires that you present the Report to the ACT Legislative Assembly within 15 weeks after the end of the financial year.

Signed and dated by:

Ross Barrett OAM Neil Bulless LDA Board Chair Chief Executive Officer 3 October 2017 3 October 2017

ABN 204 199 255 79

TransACT House 470 Northbourne Avenue Dickson ACT 2602 GPO BOX 158 Canberra ACT 2601

Phone: (02) 6205 0600 Email: [email protected]

Web: lda.act.gov.au


COMPLIANCE STATEMENTThe 2016-17 Land Development Agency (LDA) Annual Report complies with the 2017 Annual Report Directions (the Directions). The Directions are available on the ACT Legislation Register: www.legislation.act.gov.au

This Compliance Statement indicates the subsections, under the five Parts of the Directions that are applicable to the LDA, and the location of information that satisfies these requirements:

Part 1 Directions Overview The requirements under Part 1 of the Directions relate to the purpose, timing and distribution, and record keeping of annual reports. The 2016-17 LDA Annual Report complies with all subsections of Part 1 under the Directions.

In compliance with section 13 Feedback, Part 1 of the Directions, contact details for the LDA are provided within the 2016-17 LDA Annual Report to provide readers with the opportunity to provide feedback, noting that the LDA ceased as of 30 June 2017.

Part 2 Directorate and Public Sector Body Annual Report Requirements The requirements within Part 2 of the Directions are mandatory for all directorates and public sector bodies and the LDA complies with all subsections. The information that satisfies the requirements of Part 2 is found in the 2016-17 LDA Annual Report as follows:

A. Transmittal Certificate, see page 6.

B. Organisational Overview and Performance, inclusive of all subsections, see pages 9 – 53.

C. Financial Management Reporting, inclusive of all subsections, see pages 54 – 195.

Part 3 Reporting by ExceptionThe LDA has nil information to report by exception under Part 3 of the Directions for the 2016-17 reporting period.

Part 4 Directorate and Public Sector Body Specific Annual Report RequirementsThe following subsections of Part 4 of the 2017 Directions are applicable to the LDA and can be found within the 2016-17 LDA Annual Report:

> I. Ministerial and Director-General Directions, see page no. 206.

> J. Public Land Management Plans, see page no. 208.

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Part 5 Whole of Government Annual ReportingAll subsections of Part 5 of the Directions apply to the LDA. Consistent with the Directions, the information satisfying these requirements is reported in the one place for all ACT Public Service directorates, as follows:

> N. Community Engagement and Support, see pages 216-221, noting some of this information is also included in the 2016-17 Chief Minister, Treasury and Economic Development Directorate Annual Report.

> O. Justice and Community Safety, including all subsections O.1 – O.4, see the 2016-17 Justice and Community Safety Directorate Annual Report;

> P. Public Sector Standards and Workforce Profile, including all subsections P.1 – P.3, see the annual State of the Service Report produced by the Commissioner for Public Administration; and

> Q. Territory Records, see the annual report of Chief Minister, Treasury and Economic Development Directorate.

ACT Public Service Directorate annual reports are found at the following web address: http://www.cmd.act.gov.au/open_government/report/annual_reports

As required by Australian Auditing Standards, the ACT Audit Office reviews financial statements included in annual reports (and information accompanying financial statements) for consistency with previously audited financial statements. This includes reviewing the consistency of statements of performance with those statements previously reviewed (where a statement of performance is required by legislation).


SECTION B

SECTION B: ORGANISATION OVERVIEW AND PERFORMANCE

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B.1 ORGANISATIONAL OVERVIEWOUR VISIONThe Land Development Agency (LDA) has endeavoured to be an organisation of excellence that:

> recognised it was a key instrument for the delivery of ACT Government policies;

> acted commercially;

> promoted and rewarded innovation;

> was adaptable and responsive;

> behaved ethically, cooperatively and professionally; and

> appropriately valued its people and its customers.

MISSION AND VALUESThe LDA contributed 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, industrial, community and non-urban land.

The LDA strove to act in a commercially responsible, ethical and efficient manner when developing and selling land on behalf of the ACT Government in order to achieve the optimum result for the Territory.

OUR ROLEThe LDA was an ACT Government agency within the Economic Development portfolio (ED). Its core business was developing and selling land on behalf of the ACT Government. The LDA released and developed government owned land for residential, commercial, industrial and community purposes. In doing so, the LDA sought to balance potentially competing public sector and commercial priorities, and provide opportunities for private sector development to optimise the community benefit from the ACT’s land assets.

ESTABLISHMENTThe LDA was a Territory authority established by Section 31 of the Planning and Development Act 2007 (PDA). The LDA did not administer any enactments, but was bound by Chapter 4 of the PDA. The PDA provides for planning (Planning and Land Authority (ACTPLA) as custodian of the Territory Plan) and development (the 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, and Board members appointed, by Section 42 of the PDA. The role of the Board was to govern the LDA in accordance with the Financial Management Act 1996 (FMA) and the PDA. The Board appointed a Board Audit and Risk Committee (BARC) that met at least quarterly (see also Section B.5 Internal Audit).

As part of the annual budget process, the government approved a Statement of Intent (SOI) for the LDA that set out the objectives and deliverables for the LDA, including land release and land sales revenue targets. An explanation of the LDA’s performance against these objectives is provided at Section B.2 (Performance Analysis) of this report.

The LDA was also required to comply with any directions given to it by the relevant minister under Section 37 of the PDA. The LDA’s staff were employed under the Public Sector Management Act 1994 (PSMA).

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FUNCTIONS AND SERVICESIn accordance with the Planning Minister’s Statement of Planning Intent, the LDA provided support in addressing the community’s desires for compact and sustainable neighbourhoods, a collaborative approach between the public and private sectors, housing choice and affordability, improved quality of urban design of the public realm, the showcasing of sustainability and quality design in new developments and precincts, and improved transport options for the ACT.

The LDA’s key outputs for 2016-17, as set out in its SOI were to:

> deliver the ACT Government’s Indicative Land Release Program (ILRP) for residential, commercial, industrial and community land uses;

> provide advice to government on property market conditions to inform development of targets in the Land Release Program and support direct sales of land;

> deliver high quality, sustainable developments, including public realm and community development;

> deliver an adequate and diverse supply of land for construction and developments in the Territory that meets market demand and anticipates demographic changes;

> contribute to the strategic delivery of government policies and priorities including those related to land development, urban and public housing renewal, suburban sustainability, strategic land acquisitions, the asbestos response, housing affordability and urban intensification, particularly along the Capital Metro corridor;

> operate efficiently and provide agreed returns to the Territory;

> consider the long-term sustainability of the Territory in all key commercial decisions on land in the ACT;

> ensure an adequate supply of Government-owned land is in the planning and development pipeline for future release;

> deliver meaningful and transparent community engagement about the land development process and projects; and

> cultivate and maintain productive relationships with the private sector and across the ACT Government.

In addition, the LDA supported the delivery of urban intensification along the first stage of the light rail network, the work of the ACT Government’s Asbestos Response Taskforce in dealing with homes affected by loose-fill asbestos, and the work of the Public Housing Renewal Taskforce (PHRT) in delivering modern and fit for purpose public housing.

CLIENTS AND STAKEHOLDERSThe ACT community was the LDA’s principal client. The LDA engaged with the community in all facets of its land development activities. The LDA engaged actively with the community to seek its views and apply due consideration wherever possible to deliver high quality land and urban development outcomes to provide a social and financial return on the land asset.

The LDA’s primary stakeholder was the ACT Government. Other stakeholders included (in no particular order):

> the ACT community;

> local and international industry and business groups;

> builders, suppliers and contractors;

> Community Councils and groups;

> the National Capital Authority (NCA); and

> ACT Government directorates, and other agencies and authorities.


ORGANISATIONAL STRUCTUREThe LDA was an ACT Government agency within the ED, which is part of the Chief Minister, Treasury and Economic Development Directorate (CMTEDD). Under a Memorandum of Understanding (MoU), the CMTEDD and the LDA provided and/or shared a range of management and corporate support functions. For example, during 2016 - 17 the LDA provided financial resources to the ED, while the CMTEDD provided community engagement and corporate services to the LDA. The CEO of the LDA was also the Director-General of the ED, while the Deputy Director-General, Land Development, of the ED occupied the role of Deputy CEO of the LDA.

OFFICE OF THE CHIEF EXECUTIVE OFFICERThe Chief Executive Officer (CEO) of the LDA held all the powers of a CEO of a Territory Authority instrumentality under the PSMA and was an ex officio member of the LDA Board. The CEO managed the day to day operations of the LDA in accordance with governance arrangements determined by the LDA Board and in line with whole of government policies and legislative requirements. The LDA functional responsibilities of the Office of the Chief Executive Officer included:

> overseeing implementation of the LDA SOI;

> provision of policy, secretariat and administrative support to the LDA Board and the BARC;

> facilitation of the LDA’s responses to issues raised by the community, industry and other government agencies; and

> leading community engagement activities associated with land development in the Territory.

LAND DEVELOPMENTThe core responsibilities of the Greenfield and Urban Projects branches of the LDA included:

> developing ACT Government owned land for release for residential, commercial, industrial and community purposes, in accordance with the ILRP;

> obtaining relevant statutory and other approvals, including those of environmental and heritage matters;

> undertaking due diligence activities to inform the ILRP and resolving strategic environmental and other planning issues for future land releases;

> assessing greenfield sites for potential future release and development;

> procuring and project managing professional services and civil and landscape construction activities;

> working with the Procurement and Capital Works division within the ED to maximise efficient and timely delivery of the LDA estate works that interface with government capital works projects;

> managing the civil engineering consultancy services relating to site investigations;

> providing support for government direct sales by undertaking site investigations minor works;

> managing the LDA’s minor works program;

> integrating sustainable design through management of the LDA’s Design Review Panel (DRP);

> monitoring the master program and key performance indicators; and

> developing and continuously improving of work, health and safety systems to ensure compliance with obligations under the Work Health and Safety Act 2011 (WHS Act).

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SALES, MARKETING AND LAND MANAGEMENTThe responsibilities of the Sales, Marketing and Land Management branch included:

> managing the marketing and sales of residential, commercial, industrial and community land;

> engaging and managing valuation services;

> undertaking land management services, including land custodian and licence arrangements;

> managing corporate branding and sponsorships;

> providing strategic advice to the LDA executive on sales matters associated with the ILRP;

> engaging with and providing advice to the LDA project teams on new suburbs, precincts and development sites on matters relating to product mix, type and affordable housing options;

> managing the LDA’s panels of commercial and residential property agents;

> building and maintaining relationships with external stakeholders; and

> managing the LDA’s Mingle community development program.

STRATEGIC FINANCEThe LDA’s Strategic Finance branch was responsible for the delivery of value-add strategic financial services, support, analysis and advice to the LDA Board, management, project teams and other key stakeholders. The branch provided a range of financial compliance activities including statutory financial reporting, taxation administration and financial framework development and implementation. The branch was also responsible for the LDA’s business systems integration and underlying business process reform.


OUR STRUCTURE – AS AT 30 JUNE 2017

* These positions had dual responsibilities within the Economic Development Directorate.

FUTURE PRIORITIESThe LDA ceased as an agency on 30 June 2017. Its responsibilities were assumed by the City Renewal Authority, the Suburban Land Agency and the Environment, Planning and Sustainable Development Directorate (EPSDD).

Minister for Housing and Suburban Development

Ms Yvette Berry MLA

*Director, Office of the Chief Executive Officer Mr Chris Wilson

Director, Urban Projects and City to the Lake Mr Nicholas Holt

Director, Sales, Marketing and Land Management

Mr John Mason

*Chief Executive Officer, Land Development Agency Mr David Dawes

*Acting Chief Executive Officer, Land Development Agency

Mr Neil Bulless

Executive Director, Greenfield Mr Tom Gordon

*Executive Director, Urban Renewal Ms Liz Lopa

Chief Financial Officer Mr Bruce Fitzgerald

*Executive Director, Sales, Marketing and Property Management

Mr Daniel Bailey

Land Development Agency Governing Board

Minister for Urban Renewal

Mr Mick Gentleman MLA

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INTERNAL ACCOUNTABILITY

LDA BOARDThe LDA Board was established under section 42 of the PDA as a governing board. In appointing Board members, the Minister sought to ensure that the following skills and experiences were represented:

> land development;

> landscape architecture;

> sustainable development;

> economics;

> public law;

> finance or accounting;

> public administration; and

> engineering.

Under section 56 of the FMA the LDA Board was responsible, under the responsible Minister, for the efficient and effective financial management of the Agency. Section 77 of the FMA provides that a governing board has the following functions:

a. setting the authority’s policies and strategies;

b. governing the authority consistently with the authority’s establishing Act and other relevant legislation;

c. ensuring, as far as practicable, that the authority operates in a proper, effective and efficient way; and

d. ensuring, as far as practicable, that the authority complies with applicable governmental policies (if any).

Following the expiry of Mr Robert Tonkin’s appointment on 30 June 2016, the Board consisted of six members including the CEO. The appointments of Mr Con Kourpanidis and Ms Yvonne von Hartel AM in late July 2016 increased Board membership to eight including the CEO.

There were a total of 13 meetings held during the 2016-17 financial year, two of which were extraordinary meetings.

BOARD ATTENDANCE 2016-17

Name Position Meetings Attended Meetings Held During Tenure

Ross Barrett OAM Chair 12 13

Sandra Lambert AM Deputy Chair 13 13

Con Kourpanidis Member 11 12

Cherelle Murphy Member 11 13

Chris Purdon Member 13 13

Jim Shonk Member 12 13

Yvonne von Hartel AM Member 9 12

David Dawes1 CEO & Member 9 13

Neil Bulless2 Acting CEO & Member 3 3

Notes:

1 Mr Dawes was on approved leave for the May and June 2017 meetings.2 Mr Bulless joined the LDA Board in May 2017.


BOARD MEMBERS

Ross Barrett, OAM (Chair of the LDA Board)Mr Ross Barrett is a civil engineer with a Bachelor of Engineering degree from the University of NSW and a Local Government Engineers Certificate (NSW). He has been a Fellow of the Institution of Engineers Australia since 1986 and in 2011 and again in 2012 was recognised by Engineers Australia as one of Australia’s top 100 most influential engineers.

Mr Barrett has a long history of membership and leadership of professional bodies. He is a former President of the Master Builders ACT branch and is a Life Member of the Association. He is also a Life Member of Master Builders Australia and was a National Board member for 11 years.

Mr Barrett was a National Board member of the Civil Contractors Federation for 18 years and is a former National President of the Federation. He has been a Fellow of the Australian Institute of Company Directors since 1990.

Mr Barrett has chaired a number of regional advisory organisations including the Capital Region Development Board, Regional Development Australia ACT, and Community Housing Canberra Limited and he is currently the Chair of Boundless Canberra Incorporated.

Sandra Lambert AM (Deputy Chair)Ms Sandra Lambert has worked for the public sector for the majority of her career, spanning over 30 years. She has worked as a teacher and held a number of school based leadership positions including as a College Principal. She has also worked for the Australian Government and has held several senior executive and leadership positions in the ACT Government. Her most recent was as the inaugural Chief Executive of the then Department of Disability, Housing and Community Services (2002 – 2010) a position in which she exercised the statutory role of The Commissioner for Housing, responsible for the Public Trading Enterprise known as Housing ACT.

During her period as Chief Executive, she also undertook in 2009 the role of ACT Coordinator-General of the Stimulus Taskforce responsible for delivering the Australian Government’s Nation Building Package in the ACT. As Chief Executive, Ms Lambert was also actively engaged in national committees including as Chair of the Community, Disability Services Ministers’ Advisory Committee for 3 years. She was also a Board member of the Australian Housing and Urban Research Institute and of the Australian Institute of Health and Welfare. Before becoming a Chief Executive, Ms Lambert’s roles included driving and implementing whole of government policy development, implementation and evaluation and being responsible for leading significant, often high profile, projects. Leading the project team which established Canberra Connect is one example.

Ms Lambert has a Bachelor of Arts degree from Canterbury University (NZ) and a Diploma of Teaching, Distinction Award. She is a Fellow of the Australian Institute of Management and a member of the Australian Institute of Company Directors. Ms Lambert was admitted to the Order of Australia in 2012.

Ms Lambert’s activities from 2010 - 2013 included consulting roles and being a non executive director on other boards including being the Deputy Chair of the Hands Across Canberra Board which is a philanthropic organisation in the ACT. She was also the ACT representative on the Safety, Rehabilitation and Compensation Commission during this period and from 2012-13 chaired the Department of Human Services Risk, Security and Business Continuity Committee.

From January 2014 to August 2015 Ms Lambert worked as a Leadership and Literacy Consultant with Generation Ready, a U.S. company, and worked in this capacity in schools in New York City and State and Oakland, California. Ms Lambert took a leave of absence from the LDA Board for almost all of this period.

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Con Kourpanidis (Member)Mr Con Kourpanidis has been a Canberra resident for over 40 years and is well known and respected within the legal, business and not for profit community. He holds a Bachelor of Art degree from the Australian National University and a Bachelor of Law degree from Sydney University, and is a member of the Australian Institute of Company Directors.

Mr Kourpanidis was a partner of leading Canberra firms Gallens and later Gallens Crowley and Chamberlain, practising in the areas of commercial, business, leasing and banking law.

Mr Kourpanidis has successfully owned and operated a number of businesses in the ACT ranging from the grocery, retail and quick service restaurant industry.

He was appointed Chairman of ACTTAB Ltd (a Territory-owned corporation and provider of totalisator and fixed odds wagering and Keno products throughout Canberra) by the ACT Government in 2002 and led the Board up to the eventual sale of the business to Tabcorp in 2014.

Mr Kourpanidis played an integral role in the establishment of Ronald McDonald House within the Canberra Centenary Hospital for Women in 2012 and served as inaugural Chairman of the Board from 2010 to 2015.

Cherelle Murphy (Member)Ms Cherelle Murphy is a highly experienced professional economist with a particular interest in public sector and Australian state based economic analysis. Ms Murphy is currently a senior economist at ANZ Bank, where she is responsible for analysis and forecasting of the Australian economy and thematic research on topics that are front of mind for ANZ’s clients. Ms Murphy publishes regular economic updates and presents economic updates and forecasts to domestic and international clients and stakeholders. She also provides media commentary on key economic issues.

Ms Murphy has also worked in corporate communications, holding the position of Senior Manager of Media Relations for two years at ANZ. She worked as a journalist for the Australian Financial Review for five years, including as an Economics Correspondent for the newspaper in the Federal Parliamentary Press Gallery.

Ms Murphy began her career as an economic research analyst at the Reserve Bank of Australia. She holds a Commerce degree (Hons) from Curtin University and a Master of Population Studies from the Australian National University.

Ms Murphy is a member of Australian Business Economists, Canberra Business Economists, the Australian Institute of Company Directors and is also a director of the Canberra Burns Club.

Christine Purdon (Member)Ms Chris Purdon has an extensive background in town planning and experience working within the private sector. As a current Fellow of the Planning Institute of Australia, Ms Purdon’s qualifications include a Bachelor of Arts (Honours) and a Masters degree in Town and Country Planning from the University of Sydney.

Ms Purdon founded Purdon Associates, a Canberra based planning and social research consulting company specialising in the provision of expert and practical advice on urban planning and social policy issues. Purdon Associates has continued to provide expertise in town planning to the Canberra region since 1985 and the company has received a number of awards including: Property Council – ACT Property Professional of the Year 2010; and PIA National Award for Excellence – Social and Community Based Planning for ‘Future Use of Former School Sites’ (2009).

Ms Purdon’s areas of expertise include urban planning and development, social policy and program evaluation, strategic planning, community consultation and engagement and housing development, especially affordable housing.

Throughout her career, Ms Purdon has contributed to various boards and committees including Chairperson of the ACT Ministerial Housing Advisory Committee from 1993 to 2003 and Chairperson (on behalf of the Minister for Housing), for the ACT Affordable Housing Taskforce in 2002.


Jim Shonk (Member)Mr Jim Shonk is well known and highly regarded in the ACT for his achievements and expertise in property valuation, commercial real estate and board operations.

He is a founding Director of the Vikings Club in Tuggeranong, past President of Clubs ACT, and a Director of Argus Property Investments, which he co founded in 2012.

Mr Shonk was the Director of Commercial Sales at Colliers International’s Canberra office and as Managing Director (1992 to 2002), became the most successful sales agent in Colliers International’s global history, and consistently finished in the top four commercial agents in Australia.

Mr Shonk was President of the Vikings Club in Tuggeranong between 1991 and 1996, then in 1998, and again from 2001 to 2003. He was a founding Director of the Club between 1978 and 1980. During his years with the Club, Mr Shonk initiated and oversaw a review of all aspects of company performance and standards, resulting in best practice audit procedures and vastly improved governance and administration, and the expansion of the Club in Lanyon and Tuggeranong Town Centre.

He is a past Fellow of the Australian Property Institute and a retired Real Estate Agent in the ACT and NSW.

Yvonne von Hartel AM (Member)Ms Yvonne von Hartel AM is a Founding Principal of the award-winning national architectural and urban design practice, peckvonhartel. Ms von Hartel has practiced as an architect for 50 years, working on Australia’s largest and most significant infrastructure projects.

Ms von Hartel is currently a Director of the Melbourne Convention and Exhibition Trust and Chair of its Capital Works Committee, a Council member of La Trobe University Council and a Deputy Chair of its Infrastructure and Estates Planning Committee, a Commissioner of the Victorian Building Authority, Chair of the Victorian Building Regulations Advisory Committee, a Director of the Queen Victoria Market Pty Ltd, a Director of the University of Wollongong, SMART Infrastructure Advisory Council, a member of the Design Review Panels for the Capital Metro project Canberra, WestConnex Sydney for the Sydney Motorway Corporation and the Sydney International Convention, Exhibition and Entertainment Precinct. She has served as Chair of the Sustainability in Buildings Standards Coordination Group of Standards Australia, as inaugural Chair of the Victorian Design Advisory Council, and as a Director of the national Tourism and Transport Forum.

During her career, Ms von Hartel has taught both full time and part time at the School of Architecture at the University of Melbourne. In 2007, Ms von Hartel was awarded a Member of the Order of Australia for ‘services to architecture, design and building through involvement with a range of professional organisations, to the promotion of women in business, and to the community’.

Ms von Hartel graduated from the University of Melbourne with Honours in Architecture and is a Life Fellow of the Australian Institute of Architects (LFAIA). She has completed the Executive Management Program at the Melbourne Business School.

David Dawes (Chief Executive Officer and Member)Mr David Dawes commenced his roles as Chief Executive Officer of the Land Development Agency and Director-General of the Economic Development Directorate in May 2011. Prior to that, he was Chief Executive of the ACT Government’s Department of Land and Property Services (created in December 2009) responsible for implementing major government initiatives such as the land release program and aspects of the nationally recognised Affordable Housing Action Plan.

During this time, Mr Dawes also oversaw the ACT Property Group (ACTPG), responsible for managing and preparing long-term plans for office accommodation for ACT public servants. In addition, he led the Strategic Project Facilitation group which facilitated numerous private sector, government and projects including development of the National Arboretum Canberra.

Mr Dawes joined the ACTPS in April 2007 as Deputy Chief Executive, Business and Projects, Chief Minister’s Department. Prior to joining the ACT Public Service (ACTPS) he was the Executive Director of the Master Builders Association of the ACT for nine years. In that role he represented the Association with industry, government and business groups including the Canberra Business Council, Local Area Planning and Advisory Committees and was a member of the Occupational Health and Safety Council.

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During his time at the Association, he was a founding member of OzHelp – an organisation which has now been launched nationally to prevent youth suicide. He commenced the ‘Housing for Life’ advisory service in the ACT and built the first ‘Housing for Life’ display house in conjunction with Housing ACT.

In 2003 he instigated a single demolition package to assist the victims of the bushfires and was the Chairman on the Planning and Infrastructure Task Force and the Community Expert Reference Group which was established following the 2003 Canberra bushfires.

During his six year tenure as the CEO of the LDA, Mr Dawes was instrumental in delivering land releases to provide housing for Canberra’s growing population. As the driving force behind the land rent scheme and other housing affordability programs, Mr Dawes ensured that more and more people were able to enter into home ownership. As the CEO, Mr Dawes also delivered significant financial returns to Government, generating over $2.4 billion in land revenue since 2011.

Neil Bulless (Acting Chief Executive Officer and Member)Mr Neil Bulless has extensive experience working in the public and private sectors over the last three decades. He has undertaken a range of Senior Executive roles in the ACT Government over the last 15 years, including in the Land Development Agency, Economic Development and Treasury. Mr Bulless’ experience covers land development and infrastructure, governance, budgeting and financial management, and policy and program analysis and reviews.

Remuneration for Chief Executive and the LDA Board membersThe Remuneration Tribunal, pursuant to the Remuneration Tribunal Act 1995, determines the remuneration for the CEO and Board members.

SENIOR EXECUTIVES (BAND 2 AND BAND 3) AS AT 30 JUNE 2017

Name Position

David Dawes Chief Executive Officer, LDA (on leave) Director-General, Economic Development

Neil Bulless Acting Chief Executive Officer, LDA Deputy Director-General, Economic Development Coordinator-General, Urban Renewal

Liz Lopa Executive Director, Urban Renewal

Tom Gordon Executive Director, Greenfield

Daniel Bailey Executive Director, Sales, Marketing and Property Management

Bruce Fitzgerald Chief Financial Officer


JOINT VENTURE MANAGEMENT COMMITTEESThe joint ventures in Crace, Forde and West Belconnen are each managed by a Joint Venture / Operation Management Committee / Board. Project Control Groups for each joint venture manage the operational aspects of each site. Development works and sales for both Forde and Crace are complete.

Crace

Crace was been developed as a joint venture between the LDA and Crace Developments Pty Ltd which was a consortium led by CIC Australia Limited (as project manager and majority partner of the consortium), Defence Housing Australia (DHA), Tatebrook Pty Ltd and Community Housing Canberra Affordable Housing.

Forde

Forde was developed as a joint venture development in Gungahlin between the LDA and Forde Development Pty Ltd. Forde Development Pty Ltd was a consortium between Lend Lease Communities and CIC Australia Limited.

West Belconnen

West Belconnen Joint Arrangement (Ginninderry) is being delivered as a joint operation between the LDA and Riverview Pty Limited. Ginninderry will develop land in both the ACT and NSW, which will help to meet existing and future demand for housing for the next 30 to 40 years.

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REPORT BY THE CHAIROn behalf of the LDA Board, I am pleased to present the LDA’s final Annual Report for the period 2016-17. The LDA was discontinued as an agency on 30 June 2017, being replaced by two new land development entities - the City Renewal Authority and the Suburban Land Agency.

The LDA management and staff were made aware of the changes foreshadowed by Government in October 2016 and, despite the uncertainty arising from a significant machinery of government change, continued to strive to achieve the Agency’s objectives with absolute commitment. This commitment is borne out in the 2016-17 results which exceeded the land release and financial expectations outlined in the LDA’s Statement of Intent (SOI).

I am pleased to report that the LDA exceeded its total comprehensive income target for 2016-17, with a total of $259.4 million. This was $48.1 million above the SOI target of $211.3 million. The favourable result was achieved despite lower than expected land sales revenue resulting from the settlement of a number of land sales under the Asset Recycling Initiative (ARI) being deferred until 2017-18.

During 2016-17, land for 4,907 dwellings was released, exceeding the 4,550 target in the SOI. Sales continued to be strong for Mixed Use and Multi Unit product, with the single residential market showing signs that supply is improving to meet demand.

The LDA released the first two significant sites on Northbourne Avenue as part of the ARI program. Dickson on Northbourne was sold at auction for $40 million, and Lyneham on Northbourne sold by tender for $45 million.

In suburban development, Denman Prospect Stage 2 was sold to Capital Estate Developments for $135.85 million following negotiations as part of its successful 2015 tender for Stage 1, which will promote a consistent approach to the design, co-ordination and efficient delivery of the suburb.

The LDA represented the Territory in the Ginninderry Joint Arrangement with the Riverview Group to develop an innovative master planned community spanning the ACT and NSW border in West Belconnen. The project will set new benchmarks in terms of urban design, sustainability, and active community engagement, and has already been recognised by the Planning Institute of Australia, receiving a national commendation for excellence in public engagement and community planning.

The release of the Canberra Brickworks via a two stage process was another important milestone for the Territory, demonstrating leadership and a commitment to improved community consultation on major urban renewal projects. The realisation of the Kingston Arts Precinct moved closer, with extensive consultation across the arts and heritage sectors.

Initial releases in Taylor, Gungahlin’s newest suburb, were well received with land for 489 dwelling sites in the suburb offered to the market in 2016-17. Releases continued in Throsby, with sites for 376 dwellings, Moncrieff, with land for 90 dwellings, and Coombs with sites for 231 dwellings released.

Another highlight of 2016-17 was the LDA’s partnership with the ACT Master Builders Association to deliver two charity houses. The homes in Deakin were sold at auction, resulting in a donation of over $2 million to nine local charities.

At the Board’s final meeting on 29 June 2017 I reflected on the outcomes achieved by the LDA during its 14 years, and thanked the retiring CEO, Mr David Dawes, for his indefatigable enthusiasm and commitment to the agency. His achievements and those of his staff are to be admired.

On 30 September 2016 the ACT Auditor-General’s Report in to Certain Land Development Acquisitions was tabled in the ACT Legislative Assembly. The Board acknowledged the findings of the report and responded to them in a vigorous and comprehensive manner. A subsequent Governance Framework Review by Ian McPhee AO PSM, commissioned by the Board, made a number of additional recommendations that, coupled with the Auditor General’s findings, resulted in a managed and rigorous governance reform program.

I would also like to recognise my fellow Board members who each made significant and different contributions both at Board meetings and through the Board and related committees. I am indebted to Sandra Lambert, the Deputy Chair and Chair of the BARC, for her outstanding contribution to governance, audit and financial leadership.

I also give my thanks on behalf of the Board to the myriad of companies which have contributed to the delivery of our projects and their adherence to strict safety requirements that serve to keep our workforces safe.

Ross Barrett OAM Chair


CHIEF EXECUTIVE OFFICER REPORTIn what was to be its final year of operation, the LDA experienced another solid year of performance, with strong achievement across land release and revenue targets.

A comprehensive review of the LDA’s governance arrangements was completed by Mr Ian McPhee AO PSM in 2016-17.

The Government responded to the findings of the Auditor-General’s report ‘Certain Land Development Agency Acquisitions’ (Report No.7 of 2016) in January 2017.

The LDA implemented a program to address the recommendations and findings of the audit and governance review. Stage One of the program was completed as scheduled by 30 June 2017. The actions in the program improved a range of practices and processes across the Agency.

Land ReleasesThe LDA released 4,907 dwelling sites in 2016-17, which exceeded the published target of 4,550. This included the release of 1,210 dwellings sites in Denman Prospect 2 to support ongoing provision of land for residential development.

In addition to residential land releases, the LDA released 125,340m2 of land for mixed use development against a target of 86,219m2. These releases support the delivery of the ACT Planning Strategy target of achieving 50 per cent of new housing to be delivered as urban intensification.

The demand for general industrial land (IZ1) zoned land was largely met from land inventory established in previous years. The LDA released 29,935m2 of industrial land to the market in 2016-17, just below the target of 30,000m2.

The Community and Non-Urban Land Release Program also supplied a large volume of land required to support community needs arising from Canberra’s urban growth, with 129,039m2 released by the LDA in 2016-17 against a target of 131,404m2.

Inventory LevelsThe LDA worked to grow its inventory of serviced residential land to provide maximum choice and flexibility for potential purchasers. As at 30 June 2017, 241 single residential blocks were held in inventory. In addition, five Multi Unit and six mixed use Multi Unit sites in Molonglo, and two Multi Unit sites and one mixed use Multi Unit site in Moncrieff were serviced and held in inventory, ready for release in line with market demand.

As noted above, an inventory of serviced industrial land has been established with 62,146m2 available for sale in the New West Estate at Hume.

Work Health and SafetyWork health and safety (WHS) both in the office environment and in the field was a central component of the LDA’s workplace culture.

The LDA utilised the ACT Government guidelines for managing WHS in construction projects. The principles of the guidelines are embedded in the LDA’s Contract Management System reinforcing the government’s approach to WHS.

The LDA abided by the ACT Government’s Active Certification program. Audits continued to be well received by the LDA’s civil contractors with continuous improvements being made in safety systems across the civil construction industry.

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Housing Affordability InitiativesImproving housing affordability for all Canberrans has been a key objective of the Government for many years and the LDA continued to support this objective through the release of sites for affordable housing in all new greenfield estates.

Increasing the overall supply of land has also been an effective way for the LDA to assist improving housing affordability across the board. The benefits of this approach have flowed through to private purchasers and renters as well as community housing organisations.

Significant releases of affordable housing dwelling sites during 2016-17 included 27 sites in Moncrieff, 94 sites in Taylor, 32 sites in Throsby, 69 sites in Coombs, and 242 sites in Denman Prospect. In total, 464 affordable dwelling sites were released in 2016-17 which equates to 22.8 per cent of the LDA’s total greenfield releases. In addition, 123 sites were released to the Community Services Directorate and 53 sites to Community Housing Canberra which brings the total to 24%.

Sustainability and Climate Change The LDA continued to contribute to improving sustainability outputs through release of land to support the intensification of urban density along transit corridors and incorporating sustainable development practices when delivering infrastructure into new estates.

Active travel and active living principles were applied when designing new estates, while increased urban density aims to reduce car dependency and promote greater lifestyle choices. In all estates, the LDA provided for pedestrian and cycle connections within the estate, as well as connecting to existing networks outside the estate, enhancing opportunities for pedestrian activity. All housing is located within 400 metres safe walking distance to a bus route.

The LDA continued to pilot the GreenStar Community rating tool in a number of developments and recently achieved a 6 star accreditation through GreenStar Communities at the LDA/Ginninderry Joint Arrangement in West Belconnen.

Financial Outcome (from 2016-17)The LDA’s operating surplus in 2016-17 was $259.4 million which was higher than the level achieved in the previous financial year ($173.3 million in 2015-16). The increase from 2015-16 was primarily due to a decrease in cost of land sold due to the majority of 2016-17 revenue being achieved through sales of englobo, commercial, community and ARI sites which require lower servicing before settlement.

Community EngagementCommunity engagement services for the LDA projects were provided by the Community Engagement unit within the ED stream of the CMTEDD.

The team was guided by the principles and values established under the International Association for Public Participation (IAP2), which is based on the belief that the interests of those who are affected by a decision are considered in the decision-making process.

These principles were reflected in community engagement processes undertaken as part of the development of the Red Hill Estate Development Plan (EDP), which benefited from the close involvement of the community, including through workshops. Through the engagement activities the community provided feedback on building type, building heights and the design and character of public realm which in turn informed the development of the EDP.

This new engagement approach generated strong collaboration between the ACT Government and the community in the character of the development.


Other community engagement activities undertaken during 2016-17 included:

> Gungahlin Town Centre – Celebrate Gungahlin festival;

> Southquay East Greenway;

> Molonglo Valley – Wright and Coombs;

> Bonner;

> West Basin Waterfront, City to the Lake;

> Westside, City to the Lake;

> Kingston Foreshore;

> Block 29 Section 149 Belconnen; and

> Parkes Section 3

The LDA also continued to deliver the Mingle community development program in Bonner, Moncrieff, Wright and Coombs and supported sustainability initiatives including the ACT Government’s ACTsmart program workshops. There was also increased collaboration with other ACT Government Directorates including Parks and Conservation Service in the Environment, Planning and Sustainable Development Directorate to ensure community awareness of projects, including the Molonglo River Restoration.

The LDA partnered with ACT Property Group on the restoration of the Stromlo Cottage. This project restored the property back to a functional facility ensuring management of the heritage aspects.

I would like to acknowledge the contributions of the Board Chair and members. They have provided significant support and guidance to the Agency, through a period of change and uncertainty.

I would also like to acknowledge and thank the staff of the LDA who have remained committed and focussed on delivering land on behalf of the ACT Government, through a challenging period culminating in the creation of the two new land entities.

Neil Bulless Acting Chief Executive Officer

Further information can be obtained from:

Neil BullessInterim Chief Executive OfficerSuburban Land Agency+61 2 6205 [email protected]

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B.2 PERFORMANCE ANALYSIS2016-17 OBJECTIVE 1The LDA contributes 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, industrial, community and non-urban land.

The 2016-17 to 2019-20 four-year Residential Release Program was planned to deliver land for approximately 17,780 dwellings with a target of 4,550 in 2016-17, and targeted releases of 4,430; 4,700; and 4,100 in the following three years. This level of supply is above the estimated level of demand for new housing.

The LDA released 4,907 dwelling sites in 2016-17, which exceeded the published target of 4,550. Public housing renewal is driving urban renewal in key parts of the city, including along the light rail network and in the city with the disposal of ageing public housing properties.

The target dwelling release for 2016-17 was exceeded mainly through the additional releases of 1,299 dwelling sites from Taylor and Denman Prospect. The additional releases offset the rescheduling of 888 residential dwelling sites from the 2016-17 program, in Throsby, Greenway and Red Hill, into future years.

The release of mixed use sites is an important part of delivering the ACT Planning Strategy target of achieving 50 per cent of new housing to be delivered as urban intensification. For the first time, the Release Program included identification of a target of 86,219m2 for mixed use sites. The LDA released 125,340m2 of mixed use land to the market in 2016-17.

In addition to the sites identified in the program the following mixed use sites were released:

> 11,209m2 site in Throsby and 8,714m2 in Coombs permitting a range of commercial uses in addition to multi unit development; and

> 5,469m2 in Watson as part of a Direct Sale.

The LDA released 3,800m2 of commercial land to the market in 2016-17, against a target of 12,811m2. Delays to the forecast program included:

> 1,070m2 in Belconnen delayed to incorporate changes from the updated Belconnen Town Centre master plan;

> 3,024m2 in the City identified for possible future ANU expansion; and

> 5,202m2 in Mawson delayed due to planning approvals.

The demand for general industrial land (IZ1) zoned land was largely met from land inventory established in previous years. The LDA released 29,935m2 of industrial land to the market in 2016-17, just below the target of 30,000m2.

The Community and Non-Urban Land Release Program supplied a large volume of land required to support community needs arising from Canberra’s urban growth. The LDA released 129,039m2 in 2016-17 against a target of 131,404m2. Notable releases in 2016-17 included the release of a site in Monash for development of 120 independent living units and the former Charnwood fire station site of 3,638m2 for redevelopment as a child care centre.

The LDA continued to provide advice to the ACT Government on the state of the ACT property market.

The advice has been incorporated into a number of internal working documents and has been provided at regular meetings on the state of the housing market, through the ACT Government’s Residential and Commercial Advisory Group meetings held quarterly over 2016-17.

In 2016-17, the LDA input informed the Government’s Aged Care Dwelling demand model which was updated to include new ACT Government demographic forecasting. This model was developed to forecast the demand for residential aged care facilities and retirement village dwellings in order to inform the number and location of sites that are required to meet the needs of an ageing population.

Additionally, the LDA input informed the Government’s Child Care Demand model which tracks supply and forecasts demand for child care facilities.

The LDA supported key strategic priorities such as Public Housing Renewal and urban projects such as City to the


Lake, the Kingston Arts Precinct, the ARI program and the light rail project.

Sustainability:

The LDA continued to contribute to improving sustainability outputs through the intensification of urban density along transit corridors and incorporating sustainable development practices when delivering infrastructure into new estates.

Active travel and active living principles were applied when designing new estates while increased urban density aims to reduce car dependency and promote greater lifestyle choices. In all estates, the LDA provides for pedestrian and cycle connections within the estate, as well as connecting to existing networks outside the estate, enhancing opportunities for pedestrian activity. All housing is located within 400 metres safe walking distance to a bus route.

The LDA, in conjunction with the Government Land Organisations (GLOs) network, sponsored the development of the GreenStar Communities rating tool in 2012. Since then, the LDA has piloted the rating tool in Lawson and recently achieved a 6 star accreditation through GreenStar Communities at the LDA/Ginninderry Joint Arrangement in West Belconnen. Furthermore, compulsory solar hot water has been applied in Lawson and Coombs and Light Emitting Diode (LED) street lights, trialled in Lawson, are being rolled out in new estates.

Work was also undertaken in 2016-17 to prepare a consistent framework for planning, monitoring and reporting against non-financial performance indicators for the new Suburban Land Agency and City Renewal Authority, with the intention to strengthen the sustainability criteria applied to new developments.

Asset Recycling Initiative:

The ACT Government signed the National Partnership Agreement on Asset Recycling with the Australian Government in February 2015. Under this program, 18 land based assets are to be sold before the end of 2018-19. The Office of the Coordinator-General, Urban Renewal in the CMTEDD was responsible for the implementation of this agreement, with the LDA supporting the sale of these assets through assistance with due diligence, demolition of buildings, sales and marketing and other works. The sale proceeds from these assets were delivered through the LDA as a special dividend payment to government.

The sites contained under the ARI are public housing and ACT Government commercial buildings, which offer urban renewal opportunities, in the City, and particularly in Dickson and Lyneham, and along the light rail network.

During 2016-17 sites for 1,477 dwellings, 70,255m2 of mixed use development and 3,517m2 of commercial development were released as part of this initiative. This was comprised of:

> the former Dickson Flats, Karuah Flats and Tourist Information Centre sites in Dickson;

> the Motor Vehicle Registry site in Dickson;

> Dame Pattie Menzies House in Dickson; and

> the former Owen, Lyneham and De Burg Flats sites in Lyneham.

Community and Social Engagement:

The LDA continued to deliver the Mingle community development program in Bonner, Moncrieff, Wright and Coombs and supported sustainability initiatives including the ACT Government’s ACTsmart program workshops. There was also increased collaboration with other ACT Government Directorates including Parks and Conservation Service the EPSDD to ensure community awareness of projects including the Molonglo River Restoration.

The LDA partnered with ACT Property Group (ACTPG) on the restoration of the Stromlo Cottage. This project restored the property back to a functional facility ensuring heritage aspects are managed.

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District / Suburb Block Section Residential Dwellings

Mixed Use m²

Commercial Site Area m²

Industrial Site Area m²

Community Site Area m²

ARI

Dickson 1 77 132 5,620 - - -

Dickson 6 77 309 14,477 - - -

Dickson 5 77 256 8,903 - -

Dickson 2 33 280 16,257 - - -

Lyneham 2 115 360 20,595 - - -

Lyneham 3 115 140 4,403 - - -

Dickson 19 & 20 32 - - 3,517 - -

Belconnen

Charnwood 6 97 - - - - 3,638

West Belconnen - - 232 - - - -

Central Canberra

Forrest 10 13 168 13,693 - - -

Yarralumla 102 380 16,000 - - -

Narrabundah 45 100 100 - - - -

City 12 24 - - 175 - -

Watson 11 64 26 5,469 - - -

Gungahlin

Moncrieff various 90 - - - -

Taylor various 489 - - - -

Taylor various - - - - - 80,000

Throsby various 376 11,209 - - -

Amaroo - - 8 - - - -

Molonglo

Coombs - - 231 8,714 - - -

Denman Prospect - - 1,210 - - - -

Tuggeranong

Monash 5 52 120 - - - 39,864

Gowrie 7 226 - - - - 1,383

Greenway 3 75 - - 108 - -

Kambah 21 277 - - - - 2,724

Woden & Weston

Torrens 15 22 - - - 1,430

Industrial Estates

Hume - Pt22 - - - 29,935 -

Outcome 4,907 125,340 3,800 29,935 129,039


2016-17 OBJECTIVE 2The LDA acts in a commercially responsible, ethical and efficient manner when developing and selling land on behalf of the ACT Government.

For the 2016-17 year, the LDA achieved land sales revenue totalling $534.5 million. Dividend and tax equivalent payments totalled $259.4 million.

The LDA ensured its key commercial decisions on land were made with due consideration to the sustainability of the Territory by identifying and integrating economic, social and environmental factors into decision making. These elements were reflected in the business cases that are considered by the LDA Board for all major developments.

The LDA completed three land acquisitions in 2016-17. These purchases are consistent with the Territory’s strategy for planning and sustainable development and future growth of the ACT under the current ACT Planning Strategy 2012 and as reflected in the 2016-17 SOI.

The LDA was committed to effective community engagement that recgonised that people affected by a decision should have the opportunity to be involved in the process and outcomes that affect them. It also recognised that there is knowledge and expertise within the community and amongst stakeholders that can benefit the planning and development of a project.

Community engagement strategies were developed to ensure they appropriately reflected the interests and important contributions from the community while reflecting specific needs of the projects including the project scope, the location and the extent to which the community could influence the outcome.

The development of the Red Hill Estate Development Plan (EDP), in particular, involved a range of community engagement processes, including community workshops, which ensured close involvement by the community. Through the engagement activities the community provided feedback on building type, building heights and the design and character of public realm which in turn informed the EDP.

This engagement approach generated strong collaboration between the ACT Government and the community in the character of the development.

The LDA continued to deliver the Mingle program in Bonner, Moncrieff, Wright and Coombs and supported community initiatives in Franklin including Neighbourhood Watch. It also commenced in Throsby and Lawson with a series of workshops. Regular forums were held with Wright, Coombs and Bonner residents to establish good channels of communication and feedback.

The LDA sought feedback through community surveys and event reviews. This ensured the Mingle program was monitored and tailored for each community.

The Mingle team continued to seek ways to be innovative in delivery of community development / engagement activities – both online and face-to-face. The LDA improved the method of providing current community information to new residents via social media and online tools. The introduction of Facebook live streaming in addition to a number of ‘open’ Facebook pages continued to encourage community interaction and engagement.

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2016-17 OBJECTIVE 3The LDA balances potentially competing public sector and commercial priorities and provides opportunities for private sector development to optimise the community benefit from the ACT’s land assets.

The LDA worked closely with the Economic Development stream and other relevant parts of government in cultivating and maintaining productive relationships with the private sector and across the ACT Government. The LDA provided input to various forums that had relevance to land delivery, such as: the Capital Works Coordinators Working Group; the Adaption Working Group looking at the physical infrastructure and social and economic components of the ACT; MBA round table discussions on estate construction and industry related matters; Transport Canberra and City Services (TCCS) Industry Consultation meeting with Developers; Consult Australia round table; the Government Land Organisations conference as well as other less formal management level discussion groups.

The LDA provided detailed technical advice on land development issues with the Commonwealth in relation to environmental clearances under the Commonwealth’s Environment Protection and Biodiversity Conservation Act 1999 (EPBC).

The LDA’s Mingle program has developed productive relationships across ACT Government ensuring various Directorate participation in the LDA’s community development program for new communities. The Mingle program facilitated the following activities:

> community information sessions with guest speakers and information from the TCCS, Australian Federal Police (AFP), Education Directorate, Active Canberra, the EPSDD and Public Housing Renewal Taskforce;

> the refurbishment of Stromlo Cottage in partnership with ACT Property Group (ACTPG); with the facility to be used by the local Molonglo Valley community;

> promotion of Directorate programs such as the EPSDD’s Backyard Lifeguard campaign and other services through the Mingle newsletters, welcome packs and at events;

> community awareness of the EPSDD’s ACTsmart program in Molonglo Valley;

> collaborating with all Directorates for the delivery of the community programs in the LDA estates with a focus on the Education Directorate;

> working with the TCCS and the EPSDD in activities including Molonglo Valley Ranger Walks, Molonglo River Corridor, and ACT NoWaste; and

> hosting whole of government information stands at events, including Celebrate Gungahlin which encouraged representatives and information from each Directorate.

The LDA was also actively engaged with the following agencies and directorates during 2016-17:

> the Office of the Coordinator-General (OCG), Community Services Directorate (CSD) and the PHRT in the sale of ARI sites; and

> the Asbestos Response Taskforce in the evaluation and sale of the remediated ‘Mr Fluffy’ blocks.

The LDA partnered with Master Builders ACT on the following projects:

> Deakin Charity House project – two new homes were built by Renaissance Homes with proceeds donated to charity. Over $2 million was raised from the sale of the two Deakin properties which was distributed to Boundless Playground, Hands Across Canberra, Hartley Lifecare, Salvation Army, Uniting Care, Early Morning Centre, St Vincent de Paul, Everyman and Ozhelp; and

> Moncrieff Display Village - this included partnership arrangements with the delivery of events.

The LDA continued to engage with the private sector through representation at industry forums and events that recognise achievements in the development industry. The LDA also encouraged industry service providers to attend relevant briefings relating to the LDA’s works and sales activities.


The LDA represented the Territory’s interests in the Ginninderry Joint Arrangement. The LDA worked with the Territory’s partner, Riverview Group, on the development of the innovative master planned community, which demonstrated the benefits of the Government and private sector working together to achieve excellent outcomes.



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B.3 SCRUTINYSTANDING COMMITTEE ON PUBLIC ACCOUNTS REPORT NO. 4 – INQUIRY INTO ANNUAL AND FINANCIAL REPORTS 2012-13

Recommendation No. and Summary, and Government Response

Action Status

11. The Committee recommended the ACT Government continue to take measures to realise a new convention centre.The ACT Government agreed noting work to progress the Australia Forum Convention Centre project is continuing with a functional brief expected to be finalised by the end of 2013-14. The next step will be the preparation of a reference design, which will be a key input to the final business case, which will be completed by the end of 2014-15. This work will continue to be undertaken in close collaboration with the Canberra Convention Bureau and Canberra Business Council.

In 2014-15 a reference design, commercial and economic analysis including market sounding and ancillary facilities studies were prepared.In 2015-16 feasibility options analysis was undertaken by Treasury for a new or upgraded version of the existing convention centre providing government with a range of options. The Government is seeking Commonwealth financial assistance in delivering the new convention centre. The Parliamentary Agreement for the 9th Assembly outlines a commitment to progress feasibility and business case development work for Australia Forum. The Chief Minister announced in February 2017 that further work on Australia Forum would not be progressed without the Commonwealth Government agreeing to make a significant financial contribution.

In Progress.An agreed timeframe for completion is dependent on Commonwealth contribution. This matter rests with the Chief Minister, Treasury and Economic Development Directorate.


STANDING COMMITTEE ON PLANNING, ENVIRONMENT AND TERRITORY AND MUNICIPAL SERVICES REPORT NO.4 – REPORT ON ANNUAL AND FINANCIAL REPORTS 2012-13


Action Status

1. The Committee congratulated the Government for the success of the Planning Institute of Australia award for the City to the Lake Project and recommended the Government continue to seek guidance from authorities such as the Planning Institute of Australia.The Government agreed noting a Project Reference Group comprising representatives of these institutes will continue to review and advise on the City to the Lake project in the next detailed planning phase of the work.

Continuing with peer review from the planning and design profession through engaging with peak industry bodies and the Design Review Panels.Works Approval to commence the first stage of the West Basin boardwalk and associated parkland was received from the National Capital Authority (NCA) in May 2016.Work on the final detailed designs for the remainder of the West Basin Waterfront is continuing, which is expected to receive the NCA Works Approval by the end of 2017.As other elements of the City to the Lake project move towards design stage. These will be undertaken in consultation with the DRP, community and professional sector.

Ongoing.Consultation will continue with the planning and design profession as further phases of the City to the Lake project progress.As of 1 July 2017, responsibility for the City to the Lake project will fall under the City Renewal Authority

3. That, noting the increase in land releases, the LDA continues to provide information to the community on its development in Denman Prospect.The Government agreed noting the LDA will continue to liaise with community and industry, as part of the design and development of these areas and through the preparation of Estate Development Plans, on:• proposed development outcomes;• sale of finished blocks or private development

of larger packages of land; and• planning, approval and construction

processes to improve outcomes in the Molonglo Valley.

A number of community information sessions were held in 2016-17. The LDA initiated as part of this process live Facebook feeds.

Ongoing.Consultation with the community will continue until the suburb of Denman Prospect is complete. A private developer has assumed responsibility for the Denman Prospect site and has implemented a Community Engagement Strategy.

5. The Committee recommended the Government continues the use of the GreenStar Communities Tool.The Government agreed.

Ginninderry Joint Arrangement (previously Riverview) project at West Belconnen achieved a GreenStar Communities 6 star rating in 2016. Re-certification must be achieved within five years of the initial certification and every five years thereafter until the project is fully built-out.A sustainability framework checklist has been progressed that incorporates the principles of GreenStar Communities into all major projects. Consideration will be given to selecting key projects for attaining a GreenStar Communities 4-6 star certification based on resourcing and suitability. Work commenced to establish Key Performance Indicators for the new Suburban Land Agency that reflect the principles of GreenStar Communities, subject to agreement by the respective Boards.

Ongoing.

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SELECT COMMITTEE ON ESTIMATES 2014-2015 REPORT NO.1 – INQUIRY INTO APPROPRIATION BILL 2014-2015 AND THE APPROPRIATION (OFFICE OF THE LEGISLATIVE ASSEMBLY) BILL 2014-2015


Action Status

87. The Committee recommended the Government ensure the scoping study for a new Theatre Facility including the possibility of establishing a National Performing Arts Centre in the ACT.The Government agreed stating the CMTEDD, in conjunction with the Cultural Facilities Corporation, will explore consideration of a performing arts facility of national status within the existing funding envelope identified for theatre studies.

Williams Ross Architects has developed design options for a new 2,500 seat performing arts facility for Canberra. Concurrently, Randall Arts Management in association with Lawrence Consulting have completed a business case, needs analysis and economic appraisal for the project.ACT Treasury’s Infrastructure Finance and Advisory Division is reviewing the project’s suitability for financing and delivery under a Public Private Partnership.

In ProgressThe expected completion date is December 2017. This matter rests with the Chief Minister, Treasury and Economic Development Directorate.


ACT AUDITOR-GENERAL’S REPORT – CERTAIN LAND DEVELOPMENT AGENCY ACQUISITIONS, NO. 7 OF 2016, 30 SEPTEMBER 2016

Recommendation number and summary Action Status*

1: Purpose of Land AcquisitionsACT Government agencies proposing to acquire land should identify the purpose for which the land is to be acquired and the means by which the land is to be acquired, e.g. a market-based transaction or acquisition under the Lands Acquisition Act 1994 (either through negotiation or by compulsory acquisition). The process to be followed should be clearly documented at an early stage.

“A comprehensive review of legislation, policies and procedures relating to land acquisitions is being undertaken. These requirements will be addressed as part of that review”.Government Response to the Auditor-General’s report 31 January 2017.

Complete.The passing by the Legislative Assembly of the City Renewal Authority and Suburban Land Agency Act 2017 has provided a clear governance framework that has addressed this recommendation.This legislation established the City Renewal Authority and Suburban Land Agency and articulates new governance arrangements from 1 July 2017. It provides robust governance arrangements and strong accountability to Ministers, Government and the community.Mechanisms enabled in the legislation to support these include:• Notifiable Instruments outlining

the Statement of Expectations from the Minister to the City Renewal Authority and the City Renewal Authority Statement of Operational Intent (S.17, S.18)

• Disallowable Instruments making directions for land acquisitions for both the City Renewal Authority and Suburban Land Agency (S.63)

• Quarterly reports on acquisitions, including copies of valuations considered during the acquisition to the Minister that are to be tabled in the Assembly (S.13)

The governance processes for the new entities will be developed and monitored by the Environment, Planning and Sustainable Development Directorate. Documentation and approvals for acquisitions will be closely overseen by Treasury and the EPSDD as part of this process.

2: Valuations for Land AcquisitionsThe Land Development Agency, in undertaking land acquisitions, should rely on formal valuations underpinned by appropriate and considered instructions. The instructions should accord with the nature of the acquisition process and be formally agreed and endorsed by an appropriate executive.

Agreed.“A review of policies and procedures for obtaining valuations is being undertaken. The above requirements will be addressed as part of that review”.Government Response to the Auditor-General’s report 31 January 2017.

Complete.A Valuations Policy and Standard Operating Procedure was completed. These require valuations conducted by the organisation to:• be obtained through a professionally

accredited valuer;• include a review of instructions to

ensure they are considered and appropriate, with endorsement by the appropriate executive; and

• be procured by staff through the Sales and Marketing Team to support consistency and provide quality assurance.

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Recommendation number and summary Action Status*

3: Information for the Land Development Agency BoardThe Land Development Agency should provide the Land Development Agency Board with information prior to acquisitions that allows the Board to authorise acquisitions in accordance with legislation.

Agreed.“This recommendation will be addressed as part of the review referred to at recommendation 1”.Government Response to the Auditor-General’s report 31 January 2017.

Complete.A Standard Operating Procedure and Staff Instruction was disseminated to staff outlining the requirements for providing information to the Board to enable it to authorise acquisitions in accordance with legislation.

4: Compulsory AcquisitionThe Land Development Agency should develop administrative guidance for the application of compulsory acquisition processes under the Lands Acquisition Act 1994 to guide staff in determining whether a potential acquisition might meet the criteria in the Act.


Complete.A guideline for staff on compulsory acquisition under the Lands Acquisitions Act 1994 was completed and circulated to staff.

5: Documentation of AcquisitionsThe Land Development Agency, when undertaking acquisitions, should fully document the reasons for the acquisition and the rationale for the price paid for the acquisition.


Complete.A Staff Instruction on documentation requirements for acquisitions was issued. This is in addition to the actions reported against the Auditor–General recommendation 3 above.

6: Clarification of the application of the Land Acquisition Policy FrameworkThe Land Development Agency, in recommending changes to the Land Acquisition Policy Framework, should consult with the Minister and other ACT Government agencies on any proposed changes. It would also be prudent to seek legal advice in developing any proposed changes.

Agreed.“Relevant Ministers and stakeholders will be consulted on any proposed changes arising from the review of land acquisition policies and procedures”.Government Response to the Auditor-General’s report 31 January 2017.

Complete.A Staff Instruction was issued clearly articulating the business unit responsible for all matters relating to the Land Acquisition Policy Framework.

7: Procurement and ContractingThe Land Development Agency and Economic Development should develop policy and associated procedures with respect to the contracting of former executives and staff through ongoing non competitive procurement processes. The policy and associated procedures should provide explicit guidance on the circumstances in which it is appropriate for former executives and staff to be employed through on-going non-competitive procurement processes.

Agreed.“The LDA has completed a comprehensive review of its business protocols and practices which includes the matter of single select procurement and the employment of former LDA executive staff. New policies and procedures will be developed to address the matters identified in the Audit Report”.Government Response to the Auditor-General’s report 31 January 2017.

Complete.A whole of government policy on Commercial engagements with former ACTPS executives was issued by the Chief Minister, Treasury and Economic Development Directorate.This document brings together established procurement and recruitment policies in a whole of government context to address the issue of contracting former executives and staff.

* Status updates against the recommendations of Auditor-General Report No. 7 of 2016 - Certain Land Development Agency Acquisitions reflect the structural arrangements for the reporting period. Actions implemented to address the Audit recommendations have been carried forward Into the new structure and will be developed and monitored by the Environment, Planning and Sustainable Development Directorate.




B.4 RISK MANAGEMENTThe LDA’s approach to risk management conforms to the International Standard ISO 31000:2009 - Risk Management - Principles and Guidelines. This standard applies throughout the ACT public sector.

The LDA Executive was committed to, and placed a high priority on, effective risk management across the full range of organisational functions. The enterprise approach to managing risk at strategic and operational levels included the incorporation of appropriate fraud prevention and control processes and practices, to ensure the early identification and treatment of emerging risks. The Executive sought to create a risk culture where risk was considered at every level within the organisation, and where risk and business opportunity could co-exist.

All planning processes within the LDA, including strategic planning, and organisational project management, incorporated risk management. Business integrity risk was further supported by the appointment of an in-house Senior Executive Responsible for Business Integrity Risk (SERBIR).

During 2016-17, the LDA Management and the Board reviewed and amended:

> The Risk Management Framework, Risk Management Plan and Strategic Risk Register; and

> The Fraud and Corruption Control Plan and the Fraud Risk Register.

The LDA complied with the ACT Government’s Active Certification Program. The Active Certification Program requires regular 13 week audits of all construction contracts by an independent auditor. Any findings are actioned with their implementation closely monitored and reported. Audits continued to be well received by civil contractors and contributed to continuous improvements being made in safety systems across the civil construction industry. Monitoring of Work Health and Safety (WHS) during the construction phase of projects was undertaken by the relevant contractor or consultant and reported to the LDA on a monthly basis. The LDA Land Development team provided a bi-monthly WHS update to contractors to ensure a shared understanding of current and emerging safety issues.

To maintain relevance and currency, the Board Audit and Risk Committee (BARC) conducted a rolling review of the LDA Strategic Risk Register, and made recommendations to the LDA Board as to the adequacy of existing treatments and the adoption of additional treatments.



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B.5 INTERNAL AUDITThe LDA BARC and internal auditors provided independent assurance and assistance to the LDA Board on risk management, financial controls and legal compliance, as well as external accountability responsibilities.

The LDA BARC Charter provided the framework for the conduct of the internal audit function of the LDA. Annual and rolling forward audit programs were guided by governance, risk and compliance programs and supported by an audit recommendations register.

The following internal audits were completed during 2016-17:

> the LDA Strategic Land Acquisitions (closed October 2016);

> the LDA Performance Reporting to Management and the Board;

> the Post-Implementation Review of the Conduct of the LDA Joint Ventures (Forde, Crace); and

> the LDA Review of the Engagement of Sales Agents.

The LDA BARC played a significant role in the ongoing monitoring of the LDA Governance Program, particularly during the preparation and implementation of revised governance arrangements announced by the ACT Government in October 2016. The LDA BARC met six times during 2016-17.

MEMBERSHIP OF THE INTERNAL LDA BOARD AUDIT AND RISK COMMITTEE

Name of Member Position Meetings attended (of the total of 6)

Sandra Lambert Chair 6

Ben Ponton* Member 1

Karen Doran* Member 1

Cherelle Murphy Member 5

Neil Bulless Member 4

* Mr Ben Ponton’s membership ended in November 2016 and Ms Karen Doran acted in Ben Ponton’s position for the July 2016 meeting.

A member of the ACT Audit Office attended part of all the LDA BARC meetings to report the status of Audit Office reports.




B.6 FRAUD PREVENTIONThe ACT Integrity Policy requires the ACT Government directorates and agencies to prepare a Fraud and Corruption Prevention Plan every two years. As part of the review process an integrity risk assessment must be undertaken assessing changes to the organisation’s operations and environment since the previous plan.

The LDA Fraud and Corruption Control Plan 2017-2019 (the Plan) and Fraud Risk Register provided the basis of the LDA’s responsibilities as they related to the prevention of fraud and corruption. The LDA Executive and the BARC oversaw the development and implementation of fraud prevention activities consistent with the Plan and reviewed the Plan to meet the ACT Integrity Policy’s requirement to conduct biennial reviews.

Fraud awareness and ethics training was available through Fraud Information Sessions, and was a core component of the CMTEDD Tier One Induction. This training was available to all the LDA staff. Fraud awareness education programs were made available to all employees in 2016-17.

SENIOR EXECUTIVE RESPONSIBLE FOR BUSINESS INTEGRITY RISKThe Senior Executive Responsible for Business Integrity Risk (SERBIR) during 2016-17 was the Director – Urban Projects. The SERBIR provided regular reports to the BARC, and championed the adoption of integrity strategies throughout the agency. The SERBIR also reported on integrity training offered to staff on a regular basis.

During 2016-17 there were no findings of fraudulent behaviour. During the reporting period one matter of a perceived conflict of interest was investigated and referred to the Chief Executive.



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B.7 WORK HEALTH AND SAFETYWork Health and Safety (WHS) was a priority for the LDA and was managed in accordance with the statutory provisions of the WHS Act and supported by a range of whole of government work health and safety and return to work policies and initiatives. The CMTEDD Corporate People and Capability team and the CMTEDD Safety Support team provided guidance and support to the LDA in implementing the requirements under the WHS Act.

During 2016-17 the LDA was not issued (under Part 10 of the WHS Act) with any improvement, prohibition or non-disturbance notices, nor did the LDA fail to comply with any enforceable undertakings under Part 11 or Part 2 (Divisions 2.2, 2.3 and 2.4) of the WHS Act.

HEALTH AND SAFETY STRUCTURES AND CONSULTATION ARRANGEMENTSThe new CMTEDD work health and safety management system (PeopleSafety) was endorsed by the CMTEDD’s Executive Management Group in December 2016. The CMTEDD People and Capability Branch organised training sessions for all Executive staff. The LDA staff were represented at the CMTEDD Health and Safety Network which reports to the CMTEDD Tier 1 WHS Committee. The LDA Board received monthly WHS updates and copies of the Health and Safety Committee meetings minutes were uploaded to the staff intranet. Two LDA staff were elected as Health and Safety Representatives.

During the reporting period the RiskMan Accident and Incident reporting tool continued to be promoted to staff across the LDA.

INJURY PREVENTION AND HEALTH AND WELLBEINGThe LDA implemented a range of injury prevention and health and wellbeing initiatives and continued to promote a culture where health, safety and wellbeing are a part of everyday business. Initiatives implemented included:

Safety PromotionPromotion of Safe Work Australia’s Safety Month in October 2016 including a range of activities held during the month to help reduce the risk of accidents and incidents within the office and to encourage the ongoing development and promotion of WHS policies.

Health and Wellbeing > ‘Health and Wellbeing’ reimbursement initiative (not exceeding $100 per annum, from April 2016 to March 2017)

to financially support employees to participate in health and wellbeing activities;

> influenza vaccinations offered onsite to staff (April 2017);

> Healthy Weight week held in February 2017 was promoted across the LDA;

> Healthy Food and Drink Choices Policy was implemented; and

> Boot camp lunch time activity commenced in September 2016.

Health and Safety Training > induction sessions that included WHS information;

> sun smart information sessions for employees working outside; and

> First Aid Officer and Health and Safety Representative training.


Early Intervention and Injury Management > ongoing provision of work station assessments;

> engagement of rehabilitation providers for both compensable and non-compensable injuries/illnesses to support employees to an early, safe and supported return to the workplace;

> a carer’s room, located within the workplace, was provided for staff to utilise to assist in reducing pressures that can arise through caring responsibilities;

> provision and promotion of professional and confidential counselling services available to staff and their families through the Employee Assistance Program (EAP) provided by Converge International; and

> provision and promotion of the EAP Manager Assist Program.

NOTIFIABLE INCIDENTSThe LDA did not report any ‘notifiable incidents’ to the regulator in accordance with Part 3, Section 38 of the WHS Act 2011.


Jaime EltonDirectorEPSDD People and Capability+61 2 6207 [email protected]

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B.8 HUMAN RESOURCES MANAGEMENTUnder an arrangement between the LDA and the CMTEDD, the Human Resource (HR) function was developed internally during this period. The unit provided strategic, operational and technical advice and HR support to Executives, managers and staff of the LDA. The unit performed a number of HR functions for the LDA and facilitated the provision of support directly from Shared Services.

The human resource priorities were guided by the CMTEDD Corporate Framework, and as specified within the CMTEDD Strategic People Plan 2015-2017, centred on:

> Culture: To develop and maintain a positive workplace culture that positions the CMTEDD (including the LDA) as a collaborative workplace that optimises retention and engagement of staff;

> Capability: To identify, develop and maintain a workforce with the skills and capabilities required to meet organisational goals now and into the future; and

> Accountability: To maximise relevant legislative and policy compliance, and contribution to the One Government approach.

LEARNING AND DEVELOPMENTThe LDA continued to provide learning and development opportunities to strengthen its workforce, build organisational capability, encourage retention and enhance ongoing performance. This was achieved by providing a range of in-house learning and development opportunities that were identified in the training needs analysis conducted in February 2017. This suite of training programs was complemented by utilising the ACT Public Service training calendar, attending conferences and various specialist programs.

Learning and Development activities offered in-house included, but were not limited to, the programs outlined below.

IN-HOUSE LEARNING AND DEVELOPMENTRespect, Equity and Diversity (RED) (General and Managers): These training programs were designed to increase awareness and understanding of the ACT Public Service RED Framework. The managers’ training looked specifically at managerial responsibilities, particularly their role in bullying prevention.

Work Health and Safety: Asbestos Awareness: The new regulation (section 445 of the Work Health and Safety Regulation) mandates this training for all construction occupations. The regulation mandates a specific training course - the VET course Asbestos Awareness (10314NAT).

General Construction Induction Card (White Card): General Construction Induction Training is a nationally accredited competency unit known as “Work safely in the construction industry”. The competency unit is a formal face to face training program that provides workers in the construction industry with an awareness and understanding of:

> their rights and responsibilities under Work Health and Safety law;

> common hazards and risks in the construction industry;

> basic risk management principles; and

> the standard of behaviour expected of workers on construction sites.


WHS Due Diligence / Assessing Tenders: This program enhanced staff awareness and understanding of obligations and issues in relation to contract management and WHS.

Privacy: Introduction privacy training increased participants’ knowledge of the Information Privacy Act 2014 and awareness of the issues that arise in the debate about information privacy and the use and disclosure of personal information.

Freedom of Information: The ACT Government Freedom of Information (FOI) training introduced the operations of the Freedom of Information Act 1989, FOI processing and the exemption provisions.

Fraud and Ethics Awareness: This program enhanced staff awareness and understanding of obligations and issues relating to fraud and ethics.

Other Internally Facilitated in-house Learning and DevelopmentStaff Induction: The induction program was divided into two half day sessions, with the first providing new employees with an overview of the functions of the CMTEDD (including the LDA) and an understanding of expectations in the workplace, conditions of service and WHS. The second session focused more specifically on the LDA and provided greater detail of business units and their objectives, local WHS and staff consultative arrangements. This included staff gaining an understanding of how land is developed in the ACT.

Total Records Information Management (TRIM) Training: This training developed the skills of staff who use the TRIM dataset and provides the skills necessary to register documents and how to use the action tracking capabilities.

Other Whole of Government Learning and DevelopmentDuring 2016-17, the LDA continued its commitment to WhoG learning and development activities, including participation in the Executive Professional Development Presentation series. The LDA also had two participants in the 2017 ACTPS Graduate Program.

WORKPLACE RELATIONSConditions of employment for LDA employees were provided by two stream based enterprise agreements - the ACT Public Service Administrative and Related Classification Enterprise Agreement 2013-2017 (the Administrative Agreement) and the ACT Public Service Technical and Other Professionals Enterprise Agreement 2013-2017 (the Technical and Other Professionals Agreement). These agreements applied throughout the 2016-17 reporting period.

During the 2016-17 reporting period, the LDA utilised attraction and retention incentives under the terms of the ACTPS enterprise agreements to attract and maintain a skilled and diverse workforce.

ATTRACTION AND RETENTION INCENTIVE (ARIN)

Description No. of Individual ARIns

Number of ARIns as at 30 June 2017 3

Number of employees who transferred from Special Employment Arrangements (SEA’s) during the period

0

Number of ARIns entered into during period 2

Number of ARIns terminated during period 0

Number of ARIns providing for privately plated vehicles as at 30 June 2017

0

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STAFFING PROFILEFULL TIME EQUIVALENT (FTE) AND HEADCOUNT BY DIVISION/BRANCH

Division/Branch FTE Headcount

Corporate 17.8 18

Greenfield 28.6 29

Sales, Marketing and Property Management 21.8 22

Urban Projects 29.4 30

Urban Renewal 3.0 3

Estate Development Branch 2.4 3

Office of the Deputy Director-General 6.6 7

TOTAL 109.6 112

FTE AND HEADCOUNT BY GENDER

Description Female Male Total

FTE by Gender 56.6 53 109.6

Headcount by Gender 59 53 112

% of Workforce (Headcount) 52.7% 47.3% 100.0%

HEADCOUNT BY CLASSIFICATION GROUP AND GENDER

Classification Group Female Male Total

Administrative Officers 19 7 26

Executive Officers 2 7 9

Professional Officers 2 1 3

Senior Officers 36 38 74

TOTAL 59 53 112

HEADCOUNT BY EMPLOYMENT CATEGORY AND GENDER

Employment Category Female Male Total

Casual 0 0 0

Permanent Full-time 46 42 88

Permanent Part-time 7 0 7

Temporary Full-time 4 11 15

Temporary Part-time 2 0 2

Total 59 53 112


HEADCOUNT BY DIVERSITY GROUP

Classification Group Headcount Percentage of agency workforce

Aboriginal and/or Torres Strait Islander 1 0.9%

Culturally and Linguistically Diverse 18 16.1%

People with a disability 5 4.5%

* NB: Employees may identify with more than one of the diversity groups.

HEADCOUNT BY AGE GROUP AND GENDER

Age Group Female Male Total

Under 25 2 0 2

25-34 12 8 20

35-44 22 19 41

45-54 18 12 30

55 and over 5 14 19

Total 59 53 112

AVERAGE LENGTH OF SERVICE BY GENDER

Description Female Male Total

Average years of service 7.8 9.5 8.6

RECRUITMENT AND SEPARATION RATES BY CLASSIFICATION GROUP

Classification Group Recruitment Rate Separation Rate

Executive Officers 0% 0%

Administrative Officers 47.9% 4.8%

Professional Officers 0.0% 0.0%

Senior Officers 21.0% 8.1%

Total 26.9% 7.0%


Jaime EltonDirectorEPSDD People and Capability+61 2 6207 [email protected]

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B.9 ECOLOGICALLY SUSTAINABLE DEVELOPMENTCONTRIBUTION TO ECOLOGICALLY SUSTAINABLE DEVELOPMENT

BACKGROUNDThe LDA continued to comprehensively report on sustainability in its core business – land development. This approach covered environmental, social and economic considerations in the LDA operations, thus helping to address the principles of Ecologically Sustainable Development.

The 2016-17 LDA SOI included the following key outputs:

> deliver high quality, sustainable developments, including public realm and community development;

> contribute to the strategic delivery of Government policies and priorities including those related to land development, urban and public housing renewal, suburban sustainability, strategic land acquisitions, the asbestos response, housing affordability and urban intensification, particularly along the light rail corridor; and

> consider the long-term sustainability of the Territory in all key commercial decisions on land in the ACT.

The SOI also included seven non-financial Key Performance Indicators (KPIs). In this section of the Annual Report, the KPIs covering urban water cycle management, biodiversity and landscape, design excellence, and active travel are reported. The indicators, targets and 2016-17 achievements in these categories were:

Category Key Performance Indicator Target 2016-17 Achievement

Urban Water Cycle Management

Percentage of the LDA estates with specific Water Sensitive Urban Design Strategies, ensuring the strategies are appropriate to the size and location of the project.

100% 100%

Biodiversity and Landscape

Area protected for conservation in compliance with Commonwealth and ACT legislative requirements.

100% 100%

Design Excellence Percentage of key projects that will be reviewed by the Design Review Panel prior to the Board’s consideration of Project Business Plans.

100% 100%

Active Travel Percentage of the LDA estates which include initiatives that support the Active Travel Framework.

100% 100%

Industry Awards

In 2016-17, the LDA received the following industry award:• Campbell 5 Hassett Park received the following awards:

0 202020 Vision Green Design Awards; and 0 best in Category award for Urban Design and Public Spaces from Good Designs Australia.

In 2016-17 the LDA continued to focus on delivering urban intensification in a sustainable way in line with ACT Government targets. Of the projects reported in this section, more than half are located in existing urban areas. These sites help to increase density in town centres and along transport corridors, and provide a diversity of housing options for Canberra. In many of these sites the LDA needed to balance complex requirements such as decontamination and the creation of quality urban open spaces.

The LDA has a history of industry recognition for its achievements in ecologically sustainable development. For example, Wright and Coombs were certified and then re-certified under the ecosystems, energy, waste and community categories of the Urban Development Institute of Australia (UDIA) EnviroDevelopment program.

In 2016-17, West Belconnen (now Ginninderry) was named the first 6 star GreenStar – Communities development in the ACT by the Green Building Council of Australia (GBCA). GreenStar – Communities is a national scheme to assess the sustainability of community level projects. The LDA, with other Government Land Organisations, sponsored the development of the rating tool.


Sustainability Reporting The LDA projects progressed through a process of development. This process included four phases, which covered the major steps that were necessary for an area of land to be developed and sold. At each stage of the process, projects undertook sustainability reporting against the themes of:

> energy and emissions;

> water;

> landscape and biodiversity;

> waste and materials;

> influencing design;

> community;

> transport; and

> housing affordability.

The four reporting phases are shown in the figure below:

Due Diligence

Refers to projects where due diligence procedures are being undertaken to ensure the land is ready for development

Business Plan approval

Planning

Refers to projects that are being planned, but are prior to Estate Development Plan approval.

Civil Works

Refers to projects where planning is complete but civil works and landscaping are underway.

Handover of assets

Post Occupancy

Refers to projects where civil works have been completed, assets have been handed over and people are living or

working in the area.

End of LDA involvement

Estate Development Plan approval

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While many achievements against each of the sustainability themes become standard practice across the LDA projects, at each project phase, some highlights from 2016-17 are below:

SUSTAINABILITY HIGHLIGHTS

Energy and emissions In response to ACT’s greenhouse gas emissions reduction targets, the LDA has adopted several energy efficiency practices. For example, Light Emitting Diode (LED) lighting was used for all public spaces at Throsby, Taylor Stage 1 and in part of the redevelopment works of Furzer Street Precinct, Woden.

Water Post occupancy water nutrient and water quality monitoring continued at Campbell 5. This will continue until 2019.Rain gardens were installed in the streetscapes at Southquay Greenway. Additionally, ‘stormceptors’ were put in place to remove 80%+ gross pollutants and sediment runoff before entering Tuggeranong Pond. This aimed to reduce the amount of pollutant runoff to the pond and improve the water quality of waterways in the ACT.

Landscape and biodiversity North Wright has been planned to include approximately 7.5ha of open parkland, as well as a network of landscaped areas to support biodiversity and provide amenity for the community.Throsby has high quality natural areas containing Superb Parrot nesting trees, Golden Sun Moth habitat and Box Gum Woodland. These areas were rezoned to nature reserve. To protect/manage these areas of ecological importance during the construction phase, a fence has been temporarily constructed to ensure no incursion into the nature reserve.

Waste and materials Limestone recovered from the development site at Throsby has been reused in landscaping works on site.At the Furzer Street Precinct, Woden, appropriate spoil onsite was reused under roads and within open space. Asphalt and base gravel recovered from the old roads and car park demolition was reused to construct new roads. Natural rock material salvaged from retaining walls was reused in the construction of new retaining walls.

Influencing design The LDA DRP provided advice and comment on a number of the LDA and the ED projects throughout the 2016-17 financial year as a means of enhancing design and sustainability in new estates. As an example, feedback received from the LDA DRP on North Coombs and North Wright was incorporated in the Estate Development Plan as follows:

• the area adjacent to the existing water main was provided with landscape features, with planting and seating along the periphery;

• active travel access to John Gorton Drive was provided; and

• urban open space (PRZ1) along Opperman Avenue was retained.


Community To be able to work closely with the community for redevelopment of the Canberra Brickworks, community stakeholders were invited to participate through a community panel forum. This community panel has actively participated and contributed to different stages of the land sale process, subject to probity protocols and regular review of adherence to these protocols.The LDA completed construction of the $1.4 million Grevillea Park Rowing Facility for the Capital Lakes Rowing Club to replace its old facility at Kingston Foreshore. The new facility was opened in May 2017. It will allow the Club to increase its membership and expand its para-rowing program (rowing for athletes with a disability). The Club’s former site was sold for mixed use development and will include the construction of high quality public open space. The new park will include lawns, a network of formal and informal paths adjacent to Jerrabomberra Creek, a kayak deck, and a new lookout on the point of the peninsula.Negotiations for the development of the Kingston Arts Precinct progressed. Subject to Government agreement, the preferred tenderer will be required to deliver a range of assets back to the Territory including high quality facilities for the Canberra arts community, a public events space, and a range of enhancements to the amenity of the Canberra Glassworks, Former Transport Depot and the Kingston Foreshore arts and heritage precinct. The LDA continued to implement its community development program called Mingle, which was designed to build vibrant local communities within new LDA estates. The program aimed to achieve a number of social objectives based around the notion of encouraging new residents to feel part of the community and become involved in community life and activities. Mingle ultimately assists residents to create networks, groups and programs that will become self-sustaining. The program is tailored for each suburb to suit demographics, resident feedback and proximity to surrounding services.In 2016-17 the Mingle program continued in Bonner, Moncrieff and Molonglo Valley (Wright and Coombs).The following activities were undertaken:Bonner – two activities and one community newsletter. The LDA continued to transition out of the Mingle program in Bonner and conducted a final resident survey and worked closely with a group of residents as part of the exit strategy.Molonglo Valley - 27 activities and three community newsletters. The LDA also continued to partner with a Residents Advisory Group to oversee, support and provide guidance to the community development activities. This group is comprised of volunteers from the local community.

Moncrieff – four activities and two community newsletters.The LDA continued to partner with Communities@Work to deliver a Community Development Officer to assist with planning and delivery of the Mingle program in Wright and Coombs.Activities across Bonner, Moncrieff, Wright and Coombs were supported by newsletters, online communications, community signage, letterbox delivery and social media.The LDA also engaged with the community through the ‘Celebrate Gungahlin’ festival and the ‘Carols in Town Park’ in Tuggeranong.

Transport Active travel is a key element in the planning of North Wright. Considering North Wright’s proximity to Stromlo Forest Park, an active travel street, which prioritises people and cycle movements over motorised vehicles, has been planned in North Wright. This represents Canberra’s first active travel street designed in a suburban development.

Housing Affordability Coombs and Wright have delivered approximately 900 affordable dwellings and plans to deliver in total 1,379 affordable dwellings, mainly in Multi Unit developments. This will represent about 25% of total dwelling units.Targeted releases in Throsby and Taylor will also deliver affordable housing options to eligible first home buyers.

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Projects Reported in 2016-17The following table indicates each project and its reporting phase/s for 2016-17.

Project Name Type of Development

Approx Total Site Area (ha)

Due Diligence

Planning Civil Works Post Occupancy

Belconnen Lathlain Street Precinct Residential, commercial, community

1.5 X

Belconnen Section 54 Mixed Use 0.27 X

Belconnen Section 149 Commercial 0.1 X

Belconnen Section 152 Residential, commercial

0.7 X

Bonner Residential estate

230.9 X

Campbell 5 Mixed Use 6.4 X X

Canberra Brickworks Precinct Residential, commercial

16 X

City to the Lake Mixed Use 70 X X

Coombs Residential estate

79 X

Denman Prospect Stage 1A Residential estate

53 X

Denman Prospect Stage 1B Residential estate

100 X

East Lake Residential, commercial, community

57 X

Fyshwick Section 45 Industrial 95 X

Fyshwick Section 47 Industrial 36 X

Gungahlin Town Centre East Residential, commercial, community

38 X

Hume New West Industrial 56 X X

Jacka 2 Residential estate

192 X

Kingston Foreshore High density residential, commercial

44.5 X X X X

Lawson Stage 1 Residential estate

43.5 X

Lawson Stage 2 Residential estate

30 X

Molonglo Town Centre Commercial, Mixed Use

116 X

Moncrieff Residential estate

191 X

North Coombs Residential estate

17 X


Project Name Type of Development

Approx Total Site Area (ha)

Due Diligence

Planning Civil Works Post Occupancy

North Wright Residential estate

37 X

Parkes Section 3 Mixed Use 3.4 X

Pialligo Industrial 135 X

Southquay Greenway Mixed Use, residential

24 X X

Symonston Industrial 37 X

Taylor Stage 1 Residential estate

102 X


135 X


80 X

Throsby Residential estate

106 X X

Whitlam Residential estate

285 X

Woden Furzer Street Precinct Mixed Use 2.3 X

Wright Residential estate

80 X

Urban Releases* Various single block or section releases

10.18 4 Sites

Total LDA Projects 2,513.25 22 14 6 11

* Does not include Public Housing Renewal and Asset Recycling Initiative sites

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SUSTAINABLE DEVELOPMENT PERFORMANCEThe following table provides information on the LDA’s energy, water, transport fuel and waste consumption and the associated greenhouse gas emissions. Consumption is reported for the LDA’s office accommodation and external usage within the LDA developments for the current and previous financial years.

Indicator as at 30 June Unit Current FY (2016-17)

Previous FY (2015-16)

Percentage change

Agency staff and area

Agency staff FTE 109.6 96.8 +13.2

Workplace floor area Area (m2) 1,707.2 1,573.0 +8.5

Stationary energy usage

Electricity use Kilowatt hours 192,952.0 167,490.0 +15.2

Renewable electricity use Kilowatt hours 0 0 0

Natural gas use Megajoules 0 0 0

Transport fuel usage

Total number of vehicles Number 5 4 +25.0

Total kilometres travelled Kilometres 100,714.0 76,563.0 +31.5

Fuel use – Petrol Kilolitres 4.9 2.0 +144.6

Fuel use – Diesel Kilolitres 6.2 6.7 -7.4

Fuel use – Liquid Petroleum Gas (LPG) Kilolitres 0 0 0

Fuel use – Compressed Natural Gas (CNG) Kilolitres 0 0 0

Water usage

Water use Kilolitres 1,953.0 3,393.0 -42.4

Resource efficiency and waste

Reams of paper purchased Reams 759.6 896.0 -15.2

Recycled content of paper purchased Percentage 64.4 61.5 +4.7

Waste to landfill Litres see notes see notes

Co-mingled material recycled Litres 31,938.2 33,042.0 -3.3

Paper & Cardboard recycled (incl. secure paper) Litres 42,584.3 38,020.0 +12.0

Organic material recycled Litres 3,227.9 3,527.0 -8.5

Greenhouse gas emissions

Emissions from stationary energy use Tonnes CO2-e 106.0 129.5 -18.1

Emissions from transport Tonnes CO2-e 28.0 24.0 +16.7

Total emissions Tonnes CO2-e 134.0 153.5 -12.7


SUPPORTING NOTES TO TABLEGeneral

Full-time equivalent (FTE) figures include all the LDA staff members.

All the LDA staff members occupied a tenancy located at TransACT House, Dickson on the ground floor, level 6 and level 7. The TransACT House office accommodation was shared with staff from the CMTEDD. The net lettable area (NLA) of office space has been apportioned based on the number of FTE staff within the CMTEDD and the LDA at TransACT House.

Stationary Energy

Stationary energy is the combined energy consumption of the LDA’s internal business operations and the LDA managed estates and properties throughout the ACT.

Internal business operations included the office tenant light and power generated at TransACT House ground floor, level 6 and level 7.

Internal business operations did not include the LDA’s proportion of central services consumption (from heating, cooling or water systems) of TransACT House consumption data.

Other energy consumption was generated at the LDA managed estates and properties throughout the ACT. These estates change over time as land is developed and sold. This consumption included, but was not limited to, irrigation pumps, sewer valves, gross pollutant traps, offsite storage sheds.

Transport

The LDA vehicle fleet was managed by SG Fleet (WhoG provider) who provided accurate data on the kilometres travelled and fuel consumption of all the LDA vehicles.

Five cars were used for the purpose of staff site visits, inspections, stakeholder engagements, and estate management purposes. The fleet was increased from four to five vehicles in 2016-17, which explains the increase in kilometres and fuel usage.

Water

Water consumption in TransACT House was managed through the building owner and hence not included in 2015-16 and 2016-17. Therefore, all water reported was from the LDA managed estates and properties in the ACT. These sites change over time as land is developed and sold. Water uses include irrigation water, public buildings and bubblers.

Resource Efficiency and Waste

Paper for the LDA and the CMTEDD staff was purchased together for TransACT House. Paper consumption was apportioned based on the number of FTE staff within the CMTEDD and the LDA at TransACT House.

Waste was reported based on the number of bins collected for a particular waste/recycling stream. Unless all bins were full, the reported figures may not be the actual amount of waste produced but are the best estimate available at this point in time. Bins were calculated at 240 litres per bin.

Carbon Budget

The LDA was an ACT Government agency within the CMTEDD. The carbon budget is reported on a directorate level. Thus, for carbon budget information, please refer to the CMTEDD Annual Report.



53

SECTION C

SECTION C: FINANCIAL MANAGEMENT REPORTING


C.1 FINANCIAL MANAGEMENT ANALYSISLAND DEVELOPMENT AGENCYFINANCIAL YEAR ENDED 30 JUNE 2017

55

1

Management Discussion and Analysis

Land Development Agency

For the Year Ended 30 June 2017 Objectives The key objectives of the Land Development Agency (LDA) for 2016-17 are to:

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, industrial, community and non-urban land;

act in a commercially responsible, ethical and efficient manner when developing and selling land on behalf of the ACT Government; and

balance potentially competing public sector and commercial priorities and provide opportunities for private sector development to optimise the community benefit from the ACT’s land assets.

From 1 July 2017, the LDA ceased operating and its functions have been transferred to the Suburban Land Agency, the City Renewal Authority and the Environment, Planning and Sustainable Development Directorate (EPSDD).

Public Trading Enterprise The LDA is a Public Trading Enterprise. Consistent with the ACT Government’s policy statement on competitive neutrality (Competitive Neutrality in the ACT, October 2010), the LDA applies similar costing and pricing principles, taxation and debt guarantee requirements and appropriate regulations as a fully corporatised business, including:

the acquisition of unleased land for development from the Territory on a commercial basis; land holding cost payments; stamp duty equivalency payments; application of the National Tax Equivalents Regime; and providing a commercial return to Government through the development and sale of the land.

2

Returns to the Territory

The total return to the ACT Government from the LDA’s activities consists of:

land acquisitions from the Territory at market value; capital distributions to the Government; payment of national tax equivalents; payment of dividends based on operating profit after tax; payment of land holding costs and stamp duty equivalents; and payment of payroll tax.

Table 1 below compares the total returns to the Territory in 2016-17, with the 2016-17 Budget (Statement of Intent) and the actual returns in 2015-16.

Table 1: Comparison of Returns to the Territory

Actual

2017

$’m

Budget

2017

$’m

Actual

2016

$’m

Dividends declared 259.4 211.3 173.3

National tax equivalent payments 57.9 90.6 74.3

Payments for land acquisitions 40.2 51.4 91.7

Payroll tax 0.9 1.1 0.7

Stamp duty equivalents / Land holding cost equivalents 2.9 5.2 8.8

Ordinary Return to the Territory 361.3 359.6 348.8

Capital Distribution 54.1 78.4 5.3

Total Returns to the Territory 415.4 438.0 354.1

Total returns to the Territory are higher than the previous year primarily due to an increase in the operating result as the result of a decrease in the cost of land sold. Detailed variances between the 2016-17 result, the 2015-16 result and the 2016-17 Budget (Statement of Intent) are provided below.


1

Management Discussion and Analysis


For the Year Ended 30 June 2017 Objectives The key objectives of the Land Development Agency (LDA) for 2016-17 are to:

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, industrial, community and non-urban land;

act in a commercially responsible, ethical and efficient manner when developing and selling land on behalf of the ACT Government; and

balance potentially competing public sector and commercial priorities and provide opportunities for private sector development to optimise the community benefit from the ACT’s land assets.

From 1 July 2017, the LDA ceased operating and its functions have been transferred to the Suburban Land Agency, the City Renewal Authority and the Environment, Planning and Sustainable Development Directorate (EPSDD).

Public Trading Enterprise The LDA is a Public Trading Enterprise. Consistent with the ACT Government’s policy statement on competitive neutrality (Competitive Neutrality in the ACT, October 2010), the LDA applies similar costing and pricing principles, taxation and debt guarantee requirements and appropriate regulations as a fully corporatised business, including:

the acquisition of unleased land for development from the Territory on a commercial basis; land holding cost payments; stamp duty equivalency payments; application of the National Tax Equivalents Regime; and providing a commercial return to Government through the development and sale of the land.

2

Returns to the Territory

The total return to the ACT Government from the LDA’s activities consists of:

land acquisitions from the Territory at market value; capital distributions to the Government; payment of national tax equivalents; payment of dividends based on operating profit after tax; payment of land holding costs and stamp duty equivalents; and payment of payroll tax.

Table 1 below compares the total returns to the Territory in 2016-17, with the 2016-17 Budget (Statement of Intent) and the actual returns in 2015-16.

Table 1: Comparison of Returns to the Territory

Actual

2017

$’m

Budget

2017

$’m

Actual

2016

$’m

Dividends declared 259.4 211.3 173.3

National tax equivalent payments 57.9 90.6 74.3

Payments for land acquisitions 40.2 51.4 91.7

Payroll tax 0.9 1.1 0.7

Stamp duty equivalents / Land holding cost equivalents 2.9 5.2 8.8

Ordinary Return to the Territory 361.3 359.6 348.8

Capital Distribution 54.1 78.4 5.3

Total Returns to the Territory 415.4 438.0 354.1

Total returns to the Territory are higher than the previous year primarily due to an increase in the operating result as the result of a decrease in the cost of land sold. Detailed variances between the 2016-17 result, the 2015-16 result and the 2016-17 Budget (Statement of Intent) are provided below.

57

3

Risk Management The residential, commercial and industrial markets are highly cyclical, with changes in market conditions impacting on the LDA’s land sales revenue and profit. Consequently, there is an adverse impact on the LDA’s ability to deliver forecast returns to the ACT Government if market conditions deteriorate. Favourable market conditions, on the other hand, could deliver higher than forecast returns to government. The LDA is exposed to a number of risks including regulatory risks, industry capacity and performance risks, market risks, and stakeholder risks as detailed below.

Regulatory Risks The availability of an adequate supply of appropriately zoned residential, commercial, industrial and

community land, together with concept plans and timely approvals to enable development activity to take place within planned timeframes.

Unforeseen delays in approvals and clearances from relevant directorates and Commonwealth agencies that would result in slippage in the achievement of the Indicative Land Release Program (ILRP) and associated revenue, including Asset Recycling Initiative (ARI) releases, which are also subject to a range of dependencies such as advance delivery of replacement housing stock.

Changes in Commonwealth or other regulatory requirements may add uncertainty or increase costs for LDA activities, having a flow on impact on delivery timeframes.

Current legislation relating to stratum subdivision/community title may limit some complex mixed use high quality urban renewal precincts.

Delays in statutory planning approvals by the Commonwealth relating to projects within designated land.

Industry Capacity and Performance Risks

Inability of the LDA to attract, recruit and retain a sufficient number of appropriately skilled staff.

Delays with planning and timely delivery, by other directorates and utilities providers, of the necessary capital works infrastructure in order to support the land release program.

Increases in costs due to contract performance or extension of time (e.g. from sustained wet weather) impacting on development schedules and the financial performance of projects, resulting in lower or delayed forecast returns to the Government.

Contractor’s failure to meet the requirements of the Work Health and Safety Act 2011.

The adequacy or otherwise of industry capacity and skills availability to provide necessary services to deliver land servicing and broader capital works activities.

Market Risks Volatility in market demand for land as a result of the economic environment.

Insufficient demand to absorb the release of land in line with the Government’s ILRP.

Possible increases in land servicing and construction costs.

Stakeholder Risks Inability to achieve sales revenue and land release targets.

Inability to address diverse and/or conflicting community views on development.

4

Strategies for 2016-17 The key strategies for 2016-17 that the LDA employed to achieve its objectives and effectively manage risks included:

collaborating with government agencies to establish an inventory of environmentally cleared, planned, release ready and serviced land;

undertaking strategic acquisition of land to assist in establishing an inventory of land for future development purposes;

providing detailed technical advice to the Chief Minister, Treasury and Economic Development Directorate (CMTEDD) to assist it in resolving land development issues with the Commonwealth;

working with government agencies and the community to implement strategies for key government development priorities in the city centre, town centres, major transport corridors and urban infill areas;

effectively engaging with local communities, industry associations, special interest groups and the broader ACT community to ensure relevant interests are identified and considered in LDA developments and land release activities;

pursuing initiatives to deliver affordable housing, consistent with the Affordable Housing Action Plan;

pursuing initiatives that make active travel (walking and cycling) part of Canberrans’ daily lives, consistent with the Active Travel Framework;

encouraging viable and liveable communities by providing a variety of block and dwelling types, and public spaces to suit the needs of residents and surrounding communities;

delivering community development to encourage involvement and support for community building; and

contributing to the redevelopment of the Capital Metro Corridor and the implementation of the City to the Lake project.

Going Concern From 1 July 2017, the LDA ceased operating and its functions transferred to the Suburban Land Agency, the City Renewal Authority and the Environment, Planning and Sustainable Development Directorate (EPSDD).


3

Risk Management The residential, commercial and industrial markets are highly cyclical, with changes in market conditions impacting on the LDA’s land sales revenue and profit. Consequently, there is an adverse impact on the LDA’s ability to deliver forecast returns to the ACT Government if market conditions deteriorate. Favourable market conditions, on the other hand, could deliver higher than forecast returns to government. The LDA is exposed to a number of risks including regulatory risks, industry capacity and performance risks, market risks, and stakeholder risks as detailed below.

Regulatory Risks The availability of an adequate supply of appropriately zoned residential, commercial, industrial and

community land, together with concept plans and timely approvals to enable development activity to take place within planned timeframes.

Unforeseen delays in approvals and clearances from relevant directorates and Commonwealth agencies that would result in slippage in the achievement of the Indicative Land Release Program (ILRP) and associated revenue, including Asset Recycling Initiative (ARI) releases, which are also subject to a range of dependencies such as advance delivery of replacement housing stock.

Changes in Commonwealth or other regulatory requirements may add uncertainty or increase costs for LDA activities, having a flow on impact on delivery timeframes.

Current legislation relating to stratum subdivision/community title may limit some complex mixed use high quality urban renewal precincts.

Delays in statutory planning approvals by the Commonwealth relating to projects within designated land.

Industry Capacity and Performance Risks

Inability of the LDA to attract, recruit and retain a sufficient number of appropriately skilled staff.

Delays with planning and timely delivery, by other directorates and utilities providers, of the necessary capital works infrastructure in order to support the land release program.

Increases in costs due to contract performance or extension of time (e.g. from sustained wet weather) impacting on development schedules and the financial performance of projects, resulting in lower or delayed forecast returns to the Government.

Contractor’s failure to meet the requirements of the Work Health and Safety Act 2011.

The adequacy or otherwise of industry capacity and skills availability to provide necessary services to deliver land servicing and broader capital works activities.

Market Risks Volatility in market demand for land as a result of the economic environment.

Insufficient demand to absorb the release of land in line with the Government’s ILRP.

Possible increases in land servicing and construction costs.

Stakeholder Risks Inability to achieve sales revenue and land release targets.

Inability to address diverse and/or conflicting community views on development.

4

Strategies for 2016-17 The key strategies for 2016-17 that the LDA employed to achieve its objectives and effectively manage risks included:

collaborating with government agencies to establish an inventory of environmentally cleared, planned, release ready and serviced land;

undertaking strategic acquisition of land to assist in establishing an inventory of land for future development purposes;

providing detailed technical advice to the Chief Minister, Treasury and Economic Development Directorate (CMTEDD) to assist it in resolving land development issues with the Commonwealth;

working with government agencies and the community to implement strategies for key government development priorities in the city centre, town centres, major transport corridors and urban infill areas;

effectively engaging with local communities, industry associations, special interest groups and the broader ACT community to ensure relevant interests are identified and considered in LDA developments and land release activities;

pursuing initiatives to deliver affordable housing, consistent with the Affordable Housing Action Plan;

pursuing initiatives that make active travel (walking and cycling) part of Canberrans’ daily lives, consistent with the Active Travel Framework;

encouraging viable and liveable communities by providing a variety of block and dwelling types, and public spaces to suit the needs of residents and surrounding communities;

delivering community development to encourage involvement and support for community building; and

contributing to the redevelopment of the Capital Metro Corridor and the implementation of the City to the Lake project.

Going Concern From 1 July 2017, the LDA ceased operating and its functions transferred to the Suburban Land Agency, the City Renewal Authority and the Environment, Planning and Sustainable Development Directorate (EPSDD).

59

5

Financial Performance The following financial information is based on the audited 2016-17 Financial Statements. Income

Components of Income As shown in Figure 1 below, the LDA derived 98.0% of its total income for the year ended 30 June 2017 from land sales, 1.4% from interest, 0.4% from other income, 0.2% from resources received free of charge and 0.1% from share of joint venture profit.

Figure 1: Components of Income

Land Sales (98.0%)

Interest (1.4%)

Other Income (0.4%)

Resource Received Free of Charge (0.2%) Share of Joint Venture Profit (0.1%)

6

Components of Land Revenue As shown in Figure 2, 66.5% of the LDA’s land revenue was derived from residential land sales for the year ended 30 June 2017, 25.6% from commercial and industrial land sales, 4.3% from infrastructure revenue delivered by third parties and 3.6% from community land sales.

There was a prior year Goods and Services Tax (GST) adjustment which reduced land revenue by $6.0 million.

Figure 2: Components of Land Revenue

Residential Land Sales (66.5%)

Commercial and Industrial Land Sales (25.6%)

Infrastructure Delivered by Third Parties (4.3%)

Community Land Sales (3.6%)


5

Financial Performance The following financial information is based on the audited 2016-17 Financial Statements. Income

Components of Income As shown in Figure 1 below, the LDA derived 98.0% of its total income for the year ended 30 June 2017 from land sales, 1.4% from interest, 0.4% from other income, 0.2% from resources received free of charge and 0.1% from share of joint venture profit.

Figure 1: Components of Income

Land Sales (98.0%)

Interest (1.4%)

Other Income (0.4%)

Resource Received Free of Charge (0.2%) Share of Joint Venture Profit (0.1%)

6

Components of Land Revenue As shown in Figure 2, 66.5% of the LDA’s land revenue was derived from residential land sales for the year ended 30 June 2017, 25.6% from commercial and industrial land sales, 4.3% from infrastructure revenue delivered by third parties and 3.6% from community land sales.

There was a prior year Goods and Services Tax (GST) adjustment which reduced land revenue by $6.0 million.

Figure 2: Components of Land Revenue



Infrastructure Delivered by Third Parties (4.3%)

Community Land Sales (3.6%)

61

8

Total Expenses

Components of Expenses

Total expenses for the year ended 30 June 2017 (as shown in Figure 4) were predominantly for cost of land sold, which was 50.9% of the total. The two components of cost of land sold are development costs 33.3% and land acquisitions 17.6%. The remaining balance of total expenses was for other expenses 35.1%, supplies and services 7.7% and employee expenses 6.3%.

Comparison to 2016-17 Budget Actual expenses of $228.3 million were lower than the budget amount of $334.8 million by $106.5 million (31.8%). The variance to budget of $106.5 million was due mainly to:

• lower than anticipated cost of land sold by $72.3 million due to lower capitalised development costs and land transfers and acquisitions due to the majority of 2016-17 revenue being achieved through sales of englobo, commercial, community and ARI sites which require minimum development before settlement; and

• lower other expenses by $23.0 million mainly due to lower than budgeted transfer of ARI assets from other government agencies free of charge and subsequent inventory write down; partially offset by the higher inventory write-down of pre-development activity costs that have previously been recognised as Inventory.

Actual National Tax Equivalents expense of $57.9 million were lower than the budget amount of $90.6 million by $32.7 million (36.1%) mainly due to de-recognition of the deferred tax liability from the Balance Sheet, resulting in a decrease in the National Tax Equivalents expenses on the Statement of Comprehensive Income.

Figure 4: Components of Expenses

Cost of Land Sold - development costs (33.3%)

Cost of Land Sold - land acquisitions (17.6%)

Other Expenses (35.1%)

Supplies and Services (7.7%)

Employee Expenses (6.3%)

7

Components of Gross Profit

As shown in Figure 3, 71.2% of the LDA’s gross profit was derived from residential land sales for the year ended 30 June 2017, 23.6% from commercial and industrial land sales, and 4.3% from community and other land sales.

Comparison to 2016-17 Budget Actual income, including total income and the share of profit from joint ventures, of $545.6 million was $91.1 million (14.3%) lower than the budgeted amount of $636.7 million. Actual land sales revenue of $534.5 million was $95.3 million (15.1%) lower than the budgeted amount of $629.8 million. The underachievement in land sales is mainly due to lower than budgeted land sales in Throsby and the deferred settlement of a number of Asset Recycling Initiative (ARI) sites to future years; partially offset by the settlement of the ACT Government Office block in the Canberra City not anticipated in the budget. Comparison to 2015-16 Actual Actual income, including total income and the share of profit from joint ventures, of $545.6 million was $72.1 million (11.7%) lower than the 2015-16 actual result of $617.7 million. Actual land sales revenue of $534.5 million was $59.2 million (10.0%) lower than revenue achieved in 2015-16 of $593.7 million due to:

• decreased land settlements in Moncrieff and Lawson due to finalisation of the projects; and

• additional GST paid to the Australian Taxation Office (ATO) as a result of the unfavourable outcome from an Alternative Dispute Resolution (ADR) process in relation to the application of Item 4 Section 75-10(3) of the A New Tax System (Goods and Services Tax) Act 1999 regarding the supply of property made by the LDA for land sales in prior years and the definition of improvements.

The above decreases were partially offset by:

• increased commercial and industrial land sales including the sale of an ACT Government Office block in the Canberra City, a site in Forrest and two ARI Sites, Braddon 1/52 (Allawah Flats) and Lyneham 3/115 (Owen Flats); and

• increased infrastructure revenue from third parties associated with the sale of ARI sites, Denman Prospect and a site at Kingston Foreshore.

Figure 3: Components of Gross Profit



Community Land Sales/ Other (4.3%)


8

Total Expenses

Components of Expenses

Total expenses for the year ended 30 June 2017 (as shown in Figure 4) were predominantly for cost of land sold, which was 50.9% of the total. The two components of cost of land sold are development costs 33.3% and land acquisitions 17.6%. The remaining balance of total expenses was for other expenses 35.1%, supplies and services 7.7% and employee expenses 6.3%.

Comparison to 2016-17 Budget Actual expenses of $228.3 million were lower than the budget amount of $334.8 million by $106.5 million (31.8%). The variance to budget of $106.5 million was due mainly to:

• lower than anticipated cost of land sold by $72.3 million due to lower capitalised development costs and land transfers and acquisitions due to the majority of 2016-17 revenue being achieved through sales of englobo, commercial, community and ARI sites which require minimum development before settlement; and

• lower other expenses by $23.0 million mainly due to lower than budgeted transfer of ARI assets from other government agencies free of charge and subsequent inventory write down; partially offset by the higher inventory write-down of pre-development activity costs that have previously been recognised as Inventory.

Actual National Tax Equivalents expense of $57.9 million were lower than the budget amount of $90.6 million by $32.7 million (36.1%) mainly due to de-recognition of the deferred tax liability from the Balance Sheet, resulting in a decrease in the National Tax Equivalents expenses on the Statement of Comprehensive Income.

Figure 4: Components of Expenses

Cost of Land Sold - development costs (33.3%)

Cost of Land Sold - land acquisitions (17.6%)

Other Expenses (35.1%)

Supplies and Services (7.7%)

Employee Expenses (6.3%)

63

9

Comparison to 2015-16 Actual Total expenses for 2016-17 of $228.3 million were $141.9 million (38.3%) lower than the 2015-16 amount of $370.2 million mainly due to decreased cost of land sold by $192.1 million. This was primarily due to the majority of revenue in 2016-17 being achieved through sales of englobo, commercial, community and ARI sites which require minimum development before settlement.

Dividends The LDA operated under a policy of paying 100% of its operating surplus as a dividend to the ACT Government. The dividend declared for the 2016-17 year was $259.4 million of which an interim dividend of $162.3 million was paid June 2017. This was $48.1 million (22.8%) higher compared to the budget of $211.3 million as a consequence of lower than anticipated capitalised development costs and land transfers and acquisitions which resulted in a higher operating surplus.

The dividend declared for the 2016-17 year was $86.1 million (49.7%) higher than the 2015-16 dividend of $173.3 million due to a decrease in the cost of land sold in 2016-17 which resulted in an increased operating surplus.


10

Financial Position

Key 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 to maintain long-term liabilities at prudent levels.

Total Assets

Components of Total Assets In 2016-17 the LDA maintained a strong net asset position due to its cash, receivables and inventory holdings in comparison with its liabilities.

Total assets at 30 June 2017 (as shown in Figure 5) comprised current and non-current inventories 45.2%, cash 34.3%, current and non-current receivables 12.8%, property, plant and equipment 7.6% and other assets 0.1%.

Comparison to Budget at 30 June 2017

The LDA’s total asset position at 30 June 2017 of $558.8 million was lower than the budget amount of $645.4 million by $86.6 million (13.4%). The variance to budget of $86.6 million was mainly due to lower than expected:

• inventories by $123.7 million primarily due to lower than budgeted development activity and associated expenditure due to construction delays caused by persistent unfavourable weather conditions.; and

• investment in the West Belconnen Joint Operation in 2016-17. These investments have been delayed to future years.

These were partially offset by higher than anticipated:

• property, plant and equipment by $39.1 million due to unbudgeted rural land purchases and addition of assets of the West Belconnen Joint Operation; and

• receivables by $49.3 million due to higher than budgeted infrastructure assets receivable and unbudgeted loan provided to the West Belconnen Joint Operation.

Figure 5: Components of Total Assets

Inventories (45.2%)

Cash and Cash Equivalents (34.3%)

Receivables (12.8%)

Property, plant and equipment (7.6%)

Other Assets (0.1%)

65

11

Comparison to Actual at 30 June 2016 The LDA’s total asset position at 30 June 2017 of $558.8 million is $31.8 million (5.4%) lower than the 30 June 2016 asset position of $590.6 million. The variance to actual at 30 June 2016 of $31.8 million is mainly due to a decrease in:

• cash by $92.2 million largely due to a timing and amount difference in the payment of the interim dividend to Government.

This was partially offset by an increase in:

• receivables by $34.6 million due to higher infrastructure receivable from third parties at 30 June 2017 and loan provided to the West Belconnen Joint Operation in 2016-17;

• property, plant and equipment by $16.8 million due to the purchase of rural land and the inclusion of fixed assets of the West Belconnen Joint Operation; and

• inventories by $9.5 million mainly due to increased land inventory accrual as a result of the revaluation of Taylor and Throsby, offset by the inventory write off for the cost of due diligence.

Liquidity Liquidity refers to the ability of the LDA to satisfy its short-term debts as they fall due. This ability was demonstrated by the LDA’s ‘current ratio’ (set out in Table 2 below), which compared the ability to fund short-term liabilities from short-term assets. The current ratio of 1.0 shows that the LDA is able to meet its short-term debts at 30 June 2017. From 1 July 2017, the LDA ceased operating as a separate entity and its functions transferred to the Suburban Land Agency, the City Renewal Authority and EPSDD.

Table 2: Current Assets to Current Liabilities

Actual Actual

at 30 June 2015-16 2016-17

$’m $’m

Total Current Assets 446.8 349.9

Total Current Liabilities 379.0 347.3

Current Ratio 1.2 1.0

Total Liabilities Figure 6 shows the LDA’s total liabilities comprising other provisions 32.0%, payables 29.8%, other liabilities 26.0%, national tax equivalents payable 11.0%, and employee benefits 1.2%. Other liabilities reflect revenue received in advance for exchanged land blocks and the balance of the dividend to be paid to the ACT Government. Other provisions reflect the expected costs required to finish public domain works in LDA estates where operational acceptance has been obtained and the value of infrastructure assets that are to be transferred to the relevant ACT Government agency when construction is completed. Payables largely comprise of the GST payable to the ATO and accrued development costs and administration expenses. The LDA’s national tax equivalents payable reflected the balance of national tax equivalents payable to the ACT Government in 2017-18.

12


The LDA’s total liability position at 30 June 2017 of $436.4 million was lower than the budget amount of $519.6 million by $83.2 million (16.0%). The variance to budget of $83.2 million was mainly due to lower than expected:

• other liabilities by $149.2 million predominantly due to lower than budgeted final dividend payable as the result of a higher than expected interim dividend payment made in 2016-17;

• national tax equivalents payable by $24.3 million due to the higher than anticipated instalment payments during the year; and

• deferred tax liability by $37.8 million due to the LDA ceasing its operations as a separate entity from 1 July 2017. The deferred tax liability has been de-recognised from the Balance Sheet, resulting in a decrease in the National Tax Equivalents expenses on the Statement of Comprehensive Income.

These were partially offset by an increase in:

• payables by $101.8 million due largely to higher than anticipated payables to the EPSDD for land developed or yet to be developed, higher than budgeted capital distribution payable to CMTEDD following the transfer of Red Hill Flats to the LDA as a capital injection and higher than expected GST payable to the ATO; and

• other provisions by $25.5 million due to higher than budgeted infrastructure asset liabilities.

Comparison to Actual at 30 June 2016

The LDA’s total liability position at 30 June 2017 of $436.4 million was $31.8 million (6.8%) lower than the 30 June 2016 liability position of $468.2 million. The variance to actual at 30 June 2016 of $31.8 million was due to decreases in:

• national tax equivalents payable by $32.2 million due to the increased instalment payments during the year; and


These were partially offset by an increase in payables by $29.7 million resulting from an increase in payables to the EPSDD for land developed or yet to be developed at 30 June 2017.

Figure 6: Components of Total Liabilities

Other Provisions (32.0%)

Other Liabilities (26.0%)

Payables (29.8%)

National Tax Equivalents Payable (11.0%)

Employee Benefits (1.2%)


11

Comparison to Actual at 30 June 2016 The LDA’s total asset position at 30 June 2017 of $558.8 million is $31.8 million (5.4%) lower than the 30 June 2016 asset position of $590.6 million. The variance to actual at 30 June 2016 of $31.8 million is mainly due to a decrease in:

• cash by $92.2 million largely due to a timing and amount difference in the payment of the interim dividend to Government.

This was partially offset by an increase in:

• receivables by $34.6 million due to higher infrastructure receivable from third parties at 30 June 2017 and loan provided to the West Belconnen Joint Operation in 2016-17;

• property, plant and equipment by $16.8 million due to the purchase of rural land and the inclusion of fixed assets of the West Belconnen Joint Operation; and

• inventories by $9.5 million mainly due to increased land inventory accrual as a result of the revaluation of Taylor and Throsby, offset by the inventory write off for the cost of due diligence.

Liquidity Liquidity refers to the ability of the LDA to satisfy its short-term debts as they fall due. This ability was demonstrated by the LDA’s ‘current ratio’ (set out in Table 2 below), which compared the ability to fund short-term liabilities from short-term assets. The current ratio of 1.0 shows that the LDA is able to meet its short-term debts at 30 June 2017. From 1 July 2017, the LDA ceased operating as a separate entity and its functions transferred to the Suburban Land Agency, the City Renewal Authority and EPSDD.

Table 2: Current Assets to Current Liabilities

Actual Actual

at 30 June 2015-16 2016-17

$’m $’m

Total Current Assets 446.8 349.9

Total Current Liabilities 379.0 347.3

Current Ratio 1.2 1.0

Total Liabilities Figure 6 shows the LDA’s total liabilities comprising other provisions 32.0%, payables 29.8%, other liabilities 26.0%, national tax equivalents payable 11.0%, and employee benefits 1.2%. Other liabilities reflect revenue received in advance for exchanged land blocks and the balance of the dividend to be paid to the ACT Government. Other provisions reflect the expected costs required to finish public domain works in LDA estates where operational acceptance has been obtained and the value of infrastructure assets that are to be transferred to the relevant ACT Government agency when construction is completed. Payables largely comprise of the GST payable to the ATO and accrued development costs and administration expenses. The LDA’s national tax equivalents payable reflected the balance of national tax equivalents payable to the ACT Government in 2017-18.

12


The LDA’s total liability position at 30 June 2017 of $436.4 million was lower than the budget amount of $519.6 million by $83.2 million (16.0%). The variance to budget of $83.2 million was mainly due to lower than expected:

• other liabilities by $149.2 million predominantly due to lower than budgeted final dividend payable as the result of a higher than expected interim dividend payment made in 2016-17;

• national tax equivalents payable by $24.3 million due to the higher than anticipated instalment payments during the year; and


These were partially offset by an increase in:

• payables by $101.8 million due largely to higher than anticipated payables to the EPSDD for land developed or yet to be developed, higher than budgeted capital distribution payable to CMTEDD following the transfer of Red Hill Flats to the LDA as a capital injection and higher than expected GST payable to the ATO; and

• other provisions by $25.5 million due to higher than budgeted infrastructure asset liabilities.

Comparison to Actual at 30 June 2016

The LDA’s total liability position at 30 June 2017 of $436.4 million was $31.8 million (6.8%) lower than the 30 June 2016 liability position of $468.2 million. The variance to actual at 30 June 2016 of $31.8 million was due to decreases in:

• national tax equivalents payable by $32.2 million due to the increased instalment payments during the year; and


These were partially offset by an increase in payables by $29.7 million resulting from an increase in payables to the EPSDD for land developed or yet to be developed at 30 June 2017.

Figure 6: Components of Total Liabilities

Other Provisions (32.0%)

Other Liabilities (26.0%)

Payables (29.8%)

National Tax Equivalents Payable (11.0%)

Employee Benefits (1.2%)

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C.2 FINANCIAL STATEMENTSFINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2017


INDEPENDENT AUDIT REPORT

LAND DEVELOPMENT AGENCY

To the Members of the ACT Legislative Assembly Audit opinion I am providing an unqualified audit opinion on the financial statements of the Land Development Agency for the year ended 30 June 2017. The financial statements comprise the statement of comprehensive income, balance sheet, statement of changes in equity, cash flow statement and accompanying notes. In my opinion, the financial statements: (i) are presented in accordance with the Financial Management Act 1996, Australian

Accounting Standards and other mandatory financial reporting requirements in Australia; and

(ii) present fairly the financial position of the Land Development Agency and results of its operations and cash flows.

Basis for the audit opinion The audit was conducted in accordance with Australian Auditing Standards. I have complied with the requirements of the Accounting Professional and Ethical Standards 110 Code of Ethics for Professional Accountants. I believe that sufficient evidence was obtained during the audit to provide a basis for the audit opinion. Responsibility for preparing and fairly presenting the financial statements The Governing Board of the Land Development Agency is responsible for: preparing and fairly presenting the financial statements in accordance with the

Financial Management Act 1996 and relevant Australian Accounting Standards; determining the internal controls necessary for the preparation and fair presentation of

financial statements so that they are free from material misstatements, whether due to error or fraud; and

assessing the ability of the Land Development Agency to continue as a going concern and disclosing, as applicable, matters relating to going concern and using the going concern basis of accounting in preparing the financial statements.

Responsibility for the audit of the financial statements Under the Financial Management Act 1996, the Auditor-General is responsible for issuing an audit report that includes an independent audit opinion on the financial statements of the Land Development Agency.

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As required by Australian Auditing Standards, the auditors: applied professional judgement and maintained scepticism; identified and assessed the risks of material misstatements due to error or fraud and

implemented procedures to address these risks so that sufficient evidence was obtained to form an audit opinion. The risk of not detecting material misstatements due to fraud is higher than the risk due to error, as fraud may involve collusion, forgery, intentional omissions or misrepresentations or the override of internal controls;

obtained an understanding of internal controls to design audit procedures for forming an audit opinion;

evaluated accounting policies and estimates used to prepare the financial statements and disclosures made in the financial statements;

evaluated the overall presentation and content of the financial statements, including whether they present the underlying transactions and events in a manner that achieves fair presentation;

reported the scope and timing of the audit and any significant deficiencies in internal controls identified during the audit to the Governing Board; and

assessed the going concern* basis of accounting used in the preparation of the financial statements. (*Where the auditor concludes that a material uncertainty exists which cast significant doubt on the appropriateness of using the going concern basis of accounting, the auditor is required to draw attention in the audit report to the relevant disclosures in the financial statements or, if such disclosures are inadequate, the audit opinion is to be modified. The auditor’s conclusions on the going concern basis of accounting are based on the audit evidence obtained up to the date of this audit report. However, future events or conditions may cause the entity to cease to continue as a going concern.)

Limitations on the scope of the audit An audit provides a high level of assurance about whether the financial statements are free from material misstatements, whether due to fraud or error. However, an audit cannot provide a guarantee that no material misstatements exist due to the use of selective testing, limitations of internal control, persuasive rather than conclusive nature of audit evidence and use of professional judgement in gathering and evaluating evidence. An audit does not provide assurance on the: reasonableness of budget information included in the financial statements; prudence of decisions made by the Land Development Agency; adequacy of controls implemented by the Land Development Agency; or integrity of audited financial statements presented electronically or information

hyperlinked to or from the financial statements. Assurance can only be provided for the printed copy of the audited financial statements.

Dr Maxine Cooper Auditor-General 19 September 2017



FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2017

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Land Development Agency Financial Statements

For the Year Ended 30 June 2017 Hidden word

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Statement of Responsibility

In my opinion, the financial statements are in agreement with the Land Development Agency’s accounts and records and fairly reflect the financial operations of the Land Development Agency for the year ended 30 June 2017 and the financial position of the Land Development Agency on that date.

Ross Barrett

Chairman


2017


Land Development Agency Financial Statements

For the Year Ended 30 June 2017 Hidden word

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Statement by the Chief Executive Officer

In my opinion, the financial statements are in agreement with the Land Development Agency’s accounts and records and fairly reflect the financial operations of the Land Development Agency for the year ended 30 June 2017 and the financial position of the Land Development Agency on that date.

Neil Bulless

Chief Executive Officer


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Land Development Agency Statement of Comprehensive Income

For the Year Ended 30 June 2017

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Original Actual Budget Actual Note 2017 2017 2016 No. $’000 $’000 $’000 Income Land Sales 4 534,472 629,801 593,666 User Charges 5 997 628 754 Interest 6 7,529 6,101 1,844 Distribution from Investments with the Territory Banking Account 7 (4) - 2,275 Resources Received Free of Charge 8 1,165 - 11,308 Other Revenue 9 983 145 1,502 Total Income 545,142 636,675 611,349 Expenses Employee Expenses 10 12,658 17,142 9,288 Superannuation Expenses 11 1,747 2,067 1,109 Supplies and Services 12 17,612 23,265 15,210 Depreciation and Amortisation 13 436 72 351 Purchased Services 14 4,231 4,081 4,064 Cost of Land Sold 15 116,246 188,593 308,341 Borrowing Costs 16 1,656 2,897 4,876 Other Expenses 17 73,748 96,719 26,957 Total Expenses 228,334 334,836 370,196 Share of Operating Profit from Joint Ventures accounted for using the Equity Method 35 444 - 6,358 Operating Surplus before National Tax Equivalents 317,252 301,839 247,511 National Tax Equivalents 20 57,884 90,552 74,254 Operating Surplus 259,369 211,287 173,257 Items that will not be reclassified subsequently to profit or loss Other Comprehensive Income (Decrease) in the Asset Revaluation Surplus 24 - - (3,362) Total Other Comprehensive (Deficit) - - (3,362) Total Comprehensive Income 259,369 211,287 169,895

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

Land Development Agency Balance Sheet

As at 30 June 2017 Hidden words

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Original Actual Budget Actual Note 2017 2017 2016 No. $’000 $’000 $’000 Current Assets Cash 21 191,689 199,278 283,887 Receivables 22 32,463 11,590 28,737 Inventories 23 125,324 204,422 133,803 Investments - Joint Ventures 35 396 32,011 399 Total Current Assets 349,872 447,301 446,826 Non-Current Assets Receivables 22 39,065 10,590 8,235 Inventories 23 127,485 172,073 109,468 Investments - Joint Ventures - 12,245 - Property, Plant and Equipment 24 42,255 3,181 25,420 Intangible Assets 25 144 - 670 Total Non-Current Assets 208,949 198,089 143,793 Total Assets 558,821 645,390 590,619 Current Liabilities Payables 26 117,129 28,288 96,619 Employee Benefits 27 4,836 3,890 4,311 Other Provisions 28 69,042 65,979 83,561 National Tax Equivalents Payable 29 48,103 72,441 80,297 Other Liabilities 30 108,190 262,695 114,235 Total Current Liabilities 347,300 433,293 379,023 Non-Current Liabilities Payables 26 12,927 - 3,694 Employee Benefits 27 201 222 210 Other Provisions 28 70,715 48,246 57,557 Deferred Tax Liability 31 - 37,848 27,717 Other Liabilities 30 5,260 - - Total Non-Current Liabilities 89,103 86,316 89,178 Total Liabilities 436,403 519,609 468,201 Net Assets 122,418 125,781 122,418 Equity Accumulated Funds 74,272 125,781 74,272 Retained Profits 48,146 - 48,146 Total Equity 122,418 125,781 122,418 The above Balance Sheet should be read in conjunction with the accompanying notes and appendices.


Land Development Agency Balance Sheet

As at 30 June 2017 Hidden words

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Original Actual Budget Actual Note 2017 2017 2016 No. $’000 $’000 $’000 Current Assets Cash 21 191,689 199,278 283,887 Receivables 22 32,463 11,590 28,737 Inventories 23 125,324 204,422 133,803 Investments - Joint Ventures 35 396 32,011 399 Total Current Assets 349,872 447,301 446,826 Non-Current Assets Receivables 22 39,065 10,590 8,235 Inventories 23 127,485 172,073 109,468 Investments - Joint Ventures - 12,245 - Property, Plant and Equipment 24 42,255 3,181 25,420 Intangible Assets 25 144 - 670 Total Non-Current Assets 208,949 198,089 143,793 Total Assets 558,821 645,390 590,619 Current Liabilities Payables 26 117,129 28,288 96,619 Employee Benefits 27 4,836 3,890 4,311 Other Provisions 28 69,042 65,979 83,561 National Tax Equivalents Payable 29 48,103 72,441 80,297 Other Liabilities 30 108,190 262,695 114,235 Total Current Liabilities 347,300 433,293 379,023 Non-Current Liabilities Payables 26 12,927 - 3,694 Employee Benefits 27 201 222 210 Other Provisions 28 70,715 48,246 57,557 Deferred Tax Liability 31 - 37,848 27,717 Other Liabilities 30 5,260 - - Total Non-Current Liabilities 89,103 86,316 89,178 Total Liabilities 436,403 519,609 468,201 Net Assets 122,418 125,781 122,418 Equity Accumulated Funds 74,272 125,781 74,272 Retained Profits 48,146 - 48,146 Total Equity 122,418 125,781 122,418 The above Balance Sheet should be read in conjunction with the accompanying notes and appendices.

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Land Development Agency Statement of Changes in Equity

For the Year Ended 30 June 2017 Hidden words

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Contributed Retained Total Equity Profits Equity Original Actual Actual Actual Budget 2017 2017 2017 2017 $’000 $’000 $’000 $’000 Balance at 1 July 2016 74,272 48,146 122,418 125,781 Comprehensive Income Operating Surplus - 259,369 259,369 211,287 Total Comprehensive Income - 259,369 259,369 211,287

Transactions Involving Owners Affecting Accumulated Funds Assets Contributed by Owner - 54,137 54,137 78,367 Capital (Distributions) - (54,137) (54,137) (78,367) Dividends Approved - (259,369) (259,369) (211,287) Total Transactions Involving Owners Affecting Accumulated Funds - (259,369) (259,369) (211,287) Balance at 30 June 2017 74,272 48,146 122,418 125,781 The above Statement of Changes in Equity should be read in conjunction with the accompanying notes and appendices.

Land Development Agency Statement of Changes in Equity - Continued


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Contributed Retained Total Equity Profits Equity Actual Actual Actual 2016 2016 2016 $’000 $’000 $’000 Balance at 1 July 2015 74,272 48,146 125,780 Comprehensive Income Operating Surplus - 173,257 173,257 (Decrease) in the Asset Revaluation Surplus - - (3,362) Total Comprehensive Income - 173,257 169,895 Transactions Involving Owners Affecting Accumulated Funds Assets Contributed by Owner - 5,335 5,335 Capital (Distributions) - (5,335) (5,335) Dividends Approved - (173,257) (173 ,257) Total Transactions Involving Owners Affecting Accumulated Funds - (173,257) (173,257) Balance at 30 June 2016 74,272 48,146 122,418 The above Statement of Changes in Equity should be read in conjunction with the accompanying notes and appendices.


Land Development Agency Statement of Changes in Equity


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Contributed Retained Total Equity Profits Equity Original Actual Actual Actual Budget 2017 2017 2017 2017 $’000 $’000 $’000 $’000 Balance at 1 July 2016 74,272 48,146 122,418 125,781 Comprehensive Income Operating Surplus - 259,369 259,369 211,287 Total Comprehensive Income - 259,369 259,369 211,287

Transactions Involving Owners Affecting Accumulated Funds Assets Contributed by Owner - 54,137 54,137 78,367 Capital (Distributions) - (54,137) (54,137) (78,367) Dividends Approved - (259,369) (259,369) (211,287) Total Transactions Involving Owners Affecting Accumulated Funds - (259,369) (259,369) (211,287) Balance at 30 June 2017 74,272 48,146 122,418 125,781 The above Statement of Changes in Equity should be read in conjunction with the accompanying notes and appendices.

Land Development Agency Statement of Changes in Equity - Continued


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Contributed Retained Total Equity Profits Equity Actual Actual Actual 2016 2016 2016 $’000 $’000 $’000 Balance at 1 July 2015 74,272 48,146 125,780 Comprehensive Income Operating Surplus - 173,257 173,257 (Decrease) in the Asset Revaluation Surplus - - (3,362) Total Comprehensive Income - 173,257 169,895 Transactions Involving Owners Affecting Accumulated Funds Assets Contributed by Owner - 5,335 5,335 Capital (Distributions) - (5,335) (5,335) Dividends Approved - (173,257) (173 ,257) Total Transactions Involving Owners Affecting Accumulated Funds - (173,257) (173,257) Balance at 30 June 2016 74,272 48,146 122,418 The above Statement of Changes in Equity should be read in conjunction with the accompanying notes and appendices.

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Land Development Agency Cash Flow Statement


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Original Actual Budget Actual Note 2017 2017 2016 No. $’000 $’000 $’000 Cash Flows from Operating Activities Receipts Land Sales 510,564 631,284 585,033 User Charges 1,003 628 770 Interest Received 7,529 5,461 4,317 Distribution from Investments with the Territory Banking Account 307 - - Goods and Services Tax Input Tax Credits from the Australian Taxation Office 29,388 30,424 17,513 Other 982 159 576 Total Receipts from Operating Activities 549,773 667,956 608,209 Payments Employee 13,260 17,142 11,464 Superannuation 1,912 2,067 1,661 Supplies and Services 18,689 23,265 14,394 Development Costs 100,855 249,965 130,503 Land Acquisitions 50,350 51,312 88,704 Borrowing Costs 1,465 2,897 4,876 Purchased Services 4,231 4,081 3,751 Goods and Services Tax Paid to Suppliers and Remitted to the Australian Taxation Office 19,512 28,046 17,925 National Tax Equivalent Payments 117,795 79,358 17,172 Other 1,623 18,352 6,993 Total Payments from Operating Activities 329,692 476,485 310,995 Net Cash Inflows from Operating Activities 37 220,081 191,471 297,214 Cash Flows from Investing Activities Receipts Cash Distributions from Joint Ventures 447 - 8,200 Total Receipts from Investing Activities 447 - 8,200 Payments Purchase of Property, Plant and Equipment 17,744 - 22,394 Purchase of Investments - 43,616 - Total Payment from Investing Activities 17,744 43,616 22,394 Net Cash (Outflows) from Investing Activities (17,297) (43,616) (14,194)

Land Development Agency Cash Flow Statement - Continued For the Year Ended 30 June 2017

Hidden words

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Original Actual Budget Actual Note 2017 2017 2016 No. $’000 $’000 $’000 Cash Flows from Financing Activities Payments Loan to Joint Operation 5,641 - - Distributions to Government 28,825 83,702 - Payment of Dividend 260,516 173,376 123,116 Total Payment from Financing Activities 294,982 257,078 123,116 Net Cash (Outflows) from Financing Activities (294,982) (257,078) (123,116) Net (Decrease)/ Increase in Cash Held Cash

(92,198) (109,223) 159,904 Cash at the Beginning of the Reporting Period 283,887 308,501 123,983 Cash at the End of the Reporting Period 37 191,689 199,278 283,887

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


Land Development Agency Cash Flow Statement


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Original Actual Budget Actual Note 2017 2017 2016 No. $’000 $’000 $’000 Cash Flows from Operating Activities Receipts Land Sales 510,564 631,284 585,033 User Charges 1,003 628 770 Interest Received 7,529 5,461 4,317 Distribution from Investments with the Territory Banking Account 307 - - Goods and Services Tax Input Tax Credits from the Australian Taxation Office 29,388 30,424 17,513 Other 982 159 576 Total Receipts from Operating Activities 549,773 667,956 608,209 Payments Employee 13,260 17,142 11,464 Superannuation 1,912 2,067 1,661 Supplies and Services 18,689 23,265 14,394 Development Costs 100,855 249,965 130,503 Land Acquisitions 50,350 51,312 88,704 Borrowing Costs 1,465 2,897 4,876 Purchased Services 4,231 4,081 3,751 Goods and Services Tax Paid to Suppliers and Remitted to the Australian Taxation Office 19,512 28,046 17,925 National Tax Equivalent Payments 117,795 79,358 17,172 Other 1,623 18,352 6,993 Total Payments from Operating Activities 329,692 476,485 310,995 Net Cash Inflows from Operating Activities 37 220,081 191,471 297,214 Cash Flows from Investing Activities Receipts Cash Distributions from Joint Ventures 447 - 8,200 Total Receipts from Investing Activities 447 - 8,200 Payments Purchase of Property, Plant and Equipment 17,744 - 22,394 Purchase of Investments - 43,616 - Total Payment from Investing Activities 17,744 43,616 22,394 Net Cash (Outflows) from Investing Activities (17,297) (43,616) (14,194)

Land Development Agency Cash Flow Statement - Continued For the Year Ended 30 June 2017

Hidden words

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Original Actual Budget Actual Note 2017 2017 2016 No. $’000 $’000 $’000 Cash Flows from Financing Activities Payments Loan to Joint Operation 5,641 - - Distributions to Government 28,825 83,702 - Payment of Dividend 260,516 173,376 123,116 Total Payment from Financing Activities 294,982 257,078 123,116 Net Cash (Outflows) from Financing Activities (294,982) (257,078) (123,116) Net (Decrease)/ Increase in Cash Held Cash

(92,198) (109,223) 159,904 Cash at the Beginning of the Reporting Period 283,887 308,501 123,983 Cash at the End of the Reporting Period 37 191,689 199,278 283,887

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

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Land Development Agency NOTE INDEX

Hidden words

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Introductory Notes Page Note 1 Objectives of the Land Development Agency 81Note 2 Significant Accounting Policies (see Appendices A, B and C) 82

Appendix A - Basis of Preparation of the Financial Statements 130 Appendix B - Significant Accounting Polices 132 Appendix C - Impact of Accounting Standards Issued But Yet to be Applied 144

Note 3 Change in Accounting Policy and Accounting Estimates (see Appendix D) Appendix D - Change in Accounting Policy and Accounting Estimates 145

Income Notes Note 4 Land Sales 83Note 5 User Charges 84Note 6 Interest 84Note 7 Distribution from Investment with the Territory Banking Account 84Note 8 Resources Received Free of Charge 85Note 9 Other Revenue 85

Expense Notes Note 10 Employee Expenses 86Note 11 Superannuation Expenses 86Note 12 Supplies and Services 87Note 13 Depreciation and Amortisation 87Note 14 Purchased Services 88Note 15 Cost of Land Sold 89Note 16 Borrowing Costs 89Note 17 Other Expenses 90Note 18 Waivers, Impairment Losses and Write-Offs 91Note 19 Auditor's Remuneration 91Note 20 National Tax Equivalents 92

Asset Notes Note 21 Cash 92Note 22 Receivables 93Note 23 Inventories 96Note 24 Property, Plant and Equipment 97Note 25 Intangible Assets 102

Liability Notes Note 26 Payables 103Note 27 Employee Benefits 105Note 28 Other Provisions 106Note 29 National Tax Equivalents Payable 107Note 30 Other Liabilities 107Note 31 Deferred Tax Liability 108

Other Notes Note 32 Financial Instruments 109Note 33 Commitments 114Note 34 Contingent Liabilities and Contingent Assets 114Note 35 Interest in Joint Ventures 115Note 36 Interest in a Joint Operation 120Note 37 Cash Flow Reconciliation 121Note 38 Events Occurring after Balance Date 122Note 39 Related Party Disclosures 123Note 40 Budgetary Reporting 125Note 41 Third Party Monies 129

Land Development Agency Notes to and Forming Part of the Financial Statements


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NOTE 1 OBJECTIVES OF THE LAND DEVELOPMENT AGENCY

(a) Operations and Principal Activities The Land Development Agency (LDA) operated under the Planning and Development Act 2007 and was created by the ACT Government to maintain stability in the supply of land, to deliver high quality urban development and to realise a better return on the Territory's land holdings. The key objectives of the LDA were to: • 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, industrial, community and non-urban land;

• act in a commercially responsible, ethical and efficient manner when developing and selling land on behalf of the ACT Government; and

• balance potentially competing public sector and commercial priorities and provide opportunities for private sector development to optimise the community benefit from the ACT’s land assets.

From 1 July 2017, the LDA ceased operating and its functions transferred to the Suburban Land Agency, the City Renewal Authority and the Environment, Planning and Sustainable Development Directorate (EPSDD).

All assets and liabilities transferred to the Suburban Land Agency, City Renewal Authority and EPSDD.

(b) Public Trading Enterprise The LDA was a Public Trading Enterprise. Consistent with the ACT Government’s policy statement on competitive neutrality (Competitive Neutrality in the ACT, October 2010), the LDA applied similar costing and pricing principles, taxation, debt guarantee requirements and regulations as a fully corporatised business, including: • the acquisition of unleased land for development from the Territory on a commercial basis; • land holding cost payments; • stamp duty equivalency payments; • application of the National Tax Equivalents Regime; and • providing a commercial return to the ACT Government through the development and sale of the land. The total return to the ACT Government from the LDA's activities consisted of:

• land acquisitions from the Territory at market value; • capital distributions to the Government; • payment of national tax equivalents; • payment of dividends based on operating profit after tax; • payment of land holding costs and stamp duty equivalents; and • payment of payroll tax.




11

NOTE 1 OBJECTIVES OF THE LAND DEVELOPMENT AGENCY

(a) Operations and Principal Activities The Land Development Agency (LDA) operated under the Planning and Development Act 2007 and was created by the ACT Government to maintain stability in the supply of land, to deliver high quality urban development and to realise a better return on the Territory's land holdings. The key objectives of the LDA were to: • 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, industrial, community and non-urban land;

• act in a commercially responsible, ethical and efficient manner when developing and selling land on behalf of the ACT Government; and

• balance potentially competing public sector and commercial priorities and provide opportunities for private sector development to optimise the community benefit from the ACT’s land assets.


All assets and liabilities transferred to the Suburban Land Agency, City Renewal Authority and EPSDD.

(b) Public Trading Enterprise The LDA was a Public Trading Enterprise. Consistent with the ACT Government’s policy statement on competitive neutrality (Competitive Neutrality in the ACT, October 2010), the LDA applied similar costing and pricing principles, taxation, debt guarantee requirements and regulations as a fully corporatised business, including: • the acquisition of unleased land for development from the Territory on a commercial basis; • land holding cost payments; • stamp duty equivalency payments; • application of the National Tax Equivalents Regime; and • providing a commercial return to the ACT Government through the development and sale of the land. The total return to the ACT Government from the LDA's activities consisted of:

• land acquisitions from the Territory at market value; • capital distributions to the Government; • payment of national tax equivalents; • payment of dividends based on operating profit after tax; • payment of land holding costs and stamp duty equivalents; and • payment of payroll tax.

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12

NOTE 2 SIGNIFICANT ACCOUNTING POLICIES Refer to the following appendices for the notes comprising significant accounting policies and other explanatory information.

Appendix A - Basis of Preparation of the Financial Statements

Appendix B - Significant Accounting Policies

Appendix C - Impact of Accounting Standards Issued But Yet to be Applied

NOTE 3 CHANGE IN ACCOUNTING POLICY AND ACCOUNTINGESTIMATES

Refer to Appendix D - Change in Accounting Policy and Accounting Estimates.



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NOTE 4 LAND SALES 2017 2016 $’000 $’000 Residential Land Sales (a) 359,047 526,241 Market Value of the Land Sold to the Public Housing Renewal Taskforce - 23,231 Less: Discount Provided to the Public Housing Renewal Taskforce - (12,031) Net Consideration Received for Land sold to the Public Housing Renewal Taskforce (b) - 11,200 Commercial and Industrial Land Sales (c) 138,196 26,265 Community Land Sales 19,446 14,096 Additional Yield (d) 636 10,875 Infrastructure Delivered by Third Parties (e) 23,143 4,412 (Repayment)/Recovery of prior year GST (f) (5,996) 577 Total Land Sales 534,472 593,666 (a) The decrease in land sales in 2016-17 was primarily due to decreased sales in Moncrieff and Lawson due

to the finalisation of the projects. These were partially offset by increased land sales in Throsby.

(b) In 2015-16 the LDA made an ‘in-kind’ contribution to the ACT Government by selling land to the Chief Minister, Treasury and Economic Development Directorate (Public Housing Renewal Taskforce) at a discount to its market value. The land sold was used to construct new public housing to replace old stock being sold under the Asset Recycling Initiative program. In 2016-17 the land sales to the Public Housing Renewal Taskforce have been recorded as net consideration received.

(c) There were more commercial and industrial land sales in 2016-17 including the sale of two Asset Recycling Initiative (ARI) Sites, Braddon 1/52 (Allawah Flats), Lyneham 3/115 (Owen Flats), land for the ACT Government Office block in Canberra City and a site in Forrest.

(d) Additional revenue was received during 2016-17 from variations to holding leases which increased dwelling numbers after contract settlements from Kingston Block 59 Section 50.

(e) There was an increase in infrastructure revenue from third parties associated with the sale of the ARI sites, Denman Prospect and Kingston Foreshore.

(f) The LDA had been in negotiations with the Australian Taxation Office (ATO) with respect to the application of Item 4 Section 75-10(3) of A New Tax System (Goods and Services Tax) ACT 1999 (the Act) regarding the supply of property made by the LDA for land sales and the definition of improvements. This was resolved through the Alternative Dispute Resolution (ADR) process with the LDA required to pay additional GST back to the ATO for prior year land sales.




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NOTE 2 SIGNIFICANT ACCOUNTING POLICIES Refer to the following appendices for the notes comprising significant accounting policies and other explanatory information.

Appendix A - Basis of Preparation of the Financial Statements

Appendix B - Significant Accounting Policies

Appendix C - Impact of Accounting Standards Issued But Yet to be Applied

NOTE 3 CHANGE IN ACCOUNTING POLICY AND ACCOUNTINGESTIMATES

Refer to Appendix D - Change in Accounting Policy and Accounting Estimates.



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NOTE 4 LAND SALES 2017 2016 $’000 $’000 Residential Land Sales (a) 359,047 526,241 Market Value of the Land Sold to the Public Housing Renewal Taskforce - 23,231 Less: Discount Provided to the Public Housing Renewal Taskforce - (12,031) Net Consideration Received for Land sold to the Public Housing Renewal Taskforce (b) - 11,200 Commercial and Industrial Land Sales (c) 138,196 26,265 Community Land Sales 19,446 14,096 Additional Yield (d) 636 10,875 Infrastructure Delivered by Third Parties (e) 23,143 4,412 (Repayment)/Recovery of prior year GST (f) (5,996) 577 Total Land Sales 534,472 593,666 (a) The decrease in land sales in 2016-17 was primarily due to decreased sales in Moncrieff and Lawson due

to the finalisation of the projects. These were partially offset by increased land sales in Throsby.

(b) In 2015-16 the LDA made an ‘in-kind’ contribution to the ACT Government by selling land to the Chief Minister, Treasury and Economic Development Directorate (Public Housing Renewal Taskforce) at a discount to its market value. The land sold was used to construct new public housing to replace old stock being sold under the Asset Recycling Initiative program. In 2016-17 the land sales to the Public Housing Renewal Taskforce have been recorded as net consideration received.

(c) There were more commercial and industrial land sales in 2016-17 including the sale of two Asset Recycling Initiative (ARI) Sites, Braddon 1/52 (Allawah Flats), Lyneham 3/115 (Owen Flats), land for the ACT Government Office block in Canberra City and a site in Forrest.

(d) Additional revenue was received during 2016-17 from variations to holding leases which increased dwelling numbers after contract settlements from Kingston Block 59 Section 50.

(e) There was an increase in infrastructure revenue from third parties associated with the sale of the ARI sites, Denman Prospect and Kingston Foreshore.

(f) The LDA had been in negotiations with the Australian Taxation Office (ATO) with respect to the application of Item 4 Section 75-10(3) of A New Tax System (Goods and Services Tax) ACT 1999 (the Act) regarding the supply of property made by the LDA for land sales and the definition of improvements. This was resolved through the Alternative Dispute Resolution (ADR) process with the LDA required to pay additional GST back to the ATO for prior year land sales.

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NOTE 5 USER CHARGESUser charges revenue is derived by providing goods and services to other ACT Government agencies and to the public. User charges revenue is paid by the user of the goods or services.

2017 2016 $’000 $’000 User Charges - ACT Government Service Charges (a) 673 539 Total User Charges - ACT Government 673 539 User Charges - Non-ACT Government Rental Income (b) 324 215 Total User Charges - Non-ACT Government 324 215 Total User Charges 997 754 (a) The LDA provided executive and financial management services to the Chief Minister, Treasury and

Economic Development Directorate (CMTEDD) under the Memorandum of Understanding between CMTEDD and the LDA.

(b) The LDA derived rental income from sites in Civic, Gungahlin, Westside Container Village (Westside Acton Park), Belconnen and Stromlo.

NOTE 6 INTEREST 2017 2016 $’000 $’000 Interest from Banks (a) 6,946 1,256 Other Interest Revenue - Late Settlements and Deferred Payments 419 588 Interest from West Belconnen Joint Operation 411 - Less: 60% LDA Share of Joint Operation (247) - Net Interest Revenue from Joint Operation 164 - Total Interest Revenue 7,529 1,844

(a) Interest from Banks increased in 2016-17 due to the higher average cash held in the LDA bank account.

NOTE 7 DISTRIBUTION FROM INVESTMENTS WITH THE

TERRITORY BANKING ACCOUNT 2017 2016 $’000 $’000 Distribution from Investments with the Territory Banking Account (a) (4) 2,275 Total Distribution from Investment with the Territory Banking Account (4) 2,275 (a) The LDA did not invest with the Territory Banking Account in 2016-17. The negative cash distribution was

caused by the difference between actual revenue received and estimated accrued revenue reversed in 2016-17.



15

NOTE 8 RESOURCES RECEIVED FREE OF CHARGE

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

2017 2016 $’000 $’000 Revenue from ACT Government Entities Resources Received from ACT Government Entities (a) 1,165 11,308 Total Resources Received Free of Charge 1,165 11,308

(a) Resources received free of charge relates to transfers of land from ACT Government agencies to the LDA at no cost. In 2016-17, these transfers included Dickson Block 18 Section 11 and Belconnen Block 1 Section 149.

NOTE 9 OTHER REVENUE

Other Revenue arises from the core activities of the LDA.

2017 2016 $’000 $’000 Forfeited Land Sale Deposits (a) 474 306

Refund of Australian Taxation Office Settlement Fee (b) - 927

Application Fees 87 78

Other Revenue (c) 422 191 Total Other Revenue 983 1,502 (a) Forfeited Land Sale Deposits relates to terminated contracts for land sales in Moncrieff and Throsby. There

were seven terminated contacts in 2016-17 and five terminated contracts in 2015-16.

(b) In 2015-16 the Australian Taxation Office (ATO) refunded a previous settlement fee paid by the LDA for unpaid GST liabilities.

(c) Other revenue relates to fees paid by builders for land sales in Throsby and Taylor.




14

NOTE 5 USER CHARGESUser charges revenue is derived by providing goods and services to other ACT Government agencies and to the public. User charges revenue is paid by the user of the goods or services.

2017 2016 $’000 $’000 User Charges - ACT Government Service Charges (a) 673 539 Total User Charges - ACT Government 673 539 User Charges - Non-ACT Government Rental Income (b) 324 215 Total User Charges - Non-ACT Government 324 215 Total User Charges 997 754 (a) The LDA provided executive and financial management services to the Chief Minister, Treasury and

Economic Development Directorate (CMTEDD) under the Memorandum of Understanding between CMTEDD and the LDA.

(b) The LDA derived rental income from sites in Civic, Gungahlin, Westside Container Village (Westside Acton Park), Belconnen and Stromlo.

NOTE 6 INTEREST 2017 2016 $’000 $’000 Interest from Banks (a) 6,946 1,256 Other Interest Revenue - Late Settlements and Deferred Payments 419 588 Interest from West Belconnen Joint Operation 411 - Less: 60% LDA Share of Joint Operation (247) - Net Interest Revenue from Joint Operation 164 - Total Interest Revenue 7,529 1,844

(a) Interest from Banks increased in 2016-17 due to the higher average cash held in the LDA bank account.

NOTE 7 DISTRIBUTION FROM INVESTMENTS WITH THE

TERRITORY BANKING ACCOUNT 2017 2016 $’000 $’000 Distribution from Investments with the Territory Banking Account (a) (4) 2,275 Total Distribution from Investment with the Territory Banking Account (4) 2,275 (a) The LDA did not invest with the Territory Banking Account in 2016-17. The negative cash distribution was

caused by the difference between actual revenue received and estimated accrued revenue reversed in 2016-17.



15

NOTE 8 RESOURCES RECEIVED FREE OF CHARGE

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

2017 2016 $’000 $’000 Revenue from ACT Government Entities Resources Received from ACT Government Entities (a) 1,165 11,308 Total Resources Received Free of Charge 1,165 11,308

(a) Resources received free of charge relates to transfers of land from ACT Government agencies to the LDA at no cost. In 2016-17, these transfers included Dickson Block 18 Section 11 and Belconnen Block 1 Section 149.

NOTE 9 OTHER REVENUE

Other Revenue arises from the core activities of the LDA.

2017 2016 $’000 $’000 Forfeited Land Sale Deposits (a) 474 306

Refund of Australian Taxation Office Settlement Fee (b) - 927

Application Fees 87 78

Other Revenue (c) 422 191 Total Other Revenue 983 1,502 (a) Forfeited Land Sale Deposits relates to terminated contracts for land sales in Moncrieff and Throsby. There

were seven terminated contacts in 2016-17 and five terminated contracts in 2015-16.

(b) In 2015-16 the Australian Taxation Office (ATO) refunded a previous settlement fee paid by the LDA for unpaid GST liabilities.

(c) Other revenue relates to fees paid by builders for land sales in Throsby and Taylor.

85



16

NOTE 10 EMPLOYEE EXPENSES 2017 2016 $’000 $’000 Wages and Salaries (a) 12,186 10,725 Salary Costs Capitalised in Inventories (1,113) (2,918) Subtotal Wages and Salaries 11,073 7,807 Payroll Tax 856 734 Long Service Leave - Movement in Provision 246 545 Annual Leave - Movement in Provision 350 125 Workers' Compensation Insurance Premium 94 72 Fringe Benefit Tax 39 5 Total Employee Expenses 12,658 9,288

(a) The increase in wages and salaries was due to the recruitment of positions to undertake a Business

Improvement Program and urban renewal project delivery as identified in the 2016-17 Statement of Intent.

NOTE 11 SUPERANNUATION EXPENSES 2017 2016 $’000 $’000 Superannuation Contributions to the Territory Banking Account 1,075 851 Superannuation to External Providers 650 502 Superannuation Payment to ComSuper (for the PSSap) 72 85 Productivity Benefit 126 116 Subtotal Superannuation Expenses 1,923 1,554 Superannuation Costs Capitalised in Inventories (176) (445) Total Superannuation Expenses (a) 1,747 1,109

(a) The increase in superannuation expenses relates to the recruitment of positions to undertake a Business




17

NOTE 12 SUPPLIES AND SERVICES 2017 2016 $’000 $’000 Selling Costs (a) 3,813 6,107 Contractors and Consultants (b) 6,589 3,409 Asset Management 1,776 1,865 Advertising and Marketing Costs (c) 2,620 1,424 Operating Lease Rental Payments 815 737 Insurance 697 458 Office Services 365 296 Staff Development 224 214 Office Equipment and Consumables 119 119 Other 594 581 Total Supplies and Services 17,612 15,210 (a) Selling costs reduced in 2016-17 due to fewer sales contracts being exchanged in comparison to 2015-16.

(b) The increase in contractors and consultants expenses was mainly due to increased financial services received relating to negotiations with the ATO regarding the supply of property by the LDA and the finalisation of Alternative Dispute Resolution (ADR) process, and the West Belconnen Joint Operation.

(c) The increase in marketing and advertising costs relates to the inclusion of the West Belconnen Joint Operation expenses in the LDA’s financial statements.

NOTE 13 DEPRECIATION AND AMORTISATION 2017 2016 $’000 $’000 Depreciation Buildings 350 279 Leasehold Improvements 15 14 Plant and Equipment 6 5 Total Depreciation (a) 371 298 Amortisation Intangible Assets 65 53 Total Amortisation 65 53 Total Depreciation and Amortisation 436 351

(a) The increase in depreciation was due to inclusion of new assets from the West Belconnen Joint Operation.




16

NOTE 10 EMPLOYEE EXPENSES 2017 2016 $’000 $’000 Wages and Salaries (a) 12,186 10,725 Salary Costs Capitalised in Inventories (1,113) (2,918) Subtotal Wages and Salaries 11,073 7,807 Payroll Tax 856 734 Long Service Leave - Movement in Provision 246 545 Annual Leave - Movement in Provision 350 125 Workers' Compensation Insurance Premium 94 72 Fringe Benefit Tax 39 5 Total Employee Expenses 12,658 9,288

(a) The increase in wages and salaries was due to the recruitment of positions to undertake a Business


NOTE 11 SUPERANNUATION EXPENSES 2017 2016 $’000 $’000 Superannuation Contributions to the Territory Banking Account 1,075 851 Superannuation to External Providers 650 502 Superannuation Payment to ComSuper (for the PSSap) 72 85 Productivity Benefit 126 116 Subtotal Superannuation Expenses 1,923 1,554 Superannuation Costs Capitalised in Inventories (176) (445) Total Superannuation Expenses (a) 1,747 1,109

(a) The increase in superannuation expenses relates to the recruitment of positions to undertake a Business




17

NOTE 12 SUPPLIES AND SERVICES 2017 2016 $’000 $’000 Selling Costs (a) 3,813 6,107 Contractors and Consultants (b) 6,589 3,409 Asset Management 1,776 1,865 Advertising and Marketing Costs (c) 2,620 1,424 Operating Lease Rental Payments 815 737 Insurance 697 458 Office Services 365 296 Staff Development 224 214 Office Equipment and Consumables 119 119 Other 594 581 Total Supplies and Services 17,612 15,210 (a) Selling costs reduced in 2016-17 due to fewer sales contracts being exchanged in comparison to 2015-16.

(b) The increase in contractors and consultants expenses was mainly due to increased financial services received relating to negotiations with the ATO regarding the supply of property by the LDA and the finalisation of Alternative Dispute Resolution (ADR) process, and the West Belconnen Joint Operation.

(c) The increase in marketing and advertising costs relates to the inclusion of the West Belconnen Joint Operation expenses in the LDA’s financial statements.

NOTE 13 DEPRECIATION AND AMORTISATION 2017 2016 $’000 $’000 Depreciation Buildings 350 279 Leasehold Improvements 15 14 Plant and Equipment 6 5 Total Depreciation (a) 371 298 Amortisation Intangible Assets 65 53 Total Amortisation 65 53 Total Depreciation and Amortisation 436 351

(a) The increase in depreciation was due to inclusion of new assets from the West Belconnen Joint Operation.

87



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NOTE 14 PURCHASED SERVICES

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

2017 2016 $’000 $’000 Purchased Services (a) 4,231 4,064 Total Purchased Services 4,231 4,064

(a) Purchased services were comprised of:

Chief Minister, Treasury and Economic Development Directorate Memorandum of Understanding (MOU) 2,321 2,310 Shared Services Finance 148 130 Shared Services Information and Communication Technology 816 783 Shared Services Human Resources 68 54 Procurement and Capital Works 393 223 Government Solicitor's Office 485 564 Total Purchased Services 4,231 4,064



19

NOTE 15 COST OF LAND SOLD

Cost of Land Sold represents the carrying amount of land inventories settled in the reporting period.

2017 2016 $’000 $’000 Land Transfers and Acquisitions (a) 40,227 91,696

Capitalised Development Costs (b) 52,876 212,233

Transfer of Infrastructure Assets (c) 23,143 4,412 Total Costs of Land Sold(d) 116,246 308,341

Cost of Land Sold includes the acquisition of land, direct costs relating to the development of land and the value of infrastructure constructed by land purchasers and transferred to Transport Canberra and City Services Directorate (TCCS) and Icon Water. Estimates of direct development costs were made for unfinished project wide works. The Cost of Land Sold was expensed in the Statement of Comprehensive Income when the developed land was settled. (a) The decreased land transfers and acquisitions was the result of reduced land costs due to Greenfield land

sold being valued as rural land with future urban area overlay.

(b) The decreased capitalised development costs were due to the majority of 2016-17 revenue being achieved through sales of englobo, commercial, community and Asset Recycling Initiative (ARI) sites which require minimum development before settlement, and a decrease in land sales.

(c) The increase in infrastructure sales delivered by third parties was due to an increased number of contracts settled that required infrastructure to be delivered by third parties. These contracts include sale of ARI sites, Denman Prospect and Kingston Foreshore.

(d) The change in estimates of the costs of land sold, which are reviewed on a biannual basis, resulted in a change in estimate of $25.039 million and was accounted for as a decrease in the Cost of Land Sold.

NOTE 16 BORROWING COSTS 2017 2016 $’000 $’000 Land Holding Cost Equivalents (a) 1,656 4,873 Other - 3 Total Borrowing Costs 1,656 4,876

(a) Consistent with the ACT Government’s policy on competitive neutrality, the LDA applied similar costing and pricing principles, taxation, debt guarantee requirements and regulations as a fully corporatised business (see Note 1b: Public Trading Enterprise).

The decrease in land holding cost equivalents (interest) on land purchased from the Territory was due to the value of the land purchased and held in LDA estates being lower than in the previous financial year.




18

NOTE 14 PURCHASED SERVICES

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

2017 2016 $’000 $’000 Purchased Services (a) 4,231 4,064 Total Purchased Services 4,231 4,064

(a) Purchased services were comprised of:

Chief Minister, Treasury and Economic Development Directorate Memorandum of Understanding (MOU) 2,321 2,310 Shared Services Finance 148 130 Shared Services Information and Communication Technology 816 783 Shared Services Human Resources 68 54 Procurement and Capital Works 393 223 Government Solicitor's Office 485 564 Total Purchased Services 4,231 4,064



19

NOTE 15 COST OF LAND SOLD

Cost of Land Sold represents the carrying amount of land inventories settled in the reporting period.

2017 2016 $’000 $’000 Land Transfers and Acquisitions (a) 40,227 91,696

Capitalised Development Costs (b) 52,876 212,233

Transfer of Infrastructure Assets (c) 23,143 4,412 Total Costs of Land Sold(d) 116,246 308,341

Cost of Land Sold includes the acquisition of land, direct costs relating to the development of land and the value of infrastructure constructed by land purchasers and transferred to Transport Canberra and City Services Directorate (TCCS) and Icon Water. Estimates of direct development costs were made for unfinished project wide works. The Cost of Land Sold was expensed in the Statement of Comprehensive Income when the developed land was settled. (a) The decreased land transfers and acquisitions was the result of reduced land costs due to Greenfield land

sold being valued as rural land with future urban area overlay.

(b) The decreased capitalised development costs were due to the majority of 2016-17 revenue being achieved through sales of englobo, commercial, community and Asset Recycling Initiative (ARI) sites which require minimum development before settlement, and a decrease in land sales.

(c) The increase in infrastructure sales delivered by third parties was due to an increased number of contracts settled that required infrastructure to be delivered by third parties. These contracts include sale of ARI sites, Denman Prospect and Kingston Foreshore.

(d) The change in estimates of the costs of land sold, which are reviewed on a biannual basis, resulted in a change in estimate of $25.039 million and was accounted for as a decrease in the Cost of Land Sold.

NOTE 16 BORROWING COSTS 2017 2016 $’000 $’000 Land Holding Cost Equivalents (a) 1,656 4,873 Other - 3 Total Borrowing Costs 1,656 4,876

(a) Consistent with the ACT Government’s policy on competitive neutrality, the LDA applied similar costing and pricing principles, taxation, debt guarantee requirements and regulations as a fully corporatised business (see Note 1b: Public Trading Enterprise).

The decrease in land holding cost equivalents (interest) on land purchased from the Territory was due to the value of the land purchased and held in LDA estates being lower than in the previous financial year.

89



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NOTE 17 OTHER EXPENSES 2017 2016 $’000 $’000 Inventory Loss (a) 69,376 20,672

Stamp Duty Equivalents (b) 1,236 3,876 Impairment Losses (see Note 18) 1,076 - Resources Provided to Other Agencies Free of Charge (c) - 2,409 Donation (d) 2,060 - Total Other Expenses 73,748 26,957

(a) Inventories held for sale were valued at the lower of cost and net realisable value. The difference between

the cost and net realisable value was recorded as an Inventory Loss. In 2016-17, this included: • the revaluation of Dickson Block 11 Section 18, Belconnen Block 1 Section 149, multiple blocks of Red

Hill Flats and Braddon Section 52 (Allawah Flats) following the transfer from other ACT Government agencies ($55.255 million);

• inventory write-down of pre-development activity costs that have previously been recognised as Inventory ($13.015 million); and

• inventory costs written off for discontinued projects where the criteria for an asset was no longer met due to the lack of expected future economic benefit ($1.106 million).

(b) Consistent with the ACT Government’s policy on competitive neutrality, the LDA applied similar costing and pricing principles, taxation, debt guarantee requirements and regulations as a fully corporatised business (see Note 1b: Public Trading Enterprise). The decrease in stamp duty equivalents was due to the value of the land purchased and held in LDA estates being lower than in the previous financial year.

(c) The LDA transferred the Black Mountain Peninsula Slipway to ACT Property Group at no cost in 2015-16. No similar transfers occurred in 2016-17.

(d) In 2016-17 a donation was made from the proceeds of the sale of the Deakin Charity House.



21

NOTE 18 WAIVERS, IMPAIRMENT LOSSES AND WRITE-OFFS

A waiver is the relinquishment of a legal claim to a debt over which the LDA had control. The write-off of a debt is the accounting action taken to remove a debt from the books but does not relinquish the legal right of the LDA to recover the amount. The write-off of debts may occur for reasons other than waivers.

The impairment losses listed below have occurred during the reporting period for the LDA (2015-16: Nil).

2017 2016 $’000 $’000 Impairment Losses Impairment Loss from Receivables Trade Receivables (a) 78 - Total Impairment Loss from Receivables 78 - Impairment Loss from Property, Plant and Equipment Building (b) 423 Plant and Equipment (c) 2 - Total Impairment Loss from Property, Plant and Equipment 425 - Impairment Loss from Intangible Assets Goodwill (c) 573 - Total Impairment Loss from Intangible Assets 573 - Total Impairment Losses 1,076 -

(a) This relates to rent receivable from the Westside Container Village. ACT Property Group are pursuing the payment of these debts.

(b) This relates to the building for the Westside Container Village. An assessment of impairment has been made based on the cessation of operations at the site.

(c) This relates to plant and equipment and goodwill associated with the boat hire business purchased by the LDA. An assessment of impairment was made based on cessation of the business and the expectation that there will be no future economic benefits.

NOTE 19 AUDITOR’S REMUNERATION

Auditor’s remuneration consists of financial audit services provided to the LDA by the ACT Audit Office and any other services provided by a contract auditor engaged by the ACT Audit Office to conduct the financial audit. No other services were provided by the ACT Audit Office. 2017 2016 $’000 $’000 Audit Services Audit Fees Paid or Payable to the ACT Audit Office 117 113 Total Audit Fees 117 113




20

NOTE 17 OTHER EXPENSES 2017 2016 $’000 $’000 Inventory Loss (a) 69,376 20,672

Stamp Duty Equivalents (b) 1,236 3,876 Impairment Losses (see Note 18) 1,076 - Resources Provided to Other Agencies Free of Charge (c) - 2,409 Donation (d) 2,060 - Total Other Expenses 73,748 26,957

(a) Inventories held for sale were valued at the lower of cost and net realisable value. The difference between

the cost and net realisable value was recorded as an Inventory Loss. In 2016-17, this included: • the revaluation of Dickson Block 11 Section 18, Belconnen Block 1 Section 149, multiple blocks of Red

Hill Flats and Braddon Section 52 (Allawah Flats) following the transfer from other ACT Government agencies ($55.255 million);

• inventory write-down of pre-development activity costs that have previously been recognised as Inventory ($13.015 million); and

• inventory costs written off for discontinued projects where the criteria for an asset was no longer met due to the lack of expected future economic benefit ($1.106 million).

(b) Consistent with the ACT Government’s policy on competitive neutrality, the LDA applied similar costing and pricing principles, taxation, debt guarantee requirements and regulations as a fully corporatised business (see Note 1b: Public Trading Enterprise). The decrease in stamp duty equivalents was due to the value of the land purchased and held in LDA estates being lower than in the previous financial year.

(c) The LDA transferred the Black Mountain Peninsula Slipway to ACT Property Group at no cost in 2015-16. No similar transfers occurred in 2016-17.

(d) In 2016-17 a donation was made from the proceeds of the sale of the Deakin Charity House.



21

NOTE 18 WAIVERS, IMPAIRMENT LOSSES AND WRITE-OFFS

A waiver is the relinquishment of a legal claim to a debt over which the LDA had control. The write-off of a debt is the accounting action taken to remove a debt from the books but does not relinquish the legal right of the LDA to recover the amount. The write-off of debts may occur for reasons other than waivers.

The impairment losses listed below have occurred during the reporting period for the LDA (2015-16: Nil).

2017 2016 $’000 $’000 Impairment Losses Impairment Loss from Receivables Trade Receivables (a) 78 - Total Impairment Loss from Receivables 78 - Impairment Loss from Property, Plant and Equipment Building (b) 423 Plant and Equipment (c) 2 - Total Impairment Loss from Property, Plant and Equipment 425 - Impairment Loss from Intangible Assets Goodwill (c) 573 - Total Impairment Loss from Intangible Assets 573 - Total Impairment Losses 1,076 -

(a) This relates to rent receivable from the Westside Container Village. ACT Property Group are pursuing the payment of these debts.

(b) This relates to the building for the Westside Container Village. An assessment of impairment has been made based on the cessation of operations at the site.

(c) This relates to plant and equipment and goodwill associated with the boat hire business purchased by the LDA. An assessment of impairment was made based on cessation of the business and the expectation that there will be no future economic benefits.

NOTE 19 AUDITOR’S REMUNERATION

Auditor’s remuneration consists of financial audit services provided to the LDA by the ACT Audit Office and any other services provided by a contract auditor engaged by the ACT Audit Office to conduct the financial audit. No other services were provided by the ACT Audit Office. 2017 2016 $’000 $’000 Audit Services Audit Fees Paid or Payable to the ACT Audit Office 117 113 Total Audit Fees 117 113

91



22

NOTE 20 NATIONAL TAX EQUIVALENTS

National Tax Equivalents are payable under an administrative arrangement with the Australian Taxation Office, which notionally applies relevant taxation laws to applicable entities as if they were subject to those laws. National Tax Equivalent payments are made to the Territory. 2017 2016 $’000 $’000 National Tax Equivalents The major components of National Tax Equivalents are: Provision for Current Year National Tax Equivalents 57,884 95,086 Prior Year Adjustment to Current Year National Tax Equivalents - 26,065 Current Year Movement in the Net Deferred Tax Liability, refer Note 31: 'Deferred Tax Liability' - (20,832) Prior Year Adjustment to Deferred Tax Liability - (26,065) National Tax Equivalents 57,884 74,254 Numeric Reconciliation of National Tax Equivalents to Prima Facie Tax

Payable

Operating Surplus before National Tax Equivalents 317,252 247,511 National Tax calculated at 30% 95,175 74,254 De-recognition of Deferred Tax Liability (a) (37,291) - National Tax Equivalents 57,884 74,254

(a) The LDA ceased operating as a separate entity from 1 July 2017. The deferred tax liability was

de-recognised from the Balance Sheet, resulting in a decrease in the National Tax Equivalents expenses on the Statement of Comprehensive Income.

NOTE 21 CASH

The LDA held a bank account with the Westpac Bank as a part of the Whole-of-Government banking arrangement. As part of these arrangements, the LDA received interest on the account.

2017 2016 $’000 $’000 Cash on Hand - 2 Cash at Bank (a) 187,724 283,885 Share of Cash held by West Belconnen Joint Operation (60%) (b) 3,965 - Total Cash 191,689 283,887 (a) During 2015-16 the LDA revised its Investment Policy to include an option of leaving surplus cash in the

Westpac transaction account (Cash at Bank) or the cash facility (Investments with the Territory Banking Account) depending on which account had the more favourable interest rate at the time of investment. As the Westpac transaction account had the more favourable rate, cash was invested in this account. The decrease in cash was primarily due to timing and amount differences in the payment of the interim dividend to Government.

(b) This represents the LDA’s share of the cash held by the West Belconnen Joint Operation which commenced in November 2016.



23

NOTE 22 RECEIVABLES 2017 2016 $’000 $’000 Current Receivables Trade Receivables (a) 19,179 17,547 Less: Allowance for Impairment Losses (78) - 19,101 17,547 Deferred Payment Receivable 4 4 Deposit for Land Purchase (b) 884 - Accrued Revenue - 311 Right to Receive Infrastructure (c) 12,474 10,875 Total Current Receivables 32,463 28,737 Non-Current Receivables Deferred Payment Receivables 22 26 Right to Receive Infrastructure (d) 29,672 8,209 Loan Receivable from West Belconnen Joint Operation 23,433 - Less: 60% LDA share of Joint Operation (14,062) - Net Loan Receivable from West Belconnen Joint Operation (e) 9,371 - Total Non-Current Receivables 39,065 8,235 Total Receivables 71,528 36,972 (a) Trade receivables were primarily represented by ACT Government debtors. The balance in Trade

Receivables was mainly due to land settlements for Land Rent Scheme sales from the ACT Revenue Office, part of Chief Minister, Treasury and Economic Development Directorate (CMTEDD). There were also outstanding cost recoveries from CMTEDD for the City to the Lake Project capital works.

(b) This relates to the acquisition of three properties which will be settled in 2017-18. The blocks are Belconnen 1582, 1599, 1600, 1601 and 1602.

(c) The increase in 2016-17 reflects the reclassification from non-current to current as it was expected that the infrastructure will be received in the next 12 months.

(d) The increase in the non-current Right to Receive Infrastructure was due to land sales to third parties which occurred in 2016-17 financial year which included infrastructure assets. These included the sale of ARI sites, Denman Prospect and Kingston Foreshore.

(e) The increase in 2016-17 reflects unsecured loans provided by the LDA to the West Belconnen Joint Operation to fund project activities.




22

NOTE 20 NATIONAL TAX EQUIVALENTS

National Tax Equivalents are payable under an administrative arrangement with the Australian Taxation Office, which notionally applies relevant taxation laws to applicable entities as if they were subject to those laws. National Tax Equivalent payments are made to the Territory. 2017 2016 $’000 $’000 National Tax Equivalents The major components of National Tax Equivalents are: Provision for Current Year National Tax Equivalents 57,884 95,086 Prior Year Adjustment to Current Year National Tax Equivalents - 26,065 Current Year Movement in the Net Deferred Tax Liability, refer Note 31: 'Deferred Tax Liability' - (20,832) Prior Year Adjustment to Deferred Tax Liability - (26,065) National Tax Equivalents 57,884 74,254 Numeric Reconciliation of National Tax Equivalents to Prima Facie Tax

Payable

Operating Surplus before National Tax Equivalents 317,252 247,511 National Tax calculated at 30% 95,175 74,254 De-recognition of Deferred Tax Liability (a) (37,291) - National Tax Equivalents 57,884 74,254

(a) The LDA ceased operating as a separate entity from 1 July 2017. The deferred tax liability was


NOTE 21 CASH

The LDA held a bank account with the Westpac Bank as a part of the Whole-of-Government banking arrangement. As part of these arrangements, the LDA received interest on the account.

2017 2016 $’000 $’000 Cash on Hand - 2 Cash at Bank (a) 187,724 283,885 Share of Cash held by West Belconnen Joint Operation (60%) (b) 3,965 - Total Cash 191,689 283,887 (a) During 2015-16 the LDA revised its Investment Policy to include an option of leaving surplus cash in the

Westpac transaction account (Cash at Bank) or the cash facility (Investments with the Territory Banking Account) depending on which account had the more favourable interest rate at the time of investment. As the Westpac transaction account had the more favourable rate, cash was invested in this account. The decrease in cash was primarily due to timing and amount differences in the payment of the interim dividend to Government.

(b) This represents the LDA’s share of the cash held by the West Belconnen Joint Operation which commenced in November 2016.



23

NOTE 22 RECEIVABLES 2017 2016 $’000 $’000 Current Receivables Trade Receivables (a) 19,179 17,547 Less: Allowance for Impairment Losses (78) - 19,101 17,547 Deferred Payment Receivable 4 4 Deposit for Land Purchase (b) 884 - Accrued Revenue - 311 Right to Receive Infrastructure (c) 12,474 10,875 Total Current Receivables 32,463 28,737 Non-Current Receivables Deferred Payment Receivables 22 26 Right to Receive Infrastructure (d) 29,672 8,209 Loan Receivable from West Belconnen Joint Operation 23,433 - Less: 60% LDA share of Joint Operation (14,062) - Net Loan Receivable from West Belconnen Joint Operation (e) 9,371 - Total Non-Current Receivables 39,065 8,235 Total Receivables 71,528 36,972 (a) Trade receivables were primarily represented by ACT Government debtors. The balance in Trade

Receivables was mainly due to land settlements for Land Rent Scheme sales from the ACT Revenue Office, part of Chief Minister, Treasury and Economic Development Directorate (CMTEDD). There were also outstanding cost recoveries from CMTEDD for the City to the Lake Project capital works.


(c) The increase in 2016-17 reflects the reclassification from non-current to current as it was expected that the infrastructure will be received in the next 12 months.

(d) The increase in the non-current Right to Receive Infrastructure was due to land sales to third parties which occurred in 2016-17 financial year which included infrastructure assets. These included the sale of ARI sites, Denman Prospect and Kingston Foreshore.

(e) The increase in 2016-17 reflects unsecured loans provided by the LDA to the West Belconnen Joint Operation to fund project activities.

93



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NOTE 22 RECEIVABLES - CONTINUED

Ageing of Receivables Not Overdue Overdue Total Greater than 30 to 60 Days 60 to 90 Days 90 Days $'000 $'000 $'000 $'000 $'000 2017 Not Impaired Receivables(a) 69,760 - 1,768(b) 71,528 Impaired Receivables - - - 78(c) 78 2016 Not Impaired Receivables 32,624 2,729 - 1,619(b) 36,972 Impaired Receivables - - - - - (a) 'Not impaired' refers to Net Receivables (Gross Receivables less Impaired Receivables). The majority of

receivables represent the right to receive infrastructure which were considered to be low risk.

(b) The debtors greater than 90 days mainly relates to the $1.500 million receivable from the Commonwealth Department of Finance recorded in June 2014 for the remediation works undertaken at Kingston Foreshore. There have been continuing discussions with the Commonwealth and the parties agreed to further discussion through legal representatives on either side. Management has assessed that this debt is collectible.

(c) An allowance has been made for the impairment of receivables related to the Westside Container Village. ACT Property Group are managing this on behalf of the LDA and are pursuing the payment of these debts.



25

NOTE 22 RECEIVABLES - CONTINUED 2017 2016 $’000 $’000 Classification of ACT Government/Non-ACT Government Receivables Receivables from ACT Government Entities Trade Receivables (a) 12,432 15,101 Accrued Revenue - 311 Deposit for Land Purchase (b) 884 - Total Receivables from ACT Government Entities 13,316 15,412 Receivables from Non-ACT Government Entities Right to Receive Infrastructure (c) 42,146 19,085 Trade Receivables (d) 6,669 2,445 Net Loan Receivable from West Belconnen Joint Operation 9,371 - Deferred Payment Receivables 26 30 Total Receivables from Non-ACT Government Entities 58,212 21,560 Total Receivables 71,528 36,972 (a) The decrease in Trade Receivables was mainly due to reduced cost recoveries associated with the Asset

Recycling Initiative.


(c) The increase in the Right to Receive Infrastructure was due to land sales to third parties which occurred in 2016-17 financial year which included infrastructure assets. These sales included the sale of ARI sites, Denman Prospect and a sale at Kingston Foreshore.

(d) The increase in Trade Receivables was mainly due to increased GST receivable from ATO.




24

NOTE 22 RECEIVABLES - CONTINUED

Ageing of Receivables Not Overdue Overdue Total Greater than 30 to 60 Days 60 to 90 Days 90 Days $'000 $'000 $'000 $'000 $'000 2017 Not Impaired Receivables(a) 69,760 - 1,768(b) 71,528 Impaired Receivables - - - 78(c) 78 2016 Not Impaired Receivables 32,624 2,729 - 1,619(b) 36,972 Impaired Receivables - - - - - (a) 'Not impaired' refers to Net Receivables (Gross Receivables less Impaired Receivables). The majority of

receivables represent the right to receive infrastructure which were considered to be low risk.

(b) The debtors greater than 90 days mainly relates to the $1.500 million receivable from the Commonwealth Department of Finance recorded in June 2014 for the remediation works undertaken at Kingston Foreshore. There have been continuing discussions with the Commonwealth and the parties agreed to further discussion through legal representatives on either side. Management has assessed that this debt is collectible.

(c) An allowance has been made for the impairment of receivables related to the Westside Container Village. ACT Property Group are managing this on behalf of the LDA and are pursuing the payment of these debts.



25

NOTE 22 RECEIVABLES - CONTINUED 2017 2016 $’000 $’000 Classification of ACT Government/Non-ACT Government Receivables Receivables from ACT Government Entities Trade Receivables (a) 12,432 15,101 Accrued Revenue - 311 Deposit for Land Purchase (b) 884 - Total Receivables from ACT Government Entities 13,316 15,412 Receivables from Non-ACT Government Entities Right to Receive Infrastructure (c) 42,146 19,085 Trade Receivables (d) 6,669 2,445 Net Loan Receivable from West Belconnen Joint Operation 9,371 - Deferred Payment Receivables 26 30 Total Receivables from Non-ACT Government Entities 58,212 21,560 Total Receivables 71,528 36,972 (a) The decrease in Trade Receivables was mainly due to reduced cost recoveries associated with the Asset

Recycling Initiative.


(c) The increase in the Right to Receive Infrastructure was due to land sales to third parties which occurred in 2016-17 financial year which included infrastructure assets. These sales included the sale of ARI sites, Denman Prospect and a sale at Kingston Foreshore.

(d) The increase in Trade Receivables was mainly due to increased GST receivable from ATO.

95



26

NOTE 23 INVENTORIES 2017 2016 $’000 $’000 Current Inventories

Developed Land, Construction Completed and Available for Sale, at Cost (a) 92,797 108,591 Land Being Developed - Work in Progress Land Acquisition Costs (b) 6,876 1,720

Development Costs (c) 25,651 23,492 Total Land Being Developed - Work in Progress 32,527 25,212

Total Current Inventories (a) 125,324 133,803 Non-Current Inventories

Land Being Developed - Work in Progress Land Acquisition Costs (b) 43,800 33,249 Development Costs (d) 83,685 76,219 Total Land Being Developed - Work in Progress 127,485 109,468 Total Non-Current Inventories 127,485 109,468 Total Inventories 252,809 243,271

(a) The decrease in land available for sale and total current inventories was mainly due to settlements in

Moncrieff, Coombs and Denman Prospect, offset by an increase in finished land in Throsby not yet settled.

(b) Land acquisition costs were costs incurred in acquiring land from the Territory in accordance with the LDA's status as a Public Trading Enterprise (see Note 1(b) Public Trading Enterprise). The increase was mainly due to land custodianship of Greenway East and Taylor transferring to the LDA during 2016-17 as well as land value increases for Taylor and Throsby based on revised valuations.

(c) The increase in development costs was due to an increase in inventory through development activity in the Taylor estate.

(d) The increase in non-current development costs was due to the development activities in Molonglo, West Belconnen and Taylor.



27

NOTE 24 PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment includes the following classes of assets – land and buildings, leasehold improvements, plant and equipment and community and heritage assets. Property, plant and equipment does not include assets held for sale or investment properties.

Land and Buildings held includes rural properties, property held for use as office buildings, storage facilities, and commercial display space. Land which was used for trading was classified as inventory (See Note 23: Inventories).

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

Plant and Equipment includes furniture, fittings and electronic office equipment.

Heritage assets are the John Fowler & Co Locomotive.

2017 2016 $’000 $’000 Land and Buildings Land at Fair Value (a) 35,736 24,033 Total Land Assets 35,736 24,033 Buildings at Fair Value (b) 7,033 1,174 Less: Accumulated Depreciation (629) (279) Less: Accumulated Impairment Losses (423) - Total Written-Down Value of Buildings 5,981 895 Total Land and Written-Down Value of Land and Buildings 41,717 24,928 Leasehold Improvements at Cost Leasehold Improvements at Cost 2,382 2,379 Less: Accumulated Depreciation (2,363) (2,348) Total Written-Down Value of Leasehold Improvements Assets 19 31 Plant and Equipment at Cost Plant and Equipment at Cost 158 92 Less: Accumulated Depreciation (79) (73) Less: Accumulated Impairment Losses (2) - Total Written-Down Value of Plant and Equipment 77 19 Heritage Assets at Cost Heritage Assets at Cost 442 442 Total Written-Down Value of Heritage Assets 442 442 Total Written-Down Value of Property, Plant and Equipment 42,255 25,420

(a) The increase in Land was due to the purchase of rural land in Belconnen and Stromlo.

(b) The increase in Buildings was due to the inclusion of new assets for the West Belconnen Joint Operation, a rowing shed in Barton and the City to the Lake West Basin Boardwalk.




26

NOTE 23 INVENTORIES 2017 2016 $’000 $’000 Current Inventories

Developed Land, Construction Completed and Available for Sale, at Cost (a) 92,797 108,591 Land Being Developed - Work in Progress Land Acquisition Costs (b) 6,876 1,720

Development Costs (c) 25,651 23,492 Total Land Being Developed - Work in Progress 32,527 25,212

Total Current Inventories (a) 125,324 133,803 Non-Current Inventories

Land Being Developed - Work in Progress Land Acquisition Costs (b) 43,800 33,249 Development Costs (d) 83,685 76,219 Total Land Being Developed - Work in Progress 127,485 109,468 Total Non-Current Inventories 127,485 109,468 Total Inventories 252,809 243,271

(a) The decrease in land available for sale and total current inventories was mainly due to settlements in

Moncrieff, Coombs and Denman Prospect, offset by an increase in finished land in Throsby not yet settled.

(b) Land acquisition costs were costs incurred in acquiring land from the Territory in accordance with the LDA's status as a Public Trading Enterprise (see Note 1(b) Public Trading Enterprise). The increase was mainly due to land custodianship of Greenway East and Taylor transferring to the LDA during 2016-17 as well as land value increases for Taylor and Throsby based on revised valuations.

(c) The increase in development costs was due to an increase in inventory through development activity in the Taylor estate.

(d) The increase in non-current development costs was due to the development activities in Molonglo, West Belconnen and Taylor.



27

NOTE 24 PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment includes the following classes of assets – land and buildings, leasehold improvements, plant and equipment and community and heritage assets. Property, plant and equipment does not include assets held for sale or investment properties.

Land and Buildings held includes rural properties, property held for use as office buildings, storage facilities, and commercial display space. Land which was used for trading was classified as inventory (See Note 23: Inventories).

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

Plant and Equipment includes furniture, fittings and electronic office equipment.

Heritage assets are the John Fowler & Co Locomotive.

2017 2016 $’000 $’000 Land and Buildings Land at Fair Value (a) 35,736 24,033 Total Land Assets 35,736 24,033 Buildings at Fair Value (b) 7,033 1,174 Less: Accumulated Depreciation (629) (279) Less: Accumulated Impairment Losses (423) - Total Written-Down Value of Buildings 5,981 895 Total Land and Written-Down Value of Land and Buildings 41,717 24,928 Leasehold Improvements at Cost Leasehold Improvements at Cost 2,382 2,379 Less: Accumulated Depreciation (2,363) (2,348) Total Written-Down Value of Leasehold Improvements Assets 19 31 Plant and Equipment at Cost Plant and Equipment at Cost 158 92 Less: Accumulated Depreciation (79) (73) Less: Accumulated Impairment Losses (2) - Total Written-Down Value of Plant and Equipment 77 19 Heritage Assets at Cost Heritage Assets at Cost 442 442 Total Written-Down Value of Heritage Assets 442 442 Total Written-Down Value of Property, Plant and Equipment 42,255 25,420

(a) The increase in Land was due to the purchase of rural land in Belconnen and Stromlo.

(b) The increase in Buildings was due to the inclusion of new assets for the West Belconnen Joint Operation, a rowing shed in Barton and the City to the Lake West Basin Boardwalk.

97



28

NOTE 24 PROPERTY, PLANT AND EQUIPMENT - CONTINUEDValuation of Property, Plant and Equipment Jones Lang LaSalle Advisory Services Pty Ltd valuers Matthew Shadbolt (CPV) AAPI and Steve Celica (CPV) AAPI performed a valuation of the LDA’s Land and Buildings at 30 June 2016.

Reconciliation of Property, Plant and Equipment at 30 June 2017

The following table shows the movement of Property, Plant and Equipment in 2016-17

Leasehold Plant and Heritage Land Buildings Improvements Equipment Assets Total $’000 $’000 $’000 $’000 $’000 $’000 Carrying Amount at the Beginning of the Reporting Period 24,033 895 31 19 442 25,420 Additions 11,703 5,859 3 66 - 17,631 Impairment Losses Recognised in the

Operating Surplus/(Deficit) - (423) - (2) - (425) Depreciation - (350) (15) (6) - (371) Carrying Amount at the End of the Reporting Period 35,736 5,981 19 77 442 42,255



Leasehold Plant and Heritage Land Buildings Improvements Equipment Assets Total $’000 $’000 $’000 $’000 $’000 $’000 Carrying Amount at the Beginning of the Reporting Period - - 45 22 435 502 Additions 27,395 1,174 2 7 28,578 Depreciation - (279) (14) (5) - (298) Revaluation Loss (3,362) - - - (3,362) Carrying Amount at the End of the Reporting Period 24,033 895 31 19 442 25,420



29

NOTE 24 PROPERTY, PLANT AND EQUIPMENT - CONTINUED Carrying Value of Fair Valued Assets under the Cost Model The following classes of Property, Plant and Equipment, which were carried at fair value (as indicated above), would have had carrying values, if measured using the cost model, as follows: 2017 2016 $’000 $’000 Carrying Value if Measured Using Cost Model Land Cost 27,395 27,395 Addition 11,703 - Net Carrying Amount of Land at Cost 39,098 27,395 Buildings Cost 895 1,174 Addition 5,859 - Accumulated Depreciation and Impairment Losses (773) (279) Net Carrying Amount of Buildings at Cost 5,981 895




28

NOTE 24 PROPERTY, PLANT AND EQUIPMENT - CONTINUEDValuation of Property, Plant and Equipment Jones Lang LaSalle Advisory Services Pty Ltd valuers Matthew Shadbolt (CPV) AAPI and Steve Celica (CPV) AAPI performed a valuation of the LDA’s Land and Buildings at 30 June 2016.



Leasehold Plant and Heritage Land Buildings Improvements Equipment Assets Total $’000 $’000 $’000 $’000 $’000 $’000 Carrying Amount at the Beginning of the Reporting Period 24,033 895 31 19 442 25,420 Additions 11,703 5,859 3 66 - 17,631 Impairment Losses Recognised in the

Operating Surplus/(Deficit) - (423) - (2) - (425) Depreciation - (350) (15) (6) - (371) Carrying Amount at the End of the Reporting Period 35,736 5,981 19 77 442 42,255



Leasehold Plant and Heritage Land Buildings Improvements Equipment Assets Total $’000 $’000 $’000 $’000 $’000 $’000 Carrying Amount at the Beginning of the Reporting Period - - 45 22 435 502 Additions 27,395 1,174 2 7 28,578 Depreciation - (279) (14) (5) - (298) Revaluation Loss (3,362) - - - (3,362) Carrying Amount at the End of the Reporting Period 24,033 895 31 19 442 25,420



29

NOTE 24 PROPERTY, PLANT AND EQUIPMENT - CONTINUED Carrying Value of Fair Valued Assets under the Cost Model The following classes of Property, Plant and Equipment, which were carried at fair value (as indicated above), would have had carrying values, if measured using the cost model, as follows: 2017 2016 $’000 $’000 Carrying Value if Measured Using Cost Model Land Cost 27,395 27,395 Addition 11,703 - Net Carrying Amount of Land at Cost 39,098 27,395 Buildings Cost 895 1,174 Addition 5,859 - Accumulated Depreciation and Impairment Losses (773) (279) Net Carrying Amount of Buildings at Cost 5,981 895

99



30

NOTE 24 PROPERTY, PLANT AND EQUIPMENT – CONTINUED Fair Value Hierarchy The LDA was required to classify property, plant and equipment into a Fair Value Hierarchy that reflects the significance of the inputs used in determining their fair value. The Fair Value Hierarchy was made up of the following three levels:

• Level 1 - quoted prices (unadjusted) in active markets for identical assets or liabilities that the LDA could access at the measurement date;

• Level 2 - inputs other than quoted prices included within Level 1 that were observable for the asset or liability, either directly or indirectly; and

• Level 3 - inputs that were unobservable for particular assets or liabilities. Details of the LDA’s property, plant and equipment at fair value and information about the Fair Value Hierarchy as at 30 June 2017 are as follows: 2017 Classification According to Fair Value Hierarchy Level 1 Level 2 Level 3 Total $’000 $’000 $’000 $’000 Property, Plant and Equipment at Fair Value Land - 35,736 - 35,736 Buildings - 5,981 - 5,981 - 41,717 - 41,717

Details of the LDA’s property, plant and equipment at fair value and information about the Fair Value Hierarchy at 30 June 2016 are as follows:

2016 Classification According to Fair Value Hierarchy Level 1 Level 2 Level 3 Total $’000 $’000 $’000 $’000 Property, Plant and Equipment at Fair Value Land - 24,033 - 24,033 Buildings - 895 - 895 - 24,928 - 24,928



31

NOTE 24 PROPERTY, PLANT AND EQUIPMENT – CONTINUED Transfers Between Categories There were no transfers between Levels 1, 2 and 3 during the current and previous reporting period. Valuation Techniques, inputs and processes Level 2 Valuation Techniques and Inputs Valuation Technique: The valuation technique used to value land and buildings was the market approach that reflects recent transaction prices for similar properties and buildings (comparable in location and size). Inputs: Prices and other relevant information generated by market transactions involving comparable land and buildings were considered. Regard was taken of the Crown Lease terms and tenure, Australian Capital Territory Plan and National Capital Plan, where applicable, as well as current zoning. There was no change to the above valuation techniques during the year. Transfers in and out of a fair value level were recognised on the date of the event or change in circumstances that caused the transfer.




30

NOTE 24 PROPERTY, PLANT AND EQUIPMENT – CONTINUED Fair Value Hierarchy The LDA was required to classify property, plant and equipment into a Fair Value Hierarchy that reflects the significance of the inputs used in determining their fair value. The Fair Value Hierarchy was made up of the following three levels:

• Level 1 - quoted prices (unadjusted) in active markets for identical assets or liabilities that the LDA could access at the measurement date;

• Level 2 - inputs other than quoted prices included within Level 1 that were observable for the asset or liability, either directly or indirectly; and

• Level 3 - inputs that were unobservable for particular assets or liabilities. Details of the LDA’s property, plant and equipment at fair value and information about the Fair Value Hierarchy as at 30 June 2017 are as follows: 2017 Classification According to Fair Value Hierarchy Level 1 Level 2 Level 3 Total $’000 $’000 $’000 $’000 Property, Plant and Equipment at Fair Value Land - 35,736 - 35,736 Buildings - 5,981 - 5,981 - 41,717 - 41,717

Details of the LDA’s property, plant and equipment at fair value and information about the Fair Value Hierarchy at 30 June 2016 are as follows:

2016 Classification According to Fair Value Hierarchy Level 1 Level 2 Level 3 Total $’000 $’000 $’000 $’000 Property, Plant and Equipment at Fair Value Land - 24,033 - 24,033 Buildings - 895 - 895 - 24,928 - 24,928



31

NOTE 24 PROPERTY, PLANT AND EQUIPMENT – CONTINUED Transfers Between Categories There were no transfers between Levels 1, 2 and 3 during the current and previous reporting period. Valuation Techniques, inputs and processes Level 2 Valuation Techniques and Inputs Valuation Technique: The valuation technique used to value land and buildings was the market approach that reflects recent transaction prices for similar properties and buildings (comparable in location and size). Inputs: Prices and other relevant information generated by market transactions involving comparable land and buildings were considered. Regard was taken of the Crown Lease terms and tenure, Australian Capital Territory Plan and National Capital Plan, where applicable, as well as current zoning. There was no change to the above valuation techniques during the year. Transfers in and out of a fair value level were recognised on the date of the event or change in circumstances that caused the transfer.

101



32

NOTE 25 INTANGIBLE ASSETS

2017 2016 $’000 $’000 Computer Software Externally Purchased Software Balance at the Beginning of the Reporting Period 261 218 Additions 112 43 Subtotal 373 261 Less: Accumulated Amortisation (229) (164) Total Externally Purchased Software 144 97 Total Computer Software 144 97 Other Intangibles Externally Purchased Goodwill Balance at the Beginning of the Reporting Period 573 573 Less: Accumulated Impairment Losses (a) (573) - Total Externally Purchased Goodwill - 573 Total Other Intangibles - 573 Total Intangible Assets 144 670 (a) This relates to Goodwill associated with the boat hire business purchased by the LDA. An assessment of

impairment was made based on cessation of the business and the expectation that there will be no future economic benefits. Refer to Note 18.



33

NOTE 26 PAYABLES 2017 2016 $’000 $’000 Current Payables Other Payables (a) 71,154 32,942 Payables to Environment, Planning and Sustainable Development Directorate for Land Sold (b) 3,949 11,792 Payables to Environment, Planning and Sustainable Development Directorate for Land Developed or Yet to Be Developed (c) 29,225 42,086 Accrued Expenses (d) 12,801 9,799 Total Current Payables 117,129 96,619 Non-Current Payables Payables to Environment, Planning and Sustainable Development Directorate for Land yet to be developed (e) 12,927 3,694 Total Non-Current Payables 12,927 3,694 Total Payables 130,056 100,313 (a) The increase in other payables relates to the capital distribution payment to CMTEDD following the

transfer of Red Hill Flats to the LDA as a capital injection.

(b) The decrease in payables to the Environment, Planning and Sustainable Development Directorate (EPSDD) relates to lower outstanding land payments at 30 June 2017. These were previously paid to TCCS. This change was due to Administrative Arrangements 2016 No. 3, which transferred the Parks and Conservation Service function and associated land inventory from the TCCS to the EPSDD.

(c) The decrease in payables relates to reduced payable to EPSDD for developed land due to the settlement of developed land in Denman Prospect, Coombs and Moncrieff; offset by an increase in finished land in Throsby not yet settled.

(d) The increase in accrued expenses relates to higher unpaid outstanding civil works completed up to 30 June 2017 compared to 30 June 2016 which had not yet been invoiced.

(e) The increase in non-current payable to the EPSDD mainly relates to revised land valuations for Taylor and Throsby to take into consideration the urban overlay which existed when the land transferred to the LDA.




32

NOTE 25 INTANGIBLE ASSETS

2017 2016 $’000 $’000 Computer Software Externally Purchased Software Balance at the Beginning of the Reporting Period 261 218 Additions 112 43 Subtotal 373 261 Less: Accumulated Amortisation (229) (164) Total Externally Purchased Software 144 97 Total Computer Software 144 97 Other Intangibles Externally Purchased Goodwill Balance at the Beginning of the Reporting Period 573 573 Less: Accumulated Impairment Losses (a) (573) - Total Externally Purchased Goodwill - 573 Total Other Intangibles - 573 Total Intangible Assets 144 670 (a) This relates to Goodwill associated with the boat hire business purchased by the LDA. An assessment of

impairment was made based on cessation of the business and the expectation that there will be no future economic benefits. Refer to Note 18.



33

NOTE 26 PAYABLES 2017 2016 $’000 $’000 Current Payables Other Payables (a) 71,154 32,942 Payables to Environment, Planning and Sustainable Development Directorate for Land Sold (b) 3,949 11,792 Payables to Environment, Planning and Sustainable Development Directorate for Land Developed or Yet to Be Developed (c) 29,225 42,086 Accrued Expenses (d) 12,801 9,799 Total Current Payables 117,129 96,619 Non-Current Payables Payables to Environment, Planning and Sustainable Development Directorate for Land yet to be developed (e) 12,927 3,694 Total Non-Current Payables 12,927 3,694 Total Payables 130,056 100,313 (a) The increase in other payables relates to the capital distribution payment to CMTEDD following the


(b) The decrease in payables to the Environment, Planning and Sustainable Development Directorate (EPSDD) relates to lower outstanding land payments at 30 June 2017. These were previously paid to TCCS. This change was due to Administrative Arrangements 2016 No. 3, which transferred the Parks and Conservation Service function and associated land inventory from the TCCS to the EPSDD.

(c) The decrease in payables relates to reduced payable to EPSDD for developed land due to the settlement of developed land in Denman Prospect, Coombs and Moncrieff; offset by an increase in finished land in Throsby not yet settled.

(d) The increase in accrued expenses relates to higher unpaid outstanding civil works completed up to 30 June 2017 compared to 30 June 2016 which had not yet been invoiced.

(e) The increase in non-current payable to the EPSDD mainly relates to revised land valuations for Taylor and Throsby to take into consideration the urban overlay which existed when the land transferred to the LDA.

103



34

NOTE 26 PAYABLES - CONTINUED 2017 2016 $’000 $’000 Payables are aged as follows: Not Overdue 130,056 100,313 Total Payables 130,056 100,313 Classification of ACT Government/Non-ACT Government Payables Payables with ACT Government Entities Other Payables (a) 39,931 14,193 Payables to Environment, Planning and Sustainable Development Directorate for Land Sold (b) 3,949 11,792 Payables to Environment, Planning and Sustainable Development Directorate for Land Developed or Yet to Be Developed (b) 42,152 45,780 Accrued Expenses 2,112 1,601 Total Payables with ACT Government Entities 88,144 73,366 Payables with Non-ACT Government Entities Other Payables (c) 31,223 18,749 Accrued Expenses (d) 10,689 8,198 Total Payables with Non-ACT Government Entities 41,912 26,947 Total Payables 130,056 100,313

(a) The increase in other payables relates to the capital distribution payment to CMTEDD following the


(b) The decrease in payables to the EPSDD relates to lower outstanding land payments at 30 June 2017. These were previously paid to the TCCS. This change is due to Administrative Arrangements 2016 No. 3, which transferred the Parks and Conservation Service function and associated land inventory from TCCS to EPSDD.

(c) The increase in other payables to non-ACT Government entities relates predominantly to GST payable to the Australian Taxation Office (ATO) for land sold in June 2017.

(d) The increase in accrued expenses predominantly relates to higher unpaid outstanding civil works

completed up to 30 June 2017 compared to 30 June 2016 which had not yet been invoiced.



35

NOTE 27 EMPLOYEE BENEFITS 2017 2016 $’000 $’000 Current Employee Benefits Long Service Leave (a) 3,013 2,759 Annual Leave 1,612 1,416 Accrued Salaries and Superannuation 133 96 Accrued Payroll Tax 72 39 Accrued Fringe Benefits Tax 6 1 Total Current Employee Benefits 4,836 4,311 Non-Current Employee Benefits Long Service Leave 201 210 Total Non-Current Employee Benefits 201 210 Total Employee Benefits 5,037 4,521

Estimate of when Leave is Payable Estimated Amount Payable within 12 months 2017 2016 $’000 $’000 Long Service Leave 221 243 Annual Leave 862 869 Accrued Salaries and Superannuation 133 96 Accrued Payroll Tax 72 39 Accrued Fringe Benefits Tax 6 1 Total Employee Benefits Payable within 12 months 1,294 1,248 Estimated Amount Payable after 12 months Long Service Leave (a) 2,993 2,726 Annual Leave 750 547 Total Employee Benefits Payable after 12 months 3,743 3,273 Total Employee Benefits 5,037 4,521 (a) The increase in long service leave was predominantly due to new staff transferring long service leave

balances to the LDA from other Agencies and Directorates.

At 30 June 2017, the LDA employed 109.6 full time equivalent (FTE) staff. There were 96.8 FTE staff at 30 June 2016. The increase in staff numbers was due to new positions to undertake a business improvement project and project management.




34

NOTE 26 PAYABLES - CONTINUED 2017 2016 $’000 $’000 Payables are aged as follows: Not Overdue 130,056 100,313 Total Payables 130,056 100,313 Classification of ACT Government/Non-ACT Government Payables Payables with ACT Government Entities Other Payables (a) 39,931 14,193 Payables to Environment, Planning and Sustainable Development Directorate for Land Sold (b) 3,949 11,792 Payables to Environment, Planning and Sustainable Development Directorate for Land Developed or Yet to Be Developed (b) 42,152 45,780 Accrued Expenses 2,112 1,601 Total Payables with ACT Government Entities 88,144 73,366 Payables with Non-ACT Government Entities Other Payables (c) 31,223 18,749 Accrued Expenses (d) 10,689 8,198 Total Payables with Non-ACT Government Entities 41,912 26,947 Total Payables 130,056 100,313

(a) The increase in other payables relates to the capital distribution payment to CMTEDD following the


(b) The decrease in payables to the EPSDD relates to lower outstanding land payments at 30 June 2017. These were previously paid to the TCCS. This change is due to Administrative Arrangements 2016 No. 3, which transferred the Parks and Conservation Service function and associated land inventory from TCCS to EPSDD.

(c) The increase in other payables to non-ACT Government entities relates predominantly to GST payable to the Australian Taxation Office (ATO) for land sold in June 2017.

(d) The increase in accrued expenses predominantly relates to higher unpaid outstanding civil works

completed up to 30 June 2017 compared to 30 June 2016 which had not yet been invoiced.



35

NOTE 27 EMPLOYEE BENEFITS 2017 2016 $’000 $’000 Current Employee Benefits Long Service Leave (a) 3,013 2,759 Annual Leave 1,612 1,416 Accrued Salaries and Superannuation 133 96 Accrued Payroll Tax 72 39 Accrued Fringe Benefits Tax 6 1 Total Current Employee Benefits 4,836 4,311 Non-Current Employee Benefits Long Service Leave 201 210 Total Non-Current Employee Benefits 201 210 Total Employee Benefits 5,037 4,521

Estimate of when Leave is Payable Estimated Amount Payable within 12 months 2017 2016 $’000 $’000 Long Service Leave 221 243 Annual Leave 862 869 Accrued Salaries and Superannuation 133 96 Accrued Payroll Tax 72 39 Accrued Fringe Benefits Tax 6 1 Total Employee Benefits Payable within 12 months 1,294 1,248 Estimated Amount Payable after 12 months Long Service Leave (a) 2,993 2,726 Annual Leave 750 547 Total Employee Benefits Payable after 12 months 3,743 3,273 Total Employee Benefits 5,037 4,521 (a) The increase in long service leave was predominantly due to new staff transferring long service leave

balances to the LDA from other Agencies and Directorates.

At 30 June 2017, the LDA employed 109.6 full time equivalent (FTE) staff. There were 96.8 FTE staff at 30 June 2016. The increase in staff numbers was due to new positions to undertake a business improvement project and project management.

105



36

NOTE 28 OTHER PROVISIONS 2017 2016 $’000 $’000 Current Other Provisions Provision for Project Completion 56,568 72,686 Provision to Transfer Infrastructure 12,474 10,875 Total Current Other Provisions 69,042 83,561 Non-Current Other Provisions Provision for Project Completion 41,043 49,348 Provision to Transfer Infrastructure (a) 29,672 8,209 Total Non-Current Other Provision 70,715 57,557 Total Other Provisions 139,757 141,118

Provision for Project Completion The provision for project completion reflects the expected costs required to finish developed parcels of land. 2017 2016 $'000 $'000 Reconciliation of the Provision for Project Completion Provision for Project Completion at the Beginning of the Reporting Period 122,034 88,033 Increase in Provision due to blocks becoming Settlement Ready (b) 69,087 216,996

Decrease in Provision due to Payments (c) (93,510) (182,995) Provision for Project Completion at the End of the Reporting Period 97,611 122,034 Provision to Transfer Infrastructure The provision to transfer infrastructure reflects the value of infrastructure assets that are to be transferred to the relevant ACT Government agency when construction is completed. 2017 2016 $'000 $'000 Reconciliation of the Provision to Transfer Infrastructure Provision to Transfer infrastructure at the Beginning of the Reporting Period 19,084 19,066 Add: New Infrastructure to be Developed by Other Developers 23,143 4,379 Less: Transfer of Infrastructure to ACT Government Entities (81) (4,361) Provision for Transfer Infrastructure at the End of the Reporting Period 42,146 19,084 (a) The increase was due to increased liabilities to transfer infrastructure assets to TCCS and Icon Water for

land sales to third parties in the 2016-17 financial year including the sale of ARI sites, Denman Prospect and Kingston Foreshore.

(b) In 2016-17, the increase in the value of Provision for Project Completion related to settlement ready blocks in LDA estates. The major contributor was Throsby. Less blocks became settlement ready in 2016-17 compared to 2015.16.

(c) The decrease in the Provision for Project Completion in 2016-17 was mainly due to payments made for estate development costs. As blocks of land in LDA estates become available for settlement a Provision for Project Completion is raised for work to be completed on public assets in order to receive final completion from the TCCS.



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NOTE 29 NATIONAL TAX EQUIVALENTS PAYABLE 2017 2016

$’000 $’000 Opening Balance 80,297 3,040 Prior Year Adjustment - (26,065) Opening Balance Restated 80,297 (23,025) Payment of Previous Year's National Tax Equivalents (80,297) (3,039) Deferral of National Tax Payment to Future Periods (9,574) 20,832 National Tax Expense for Current Year (a) 95,174 74,253 Prior Year Adjustment to Current Year Income Tax Expense - 26,065 Instalments Paid for Current Year's National Tax Equivalents (37,497) (14,789) Total National Tax Payable (b) 48,103 80,297

(a) The increase in National Tax Expense was mainly due to the higher operating surplus.

(b) The decrease in National Tax Equivalents payable was due to increased instalment payments made during the year.

NOTE 30 OTHER LIABILITIES 2017 2016 $’000 $’000 Current Other Liabilities Dividend Payable (a) 97,110 98,257 Revenue Received in Advance 11,080 15,978 Total Current Other Liabilities 108,190 114,235 Non-Current Other Liabilities Revenue Received in Advance (b) 5,260 - Total Non-Other Liabilities 5,260 - Total Other Liabilities 113,450 114,235 Reconciliation of Dividends Payable Dividends Payable at the Beginning of the Reporting Period 98,257 48,116 Dividends Declared during the Reporting Period 259,369 173,257 Dividends Paid during the Reporting Period for Previous Year (98,257) (48,116) Dividends Paid during the Reporting Period for Current Year (162,259) (75,000) Dividend Payable at the End of the Reporting Period 97,110 98,257

(a) The decrease in dividend payable was mainly due to an increased interim dividend payment during 2016-17, partially offset by increased operating surplus.

(b) The increase in non-current revenue received in advance relates to deposits received for land sales with expected settlement dates, 12 months, or greater, after 30 June 2017.




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NOTE 28 OTHER PROVISIONS 2017 2016 $’000 $’000 Current Other Provisions Provision for Project Completion 56,568 72,686 Provision to Transfer Infrastructure 12,474 10,875 Total Current Other Provisions 69,042 83,561 Non-Current Other Provisions Provision for Project Completion 41,043 49,348 Provision to Transfer Infrastructure (a) 29,672 8,209 Total Non-Current Other Provision 70,715 57,557 Total Other Provisions 139,757 141,118

Provision for Project Completion The provision for project completion reflects the expected costs required to finish developed parcels of land. 2017 2016 $'000 $'000 Reconciliation of the Provision for Project Completion Provision for Project Completion at the Beginning of the Reporting Period 122,034 88,033 Increase in Provision due to blocks becoming Settlement Ready (b) 69,087 216,996

Decrease in Provision due to Payments (c) (93,510) (182,995) Provision for Project Completion at the End of the Reporting Period 97,611 122,034 Provision to Transfer Infrastructure The provision to transfer infrastructure reflects the value of infrastructure assets that are to be transferred to the relevant ACT Government agency when construction is completed. 2017 2016 $'000 $'000 Reconciliation of the Provision to Transfer Infrastructure Provision to Transfer infrastructure at the Beginning of the Reporting Period 19,084 19,066 Add: New Infrastructure to be Developed by Other Developers 23,143 4,379 Less: Transfer of Infrastructure to ACT Government Entities (81) (4,361) Provision for Transfer Infrastructure at the End of the Reporting Period 42,146 19,084 (a) The increase was due to increased liabilities to transfer infrastructure assets to TCCS and Icon Water for

land sales to third parties in the 2016-17 financial year including the sale of ARI sites, Denman Prospect and Kingston Foreshore.

(b) In 2016-17, the increase in the value of Provision for Project Completion related to settlement ready blocks in LDA estates. The major contributor was Throsby. Less blocks became settlement ready in 2016-17 compared to 2015.16.

(c) The decrease in the Provision for Project Completion in 2016-17 was mainly due to payments made for estate development costs. As blocks of land in LDA estates become available for settlement a Provision for Project Completion is raised for work to be completed on public assets in order to receive final completion from the TCCS.



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NOTE 29 NATIONAL TAX EQUIVALENTS PAYABLE 2017 2016

$’000 $’000 Opening Balance 80,297 3,040 Prior Year Adjustment - (26,065) Opening Balance Restated 80,297 (23,025) Payment of Previous Year's National Tax Equivalents (80,297) (3,039) Deferral of National Tax Payment to Future Periods (9,574) 20,832 National Tax Expense for Current Year (a) 95,174 74,253 Prior Year Adjustment to Current Year Income Tax Expense - 26,065 Instalments Paid for Current Year's National Tax Equivalents (37,497) (14,789) Total National Tax Payable (b) 48,103 80,297

(a) The increase in National Tax Expense was mainly due to the higher operating surplus.

(b) The decrease in National Tax Equivalents payable was due to increased instalment payments made during the year.

NOTE 30 OTHER LIABILITIES 2017 2016 $’000 $’000 Current Other Liabilities Dividend Payable (a) 97,110 98,257 Revenue Received in Advance 11,080 15,978 Total Current Other Liabilities 108,190 114,235 Non-Current Other Liabilities Revenue Received in Advance (b) 5,260 - Total Non-Other Liabilities 5,260 - Total Other Liabilities 113,450 114,235 Reconciliation of Dividends Payable Dividends Payable at the Beginning of the Reporting Period 98,257 48,116 Dividends Declared during the Reporting Period 259,369 173,257 Dividends Paid during the Reporting Period for Previous Year (98,257) (48,116) Dividends Paid during the Reporting Period for Current Year (162,259) (75,000) Dividend Payable at the End of the Reporting Period 97,110 98,257

(a) The decrease in dividend payable was mainly due to an increased interim dividend payment during 2016-17, partially offset by increased operating surplus.

(b) The increase in non-current revenue received in advance relates to deposits received for land sales with expected settlement dates, 12 months, or greater, after 30 June 2017.

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NOTE 31 DEFERRED TAX LIABILITY

Deferred tax liabilities are the amounts of national taxes payable in future periods relating to temporary differences between the calculation of accounting and taxation profit. 2017 2016 $’000 $’000 The balance comprises temporary differences attributable to: Opening Balance 27,717 47,893 Prior Year Adjustments - 26,065 Restated Opening Balance 27,717 73,958 Prior Year Adjustments - (26,065) Increase/(Decrease) in Inventories 3,275 (10,626) Increase/(Decrease) in Provision for Project Completion 7,327 (10,200) (Decrease) in Employee Benefits (137) (190) Accelerated Depreciation 32 32 Other (923) 152 Transfer Deferred Tax Liability to National Tax Equivalents Expense(a) (37,291) - Current year movements (27,717) 27,061 Adjustments for previous period share to Joint Venture Profit - 656 Net Deferred Tax Liability - 27,717

(a) The LDA ceased operating as a separate entity from 1 July 2017. The deferred tax liability has been




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NOTE 32 FINANCIAL INSTRUMENTS Outlined below are the terms and conditions of financial assets and liabilities held by the LDA at 30 June 2017. From 1 July 2017, the LDA ceased operating and its functions transferred to the Suburban Land Agency, the City Renewal Authority and the EPSDD. Details of significant policies and methods adopted, including the criteria for recognition, the basis of measurement, and the basis on which income and expenses were recognised, with respect to each class of financial asset and financial liability, are disclosed at Note 2 (see Appendix B: Significant Accounting Policies). Interest Rate Risk Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The LDA held most financial assets in floating interest rate arrangements. The LDA was not exposed to movements in interest payable as its financial liabilities are non-interest bearing. However, it was exposed to movements in interest receivable. Financial assets subject to floating interest rates includes investments held in commercial banking accounts and receivables for sales completed via instalments. The LDA managed the interest rate risk on investments held in a commercial banking account by only investing in floating interest rate investments that are low risk. The receivables with instalment payments were not actively managed due to the associated interest payments being immaterial. Interest rate risk for financial liabilities was not actively managed by the LDA as all financial liabilities were non-interest bearing. Sensitivity Analysis A sensitivity analysis of the interest rate risk was not been performed, because the LDA's exposure to interest rate risk had been assessed as immaterial. Credit Risk Credit risk is the risk that one party to a financial instrument will fail to discharge an obligation and cause the other party to incur a financial loss. The LDA’s credit risk was limited to the amount of the financial assets it held net of any allowance for impairment. The LDA expected to collect all financial assets that were not past due or impaired. The LDA's credit risk mainly included the investment of excess cash and exposure to deferred payment receivables. Credit risk was managed by the LDA by only investing surplus funds in commercial bank account or with the Territory Banking Account, which had appropriate investment criteria for the external fund manager engaged to manage the Territory’s surplus funds. Credit risk for deferred payment receivables relates to sales in which proceeds are received via instalments. All contracts of this nature were effectively secured by the Deed of Agreement for each sale. Credit risk for receivables mainly related to sales proceeds receivable from the CMTEDD for land rent sales which were considered to be low risk. Therefore, the exposure to credit risk from the investment of excess cash and from receivables was low. The LDA had a loan receivable from the West Belconnen Joint Operation. Under the joint operation agreement, proceeds from the sale of land will repay this loan. Therefore, the exposure to credit risk from this loan was low.




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NOTE 31 DEFERRED TAX LIABILITY

Deferred tax liabilities are the amounts of national taxes payable in future periods relating to temporary differences between the calculation of accounting and taxation profit. 2017 2016 $’000 $’000 The balance comprises temporary differences attributable to: Opening Balance 27,717 47,893 Prior Year Adjustments - 26,065 Restated Opening Balance 27,717 73,958 Prior Year Adjustments - (26,065) Increase/(Decrease) in Inventories 3,275 (10,626) Increase/(Decrease) in Provision for Project Completion 7,327 (10,200) (Decrease) in Employee Benefits (137) (190) Accelerated Depreciation 32 32 Other (923) 152 Transfer Deferred Tax Liability to National Tax Equivalents Expense(a) (37,291) - Current year movements (27,717) 27,061 Adjustments for previous period share to Joint Venture Profit - 656 Net Deferred Tax Liability - 27,717

(a) The LDA ceased operating as a separate entity from 1 July 2017. The deferred tax liability has been




39

NOTE 32 FINANCIAL INSTRUMENTS Outlined below are the terms and conditions of financial assets and liabilities held by the LDA at 30 June 2017. From 1 July 2017, the LDA ceased operating and its functions transferred to the Suburban Land Agency, the City Renewal Authority and the EPSDD. Details of significant policies and methods adopted, including the criteria for recognition, the basis of measurement, and the basis on which income and expenses were recognised, with respect to each class of financial asset and financial liability, are disclosed at Note 2 (see Appendix B: Significant Accounting Policies). Interest Rate Risk Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The LDA held most financial assets in floating interest rate arrangements. The LDA was not exposed to movements in interest payable as its financial liabilities are non-interest bearing. However, it was exposed to movements in interest receivable. Financial assets subject to floating interest rates includes investments held in commercial banking accounts and receivables for sales completed via instalments. The LDA managed the interest rate risk on investments held in a commercial banking account by only investing in floating interest rate investments that are low risk. The receivables with instalment payments were not actively managed due to the associated interest payments being immaterial. Interest rate risk for financial liabilities was not actively managed by the LDA as all financial liabilities were non-interest bearing. Sensitivity Analysis A sensitivity analysis of the interest rate risk was not been performed, because the LDA's exposure to interest rate risk had been assessed as immaterial. Credit Risk Credit risk is the risk that one party to a financial instrument will fail to discharge an obligation and cause the other party to incur a financial loss. The LDA’s credit risk was limited to the amount of the financial assets it held net of any allowance for impairment. The LDA expected to collect all financial assets that were not past due or impaired. The LDA's credit risk mainly included the investment of excess cash and exposure to deferred payment receivables. Credit risk was managed by the LDA by only investing surplus funds in commercial bank account or with the Territory Banking Account, which had appropriate investment criteria for the external fund manager engaged to manage the Territory’s surplus funds. Credit risk for deferred payment receivables relates to sales in which proceeds are received via instalments. All contracts of this nature were effectively secured by the Deed of Agreement for each sale. Credit risk for receivables mainly related to sales proceeds receivable from the CMTEDD for land rent sales which were considered to be low risk. Therefore, the exposure to credit risk from the investment of excess cash and from receivables was low. The LDA had a loan receivable from the West Belconnen Joint Operation. Under the joint operation agreement, proceeds from the sale of land will repay this loan. Therefore, the exposure to credit risk from this loan was low.

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NOTE 32 FINANCIAL INSTRUMENTS – CONTINUED Liquidity Risk Liquidity risk is the risk that the LDA will encounter difficulties in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset. To limit its exposure to liquidity risk, the LDA ensured that it did not have a large portion of its financial liabilities maturing in any one reporting period and that, at any particular point in time. The LDA had 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 had not changed since the previous reporting period. Price Risk Price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices (other than those arising from interest rate risk or currency risk), whether these changes are caused by factors specific to the individual financial instrument or its issuer, or by factors affecting all similar financial instruments traded in the market. Sensitivity Analysis A sensitivity analysis of the price risk had not been performed as the LDA was not exposed to price risk.



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NOTE 32 FINANCIAL INSTRUMENTS - CONTINUED 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: Note Carrying Fair Value Carrying Fair Value No. Amount Amount Amount Amount 2017 2017 2016 2016 $’000 $’000 $’000 $’000 Financial Assets Cash 21 191,689 191,689 283,887 283,887 Receivables (a) 22 29,382 29,382 17,577 17,577 Total Financial Assets 221,071 221,071 301,464 301,464 Financial Liabilities Payables (b) 26 87,904 87,904 54,533 54,533 Total Financial Liabilities 87,904 87,904 54,533 54,533 2017 2016 Reconciliation of Receivables as Financial Assets: $’000 $’000 Total Receivables 71,528 36,972 Less: Current Right to Receive Infrastructure 12,474 10,875 Non-Current Right to Receive Infrastructure 29,672 8,209 Accrued Revenue - 311 42,146 19,395 Total Receivables as Financial Assets 29,382 17,577 Reconciliation of Payables as Financial Liabilities: Total Payables 130,056 100,313 Less: Current Payables to Environment, Planning and Sustainable Development

Directorate for Land Developed or Yet to Be Developed (b) 29,225 42,086 Non-Current Payables to Environment, Planning and Sustainable Development

Directorate for Land Yet to Be Developed (b) 12,927 3,694 42,152 45,780 Total Payable as Financial Liabilities 87,904 54,533

(a) The amounts reported are net of the Right to Receive Infrastructure and Accrued Revenue which do not meet the definition of a Financial Instrument under the Australian Accounting Standard AASB 139: ‘Financial Instruments: Recognition and Measurement’.

(b) The amounts reported are net of the Payables to EPSDD for Land Developed or Yet to Be Developed which does not meet the definition of a Financial Instrument under the Australian Accounting Standard AASB 139: ‘Financial Instruments: Recognition and Measurement’.




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NOTE 32 FINANCIAL INSTRUMENTS – CONTINUED Liquidity Risk Liquidity risk is the risk that the LDA will encounter difficulties in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset. To limit its exposure to liquidity risk, the LDA ensured that it did not have a large portion of its financial liabilities maturing in any one reporting period and that, at any particular point in time. The LDA had 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 had not changed since the previous reporting period. Price Risk Price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices (other than those arising from interest rate risk or currency risk), whether these changes are caused by factors specific to the individual financial instrument or its issuer, or by factors affecting all similar financial instruments traded in the market. Sensitivity Analysis A sensitivity analysis of the price risk had not been performed as the LDA was not exposed to price risk.



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NOTE 32 FINANCIAL INSTRUMENTS - CONTINUED 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: Note Carrying Fair Value Carrying Fair Value No. Amount Amount Amount Amount 2017 2017 2016 2016 $’000 $’000 $’000 $’000 Financial Assets Cash 21 191,689 191,689 283,887 283,887 Receivables (a) 22 29,382 29,382 17,577 17,577 Total Financial Assets 221,071 221,071 301,464 301,464 Financial Liabilities Payables (b) 26 87,904 87,904 54,533 54,533 Total Financial Liabilities 87,904 87,904 54,533 54,533 2017 2016 Reconciliation of Receivables as Financial Assets: $’000 $’000 Total Receivables 71,528 36,972 Less: Current Right to Receive Infrastructure 12,474 10,875 Non-Current Right to Receive Infrastructure 29,672 8,209 Accrued Revenue - 311 42,146 19,395 Total Receivables as Financial Assets 29,382 17,577 Reconciliation of Payables as Financial Liabilities: Total Payables 130,056 100,313 Less: Current Payables to Environment, Planning and Sustainable Development

Directorate for Land Developed or Yet to Be Developed (b) 29,225 42,086 Non-Current Payables to Environment, Planning and Sustainable Development

Directorate for Land Yet to Be Developed (b) 12,927 3,694 42,152 45,780 Total Payable as Financial Liabilities 87,904 54,533

(a) The amounts reported are net of the Right to Receive Infrastructure and Accrued Revenue which do not meet the definition of a Financial Instrument under the Australian Accounting Standard AASB 139: ‘Financial Instruments: Recognition and Measurement’.


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NOTE 32 FINANCIAL INSTRUMENTS – CONTINUED Maturity Analysis 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 2017. Except for non-current payables, financial assets and liabilities which had a floating interest rate or are non-interest bearing will mature in one year or less. All amounts appearing in the following maturity analysis are shown on an undiscounted cash flow basis. Fixed Interest Maturing In: 2017 Note Weighted Floating 1 Year Over 1 to More Non- Total No Average Interest or Less 5 Years than 5 Interest Rate Rate Years Bearing $’000 $’000 $’000 $’000 $’000 $’000 Financial Instruments Financial Assets Cash 21 2.60% 191,689 - - - - 191,689 Receivables (a) 22 7.17% 26 - - - 29,356 29,382 Total Financial Assets 191,715 - - - 29,356 221,071 Financial Liabilities Payables (b) 26 - - - - 87,904 87,904 Total Financial Liabilities - - - - 87,904 87,904 Net Financial Assets/(Liabilities) 191,715 - - - (58,548) 133,167 (a) The amounts reported are net of the Right to Receive Infrastructure which do not meet the definition of a

Financial Instrument under AASB 139 ‘Financial Instruments: Recognition and Measurement’.




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NOTE 32 FINANCIAL INSTRUMENTS – CONTINUED 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 2016. Except for non-current payables, financial assets and liabilities which had a floating interest rate or are non-interest bearing will mature in one year or less. All amounts appearing in the following maturity analysis are shown on an undiscounted cash flow basis. Fixed Interest Maturing In: 2016 Note Weighted Floating 1 Year Over 1 to More Non- Total No Average Interest or Less 5 Years than 5 Interest Rate Rate Years Bearing $’000 $’000 $’000 $’000 $’000 $’000 Financial Instruments Financial Assets Cash 21 2.60% 283,885 - - - 2 283,887 Receivables (a) 22 7.17% 30 - - - 17,547 17,577 Total Financial Assets 283,915 - - - 17,549 301,464 Financial Liabilities Payables (b) 26 - - - - 54,533 54,533 Total Financial Liabilities - - - - 54,533 54,533 Net Financial Assets/(Liabilities) 283,915 - - - (36,984) 246,931

Carrying Amount of Each Category of Financial Asset and Financial Liability 2017 2016 $’000 $’000 Financial Assets Loans and Receivables Measured at Amortised Cost (a) 29,382 17,577 Financial Liabilities Financial Liabilities Measured at Amortised Cost (b) 87,904 54,533 (a) The amounts reported are net of the Right to Receive Infrastructure and Accrued Revenue which do not

meet the definition of a Financial Instrument under the Australian Accounting Standard AASB 139: ‘Financial Instruments: Recognition and Measurement’.


The LDA did not have any financial assets in the 'Available for Sale' category or the 'Held to Maturity' category and as such these categories are not included above. Also, the LDA did not have any financial liabilities in the 'Financial Liabilities at Fair Value through Profit and Loss' category and as such this category is not included above.




42

NOTE 32 FINANCIAL INSTRUMENTS – CONTINUED Maturity Analysis 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 2017. Except for non-current payables, financial assets and liabilities which had a floating interest rate or are non-interest bearing will mature in one year or less. All amounts appearing in the following maturity analysis are shown on an undiscounted cash flow basis. Fixed Interest Maturing In: 2017 Note Weighted Floating 1 Year Over 1 to More Non- Total No Average Interest or Less 5 Years than 5 Interest Rate Rate Years Bearing $’000 $’000 $’000 $’000 $’000 $’000 Financial Instruments Financial Assets Cash 21 2.60% 191,689 - - - - 191,689 Receivables (a) 22 7.17% 26 - - - 29,356 29,382 Total Financial Assets 191,715 - - - 29,356 221,071 Financial Liabilities Payables (b) 26 - - - - 87,904 87,904 Total Financial Liabilities - - - - 87,904 87,904 Net Financial Assets/(Liabilities) 191,715 - - - (58,548) 133,167 (a) The amounts reported are net of the Right to Receive Infrastructure which do not meet the definition of a

Financial Instrument under AASB 139 ‘Financial Instruments: Recognition and Measurement’.




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NOTE 32 FINANCIAL INSTRUMENTS – CONTINUED 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 2016. Except for non-current payables, financial assets and liabilities which had a floating interest rate or are non-interest bearing will mature in one year or less. All amounts appearing in the following maturity analysis are shown on an undiscounted cash flow basis. Fixed Interest Maturing In: 2016 Note Weighted Floating 1 Year Over 1 to More Non- Total No Average Interest or Less 5 Years than 5 Interest Rate Rate Years Bearing $’000 $’000 $’000 $’000 $’000 $’000 Financial Instruments Financial Assets Cash 21 2.60% 283,885 - - - 2 283,887 Receivables (a) 22 7.17% 30 - - - 17,547 17,577 Total Financial Assets 283,915 - - - 17,549 301,464 Financial Liabilities Payables (b) 26 - - - - 54,533 54,533 Total Financial Liabilities - - - - 54,533 54,533 Net Financial Assets/(Liabilities) 283,915 - - - (36,984) 246,931

Carrying Amount of Each Category of Financial Asset and Financial Liability 2017 2016 $’000 $’000 Financial Assets Loans and Receivables Measured at Amortised Cost (a) 29,382 17,577 Financial Liabilities Financial Liabilities Measured at Amortised Cost (b) 87,904 54,533 (a) The amounts reported are net of the Right to Receive Infrastructure and Accrued Revenue which do not

meet the definition of a Financial Instrument under the Australian Accounting Standard AASB 139: ‘Financial Instruments: Recognition and Measurement’.


The LDA did not have any financial assets in the 'Available for Sale' category or the 'Held to Maturity' category and as such these categories are not included above. Also, the LDA did not have any financial liabilities in the 'Financial Liabilities at Fair Value through Profit and Loss' category and as such this category is not included above.

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NOTE 33 COMMITMENTS 2017 2016 $’000 $’000 Operating Leases Commitments Non-Cancellable operating lease commitments are payable as follows: Within One Year 1,313 1,205 Later than One Year but not later than Five Years 435 1,592 Total Operating Lease Commitments (a) 1,748 2,797 (a) Operating leases include:

• the lease of the Dickson Office from ACT Property Group, CMTEDD; • motor vehicle leases from SG Fleet Australia Pty Ltd; and • IT equipment and mobile phones leased by Shared Services ICT, CMTEDD.

NOTE 34 CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Contingent Liabilities

Legal Claims

The ACT Government Solicitor’s Office acted on behalf of the Land Development Agency in litigation matters. At 30 June 2017 the current estimate, provided by the ACT Government Solicitors, of potential claims was Nil. (30 June 2016: $791,328).

Contingent Assets

There were no contingent assets at 30 June 2017 ($1.15 million at 30 June 2016).



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NOTE 35 INTEREST IN JOINT VENTURES The LDA was involved in two unincorporated joint ventures during the reporting period for the residential development of the suburbs of Forde and Crace. A summary of the LDA's total interest in its Joint Ventures is detailed below. The joint ventures were accounted for by LDA using the equity method.

2017 2016 $’000 $’000 Share of the Joint Venture Profit are as follows: Revenue 412 6,594 Expenses (89) 146 Operating Profit before Income Tax Per Joint Venture Statements 501 6,448 Previous Year Adjustments (57) (90) Operating Profit After Income Tax (a) 444 6,358

Share of Joint Venture Assets and Liabilities are as follows: Assets 455 504 Liabilities 59 105 Net Assets 396 399 (a) The LDA had been involved in two unincorporated joint ventures, all sales have been completed and these

are expected to be wound up in 2017-18, as a result there was a decrease in net income.

2017 2016 $’000 $’000 The Carrying Amount of the Investments in the Joint Ventures Balance of Investments in Joint Ventures at the Beginning of the Reporting Period 399 2,241 Previous Year Adjustments (57) (90) Share of Operating Profit from Joint Ventures 501 6,448 Distribution from Joint Ventures (447) (8,200) Balance of Investment in Joint Ventures at the End of the Reporting Period 396 399 Classification in the Balance Sheet Future Joint Venture Distributions Current 396 399 396 399




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NOTE 33 COMMITMENTS 2017 2016 $’000 $’000 Operating Leases Commitments Non-Cancellable operating lease commitments are payable as follows: Within One Year 1,313 1,205 Later than One Year but not later than Five Years 435 1,592 Total Operating Lease Commitments (a) 1,748 2,797 (a) Operating leases include:

• the lease of the Dickson Office from ACT Property Group, CMTEDD; • motor vehicle leases from SG Fleet Australia Pty Ltd; and • IT equipment and mobile phones leased by Shared Services ICT, CMTEDD.

NOTE 34 CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Contingent Liabilities

Legal Claims

The ACT Government Solicitor’s Office acted on behalf of the Land Development Agency in litigation matters. At 30 June 2017 the current estimate, provided by the ACT Government Solicitors, of potential claims was Nil. (30 June 2016: $791,328).

Contingent Assets

There were no contingent assets at 30 June 2017 ($1.15 million at 30 June 2016).



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NOTE 35 INTEREST IN JOINT VENTURES The LDA was involved in two unincorporated joint ventures during the reporting period for the residential development of the suburbs of Forde and Crace. A summary of the LDA's total interest in its Joint Ventures is detailed below. The joint ventures were accounted for by LDA using the equity method.

2017 2016 $’000 $’000 Share of the Joint Venture Profit are as follows: Revenue 412 6,594 Expenses (89) 146 Operating Profit before Income Tax Per Joint Venture Statements 501 6,448 Previous Year Adjustments (57) (90) Operating Profit After Income Tax (a) 444 6,358

Share of Joint Venture Assets and Liabilities are as follows: Assets 455 504 Liabilities 59 105 Net Assets 396 399 (a) The LDA had been involved in two unincorporated joint ventures, all sales have been completed and these

are expected to be wound up in 2017-18, as a result there was a decrease in net income.

2017 2016 $’000 $’000 The Carrying Amount of the Investments in the Joint Ventures Balance of Investments in Joint Ventures at the Beginning of the Reporting Period 399 2,241 Previous Year Adjustments (57) (90) Share of Operating Profit from Joint Ventures 501 6,448 Distribution from Joint Ventures (447) (8,200) Balance of Investment in Joint Ventures at the End of the Reporting Period 396 399 Classification in the Balance Sheet Future Joint Venture Distributions Current 396 399 396 399

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NOTE 35 INTEREST IN JOINT VENTURES - CONTINUED

Joint Venture Name Estate Name Forde Joint Venture Forde The LDA was involved in an unincorporated joint venture during the reporting period, for the residential development of Forde. The two joint venture partners in the Forde Joint Venture were the LDA and Forde Developments Pty Ltd, each party had a 50% ownership interest and 50% voting power in the Joint Venture. The reporting date of the LDA and Forde Joint Venture is 30 June. 2017 2016 $’000 $’000 Share of Joint Venture Profit is as follows: Revenue 32 24 Expenses 10 2 Operating Profit before Income Tax per Forde Joint Venture Statement 22 22 Total Net Income 22 22 Share of Joint Venture Assets and Liabilities is as follows: Assets - 207 Liabilities - 32 Net Assets as per Forde Joint Venture Financial Statements - 175 The Carrying Amount of the Investments in the Joint Venture Balance of Investments in Joint Venture at the Beginning of the Reporting Period 175 1,943 Share of Operating Profit from Joint Venture 22 22 Previous Year Adjustments - (90) Previous Year Legal Fee Adjustments - (1,700) Distribution from Joint Venture (197) - Balance of Investment in Joint Venture at the End of the Reporting Period - 175



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Joint Venture Name Estate Name Forde Joint Venture Forde Classification in the Balance Sheet 2017 2016 Future Joint Venture Distributions $’000 $’000 Current - 175 - 175 Contingent Liabilities The Joint Venture has no contingent liabilities. Contingent Assets The Joint Venture has no contingent assets.




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Joint Venture Name Estate Name Forde Joint Venture Forde The LDA was involved in an unincorporated joint venture during the reporting period, for the residential development of Forde. The two joint venture partners in the Forde Joint Venture were the LDA and Forde Developments Pty Ltd, each party had a 50% ownership interest and 50% voting power in the Joint Venture. The reporting date of the LDA and Forde Joint Venture is 30 June. 2017 2016 $’000 $’000 Share of Joint Venture Profit is as follows: Revenue 32 24 Expenses 10 2 Operating Profit before Income Tax per Forde Joint Venture Statement 22 22 Total Net Income 22 22 Share of Joint Venture Assets and Liabilities is as follows: Assets - 207 Liabilities - 32 Net Assets as per Forde Joint Venture Financial Statements - 175 The Carrying Amount of the Investments in the Joint Venture Balance of Investments in Joint Venture at the Beginning of the Reporting Period 175 1,943 Share of Operating Profit from Joint Venture 22 22 Previous Year Adjustments - (90) Previous Year Legal Fee Adjustments - (1,700) Distribution from Joint Venture (197) - Balance of Investment in Joint Venture at the End of the Reporting Period - 175



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Joint Venture Name Estate Name Forde Joint Venture Forde Classification in the Balance Sheet 2017 2016 Future Joint Venture Distributions $’000 $’000 Current - 175 - 175 Contingent Liabilities The Joint Venture has no contingent liabilities. Contingent Assets The Joint Venture has no contingent assets.

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Joint Venture Name Estate Name Crace Joint Venture Crace The LDA was involved in an unincorporated joint venture during the reporting period, for the residential development of Crace. The two venture partners in the Crace Joint Venture were the LDA and Crace Developments Pty Ltd each had a 50% ownership interest and 50% voting power. The reporting date of the LDA and Crace Joint Venture is 30 June.

2017 2016 $’000 $’000 Share of Joint Venture Profit is as follows: Revenue 380 6,570 Expenses (98) 144 Operating Profit before Income Tax Per Crace Joint Venture Statement 478 6,426 Total Net Income 478 6,426 Share of Joint Venture Assets and Liabilities is as follows: Assets 455 297 Liabilities 59 72 Net Assets as per Crace Joint Venture Financial Statements 396 225 The Carrying Amount of the Investments in the Joint Venture Balance of Investments in Joint Venture at the Beginning of the Reporting Period 225 299 Share of Operating Profit from Joint Venture 478 6,426 Previous Year Adjustments (57) Distribution from Joint Venture (250) (6,500) Balance of Investment in Joint Venture at the End of the Reporting Period 396 225



49


Joint Venture Name Estate Name Crace Joint Venture Crace Classification in the Balance Sheet 2017 2016 Future Joint Venture Distributions $’000 $’000 Current 396 225 396 225 Contingent Liabilities The Joint Venture has no contingent liabilities. Contingent Assets The Joint Venture has no contingent assets.




48


Joint Venture Name Estate Name Crace Joint Venture Crace The LDA was involved in an unincorporated joint venture during the reporting period, for the residential development of Crace. The two venture partners in the Crace Joint Venture were the LDA and Crace Developments Pty Ltd each had a 50% ownership interest and 50% voting power. The reporting date of the LDA and Crace Joint Venture is 30 June.

2017 2016 $’000 $’000 Share of Joint Venture Profit is as follows: Revenue 380 6,570 Expenses (98) 144 Operating Profit before Income Tax Per Crace Joint Venture Statement 478 6,426 Total Net Income 478 6,426 Share of Joint Venture Assets and Liabilities is as follows: Assets 455 297 Liabilities 59 72 Net Assets as per Crace Joint Venture Financial Statements 396 225 The Carrying Amount of the Investments in the Joint Venture Balance of Investments in Joint Venture at the Beginning of the Reporting Period 225 299 Share of Operating Profit from Joint Venture 478 6,426 Previous Year Adjustments (57) Distribution from Joint Venture (250) (6,500) Balance of Investment in Joint Venture at the End of the Reporting Period 396 225



49


Joint Venture Name Estate Name Crace Joint Venture Crace Classification in the Balance Sheet 2017 2016 Future Joint Venture Distributions $’000 $’000 Current 396 225 396 225 Contingent Liabilities The Joint Venture has no contingent liabilities. Contingent Assets The Joint Venture has no contingent assets.

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NOTE 36 INTEREST IN A JOINT OPERATION The Australian Capital Territory (Territory) has appointed the LDA as its agent to manage its 60% interest in the West Belconnen Joint Operation, a joint operation between the Territory and Riverview Developments (ACT). The Joint Operation commenced on 21 November 2016. 2017 2016 $’000 $’000 Assets Employed in the Jointly Controlled Operation Current Assets Cash 3,965 - Receivables 218 - Total Current Assets 4,183 - Non-Current Assets Inventories 5,963 - Property, Plant and Equipment 2,436 - Intangible Assets 106 - Total Non-Current Assets 8,505 - Total Assets 12,688 - Current Liabilities Payables 14,346 - Total Current Liabilities 14,346 - Non-Current Liabilities Other Liabilities 1,068 - Total Non-Current Liabilities 1,068 - Total Liabilities 15,414 - Net Assets (2,726) - Equity Share of Operating Profit from Joint Operation (3,326) - Capital Injection 600 - Balance of Interest in the Joint Operation (2,726) -



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NOTE 37 CASH FLOW RECONCILIATION

2017 2016 $’000 $’000 (a) Reconciliation of Cash at the End of the Reporting Period in the Cash Flow Statement to the Equivalent Items in the Balance Sheet Total Cash Recorded in the Balance Sheet 191,689 283,887 Cash at the End of the Reporting Period as Recorded in the Cash Flow Statement 191,689 283,887 (b) Reconciliation of the Operating Surplus to the Net Cash Inflows From

Operating Activities

Operating Surplus 259,369 173,257 Add/(Less) Non-Cash Items Depreciation and Amortisation 436 351 Property, Plant and Equipment

998 -

Resources Received Free of Charge (47) (37) Land Transferred in Free of Charge (1,118) (11,271) Inventory Loss (Related to Land Transferred in Free of Charge) 55,255 16,605 Other Expenses 47 37 Add/(Less) Items Classified as Investing or Financing Activities Land Received as Capital Injection - (5,335) Share of Joint Venture (Profit) (444) (6,358) Cash Before Changes in Operating Assets and Liabilities 314,496 167,249 Changes in Operating Assets and Liabilities (Increase) in Receivables (28,915) (13,778) (Increase) in Inventories (9,538) 124,589 (Increase) in Land, Property, Plant and Equipment - (6,800) (Decrease) in Deferred Tax Liability (27,717) (46,241) Increase in Employee Entitlements 517 408 Increase in Payables 4,431 2,016 (Decrease)/ Increase in Provisions (1,361) 34,019 (Decrease)/Increase in National Tax Equivalents Payable (32,194) 103,322 Increase /(Decrease) in Other Liabilities 362 (67,570) Net Changes in Operating Assets and Liabilities (94,415) 129,965 Net Cash inflows from Operating Activities 220,081 297,214




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NOTE 36 INTEREST IN A JOINT OPERATION The Australian Capital Territory (Territory) has appointed the LDA as its agent to manage its 60% interest in the West Belconnen Joint Operation, a joint operation between the Territory and Riverview Developments (ACT). The Joint Operation commenced on 21 November 2016. 2017 2016 $’000 $’000 Assets Employed in the Jointly Controlled Operation Current Assets Cash 3,965 - Receivables 218 - Total Current Assets 4,183 - Non-Current Assets Inventories 5,963 - Property, Plant and Equipment 2,436 - Intangible Assets 106 - Total Non-Current Assets 8,505 - Total Assets 12,688 - Current Liabilities Payables 14,346 - Total Current Liabilities 14,346 - Non-Current Liabilities Other Liabilities 1,068 - Total Non-Current Liabilities 1,068 - Total Liabilities 15,414 - Net Assets (2,726) - Equity Share of Operating Profit from Joint Operation (3,326) - Capital Injection 600 - Balance of Interest in the Joint Operation (2,726) -



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NOTE 37 CASH FLOW RECONCILIATION

2017 2016 $’000 $’000 (a) Reconciliation of Cash at the End of the Reporting Period in the Cash Flow Statement to the Equivalent Items in the Balance Sheet Total Cash Recorded in the Balance Sheet 191,689 283,887 Cash at the End of the Reporting Period as Recorded in the Cash Flow Statement 191,689 283,887 (b) Reconciliation of the Operating Surplus to the Net Cash Inflows From

Operating Activities

Operating Surplus 259,369 173,257 Add/(Less) Non-Cash Items Depreciation and Amortisation 436 351 Property, Plant and Equipment

998 -

Resources Received Free of Charge (47) (37) Land Transferred in Free of Charge (1,118) (11,271) Inventory Loss (Related to Land Transferred in Free of Charge) 55,255 16,605 Other Expenses 47 37 Add/(Less) Items Classified as Investing or Financing Activities Land Received as Capital Injection - (5,335) Share of Joint Venture (Profit) (444) (6,358) Cash Before Changes in Operating Assets and Liabilities 314,496 167,249 Changes in Operating Assets and Liabilities (Increase) in Receivables (28,915) (13,778) (Increase) in Inventories (9,538) 124,589 (Increase) in Land, Property, Plant and Equipment - (6,800) (Decrease) in Deferred Tax Liability (27,717) (46,241) Increase in Employee Entitlements 517 408 Increase in Payables 4,431 2,016 (Decrease)/ Increase in Provisions (1,361) 34,019 (Decrease)/Increase in National Tax Equivalents Payable (32,194) 103,322 Increase /(Decrease) in Other Liabilities 362 (67,570) Net Changes in Operating Assets and Liabilities (94,415) 129,965 Net Cash inflows from Operating Activities 220,081 297,214

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NOTE 38 EVENTS OCCURRING AFTER BALANCE DATE From 1 July 2017, the LDA ceased operating and its functions transferred to the Suburban Land Agency, the City Renewal Authority and the EPSDD. The total value of net assets transferred from the LDA to the Suburban Land Agency, City Renewal Authority and EPSDD after balance date was $122.418 million.



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NOTE 39 RELATED PARTY DISCLOSURES

A related party is a person that controls or has significant influence over the reporting entity, or is a member of the Key Management Personnel (KMP) of the reporting entity or its parent entity, and includes their close family members and entities in which the KMP and/or their close family members individually or jointly have controlling interests. KMP were those persons having authority and responsibility for planning, directing and controlling the activities of the LDA, directly or indirectly. KMP of the LDA were the Portfolio Minister, Chief Executive Officer and Board of Directors. The Head of Service and the ACT Executive comprising the Cabinet Ministers are KMP of the ACT government and therefore, were related parties of the LDA. This note does not include typical citizen transactions between the KMP and LDA that occurred on terms and conditions no different to those applying to the general public. (A) CONTROLLING ENTITY The LDA was an ACT Government controlled entity. (B) KEY MANAGEMENT PERSONNEL

B.1 Compensation of Key Management Personnel Compensation of all Cabinet Ministers, including the Portfolio Minister, is disclosed in the note on related party disclosures included in the ACT Executive’s financial statements for the year ended 30 June 2017. Compensation of the Head of Service is included in the note on related party disclosures included in the CMTEDD’s financial statements for the year ended 30 June 2017. Two of the KMPs of the LDA were employees of CMTEDD and were compensated by CMTEDD. Compensation by the LDA to KMP is set out below 2017 $’000 Short-term employee benefits 558 Post employment benefits 96 Other long-term benefits 12 Board member fees 392 Total Compensation by the LDA to KMP 1,058 B.2 Transactions with Key Management Personnel There were no transactions with KMP that were material to the financial statements of the LDA.




52

NOTE 38 EVENTS OCCURRING AFTER BALANCE DATE From 1 July 2017, the LDA ceased operating and its functions transferred to the Suburban Land Agency, the City Renewal Authority and the EPSDD. The total value of net assets transferred from the LDA to the Suburban Land Agency, City Renewal Authority and EPSDD after balance date was $122.418 million.



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NOTE 39 RELATED PARTY DISCLOSURES

A related party is a person that controls or has significant influence over the reporting entity, or is a member of the Key Management Personnel (KMP) of the reporting entity or its parent entity, and includes their close family members and entities in which the KMP and/or their close family members individually or jointly have controlling interests. KMP were those persons having authority and responsibility for planning, directing and controlling the activities of the LDA, directly or indirectly. KMP of the LDA were the Portfolio Minister, Chief Executive Officer and Board of Directors. The Head of Service and the ACT Executive comprising the Cabinet Ministers are KMP of the ACT government and therefore, were related parties of the LDA. This note does not include typical citizen transactions between the KMP and LDA that occurred on terms and conditions no different to those applying to the general public. (A) CONTROLLING ENTITY The LDA was an ACT Government controlled entity. (B) KEY MANAGEMENT PERSONNEL

B.1 Compensation of Key Management Personnel Compensation of all Cabinet Ministers, including the Portfolio Minister, is disclosed in the note on related party disclosures included in the ACT Executive’s financial statements for the year ended 30 June 2017. Compensation of the Head of Service is included in the note on related party disclosures included in the CMTEDD’s financial statements for the year ended 30 June 2017. Two of the KMPs of the LDA were employees of CMTEDD and were compensated by CMTEDD. Compensation by the LDA to KMP is set out below 2017 $’000 Short-term employee benefits 558 Post employment benefits 96 Other long-term benefits 12 Board member fees 392 Total Compensation by the LDA to KMP 1,058 B.2 Transactions with Key Management Personnel There were no transactions with KMP that were material to the financial statements of the LDA.

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B3. Transactions with parties related to Key Management Personnel The following transactions that were material to the financial statements of the LDA occurred with parties related to KMP including transactions with KMP’s close family members or other related entities:

Nature of transaction Transaction value year ended

30 June 2017 $’000

Amount of receivable/(payable)

at 30 June 2017 $’000

Amount Committed at

30 June 2017 $’000

Rendering or Receiving Services Services received (aggregate) 1,2 8,880 664 575

1 The transactions were procured following ACT Government’s procurement procedures and in the normal course of the operations of the LDA. 2 Items of a similar nature have been aggregated, except where separate disclosure is necessary for understanding the effects of related party transactions on the financial statements of the LDA. No allowances for doubtful debts or bad debts expenses were recorded during the current reporting period. (C) TRANSACTIONS WITH OTHER ACT GOVERNMENT ENTITIES All transactions with ACT Government controlled entities are disclosed in the relevant notes to the financial statements of the LDA.



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NOTE 40 BUDGETARY REPORTING The following are brief explanations of major line item variances between budget estimates and actual outcomes. Variances are considered to be major variances if both of the following criteria are met: (a) The line item is a significant line item: where either the line item actual amount accounts for more than

10% of the relevant associated category (Income, Expenses and Equity totals) or more than 10% of the sub-element (e.g. Current Liabilities and Receipts from Operating Activities totals) of the financial statements; and

(b) The variances (original budget to actual) are greater than plus (+) or minus (-) 10% of the budget for the financial statement line item.

Original Actual Budget Statement of Comprehensive Income Line Items 2016-17 2016-17 (1) Variance Variance $’000 $’000 $’000 % Land Sales 534,472 629,801 (95,329) (15.14) The lower land sales was mainly due to lower than budgeted land sales in Throsby and the deferral of the sale of ARI sites to future years; partially offset by the settlement of the ACT Government office block in the Canberra City not anticipated in the budget. Supplies and Services 17,612 23,265 (5,653) (24.30) The lower supplies and services was mainly due to lower sales commission due to lower than budgeted land sales in Throsby and the deferral of the sale of ARI sites to future years and lower than budgeted pre-development activity costs. Cost of Land Sold 116,246 188,593 (72,347) (38.36) The lower cost of land sold was mainly due to the majority of 2016-17 revenue being achieved through sales of englobo, commercial, community and ARI sites which required minimum development before settlement and lower than anticipated residential land sales. Other Expenses 73,748 96,719 (22,971) (23.75) The lower other expenses was mainly due to lower than budgeted transfer of ARI assets from other government agencies free of charge and subsequent lower than anticipated inventory write down.

(1) Original Budget refers to the amounts presented to the Legislative Assembly in the original budgeted financial statements in respect of the reporting period (2016-17 Budget Statements). These amounts have not been adjusted to reflect supplementary appropriation or appropriation instruments.




54

B3. Transactions with parties related to Key Management Personnel The following transactions that were material to the financial statements of the LDA occurred with parties related to KMP including transactions with KMP’s close family members or other related entities:

Nature of transaction Transaction value year ended

30 June 2017 $’000


at 30 June 2017 $’000

Amount Committed at

30 June 2017 $’000

Rendering or Receiving Services Services received (aggregate) 1,2 8,880 664 575

1 The transactions were procured following ACT Government’s procurement procedures and in the normal course of the operations of the LDA. 2 Items of a similar nature have been aggregated, except where separate disclosure is necessary for understanding the effects of related party transactions on the financial statements of the LDA. No allowances for doubtful debts or bad debts expenses were recorded during the current reporting period. (C) TRANSACTIONS WITH OTHER ACT GOVERNMENT ENTITIES All transactions with ACT Government controlled entities are disclosed in the relevant notes to the financial statements of the LDA.



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NOTE 40 BUDGETARY REPORTING The following are brief explanations of major line item variances between budget estimates and actual outcomes. Variances are considered to be major variances if both of the following criteria are met: (a) The line item is a significant line item: where either the line item actual amount accounts for more than

10% of the relevant associated category (Income, Expenses and Equity totals) or more than 10% of the sub-element (e.g. Current Liabilities and Receipts from Operating Activities totals) of the financial statements; and

(b) The variances (original budget to actual) are greater than plus (+) or minus (-) 10% of the budget for the financial statement line item.

Original Actual Budget Statement of Comprehensive Income Line Items 2016-17 2016-17 (1) Variance Variance $’000 $’000 $’000 % Land Sales 534,472 629,801 (95,329) (15.14) The lower land sales was mainly due to lower than budgeted land sales in Throsby and the deferral of the sale of ARI sites to future years; partially offset by the settlement of the ACT Government office block in the Canberra City not anticipated in the budget. Supplies and Services 17,612 23,265 (5,653) (24.30) The lower supplies and services was mainly due to lower sales commission due to lower than budgeted land sales in Throsby and the deferral of the sale of ARI sites to future years and lower than budgeted pre-development activity costs. Cost of Land Sold 116,246 188,593 (72,347) (38.36) The lower cost of land sold was mainly due to the majority of 2016-17 revenue being achieved through sales of englobo, commercial, community and ARI sites which required minimum development before settlement and lower than anticipated residential land sales. Other Expenses 73,748 96,719 (22,971) (23.75) The lower other expenses was mainly due to lower than budgeted transfer of ARI assets from other government agencies free of charge and subsequent lower than anticipated inventory write down.

(1) Original Budget refers to the amounts presented to the Legislative Assembly in the original budgeted financial statements in respect of the reporting period (2016-17 Budget Statements). These amounts have not been adjusted to reflect supplementary appropriation or appropriation instruments.

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NOTE 40 BUDGETARY REPORTING – CONTINUED

Original Actual Budget Balance Sheet Line Items 2016-17 2016-17 (1) Variance Variance $’000 $’000 $’000 % Current Inventories 125,324 204,422 (79,098) (38.69) The lower current inventories was mainly due to lower than budgeted development activity in Taylor, Moncrieff, Throsby and Kingston Foreshore. Non-Current Receivables 39,065 10,590 28,475 268.89 The higher non-current receivables balance was due to higher than budgeted infrastructure assets receivable and unbudgeted loan provided to the West Belconnen Joint Operation. Non-Current Inventories 127,485 172,073 (44,588) (25.91) The lower non-current inventories were mainly due to lower than budgeted development activity in Taylor, Moncrieff, Throsby and Kingston Foreshore. Property, Plant and Equipment 42,255 3,181 39,074 1,228.36 The higher balance was due to unbudgeted rural land purchases, and the LDA’s share of fixed assets of the West Belconnen Joint Operation. Current Payables 117,129 28,288 88,841 314.06 The higher current payables were mainly due to higher than anticipated payables to the EPSDD for land developed or yet to be developed, higher than budgeted capital distribution payable to CMTEDD following the transfer of Red Hill Flats to the LDA as a capital injection and higher than budgeted GST payable to the ATO.

Current Other Liabilities 108,190 262,695 (154,505) (58.82) The lower current other liabilities was mainly due to lower than budgeted final dividend payable as the result of a higher than budgeted interim dividend payment.

Non-Current Payables 12,927 - 12,927 # The higher non-current payables was due to revised land valuations for Taylor and Throsby to take into consideration the urban overlay which existed when the land transferred to the LDA. This was not anticipated in the budget.

(1) Original Budget refers to the amounts presented to the Legislative Assembly in the original budgeted financial statements in respect of the reporting period (2016-17 Budget Statements). These amounts have not been adjusted to reflect supplementary appropriation or appropriation instruments. Note: # in the Line Item Variance % column represents a variance that is greater than 999 per cent or less than -999 per cent.



57

NOTE 40 BUDGETARY REPORTING - CONTINUED

Original Actual Budget Balance Sheet Line Items - Continued 2016-17 2016-17 (1) Variance Variance $’000 $’000 $’000 % Non-Current Other Provisions 70,715 48,246 22,469 46.57 The higher non-current other provisions was due to higher than expected provision for transfers of infrastructure assets to TCCS and Icon Water as the result of higher than expected infrastructure assets receivable for land sales to third parties which occurred in 2016-17 and higher provision for project completion. See also Note 28: ‘Other Provisions’.

National Tax Equivalents Payable 48,103 72,441 (24,338) (33.60) The lower National Tax Equivalent payable was due to the deferred tax liability being de-recognised from the t Balance Sheet resulting in a decrease in the National Tax Equivalents expenses on the Statement of Comprehensive Income. Deferred Tax Liability - 37,848 (37,848) (100.00) The lower deferred tax liability was due to de-recognition of the deferred tax liability from the Balance Sheet, resulting in a decrease in the National Tax Equivalents expenses on the Statement of Comprehensive Income. This was not anticipated in the budget. Statement of Changes in Equity These line items are covered in the other financial statements. (1) Original Budget refers to the amounts presented to the Legislative Assembly in the original budgeted financial statements in respect of the reporting period (2016-17 Budget Statements). These amounts have not been adjusted to reflect supplementary appropriation or appropriation instruments.




56


Original Actual Budget Balance Sheet Line Items 2016-17 2016-17 (1) Variance Variance $’000 $’000 $’000 % Current Inventories 125,324 204,422 (79,098) (38.69) The lower current inventories was mainly due to lower than budgeted development activity in Taylor, Moncrieff, Throsby and Kingston Foreshore. Non-Current Receivables 39,065 10,590 28,475 268.89 The higher non-current receivables balance was due to higher than budgeted infrastructure assets receivable and unbudgeted loan provided to the West Belconnen Joint Operation. Non-Current Inventories 127,485 172,073 (44,588) (25.91) The lower non-current inventories were mainly due to lower than budgeted development activity in Taylor, Moncrieff, Throsby and Kingston Foreshore. Property, Plant and Equipment 42,255 3,181 39,074 1,228.36 The higher balance was due to unbudgeted rural land purchases, and the LDA’s share of fixed assets of the West Belconnen Joint Operation. Current Payables 117,129 28,288 88,841 314.06 The higher current payables were mainly due to higher than anticipated payables to the EPSDD for land developed or yet to be developed, higher than budgeted capital distribution payable to CMTEDD following the transfer of Red Hill Flats to the LDA as a capital injection and higher than budgeted GST payable to the ATO.

Current Other Liabilities 108,190 262,695 (154,505) (58.82) The lower current other liabilities was mainly due to lower than budgeted final dividend payable as the result of a higher than budgeted interim dividend payment.

Non-Current Payables 12,927 - 12,927 # The higher non-current payables was due to revised land valuations for Taylor and Throsby to take into consideration the urban overlay which existed when the land transferred to the LDA. This was not anticipated in the budget.




57

NOTE 40 BUDGETARY REPORTING - CONTINUED

Original Actual Budget Balance Sheet Line Items - Continued 2016-17 2016-17 (1) Variance Variance $’000 $’000 $’000 % Non-Current Other Provisions 70,715 48,246 22,469 46.57 The higher non-current other provisions was due to higher than expected provision for transfers of infrastructure assets to TCCS and Icon Water as the result of higher than expected infrastructure assets receivable for land sales to third parties which occurred in 2016-17 and higher provision for project completion. See also Note 28: ‘Other Provisions’.

National Tax Equivalents Payable 48,103 72,441 (24,338) (33.60) The lower National Tax Equivalent payable was due to the deferred tax liability being de-recognised from the t Balance Sheet resulting in a decrease in the National Tax Equivalents expenses on the Statement of Comprehensive Income. Deferred Tax Liability - 37,848 (37,848) (100.00) The lower deferred tax liability was due to de-recognition of the deferred tax liability from the Balance Sheet, resulting in a decrease in the National Tax Equivalents expenses on the Statement of Comprehensive Income. This was not anticipated in the budget. Statement of Changes in Equity These line items are covered in the other financial statements. (1) Original Budget refers to the amounts presented to the Legislative Assembly in the original budgeted financial statements in respect of the reporting period (2016-17 Budget Statements). These amounts have not been adjusted to reflect supplementary appropriation or appropriation instruments.

127



58


Original Actual Budget Cash Flow Statement Line Items 2016-17 2016-17 (1) Variance Variance $’000 $’000 $’000 % Land Sales 510,564 631,284 (120,720) (19.12) The lower than budgeted cash from land sales was mainly due to lower than budgeted land sales. Development Costs 100,855 249,965 (149,110) (59.65) The lower development costs was mainly due to lower than budgeted development activity in Taylor, Moncrieff, Throsby, Kingston Foreshore and Denman Prospect.

National Tax Equivalent Payments 117,795 79,358 38,437 48.43 The higher cash payment on National Tax Equivalent was due to higher than budgeted 2015-16 final tax payment in 2016-17 and higher than budgeted operating result thus higher tax instalment payments were made.

Purchase of Property, Plant and Equipment 17,744 - 17,744 # Due to higher unbudgeted purchases for rural land and the LDA’s share of property, plant and equipment purchases of the West Belconnen Joint Operation.

Dividend Paid 260,516 173,376 87,140 50.26 The interim dividend paid for 2016-17 was higher than budgeted as a result of the 2016-17 operating surplus being higher than budget.




59

NOTE 41 THIRD PARTY MONIES Third Party Monies

The contracts for the sale of land, developed by the West Belconnen Joint Operation, was between the LDA as the ‘seller’ and a third party as the ‘buyer’. The initial holding deposits received from buyers were held in a trust account, established under the name of Riverview Sales and Marketing, which is a registered real estate agent. As at 30 June 2017, the balance of holding deposits held in the trust account was $130,340. The LDA’s portion of the holding deposits was $78,200.




58


Original Actual Budget Cash Flow Statement Line Items 2016-17 2016-17 (1) Variance Variance $’000 $’000 $’000 % Land Sales 510,564 631,284 (120,720) (19.12) The lower than budgeted cash from land sales was mainly due to lower than budgeted land sales. Development Costs 100,855 249,965 (149,110) (59.65) The lower development costs was mainly due to lower than budgeted development activity in Taylor, Moncrieff, Throsby, Kingston Foreshore and Denman Prospect.

National Tax Equivalent Payments 117,795 79,358 38,437 48.43 The higher cash payment on National Tax Equivalent was due to higher than budgeted 2015-16 final tax payment in 2016-17 and higher than budgeted operating result thus higher tax instalment payments were made.

Purchase of Property, Plant and Equipment 17,744 - 17,744 # Due to higher unbudgeted purchases for rural land and the LDA’s share of property, plant and equipment purchases of the West Belconnen Joint Operation.

Dividend Paid 260,516 173,376 87,140 50.26 The interim dividend paid for 2016-17 was higher than budgeted as a result of the 2016-17 operating surplus being higher than budget.




59

NOTE 41 THIRD PARTY MONIES Third Party Monies

The contracts for the sale of land, developed by the West Belconnen Joint Operation, was between the LDA as the ‘seller’ and a third party as the ‘buyer’. The initial holding deposits received from buyers were held in a trust account, established under the name of Riverview Sales and Marketing, which is a registered real estate agent. As at 30 June 2017, the balance of holding deposits held in the trust account was $130,340. The LDA’s portion of the holding deposits was $78,200.

129

Land Development Agency APPENDIX A - BASIS OF PREPARATION OF THE FINANCIAL STATEMENTS

Forms Part of Note 2 of the Financial Statements For the Year Ended 30 June 2017

60

APPENDIX A - BASIS OF PREPARATION OF THE FINANCIAL STATEMENTS

LEGISLATIVE REQUIREMENT The Financial Management Act 1996 (FMA) requires the preparation of annual financial statements for Territory authorities. The FMA and the Financial Management Guidelines issued under the Act, requires the LDA's financial statements to include:

• Statement of Comprehensive Income for the reporting period;

• Balance Sheet at the end of the reporting period;

• Statement of Changes in Equity for the reporting period;

• Cash Flow Statement for the reporting period;

• the significant accounting policies adopted for the reporting period; and

• other statements as necessary to fairly reflect the financial operations of the LDA during the reporting period and its financial position at the end of the reporting period.

These general-purpose financial statements have been prepared to comply with Australian Accounting Standards as required by the FMA. These financial statements have been prepared in accordance with:

(i) Australian Accounting Standards;

(ii) International Financial Reporting Standards; and

(iii) ACT Accounting and Disclosure Policies. ACCRUAL ACCOUNTING 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 according to the historical cost convention, except for assets such as those included in property, plant and equipment valued at fair value in accordance with the valuation policies applicable to the LDA during the reporting period.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. CURRENCY These financial statements are presented in Australian dollars, which is the LDA's functional currency. INDIVIDUAL REPORTING ENTITY The LDA was an individual reporting entity. REPORTING PERIOD These financial statements state the financial performance, changes in equity and cash flows of the LDA for the year ended 30 June 2017 together with the financial position of the LDA as at 30 June 2017.



61

APPENDIX A - BASIS OF PREPARATION OF THE FINANCIAL STATEMENTS - CONTINUED COMPARATIVES FIGURES Budget Figures To facilitate a comparison with the Budget Papers, as required by the FMA, budget information for 2016-17 has been presented in the financial statements. Budget numbers in the financial statements are the original budget numbers that appear in the 2016-17 Budget Papers. Prior Year Comparatives Comparative information has been disclosed in respect of the previous period for amounts reported in the financial statements, except where an Australian Accounting Standard does not require comparative information to be disclosed. Where the presentation or classification of items in the financial statements is amended, the comparative amounts have been reclassified where practical. Where a reclassification has occurred, the nature, amount and reason for the reclassification is provided. ROUNDING 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. Tables and notes may not add due to rounding. GOING CONCERN





60

APPENDIX A - BASIS OF PREPARATION OF THE FINANCIAL STATEMENTS

LEGISLATIVE REQUIREMENT The Financial Management Act 1996 (FMA) requires the preparation of annual financial statements for Territory authorities. The FMA and the Financial Management Guidelines issued under the Act, requires the LDA's financial statements to include:

• Statement of Comprehensive Income for the reporting period;

• Balance Sheet at the end of the reporting period;

• Statement of Changes in Equity for the reporting period;

• Cash Flow Statement for the reporting period;

• the significant accounting policies adopted for the reporting period; and

• other statements as necessary to fairly reflect the financial operations of the LDA during the reporting period and its financial position at the end of the reporting period.

These general-purpose financial statements have been prepared to comply with Australian Accounting Standards as required by the FMA. These financial statements have been prepared in accordance with:

(i) Australian Accounting Standards;

(ii) International Financial Reporting Standards; and

(iii) ACT Accounting and Disclosure Policies. ACCRUAL ACCOUNTING 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 according to the historical cost convention, except for assets such as those included in property, plant and equipment valued at fair value in accordance with the valuation policies applicable to the LDA during the reporting period.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. CURRENCY These financial statements are presented in Australian dollars, which is the LDA's functional currency. INDIVIDUAL REPORTING ENTITY The LDA was an individual reporting entity. REPORTING PERIOD These financial statements state the financial performance, changes in equity and cash flows of the LDA for the year ended 30 June 2017 together with the financial position of the LDA as at 30 June 2017.



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APPENDIX A - BASIS OF PREPARATION OF THE FINANCIAL STATEMENTS - CONTINUED COMPARATIVES FIGURES Budget Figures To facilitate a comparison with the Budget Papers, as required by the FMA, budget information for 2016-17 has been presented in the financial statements. Budget numbers in the financial statements are the original budget numbers that appear in the 2016-17 Budget Papers. Prior Year Comparatives Comparative information has been disclosed in respect of the previous period for amounts reported in the financial statements, except where an Australian Accounting Standard does not require comparative information to be disclosed. Where the presentation or classification of items in the financial statements is amended, the comparative amounts have been reclassified where practical. Where a reclassification has occurred, the nature, amount and reason for the reclassification is provided. ROUNDING 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. Tables and notes may not add due to rounding. GOING CONCERN


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Land Development Agency APPENDIX B - SIGNIFICANT ACCOUNTING POLICIES Forms Part of Note 2 of the Financial Statements


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APPENDIX B - SIGNIFICANT ACCOUNTING POLICIES SIGNIFICANT ACCOUNTING POLICIES – INCOME REVENUE RECOGNITION Revenue is recognised at the fair value of the consideration received or receivable in the Statement of Comprehensive Income. In addition the following specific recognition criteria must also be met before revenue is recognised. NOTE 4 LAND SALES Land sales revenue is recognised when the significant risks and rewards of the sale of land are transferred to the purchaser. Whilst the point of recognition for one sale may differ from another depending on the individual terms of each contract of sale, in most cases, sales completed via auction, direct grant, ballot or over the counter will be recognised on settlement. Sales under the Land Rent Scheme are recognised on settlement, at which point the LDA raised an invoice to the Chief Minister, Treasury and Economic Development Directorate (CMTEDD) to facilitate a payment for compensation for foregone land revenue. Should sale proceeds be received by instalments over more than 12 months, the initial amount to be recorded as revenue is the fair value of the consideration, calculated by discounting the contracted value (nominal value) using a prevailing interest rate for a similar instrument of an issuer with a similar credit rating to the LDA. The difference which arises 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. Proceeds from land sales may comprise both cash related transactions and the value of infrastructure required to be provided by the purchaser as part of the Deed of Agreement associated with the sale of land. The Right to Receive Infrastructure from the purchaser is recognised as revenue and a receivable at the time of settlement. NOTE 5 USER CHARGES A user charge is revenue directly related to the sale of goods or provision of services. It is generated by consumer demand and is non-regulatory in nature. User charges revenue is recognised when the goods are provided or when the fee in respect of services provided is receivable. NOTE 6 INTEREST Interest revenue is recognised using the effective interest method.



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APPENDIX B - SIGNIFICANT ACCOUNTING POLICIES - CONTINUED NOTE 8 RESOURCES RECEIVED FREE OF CHARGE Resources received free of charge or provided free of charge are recorded as a revenue or as an expense in the Statement of Comprehensive Income at fair value or an asset in the Balance Sheet. The revenue is separately disclosed under resources received free of charge, with the expense being recorded in the line item to which it relates. Goods and services received free of charge from ACT Government agencies are recorded as resources received free of charge, where as goods and services received free of charge from entities external to the ACT Government are recorded as donations. Services that are received free of charge are only recorded in the Statement of Comprehensive Income if they can be reliably measured and would have been purchased if not provided to the LDA free of charge. The LDA receives some Territory-owned land occasionally from other ACT Government agencies free of charge, which it prepares for sale on behalf of the Territory. SIGNIFICANT ACCOUNTING POLICIES – EXPENSES NOTE 10 EMPLOYEE EXPENSES Employee benefits include:

• Short-term employee benefits such as wages and salaries, annual leave loading, and applicable on-costs, if expected to be settled wholly before 12 months (see Appendix B - Note 27 Employee Benefits if longer than 12 months) after the end of the annual reporting period in which the employees render the related services;

• Other long-term benefits such as long service leave and annual leave; and

• Termination benefits.

On-costs include annual leave, long service leave, superannuation and other costs that are incurred when employees take annual leave and long service leave. NOTE 11 SUPERANNUATION EXPENSES The LDA made fortnightly payments to the Territory Banking Account to extinguish the LDA’s superannuation liability for employees who are members of the Commonwealth Superannuation Scheme (CSS) and the Public Sector Superannuation Scheme (PSS). This payment did not include the CSS and PSS productivity component which was paid directly to the Commonwealth Superannuation Corporation (CSC) by the LDA. Superannuation payments were also made directly to superannuation funds for those members of the Public Sector who are part of superannuation accumulation schemes. This includes the Public Sector Superannuation Scheme Accumulation Plan (PSSAP) and schemes of employee choice. The LDA’s accruing superannuation liability obligations were expensed as they are incurred.




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APPENDIX B - SIGNIFICANT ACCOUNTING POLICIES SIGNIFICANT ACCOUNTING POLICIES – INCOME REVENUE RECOGNITION Revenue is recognised at the fair value of the consideration received or receivable in the Statement of Comprehensive Income. In addition the following specific recognition criteria must also be met before revenue is recognised. NOTE 4 LAND SALES Land sales revenue is recognised when the significant risks and rewards of the sale of land are transferred to the purchaser. Whilst the point of recognition for one sale may differ from another depending on the individual terms of each contract of sale, in most cases, sales completed via auction, direct grant, ballot or over the counter will be recognised on settlement. Sales under the Land Rent Scheme are recognised on settlement, at which point the LDA raised an invoice to the Chief Minister, Treasury and Economic Development Directorate (CMTEDD) to facilitate a payment for compensation for foregone land revenue. Should sale proceeds be received by instalments over more than 12 months, the initial amount to be recorded as revenue is the fair value of the consideration, calculated by discounting the contracted value (nominal value) using a prevailing interest rate for a similar instrument of an issuer with a similar credit rating to the LDA. The difference which arises 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. Proceeds from land sales may comprise both cash related transactions and the value of infrastructure required to be provided by the purchaser as part of the Deed of Agreement associated with the sale of land. The Right to Receive Infrastructure from the purchaser is recognised as revenue and a receivable at the time of settlement. NOTE 5 USER CHARGES A user charge is revenue directly related to the sale of goods or provision of services. It is generated by consumer demand and is non-regulatory in nature. User charges revenue is recognised when the goods are provided or when the fee in respect of services provided is receivable. NOTE 6 INTEREST Interest revenue is recognised using the effective interest method.



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APPENDIX B - SIGNIFICANT ACCOUNTING POLICIES - CONTINUED NOTE 8 RESOURCES RECEIVED FREE OF CHARGE Resources received free of charge or provided free of charge are recorded as a revenue or as an expense in the Statement of Comprehensive Income at fair value or an asset in the Balance Sheet. The revenue is separately disclosed under resources received free of charge, with the expense being recorded in the line item to which it relates. Goods and services received free of charge from ACT Government agencies are recorded as resources received free of charge, where as goods and services received free of charge from entities external to the ACT Government are recorded as donations. Services that are received free of charge are only recorded in the Statement of Comprehensive Income if they can be reliably measured and would have been purchased if not provided to the LDA free of charge. The LDA receives some Territory-owned land occasionally from other ACT Government agencies free of charge, which it prepares for sale on behalf of the Territory. SIGNIFICANT ACCOUNTING POLICIES – EXPENSES NOTE 10 EMPLOYEE EXPENSES Employee benefits include:

• Short-term employee benefits such as wages and salaries, annual leave loading, and applicable on-costs, if expected to be settled wholly before 12 months (see Appendix B - Note 27 Employee Benefits if longer than 12 months) after the end of the annual reporting period in which the employees render the related services;

• Other long-term benefits such as long service leave and annual leave; and

• Termination benefits.

On-costs include annual leave, long service leave, superannuation and other costs that are incurred when employees take annual leave and long service leave. NOTE 11 SUPERANNUATION EXPENSES The LDA made fortnightly payments to the Territory Banking Account to extinguish the LDA’s superannuation liability for employees who are members of the Commonwealth Superannuation Scheme (CSS) and the Public Sector Superannuation Scheme (PSS). This payment did not include the CSS and PSS productivity component which was paid directly to the Commonwealth Superannuation Corporation (CSC) by the LDA. Superannuation payments were also made directly to superannuation funds for those members of the Public Sector who are part of superannuation accumulation schemes. This includes the Public Sector Superannuation Scheme Accumulation Plan (PSSAP) and schemes of employee choice. The LDA’s accruing superannuation liability obligations were expensed as they are incurred.

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APPENDIX B - SIGNIFICANT ACCOUNTING POLICIES - CONTINUED NOTE 11 SUPERANNUATION EXPENSES - CONTINUED Superannuation Liability Recognition The superannuation liability for the Territory’s relevant share of the employer financed portion of entitlements of all employees participating in the CSS and PSS schemes who became Territory employees with effect on or after 1 July 1989 is recognised at a total Territory level in the Chief Minister, Treasury and Economic Development Directorate’s Superannuation Provision Account. The ACT Government reimburses the CSC annually for the Territory’s share of employer superannuation benefits paid to entitled Territory employees who are, or were, members of the CSS and PSS. These reimbursement payments are made from the Superannuation Provision Account. NOTE 12 SUPPLIES AND SERVICES Insurance Major risks were insured through the ACT Insurance Authority. The excess payable, under this arrangement, varied depending on each class of insurance held. Operating Leases Operating leases did not transfer to the LDA substantially all of the risks and rewards incidental to ownership of the asset under an operating lease. Operating lease payments are recorded as an expense in the Statement of Comprehensive Income on a straight-line basis over the term of the lease. Contractors and Consultants Contractors and consultants include financial management and accounting services and advice, project management services, legal services (excluding conveyancing), valuations and other professional services. This also includes pre-development expenditure such as due diligence. NOTE 13 DEPRECIATION AND AMORTISATION Amortisation is used in relation to intangible assets and depreciation is applied to physical assets such as buildings, leasehold improvements, and plant and equipment. Land and community and heritage assets have an unlimited useful life and are therefore not depreciated. Leasehold improvements are depreciated over the estimated useful life of each asset, or the unexpired period of the relevant lease, whichever is shorter. All depreciation and amortisation is calculated after first deducting any residual values, which remain for each asset.



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APPENDIX B - SIGNIFICANT ACCOUNTING POLICIES - CONTINUED NOTE 13 DEPRECIATION AND AMORTISATION - CONTINUED Depreciation and amortisation for non-current assets is determined as follows:

Class of Asset Depreciation/Amortisation Useful Life* (Years) Buildings Straight Line 10-50 Leasehold Improvements Straight Line 5 Plant and Equipment Straight Line 3-5 Intangibles Straight Line 2-5 Land improvements are included with buildings. * Useful life commences when an asset is first acquired. When an asset is re-valued, it is depreciated or amortised over the remaining useful life of that asset. NOTE 15 COST OF LAND SOLD Land Transfers and Acquisitions Unleased Territory land is acquired at market value and the LDA made payment to the EPSDD when the land is sold to third parties. The LDA also purchased land from other ACT Government agencies and third parties at market value as required. It also received land for no cost through transfers from other ACT Government agencies. The cost of land was expensed in the Statement of Comprehensive Income when the land is settled. On a bi-annual basis, the LDA undertook a detailed review of its estimated project costs to determine remaining funding requirements. During this process estimates of project contingency costs were also reviewed. Any adjustments as a result of the Bi-Annual Reviews will have an impact on the value of inventory and cost of land sold. NOTE 17 OTHER EXPENSES Inventory Loss Inventories held for sale are valued at the lower of cost and net realisable value. The difference between the cost and net realisable value is recorded as an Inventory Loss. This included the revaluation of land following the transfer from other ACT Government agencies; inventory write-down of pre-development activity costs that have previously been recognised as inventory and inventory costs written off for discontinued projects where the criteria for an asset is no longer met due to the lack of expected future economic benefit.




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APPENDIX B - SIGNIFICANT ACCOUNTING POLICIES - CONTINUED NOTE 11 SUPERANNUATION EXPENSES - CONTINUED Superannuation Liability Recognition The superannuation liability for the Territory’s relevant share of the employer financed portion of entitlements of all employees participating in the CSS and PSS schemes who became Territory employees with effect on or after 1 July 1989 is recognised at a total Territory level in the Chief Minister, Treasury and Economic Development Directorate’s Superannuation Provision Account. The ACT Government reimburses the CSC annually for the Territory’s share of employer superannuation benefits paid to entitled Territory employees who are, or were, members of the CSS and PSS. These reimbursement payments are made from the Superannuation Provision Account. NOTE 12 SUPPLIES AND SERVICES Insurance Major risks were insured through the ACT Insurance Authority. The excess payable, under this arrangement, varied depending on each class of insurance held. Operating Leases Operating leases did not transfer to the LDA substantially all of the risks and rewards incidental to ownership of the asset under an operating lease. Operating lease payments are recorded as an expense in the Statement of Comprehensive Income on a straight-line basis over the term of the lease. Contractors and Consultants Contractors and consultants include financial management and accounting services and advice, project management services, legal services (excluding conveyancing), valuations and other professional services. This also includes pre-development expenditure such as due diligence. NOTE 13 DEPRECIATION AND AMORTISATION Amortisation is used in relation to intangible assets and depreciation is applied to physical assets such as buildings, leasehold improvements, and plant and equipment. Land and community and heritage assets have an unlimited useful life and are therefore not depreciated. Leasehold improvements are depreciated over the estimated useful life of each asset, or the unexpired period of the relevant lease, whichever is shorter. All depreciation and amortisation is calculated after first deducting any residual values, which remain for each asset.



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APPENDIX B - SIGNIFICANT ACCOUNTING POLICIES - CONTINUED NOTE 13 DEPRECIATION AND AMORTISATION - CONTINUED Depreciation and amortisation for non-current assets is determined as follows:

Class of Asset Depreciation/Amortisation Useful Life* (Years) Buildings Straight Line 10-50 Leasehold Improvements Straight Line 5 Plant and Equipment Straight Line 3-5 Intangibles Straight Line 2-5 Land improvements are included with buildings. * Useful life commences when an asset is first acquired. When an asset is re-valued, it is depreciated or amortised over the remaining useful life of that asset. NOTE 15 COST OF LAND SOLD Land Transfers and Acquisitions Unleased Territory land is acquired at market value and the LDA made payment to the EPSDD when the land is sold to third parties. The LDA also purchased land from other ACT Government agencies and third parties at market value as required. It also received land for no cost through transfers from other ACT Government agencies. The cost of land was expensed in the Statement of Comprehensive Income when the land is settled. On a bi-annual basis, the LDA undertook a detailed review of its estimated project costs to determine remaining funding requirements. During this process estimates of project contingency costs were also reviewed. Any adjustments as a result of the Bi-Annual Reviews will have an impact on the value of inventory and cost of land sold. NOTE 17 OTHER EXPENSES Inventory Loss Inventories held for sale are valued at the lower of cost and net realisable value. The difference between the cost and net realisable value is recorded as an Inventory Loss. This included the revaluation of land following the transfer from other ACT Government agencies; inventory write-down of pre-development activity costs that have previously been recognised as inventory and inventory costs written off for discontinued projects where the criteria for an asset is no longer met due to the lack of expected future economic benefit.

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APPENDIX B - SIGNIFICANT ACCOUNTING POLICIES – CONTINUED NOTE 18 WAIVERS, IMPAIRMENT LOSSES AND WRITE-OFFS Waivers Debts are expensed during the year in which the right to payment was waived. Impairment Losses - Assets Impairment losses of assets include: land, buildings, heritage assets, plant and equipment, leasehold improvements and intangible assets. Assets are reviewed for indications of impairment to account for changes to its condition or operating environment that could impact future economic benefits that can be derived from its use. Impairment Losses and Write-Offs - Receivables The allowance for impairment of receivables represents the amount of trade receivables the LDA estimated would not be collected. The allowance for impairment losses was based on objective evidence and a review of overdue balances. NOTE 20 NATIONAL TAX EQUIVALENTS Taxation The LDA was registered with the National Tax Equivalent Regime, and was required to calculate income tax in accordance with the Income Tax Assessment Act 1997 and to account for the resulting amounts under the requirements of Australian Accounting Standard AASB 112 ‘Income Taxes’. The charge for the current national tax equivalent expense is based on the surplus/(deficit) for the year adjusted for any non-assessable or non-deductible items. It is calculated using the tax rates that have been enacted or are substantially enacted by the balance date. Deferred tax is accounted for using the balance sheet liability method in respect of temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. No deferred income tax will be recognised from the initial recognition of an asset or liability, excluding a business combination, where there is no effect on accounting or taxable surplus or deficit. Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is realised or the liability settled. Deferred tax is credited in the Statement of Comprehensive Income except where it relates to items that may be credited directly to equity, in which case the deferred tax is adjusted directly against equity. Deferred income tax assets are recognised to the extent that it is probable that future tax profits will be available against which deductible temporary differences can be utilised. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised. The LDA ceased operating as a separate entity from 1 July 2017. The deferred tax liability has been de-recognised from the Balance Sheet, resulting in a decrease in the National Tax Equivalents expenses on the Statement of Comprehensive Income.



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APPENDIX B - SIGNIFICANT ACCOUNTING POLICIES – CONTINUED NOTE 20 NATIONAL TAX EQUIVALENTS - CONTINUED The LDA applied the margin scheme for land which was improved at the date of sale, which allowed the sellers of real property to pay Goods and Services Tax (GST) equal to one-eleventh of the 'margin' rather than one-eleventh of the sale price. The 'margin' is generally the difference between the sale price and a valuation of the property at the relevant date. Where permitted, the LDA sold unimproved land ‘GST-Free’ consistent with the GST-free supply provisions of A New Tax System (Goods and Services Tax) Act 1999. SIGNIFICANT ACCOUNTING POLICIES – ASSETS ASSETS - CURRENT AND NON-CURRENT Assets are classified as current or non-current in the Balance Sheet and relevant notes. Assets are classified as current where they are expected to be realised within 12 months after the reporting date. Assets, which do not fall within the current classification, are classified as non-current.

NOTE 21 CASH Cash includes cash at bank and cash on hand. NOTE 22 RECEIVABLES Receivables include the Right to Receive Infrastructure, Trade Receivables, Deferred Payment Receivables, Accrued Revenue and Goods and Services Tax Refunds Due. Right to Receive Infrastructure The sale of land by the LDA may have involved the right to receive infrastructure assets (such as roads, services and landscaping) required to be constructed by the purchaser as part of the sale conditions. Upon its completion and handover to the LDA by the purchaser, the infrastructure works are transferred to the Transport Canberra and City Services Directorate (TCCS) and Icon Water. At contract settlement, the LDA recognised the value of the infrastructure to be developed as a receivable. Trade Receivables Trade Receivables arise in the normal course of providing goods and services to other agencies and the public. Trade Receivables are payable with 30 days after the goods or services have been provided under a contractual arrangement and in accordance with the terms and conditions of that arrangement. Accounts receivable (including trade receivables and other trade receivables) are initially recognised at fair value and are subsequently measured at amortised cost, with any adjustments to the carrying amount being recorded in the Statement of Comprehensive Income. During 2016-17, there was an unsecured loan provided to the West Belconnen Joint Operation to fund project activities. Interest was payable at the Bank Bill Swap Rate plus 3 per cent. At 30 June 2017, the balance was $9.371 million and is included in the Loan Receivable from the West Belconnen Joint Operation.




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APPENDIX B - SIGNIFICANT ACCOUNTING POLICIES – CONTINUED NOTE 18 WAIVERS, IMPAIRMENT LOSSES AND WRITE-OFFS Waivers Debts are expensed during the year in which the right to payment was waived. Impairment Losses - Assets Impairment losses of assets include: land, buildings, heritage assets, plant and equipment, leasehold improvements and intangible assets. Assets are reviewed for indications of impairment to account for changes to its condition or operating environment that could impact future economic benefits that can be derived from its use. Impairment Losses and Write-Offs - Receivables The allowance for impairment of receivables represents the amount of trade receivables the LDA estimated would not be collected. The allowance for impairment losses was based on objective evidence and a review of overdue balances. NOTE 20 NATIONAL TAX EQUIVALENTS Taxation The LDA was registered with the National Tax Equivalent Regime, and was required to calculate income tax in accordance with the Income Tax Assessment Act 1997 and to account for the resulting amounts under the requirements of Australian Accounting Standard AASB 112 ‘Income Taxes’. The charge for the current national tax equivalent expense is based on the surplus/(deficit) for the year adjusted for any non-assessable or non-deductible items. It is calculated using the tax rates that have been enacted or are substantially enacted by the balance date. Deferred tax is accounted for using the balance sheet liability method in respect of temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. No deferred income tax will be recognised from the initial recognition of an asset or liability, excluding a business combination, where there is no effect on accounting or taxable surplus or deficit. Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is realised or the liability settled. Deferred tax is credited in the Statement of Comprehensive Income except where it relates to items that may be credited directly to equity, in which case the deferred tax is adjusted directly against equity. Deferred income tax assets are recognised to the extent that it is probable that future tax profits will be available against which deductible temporary differences can be utilised. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised. The LDA ceased operating as a separate entity from 1 July 2017. The deferred tax liability has been de-recognised from the Balance Sheet, resulting in a decrease in the National Tax Equivalents expenses on the Statement of Comprehensive Income.



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APPENDIX B - SIGNIFICANT ACCOUNTING POLICIES – CONTINUED NOTE 20 NATIONAL TAX EQUIVALENTS - CONTINUED The LDA applied the margin scheme for land which was improved at the date of sale, which allowed the sellers of real property to pay Goods and Services Tax (GST) equal to one-eleventh of the 'margin' rather than one-eleventh of the sale price. The 'margin' is generally the difference between the sale price and a valuation of the property at the relevant date. Where permitted, the LDA sold unimproved land ‘GST-Free’ consistent with the GST-free supply provisions of A New Tax System (Goods and Services Tax) Act 1999. SIGNIFICANT ACCOUNTING POLICIES – ASSETS ASSETS - CURRENT AND NON-CURRENT Assets are classified as current or non-current in the Balance Sheet and relevant notes. Assets are classified as current where they are expected to be realised within 12 months after the reporting date. Assets, which do not fall within the current classification, are classified as non-current.

NOTE 21 CASH Cash includes cash at bank and cash on hand. NOTE 22 RECEIVABLES Receivables include the Right to Receive Infrastructure, Trade Receivables, Deferred Payment Receivables, Accrued Revenue and Goods and Services Tax Refunds Due. Right to Receive Infrastructure The sale of land by the LDA may have involved the right to receive infrastructure assets (such as roads, services and landscaping) required to be constructed by the purchaser as part of the sale conditions. Upon its completion and handover to the LDA by the purchaser, the infrastructure works are transferred to the Transport Canberra and City Services Directorate (TCCS) and Icon Water. At contract settlement, the LDA recognised the value of the infrastructure to be developed as a receivable. Trade Receivables Trade Receivables arise in the normal course of providing goods and services to other agencies and the public. Trade Receivables are payable with 30 days after the goods or services have been provided under a contractual arrangement and in accordance with the terms and conditions of that arrangement. Accounts receivable (including trade receivables and other trade receivables) are initially recognised at fair value and are subsequently measured at amortised cost, with any adjustments to the carrying amount being recorded in the Statement of Comprehensive Income. During 2016-17, there was an unsecured loan provided to the West Belconnen Joint Operation to fund project activities. Interest was payable at the Bank Bill Swap Rate plus 3 per cent. At 30 June 2017, the balance was $9.371 million and is included in the Loan Receivable from the West Belconnen Joint Operation.

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APPENDIX B - SIGNIFICANT ACCOUNTING POLICIES – CONTINUED NOTE 22 RECEIVABLES - CONTINUED Deferred Payment Receivables Should sale proceeds be received by instalments over more than 12 months, the initial amount to be recorded, as a receivable is the fair value calculated by discounting the future instalments using a prevailing interest rate for a similar instrument of an issuer with a similar credit rating to the LDA. The deferred payment receivable is increased by the amount recognised as interest revenue during the year so that the carrying amount of the receivable at the end of the discount period equals the final cash payment to be received. Refer Appendix B – Revenue Recognition. Impairment Loss Receivables The allowance for impairment losses represents the amount of trade and other receivables the LDA estimated would not be collected. The allowance for impairment losses is based on objective evidence and a review of overdue balances. The LDA considers the following is objective evidence of impairment, unless individual debts have been assessed as recoverable: (a) becoming aware of financial difficulties of debtors; (b) default payments; or (c) debts more than 90 days overdue.

The amount of the allowance is recognised in the Statement of Comprehensive Income. The allowance for impairment losses is written off against the allowance account when the LDA ceased action to collect the debt as it considered that it will cost more to recover the debt than the debt is worth. NOTE 23 INVENTORIES Inventories held for sale include Developed Land and Land Being Developed - Work in Progress, and are valued at the lower of cost and net realisable value. Land Being Developed - Work in Progress is transferred to Developed Land when operational acceptance is provided by the Environment, Planning and Sustainable Development Directorate (EPSDD) and the land becomes available for sale. The cost of Developed Land includes land acquisition and land development costs. Land transferred from EPSDD was recognised in Inventories – Land Being Developed - Work in Progress when custodianship of land was received by the LDA. Land Acquisitions Unleased Territory land was acquired at market value and the LDA made payment to EPSDD when the land was sold to third parties. The LDA also purchased land from other ACT Government agencies and third parties at market value as required. It also received land for no cost through transfers from other ACT Government agencies. When land was acquired under the Planning and Development (Land Acquisition Policy Framework) Direction 2014 (No 1) it is recorded as Property, Plant and Equipment as further disclosed in Note 24.



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APPENDIX B - SIGNIFICANT ACCOUNTING POLICIES – CONTINUED NOTE 23 INVENTORIES - CONTINUED Capitalised Development Costs Development Costs are those costs that directly relate to preparing sites for sale as serviced land. These include expenditure associated with the implementation of estate planning, demolition, remediation activities, and relocation or construction of infrastructure services. Costs associated with marketing and selling activities are not considered to be directly related to the preparation of the sites for sale as serviced 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 12 months. NOTE 24 PROPERTY, PLANT AND EQUIPMENT Acquisition and Recognition of Property, Plant and Equipment Property, plant and equipment are initially recorded at cost. Cost includes the purchase price, directly attributable costs and the estimated cost of dismantling and removing the item (where, upon acquisition, there is a present obligation to remove the item). Where property, plant and equipment is acquired at no cost, or minimal cost, cost is its fair value as at the date of acquisition. The LDA capitalised all property, plant and equipment with a value of $5,000 or more. Land acquisitions that are long term in nature and not readily identifiable for development and/or are recorded as land under property, plant and equipment as disclosed in Note 24. Land will be available for development when it is first included in the Indicative Land Release Program. Measurement of Property, Plant and Equipment after Initial Recognition The LDA has made estimates regarding the fair value of its assets. Land and buildings have been recorded at the market value of similar properties as determined by independent valuers. In some circumstances, buildings that are purpose built may in fact realise more or less in the market. The valuation uses significant judgements and estimates to determine fair value, including the appropriate indexation figure and quantum of assets held. The fair value of assets is subject to management assessment between formal valuations. Property, plant and equipment is valued using the cost or revaluation model of valuation. Cost includes the purchase price, directly attributable costs and the estimated cost of dismantling and removing the item (where, upon acquisition, there is a present obligation to remove the item). Land and buildings are measured at fair value. Plant and equipment, leasehold improvements and heritage assets are measured at cost. Fair value for land and non-specialised buildings is measured using the market approach valuation technique. This approach uses prices and other relevant information generated by market transactions involving identical or similar assets. Fair value for specialised buildings is measured by reference to the cost of replacing the remaining future economic benefits embodied in the asset (i.e. depreciated replacement cost). This is the cost approach valuation technique. The LDA obtained an independent valuation for its land and buildings every three years. The latest valuation was at 30 June 2016.




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APPENDIX B - SIGNIFICANT ACCOUNTING POLICIES – CONTINUED NOTE 22 RECEIVABLES - CONTINUED Deferred Payment Receivables Should sale proceeds be received by instalments over more than 12 months, the initial amount to be recorded, as a receivable is the fair value calculated by discounting the future instalments using a prevailing interest rate for a similar instrument of an issuer with a similar credit rating to the LDA. The deferred payment receivable is increased by the amount recognised as interest revenue during the year so that the carrying amount of the receivable at the end of the discount period equals the final cash payment to be received. Refer Appendix B – Revenue Recognition. Impairment Loss Receivables The allowance for impairment losses represents the amount of trade and other receivables the LDA estimated would not be collected. The allowance for impairment losses is based on objective evidence and a review of overdue balances. The LDA considers the following is objective evidence of impairment, unless individual debts have been assessed as recoverable: (a) becoming aware of financial difficulties of debtors; (b) default payments; or (c) debts more than 90 days overdue.

The amount of the allowance is recognised in the Statement of Comprehensive Income. The allowance for impairment losses is written off against the allowance account when the LDA ceased action to collect the debt as it considered that it will cost more to recover the debt than the debt is worth. NOTE 23 INVENTORIES Inventories held for sale include Developed Land and Land Being Developed - Work in Progress, and are valued at the lower of cost and net realisable value. Land Being Developed - Work in Progress is transferred to Developed Land when operational acceptance is provided by the Environment, Planning and Sustainable Development Directorate (EPSDD) and the land becomes available for sale. The cost of Developed Land includes land acquisition and land development costs. Land transferred from EPSDD was recognised in Inventories – Land Being Developed - Work in Progress when custodianship of land was received by the LDA. Land Acquisitions Unleased Territory land was acquired at market value and the LDA made payment to EPSDD when the land was sold to third parties. The LDA also purchased land from other ACT Government agencies and third parties at market value as required. It also received land for no cost through transfers from other ACT Government agencies. When land was acquired under the Planning and Development (Land Acquisition Policy Framework) Direction 2014 (No 1) it is recorded as Property, Plant and Equipment as further disclosed in Note 24.



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APPENDIX B - SIGNIFICANT ACCOUNTING POLICIES – CONTINUED NOTE 23 INVENTORIES - CONTINUED Capitalised Development Costs Development Costs are those costs that directly relate to preparing sites for sale as serviced land. These include expenditure associated with the implementation of estate planning, demolition, remediation activities, and relocation or construction of infrastructure services. Costs associated with marketing and selling activities are not considered to be directly related to the preparation of the sites for sale as serviced 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 12 months. NOTE 24 PROPERTY, PLANT AND EQUIPMENT Acquisition and Recognition of Property, Plant and Equipment Property, plant and equipment are initially recorded at cost. Cost includes the purchase price, directly attributable costs and the estimated cost of dismantling and removing the item (where, upon acquisition, there is a present obligation to remove the item). Where property, plant and equipment is acquired at no cost, or minimal cost, cost is its fair value as at the date of acquisition. The LDA capitalised all property, plant and equipment with a value of $5,000 or more. Land acquisitions that are long term in nature and not readily identifiable for development and/or are recorded as land under property, plant and equipment as disclosed in Note 24. Land will be available for development when it is first included in the Indicative Land Release Program. Measurement of Property, Plant and Equipment after Initial Recognition The LDA has made estimates regarding the fair value of its assets. Land and buildings have been recorded at the market value of similar properties as determined by independent valuers. In some circumstances, buildings that are purpose built may in fact realise more or less in the market. The valuation uses significant judgements and estimates to determine fair value, including the appropriate indexation figure and quantum of assets held. The fair value of assets is subject to management assessment between formal valuations. Property, plant and equipment is valued using the cost or revaluation model of valuation. Cost includes the purchase price, directly attributable costs and the estimated cost of dismantling and removing the item (where, upon acquisition, there is a present obligation to remove the item). Land and buildings are measured at fair value. Plant and equipment, leasehold improvements and heritage assets are measured at cost. Fair value for land and non-specialised buildings is measured using the market approach valuation technique. This approach uses prices and other relevant information generated by market transactions involving identical or similar assets. Fair value for specialised buildings is measured by reference to the cost of replacing the remaining future economic benefits embodied in the asset (i.e. depreciated replacement cost). This is the cost approach valuation technique. The LDA obtained an independent valuation for its land and buildings every three years. The latest valuation was at 30 June 2016.

139



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APPENDIX B - SIGNIFICANT ACCOUNTING POLICIES - CONTINUED If at any time, management considers the carrying amount of an asset materially differs from its fair value, then the asset will be revalued regardless of when the last valuation took place. Land and buildings that are acquired between revaluations are held at cost until the next valuation, where they are re-valued to fair value. NOTE 25 INTANGIBLE ASSETS An intangible asset is an identifiable non-monetary asset without physical substance. The LDA’s intangible assets were composed of externally acquired software for internal use and goodwill. Intangible assets acquired separately are measured on initial recognition at cost. Goodwill on the acquisition of a business combination is recognised at acquisition date when consideration paid for the business exceeds the fair value of assets and liabilities of the business acquired at the date of acquisition. Externally acquired software is recognised and capitalised when:

(i) it is probable that the expected future economic benefits that are attributable to the software will flow to the LDA;

(ii) the cost of the software can be measured reliably; and

(iii) the acquisition cost is equal to or exceeds $50,000. Capitalised software has a finite useful life. Software is amortised on a straight-line basis over its useful life. Intangible assets are measured at cost. Impairment of Assets The LDA assessed, at each reporting date, whether there was any indication that an asset may be impaired. Assets are also reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. However, intangible assets that are not yet available for use are tested annually for impairment regardless of whether there is an indication of impairment, or more frequently if events or circumstances indicate they might be impaired. Impairment losses for plant and equipment, leasehold improvements, heritage and intangible assets are recognised in the Statement of Comprehensive Income (see Note 18 Waivers, impairment losses and write-offs). The carrying amount of the asset is reduced to its recoverable amount. Impairment losses for land and buildings are recognised as a decrease in the Asset Revaluation Surplus relating to these classes of assets. This is because these asset classes are measured at fair value and have an Asset Revaluation Surplus attached to them. Where the impairment loss is greater than the balance in the Asset Revaluation Surplus for the relevant class of asset, the difference is expensed in the Operating Statement (see Note 18 Waivers, impairment losses and write-offs). SIGNIFICANT ACCOUNTING POLICIES – LIABILITIES Liabilities - Current and Non-Current Liabilities are classified as current or non-current in the Balance Sheet and in the relevant notes. Liabilities are classified as current when they are due to be settled within 12 months after the reporting date or the LDA does not have an unconditional right to defer settlement of the liability for at least 12 months after the reporting date. Liabilities, which do not fall within the current classification, are classified as non-current.



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APPENDIX B - SIGNIFICANT ACCOUNTING POLICIES – CONTINUED NOTE 26 PAYABLES Payables are initially recognised at fair value based on the transaction cost and subsequent to initial recognition at amortised cost, with any adjustments to the carrying amount being recorded in the Statement of Comprehensive Income. Payables include Accrued Expenses, Payable to EPSDD for Land Sold, or yet to be developed and Other Payables. NOTE 27 EMPLOYEE BENEFITS Employee Benefits are listed in Appendix B - Note 10 Employee Expenses.

Wages and Salaries Accrued wages and salaries are measured at the amount that remains unpaid to employees at the end of the reporting period.

Annual and Long Service Leave Annual and long service leave including applicable on-costs that are not expected to be wholly settled before twelve months after the end of the reporting period, when the employees render the related service are measured at the present value of estimated future payments to be made in respect of services provided by employees up to the end of the reporting period. Consideration is given to the future wage and salary levels, experience of employee departures and periods of service. At the end of each reporting period end, the present value of future annual leave and long service leave payments is estimated using market yields on high quality Corporate bonds with terms to maturity that match, as closely as possible, the estimated future cash flows. Annual leave liabilities have been estimated on the assumption they will be wholly settled within three years. In 2016-17 the rate used to estimate the present value of future:

• annual leave payments was 99.1% (100.5% in 2015-16);

• payments for long service leave was 91.9% (101.3% in 2015-16). The long service leave liability is estimated with reference to the minimum period of qualifying service. For employees with less than the required minimum period of 7 years of qualifying service, the probability that employees will reach the required minimum period has been taken into account in estimating the provision for long service leave and applicable on-costs. The provision for annual leave and long service leave includes estimated on-costs. As these on-costs only become payable if the employee takes annual and long service leave while in-service, the probability that employees will take annual and long service leave while in service has been taken into account in estimating the liability for on-costs. Annual leave and long service leave liabilities are classified as current liabilities in the Balance Sheet where there are no unconditional rights to defer the settlement of the liability for at least 12 months. Conditional long service leave liabilities are classified as non-current because the LDA had an unconditional right to defer the settlement of the liability until the employee had completed the requisite years of service.




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APPENDIX B - SIGNIFICANT ACCOUNTING POLICIES - CONTINUED If at any time, management considers the carrying amount of an asset materially differs from its fair value, then the asset will be revalued regardless of when the last valuation took place. Land and buildings that are acquired between revaluations are held at cost until the next valuation, where they are re-valued to fair value. NOTE 25 INTANGIBLE ASSETS An intangible asset is an identifiable non-monetary asset without physical substance. The LDA’s intangible assets were composed of externally acquired software for internal use and goodwill. Intangible assets acquired separately are measured on initial recognition at cost. Goodwill on the acquisition of a business combination is recognised at acquisition date when consideration paid for the business exceeds the fair value of assets and liabilities of the business acquired at the date of acquisition. Externally acquired software is recognised and capitalised when:

(i) it is probable that the expected future economic benefits that are attributable to the software will flow to the LDA;

(ii) the cost of the software can be measured reliably; and

(iii) the acquisition cost is equal to or exceeds $50,000. Capitalised software has a finite useful life. Software is amortised on a straight-line basis over its useful life. Intangible assets are measured at cost. Impairment of Assets The LDA assessed, at each reporting date, whether there was any indication that an asset may be impaired. Assets are also reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. However, intangible assets that are not yet available for use are tested annually for impairment regardless of whether there is an indication of impairment, or more frequently if events or circumstances indicate they might be impaired. Impairment losses for plant and equipment, leasehold improvements, heritage and intangible assets are recognised in the Statement of Comprehensive Income (see Note 18 Waivers, impairment losses and write-offs). The carrying amount of the asset is reduced to its recoverable amount. Impairment losses for land and buildings are recognised as a decrease in the Asset Revaluation Surplus relating to these classes of assets. This is because these asset classes are measured at fair value and have an Asset Revaluation Surplus attached to them. Where the impairment loss is greater than the balance in the Asset Revaluation Surplus for the relevant class of asset, the difference is expensed in the Operating Statement (see Note 18 Waivers, impairment losses and write-offs). SIGNIFICANT ACCOUNTING POLICIES – LIABILITIES Liabilities - Current and Non-Current Liabilities are classified as current or non-current in the Balance Sheet and in the relevant notes. Liabilities are classified as current when they are due to be settled within 12 months after the reporting date or the LDA does not have an unconditional right to defer settlement of the liability for at least 12 months after the reporting date. Liabilities, which do not fall within the current classification, are classified as non-current.



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APPENDIX B - SIGNIFICANT ACCOUNTING POLICIES – CONTINUED NOTE 26 PAYABLES Payables are initially recognised at fair value based on the transaction cost and subsequent to initial recognition at amortised cost, with any adjustments to the carrying amount being recorded in the Statement of Comprehensive Income. Payables include Accrued Expenses, Payable to EPSDD for Land Sold, or yet to be developed and Other Payables. NOTE 27 EMPLOYEE BENEFITS Employee Benefits are listed in Appendix B - Note 10 Employee Expenses.

Wages and Salaries Accrued wages and salaries are measured at the amount that remains unpaid to employees at the end of the reporting period.

Annual and Long Service Leave Annual and long service leave including applicable on-costs that are not expected to be wholly settled before twelve months after the end of the reporting period, when the employees render the related service are measured at the present value of estimated future payments to be made in respect of services provided by employees up to the end of the reporting period. Consideration is given to the future wage and salary levels, experience of employee departures and periods of service. At the end of each reporting period end, the present value of future annual leave and long service leave payments is estimated using market yields on high quality Corporate bonds with terms to maturity that match, as closely as possible, the estimated future cash flows. Annual leave liabilities have been estimated on the assumption they will be wholly settled within three years. In 2016-17 the rate used to estimate the present value of future:

• annual leave payments was 99.1% (100.5% in 2015-16);

• payments for long service leave was 91.9% (101.3% in 2015-16). The long service leave liability is estimated with reference to the minimum period of qualifying service. For employees with less than the required minimum period of 7 years of qualifying service, the probability that employees will reach the required minimum period has been taken into account in estimating the provision for long service leave and applicable on-costs. The provision for annual leave and long service leave includes estimated on-costs. As these on-costs only become payable if the employee takes annual and long service leave while in-service, the probability that employees will take annual and long service leave while in service has been taken into account in estimating the liability for on-costs. Annual leave and long service leave liabilities are classified as current liabilities in the Balance Sheet where there are no unconditional rights to defer the settlement of the liability for at least 12 months. Conditional long service leave liabilities are classified as non-current because the LDA had an unconditional right to defer the settlement of the liability until the employee had completed the requisite years of service.

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APPENDIX B - SIGNIFICANT ACCOUNTING POLICIES – CONTINUED NOTE 27 EMPLOYEE BENEFITS - CONTINUED Significant Judgements and Estimates – Employee Benefits Significant judgements have been applied in estimating the liability for employee benefits. The estimated liability for annual and long service leave requires a consideration of the future wage and salary levels, experience of employee departures, probability that leave will be taken in service and periods of service. The estimate also includes an assessment of the probability that employees will meet the minimum service period required to qualify for long service leave and that on-costs will become payable. The significant judgements and assumptions included in the estimation of annual and long service leave liabilities include an assessment by an actuary. The Australian Government Actuary performed this assessment in May 2014. The assessment by an actuary is performed every 5 years. However, it may be performed more frequently if there is a significant contextual change in the parameters underlying the 2014 report. The next actuarial review is expected to be undertaken by May 2019. NOTE 28 OTHER PROVISIONS

Provision for Project Completion For any parcel of Developed Land, the proportion of costs anticipated but not yet incurred is accounted for in the Provision for Project Completion. An estimate was made of the amount of work still to be completed by the LDA. This estimate took the form of a ‘project completion percentage’ and was calculated on a monthly basis. The Provision for Project Completion is a calculation combining the total anticipated costs of each finished parcel of Developed Land together with the project completion percentage. Provision to Transfer Infrastructure The sale of land by the LDA may have involved 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 completion, the infrastructure works are transferred to TCCS and Icon Water. At contract settlement, LDA recognised the value of the future infrastructure to be transferred to TCCS and Icon Water as a liability. NOTE 31 DEFERRED TAX LIABILITY Deferred tax liabilities are the amounts of national taxes payable in future periods relating to temporary differences between the calculation of accounting and taxation profit. The LDA ceased operating as a separate entity from 1 July 2017. The deferred tax liability has been de-recognised from the Balance Sheet, resulting in a decrease in the National Tax Equivalents expenses on Statement of Comprehensive Income.

SIGNIFICANT ACCOUNTING POLICIES – EQUITY Assets Contributed by ACT Government Contributions made by the ACT Government through its role as owner of the LDA were treated as contributions of equity. Property transferred to the LDA from other agencies identified as part of the Asset Recycling Initiative was treated as a contribution of equity.



73

APPENDIX B - SIGNIFICANT ACCOUNTING POLICIES – CONTINUED SIGNIFICANT ACCOUNTING POLICIES – OTHER NOTES NOTE 35 INTEREST IN JOINT VENTURES A joint venture is a joint arrangement that the LDA controlled jointly with another investor(s) and had rights to the net assets of the arrangement. The LDA used the equity method to account for its interest in two unincorporated joint ventures (Forde Joint Venture and Crace Joint Venture). Under the equity method, on initial recognition, the investment in a joint venture was recognised at cost and the carrying amount was increased or decreased to recognise the LDA’s share of the profit or loss of the joint venture after the date of acquisition. The LDA’s share of the joint venture’s profit or loss was recognised in the Statement of Comprehensive Income. Distributions received from a joint venture reduced the carrying amount of the investment. Gains and losses resulting from ‘upstream’ (joint venture to the LDA) and ‘downstream’ (the LDA to joint venture) transactions are eliminated to the extent of the LDA’s interest in the joint venture. However, unrealised losses are not eliminated to the extent that the transaction provides evidence of a reduction in the net realisable value or in the recoverable amount of the assets transferred. Contributions of non-monetary assets to a joint venture in exchange for an equity interest are also accounted for in accordance with these requirements. NOTE 36 INTEREST IN A JOINT OPERATION A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the assets, and obligations for the liabilities, in relation to the arrangement. The share of assets, liabilities, income and expenses of the jointly controlled operation has been incorporated in the financial statements of the LDA under the appropriate headings (Assets, Liabilities, Income and Expenses). During 2016-17 the LDA entered into a Joint Operation to develop land to the west of Belconnen. NOTE 40 BUDGETARY REPORTING Significant Judgements and Estimates – Budgetary Reporting Significant judgements have been applied in determining what variances are considered ‘major variances’. Variances are considered major if both of the following criteria are met:

• The line item is a significant line item: where either the line item actual amount accounts for more than 10% of the relevant associated category (Income, Expenses and Equity totals) or more than 10% of the sub-element (e.g. Current Liabilities and Receipts from Operating Activities totals) of the financial statements; and

• The variances (original budget to actual) are greater than plus (+) or minus (-) 10% of the budget for the financial statement line item.




72

APPENDIX B - SIGNIFICANT ACCOUNTING POLICIES – CONTINUED NOTE 27 EMPLOYEE BENEFITS - CONTINUED Significant Judgements and Estimates – Employee Benefits Significant judgements have been applied in estimating the liability for employee benefits. The estimated liability for annual and long service leave requires a consideration of the future wage and salary levels, experience of employee departures, probability that leave will be taken in service and periods of service. The estimate also includes an assessment of the probability that employees will meet the minimum service period required to qualify for long service leave and that on-costs will become payable. The significant judgements and assumptions included in the estimation of annual and long service leave liabilities include an assessment by an actuary. The Australian Government Actuary performed this assessment in May 2014. The assessment by an actuary is performed every 5 years. However, it may be performed more frequently if there is a significant contextual change in the parameters underlying the 2014 report. The next actuarial review is expected to be undertaken by May 2019. NOTE 28 OTHER PROVISIONS

Provision for Project Completion For any parcel of Developed Land, the proportion of costs anticipated but not yet incurred is accounted for in the Provision for Project Completion. An estimate was made of the amount of work still to be completed by the LDA. This estimate took the form of a ‘project completion percentage’ and was calculated on a monthly basis. The Provision for Project Completion is a calculation combining the total anticipated costs of each finished parcel of Developed Land together with the project completion percentage. Provision to Transfer Infrastructure The sale of land by the LDA may have involved 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 completion, the infrastructure works are transferred to TCCS and Icon Water. At contract settlement, LDA recognised the value of the future infrastructure to be transferred to TCCS and Icon Water as a liability. NOTE 31 DEFERRED TAX LIABILITY Deferred tax liabilities are the amounts of national taxes payable in future periods relating to temporary differences between the calculation of accounting and taxation profit. The LDA ceased operating as a separate entity from 1 July 2017. The deferred tax liability has been de-recognised from the Balance Sheet, resulting in a decrease in the National Tax Equivalents expenses on Statement of Comprehensive Income.

SIGNIFICANT ACCOUNTING POLICIES – EQUITY Assets Contributed by ACT Government Contributions made by the ACT Government through its role as owner of the LDA were treated as contributions of equity. Property transferred to the LDA from other agencies identified as part of the Asset Recycling Initiative was treated as a contribution of equity.



73

APPENDIX B - SIGNIFICANT ACCOUNTING POLICIES – CONTINUED SIGNIFICANT ACCOUNTING POLICIES – OTHER NOTES NOTE 35 INTEREST IN JOINT VENTURES A joint venture is a joint arrangement that the LDA controlled jointly with another investor(s) and had rights to the net assets of the arrangement. The LDA used the equity method to account for its interest in two unincorporated joint ventures (Forde Joint Venture and Crace Joint Venture). Under the equity method, on initial recognition, the investment in a joint venture was recognised at cost and the carrying amount was increased or decreased to recognise the LDA’s share of the profit or loss of the joint venture after the date of acquisition. The LDA’s share of the joint venture’s profit or loss was recognised in the Statement of Comprehensive Income. Distributions received from a joint venture reduced the carrying amount of the investment. Gains and losses resulting from ‘upstream’ (joint venture to the LDA) and ‘downstream’ (the LDA to joint venture) transactions are eliminated to the extent of the LDA’s interest in the joint venture. However, unrealised losses are not eliminated to the extent that the transaction provides evidence of a reduction in the net realisable value or in the recoverable amount of the assets transferred. Contributions of non-monetary assets to a joint venture in exchange for an equity interest are also accounted for in accordance with these requirements. NOTE 36 INTEREST IN A JOINT OPERATION A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the assets, and obligations for the liabilities, in relation to the arrangement. The share of assets, liabilities, income and expenses of the jointly controlled operation has been incorporated in the financial statements of the LDA under the appropriate headings (Assets, Liabilities, Income and Expenses). During 2016-17 the LDA entered into a Joint Operation to develop land to the west of Belconnen. NOTE 40 BUDGETARY REPORTING Significant Judgements and Estimates – Budgetary Reporting Significant judgements have been applied in determining what variances are considered ‘major variances’. Variances are considered major if both of the following criteria are met:

• The line item is a significant line item: where either the line item actual amount accounts for more than 10% of the relevant associated category (Income, Expenses and Equity totals) or more than 10% of the sub-element (e.g. Current Liabilities and Receipts from Operating Activities totals) of the financial statements; and

• The variances (original budget to actual) are greater than plus (+) or minus (-) 10% of the budget for the financial statement line item.

143

Land Development Agency APPENDIX C - IMPACT OF ACCOUNTING STANDARDS

ISSUED BUT YET TO BE APPLIED Forms Part of Note 2 of the Financial Statements


74

APPENDIX C - IMPACT OF ACCOUNTING STANDARDS ISSUED BUT YET TO BE APPLIED The following new and revised accounting standards and interpretations have been issued by the Australian Accounting Standards Board but do not apply to the current reporting period. These standards and interpretations are applicable to future reporting periods. The LDA has not adopted these standards and interpretations early. The LDA ceased operating from 1 July 2017 and therefore an estimate of the impact of Accounting Standards issued but yet to be applied has not been made. • AASB 15 Revenue from Contracts with Customers (application date 1 January 2018 for for-profit entities,

1 January 2019 for not-for-profit entities);

AASB 15 is the new standard for revenue recognition. It establishes a comprehensive framework for determining whether, how much and when revenue is recognised. It replaces AASB 111 Construction Contracts and AASB 118 Revenue. • AASB 16 Leases (application date 1 January 2019)

AASB 16 is the new standard for leases. It introduces a single lessee accounting model and requires a lessee to recognise assets and liabilities for all leases with a term of more than 12 months, unless the underlying asset value is low. • AASB 2014-5 Amendments to Australian Accounting Standards arising from AASB 15 [AASB 1, 3, 4, 9

(December 2009) (December 2010), 101, 102, 112, 116, 132, 134, 134, 137, 138, 139, 140, 1023, 1038, 1039, 1049, 1053, 1056, Interpretation 12, 127, 132, 1031, 1038 & 1052] (application date 1 January 2018).

This standard makes consequential amendments to a number of standards and interpretations as a result of the issuing of AASB 15. • AASB 2014-10 Amendments to Australian Accounting Standards – Sale or Contribution of Assets between

an Investor and its Associate or Joint Venture [AASB 10 &128] (application date 1 January 2018)

This standard makes amendments to address an inconsistency between the requirements in AASB 10 and those in AASB 128 (August 2011), in dealing with the sale or contribution of assets between an investor and its associate or joint venture. • AASB 2015-8 Amendments to Australian Accounting Standards – Effective date of AASB 15 (application

date 1 January 2017)

This standard deferred the application date of AASB 15 Revenue from Contracts with Customers to 1 January 2018. AASB 2016-7 Amendments to Australian Accounting Standards – Deferral of AASB 15 for Not-for Profit Entities further defers the application date of AASB 15 for not-for-profit entities until 1 January 2019. • AASB 2016-3 Amendments to Australian Accounting Standards- Clarifications to AASB 15 (application date

1 January 2018)

This standard clarifies the existing requirements of AASB 15.

Land Development Agency APPENDIX D – CHANGE IN ACCOUNTING POLICY AND

ACCOUNTING ESTIMATES Forms Part of Note 3 of the Financial Statements


75

APPENDIX D - CHANGE IN ACCOUNTING POLICY AND ACCOUNTING ESTIMATES

Bi-annual review of project costing On a bi-annual basis, the LDA undertook a detailed review of its estimated project costs to determine remaining funding requirements. During this process estimates of project contingency costs were also reviewed. Any adjustments as a result of the Bi-Annual Reviews has an impact on the value of inventory and cost of land sold. The overall impact of the 2016-17 adjustment was to decrease Cost of Land Sold and increase Inventory by $25.039 million and therefore increase the Operating Surplus before Income Tax Equivalents by $20.039 million.


Land Development Agency APPENDIX C - IMPACT OF ACCOUNTING STANDARDS

ISSUED BUT YET TO BE APPLIED Forms Part of Note 2 of the Financial Statements


74

APPENDIX C - IMPACT OF ACCOUNTING STANDARDS ISSUED BUT YET TO BE APPLIED The following new and revised accounting standards and interpretations have been issued by the Australian Accounting Standards Board but do not apply to the current reporting period. These standards and interpretations are applicable to future reporting periods. The LDA has not adopted these standards and interpretations early. The LDA ceased operating from 1 July 2017 and therefore an estimate of the impact of Accounting Standards issued but yet to be applied has not been made. • AASB 15 Revenue from Contracts with Customers (application date 1 January 2018 for for-profit entities,

1 January 2019 for not-for-profit entities);

AASB 15 is the new standard for revenue recognition. It establishes a comprehensive framework for determining whether, how much and when revenue is recognised. It replaces AASB 111 Construction Contracts and AASB 118 Revenue. • AASB 16 Leases (application date 1 January 2019)

AASB 16 is the new standard for leases. It introduces a single lessee accounting model and requires a lessee to recognise assets and liabilities for all leases with a term of more than 12 months, unless the underlying asset value is low. • AASB 2014-5 Amendments to Australian Accounting Standards arising from AASB 15 [AASB 1, 3, 4, 9

(December 2009) (December 2010), 101, 102, 112, 116, 132, 134, 134, 137, 138, 139, 140, 1023, 1038, 1039, 1049, 1053, 1056, Interpretation 12, 127, 132, 1031, 1038 & 1052] (application date 1 January 2018).

This standard makes consequential amendments to a number of standards and interpretations as a result of the issuing of AASB 15. • AASB 2014-10 Amendments to Australian Accounting Standards – Sale or Contribution of Assets between

an Investor and its Associate or Joint Venture [AASB 10 &128] (application date 1 January 2018)

This standard makes amendments to address an inconsistency between the requirements in AASB 10 and those in AASB 128 (August 2011), in dealing with the sale or contribution of assets between an investor and its associate or joint venture. • AASB 2015-8 Amendments to Australian Accounting Standards – Effective date of AASB 15 (application

date 1 January 2017)

This standard deferred the application date of AASB 15 Revenue from Contracts with Customers to 1 January 2018. AASB 2016-7 Amendments to Australian Accounting Standards – Deferral of AASB 15 for Not-for Profit Entities further defers the application date of AASB 15 for not-for-profit entities until 1 January 2019. • AASB 2016-3 Amendments to Australian Accounting Standards- Clarifications to AASB 15 (application date

1 January 2018)

This standard clarifies the existing requirements of AASB 15.

Land Development Agency APPENDIX D – CHANGE IN ACCOUNTING POLICY AND

ACCOUNTING ESTIMATES Forms Part of Note 3 of the Financial Statements


75

APPENDIX D - CHANGE IN ACCOUNTING POLICY AND ACCOUNTING ESTIMATES

Bi-annual review of project costing On a bi-annual basis, the LDA undertook a detailed review of its estimated project costs to determine remaining funding requirements. During this process estimates of project contingency costs were also reviewed. Any adjustments as a result of the Bi-Annual Reviews has an impact on the value of inventory and cost of land sold. The overall impact of the 2016-17 adjustment was to decrease Cost of Land Sold and increase Inventory by $25.039 million and therefore increase the Operating Surplus before Income Tax Equivalents by $20.039 million.

145

WEST BELCONNEN JOINT VENTUREABN: 72 619 778 053

FINANCIAL STATEMENTSFOR THE PERIOD FROM 21 NOVEMBER 2016 TO 30 JUNE 2017

CONTENTS

Independent Auditor’s report page number to be confirmed

Statement of Comprehensive Income page number to be confirmed

Statement of Financial Position page number to be confirmed

Statement of Cash Flows page number to be confirmed

Statement of Changes in Equity page number to be confirmed

Notes to the Financial Statements page number to be confirmed

Declaration by the Joint Venture Partners page number to be confirmed


CONTENTS

Independent Auditor’s report page number to be confirmed

Statement of Comprehensive Income page number to be confirmed

Statement of Financial Position page number to be confirmed

Statement of Cash Flows page number to be confirmed

Statement of Changes in Equity page number to be confirmed

Notes to the Financial Statements page number to be confirmed

Declaration by the Joint Venture Partners page number to be confirmed

147


WEST BELCONNEN JOINT VENTURE

To the Members of the West Belconnen Joint Venture Board Audit opinion I am providing an unqualified audit opinion on the financial statements of the West Belconnen Joint Venture (the Joint Venture) for period from 21 November 2016 to 30 June 2017. The financial statements comprise the statement of comprehensive income, statement of financial position, statement of cash flows, statement of changes in equity, and accompanying notes. In my opinion, the financial statements: (i) are presented in accordance with Australian Accounting Standards and other mandatory

financial reporting requirements in Australia; and (ii) present fairly the financial position of the Joint Venture and results of its operations and

cash flows. Basis for the audit opinion The audit was conducted in accordance with Australian Auditing Standards. I have complied with the requirements of the Accounting Professional and Ethical Standards 110 Code of Ethics for Professional Accountants. I believe that sufficient evidence was obtained during the audit to provide a basis for the audit opinion. Responsibility for preparing and fairly presenting the financial statements The Joint Venture Board is responsible for: preparing and fairly presenting the financial statements in accordance with relevant

Australian Accounting Standards; determining the internal controls necessary for the preparation and fair presentation of


assessing the ability of the Joint Venture to continue as a going concern and disclosing, as applicable, matters relating to going concern and using the going concern basis of accounting in preparing the financial statements.

Responsibility for the audit of the financial statements The Auditor-General is responsible for issuing an audit report that includes an independent audit opinion on the financial statements of the Joint Venture. As required by Australian Auditing Standards, the auditors: applied professional judgement and maintained scepticism; identified and assessed the risks of material misstatements due to error or fraud and

implemented procedures to address these risks so that sufficient evidence was obtained to form an audit opinion. The risk of not detecting material misstatements due to fraud is

higher than the risk due to error, as fraud may involve collusion, forgery, intentional omissions or misrepresentations or the override of internal controls;




reported the scope and timing of the audit and any significant deficiencies in internal controls identified during the audit to the Joint Venture Board; and


Limitations on the scope of the audit An audit provides a high level of assurance about whether the financial statements are free from material misstatements, whether due to fraud or error. However, an audit cannot provide a guarantee that no material misstatements exist due to the use of selective testing, limitations of internal control, persuasive rather than conclusive nature of audit evidence and use of professional judgement in gathering and evaluating evidence. An audit does not provide assurance on the: reasonableness of budget information included in the financial statements; prudence of decisions made by the Joint Venture; adequacy of controls implemented by the Joint Venture; or integrity of audited financial statements presented electronically or information


Ajay Sharma Acting Director, Financial Audits 19 September 2017



WEST BELCONNEN JOINT VENTURE

To the Members of the West Belconnen Joint Venture Board Audit opinion I am providing an unqualified audit opinion on the financial statements of the West Belconnen Joint Venture (the Joint Venture) for period from 21 November 2016 to 30 June 2017. The financial statements comprise the statement of comprehensive income, statement of financial position, statement of cash flows, statement of changes in equity, and accompanying notes. In my opinion, the financial statements: (i) are presented in accordance with Australian Accounting Standards and other mandatory

financial reporting requirements in Australia; and (ii) present fairly the financial position of the Joint Venture and results of its operations and

cash flows. Basis for the audit opinion The audit was conducted in accordance with Australian Auditing Standards. I have complied with the requirements of the Accounting Professional and Ethical Standards 110 Code of Ethics for Professional Accountants. I believe that sufficient evidence was obtained during the audit to provide a basis for the audit opinion. Responsibility for preparing and fairly presenting the financial statements The Joint Venture Board is responsible for: preparing and fairly presenting the financial statements in accordance with relevant

Australian Accounting Standards; determining the internal controls necessary for the preparation and fair presentation of


assessing the ability of the Joint Venture to continue as a going concern and disclosing, as applicable, matters relating to going concern and using the going concern basis of accounting in preparing the financial statements.

Responsibility for the audit of the financial statements The Auditor-General is responsible for issuing an audit report that includes an independent audit opinion on the financial statements of the Joint Venture. As required by Australian Auditing Standards, the auditors: applied professional judgement and maintained scepticism; identified and assessed the risks of material misstatements due to error or fraud and

implemented procedures to address these risks so that sufficient evidence was obtained to form an audit opinion. The risk of not detecting material misstatements due to fraud is

higher than the risk due to error, as fraud may involve collusion, forgery, intentional omissions or misrepresentations or the override of internal controls;




reported the scope and timing of the audit and any significant deficiencies in internal controls identified during the audit to the Joint Venture Board; and


Limitations on the scope of the audit An audit provides a high level of assurance about whether the financial statements are free from material misstatements, whether due to fraud or error. However, an audit cannot provide a guarantee that no material misstatements exist due to the use of selective testing, limitations of internal control, persuasive rather than conclusive nature of audit evidence and use of professional judgement in gathering and evaluating evidence. An audit does not provide assurance on the: reasonableness of budget information included in the financial statements; prudence of decisions made by the Joint Venture; adequacy of controls implemented by the Joint Venture; or integrity of audited financial statements presented electronically or information


Ajay Sharma Acting Director, Financial Audits 19 September 2017

149

Financial Statements West Belconnen Joint Venture

Page 1

STATEMENT OF COMPREHENSIVE INCOME FOR THE PERIOD FROM 21 NOVEMBER 2016 TO 30 JUNE 2017

Note

For the Period from 21 November 2016

to 30 June 2017 No. $ Revenue - Cost of Sales - GROSS PROFIT - Other revenue 3 3,453 TOTAL REVENUE 3,453 Administrative expenses 4 2,943,944 Finance costs 410,872 Marketing and communication costs 2,000,733 Selling costs 189,819 TOTAL COSTS 5,545,368 NET (LOSS) FOR THE PERIOD (5,541,915)

TOTAL COMPREHENSIVE (LOSS) FOR THE PERIOD AVAILABLE FOR DISTRIBUTION TO JOINT VENTURE PARTNERS

(5,541,915)

The Statement of Comprehensive Income should be read in conjunction with the notes to the financial statements.


Page 2

STATEMENT OF FINANCIAL POSITION AT 30 JUNE 2017 Note 30 June 2017 ASSETS No. $ CURRENT ASSETS Cash and cash equivalents 6 6,912,356 Trade receivables and other assets 7 58,345 Current tax assets 9 893,207 TOTAL CURRENT ASSETS 7,863,908 NON-CURRENT ASSETS Inventories 8 9,939,041 Property, plant and equipment 10 4,236,934 TOTAL NON-CURRENT ASSETS 14,175,975 TOTAL ASSETS 22,039,883 LIABILITIES CURRENT LIABILITIES Trade creditors and other payables 11 1,366,102 TOTAL CURRENT LIABILITIES 1,366,102 NON-CURRENT LIABILITIES Loans and borrowings 13 23,436,516 Other liabilities 12 1,779,180 TOTAL NON-CURRENT LIABILITIES 25,215,696 TOTAL LIABILITIES 26,581,798 NET (LIABILITIES) (4,541,915) JOINT VENTURE EQUITY

Capital Account – Land Development Agency (2,725,149) Capital Account – Riverview Development (ACT) Pty Ltd (1,816,766)

TOTAL EQUITY (4,541,915)

The Statement of Financial Position should be read in conjunction with the notes to the financial statements.



Page 1

STATEMENT OF COMPREHENSIVE INCOME FOR THE PERIOD FROM 21 NOVEMBER 2016 TO 30 JUNE 2017

Note


to 30 June 2017 No. $ Revenue - Cost of Sales - GROSS PROFIT - Other revenue 3 3,453 TOTAL REVENUE 3,453 Administrative expenses 4 2,943,944 Finance costs 410,872 Marketing and communication costs 2,000,733 Selling costs 189,819 TOTAL COSTS 5,545,368 NET (LOSS) FOR THE PERIOD (5,541,915)

TOTAL COMPREHENSIVE (LOSS) FOR THE PERIOD AVAILABLE FOR DISTRIBUTION TO JOINT VENTURE PARTNERS

(5,541,915)

The Statement of Comprehensive Income should be read in conjunction with the notes to the financial statements.


Page 2

STATEMENT OF FINANCIAL POSITION AT 30 JUNE 2017 Note 30 June 2017 ASSETS No. $ CURRENT ASSETS Cash and cash equivalents 6 6,912,356 Trade receivables and other assets 7 58,345 Current tax assets 9 893,207 TOTAL CURRENT ASSETS 7,863,908 NON-CURRENT ASSETS Inventories 8 9,939,041 Property, plant and equipment 10 4,236,934 TOTAL NON-CURRENT ASSETS 14,175,975 TOTAL ASSETS 22,039,883 LIABILITIES CURRENT LIABILITIES Trade creditors and other payables 11 1,366,102 TOTAL CURRENT LIABILITIES 1,366,102 NON-CURRENT LIABILITIES Loans and borrowings 13 23,436,516 Other liabilities 12 1,779,180 TOTAL NON-CURRENT LIABILITIES 25,215,696 TOTAL LIABILITIES 26,581,798 NET (LIABILITIES) (4,541,915) JOINT VENTURE EQUITY

Capital Account – Land Development Agency (2,725,149) Capital Account – Riverview Development (ACT) Pty Ltd (1,816,766)

TOTAL EQUITY (4,541,915)

The Statement of Financial Position should be read in conjunction with the notes to the financial statements.

151


Page 3

STATEMENT OF CASH FLOWS FOR THE PERIOD FROM 21 NOVEMBER 2016 TO 30 JUNE 2017

Note


to 30 June 2017

No. $ CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers 1,728,691 Interest received 147 Payments to suppliers and employees (14,955,405) Net cash (outflows) from operating activities 18(b) (13,226,567) CASH FLOWS FROM INVESTING ACTIVITIES Payments for property, plant and equipment (4,297,593) Net cash (outflows) from investing activities (4,297,593) CASH FLOWS FROM FINANCING ACTIVITIES Borrowings 23,436,516 Equity injection 1,000,000 Net cash inflows from financing activities 24,436,516 Net increase in cash and cash equivalents 6,912,356 Cash and cash equivalents at the beginning of the period - Cash and cash equivalents at the end of the period 18(a) 6,912,356

The Statement of Cash Flows should be read in conjunction with the notes to the financial statements.



Page 4

STATEMENT OF CHANGES IN EQUITY FOR THE PERIOD FROM ENDED 21 NOVEMBER 2016 TO 30 JUNE 2017

Total Equity $

Balance at 21 November 2016 - Equity injection Net (loss) for the period from 21 November 2016 to 30 June 2017

1,000,000 (5,541,915)

Total equity at 30 June 2017 (4,541,915)

The Statement of Changes in Equity should be read in conjunction with the notes to the financial statements.

153


Page 5

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD FROM 21 NOVEMBER 2016 TO 30 JUNE 2017

NOTE 1: JOINT VENTURE INFORMATION

West Belconnen Joint Venture (the "Joint Venture") is a joint venture domiciled in Australia. The Joint Venture was formed on 21 November 2016 to develop the land in the location known as Ginninderry in the Australian Capital Territory. The Joint Venture is commonly referred to as the Ginninderry Joint Venture.

NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a) Basis of preparation and going concern

The financial statements of the Joint Venture are general purpose financial statements that have been prepared in accordance with the requirements of the "West Belconnen Joint Venture Agreement" (the "Joint Venture Agreement") and for distribution to Joint Venture Partners.

The Joint Venture has commenced operations and is expected to begin civil works for the first stage in August 2017 with settlement of the first stage in August 2018.

The financial statements are prepared on the historical cost basis. The financial statements are presented in Australian dollars and cover the period from the date of commencement of 21 November 2016 to 30 June 2017.

(b) Compliance statement

The financial statements comply with Australian Accounting Standards and International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board.

(c) Comparative Figures

As the Joint Venture commenced in November 2016 this is the first period of operations and therefore there are no comparative figures provided in the financial statements.

(d) Early adoption of accounting policy

The Joint Venture has not early adopted any Australian Accounting Standards or AASB interpretations that have been issued as at balance date but are not yet operative for the year ended 30 June 2017 ("the inoperative standards").

The impact of the inoperative standards has been assessed and the impact has been identified as not being material to the Joint Venture.

(e) Revenue recognition

Revenue is recognised and measured at the fair value of the consideration received or receivable to the extent that it is probable that economic benefits will flow to the Joint Venture and the revenue can be reliably measured. The following specific recognition criteria must also be met before revenue is recognised:


Page 6

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD FROM 21 NOVEMBER 2016 TO 30 JUNE 2017 (CONTINUED)

NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

(e) Revenue recognition (continued)

Sale of land Revenue and profits from the sale of lots from completed stages of land subdivision are recognised on settlement of the sale.

Interest revenue Revenue is recognised as the interest accrues using the effective interest rate method based on the value of the deposit.

(f) Distributions

Provision is made for the amount of any distribution declared and approved on or before the end of the financial year but not distributed at balance date. No distributions have been approved during the period of these financial statements.

(g) Cash and cash equivalents

Cash and cash equivalents includes cash at bank and on hand.

For the purpose of the Statement of Cash Flows, cash and cash equivalents consist of cash and cash equivalents as defined above.

(h) Inventories

Inventories are measured at the lower of cost and net realisable value.

Inventories acquired at no cost, or for nominal consideration are valued at the current replacement cost as at the date of acquisition.

(i) Property, Plant and Equipment

Each class of property, plant and equipment is carried at cost less, where applicable, accumulated depreciation and impairment losses.

(i) Land and Buildings

Land and buildings are shown at cost less subsequent depreciation for buildings.

(ii) Plant and Equipment

Plant and equipment are measured at cost less depreciation and accumulated impairment losses.

The carrying amount of plant and equipment will be reviewed annually by West Belconnen Joint Venture to ensure it is not in excess of the recoverable amount from these assets. The recoverable amount is assessed on the basis of the expected net cash flows that will be received from the assets’ employment and subsequent disposal. The expected net cash flows have been discounted to their present values in determining recoverable amounts.



Page 5

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD FROM 21 NOVEMBER 2016 TO 30 JUNE 2017

NOTE 1: JOINT VENTURE INFORMATION

West Belconnen Joint Venture (the "Joint Venture") is a joint venture domiciled in Australia. The Joint Venture was formed on 21 November 2016 to develop the land in the location known as Ginninderry in the Australian Capital Territory. The Joint Venture is commonly referred to as the Ginninderry Joint Venture.

NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a) Basis of preparation and going concern

The financial statements of the Joint Venture are general purpose financial statements that have been prepared in accordance with the requirements of the "West Belconnen Joint Venture Agreement" (the "Joint Venture Agreement") and for distribution to Joint Venture Partners.

The Joint Venture has commenced operations and is expected to begin civil works for the first stage in August 2017 with settlement of the first stage in August 2018.

The financial statements are prepared on the historical cost basis. The financial statements are presented in Australian dollars and cover the period from the date of commencement of 21 November 2016 to 30 June 2017.

(b) Compliance statement

The financial statements comply with Australian Accounting Standards and International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board.

(c) Comparative Figures

As the Joint Venture commenced in November 2016 this is the first period of operations and therefore there are no comparative figures provided in the financial statements.

(d) Early adoption of accounting policy

The Joint Venture has not early adopted any Australian Accounting Standards or AASB interpretations that have been issued as at balance date but are not yet operative for the year ended 30 June 2017 ("the inoperative standards").

The impact of the inoperative standards has been assessed and the impact has been identified as not being material to the Joint Venture.

(e) Revenue recognition

Revenue is recognised and measured at the fair value of the consideration received or receivable to the extent that it is probable that economic benefits will flow to the Joint Venture and the revenue can be reliably measured. The following specific recognition criteria must also be met before revenue is recognised:


Page 6



(e) Revenue recognition (continued)

Sale of land Revenue and profits from the sale of lots from completed stages of land subdivision are recognised on settlement of the sale.

Interest revenue Revenue is recognised as the interest accrues using the effective interest rate method based on the value of the deposit.

(f) Distributions

Provision is made for the amount of any distribution declared and approved on or before the end of the financial year but not distributed at balance date. No distributions have been approved during the period of these financial statements.

(g) Cash and cash equivalents

Cash and cash equivalents includes cash at bank and on hand.

For the purpose of the Statement of Cash Flows, cash and cash equivalents consist of cash and cash equivalents as defined above.

(h) Inventories

Inventories are measured at the lower of cost and net realisable value.

Inventories acquired at no cost, or for nominal consideration are valued at the current replacement cost as at the date of acquisition.

(i) Property, Plant and Equipment

Each class of property, plant and equipment is carried at cost less, where applicable, accumulated depreciation and impairment losses.

(i) Land and Buildings

Land and buildings are shown at cost less subsequent depreciation for buildings.

(ii) Plant and Equipment

Plant and equipment are measured at cost less depreciation and accumulated impairment losses.

The carrying amount of plant and equipment will be reviewed annually by West Belconnen Joint Venture to ensure it is not in excess of the recoverable amount from these assets. The recoverable amount is assessed on the basis of the expected net cash flows that will be received from the assets’ employment and subsequent disposal. The expected net cash flows have been discounted to their present values in determining recoverable amounts.

155


Page 7



(i) Property, Plant and Equipment (Continued)

(iii) Depreciation

Depreciation is charged on a straight-line basis over the estimated useful lives of each part of an item of property, plant and equipment. Land is not depreciated. The estimated useful lives in the current and comparative periods are as follows:

Class of Property, Plant and Equipment Useful Life Buildings 40 years Plant and equipment 10 years Fixtures and fittings 5-10 years

The residual values and useful lives of property, plant and equipment are reviewed, and adjusted if appropriate, at the end of each reporting period.

Asset carrying amounts are written down immediately to their recoverable amount if the assets’ carrying amount is greater than its estimated recoverable amount.

Gains and losses on disposals are determined by comparing proceeds of the sale with the carrying amount. These gains or losses are included in the statement of comprehensive income.

(j) Trade and other receivables

Trade and other receivables, which generally have terms of 30 days are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method, less an allowance for any impairment.

Collectability of trade receivables is reviewed on an ongoing basis. Receivables that are known to be uncollectable are written off when identified. An allowance for impairment of trade receivables is established when there is objective evidence that the Joint Venture will not be able to collect all amounts to the original terms.

(k) Trade and other payables

Trade and other payables are carried at amortised cost and represent liabilities for goods and services provided to the Joint Venture prior to the end of the period 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. These amounts are unsecured and are usually paid within 30 days of recognition.

(l) Interest-bearing liabilities

All loans and borrowings are initially recognised at fair value of consideration received less directly attributable transaction costs. After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the effective interest method. After initial recognition, non-interest-bearing loans and borrowings are subsequently measured at amortised cost.

Borrowings are classified as non-current liabilities unless the Joint Venture has agreed to the settlement of the liability in the next 12 months after the balance date.


Page 8



(m) Income tax

The Joint Venture is a non-taxable entity.

(n) Other taxes

Revenues, expenses and assets are recognised net of the amount of goods and services tax ("GST") except:

• where the GST incurred on a purchase of goods and services is not recoverable from the taxation authority, in which case the GST is recognised as part of the cost of acquisition of the asset or as part of the expense item as applicable; and

• receivables and payables, which are stated with the amount of GST included. The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables in the Statement of Financial Position.

Cash flows are included in the Statement of Cash Flows on a gross basis and the GST components of cash flows arising from investing and financing activities, which is recoverable from, or payable to, the taxation authority, are classified as operating cash flows.

Commitments and contingencies are disclosed net of GST recoverable from, or payable to, the taxation authority.

(o) Bonds from purchasers On settlement, purchasers of land at Ginninderry will be required to provide a cash bond or bank guarantee in the amount of $5,000 as security for the performance of the purchaser's obligations under the contract of sale ("compliance bond"). Upon the purchaser completing construction of a dwelling in accordance with the terms of the contract for sale, the compliance bond will be refunded to the purchaser. Compliance bond monies received are kept in a separate bank account maintained by the Joint Venture. As the monies are held in trust for the purchasers, they have not been brought to account as an asset of the Joint Venture. At 30 June 2017 the balance of the compliance bond monies was $nil.



Page 7



(i) Property, Plant and Equipment (Continued)

(iii) Depreciation

Depreciation is charged on a straight-line basis over the estimated useful lives of each part of an item of property, plant and equipment. Land is not depreciated. The estimated useful lives in the current and comparative periods are as follows:

Class of Property, Plant and Equipment Useful Life Buildings 40 years Plant and equipment 10 years Fixtures and fittings 5-10 years

The residual values and useful lives of property, plant and equipment are reviewed, and adjusted if appropriate, at the end of each reporting period.

Asset carrying amounts are written down immediately to their recoverable amount if the assets’ carrying amount is greater than its estimated recoverable amount.

Gains and losses on disposals are determined by comparing proceeds of the sale with the carrying amount. These gains or losses are included in the statement of comprehensive income.

(j) Trade and other receivables

Trade and other receivables, which generally have terms of 30 days are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method, less an allowance for any impairment.

Collectability of trade receivables is reviewed on an ongoing basis. Receivables that are known to be uncollectable are written off when identified. An allowance for impairment of trade receivables is established when there is objective evidence that the Joint Venture will not be able to collect all amounts to the original terms.

(k) Trade and other payables

Trade and other payables are carried at amortised cost and represent liabilities for goods and services provided to the Joint Venture prior to the end of the period 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. These amounts are unsecured and are usually paid within 30 days of recognition.

(l) Interest-bearing liabilities

All loans and borrowings are initially recognised at fair value of consideration received less directly attributable transaction costs. After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the effective interest method. After initial recognition, non-interest-bearing loans and borrowings are subsequently measured at amortised cost.

Borrowings are classified as non-current liabilities unless the Joint Venture has agreed to the settlement of the liability in the next 12 months after the balance date.


Page 8



(m) Income tax

The Joint Venture is a non-taxable entity.

(n) Other taxes

Revenues, expenses and assets are recognised net of the amount of goods and services tax ("GST") except:

• where the GST incurred on a purchase of goods and services is not recoverable from the taxation authority, in which case the GST is recognised as part of the cost of acquisition of the asset or as part of the expense item as applicable; and

• receivables and payables, which are stated with the amount of GST included. The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables in the Statement of Financial Position.

Cash flows are included in the Statement of Cash Flows on a gross basis and the GST components of cash flows arising from investing and financing activities, which is recoverable from, or payable to, the taxation authority, are classified as operating cash flows.

Commitments and contingencies are disclosed net of GST recoverable from, or payable to, the taxation authority.

(o) Bonds from purchasers On settlement, purchasers of land at Ginninderry will be required to provide a cash bond or bank guarantee in the amount of $5,000 as security for the performance of the purchaser's obligations under the contract of sale ("compliance bond"). Upon the purchaser completing construction of a dwelling in accordance with the terms of the contract for sale, the compliance bond will be refunded to the purchaser. Compliance bond monies received are kept in a separate bank account maintained by the Joint Venture. As the monies are held in trust for the purchasers, they have not been brought to account as an asset of the Joint Venture. At 30 June 2017 the balance of the compliance bond monies was $nil.

157


Page 9


NOTE 3: REVENUE FROM OPERATIONS 2017

$ Revenue from continuing operations Interest income 263 Net rental income 3,190

Total Revenue from continuing operations 3,453

NOTE 4: EXPENSES Note No.

2017

$ Loss before income tax from continuing operations includes the following specific expenses:

Administration expenses Community development costs 92,232 Depreciation and amortisation 10 41,019 External audit fee 5 15,000 Loss on disposal of asset 19,640 Training and employment initiatives 115,119 Other administration and site costs 2,660,934

Total administration expenses 2,943,944

NOTE 5: REMUNERATION OF AUDITOR 2017 $ Remuneration of the ACT Audit Office:

- Audit of financial statements of the Joint Venture 15,000 Total remuneration for audit services 15,000

NOTE 6: CASH AND CASH EQUIVALENTS 2017 $

CURRENT

Cash at bank and on hand 6,912,356 Total cash and cash equivalents 6,912,356


Page 10


NOTE 7: TRADE RECEIVABLES AND OTHER ASSETS 2017

$

CURRENT

Trade debtors 30,769 Prepayments 4,550 Sundry debtors 23,026 Total trade receivables and other assets 58,345

A. Impairment of receivables Current trade receivables are generally on 30-day terms. These receivables are assessed for recoverability and an allowance for impairment is recognised when there is objective evidence that an individual trade receivable is impaired. These amounts are included in other expense items. The allowance for 30 June 2017 is nil. B. Ageing of receivables At 30 June 2017, trade receivables of $30,769 were within the trading terms of 30 days. These relate to a number of independent customers for whom there is no recent history of default. The ageing analysis of these trade receivables is as follows:

2017 $

Up to 30 days 30,769

C. Interest rate risk Information about West Belconnen Joint Venture’s exposure to interest rate risk in relation to trade and other receivables is provided in Note 14. D. Fair value and credit risk Due to the short-term nature of these receivables, their carrying amount is assumed to approximate their fair value. The maximum exposure to credit risk at the end of the reporting period is the carrying amount of each class of receivables mentioned previously. NOTE 8: INVENTORIES 2017

$ NON-CURRENT Work in progress - at cost 9,939,041 Total inventory 9,939,041



Page 9


NOTE 3: REVENUE FROM OPERATIONS 2017

$ Revenue from continuing operations Interest income 263 Net rental income 3,190

Total Revenue from continuing operations 3,453

NOTE 4: EXPENSES Note No.

2017

$ Loss before income tax from continuing operations includes the following specific expenses:

Administration expenses Community development costs 92,232 Depreciation and amortisation 10 41,019 External audit fee 5 15,000 Loss on disposal of asset 19,640 Training and employment initiatives 115,119 Other administration and site costs 2,660,934

Total administration expenses 2,943,944

NOTE 5: REMUNERATION OF AUDITOR 2017 $ Remuneration of the ACT Audit Office:

- Audit of financial statements of the Joint Venture 15,000 Total remuneration for audit services 15,000

NOTE 6: CASH AND CASH EQUIVALENTS 2017 $

CURRENT

Cash at bank and on hand 6,912,356 Total cash and cash equivalents 6,912,356


Page 10


NOTE 7: TRADE RECEIVABLES AND OTHER ASSETS 2017

$

CURRENT

Trade debtors 30,769 Prepayments 4,550 Sundry debtors 23,026 Total trade receivables and other assets 58,345

A. Impairment of receivables Current trade receivables are generally on 30-day terms. These receivables are assessed for recoverability and an allowance for impairment is recognised when there is objective evidence that an individual trade receivable is impaired. These amounts are included in other expense items. The allowance for 30 June 2017 is nil. B. Ageing of receivables At 30 June 2017, trade receivables of $30,769 were within the trading terms of 30 days. These relate to a number of independent customers for whom there is no recent history of default. The ageing analysis of these trade receivables is as follows:

2017 $

Up to 30 days 30,769

C. Interest rate risk Information about West Belconnen Joint Venture’s exposure to interest rate risk in relation to trade and other receivables is provided in Note 14. D. Fair value and credit risk Due to the short-term nature of these receivables, their carrying amount is assumed to approximate their fair value. The maximum exposure to credit risk at the end of the reporting period is the carrying amount of each class of receivables mentioned previously. NOTE 8: INVENTORIES 2017

$ NON-CURRENT Work in progress - at cost 9,939,041 Total inventory 9,939,041

159


Page 11


NOTE 9: CURRENT TAX ASSETS 2017

$ CURRENT Net GST receivable 893,207 Total current tax assets 893,207

NOTE 10: PROPERTY, PLANT AND EQUIPMENT 2017

$ LAND AND BUILDINGS At cost 3,977,592 Less accumulated depreciation (24,860) Total land and buildings 3,952,732 FURNITURE AND FITTINGS At cost 109,906 Less accumulated depreciation (3,183) Total furniture and fittings 106,723 SOFTWARE At cost 185,715 Less accumulated depreciation (8,236) Total software 177,479 Total Property, Plant and Equipment 4,236,934 Movements in Carrying Amounts Movement in the carrying amounts for each class of property, plant and equipment between the beginning and the end of the current financial period:

Land and Buildings

Furniture and Fittings Software Office

Fitout Total

$ $ $ $ $ Carrying amount at 21 November 2016 - - - - - Additions at cost 3,977,592 109,906 185,715 24,380 4,297,593 Disposals - - - (19,640) (19,640) Depreciation (24,860) (3,183) (8,236) (4,740) (41,019) Carrying amount at 30 June 2017 3,952,732 106,723 177,479 - 4,236,934


Page 12


NOTE 11: TRADE CREDITORS AND OTHER PAYABLES 2017 $ CURRENT Trade creditors 932,568 Accrued charges 433,534 Total trade and other payables 1,366,102

(a) Trade payables Trade payables are generally due and payable within 30 days and relate to costs pertaining to all aspects of the land development.

(b) Fair value and credit risk Due to the short term nature of these payables, their carrying value is assumed to approximate their fair value. The maximum exposure to credit risk is the carrying value of payables.

NOTE 12:OTHER LIABILITIES 2017 $ NON-CURRENT Revenue received in advance 1,779,180 Total other liabilities 1,779,180 Revenue Received in Advance relates to deposits received for land sales for sales contracts that have been exchanged but are yet to settle. NOTE 13: LOANS AND BORROWINGS 2017 $ NON-CURRENT INTEREST BEARING LIABILITIES Land Development Agency 23,433,039 Total interest bearing liabilities 23,433,039 NON-CURRENT NON-INTEREST BEARING LIABILITIES Riverview Developments (ACT) Pty Ltd 3,477 Total non-interest bearing liabilities 3,477 Total loans and borrowings 23,436,516 NOTE 14: FINANCIAL RISK MANAGEMENT The Joint Venture's principal financial instruments comprise receivables, payables and cash.

The Joint Venture Board manages the Joint Venture's exposure to key financial risks, which include interest rate risk, credit risk and liquidity risk. The overall financial risk management focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance of the Joint Venture.

The Joint Venture Board identifies, evaluates and mitigates financial risks.



Page 11


NOTE 9: CURRENT TAX ASSETS 2017

$ CURRENT Net GST receivable 893,207 Total current tax assets 893,207

NOTE 10: PROPERTY, PLANT AND EQUIPMENT 2017

$ LAND AND BUILDINGS At cost 3,977,592 Less accumulated depreciation (24,860) Total land and buildings 3,952,732 FURNITURE AND FITTINGS At cost 109,906 Less accumulated depreciation (3,183) Total furniture and fittings 106,723 SOFTWARE At cost 185,715 Less accumulated depreciation (8,236) Total software 177,479 Total Property, Plant and Equipment 4,236,934 Movements in Carrying Amounts Movement in the carrying amounts for each class of property, plant and equipment between the beginning and the end of the current financial period:

Land and Buildings

Furniture and Fittings Software Office

Fitout Total

$ $ $ $ $ Carrying amount at 21 November 2016 - - - - - Additions at cost 3,977,592 109,906 185,715 24,380 4,297,593 Disposals - - - (19,640) (19,640) Depreciation (24,860) (3,183) (8,236) (4,740) (41,019) Carrying amount at 30 June 2017 3,952,732 106,723 177,479 - 4,236,934


Page 12


NOTE 11: TRADE CREDITORS AND OTHER PAYABLES 2017 $ CURRENT Trade creditors 932,568 Accrued charges 433,534 Total trade and other payables 1,366,102

(a) Trade payables Trade payables are generally due and payable within 30 days and relate to costs pertaining to all aspects of the land development.

(b) Fair value and credit risk Due to the short term nature of these payables, their carrying value is assumed to approximate their fair value. The maximum exposure to credit risk is the carrying value of payables.

NOTE 12:OTHER LIABILITIES 2017 $ NON-CURRENT Revenue received in advance 1,779,180 Total other liabilities 1,779,180 Revenue Received in Advance relates to deposits received for land sales for sales contracts that have been exchanged but are yet to settle. NOTE 13: LOANS AND BORROWINGS 2017 $ NON-CURRENT INTEREST BEARING LIABILITIES Land Development Agency 23,433,039 Total interest bearing liabilities 23,433,039 NON-CURRENT NON-INTEREST BEARING LIABILITIES Riverview Developments (ACT) Pty Ltd 3,477 Total non-interest bearing liabilities 3,477 Total loans and borrowings 23,436,516 NOTE 14: FINANCIAL RISK MANAGEMENT The Joint Venture's principal financial instruments comprise receivables, payables and cash.

The Joint Venture Board manages the Joint Venture's exposure to key financial risks, which include interest rate risk, credit risk and liquidity risk. The overall financial risk management focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance of the Joint Venture.

The Joint Venture Board identifies, evaluates and mitigates financial risks.

161


Page 13

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD FROM 21 NOVEMBER 2016 TO 30 JUNE 2017 (CONTINUED) NOTE 14: FINANCIAL RISK MANAGEMENT (CONTINUED)

(a) Credit risk Credit risk arises from the financial assets of the Joint Venture, which comprises cash and cash equivalents and trade and other receivables.

The Joint Venture’s exposure to credit risk arises from the potential default of the counter party, with a maximum exposure to the carrying amount of these instruments. As these counterparties are recognised third parties, there is no requirement for collateral. The Joint Venture seeks to deal only with creditworthy counterparties, and obtains sufficient collateral, where appropriate, as a means of mitigating the risk of financial loss from defaults. Ongoing checks, as relevant, are performed by management to ensure that settlement terms detailed in the individual contracts are adhered to. The cash component of financial assets is considered to have a low credit risk, as it is maintained within accounts operated by a reputable financial institution. The Joint Venture's financial institution is the only concentration of credit risk for the Joint Venture.

The carrying amount of financial assets recorded in the financial statements, net of any allowances for losses, represents the Joint Venture’s maximum exposure to credit risk without taking into consideration the value of any collateral obtained: Maximum Credit

Exposure

FINANCIAL ASSETS AND OTHER CREDIT EXPOSURES 2017 $ Cash at bank 6,912,356 Trade debtors 30,769 Net exposure 6,943,125

(b) Interest rate risk

The Joint Venture is subject to exposure to interest rate risk due to fluctuations in the prevailing levels of market interest rates. The Joint Venture’s interest rate risk is managed by maintaining an appropriate floating interest rate for its cash assets. These activities are evaluated regularly to ensure that the Joint Venture is not exposed to interest rate movements that could adversely impact its ability to meet its financial obligations. At balance date, the Joint Venture had the financial assets exposed to variable interest rate risk that were not designated in cash flow hedges.

Interest rate sensitivity analysis The sensitivity analysis below has been determined based on the exposure to interest rates in existence at balance date, and the stipulated change taking place at the beginning of the financial year and held constant throughout the reporting period. A 100 basis point increase or decrease used in the interest rate sensitivity analysis was determined based on the Joint Venture’s relationship with the financial institutions and represents management’s assessment of the possible change in interest rates.


Page 14


The potential impact of a change in interest rates by +/-100 basis points on profit or loss and equity has been tabulated below:

30 June 2017 -100 basis points +100 basis points

Carrying Profit or loss Equity Profit or loss Equity amount $ $ $ $ $

Financial assets Cash and cash equivalents Trade and other receivables

6,912,356

30,769

(69,124)

(308)

(69,124)

(308)

69,124

308

69,124

308

Total (decrease)/increase 6,943,125 (69,432) (69,432) 69,432 69,432

(c) Liquidity risk

The Joint Venture regularly updates and reviews its cash flow forecasts to assist in managing its liquidity. To limit its exposure to liquidity risk, the Joint Venture ensures that it does not have a large portion of its financial liabilities maturing in any one reporting period and that, at any particular point in time, it has a sufficient amount of current financial assets to meet its current financial liabilities.

The carrying value and maturity of the Joint Venture's financial liabilities has been tabulated below:

30 June 2017 1 year or less 1 - 5 years > 5 years Total

$ $ $ $

Financial liabilities Trade Creditors and other payables Revenue Received in Advance Borrowings

1,366,102

- -

-

1,779,180 23,436,516

- - -

1,366,102 1,779,180

23,436,516 Net Maturity 1,366,102 25,215,696 - 26,581,798

(d) Price risk

Price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. The Joint Venture does not hold any financial assets or liabilities which are subject to price risk.



Page 13


(a) Credit risk Credit risk arises from the financial assets of the Joint Venture, which comprises cash and cash equivalents and trade and other receivables.

The Joint Venture’s exposure to credit risk arises from the potential default of the counter party, with a maximum exposure to the carrying amount of these instruments. As these counterparties are recognised third parties, there is no requirement for collateral. The Joint Venture seeks to deal only with creditworthy counterparties, and obtains sufficient collateral, where appropriate, as a means of mitigating the risk of financial loss from defaults. Ongoing checks, as relevant, are performed by management to ensure that settlement terms detailed in the individual contracts are adhered to. The cash component of financial assets is considered to have a low credit risk, as it is maintained within accounts operated by a reputable financial institution. The Joint Venture's financial institution is the only concentration of credit risk for the Joint Venture.

The carrying amount of financial assets recorded in the financial statements, net of any allowances for losses, represents the Joint Venture’s maximum exposure to credit risk without taking into consideration the value of any collateral obtained: Maximum Credit

Exposure

FINANCIAL ASSETS AND OTHER CREDIT EXPOSURES 2017 $ Cash at bank 6,912,356 Trade debtors 30,769 Net exposure 6,943,125

(b) Interest rate risk

The Joint Venture is subject to exposure to interest rate risk due to fluctuations in the prevailing levels of market interest rates. The Joint Venture’s interest rate risk is managed by maintaining an appropriate floating interest rate for its cash assets. These activities are evaluated regularly to ensure that the Joint Venture is not exposed to interest rate movements that could adversely impact its ability to meet its financial obligations. At balance date, the Joint Venture had the financial assets exposed to variable interest rate risk that were not designated in cash flow hedges.

Interest rate sensitivity analysis The sensitivity analysis below has been determined based on the exposure to interest rates in existence at balance date, and the stipulated change taking place at the beginning of the financial year and held constant throughout the reporting period. A 100 basis point increase or decrease used in the interest rate sensitivity analysis was determined based on the Joint Venture’s relationship with the financial institutions and represents management’s assessment of the possible change in interest rates.


Page 14


The potential impact of a change in interest rates by +/-100 basis points on profit or loss and equity has been tabulated below:

30 June 2017 -100 basis points +100 basis points

Carrying Profit or loss Equity Profit or loss Equity amount $ $ $ $ $

Financial assets Cash and cash equivalents Trade and other receivables

6,912,356

30,769

(69,124)

(308)

(69,124)

(308)

69,124

308

69,124

308

Total (decrease)/increase 6,943,125 (69,432) (69,432) 69,432 69,432

(c) Liquidity risk

The Joint Venture regularly updates and reviews its cash flow forecasts to assist in managing its liquidity. To limit its exposure to liquidity risk, the Joint Venture ensures that it does not have a large portion of its financial liabilities maturing in any one reporting period and that, at any particular point in time, it has a sufficient amount of current financial assets to meet its current financial liabilities.

The carrying value and maturity of the Joint Venture's financial liabilities has been tabulated below:

30 June 2017 1 year or less 1 - 5 years > 5 years Total

$ $ $ $

Financial liabilities Trade Creditors and other payables Revenue Received in Advance Borrowings

1,366,102

- -

-

1,779,180 23,436,516

- - -

1,366,102 1,779,180

23,436,516 Net Maturity 1,366,102 25,215,696 - 26,581,798

(d) Price risk

Price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. The Joint Venture does not hold any financial assets or liabilities which are subject to price risk.

163


Page 15

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD FROM 21 NOVEMBER 2016 TO 30 JUNE 2017 (CONTINUED) NOTE 15: RELATED PARTIES (a) Joint Venture Partners

The names of the partners who formed the Joint Venture are: Australian Capital Territory (60%) Riverview Developments (ACT) Pty Limited (40%)

Riverview Projects (ACT) Pty Limited is the project manager of West Belconnen Joint Venture.

Riverview Sales and Marketing Pty Limited is the sales agent for West Belconnen Joint Venture.

The members of the Joint Venture Board are: Michael Scott (Independent Chairperson) appointed 21 November 2016 James Shonk (Land Development Agency) appointed 21 November 2016 and resigned 30 June 2017 Thomas Gordon (Land Development Agency) appointed 21 November 2016 David Maxwell (Riverview Developments) appointed 21 November 2016 Thomas Corkhill (Riverview Developments) appointed 21 November 2016

(b) Transactions with related parties during the period

Transactions between the Joint Venture and the Land Development Agency as the appointed representative of the Australian Capital Territory, its main shareholder, are on normal commercial terms and conditions.

(c) Deposits held by related parties As at 30 June 2017 $435,000 of which $304,660 related to blocks exchanged and $130,340 related to blocks yet to be exchanged was held as holding deposits by Riverview Sales and Marketing Pty Limited on behalf of unrelated prospective purchasers of land from the Joint Venture.

(d) Borrowings from related parties Total borrowings from related parties at 30 June 2017 was $23,436,516 as detailed in Note 13.

Nature of transaction Transaction value the period from

21 November 2016 to 30 June 2017

$


at 30 June 2017

$

Amount Committed at

30 June 2017

$ Receiving Services Services received (aggregate) 2,548,277 (655,092) 4,469,366


Page 16


NOTE 16: KEY MANAGEMENT PERSONNEL DISCLOSURES

(a) Key Management Personnel Compensation – 21 November 2016 to 30 June 2017 Period from


$ Short-term employee benefits - Post employment benefits - Other long-term benefits - Termination benefits - Board member fees 42,808 Total Compensation by the Joint Venture to KMP $42,808 There were no other transactions with key management personnel or parties related to key management personnel NOTE 17: CONTINGENCIES (a) Contingent Assets

No contingent assets exist at 30 June 2017.

(b) Contingent Liability No contingent liabilities exist at 30 June 2017.



Page 15

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD FROM 21 NOVEMBER 2016 TO 30 JUNE 2017 (CONTINUED) NOTE 15: RELATED PARTIES (a) Joint Venture Partners

The names of the partners who formed the Joint Venture are: Australian Capital Territory (60%) Riverview Developments (ACT) Pty Limited (40%)

Riverview Projects (ACT) Pty Limited is the project manager of West Belconnen Joint Venture.

Riverview Sales and Marketing Pty Limited is the sales agent for West Belconnen Joint Venture.

The members of the Joint Venture Board are: Michael Scott (Independent Chairperson) appointed 21 November 2016 James Shonk (Land Development Agency) appointed 21 November 2016 and resigned 30 June 2017 Thomas Gordon (Land Development Agency) appointed 21 November 2016 David Maxwell (Riverview Developments) appointed 21 November 2016 Thomas Corkhill (Riverview Developments) appointed 21 November 2016

(b) Transactions with related parties during the period

Transactions between the Joint Venture and the Land Development Agency as the appointed representative of the Australian Capital Territory, its main shareholder, are on normal commercial terms and conditions.

(c) Deposits held by related parties As at 30 June 2017 $435,000 of which $304,660 related to blocks exchanged and $130,340 related to blocks yet to be exchanged was held as holding deposits by Riverview Sales and Marketing Pty Limited on behalf of unrelated prospective purchasers of land from the Joint Venture.

(d) Borrowings from related parties Total borrowings from related parties at 30 June 2017 was $23,436,516 as detailed in Note 13.

Nature of transaction Transaction value the period from


$


at 30 June 2017

$

Amount Committed at

30 June 2017

$ Receiving Services Services received (aggregate) 2,548,277 (655,092) 4,469,366


Page 16


NOTE 16: KEY MANAGEMENT PERSONNEL DISCLOSURES

(a) Key Management Personnel Compensation – 21 November 2016 to 30 June 2017 Period from


$ Short-term employee benefits - Post employment benefits - Other long-term benefits - Termination benefits - Board member fees 42,808 Total Compensation by the Joint Venture to KMP $42,808 There were no other transactions with key management personnel or parties related to key management personnel NOTE 17: CONTINGENCIES (a) Contingent Assets

No contingent assets exist at 30 June 2017.

(b) Contingent Liability No contingent liabilities exist at 30 June 2017.

165


Page 17


NOTE 18: CASH FLOW INFORMATION 30 June 2017

$ a. Reconciliation of cash Cash at bank and on hand 6,912,356 Total cash and cash equivalents 6,912,356 b. Reconciliation of (loss) after income tax to net cash (outflows) from

operating activities.

Net (loss) for the year (5,541,915) Add/(less) non-cash items Depreciation and amortisation 41,019 Loss on disposal 19,640 Changes in operating assets and liabilities: (Increase) in receivables (53,796) (Increase) in prepayments (4,550) (Increase) in inventories (9,939,041) Increase in trade and other payables 1,366,102 Increase in revenue received in advance 1,779,180 (Increase) in net tax receivable (893,206)

Net cash (outflows) from operating activities (13,226,567)

NOTE 19: EVENTS OCCURRING AFTER BALANCE DATE

There were no events occurring after balance date that had a material effect on the financial statements of the Joint Venture.



Page 17


NOTE 18: CASH FLOW INFORMATION 30 June 2017

$ a. Reconciliation of cash Cash at bank and on hand 6,912,356 Total cash and cash equivalents 6,912,356 b. Reconciliation of (loss) after income tax to net cash (outflows) from

operating activities.

Net (loss) for the year (5,541,915) Add/(less) non-cash items Depreciation and amortisation 41,019 Loss on disposal 19,640 Changes in operating assets and liabilities: (Increase) in receivables (53,796) (Increase) in prepayments (4,550) (Increase) in inventories (9,939,041) Increase in trade and other payables 1,366,102 Increase in revenue received in advance 1,779,180 (Increase) in net tax receivable (893,206)

Net cash (outflows) from operating activities (13,226,567)

NOTE 19: EVENTS OCCURRING AFTER BALANCE DATE

There were no events occurring after balance date that had a material effect on the financial statements of the Joint Venture.

167

C.3 CAPITAL WORKSThe LDA did not receive appropriation for Capital Works. The following table relates to Development Works undertaken by the LDA. All figures are GST inclusive.

CIVIL INFRASTRUCTURE CONSTRUCTION

NEW WORKS

Projects Original Project Value

($)

Year of Approval

Original Estimated

Completion Date

Revised Estimated

Completion Date

Revised Project Value

($)

Belconnen Block 29 Section 149 Former Belconnen Water Police Facility Demolition

428,717 2016 September 2017

September 2017

428,717

Belconnen Block 29 Section 149 Design and Superintendency Services

84,975 2016 September 2017

September 2017

84,975

Braddon Block 2 Section 8 Northbourne Flats Superintendency for Demolition

69,830 2017 April 2019 April 2019 69,830

City to the Lake Point Park Principal’s Authorised Person (PAP) Services

149,087 2016 August 2017 August 2018 317,717

Greenway East Superintendency 389,414 2016 December 2017

April 2018 389,414

Griffith Section 43 Superintendency for Menslink Building Demolition

102,997 2015 November 2017

February 2018 106,367

Hume West 2A Landscape Design 44,500 2017 July 2017 December 2017

44,500

Hume West Paspaley Street Extension Construction

224,128 2017 July 2017 April 2018 241,425

Kingston Site 2 Boardwalk Construction 2,057,157 2016 February 2018 October 2018 2,367,632

Kingston Site 2 Boardwalk Superintendency

41,030 2016 December 2018

December 2018

41,030

Monash Section 56 Blocks 14 and 15 Infrastructure Works

786,000 2017 December 2017

December 2017

Not yet tendered

Monash Section 56 Blocks 14 and 15 Design and Superintendency

55,200 2017 June 2017(Design)

July 2017(Design)

60,500

Monash Block 7 Section 52 Infrastructure Works

300,000 2017 June 2017 August 2017 385,000

Monash Block 7 Section 52 Design and Superintendency

75,630 2016 January 2017(Design)

January 2017(Design)

82,500

Moncrieff Trails and Bridge Superintendency

156,500 2017 November 2017

December 2018

156,500

Moncrieff Trails and Bridge Construction 2,498,779 2017 November 2017

December 2017

2,498,779

Red Hill Group Housing Demolition Superintendency

139,556 2016 November 2017

March 2018 139,556

Red Hill Group Housing Demolition Contract

5,265,907 2017 March 2018 March 2018 5,265,907



($)

Year of Approval

Original Estimated

Completion Date

Revised Estimated

Completion Date


($)

Stromlo Cottage Sewer Rising Main Construction

77,327 2017 June 2018 August 2017 77,327

Taylor 1 Stage 1B Electrical Reticulation 156,522 2016 September 2017

September 2017

156,522

Taylor 1 Stage 1C Electrical Reticulation 209,536 2017 June 2018 June 2018 209,536

Taylor 1 Stage 2A Electrical Reticulation 151,186 2016 October 2017 October 2017 151,186

Taylor 1 Stage 2B Electrical Reticulation 290,070 2017 April 2018 April 2018 290,070

Taylor Luminaire Supply Major Collector Roads

131,274 2017 November 2017

November 2017

131,274

Taylor 1 Residential Estate Streetlight Column Supply

900,663 2017 February 2017 December 2017

900,663

Taylor 1 Stage 2 and 3 Construction 29,516,735 2016 July 2018 July 2018 29,516,735

Taylor 2 Planning Consultancy 526,482 2016 August 2018 August 2018 705,122

Taylor 2 Engineering Consultancy 1,941,383 2016 August 2018 August 2018 2,220,439

Taylor 3 Planning Consultancy 295,657 2017 March 2019 March 2019 295,657

Taylor 3 Engineering Consultancy 1,175,273 2016 December 2018

December 2018

1,175,273

West Basin Sewer Masterplan 151,060 2016 February 2017 September 2017

151,060

Whitlam Stage 1 and 2 Engineering Consultancy

2,666,070 2017 June 2021 June 2021 2,680,810

Whitlam Stage 1 - 4 Planning Consultancy

1,990,745 2017 June 2021 June 2021 1,990,745

169

WORKS IN PROGRESS


($)

Year of Approval

Original Estimated

Completion Date

Revised Estimated

Completion Date


($)

City to the Lake Point Park Design and Construction1

361,955 2015 November 2017

April 2018 13,584,526

Coombs Broadband 4,304,355 2011 March 2018 March 2018 4,304,355

Coombs Residential Estate Site Superintendency

3,202,310 2012 December 2017

June 2018 4,550,103

Denman Prospect Stage 1B Planning and Engineering Consultancy

1,708,537 2015 December 2017

December 2017

1,708,537

Denman Prospect Stage 1A Superintendency

1,489,000 2014 April 2016 December 2017

1,569,388

Greenway East Planning and Engineering Consultancy

518,243 2016 July 2016 August 2017 549,923

Greenway West Engineering and Landscape Construction Services

870,471 2013 December 2015

October 2017 871,901

Gungahlin Town Centre East Estate Planning and Engineering

479,736 2015 April 2016 October 2018 605,712

Higgins Block 6 Section 11 Primary School Demolition

1,047,091 2014 August 2016 August 2016 1,047,091

Lawson South Stage 1 Residential Estate Construction Services Engineering Consultancy

682,429 2012 December 2015

October 2017 1,236,796

Lawson South Planning and Engineering Consultancy

1,003,727 2011 December 2012

March 2018 2,161,119

Lawson Stage 2 11kV Relocation Design 1,079,480 2015 June 2016 September 2016

1,079,480

Kingston Foreshore Sewer Odour Control Unit Engineering Consultancy

205,727 2014 October 2015 December 2017

319,989

Moncrieff East Planning and Engineering 2,007,085 2011 August 2014 June 2018 3,190,859

Moncrieff West Planning and Engineering

2,296,099 2011 December 2016

December 2017

2,630,466

Moncrieff West Construction Services Engineering Consultancy

1,591,925 2014 May 2017 December 2017

1,591,925

Moncrieff East Construction Services Engineering Consultancy

1,997,341 2014 June 2016 December 2017

2,315,929

North Wright and North Coombs Planning and Engineering Consultancy

1,267,317 2016 June 2017 April 2018 1,267,317

Parkes Section 3 Design and Construction (Part Constitution Ave Upgrade)

3,107,152 2014 November 2015

August 2017 4,181,977



($)

Year of Approval

Original Estimated

Completion Date

Revised Estimated

Completion Date


($)

Red Hill Precinct – ARI: Planning and Engineering Consultancy (Estate Development Plan)

582,740 2016 May 2017 July 2017 592,000

Taylor 1 Stage 1Civil Construction

28,699,141 2016 December 2017

June 2018 28,699,141

Taylor 1 Stage 1 Telecommunications 324,200 2015 December 2017

December 2017

324,200

Taylor 1 Principal Approved Delegate 1,394,525 2016 May 2018 June 2018 1,394,525

Taylor 1 EDP Engineering Services 1,741,302 2015 September 2017

June 2018 2,121,366

Taylor 1 EDP Planning Consultancy 358,455 2015 September 2017

June 2018 476,102

Throsby Stage 1 Civil Construction 19,249,543 2015 February 2017 February 2018 19,249,543

Throsby Stage 2 Civil Construction 24,192,130 2015 April 2017 April 2018 24,192,130

Throsby Stage 3 Civil Construction 15,311,994 2015 February 2018 February 2018 15,311,994

Throsby Construction Principal Approved Delegate

1,785,945 2015 August 2018 August 2018 1,785,945

Throsby Engineering Project Management PAP

190,080 2015 July 2016 June 2018 190,080

Wright Broadband 2,500,000 2011 March 2018 March 2018 2,500,000

171

COMPLETED PROJECTS

Projects Original Estimate ($)

Final Cost ($) Estimated Completion

Practical Completion

Financially Complete

Barton Blocks 24 26 27 and 28 Section 33 Grevillea Park Infrastructure Works

1,165,504 1,199,604 October 2017 January 2017 Yes

Barton Section 33 Superintendency Consultancy Services

54,420 81,595 July 2017 March 2017 Yes

Belconnen Block 2 Section 23 Police and Remand Centre Demolition

834,533 787,517 October 2016 June 2016 Yes

Belconnen Block 2 Section 23 Police and Remand Centre Demolition Superintendency

84,030 84,030 October 2016 June 2016 Yes

Braddon Block 1 Section 52 Currong Flats Demolition

14,136,754 November 2016

April 2017 Yes

Campbell Section 5 Planning and Engineering Consultancy

952,136 2,885,193 June 2015 August 2016 Yes

Campbell Block 14 Section 118 Water Meters (Construction)

19,250 20,350 April 2017 May 2017 Yes

Coombs and Wright Civil Project Management

25,000 30,000 September 2016

September 2016

Yes

Denman Prospect 1A2 Substation Relocation

75,244 75,244 July 2016 July 2016 Yes

Denman Prospect Stage 1A Planning and Engineering Consultancy

1,067,935 1,207,243 January 2017 January 2017 Yes

Development Management Services 242,000 242,000 December 2016

December 2016

Yes

Dickson Block 2 Section 33 Motor Registry Vehicle Inspection Station Needs Analysis/Specifications

113,630 113,630 August 2016 October 2016 Yes

Downer Block 17 Section 61 Relocation of Existing Sewer Main, including ICON Water Sewer Upgrade

1,311,793 1,476,793 December 2016

May 2017 No

Downer Sewer Augmentation Construction Phase Services Superintendency

62,150 62,150 February 2018 June 2017 No

Furzer Street Civil Construction 5,557,882 6,757,882 December 2015

August 2016 No

Furzer Street Precinct: Melrose Drive Intersections Works Superintendency

476,907 579,727 May 2016 August 2016 No


Projects Original Estimate ($)

Final Cost ($) Estimated Completion



Garran Block 3 Section 24 Design and Superintendency

51,370 62,700 March 2015 May 2016 Yes

Greenway East Telstra Realignments 172,210 220,024 June 2016 February 2016 Yes

Gungahlin Town Centre Signage Installation

147,647 147,647 February 2017 February 2017 Yes

Gungahlin Project Management GTS 2016 - January 2016 to January 2017

162,250 162,250 January 2017 January 2017 Yes

Hume Block 81 Section 22 Civil Construction

276,492 258,600 November 2016

November 2016

Yes

Hume West Stage A (Including Variation for Stage C) Site Management / Superintendency

290,290 540,710 May 2016 May 2016 Yes

Lyneham, Block 8 Section 51 Owen Flats Superintendency

89,650 81,874 June 2017 May 2017 Yes

Lyneham, Block 8 Section 51 Owen Flats Demolition

785,112 September 2016

April 2017 Yes

Lyneham Block 12 Section 50 Superintendency for Macarthur House Demolition

202,747 April 2017 April 2017 Yes

Mitchell Block 29 Section 4 Electrical Conduit Installation

35,370 35,370 January 2017 January 2017 Yes

Narrabundah Block 45 Section 100 Demolition

1,171,110 1,147,574 April 2017 May 2017 Yes

Narrabundah Block 45 Section 100 Demolition Superintendency

74,000 104,000 June 2016 June 2017 Yes

Parkes Section 3 Planning and Engineering Consultancy

899,960 1,017,500 April 2015 June 2017 Yes

Red Hill Housing Precinct Site Investigation Report

30,816 31,031 August 2016 October 2016 Yes

Throsby Project Manager Engineering Consultancy Total Construction Professional

215,600 215,600 October 2016 October 2016 Yes

Throsby Planning and Engineering Design Consultancy

2,084,220 2,655,757 March 2016 December 2016

Yes

Throsby Streetlight Column Procurement

538,047 538,047 December 2016

December 2016

Yes

Throsby Stage 1 Electrical and Streetlight Reticulation

537,856 537,856 March 2017 March 2017 Yes


762,421 762,421 May 2018 May 2018 Yes


406,991 406,991 April 2018 April 2018 Yes

Throsby Street Light Luminaires 192,665 192,665 June 2016 June 2016 Yes

173

LANDSCAPE CONSTRUCTION

NEW WORKS


($)

Year of Approval

Original Estimated

Completion Date

Revised Estimated

Completion Date


($)

Kingston Block 4 Section 66 Landscaping

200,657 2016 March 2018 March 2018 200,657

Kingston Block 1 and 2 Section 66 Landscaping

243,039 2016 June 2018 June 2018 243,039

Kingston Stage 4 Landscaping Superintendency

131,969 2016 December 2018

December 2018

131,969

Moncrieff 6B Superintendency 199,245 2016 September 2018

September 2018

221,872

Moncrieff 6B Construction 3,355,352 2016 August 2018 August 2018 3,512,053

Moncrieff CRIP Construction 6,087,613 2016 March 2019 March 2019 6,114,637

Stromlo Cottage Landscape Works 25,000 2016 September 2017

September 2017

25,000

Throsby Entry Feature Design 48,200 2016 July 2017 December 2018

162,250

WORKS IN PROGRESS


($)

Year of Approval

Original Estimated

Completion Date

Revised Estimated

Completion Date


($)

Coombs 3A Open Space Landscape Design and Path Network

74,800 2015 November 2016

November 2016

246,451

Coombs Landscape Superintendency Consultancy

355,286 2014 September 2016

December 2017

683,876

Greenway West Open Space Landscaping

3,501,147 2013 May 2016 October 2017 3,562,832

Kingston Foreshore Landscape Rectification

1,782,000 2014 October 2013 August 2019 3,644,744

Kingston Foreshore Verge Landscaping 508,862 2015 August 2017 August 2019 508,862

Lawson South Open Space Stages 1D and 1B1

2,970,121 2015 May 2017 May 2019 3,056,338

Lawson Landscape Stage 1 Superintendency

535,845 2011 January 2017 September 2017

547,995


COMPLETED PROJECTS

Projects Original Estimate $

Final Cost $ Estimated Completion



Campbell Section 5 Landscape Works 3,815,566 4,039,074 December 2015

December 2015

Yes

Coombs Open Space Landscape Construction

9,192,607 8,362,342 December 2016

December 2016

No

Franklin CRIP Landscape Construction 3,419,833 3,419,833 May 2015 October 2016 No

Franklin CRIP Landscape Design / Superintendency

107,030 299,874 October 2016 October 2016 No

Wright Stage 2 Landscape Construction 3,628,057 3,758,379 March 2015 August 2016 No

Wright and Coombs Landscape Project Management

307,200 680,516 September 2015

September 2016

No

Wright Stage 1B and 2 Landscape Superintendency

435,230 600,000 February 2016 August 2016 No

Wright (Including Coombs Stage 1) Landscape Design Consultancy

343,926 554,607 August 2012 July 2016 Yes


Joey LeeDirector, FinanceSuburban Land Agency+61 2 6205 [email protected]

175

C.4 ASSET MANAGEMENTASSETS MANAGEDThe LDA managed assets with a total value of $42.399 million as at 30 June 2017. Assets managed are shown in the table below.

Asset Type Comprising Value $’000

Land Land in Tuggeranong, Belconnen and Molonglo district 35,736

Buildings Westside containers, West Basin boardwalk, rowing shed in Barton and office building of West Belconnen Joint Arrangement

5,981

Leasehold Improvements Fit-out on Ground Floor, Level 6 and Level 7 Transact House 19

Plant and Equipment Furniture, Level 7 TransACT House and Furniture of West Belconnen Joint Arrangement

77

Community and Heritage Assets John Fowler & Co Locomotive 442

Intangible Assets Customer Relationship Management Software 144

During 2016-17 the following assets were added to the LDA’s asset register:

> Land in Belconnen and Molonglo district; and

> West Basin boardwalk, a rowing shed in Barton and the inclusion of assets from the West Belconnen Joint Arrangement.

As at 30 June 2017 the LDA had nil properties which were not being utilised by the Agency or had been identified as potentially surplus.

ASSETS MAINTENANCE AND UPGRADEDuring 2016-17, the LDA managed and maintained the land purchased in Tuggeranong, Belconnen and Molonglo district. There were no asset upgrades in 2016-17.

The LDA conducted nil audits (condition, hazardous materials, building etc) of its assets in 2016-17.

OFFICE ACCOMMODATIONAs at 30 June 2017, the LDA accommodated 118 employees and contractors occupying 1,596m2 in TransACT House, 470 Northbourne Avenue Dickson. The average area occupied by each person was 14m2. The staffing number reflected above will not be the same as the staffing numbers (either FTE or headcount) listed in Section B.8 Human Resource Management. The number above reflects the workpoint utilisation at the LDA’s office and includes seconded officers, contractors and consultants, as well as employees.




C.5 GOVERNMENT CONTRACTINGThe LDA undertook procurement activities for a range of goods, services and works. Details of those contracts on the ACT Government Contracts Register valued at $25,000 or more with an execution date between 1 July 2016 and 30 June 2017, listed against the LDA are provided on the following pages.



177

Cont

ract

Titl

e Pr

ocur

emen

t M

etho

dolo

gyPr

ocur

emen

t Ty

peEx

empt

ion

from

Quo

tatio

n an

d Te

nder

Th

resh

old

Requ

irem

ents

Cont

ract

or N

ame

Cont

ract

am

ount

$ (G

ST

Inc)

Exec

utio

n da

teEx

piry

Dat

e S

mal

l to

Med

ium

En

terp

rise

Land

scap

e W

orks

(Mon

crie

ff St

age

6B)

Publ

ic T

ende

rW

orks

No

Able

Lan

dsca

pes

3,35

5,35

2 23

/8/1

621

/3/1

8Ye

s

Elec

tric

al R

etic

ulat

ion

(Tay

lor 1

Sta

ge 1

B)Pu

blic

Ten

der

Wor

ksN

oAc

tew

AGL

Dist

ribut

ion

156,

522

6/9/

166/

9/18

No

Elec

tric

al R

etic

ulat

ion

(Tay

lor 2

A)Pu

blic

Ten

der

Wor

ksN

oAc

tew

AGL

Dist

ribut

ion

151,

186

17/1

0/16

17/1

0/17

No

Elec

tric

al R

etic

ulat

ion

(Tay

lor 1

Sta

ge 1

C)Si

ngle

sele

ctW

orks

Yes

Acte

wAG

L Di

strib

utio

n20

9,53

6 30

/1/1

730

/6/1

8N

o

Elec

tric

al R

etic

ulat

ion

(Tay

lor 2

B)Pu

blic

Ten

der

Wor

ksN

oAc

tew

AGL

Dist

ribut

ion

290,

070

12/4

/17

12/4

/18

No

Cont

ainm

ent A

sses

smen

t (Be

lcon

nen

Sect

ion

21)

Quo

tatio

nsCo

nsul

tanc

yN

oAE

COM

Aus

t Pty

Ltd

132,

910

19/1

2/16

31/3

/17

No

Desi

gn S

ervi

ce: A

cces

s Roa

d an

d Du

dley

Stre

et

Upg

rade

(Can

berra

Bric

kwor

ks)

Pane

lCo

nsul

tanc

yN

oAE

COM

Aus

tralia

89,6

50

20/1

2/16

31/7

/17

No

Infra

stru

ctur

e W

orks

(Gre

ville

a Pa

rk, B

arto

n Se

ctio

n 33

Blo

cks 2

4, 2

6, 2

7, 2

8)Pu

blic

Ten

der

Wor

ksN

oBM

D Co

nstr

uctio

ns P

ty

Ltd

1,16

5,50

5 7/

7/16

25/1

0/17

No

Resi

dent

ial E

stat

e Co

nstr

uctio

n (T

aylo

r 1 S

tage

s 2

and

3)Pu

blic

Ten

der

Wor

ksN

oBM

D Co

nstr

uctio

ns P

ty

Ltd

29,5

16,7

35

13/7

/16

21/2

/18

No

Hum

e St

age

2 - P

aspa

ley

St K

erb

Turn

ing

Hea

d,

Subs

oil D

rain

age

Wor

ksPu

blic

Ten

der

Wor

ksN

oBo

st P

ty L

td22

4,12

8 1/

2/17

26/4

/18

Yes

Road

Ext

ensi

on (M

onas

h S5

2, B

7)Pu

blic

Ten

der

Wor

ksN

oBo

st P

ty L

td29

8,11

7 21

/3/1

713

/9/1

7Ye

s

Pede

stria

n N

etw

ork

and

Ope

n Sp

ace

cons

truc

tion

(Coo

mbs

3A)

Publ

ic T

ende

rW

orks

No

Bria

rwoo

d Pt

y Lt

d t/

as

RAM

con

stru

ctio

ns1,

610,

219

4/5/

172/

11/1

8Ye

s

Publ

ic L

ands

capi

ng (K

ings

ton

Bloc

ks 1

and

2

Sect

ion

66)

Quo

tatio

nsW

orks

No

Bria

rwoo

d Pt

y Lt

d t/

as

RAM

con

stru

ctio

ns24

3,04

0 31

/8/1

631

/8/1

7Ye

s

Site

Inve

stig

atio

n Re

port

(O’M

alle

y Se

ctio

n 31

Bl

ocks

23

and

24 S

tage

2)

Quo

tatio

nsW

orks

No

Calib

re C

onsu

lting

(ACT

) Pt

y Lt

d29

,359

8/

5/17

30/6

/17

No

Land

scap

e Su

perin

tend

ency

(Mon

crie

ff St

age

6B)

Quo

tatio

nsCo

nsul

tanc

yN

oCa

libre

Con

sulti

ng (A

CT)

Pty

Ltd

199,

245

2/9/

161/

9/18

No

Engi

neer

ing

and

Supe

rinte

nden

ce C

onsu

ltanc

y (G

reen

way

Lak

esid

e Ea

st E

stat

e)Pu

blic

Ten

der

Cons

ulta

ncy

No

Calib

re C

onsu

lting

(ACT

) Pt

y Lt

d38

9,41

4 21

/12/

1630

/10/

18N

o


Cont

ract

Titl

e Pr

ocur

emen

t M

etho

dolo

gyPr

ocur

emen

t Ty

peEx

empt

ion

from

Quo

tatio

n an

d Te

nder

Th

resh

old

Requ

irem

ents

Cont

ract

or N

ame

Cont

ract

am

ount

$ (G

ST

Inc)

Exec

utio

n da

teEx

piry

Dat

e S

mal

l to

Med

ium

En

terp

rise

Engi

neer

ing

Cons

ulta

ncy

(Whi

tlam

)Pu

blic

tend

erCo

nsul

tanc

yN

oCa

libre

Con

sulti

ng (A

CT)

Pty

Ltd

2,66

6,07

0 14

/3/1

730

/6/2

1N

o

Cons

truc

tion

Com

mun

ity R

ecre

atio

nal I

rrig

ated

Pa

rk (M

oncr

ieff)

Publ

ic T

ende

rW

orks

No

Canb

erra

Con

tract

ors

Pty

Ltd

6,08

7,61

3 9/

1/17

30/9

/18

Yes

Prop

erty

Age

nt S

ervi

ces:

Sing

le R

esid

ence

Au

ctio

n Co

mm

issi

on (T

aylo

r)Pa

nel

Serv

ices

(non

co

nsul

tanc

y)N

oCa

nber

ra W

ide

(Lut

on)

60,0

00

2/3/

1730

/6/1

7N

o

Prop

erty

Age

nt S

ervi

ces:

Sing

le R

esid

entia

l Au

ctio

n Co

mm

issi

on (T

hros

by)

Pane

lSe

rvic

es (n

on

cons

ulta

ncy)

No

Canb

erra

Wid

e (L

uton

)40

,000

2/

3/17

30/6

/17

No

Site

Inve

stig

atio

n Re

port

(Hol

t Blo

ck 5

Se

ctio

n 53

)Pa

nel

Serv

ices

(non

co

nsul

tanc

y)N

oCa

rdno

(NSW

/ACT

) Pty

Lt

d51

,689

11

/7/1

611

/7/1

7N

o

Prin

cipa

l’s A

utho

rised

Per

son

Serv

ices

(Wes

t Ba

sin

Poin

t Par

k)Q

uota

tions

Cons

ulta

ncy

No

Card

no (N

SW/A

CT) P

ty

Ltd

149,

087

10/8

/16

10/8

/18

No

Acce

ss R

oad

and

Dudl

ey S

treet

Upg

rade

(C

anbe

rra B

rickw

orks

)Pa

nel

Cons

ulta

ncy

No

Card

no (N

SW/A

CT) P

ty

Ltd

42,5

15

26/8

/16

31/3

/17

No

Pasp

aley

Stre

et C

urb

and

Turn

ing

Hea

d (H

ume

Stag

e 2)

Sing

le Q

uote

Cons

ulta

ncy

No

Card

no (N

SW/A

CT) P

ty

Ltd

26,6

75

12/9

/16

21/1

1/16

No

Esta

te D

evel

opm

ent P

lan

and

Deve

lopm

ent

Appl

icat

ion

(Hum

e W

est S

tage

2)

Pane

lCo

nsul

tanc

yN

oCa

rdno

(NSW

/ACT

) Pty

Lt

d55

,539

20

/10/

1628

/11/

16N

o

Supe

rinte

nden

cy -

Pasp

aley

St W

orks

(Hum

e W

est S

tage

2)

Sing

le Q

uote

Cons

ulta

ncy

No

Card

no (N

SW/A

CT) P

ty

Ltd

31,1

35

26/1

0/16

31/5

/17

No

Site

Iinv

estig

atio

n Re

port

(Wan

nias

sa B

lock

1

Sect

ion

295)

Quo

tatio

nsSe

rvic

es (n

on

cons

ulta

ncy)

No

Card

no (N

SW/A

CT) P

ty

Ltd

25,0

00

16/1

1/16

30/1

1/16

No

Desi

gn a

nd S

uper

inte

nden

cy (G

reen

way

Se

ctio

n 28

)Q

uota

tions

Cons

ulta

ncy

No

Card

no (N

SW/A

CT) P

ty

Ltd

43,7

07

13/1

2/16

31/1

2/16

No

Dem

oliti

on D

evel

opm

ent A

pplic

atio

n an

d Su

perin

tend

ency

(Bel

conn

en S

ectio

n 21

and

22)

Quo

tatio

nsCo

nsul

tanc

yN

oCa

rdno

(NSW

/ACT

) Pty

Lt

d12

8,81

2 1/

5/17

1/5/

18N

o

Prop

erty

Age

nt S

ervi

ces:

Mar

ketin

g an

d Sa

le

(Lyn

eham

Blo

cks 2

and

3, S

ectio

n 11

5)Pa

nel

Serv

ices

(non

co

nsul

tanc

y)N

oCB

RE (V

) Pty

Ltd

225,

000

26/1

0/16

30/6

/17

No

179

Cont

ract

Titl

e Pr

ocur

emen

t M

etho

dolo

gyPr

ocur

emen

t Ty

peEx

empt

ion

from

Quo

tatio

n an

d Te

nder

Th

resh

old

Requ

irem

ents

Cont

ract

or N

ame

Cont

ract

am

ount

$ (G

ST

Inc)

Exec

utio

n da

teEx

piry

Dat

e S

mal

l to

Med

ium

En

terp

rise

Prop

erty

Age

nt S

ervi

ces:

Sale

s and

Mar

ketin

g fo

r Su

b-Le

ase

for H

untly

Rur

al L

and

Pane

lSe

rvic

es (n

on

cons

ulta

ncy)

No

CBRE

(V) P

ty L

td16

0,00

0 6/

4/16

15/2

/17

No

Land

scap

ing

of P

ublic

Lan

d (K

ings

ton

Bloc

k 4

Sect

ion

66)

Sing

le se

lect

Wor

ksYe

sCB

S Co

mm

erci

al20

0,65

7 16

/12/

1615

/12/

17Ye

s

Cont

amin

atio

n (W

illia

msd

ale

Sola

r Far

m)

Pane

lSe

rvic

es (n

on

cons

ulta

ncy)

No

Coffe

y En

viro

nmen

ts

Pty

Ltd

68,9

08

10/7

/15

30/6

/16

No

Prop

erty

Age

nt S

ervi

ces:

Auct

ion

Com

mis

sion

(C

oom

bs M

ulti

Uni

t)Pa

nel

Serv

ices

(non

co

nsul

tanc

y)N

oCo

llier

s Int

erna

tiona

l (A

CT) P

ty L

td87

,000

15

/12/

1630

/6/1

7N

o

Prop

erty

Age

nt S

ervi

ces:

Auct

ion

Com

mis

sion

(M

oncr

ieff

Mul

it U

nit)

Pane

lSe

rvic

es (n

on

cons

ulta

ncy)

No

Colli

ers I

nter

natio

nal

(ACT

) Pty

Ltd

41,0

00

15/1

2/16

30/6

/17

No

Prop

erty

Age

nt S

ervi

ces:

Ballo

t, Au

ctio

n, O

ver

The

Coun

ter S

ales

(Thr

osby

)Pa

nel

Serv

ices

(non

co

nsul

tanc

y)N

oCo

llier

s Int

erna

tiona

l (A

CT) P

ty L

td24

0,44

3 15

/12/

1630

/6/1

7N

o

Subs

oil D

rain

age

Inst

alla

tion

Cons

truc

tion

Wor

ks

(Hum

e St

age

3)Pu

blic

Ten

der

Wor

ksN

oCo

mpl

ex C

ivil

339,

370

21/1

2/16

30/4

/18

Yes

Cam

paig

n M

edia

(Thr

osby

)Pa

nel

Serv

ices

(non

co

nsul

tanc

y)N

oCo

-Ord

inat

e Gr

oup

256,

329

31/8

/16

28/2

/17

No

Civi

l Wor

ks: S

ewer

(Dow

ner S

ectio

n 61

Blo

ck 1

7)Pu

blic

Ten

der

Wor

ksN

oCo

rd C

ivil

1,54

2,79

3 5/

9/16

3/1/

18N

o

Civi

l Wor

ks: M

oncr

ieff

Mai

nten

ance

Tra

cks,

Br

idge

and

Am

aroo

Sch

ool P

aths

Publ

ic T

ende

rW

orks

No

Cord

Civ

il2,

498,

779

30/5

/17

27/1

1/19

No

Mar

ketin

g Se

rvic

es (T

aylo

r)Pa

nel

Serv

ices

(non

co

nsul

tanc

y)N

oCr

e8tiv

e10

0,00

0 9/

3/17

30/6

/17

No

Land

scap

ing

(Kin

gsto

n - S

tage

4 P

art 2

)Q

uota

tions

Wor

ksN

oDa

n &

Dan

Land

scap

ing

28,7

30

16/5

/17

16/5

/18

Yes

Dem

oliti

on (B

elco

nnen

Blo

ck 2

9 Se

ctio

n 14

9)Pu

blic

Ten

der

Wor

ksN

oDe

lta P

ty L

td42

8,71

7 1/

3/17

30/6

/17

Yes

Dem

oliti

on (N

arra

bund

ah B

lock

45

Sect

ion

100)

Publ

ic T

ende

rW

orks

No

Delta

Pty

Ltd

1,17

1,11

0 1/

11/1

628

/2/1

7Ye

s

Adve

rtis

ing

Serv

ices

for L

and

Rele

ase

(Thr

osby

)Pa

nel

Serv

ices

(non

co

nsul

tanc

y)N

oDe

ntsu

Mitc

hell

Med

ia

Aust

ralia

90,0

00

18/5

/17

1/7/

17N

o


Cont

ract

Titl

e Pr

ocur

emen

t M

etho

dolo

gyPr

ocur

emen

t Ty

peEx

empt

ion

from

Quo

tatio

n an

d Te

nder

Th

resh

old

Requ

irem

ents

Cont

ract

or N

ame

Cont

ract

am

ount

$ (G

ST

Inc)

Exec

utio

n da

teEx

piry

Dat

e S

mal

l to

Med

ium

En

terp

rise

Pane

l of S

uppl

iers

to P

rovi

de E

nviro

nmen

tal

Spec

ialis

t Adv

isor

y Se

rvic

esPa

nel

Cons

ulta

ncy

No

Doug

las P

artn

ers P

ty L

td38

,632

13

/8/1

613

/8/1

6N

o

Boar

dwal

k Re

pair

and

Mai

nten

ance

Wor

ks

(Kin

gsto

n)Si

ngle

Quo

teW

orks

Yes

The

Trus

tee

for L

e M

esur

ier F

amily

Tru

st t/

a Ec

oway

(Aus

t) Pt

y Lt

d

29,7

18

14/7

/16

30/6

/17

Yes

Fina

ncia

l Ser

vice

sSi

ngle

sele

ctCo

nsul

tanc

yYe

sGa

lent

Pty

Lim

ited

194,

150

29/6

/16

30/6

/17

Yes

Plan

ning

Dem

oliti

on (G

riffith

)Q

uota

tions

Cons

ulta

ncy

No

GHD

Pty

Ltd

102,

997

16/1

/17

6/12

/17

No

ED /

LDA

Gove

rnan

ce F

ram

ewor

k Re

view

Sing

le se

lect

Cons

ulta

ncy

Yes

Ian

McP

hee

Cons

ultin

g Pt

y Lt

d55

,000

14

/7/1

630

/9/1

6Ye

s

Prop

erty

Age

nt S

ervi

ces:

Mar

ketin

g an

d Sa

le o

f Su

perlo

ts (T

hros

by)

Pane

lSe

rvic

es (n

on

cons

ulta

ncy)

No

Inde

pend

ent P

rope

rty

Grou

p Sa

les P

ty L

imite

d12

4,00

0 2/

11/1

630

/6/1

7N

o

Prop

erty

Age

nt S

ervi

ces:

Sing

le R

esid

ence

Au

ctio

n Co

mm

issi

on (M

oncr

ieff)

Pane

lSe

rvic

es (n

on

cons

ulta

ncy)

No

Inde

pend

ent P

rope

rty

Grou

p Sa

les P

ty L

imite

d56

,000

20

/8/1

630

/6/1

7N

o

Prop

erty

Age

nt S

ervi

ces:

Tend

er a

nd M

ulti

Uni

t Au

ctio

n Co

mm

issi

on (T

aylo

r)Pa

nel

Serv

ices

(non

co

nsul

tanc

y)N

oIn

depe

nden

t Pro

pert

y Gr

oup

Sale

s Pty

Lim

ited

150,

000

7/12

/16

30/6

/17

No

Proj

ect D

esig

n an

d Co

nstr

uctio

n Ph

ase

Dem

oliti

on (R

ed H

ill)

Publ

ic T

ende

rCo

nsul

tanc

yN

oIn

desc

o Pt

y Lt

d13

9,55

6 6/

6/16

28/2

/18

Yes

Supe

rinte

nden

cy: B

oard

wal

k (K

ings

ton

Sect

ion

62 B

lock

s 4, 5

and

13)

Q

uota

tions

Cons

ulta

ncy

No

Inde

sco

Pty

Ltd

41,0

30

14/7

/16

28/2

/17

Yes

Land

scap

e Su

perin

tend

ency

(Kin

gsto

n Se

ctio

n 4)

Quo

tatio

nsCo

nsul

tanc

yN

oIn

desc

o Pt

y Lt

d13

1,97

0 22

/7/1

628

/12/

17Ye

s

Engi

neer

ing

Cons

ulta

ncy

Esta

te D

evel

opm

ent

Plan

(Tay

lor 2

)Pu

blic

Ten

der

Cons

ulta

ncy

No

Inde

sco

Pty

Ltd

2,22

0,43

9 2/

8/16

2/8/

18Ye

s

Sew

er U

pgra

de (D

owne

r)Q

uota

tions

Cons

ulta

ncy

No

Inde

sco

Pty

Ltd

62,1

50

12/9

/16

30/6

/17

Yes

Site

Inve

stig

atio

n Re

port

(Mac

greg

or B

lock

9

Sect

ion

140)

Pane

lCo

nsul

tanc

yN

oIn

desc

o Pt

y Lt

d29

,810

28

/9/1

610

/11/

16Ye

s

181

Cont

ract

Titl

e Pr

ocur

emen

t M

etho

dolo

gyPr

ocur

emen

t Ty

peEx

empt

ion

from

Quo

tatio

n an

d Te

nder

Th

resh

old

Requ

irem

ents

Cont

ract

or N

ame

Cont

ract

am

ount

$ (G

ST

Inc)

Exec

utio

n da

teEx

piry

Dat

e S

mal

l to

Med

ium

En

terp

rise

Cree

k Ci

vil L

ands

cape

Des

ign

Cons

ulta

ncy

(Hum

e W

est S

tage

2A

and

2B)

Quo

tatio

nsCo

nsul

tanc

yN

oIn

desc

o Pt

y Lt

d44

,500

17

/10/

1621

/7/1

7Ye

s

Deve

lopm

ent A

pplic

atio

n an

d Su

perin

tend

ent

Serv

ices

(Bel

conn

en B

lock

29

Sect

ion

149)

Quo

tatio

nsCo

nsul

tanc

yN

oIn

desc

o Pt

y Lt

d84

,975

9/

11/1

631

/12/

17Ye

s

Engi

neer

ing

Cons

ulta

ncy:

Est

ate

Deve

lopm

ent

Plan

(Tay

lor 3

)Pu

blic

Ten

der

Cons

ulta

ncy

No

Inde

sco

Pty

Ltd

1,17

5,27

3 9/

12/1

69/

12/1

8Ye

s

Deta

il De

sign

Eng

inee

ring

(Hum

e W

est 2

A)Q

uota

tions

Cons

ulta

ncy

No

Inde

sco

Pty

Ltd

99,9

24

11/5

/17

20/6

/1Ye

s

Supe

rinte

nden

cy: T

rail/

Brid

ges (

Mon

crie

ff)Pu

blic

Ten

der

Cons

ulta

ncy

No

Inde

sco

Pty

Ltd

156,

500

30/5

/17

28/2

/17

Yes

Serv

ices

: Beg

a Fl

ats D

emol

ition

Q

uota

tions

Cons

ulta

ncy

No

Irwin

& H

arts

horn

Pty

Lt

d64

,800

2/

2/17

8/6/

17N

o

Valu

atio

n Se

rvic

es (T

aylo

r)Pa

nel

Serv

ices

(non

co

nsul

tanc

y)N

oJo

nes L

ang

LaSa

lle16

7,00

0 15

/9/1

67/

9/19

No

Valu

atio

n Se

rvic

es (T

aylo

r)Pa

nel

Serv

ices

(non

co

nsul

tanc

y)N

oM

anuk

a Re

alty

(MM

J)17

9,00

0 8/

9/16

7/9/

19N

o

Prop

erty

Age

nt S

ervi

ces:

Sale

of B

lock

s (C

harn

woo

d an

d Cu

rtin

)Pa

nel

Serv

ices

(non

co

nsul

tanc

y)N

oM

anuk

a Re

alty

(MM

J)35

,000

16

/8/1

631

/5/1

7N

o

Prop

erty

Age

nt S

ervi

ces:

Mar

ket a

nd S

ale

of

Bloc

ks (H

ume)

Pane

lSe

rvic

es (n

on

cons

ulta

ncy)

No

Man

uka

Real

ty (M

MJ)

45,0

00

9/6/

1730

/6/1

8N

o

Conv

eyan

cing

Leg

al S

ervi

ces:

Supe

rlot T

ende

r (T

hros

by)

Pane

lSe

rvic

es (n

on

cons

ulta

ncy)

No

Mey

er V

ande

nber

g La

wye

rs12

0,00

0 31

/10/

1630

/6/1

7N

o

Conv

eyan

cing

Leg

al S

ervi

ces:

Ballo

t and

Ten

der

(Tay

lor)

Pane

lSe

rvic

es (n

on

cons

ulta

ncy)

No

Min

ter E

lliso

n La

wye

rs16

0,00

0 15

/3/1

730

/6/1

7N

o

Map

ping

Ser

vice

s: N

earm

ap S

oftw

are

Subs

crip

tion

2017

-18

Sing

le S

elec

tGo

ods

Yes

Nea

rmap

Aus

tralia

Pty

Lt

d55

,000

23

/4/1

723

/4/1

8N

o

Desi

gn a

nd S

uper

inte

nden

t (M

onas

h Bl

ock

7 Se

ctio

n 52

)Q

uota

tions

Cons

ulta

ncy

No

Nor

thro

p Co

nsul

ting

Engi

neer

s70

,194

7/

11/1

630

/6/1

7N

o

Syst

ems D

evel

opm

ent S

ervi

ces

Sing

le S

elec

tSe

rvic

es (n

on

cons

ulta

ncy)

Yes

Paxu

s Aus

tralia

Pty

Ltd

114,

114

31/8

/16

31/3

/17

No


Cont

ract

Titl

e Pr

ocur

emen

t M

etho

dolo

gyPr

ocur

emen

t Ty

peEx

empt

ion

from

Quo

tatio

n an

d Te

nder

Th

resh

old

Requ

irem

ents

Cont

ract

or N

ame

Cont

ract

am

ount

$ (G

ST

Inc)

Exec

utio

n da

teEx

piry

Dat

e S

mal

l to

Med

ium

En

terp

rise

Busi

ness

Adv

isor

y an

d Su

ppor

t Ser

vice

s:

Tran

sitio

n Co

nsul

tanc

yQ

uota

tions

Serv

ices

(non

co

nsul

tanc

y)N

oPr

otiv

iti P

ty L

td79

,895

29

/5/1

721

/7/1

7N

o

Site

Aud

itor S

ervi

ces (

Belc

onne

n La

thla

in S

treet

Pr

ecin

ct)

Quo

tatio

nsCo

nsul

tanc

yN

oRa

mbo

ll En

viro

n Au

stra

lia P

ty L

td38

,280

22

/9/1

630

/6/1

7Ye

s

Site

Aud

itor S

ervi

ces (

Will

iam

sdal

e)Si

ngle

Sel

ect

Serv

ices

(non

co

nsul

tanc

y)Ye

sRa

mbo

ll En

viro

n Au

stra

lia P

ty L

td40

,000

23

/7/1

623

/8/1

6N

o

Prop

erty

Age

nt S

ervi

ces:

Ballo

t Com

mis

sion

(T

aylo

r)Pa

nel

Serv

ices

(non

co

nsul

tanc

y)N

oCP

Com

mer

cial

Pty

Li

mite

d t/

a Ra

y W

hite

Ca

nber

ra/C

iviu

m

210,

000

14/9

/16

30/6

/17

No

Prop

erty

Age

nt S

ervi

ces:

Auct

ion

Com

mis

sion

(T

hros

by)

Pane

lSe

rvic

es (n

on

cons

ulta

ncy)

No

CP C

omm

erci

al P

ty

Lim

ited

t/a

Ray

Whi

te

Canb

erra

/Civ

ium

40,0

00

2/3/

1730

/6/1

7N

o

Cons

truc

tion

Supe

rinte

nden

cy C

onsu

ltanc

y Se

rvic

es (B

arto

n Se

ctio

n 33

)Q

uota

tions

Cons

ulta

ncy

No

RD G

ossi

p Pt

y Lt

d54

,420

26

/7/1

626

/7/1

7Ye

s

Bloc

k Fe

ncin

g (T

hros

by)

Quo

tatio

nsGo

ods

No

Rent

a F

ence

: The

Tr

uste

e fo

r Ren

t a F

ence

Au

stra

lian

Trus

t

156,

235

28/3

/17

1/5/

18N

o

East

Lak

e Go

vern

ance

and

Del

iver

y Ad

vice

Quo

tatio

nsCo

nsul

tanc

yN

oSG

S Ec

onom

ics a

nd

Plan

ning

Pty

Ltd

108,

722

16/8

/16

31/1

2/16

Yes

Envi

ronm

enta

l Spe

cial

ist A

dvis

ory

Serv

ices

: Su

perb

Par

rot M

onito

ring

(Rur

al -

Land

s End

)Pa

nel

Serv

ices

(non

co

nsul

tanc

y)N

oSM

EC A

ustra

lia P

ty L

td37

,932

10

/10/

1631

/1/1

7N

o

Plan

ning

Des

ign

Serv

ices

Con

sulta

ncy

(Whi

tlam

St

ages

1-4

)Pu

blic

tend

erCo

nsul

tanc

yN

oSp

acel

ab S

tudi

os1,

990,

745

14/3

/17

30/6

/21

Yes

Mar

ketin

g Ca

mpa

ign:

Lyn

eham

on

Nor

thbo

urne

Pane

lSe

rvic

es (n

on

cons

ulta

ncy)

No

Swel

l Des

ign

grou

p50

,746

11

/8/1

615

/3/1

7Ye

s

Mar

ketin

g Ca

mpa

ign:

Beg

a Fl

ats (

Reid

- Bl

ock

1,

Sect

ion

7)Pa

nel

Serv

ices

(non

co

nsul

tanc

y)N

oSw

ell D

esig

n gr

oup

65,3

24

16/3

/17

30/6

/17

Yes

Adve

rtis

ing

Cam

paig

n: T

hros

by O

ver T

he

Coun

ter 2

017

Pane

lSe

rvic

es (n

on

cons

ulta

ncy)

No

Swel

l Des

ign

grou

p35

0,00

0 1/

4/17

31/5

/19

Yes

183

Cont

ract

Titl

e Pr

ocur

emen

t M

etho

dolo

gyPr

ocur

emen

t Ty

peEx

empt

ion

from

Quo

tatio

n an

d Te

nder

Th

resh

old

Requ

irem

ents

Cont

ract

or N

ame

Cont

ract

am

ount

$ (G

ST

Inc)

Exec

utio

n da

teEx

piry

Dat

e S

mal

l to

Med

ium

En

terp

rise

Plan

ning

Con

sulta

ncy

Esta

te D

evel

opm

ent

Plan

(Tay

lor 2

)Si

ngle

sele

ctCo

nsul

tanc

yYe

sTh

e Ex

pert

Clie

nt P

ty L

td

t/a

Tait

Wad

ding

ton

526,

482

2/8/

162/

8/18

Yes

Entr

y Fe

atur

es (T

hros

by)

Quo

tatio

nsCo

nsul

tanc

yN

oTh

e Ex

pert

Clie

nt P

ty L

td

t/a

Tait

Wad

ding

ton

48,2

00

17/1

0/16

1/7/

17Ye

s

Plan

ning

Con

sulta

ncy

(Tay

lor 3

)Pu

blic

Ten

der

Cons

ulta

ncy

No

The

Expe

rt C

lient

Pty

Ltd

t/

a Ta

it W

addi

ngto

n29

5,65

7 29

/3/1

729

/3/1

9Ye

s

Prop

erty

Age

nt S

ervi

ces:

Bega

Fla

ts (R

eid

- Blo

ck

1 Se

ctio

n 7)

Pane

lSe

rvic

es (n

on

cons

ulta

ncy)

No

Scith

om R

ealty

Pty

Li

mite

d t/

a LJ

Hoo

ker

Com

mer

cial

140,

000

2/5/

1717

/5/1

8N

o

Gas M

ains

Rea

lignm

ent (

Gree

nway

Eas

t)Si

ngle

Sel

ect

Wor

ksYe

sZN

X Pt

y Lt

d13

3,67

3 23

/12/

1631

/1/1

7Ye

s


C.6 STATEMENT OF PERFORMANCEFOR THE YEAR ENDED 30 JUNE 2017

185

REPORT OF FACTUAL FINDINGS


To the Members of the ACT Legislative Assembly

Review opinion

I am providing an unqualified review opinion on the statement of performance of the Land Development Agency for the year ended 30 June 2017.

During the review, no matters were identified which indicate that the results of the accountability indicators reported in the statement of performance are not fairly presented in accordance with the Financial Management Act 1996.

Basis for the review opinion

The review was conducted in accordance with Australian Auditing Standards. I have complied with the requirements of the Accounting Professional and Ethical Standards 110 Code of Ethics for Professional Accountants.

I believe that sufficient evidence was obtained during the review to provide a basis for the review opinion.

Responsibility for preparing and fairly presenting the statement of performance

The Governing Board of the Land Development Agency is responsible for:

preparing and fairly presenting the statement of performance in accordance with the Financial Management Act 1996 and Financial Management (Statement of Performance Scrutiny) Guidelines 2017; and

determining the internal controls necessary for the preparation and fair presentation of the statement of performance so that the results of accountability indicators and accompanying information are free from material misstatements, whether due to error or fraud.

Responsibility for the review of the statement of performance

Under the Financial Management Act 1996 and Financial Management (Statement of Performance Scrutiny) Guidelines 2017, the Auditor-General is responsible for issuing a report of factual findings on the statement of performance of the Land Development Agency.


As required by Australian Auditing Standards, the auditors:

applied professional judgement and maintained scepticism;

identified and assessed the risks of material misstatements due to error or fraud* and implemented procedures to address these risks so that sufficient evidence was obtained to form a review opinion; and

reported the scope and timing of the review and any significant deficiencies in reporting practices identified during the review to the Governing Board.

(*The risk of not detecting material misstatements due to fraud is higher than the risk due to error, as fraud may involve collusion, forgery, intentional omissions or misrepresentations or the override of internal controls.)

Limitations on the scope of the review

The review was conducted in accordance with Australian Auditing Standards applicable to review engagements, to provide limited assurance that the results of the accountability indicators reported in the statement of performance have been fairly presented in accordance with the Financial Management Act 1996.

A review is primarily limited to making inquiries with representatives of the Land Development Agency, performing analytical and other review procedures and examining other available evidence. These review procedures do not provide all of the evidence that would be required in an audit, therefore, the level of assurance provided is less than that given in an audit. An audit has not been performed and no audit opinion is being expressed on the statement of performance.

This review does not provide assurance on the:

relevance or appropriateness of the accountability indicators reported in the statement of performance or the related performance targets;

accuracy of explanations provided for variations between actual and targeted performance due to the often subjective nature of such explanations;

adequacy of controls implemented by the Land Development Agency; or

integrity of reviewed statement of performance presented electronically or information hyperlinked to or from the statement of performance. Assurance can only be provided for the printed copy of the reviewed statement of performance.

Dr Maxine Cooper Auditor-General 19 September 2017

187

Land Development Agency Statement of Performance


Financial Performance Measurement Analysis 2016-17

Financial Performance Indicators

Target 2016-17

Actual 2016-17

Variance (%) from Target

Explanation of Material Variances

Profit (before tax) Profit (after tax) Dividend

$302m $211m $211m

$317 m $259m $259m

5% 23% 23%

The higher than budgeted profit (before tax), profit (after tax) and dividend was primarily due to lower than budgeted cost of land sold.

Return on Assets1

49.4%

55.5%

12%

The higher than budgeted return on assets was due to higher than budgeted operating profit before tax as explained above.

Return on Equity2 240.0% 259.2% 8% The higher than budgeted return on equity was due to higher than budgeted operating profit before tax as explained above.

Gross Profit Margin on Land Sales3

70.1% 78.3% 12% The higher than budgeted gross profit margin on land sales was mainly due to lower than budgeted cost of land sold due to the majority of 2016-17 revenue being achieved through sales of englobo, commercial, community and ARI sites which require minimum development prior to settlement.

Current Ratio4 1.0 1.0 - Not applicable

Acid Test Ratio5 0.6 0.6 - Not applicable

Cash Flow Indicator6

0.4 0.6 50% The higher than expected cash flow indicator compared to budget is driven by lower than expected development expenses for Taylor and Throsby due to construction delays caused by persistent unfavourable weather conditions.


Land Development Agency Statement of Performance


Financial Performance Measurement Analysis 2016-17

Financial Performance Indicators

Target 2016-17

Actual 2016-17

Variance (%) from Target

Explanation of Material Variance

Equity Ratio7 0.2 0.2 - Not applicable

Interest Coverage8 105.2 192.6 83% The variance in interest coverage compared to budget was due to higher operating profit before tax as a result of lower cost of land sold and lower than budgeted interest expenses. The LDA pays interest (holding cost equivalents) on land purchased and held in LDA estates. The value of the land purchased and held during the year was lower than budgeted.

The above Statement of Performance should be read in conjunction with the accompanying notes. 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 = (lease sales – cost of goods sold including duty) / lease sales 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. Interest Coverage = (operating result before tax + interest expense) / interest expense

191

La

nd D

evel

opm

ent A

genc

y St

atem

ent o

f Per

form

ance

Fo

r the

Yea

r End

ed 3

0 Ju

ne 2

017

Non

-Fin

anci

al P

erfo

rman

ce In

dica

tors

201

6-17

Ke

y Pe

rfor

man

ce In

dica

tors

(Non

-Fin

anci

al)

Indi

cato

r De

scrip

tor

Indi

cato

r Ta

rget

20

16-1

7 Ac

tual

Re

sult

20

16-1

7

Varia

nce

(%)

from

Tar

get

Expl

anat

ion

of M

ater

ial V

aria

nces

Urb

an W

ater

Cy

cle

Man

agem

ent

Perc

enta

ge o

f LDA

est

ates

1 with

spec

ific

Wat

er

Sens

itive

Urb

an D

esig

n2 Str

ateg

ies,

ens

urin

g th

e st

rate

gies

are

app

ropr

iate

to th

e siz

e an

d lo

catio

n of

th

e pr

ojec

t.

100%

10

0%

- N

ot a

pplic

able

Sust

aina

ble

Com

mun

ity

Prog

ram

s

Perc

enta

ge o

f LDA

est

ates

1 that

are

larg

er th

an 5

00

dwel

lings

that

hav

e a

com

mun

ity d

evel

opm

ent

prog

ram

3 .

100%

10

0%

- N

ot a

pplic

able

Hous

ing

Affo

rdab

ility

Pe

rcen

tage

of e

nglo

bo (g

reen

field

4 ) est

ates

1 to h

ave

20 p

er c

ent o

f dw

ellin

g sit

es re

leas

ed fo

r the

pu

rpos

e of

pro

vidi

ng a

fford

able

hou

sing5 .

100%

10

0%

- N

ot a

pplic

able

Perc

enta

ge o

f LDA

gre

enfie

ld4 e

stat

es1 to

hav

e 20

pe

r cen

t of d

wel

ling

sites

rele

ased

for t

he p

urpo

se o

f pr

ovid

ing

affo

rdab

le h

ousin

g5 .

100%

10

0%

- N

ot a

pplic

able

Biod

iver

sity

and

Land

scap

e Ar

ea p

rote

cted

for c

onse

rvat

ion

in c

ompl

ianc

e w

ith

Com

mon

wea

lth a

nd A

CT le

gisla

tive

requ

irem

ents

6 . 10

0%

100%

-

Not

app

licab

le

Desig

n Ex

celle

nce

Perc

enta

ge o

f key

pro

ject

s7 that

will

be

revi

ewed

by

the

Desig

n Re

view

Pan

el p

rior t

o th

e Bo

ard’

s co

nsid

erat

ion

of P

roje

ct B

usin

ess P

lans

.

100%

10

0%

- N

ot a

pplic

able

Wor

k He

alth

an

d Sa

fety

Co

mpl

ianc

e w

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tend

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adju

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.

195

SECTION D

SECTION D: EXCEPTION AND AGENCY SPECIFIC REPORTING

196

D.1 DANGEROUS SUBSTANCESThe LDA was not served with any notices of non-compliance relating to the Dangerous Substances Act 2004 during 2016-17.


Neil Bulless Interim Chief Executive Officer Suburban Land Agency +61 2 6205 7346 [email protected]

D.2 MEDICINES, POISONS AND THERAPEUTIC GOODSThe LDA was not served with any notices of non-compliance relating to the Medicines, Poisons and Therapeutic Goods Act 2008 during 2016-17.



Land Development Agency: Annual Report 2016-17 197

SECTION E

SECTION E: CHIEF MINISTER, TREASURY AND ECONOMIC DEVELOPMENT

198

E. CHIEF MINISTER, TREASURY AND ECONOMIC DEVELOPMENTThe LDA has no items to report against this section.


SECTION F

SECTION F: EDUCATION AND TRAINING

200

F. EDUCATION AND TRAININGThe LDA has no items to report against this section.


SECTION G

SECTION G: HEALTH

202

G. HEALTHThe LDA has no items to report against this section.


SECTION H

SECTION H: GAMBLING AND RACING

204

H. GAMBLING AND RACINGThe LDA has no items to report against this section.


SECTION I

SECTION I: MINISTERIAL AND DIRECTOR-GENERAL DIRECTIONS

206

I. MINISTERIAL AND DIRECTOR-GENERAL DIRECTIONSThe LDA did not receive any Ministerial Directions under the Planning and Development Act 2007 during 2016-17.

In June 2014, the Planning and Development (Land Acquisition Policy Framework) Direction 2014 (No. 1) took effect. The Framework set out the principles and tests that were required to be met when the LDA acquired land.

Clause 2.4.3 of the Framework required the LDA to include in its annual report details of all acquisitions completed during a financial year. In 2016-17 the LDA completed the following land acquisitions:

LAND ACQUISITIONS

District (Property)

Block and Section Acquisition Cost Date of Settlement

Belconnen (Wintergarden)

Blocks 1491, 1492 and 1587 $4,000,000 30 August 2016

Belconnen (Ginninderry)

Blocks 1605 and 1606 $4,110,282 23 November 2016

Stromlo (Winslade)

Blocks 435, 439, 440, 441, 456 and 476

$7,500,000 30 June 2017




SECTION J

SECTION J: PUBLIC LAND MANAGEMENT PLANS

208

J. PUBLIC LAND MANAGEMENT PLANSThe LDA was not custodian of public land in 2016-17 and was therefore not required to prepare any public land management plans during the year.




SECTION K

SECTION K: THIRD PARTY INSURANCE

210

K. THIRD PARTY INSURANCEThe LDA has no items to report against this section.


SECTION L

SECTION L: VICTIMS OF CRIME

212

L. VICTIMS OF CRIMEThe LDA has no items to report against this section.


SECTION M

SECTION M: WASTE MINIMISATION CONTRAVENTIONS

214

M. WASTE MINIMISATION CONTRAVENTIONSThe LDA has no items to report against this section.


SECTION N

SECTION N: COMMUNITY ENGAGEMENT AND SUPPORT

216

OVERVIEW OF DIRECTORATE/AGENCY APPROACH TO ENGAGEMENTKey outputs under the 2016-17 LDA SOI included:

> delivery of meaningful and transparent community engagement about the land development process and projects; and

> delivery of high quality, sustainable developments, including public realm and community development.

Community Engagement services for the LDA were provided by the Community Engagement unit within the Economic Development stream of the CMTEDD. The unit supported the LDA project teams by facilitating open, proactive and meaningful communications and community engagement, including through:

> collaborating with project team members to achieve project objectives, recognising their expertise and experience;

> integrating early with project teams working on urban renewal projects, land releases and arts, business and policy initiatives;

> developing comprehensive community engagement strategies; and

> tailoring activities to specific target audiences and project goals.

The Community Engagement unit was guided by the following principles and values (based on those of the IAP2):

1. Public participation is based on the belief that the interests of those who are affected by a decision are considered in the decision-making process.

2. Public participation will produce better and more sustainable outcomes. Public participation promotes sustainable decisions by recognising and communicating the needs and interests of all participants, including decision makers.

3. Public participation seeks out and facilitates the involvement of those potentially affected by or interested in a decision.

4. Public participation seeks input from participants in designing how they participate.

5. Public participation provides participants with the information they need to participate in a meaningful way.

6. Public participation communicates to participants how their input affected the decision.

COMMUNITY ENGAGEMENT ACTIVITIES

MingleThe LDA continued to implement its community development program, Mingle, which was designed to build vibrant local communities within the new LDA greenfield estates. The program aimed to achieve a number of social objectives based around encouraging new residents to feel part of the community and become involved in community life and activities. Mingle assisted residents to create networks, groups and programs that will ultimately become self-sustaining.

The program was tailored for each suburb to suit demographics, resident feedback and proximity to surrounding services. The LDA worked closely with other ACT Government Directorates to help meet program objectives and to deliver events.

In 2016-17 the Mingle program continued in Bonner, Moncrieff and Molonglo Valley (Wright and Coombs) and commenced through sustainability workshops in Lawson and Throsby.


‘Mingle’ community engagement summary for 2016-17:

> Community involvement – pop-up cafe (future of cafe, timings, options), volunteer program, book box (Charles Weston School, Wood Workers Guild), gift giving initiative that raised more than 400 items for St Vincent de Paul and establishment of a Molonglo Valley Community Group.

> Industry – first ACT group Work-for-the-Dole project to deliver a six-month landscaping project for Stromlo Cottage (76 participants).

> Innovation – first ACT Government Community Information Session using Facebook live streaming - November 2016.

> Community surveys – event program, cafe, Bonner summary.

> Sports/fitness – engagement with Molonglo Hornets Touch Football, local fitness trainers, development of fitness guide.

> Parks and conservation – discussions on ranger walks and education programs.

> Education – links to existing school programs and Charles Weston School involvement in the ‘Passions and Pursuits’ program.

> Sustainability – partnership with the ACT Government’s ACTsmart program to deliver a series of free sustainable workshops to purchasers.

> Heritage – partnership with ACT Property Group to refurbish the Stromlo Cottage property.

Canberra Brickworks PrecinctFollowing extensive previous community engagement in relation to the Canberra Brickworks Precinct, the community panel established in November 2015 continued during the 2016-17 reporting period.

The Canberra Brickworks Precinct Community Panel provided advice to the Request For Proposals (RFP) Evaluation Team on Proponents’ responses to the Precinct Objectives. As advisors to the LDA panel members were required to adhere to probity protocols and participate within probity requirements. The RFP Evaluation Team invited two proponents to participate in the Request for Tender (RFT) phase.

During the RFT phase both proponents met with the Community Panel. Two tender submissions received on 19 January 2017 were reviewed by the Community Panel and further advice was provided to the RFT Evaluation Team for consideration. Both submissions included community engagement plans for ongoing engagement with both the Community Panel and broader Canberra community during Estate Development Plan approval phase and subsequent construction. A preferred tenderer was announced on 11 April 2017.

The preferred tenderer has since met with the Community Panel a number of times to discuss the proposed community engagement plan.

This type of community engagement is relatively new in the ACT and the Community Panel members expressed very strong support for this collaborative engagement process.

Ginninderry (West Belconnen)The ACT Government and Riverview Group have entered into a Joint Arrangement to develop an innovative master-planned community spanning the ACT and NSW border in West Belconnen. The project has set the benchmark for active community engagement, with an extensive program over a period of years leading to a variation to the Territory Plan to allow urban development. The project was recognised by the Planning Institute of Australia, receiving a national commendation for excellence in public engagement and community planning.

Gungahlin Town CentreThe LDA engaged with the community through the ‘Celebrate Gungahlin’ festival, which includes Communities@Work, My Gungahlin and the Gungahlin Community Council.


Southquay East GreenwayIn September 2016 and February 2017 the LDA presented to the Tuggeranong Community Council on Southquay East, the second stage of the Southquay development.

The LDA held public information sessions from January – March 2017 in the Tuggeranong Town Centre and Lanyon Market Place to continue its engagement with the local community.

Throughout the development process the LDA sought input from other stakeholder groups, including on site meetings with Pedal Power.

Molonglo Valley – Wright and CoombsThe LDA continued to work with the Molonglo Valley Residents Group, which met regularly to discuss progress in the suburbs and opportunities for new events and activities. Two large-scale community information sessions were held to communicate development updates and information about ACT Government programs and initiatives. For both events the LDA trialled live streaming through social media to attract wider audience engagement. In 2016-17, eight community newsletters and a range of activities were provided in Wright and Coombs. Activities included fitness classes, Cancer Council’s Biggest Morning Tea, Ranger Walk, Easter Egg Hunt, tree planting and the development of a Book Box.

BonnerTwo engagement activities were undertaken in Bonner during 2016-17. The main event was a ‘Flavours of Bonner’ multicultural event that attracted more than 600 attendees. The LDA partnered with Communities@Work and continued to communicate with Bonner residents as part of the transition strategy for finalising the program in the community. The LDA ensured a process was established for future communications including through a noticeboard.

West Basin Waterfront, City to the LakeConstruction of the first stage of the West Basin waterfront started in October 2016. Construction followed extensive consultation undertaken by the ACT Government, since 2013, and the National Capital Authority, since 2004.

The information collected through these consultation processes was provided to the National Capital Authority as part of the works approval application for the waterfront. The application submitted included an illustrative masterplan, detailed drawings and artist impressions showing what the precinct would look like when complete. The application was supported by various studies that were undertaken to inform the waterfront design, including heritage, environment, tree assessment and retail analysis.

The community and stakeholders have been kept informed as the project progresses. Community engagement tools included face-to-face meetings, phone calls, letters and emails. Information was also provided to the public via media releases, website updates, social media and onsite signage. In 2016-17, the community was advised of project milestones, changes to traffic, cycling and pedestrian movements and alternative parking options.

219

Westside, City to the LakeFrom 29 August to 16 September 2016, the community were invited to comment on a Works Approval application seeking an extension for Westside Village for a further two and a half years. The three-week consultation process was conducted by the National Capital Authority (NCA) as the agency with responsibility for development proposals at West Basin.

The consultation process was advertised on social media, as well as in the local press. Eight notification signs were also posted around the perimeter of Westside and registered stakeholders received letters asking for feedback. The public were invited to provide feedback at a drop-in session at Westside on 8 September 2016, via social media, on the NCA website or in writing.

The NCA received 62 formal submissions on the proposal. Of these, 42 submissions did not support the proposal, while 20 submissions, including two petitions, supported the retention of Westside.

On 17 November 2016, the NCA announced the application for a two and a half year extension was not supported, but works approval for the site would be extended by 12 months until 19 November 2017. On 21 December 2016, the ACT Government announced that Westside would cease trading on 30 April 2017. The decision to close the site before winter was made in consultation with traders.

Kingston ForeshoreThere was ongoing community engagement with Kingston Foreshore stakeholders. This has included:

> Kingston Foreshore Shoreline newsletters;

> Kingston Arts Precinct – Arts Groups and local resident groups;

> Meetings with commercial boat operators and Lake User Group associated with harbour facilities;

> Meetings with rowing stakeholders (including Capital Lakes Rowing Club) to establish the new facilities at Grevillea Park;

> Residents and stakeholder meetings; and

> General progress update/consultation.

Block 29 Section 149 BelconnenOn 12 December 2016 the LDA advertised Block 29 Section 149 Belconnen for sale by a Request for Expression of Interest, closing 16 February 2017.

Community consultation activities included meetings with the Belconnen Community Council (BCC) Executive in May 2016 and January 2017 to discuss the issues and sale of the site; a presentation to the BCC meeting in June 2016; and attendance at a BCC hosted ‘farewell party’ to the water police building in February 2017. The BCC was also part of a stakeholder group briefing in November 2016 (along with Lake Ginninderra Sea Scouts and the Belconnen Arts Centre) on the sale of the site. This stakeholder group had input into the drafting of the evaluation criteria for the Request for Expression of Interest, and also prepared a ‘Community Vision for the Foreshore Precinct’ document that was included in the annexure. Nearby residents and businesses were also kept informed of progress of the sale and demolition of the site through regular notification letters distributed through the mail.

The Request for Expression of Interest was discontinued after submissions received were deemed to be non-compliant with the requirements. Subsequent discussions with the stakeholder group in April 2017 resulted in alternative delivery options being identified. These options are now being considered to sell the site.

Parkes Section 3Extensive consultation has been undertaken in relation to proposed future development in Parkes Section 3, with the Canberra Institute of Technology (CIT), Pedal Power, the community and the Commonwealth Department of Finance.


SPONSORSHIP PROGRAMS

OVERVIEW OF DIRECTORATE/AGENCY APPROACH TO SUPPORTThe LDA received a range of approaches to enter into partnerships and sponsorship arrangements. The support requested may be in the form of cash payment, in-kind support through provision of goods, labour or services, or a combination of these.

LDA SPONSORSHIPSOutgoing sponsorship provided an opportunity to enhance the LDA’s and ACT Government’s corporate identity and to promote government delivered programs and services.

Recipient Project Purpose/Summary Amount ($) inc GST

Leukaemia Foundation Sponsorship of the ‘Light the Night’ event held at Kingston Foreshore 2016.

$5,000

Salvation Army Sponsorship of the Christmas Carols at Tuggeranong Town Park $5,000

Communities@Work Key sponsor of the ‘Celebrate Gungahlin’ Festival $15,800

Master Builders Association Sponsorship of the Civil Contractors Federation Earth Awards 2016 $1,200

PARTNERSHIP PROGRAMThe LDA and the MBA (in association with Renaissance Homes and other sponsor agencies) developed the Deakin Charity House Project. The Charity House Project delivered two house and land packages to market for auction in late 2016, the net proceeds were distributed to local charities supporting people with a disability. The Project was based on:

> showcasing adaptability features;

> good design including solar orientation, efficient use of space and light;

> selection of materials which maintain a balance of amenity and low lifetime cost; and

> inclusions that provide high efficiency ratings for energy and water appliances.



221

SECTION O

SECTION O: JUSTICE AND COMMUNITY SAFETY

222

O. JUSTICE AND COMMUNITY SAFETYThe LDA has provided input to the Justice and Community Safety Directorate in relation to bushfire risk management, freedom of information, human rights and legal services directions for inclusion in the 2016-17 Justice and Community Safety Directorate Annual Report.


Neil Bullessnterim Chief Executive OfficerSuburban Land Agency+61 2 6205 [email protected]


SECTION P

SECTION P: PUBLIC SECTOR STANDARDS AND WORKFORCE PROFILE

224

P. PUBLIC SECTOR STANDARDS AND WORKFORCE PROFILEThe LDA has provided input to the Commissioner for Public Administration in relation to the Agency’s culture and behaviours, Public Interest Disclosures and workforce profile for inclusion in the 2016-17 State of Service Report.




SECTION Q

SECTION Q: TERRITORY RECORDS

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Q. TERRITORY RECORDSThe LDA has provided input to the Director of Territory Records on the Agency’s records management program for inclusion in the 2016-17 Director of Territory Records Annual Report.




ANNUAL REPORT 2016-17


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ANNUAL REPORT 2016-17 - Suburban Land Agency · The LDA was an ACT Government agency within the...

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