ANNUAL REPORT 2017–18 - Suburban Land Agency · of annual reports. The 2017-18 Suburban Land...

SUBURBAN LAND AGENCY

ANNUAL REPORT

2017–18

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2 Suburban Land Agency: Annual Report 2017-18

ISBN: 978 0 642 60671 6

© Australian Capital Territory, Canberra, October 2018 Material in this publication may be reproduced provided due acknowledgement is made.

First published October 2018

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 Suburban Land Agency.

Publication No 180860 Printed on recycled paper.

http://www.act.gov.au

http://www.suburbanland.act.gov.au

http://www.suburbanland.act.gov.au

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Contents

Accessibility 2

Abbreviations and Acronyms 4

SECTION A:Transmittal Certificate 5

Compliance Statement 7

SECTION B: Organisation Overview and Peformance 9

B.1 Organisational Overview 10

B.2 Performance Analysis 23

B.3 Scrutiny 26

B.4 Risk Management 27

B.5 Internal Audit 28

B.6 Fraud Prevention 29

B.7 Work Health and Safety 30

B.8 Human Resources Management 31

B.9 Ecologically Sustainable Development 35

SECTION C: Financial Management Reporting 41

C.1 Financial Management Analysis 42

C.2 Financial Statements 53

C.3 Capital Works 147

C.4 Asset Management 151

C.5 Government Contracting 152

C.6 Statement of Performance 159

SECTION D: Notices of Non‑Compliance 172

D.1 Dangerous Substances 173

D.2 Medicines, Poisons and Therapeutic Goods 173

SECTION E: Chief Minister, Treasury and Economic Development 174

SECTION F: Education and Training 176

SECTION G: Health 178

SECTION H: Gambling and Racing 180

SECTION I: Ministerial and Director‑General Directions 182

SECTION J: Public Land Management Plans 184

SECTION K: Third Party Insurance 186

SECTION L: Victims of Crime 188

SECTION M: Waste Minimisation Contraventions 190

SECTION N: Community Engagement and Support 192

SECTION O: Justice and Community Safety 198

SECTION P: Public Sector Standards and Workforce Profile 200

SECTION Q:Territory Records 202

Appendix A 204

Index 209


ABBREVIATIONS AND ACRONYMSACT Australian Capital Territory

ACAT ACT Civil and Administrative Tribunal

ACTIA ACT Insurance Authority

ACTPG ACT Property Group

ACTPS ACT Public Service

ARI Asset Recycling Initiative

ARIn Attraction and Retention Incentive

BARC Board Audit and Risk Committee

CEO Chief Executive Officer

CIT Canberra Institute of Technology

CMTEDD Chief Minister, Treasury and Economic Development Directorate

CRA City Renewal Authority

CSS Commonwealth Superannuation Scheme

DTF Department of Treasury and Finance

EPSDD Environment, Planning and Sustainable Development Directorate

FOI Freedom of Information

GST Goods and Services Tax

HR Human Resources

ILRP Indicative Land Release Program

IZ1 General Industrial Land

KMP Key Management Personnel

LDA Land Development Agency

NSW New South Wales

NTER National Tax Equivalent Regime

PHRT Public Housing Renewal Taskforce

PIA Planning Institute of Australia

PRZ1 Urban Open Space

PSS Public Sector Superannuation Scheme

SERBIR Senior Executive Responsible for Business Integrity Risk

SOI Statement of Intent

TCCS Transport Canberra and City Services

WhoG Whole of Government

WHS Work Health and Safety

SECTION A

SECTION A:TRANSMITTAL CERTIFICATE

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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 7(2) of the Annual Reports (Government Agencies) Act 2004 (the Act) and in accordance with the requirements of the Annual Reports (Government Agencies) Notice 2017 issued under the Act.

The report has been prepared in conformity with other legislation applicable to the preparation of the annual report by the Suburban Land Agency.

We certify that information in this 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 Suburban Land Agency has been included for the period 1 July 2017 to 30 June 2018.

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

Section 13 of the Act requires that you present the report to the ACT Legislative Assembly within 15 weeks after the end of the reporting year.

John Fitzgerald

Chair Suburban Land Agency Board

18 September 2018

John Dietz

Chief Executive Officer Suburban Land Agency

18 September 2018

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COMPLIANCE STATEMENT

The 2017-18 Suburban Land Agency 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

The Compliance Statement indicates the subsections, under the five Parts of the Directions, that are applicable to the Suburban Land Agency and the location of information that satisfies these requirements:

Part 1 Directions OverviewThe requirements under Part 1 of the Directions relate to the purpose, timing and distribution, and record keeping of annual reports. The 2017-18 Suburban Land Agency 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 Suburban Land Agency are available within the 2017-18 Suburban Land Agency Annual Report to give readers an opportunity to provide feedback.

Part 2 Directorate and Public Sector Body Annual Report RequirementsThe requirements within Part 2 of the Directions are mandatory for all directorates and public sector bodies and the Suburban Land Agency complies with all subsections. The information that satisfies the requirements of Part 2 is found in the 2017-18 Suburban Land Agency Annual Report as follows:

Transmittal Certificate, see page 6.

Organisational Overview and Performance, inclusive of all subsections, see pages 9-40.

Financial Management Reporting, inclusive of all subsections, see pages 41-170.

Part 3 Reporting by ExceptionThe Suburban Land Agency has nil information to report by exception under Part 3 of the Directions for the 2017-18 reporting period.

Part 4 Directorate and Public Sector Body Specific Annual Report Requirements The following subsections under Part 4 of the Directions are applicable to the Suburban Land Agency and can be found within our 2017-18 Annual Report:

I. MinisterialandDirector-GeneralDirections,seepage 183.

J. Public Land Management Plans, see page 185.

http://www.legislation.act.gov.au


Part 5 Whole of Government Annual ReportingAll subsections under Part 5 of the Directions apply to the Suburban Land Agency. 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 192 -197. Please note some of this information is also included in the 2017-18 Environment, Planning and Sustainable Development Directorate Annual Report.

O. Justice and Community Safety, including all subsections O.1 – O.4, see the 2017-18 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 Head of Service.

Q. Territory Records, see the 2017-18 annual report of the Environment, Planning and Sustainable 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 reviewed (where a statement of performance is required by legislation).

http://www.cmd.act.gov.au/open_government/report/annual_reports

SECTION B

SECTION B: ORGANISATION OVERVIEW AND PEFORMANCE

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B.1 ORGANISATIONAL OVERVIEW

Our visionThe Suburban Land Agency creates great places by promoting inclusive and thriving communities within people-focussed neighbourhoods. This includes the delivery of suburban development which supports:

> affordable living

> a safe and healthy population

> social inclusion

> housing choices

> environmental sustainability

Mission and valuesThe Suburban Land Agency ensures people are at the heart of every neighbourhood we design and deliver.

Our development projects aim to connect residents with their suburb and community. We offer a choice of land that supports housing types catering to the different stages of life, providing all Canberrans with an opportunity to own a home.

We act in a trustworthy, responsible and professional manner to ensure the long-term social, environmental and economic priorities of the ACT Government are considered when developing and selling land. We uphold the ACT Public Service (ACTPS) values of Respect, Integrity, Collaboration and Innovation through our activities and the decisions we make.

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Our roleThe Suburban Land Agency is a statutory authority. Our core role is developing and releasing suburban land on behalf of the ACT Government. This includes land for residential, commercial, industrial and community purposes.

Establishment The Suburban Land Agency was established as a statutory authority under the City Renewal Authority and Suburban Land Agency Act 2017.

Our 2017-18 Statement of Intent (SOI) outlined our statutory objectives, as well as the deliverables expected by the Minister. We are required to comply with directions given by the relevant minister under Section 41 of the City Renewal Authority and Suburban Land Agency Act 2017. A summary of performance against these objectives is provided at Section B.2 (Performance Analysis) of this Report.

We have an independent governing Board (the Board). The Board was established, and members appointed under Section 45 of the City Renewal Authority and Suburban Land Agency Act 2017. The Board’s main role is to govern the Suburban Land Agency in accordance with the Financial Management Act 1996 and the City Renewal Authority and Suburban Land Agency Act 2017.

In accordance with Section 50 of the City Renewal Authority and Suburban Land Agency Act 2017, the Board appointed a Board Audit and Risk Committee (BARC) and a People and Transition Committee (see Section B.8).


Functions and servicesThe Suburban Land Agency is responsible for developing and releasing suburban land, encouraging and promoting urban renewal outside of declared urban renewal precincts, contributing to the growth and diversification of the Territory’s economy, and social and environmental sustainability. In exercising these functions, we must also operate in a way that delivers value for money, in accordance with sound risk management practices.

Our key functions outlined in the City Renewal Authority and Suburban Land Agency Act 2017 are:

> buying and selling leases of land on behalf of the Territory

> ensuring a mixture of public and private housing in new suburbs

> increasing the supply of affordable and community housing

> meeting housing targets

> carrying out development of land in a manner that is environmentally sustainable

> exercising our functions in a way that supports statutory greenhouse gas emissions targets and delivers environmentally sustainable development

> following and supporting Whole of Government (WhoG) strategies

Clients and stakeholdersThe Suburban Land Agency’s principal client is the ACT community, who we actively engage with in all facets of our land development activities. We regularly seek their views and strive to deliver socially, financially and environmentally responsible land and urban development outcomes.

We work closely with the ACT Government, relevant ministers and other primary stakeholders, including:

> community council and groups

> builders, suppliers and contractors

> local and international industry and business groups

> ACT Government directorates and other agencies and authorities

Organisational structureThe Suburban Land Agency is a statutory authority within the Environment, Planning and Sustainable Development portfolio.

Under the Administrative Arrangements 2017 No 1, Environment, Planning and Sustainable Development Directorate (EPSDD) was required to provide administrative support and advice to ministers and our executive on all relevant matters.

Working openly and collaboratively with the EPSDD helped strengthen our operations.

Office of the Chief Executive OfficerThe Suburban Land Agency’s Chief Executive Officer (CEO) was appointed by the Board and engaged under the Public Sector Management Act 1994. The CEO is accountable to the Board for the operations of the entity and management of staff. The CEO is not a member of the Board.

As per the City Renewal Authority and Suburban Land Agency Act 2017 and delegations from the Board, the CEO is responsible for managing the day-to-day operations in line with WhoG policies and legislative requirements, including:

> ensuring compliance with the Board’s decisions

> managing the Suburban Land Agency’s finances

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> developing and implementing, with the approval of the Board, corporate and operational strategies

> providing information and advice to the Board on relevant matters

> other functions as required by the Board

The Deputy CEO, Executive Support Unit and the Business Operations Team formed part of the Office of the CEO. They reported directly to the CEO and were responsible for:

> providing strategic advice and support to the CEO, the Board (including its Committees) and Executive

> managing day-to-day business including governance, human resources (HR), records management and Board operations and accountabilities

> managing the Service Level Agreement with EPSDD

> facilitating the Suburban Land Agency’s responses to issues raised by the community, industry, Ministers and other government agencies

GreenfieldThe Greenfield branch was responsible for delivering Greenfield land development activities in accordance with the Indicative Land Release Program (ILRP). This included the development of Government-owned land releases for residential, commercial, industrial and community purposes.

The branch managed greenfield projects from planning through to delivery, including:

> procurement and project management of consultant, civil and landscape construction works

> delivering environmentally and socially sustainable land developments

> undertaking complex negotiation of development outcomes to meet planning, policy and community expectations

Urban Projects, Sales and MarketingThe Urban Projects, Sales and Marketing branch comprised five teams, including Urban Projects, Sales and Marketing, Mingle Program, Valuations1 and Estate Management. The responsibilities of each were as follows.

Urban ProjectsThe Urban Projects team was responsible for the delivery of urban infill, single site sales and urban land development activities. The team managed projects through early feasibility, community consultation, planning delivery and civil construction, including:

> procurement and project management of consultant, civil and landscape construction works, including building and landscape construction and demolition

> undertaking community consultation and engagement

> delivering environmentally and socially sustainable land developments

> meeting affordable, community and social housing targets

> undertaking complex negotiation of development outcomes to meet planning, policy and community expectations

Sales and Marketing The Sales and Marketing team was responsible for:

> managing the sales process and associated policy requirements for greenfield sites, urban redevelopment sites and surplus Government properties

> preparing and developing sales and marketing packages and campaigns for greenfield, urban redevelopment sites and surplus Government properties

1 The Valuations team was transferred to the Finance team towards the end of the financial year.


> designing and maintaining the Suburban Land Agency brand, website and social media

> providing advice related to new suburbs, precincts and development sites on product mix, type and affordable housing options

> liaising with, and managing, client and stakeholder relationships

> managing the provision of commercial and residential property agents and legal service providers through procurement panel arrangements

Mingle ProgramThe Mingle Program team was responsible for:

> facilitating community involvement and activation in greenfield estates

> developing innovative communication tools to inform and educate the community

> building and maintaining relationships and partnerships with residents, stakeholders and the wider ACT Government

> managing land development events, including corporate and ministerial events

> coordinating sponsorship and partnership arrangements

Valuations and Estate Management The Valuations and Estate Management team was responsible for:

> managing valuation services for the ACT Government

> setting reserve and forecast values for financial reporting

> providing market analysis and reporting

> undertaking land management services, including estate maintenance

> preparing and approving bushfire management plans

> managing short term properties and assets

> coordinating land custodian and licence arrangements

Finance The Finance team was led by the Chief Financial Officer, with support from the Financial Controller. The team was responsible for project accounting, financial accounting, management accounting, transactional accounting, taxation and internal and external budgeting.

The team comprised of two key functional sections, including: Project Accounting, which provided support internally, and Financial Accounting, which focused on external reporting and requirements.

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Our structure – as at 30 June 2018

MINISTER FOR HOUSING AND SUBURBAN DEVELOPMENT

Ms Yvette Berry MLA

MINISTER FOR URBAN RENEWAL

Mr Mick Gentleman MLA

SUBURBAN LAND AGENCY BOARD

CHIEF EXECUTIVE OFFICER

Mr John Dietz

DEPUTY CHIEF EXECUTIVE OFFICER

Mr Neil Bulless

EXECUTIVE DIRECTOR, GREENFIELD

Mr Tom Gordon

CHIEF FINANCIAL OFFICER

Mr Joseph Lee

DIRECTOR, URBAN PROJECTS, SALES AND MARKETING

Mr Clint Peters


Internal accountability

Suburban Land Agency BoardThe Suburban Land Agency Board was established as a governing board under section 45 of the City Renewal Authority and Suburban Land Agency Act 2017. All members of the Board have knowledge of, or experience in, at least one of the following disciplines and areas of expertise:

> urban design and planning

> social inclusion and community building

> civil engineering and civil works

> real estate sales

> property development

> law, public administration and governance

> affordable housing, community housing and public housing

> environmentally sustainable development

Under section 56 of the Financial Management Act 1996, the Board is responsible for the efficient and effective financial management of the Suburban Land Agency. Section 77 of the Financial Management Act 1996 states the functions of a governing board as follows:

> setting the authority’s policies and strategies

> governing the agency consistently with the authority’s establishing Act and other relevant legislation

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

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

The Suburban Land Agency Board consists of five members who have all served as members since the Board’s establishment.

A total of 16 meetings were held during the 2017-18 financial year. Four of these meetings were extraordinary meetings.

Board attendance 2017-18

Name Position Meetings Attended

Meetings Held During Tenure

John Fitzgerald Chair 16 16Suzanne Jones Deputy Chair 15 16Peter Howman Member 15 16Julie Garland McLellan Member 16 16Angus Dawson Member 16 16

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Board members

John Fitzgerald (Chair)John has extensive experience in infrastructure policy and delivery, public transport and urban renewal. He also has a strong background in governance, finance and commercial negotiations. Until recently he was a Specialist Advisor to KPMG and CEO of Infrastructure Australia, leading the organisation through substantial change and the production of the Australian Infrastructure Audit.

He is Chairman of Evolution Rail Pty Ltd (manufactures and maintains high capacity metro trains), Infranexus Management Pty Ltd (an IFM Investors subsidiary) and the Transport Canberra Light Rail Board. He is also a Director on the Barangaroo Delivery Authority and the Victorian Funds Management Corporation Boards. John’s previous positions included Chair of NSW Government’s Sydney International Convention, Exhibition and Entertainment Precinct project and the Director of the Port of Melbourne Corporation and Infrastructure Partnerships Australia.

Prior to joining KPMG in 2011, John was Deputy Secretary at the Victorian Department of Treasury and Finance (DTF). Before joining DTF in 2000, his background was predominantly in investment banking.

John holds a Master of Public Infrastructure (Research) from the University of Melbourne and is a Fellow of the Australian Institute of Company Directors and the Institute of Public Administration Australia (Victoria).

Suzanne Jones (Deputy Chair)Suzanne has held various senior Executive and non-Executive roles within transport and energy, infrastructure planning and delivery, environmental assessment and sustainability, resource and asset management, property development, tourism, and vocational education and training.

Suzanne is currently the chair of New South Wales Landcom and the national infrastructure industry association, Dial Before You Dig. She is also the Director of Smoke Alarms Holdings Ltd and a member of the Commonwealth Government’s Emissions Reduction Assurance Committee.

At the end of December 2016, Suzanne completed eight years on the NSW National Parks and Wildlife Council, serving as its Chair for four years. Suzanne was a Director of TransGrid, Australia’s largest transmission network, for four years prior to its successful privatization in December 2015. She was also the founding chair of Waste Aid (a not-for-profit organisation working with remote Aboriginal communities).

Previously, Suzanne served as a Director of the NSW Public Transport Authority, Parramatta Rail Link Pty Ltd (which financed and constructed the $2.3 billion Chatswood to Epping underground railway), the Illawarra Regional Information Service, Newcastle Urban Renewal and Transport, the Australian Astronomical Observatory and Garrigal Housing.

Suzanne holds a Bachelor of Town Planning (Honours) from the University of NSW and a Master of Business Administration from the University of Rochester. She is a Fellow of the Australian Institute of Company Directors and a Member of the Planning Institute of Australia (PIA). Suzanne has undertaken a business leadership course at Harvard, a corporate governance course at Insead and was awarded an international leadership fellowship by the United States Government.


Peter Howman (Member)Peter has over a decade of Board level experience across the public, commercial and not for profit sectors, including Property funds, Urban Development, Housing construction, High Technology and Investment Management. He holds positions as an Executive Director and Chair, Non-Executive Director and Board Committee Member.

Peter brings experience in all major Board disciplines, including accounting, audit, finance, governance, legal, policy, high technology, strategy and specifically property. In an executive capacity, Peter has run a range of organisations, including large multi-nationals from high technology start-ups, and multibillion dollar residential development and property management.

Peter is a former Director of the Urban Development Institute of Australia in NSW and is a member of the Urban Renew Committee and the Award Judging Panels in NSW.

Peter is a Fellow of the Australian Institute of Company Directors. He has a Master of Science in Sustainable Urban Development from Oxford University with a dissertation titled ‘Imagining the Real: The Post Autonomous Vehicle City’. Additionally, Peter has been awarded a Master of Business Administration, a Graduate Diploma in Management and a Graduate Diploma in Computer Science. He has also completed many Australian Institute of Company Director’s courses. Peter was announced as Australia’s CEO of the Year in 2015-16 by the Customer Services Institute of Australia.

Julie Garland McLellan (Member)Julie Garland McLellan is a professional Director with experience across a range of Boards in the not-for-profit, government and commercial sectors.

She has served on the Boards of Melbourne Water Corporation, Victorian Energy Networks Corporation, City West Water, Victorian Minerals and Energy Council, the University of Melbourne’s Engineering Foundation, Kimbriki Environmental Enterprises, Oldfields Holdings, Hats Holdings, Professional Speakers Association, Kyoto Energy, Wind Hydrogen, Bounty Mining, Melbourne Chamber of Mines, Fitness Australia, and Hassall & Associates.

Julie has held senior management, strategic planning and Executive leadership roles with major and international corporations, including Thames Water, Tillyard, BHP, KPMG and Gamesa Energy Australia.

Julie holds a Bachelor of Civil Engineering (Honours) from City University, London, an Executive Master of Business Administration from the Instituto de Empresa Madrid and a Graduate Diploma in Applied Finance and Investment from the Securities Institute (now FINSIA). She has also been awarded a Diploma of Company Directorship and an Advanced Diploma in Company Directorship from the Australian Institute of Company Directors.

She is a Fellow of the Australian Institute of Company Directors and a Certified Speaking Professional with Professional Speakers Australia. Julie has written textbooks on Company Directorship for the commercial, government and not for profit sectors.

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Angus Dawson (Member)Angus Dawson has over 35 years’ experience in property development and commercial construction. He has worked in senior executive roles in private and public sector organisations in NSW, Queensland and throughout the United Kingdom.

As CEO, Angus led the NSW Government’s delivery of the $3.45 billion Building the Education Revolution, the Growth Centres Commission and the Honeysuckle Development Corporation.

In the private sector, Angus established Lansdown Homes, an integrated residential development company in Sydney and Brisbane, becoming its first General Manager and later a Director. Lansdown achieved a $70 million turnover in its second operational year. He was instrumental in bringing the development division of Urban Pacific (formerly Pioneer Homes) to commercial profitability.

Angus has sat on numerous Boards, government selection panels and review committees. These include the Board of the Illawarra Housing Trust, Penrith City Council’s Property Development Advisory Panel, the Premier’s Urban Design Advisory Committee, the Rouse Hill Town Centre and Barangaroo assessment panels, and the inter-Governmental task force for the acquisition of BHP’s land holdings in Newcastle. He is a former president of the NSW division of the Urban Development Institute of Australia.

Angus holds a Bachelor of Applied Science (Building), is a member of the Australian Institute of Company Directors and is a life member of the Urban Development Institute of Australia.

Remuneration for Chief Executive Officer and Suburban Land Agency 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 2018

Name PositionJohn Dietz Chief Executive Officer Neil Bulless Deputy Chief Executive Officer Tom Gordon Executive Director, Greenfield

Joint venture management committees

West BelconnenThe West Belconnen Joint Venture (Ginninderry) is a shared operation between the Territory, represented by the Suburban Land Agency and Riverview Pty Limited. Ginninderry will develop land in the ACT and NSW to help meet future demands for housing.

The Joint Venture is managed by a Joint Venture Board and a Project Control Group to manage the operational aspects of the site.

CraceCrace was developed as a joint venture between the former Land Development Agency (LDA) and Crace Developments Pty Ltd. This was a consortium led by the project manager and majority partner, CIC Australia Limited, as well as Defence Housing Australia, Tatebrook Pty Ltd and Community Housing Canberra Affordable Housing.


Report by the ChairOn 1 July 2017, the City Renewal Authority and Suburban Land Agency Act 2017 came into effect and formally established the Suburban Land Agency and City Renewal Authority (CRA).

The Suburban Land Agency was established to deliver the ACT Government’s land development program, which includes residential, commercial, industrial and mixed-use land for community purposes. Under the City Renewal Authority and Suburban Land Agency Act 2017, we have standing as a statutory authority, with a governing Board reporting directly to the Minister.

Our responsibilities include balancing the environmental, social and economic impacts of all developments we design and deliver. We have demonstrated this through various activities, including:

> community development programs such as Mingle

> effective stakeholder engagement activities

> environmentally sustainable developments

> improving public realm and place making

> delivering on the targets set out in the ILRP

Since our inception, we have been through a range of transitional changes. Improved governance, our vision, strategy and work health safety have been key areas of our focus. In establishing our new entity, following the abolition of the former LDA, the ACT Government implemented revised Administrative Arrangements. These arrangements identify EPSDD as our administrative unit.

Our new governing Board was appointed in July 2017 and our new CEO commenced in November 2017. The Board established the BARC and the People and Transition Committee to assist with:

> fulfilling its due care

> diligence and skill in relation to risk management

> reporting of financial information

> the adequacy of financial controls and legal and regulatory compliance frameworks

> external and internal audits

> significant human resource issues

Throughout 2017-18, we focused on establishing our own vision. This vision is underpinned by the ACTPS Values, which also form part of a strategy to help us deliver against our key focus areas of culture, business improvement, community needs, affordable living and climate adaptation.

Work Health and Safety (WHS) has been a priority for our Board and Executive. ‘Safety first’ is central to our culture and is a pillar to our decision making. We have also developed a Safety Management Framework, which sets out our WHS commitment and expectations. This was approved by the Board and promoted to staff through our intranet.

The Suburban Land Agency delivered an operating surplus of $161.3 million and provided $323.7 million in returns to the ACT Government for the 2017-18 reporting period. This was below the target set within the SOI largely due to delayed settlements of the Red Hill Housing Precinct Asset Recycling Initiative (ARI), Denman Prospect 2 and residential land at Throsby. Land was released for 4,203 dwellings, which exceeded the 4,120 target in the ILRP.

John Fitzgerald

Chair

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Report by the Chief Executive Officer

Our visionThe Suburban Land Agency is responsible for balancing financial, social and environmental objectives as set out in the City Renewal Authority and Suburban Land Agency Act 2017 and our Minister’s Statement of Expectations. Our vision is to create “great places where communities thrive”. We meet this vision through our five key strategic focus areas, including culture, business improvement, community needs, affordable living and climate adaptation. In 2017-18, we reviewed our capability, systems, policy framework and structure, and embarked on change programs within the organisation to better deliver on this vision.

Workplace health and safetyThe Suburban Land Agency is committed to the health, safety and welfare of our staff. We regard safety with the utmost importance and expect all organisations who work with us to prioritise workplace health and safety. This includes those contracted to perform work on our behalf, volunteers and all visitors to our workplace and development sites.

During the year, we developed a Safety Management Framework setting out our WHS commitment and expectations. Our active certification audits continued to be well received by our civil contractors and further improvements were made to safety systems across the civil construction industry.

We managed WHS activities and obligations in accordance with the statutory provisions of the Work Health and Safety Act 2011. These were supported by a range of WhoG WHS and return to work policies and initiatives. The EPSDD People and Capability team also provided guidance and support in the implementation of requirements under the Work Health and Safety Act 2011 through a Service Level Agreement.

OperationsIn 2017-18, 4,203 dwellings were released, which exceeded the 4,120 target in the ILRP. This was despite delays to the West Belconnen Joint Venture, caused by an application to the ACT Civil and Administrative Tribunal by the Ginninderra Falls Association. This led to an 8-month delay in the project.

Sales continued to be strong for mixed-use and multi-unit products. The single residential market showed signs that supply is improving to meet demand, with 119 blocks available for purchase across three suburbs at 30 June 2018. Releases of single residential, multi-unit and mixed-use sites continued in Gungahlin, with releases in Taylor, Throsby and the Gungahlin Town Centre.

The development of the Molonglo Valley continued with construction and sales commencing in North Wright and North Coombs, along with the sale of a mixed-use site in Wright for $10.25 million. Tuggeranong releases consisted of multi-unit sites in the final stage of Southquay and Section 28 in Greenway. Industrial land was also released in Hume. The auction of a community use site in Macgregor and a call for Expressions of Interest for an Englobo parcel in Lawson accounted for all land releases in Belconnen. A community use site in Red Hill was also sold at auction for $1.98 million.

The release of 288 affordable housing, 113 public housing and 20 community housing sites were achieved, with affordable housing dwellings to be onsold to identified, eligible buyers. This was against targets of 353 affordable housing, 143 public housing and 34 community housing dwellings. The remaining deliverables against the housing targets will be carried over to next year, including 30 public housing dwellings in Greenway East (subject to confirmation but site identified and set aside), 65 affordable and 14 community housing dwellings in Strathnairn.

In support of the Commonwealth ARI, we released the Red Hill Housing Precinct which sold for $50.13 million. Two significant sites adjacent to Haig Park, Braddon and Turner on Northbourne Avenue were also released in conjunction with CRA. Tenders for these sites will be assessed on design and build quality to support the creation of a landmark entryway to the city.

In addition to residential land releases, we released 97,161m2 of land for mixed-use development against a target of 77,000m2. The demand for general industrial zoned land (IZ1) was largely met from land inventory established in previous years. In 2017-18, we released 24,538m2 of industrial land to the market, which was just below the target of 30,000m2. The community and non-urban land release program also supplied a large volume of land


to support the needs of Canberra’s urban growth. 139,429m2 of land was released against a target of 56,200m2, which included the direct sales of a non-government school site in Moncrieff, and a site for the development of a learning centre on the edge of Mulligans Flat.

In 2017-18, our Mingle Program continued to ensure our new developments were inclusive places where people felt connected to their suburb and community.

Financial outcomeIn 2017-18, we delivered an operating surplus of $161.3 million and provided $323.7 million in returns to the ACT Government. Land sales revenue of $388.1 million for this reporting period was largely driven by our residential greenfield estates of Taylor and Throsby, as well as the sale of Government assets through the Commonwealth ARI. This was below the target set within the SOI and largely due to delayed settlements of the Red Hill Housing Precinct as part of the ARI, Denman Prospect 2 and residential land at Throsby.

We finished the year to 30 June 2018 with strong asset holdings of $473.9 million, which included $254.6 million of inventories. Our outlook is positive, with large targets in land sales expected in the 2018-19 financial year, as well as the completion of the ARI and the commencement of Ginninderry settlements.

In our inaugural year, I would like to congratulate and thank all employees, our Board, our Minister and all parts of Government for working with us to achieve the delivery and change outcomes expected.

John Dietz

Chief Executive Officer

Further information can be obtained from:

John Dietz Chief Executive Officer Suburban Land Agency +61 2 6205 0600

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B.2 PERFORMANCE ANALYSIS

2017-18 Objective 1 The Suburban Land Agency encourages and promotes inclusive communities.

We are responsible for ensuring new developments are liveable places where citizens feel connected to their suburb and community. We achieve this through our Mingle Program, additional social and environmental sustainability initiatives and the delivery of a diverse range of land release options in all our developments.

The Mingle Program aims to build community connections and establish vibrant communities. In 2017-18, we created regular events such as weekly playgroups, residents meetings, book clubs and garden clubs in Moncrieff, the Molonglo Valley and Throsby. We also hosted key events targeted at community connections, including the Stromlo Cottage Open Days, a Biggest Morning Tea event, a Brekkie in the Park event and a Community Sports Day.

The Suburban Land Agency encourages and promotes social and environmental sustainability by developing land in an environmentally sustainable manner. In 2017-18 we undertook a range of activities in relation to conserving and enhancing biodiversity in the design and construction of our estates, including:

> reducing emissions from waste and reusing materials

> reducing water use and improving water quality

> reducing energy use and using renewable energy

> reducing and offsetting emissions from transport and adapting to a changing climate

Social sustainability is also important and we continue to undertake a range of activities to support affordable living by encouraging safe and healthy people, promoting social inclusion and providing housing choice.

While outlined in further detail at Section B.9, examples of these activities included:

> limiting construction activity near the breeding grounds of the Superb Parrot in Throsby

> holding a tree planting event for Molonglo Valley residents

> refurbishing Stromlo Cottage for community use

> holding Clean Up Australia Day events in Moncrieff and the Molonglo Valley, and checking water quality in a number of billabongs in Taylor

> running ACTSmart information sessions for purchasers in Throsby and Moncrieff, including creating an active travel street in North Wright

> planting trees in open spaces and retaining Aboriginal scar trees in Taylor and Throsby

> planning community gardens and edible verges in Ginninderry

> hosting Yoga in the Park and a Neighbourhood Safety Workshop in Moncrieff

> running the SPARK employment and training program at Ginninderry

> hosting regular events through the Mingle Program

The delivery of a diverse range of housing options supports the inclusion of all members of the Canberra community. We offered a range of block sizes and dwelling types in all developments to support a variety of housing needs.

The ACT Government established affordable, community and public housing targets as part of the 2017-18 ILRP. A summary of housing dwellings delivered compared to the targets set in accordance with the City Renewal Authority and Suburban Land Agency Act 2017, is provided in the table below:


TABLE 1: AFFORDABLE, PUBLIC AND COMMUNITY HOUSING TARGETS AND DELIVERY

Suburb Target:

Affordable Housing Dwellings

Actual:

Affordable Housing Dwellings Delivered in 2017‑18

Target:

Public Housing Dwellings

Actual:

Public Housing Dwellings Delivered in 2017‑18

Target:

Community Housing Dwellings

Actual:

Community Housing Dwellings Delivered in 2017‑18

Taylor 99 99 – – – –

North Wright 32 32 – – – –North Coombs 37 37 – – – –Strathnairn 65 –* – – 14 – *Gungahlin Town Centre – – 64 64 – –Lawson 80 80 24 24 20 20Greenway Section 28 25 25 25 25 – –Greenway East 15 15 30 – * – –Total 353 288 143 113 34 20

* Sites for 65 affordable housing dwellings and 14 community housing dwellings in Strathnairn and 30 public housing dwellings in Greenway East will be delivered in the 2018-19 financial year.

Affordable housing has been delivered through specific requirements on the purchasers of multi-unit sites in a number of the Suburban Land Agency’s estates. During 2017-18, 32 single residential sites were released under the Land Rent Scheme in Taylor.

2017-18 Objective 2 The Suburban Land Agency encourages and promotes urban renewal in a variety of areas.

The Suburban Land Agency promoted urban renewal through the initiation and delivery of projects within established residential areas. Work continued on developments including the Kingston Foreshore, Southquay Greenway and Gungahlin Town Centre, as well as ongoing communications and management for the government sale of the Canberra Brickworks site in Yarralumla.

Sustainability and quality design has been an important component in the delivery of projects. In January 2018, Nina Farrer Park in Tuggeranong was officially opened incorporating children’s play equipment, a BBQ area and a new lakefront promenade and deck. This park located centrally in Southquay allows the growing community to gather outdoors and enjoy Lake Tuggeranong.

Planning and design in the Belconnen and Woden Town Centre sites was undertaken during 2017-18 to incorporate principles of active travel, sustainable design and the provision of a mixture of community and commercial opportunities.

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2017-18 Objective 3The Suburban Land Agency operates efficiently, delivering value for money in everything we do.

We are focused on finding a balance between environmental, social and financial outcomes in all our activities.

The Suburban Land Agency established and implemented authorising frameworks and processes covering Board operations and the BARC and People and Transition Committees.

Business processes established to achieve this objective include financial and operational delegations, an investment policy, Risk Framework and risk registers, a Fraud and Corruption Prevention Policy, and a WHS Framework.

Our Board and Executive is committed to, and places a high priority on, effective risk management across all business functions. Our processes allowed the early identification and treatment of emerging risks by implementing an enterprise approach to managing strategic and operational risks, including the incorporation of appropriate fraud prevention and control processes and practices.

Following the creation of the Suburban Land Agency on 1 July 2017, the BARC oversaw the development of the Strategic Risk Register. To maintain relevance and currency, it conducted regular reviews to improve the adequacy of treatments and the adoption of additional treatments to effectively mitigate risks.

We sought to raise awareness of risk management principles and encouraged a robust risk culture where risk was considered at every level within the organisation.

All procurement was undertaken in accordance with ACT Government procurement requirements and standard conditions of tender. To ensure maximum competition and transparency, we notified upcoming major procurement opportunities on the ACT Government’s Call Tender schedule, and tenders were advertised on the ACT Government’s procurement website www.tenders.act.gov.au



http://www.tenders.act.gov.au


B.3 SCRUTINYSELECT COMMITTEE ON ESTIMATES 2017-18

Recommendation Number, Summary, and Government Response

Action Status

88. The Committee recommended the ACT Government work with the owners of the Ginninderry development and Dr Jason SharplestoreassessthebushfireriskattheGinninderry site and undertake the necessary planning adjustments in response to the findingsofDrSharples’2017report.The ACT Government agreed in-principle with the recommendation.

The Ginninderry Project is a Joint Venture between the ACT Government and Riverview Developments. TheGinninderryprojectbushfiremanagement measures have been developed on the basis of the standards set by ACT and NSW emergency services agencies and are considered to be best practice.The work of Dr Sharples and other researchersinthisfieldisongoinganditwouldbeexpectedthatasmorescientificinformation comes to light, the standards willcontinuetoevolveovertimetoreflectbest practice. This is expected to occur over the life of the Ginninderry project given its 40-year timeframe, and planning will be adjusted to suit.

In progress.

STANDING COMMITTEE ON PLANNING AND URBAN RENEWAL REPORT NO. 5 OF 2018 – INQUIRY INTO ANNUAL AND FINANCIAL REPORTS 2016-17

Recommendation Number, Summary, and Government Response

Action Status

12. The committee recommended the ACT Government cease buying rural leases for ‘strategic purposes’ until the Auditor General completed her investigation into rural land purchases by LDA.The ACT Government agreed with the recommendation.

The ACT Government did not enter into any new contracts for land zoned as Broadacre under the Territory Plan ahead of the release of the Auditor General’s Report into rural acquisitions. The Government noted the need to honour contracts entered into prior to the commencement of the Auditor-General’s investigation in May 2017 and the need not to prejudice current or future negotiations.

Complete.


John Dietz

Chief Executive Officer Suburban Land Agency +61 2 6205 0600

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B.4 RISK MANAGEMENTThe ACT Insurance Authority (ACTIA) establishes the risk management framework that applies throughout the ACT public sector. The Suburban Land Agency’s approach to risk management conforms to both the ACTIA framework and the International Standard ISO 31000:2009 - Risk Management - Principles and Guidelines.

We were committed to, and placed a high priority on, effective risk management across all functions. Our processes allowed the early identification and treatment of emerging risks by implementing an enterprise approach to managing strategic and operational risks. This included incorporating appropriate fraud prevention and control processes and practices.

Following the creation of the Suburban Land Agency on 1 July 2017, the BARC oversaw the development of our Strategic Risk Register and made recommendations to improve the adequacy of treatments and the adoption of additional treatments.

Our Executive sought to raise awareness of risk management principles and encouraged a robust risk culture where risk was considered at every level within the organisation.

Risk management principles underpinned all planning processes, including strategic planning, project management and delivery. Business integrity risk was supported by EPSDD through a Service Level Agreement that provided for the Senior Executive Responsible for Business Integrity Risk (SERBIR) and associated investigations, if required, to be conducted in a transparent and independent manner. There were no investigations conducted during 2017-18.

During 2017-18, the Board and Management reviewed, amended and/or approved:

> the Risk Management Framework, Risk Management Plan and Strategic Risk Register

> the Internal Audit Charter, the appointment of an independent internal auditor and associated audit program

> risk management resourcing and the appointment of a Senior WHS Manager and Audit and Risk Officer to oversee the development and embedding of an appropriate risk management framework

We continued to champion and comply with the ACT Government’s Active Certification Program. Under this program, all construction contracts were subject to audits conducted by an independent auditor every 13 weeks. We closely monitored findings and ensured that these were appropriately actioned by the civil contractors. These audits were a key tool that have since led to continuous improvements being made in safety systems across the civil construction industry. Monitoring of WHS during the construction phase of projects was undertaken by the relevant contractor or consultant and reported to us monthly. We provided a WHS update at each Board meeting.

In May 2018, the Suburban Land Agency, in partnership with the Civil Contractors Federation (CCF), conducted a workshop to develop a strategy to establish practical approaches for injury and incident free work sites. The ongoing aim of this partnership is to explore the ways health and safety can be improved by working together to map better systems and processes critical to operations on civil sites. We anticipate these improvements will influence:

> the safety systems we implement

> how incidents are reported and managed

> which innovative preventative measures achieve results

> the contractual models we use

> how reporting processes can add value to our businesses




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

The BARC Charter was approved by the Board and provided the framework for the conduct of our internal audit function. The Board delegated the implementation of the BARC Charter and future audit program to the Chair of BARC, including the approval of audit scopes on behalf of the Board.

The 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 either engaged or completed during 2017-18:

> LDA Staff Entitlements (carryover from former LDA).

> LDA Complete Audit Recommendations, January 2010 to June 2017 (carryover from former LDA).

> Implementation of the Chief Executive Financial Instructions.

> Performance of the Mingle Program.

The BARC played a significant role in the ongoing development and monitoring of the Suburban Land Agency Governance Program, particularly during the implementation of revised governance arrangements to assist our establishment and in response to various reviews and Auditor-General reports.

The BARC met eight times during 2017-18.

MEMBERSHIP OF THE SUBURBAN LAND AGENCY BOARD AUDIT AND RISK COMMITTEE

Name of Member Position Meetings attended

(out of 8 total)Peter Howman Chair 8Julie Garland-McLellan Member 8Margaret Walker Independent Member 7



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B.6 FRAUD PREVENTIONThe ACT Integrity Policy requires 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 to assess changes within the organisation’s operations and environment since the previous plan.

The Suburban Land Agency operated under an approved Fraud and Corruption Control Plan. Risks to fraud and corruption were identified in a dedicated Fraud Risk Register that provided the basis of our response to the discharge responsibilities as they related to the prevention of fraud and corruption.

Our Executive and the BARC oversaw the development and implementation of fraud prevention activities consistent with the controls identified in the Risk Registers.

Mandatory Fraud and Corruption Prevention Training was provided to all staff. Fraud awareness and ethics was raised through ‘all staff’ meetings and regular information provided by the Business Operations Manager. Fraud and Corruption Prevention, including reporting pathways, was a core component of EPSDD Induction Program. Fraud and Corruption Prevention Awareness education programs will continue to be made available to all staff in 2018-19.

Senior Executive responsible for Business Integrity RiskIn 2017-18, the SERBIR was the Executive Director of the Planning Delivery Division, EPSDD. The SERBIR operates under a Service Level Agreement with EPSDD and provides independent investigations of any allegation of fraud and corruption.

Under the Service Level Agreement, the SERBIR is required to support staff and members of the public who may make allegations of improper behaviour under the Public Sector Management Act 1994 (Section 9), the ACT Public Service Code of Conduct 1992 or the Public Sector Management Standards 2006 (Part 2.3 – Fraud and Corruption).

During 2017-18 there were no findings of fraudulent behaviour.




B.7 WORK HEALTH AND SAFETYWork Health and Safety was a priority for the Suburban Land Agency Board and Executive in 2017-18. WHS activities and obligations were managed in accordance with the statutory provisions of the Work Health and Safety Act 2011 and supported by a range of WhoG WHS and return to work policies and initiatives. A Senior WHS Manager was employed to ensure implementation of the requirements of the Work Health and Safety Act 2011 and ongoing development of the Suburban Land Agency WHS Framework. The EPSDD People and Capability team provided guidance and support throughout this process under the terms of a Service Level Agreement with additional support provided by the Chief Minister, Treasury and Economic Development Directorate (CMTEDD) Safety Support Team.

During 2017-18, we were not issued (under Part 10 of the Work Health and Safety Act 2011) with any Improvement, Prohibition or Non-Disturbance Notices, or failure to comply with any Enforceable Undertakings under Part 11 or Part 2 (Division 2.2, 2.3 and 2.4) of the Work Health and Safety Act 2011.

Suburban Land Agency WHS FrameworkThe Suburban Land Agency developed a Safety Management Framework, approved by the Board, to set our overarching commitment and expectations to WHS. This was published on our Intranet and promoted to staff.

The Framework provides the scope required to develop and deploy a systematic WHS management system which enables business units to meet their legislative requirements and lead sustainable improvement in WHS performance. We received support on all aspects of establishing, developing and maintaining the Framework from CMTEDD Safety Support Team.

During 2017-18, we also identified a need to update our Safety Management System. It is currently being developed to comply with the Australian Standard AS 4801. It will also meet the requirements of all health and safety aspects in the ACTPS.



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B.8 HUMAN RESOURCES MANAGEMENTThe Board of the Suburban Land Agency established a People and Transition Committee in accordance with s50(2) of the City Renewal Authority and Suburban Land Agency Act 2017. The Committee assists the Board to fulfil its oversight responsibilities in relation to significant HR issues.

During 2017-18, the People and Transition Committee met four times, providing oversight and guidance in relation to organisational capability, resources and culture, staff wellbeing and diversity and inclusion policies and strategies.

MEMBERSHIP OF THE SUBURBAN LAND AGENCY PEOPLE AND TRANSITION COMMITTEE

Name of Member Position Meetings attended (out of 4 total)

Suzanne Jones Chair 4Angus Dawson Member 4John Fitzgerald Member 3

Operational HR Services are provided to the Suburban Land Agency under a Service Level Agreement between the Suburban Land Agency and EPSDD. The EPSDD provided strategic, operational and technical advice and HR support during 2017-18.

The recruitment and on-boarding of new Suburban Land Agency staff was monitored by EPSDD to ensure compliance with Territory policies.

Performance Management, HR reporting and Learning and Development services were also provided under the Service Level Agreement.

A staff survey was conducted in 2017-18. The survey had a 95% response rate that identified a number of positive outcomes, particularly in relation to collaboration, the performance of direct supervisors and the commitment of staff to the Suburban Land Agency. The survey identified the need to improve performance management practices, raising awareness of appropriate workplace behaviours and Executive communication.

All staff within the Suburban Land Agency are required to enter into a Performance Agreement. As at 30 June 2018, staff participation was measured at 87.5%. The table below identifies the participation by unit.

Unit Yes No

Executive/Business Operations 9 2*

Urban Projects Sales Marketing 28 6

Finance 13 0

Greenfield 20 2*

TOTAL 70 10

* Contains staff who commenced in June 2018 who have two weeks to establish a Performance Agreement.


Suburban Land Agency staffing profileOn 30 June 2018, the Suburban Land Agency had a headcount of 80 people. The following tables represent the workforce.

TABLE 1: FTE AND HEADCOUNT BY DIVISION

Branch/Division FTE Headcount

Business Operations 3.0 3

Business Improvement and Digital Solutions 2.0 2

ChiefExecutiveOfficer 1.0 1

Construction 5.0 6

Financial Accounting 4.0 4

Gungahlin 2.0 2

Industrial, Commercial and Joint Venture 3.0 3

Management Finance 4.0 4

Mingle 3.4 4

Molonglo 4.7 5

OfficeofChiefExecutiveOfficer 6.0 6

OfficeofDirectorUrbanProjectsandSalesMarketing 5.0 5

OfficeofDirectorFinance 2.0 2

OfficeofExecutiveDirectorGreenfields 8.0 8

Project Accounting 3.0 3

Sales and Marketing 7.5 8

Urban 7.9 8

Valuations and Estate Management 6.0 6

Total 77.5 80

TABLE 2: FTE AND HEADCOUNT BY GENDER

Female Male Total

FTE by Gender 37.5 40.0 77.5

Headcount by Gender 39 41 80

% of Workforce 48.8% 51.3% 100.0%

TABLE 3: HEADCOUNT BY CLASSIFICATION GROUP AND GENDER

Classification Group Female Male Total

AdministrativeOfficers 13 4 17

ExecutiveOfficers 0 5 5

ProfessionalOfficers 2 0 2

SeniorOfficers 24 32 56

Total 39 41 80

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TABLE 4: HEADCOUNT BY CLASSIFICATION GROUP AND GENDER

Employment Category Female Male Total

Casual 0 0 0

Permanent Full-time 30 35 65

Permanent Part-time 5 0 5

Temporary Full-time 4 6 10

Temporary Part-time 0 0 0

Total 39 41 80

TABLE 5: DIVERSITY PROFILE

Representation Headcount % of staff

39 48.8%Staff are female

0 0%Female senior executive management

12 15%Staff are 55 years or over

1 1.25%Staff identify as an Indigenous Australian

4 5%Staff identify as having a disability

16 20%Staff are from a non-English speaking background

TABLE 6: HEADCOUNT BY AGE AND GENDER

Age Group Female Male Total

Under 25 2 0 2

25-34 14 4 18

35-44 8 19 27

45-54 13 8 21

55 and over 2 10 12

TABLE 7: AVERAGE LENGTH OF SERVICE

Gender Female Male Total

Average years of service 8.0 9.2 8.6


TABLE 8: RECRUITMENT AND SEPARATION RATES BY CLASSIFICATION GROUP

Classification Group Recruitment Rate Separation Rate

AdministrativeOfficers 28.4% 7.1%

ProfessionalOfficers 0.0% 41.9%

SeniorOfficers 8.6% 12.9%

Total 12.7% 12.7%

Classification Group Recruitment Rate Separation Rate

ExecutiveOfficers 43.3% 43.3%

TABLE 9: ATTRACTION AND RETENTION INITIATIVES (ARIns) AS AT 30 JUNE 2018

Description Total

Total number of ARIns at 30 June 2018 1

Number of new ARIns entered into during the period 0

Number of ARIns terminated during the period* 0

Number of ARIns transferred from Special Employment Arrangements in the period 0

Number of ARIns providing for privately plated vehicles 0

* Terminated ARIns may be due to staff departure, promotions or transfers.


Jaime Elton Director EPSDD People and Capability +61 2 6207 9151

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B.9 ECOLOGICALLY SUSTAINABLE DEVELOPMENT

Contribution to ecologically sustainable development

BackgroundThe Suburban Land Agency is responsible for encouraging and promoting inclusive communities, delivering people-focussed neighbourhoods, and delivering a suburban development program that supports:

> affordable living

> a safe and healthy population

> social inclusion

> housing choice

> environmental sustainability

We are responsible for encouraging and promoting both social and environmental sustainability, carrying out land development in an environmentally sustainable manner and supporting statutory greenhouse gas emissions targets.

In 2017-18, we supported sustainable outcomes for the design, construction and sale of developments in new and established areas. Early due diligence activities, including heritage and geotechnical assessments, were undertaken by EPSDD.

We also took carriage of various existing land sales and development projects, and commenced work on a number of new projects. In doing so, we delivered projects that incorporated both environmental and social sustainability.

Environmental sustainability

Conserving and enhancing biodiversity

In Throsby, the Suburban Land Agency helped improve environmental sustainability by contributing to the construction of predator proof fencing and using limited lighting near the Goorooyaroo Nature Reserve and Mulligans Flat Nature Reserve.

Construction activity was limited near the breeding grounds of the Superb Parrot, and existing tree habitats were retained. We also ensured new plantings were no more than 100 metres apart to create a suitable foraging habitat for the Superb Parrot.

Planning commenced on a linear open space system through North Wright, North Coombs and Stromlo Forest Park and more than a third of the land at Ginninderry was set aside as a conservation corridor.

The Mingle Program also held a range of activities to support biodiversity. These included:

> holding a tree planting event for Wright and Coombs residents on 27 August 2018

> inviting the Mulligans Flat Woodland Sanctuary team to Throsby events to promote the local environment and bettongs

> establishing a new Garden Club at Stromlo Cottage to help maintain the landscaped areas

We also continued to implement the offset management plan for the Yarralumla Equestrian Park site as an environmental offset for the Campbell 5 development.


Reducing emissions from waste and reusing materials

In 2017-18, the Suburban Land Agency actively managed spoil during civil construction through appropriate cut and fill activities, and the reuse of materials such as rocks. Where possible, rocks were crushed and used under footpaths, and in landscaping and retaining walls.

We also refurbished the Stromlo Cottage in Coombs for use as a community facility. The Cottage is a heritage-listed building built in 1926 and was originally the home of Charles Gibbs, the Weston Creek sewerage works caretaker. The adaptive reuse of the Cottage has reduced a generation of waste, helped reflect the building’s significant heritage value and created an accessible space for community activities.

During the refurbishment, ‘Old Canberra Bricks’ were recycled from a home in Deakin and used to create paved areas around the cottage as a Work for the Dole project. We also restored and maintained heritage items within the property for community use. These included old bath tubs and damaged gates, along with a toilet block from a Moncrieff Display Village site.

In March 2018, the Mingle Program held Clean Up Australia Day events in Moncrieff, Wright and Coombs. Mingle also managed a Communal Composting Trial in Wright and facilitated three workshops delivered by the Canberra Environment Centre.

Reducing water use and improving water quality

In 2017-18, the Suburban Land Agency undertook various civil works, including sediment and erosion control measures.

Water Sensitive Urban Design measures were also undertaken across all projects. Examples of these measures include:

> construction of a series of billabongs in Taylor to treat water quality

> planning for grassed swales, porous paving, gross pollutant traps and water quality control ponds in North Wright and North Coombs

At Ginninderry, planning work for a network of bioretention swales, wetlands and basins, along with use of stormwater for irrigation was undertaken. Irrigation of approximately two hectares of public open space occurred in Campbell 5 using stormwater harvested from the estate and surrounding catchments.

Reducing energy use and using renewable energy

In designing new developments, the Suburban Land Agency considered the orientation of blocks and street layouts to optimise solar access to homes. Two information sessions were held for land purchasers in Throsby and Moncrieff through engagement with the ACT Government’s actsmart program. These sessions aimed to encourage sustainable and energy efficient building design.

Rebates were offered in Wright and Coombs for energy efficient heating and cooling systems, and incentives were offered in Ginninderry for higher efficiency appliances and high performance housing. Land purchasers at Ginninderry were required to install solar panels and energy demand management systems.

Reducing and offsetting emissions from transport

The Suburban Land Agency included extensive pedestrian and cycle path networks in new developments to encourage the community to walk or cycle rather than drive. An active travel street was designed in North Wright to support this.

In 2017-18, all approved Estate Development Plans for new major residential projects at North Wright, North Coombs, and the second stage of Taylor ensured all dwellings were within 800 metres of public transport.

Adapting to a changing climate

Living infrastructure helps the community adapt to a changing climate. The Suburban Land Agency supported this by planting trees along streets and in public open spaces.

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Social sustainability

Creating people-focussed neighbourhoods and communities

In 2017-18, the Suburban Land Agency helped preserve cultural heritage by retaining Aboriginal scar trees in Taylor and Throsby. Place making was also an important component of designing new developments, with a sense of place created by using themes and public art. This included celebrating the Superb Parrot and other native fauna through the use of birds as entrance features and in the design of the neighbourhood playground in Throsby.

The Mingle Program was successfully delivered across a number of projects in Wright, Coombs, Moncrieff and Throsby. The program helped build community connections and establish vibrant communities in new areas. Activities held through Mingle in 2017-18 are listed below.

Moncrieff

> weekly playgroup in the park

> official opening of Moncrieff Recreation Park and Wagi Pedestrian Bridge

> new resident meetings

Wright and Coombs

> official opening of Stromlo Cottage and Cottage Open Days

> engagement activity for the Coombs Play Space

> Biggest Morning Tea event to raise funds for The Cancer Council

> National Neighbour Day Picnic and Christmas Carols

> Molonglo Valley Markets launch

> Book Box in Wright

> Dads’ Playgroup

> monthly resident meetings

Throsby

> community survey launch

> Brekkie in the Park event for future neighbours

Supporting affordable living

Access to open spaces, community facilities and different transport options are all part of affordable living. We achieved this by creating public spaces close to most homes and within all developments. Planning for community gardens, edible verges, orchards and a herb garden was also undertaken at Ginninderry.

Encouraging safe and healthy people

Active travel is an important consideration when designing new developments. It encourages the community to consider transport options such as walking and cycling to work or public transport. Fitness equipment has been included in Moncrieff and Taylor, and a figure eight walking route was incorporated into the design of Throsby.

The Southquay Estate in Greenway provided the next stage of the shared path network on the eastern shores of Tuggeranong Pond. This is a safe alternative link to Lake Tuggeranong for the residents of Monash and south eastern Tuggeranong. Construction on the remaining links and loop paths are planned for the 2018-19 financial year.

New developments delivered by the Suburban Land Agency are also required to consider crime prevention through environmental design.

Activities held through the Mingle Program in 2017-18 are listed below.


Moncrieff

> Explore and Snap Walking/Photography adventure

> Yoga in the Park

> Play in the Park

> Neighbourhood Safety Workshop

> opening of the Wagi Pedestrian Bridge with Aboriginal dancing lessons

Wright and Coombs

> morning walks

> Play in the Park

> Community sports day

> Community touch football trial game

Throsby

> Treasure Trek Walk

Promoting social inclusion

Social inclusion is important to ensure everyone can participate in society. Universal design, to support people of different abilities, is required in the design of open spaces and playgrounds.

At Ginninderry, the SPARK program offered training and employment to provide people with the skills they need to participate in society.

The Mingle Program provided the opportunity for people to participate in their community and connect with their neighbours. A number of events were held to encourage people to meet up, get to know each other and become actively involved in their community. Specific activities to promote social inclusion held through Mingle in 2017-18 activities are listed below.

Moncrieff

> new weekly playgroup in the park

> new resident meetings

> online recipe sharing promotion

Wright and Coombs

> Technology Education Workshop

> monthly Mingle activities sessions

> cottage history session

> Young at Heart Seniors Group

> Book Club, Garden Club and Youth Art consultation

> delivery of information on the Mingle Program to new public housing tenants

> community engagement process with the Charles Weston School

> Community Information Nights

Throsby

> Brekkie in the Park for future neighbours

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Providing housing choice

The Suburban Land Agency offered a range of block sizes for sale in all new developments, which created diversity among housing types. We also delivered sites for affordable, public and community housing. Affordable housing was delivered through the inclusion of sale provisions for multi-unit sites and the release of 32 single residential Land Rent sites in Taylor.

A site for 25 public housing dwellings was delivered as part of Greenway Section 28, with 179 dwellings zoned RZ4 released and sold in Greenway East (Southquay).

The table below provides a summary of housing delivered in 2017-18, compared to the targets set in accordance with the City Renewal Authority and Suburban Land Agency Act 2017.

TABLE 1: AFFORDABLE, PUBLIC AND COMMUNITY HOUSING TARGETS AND DELIVERY

Suburb Target:

Affordable Housing

Dwellings

Actual:

Affordable Housing

Dwellings Delivered in

2017‑18

Target:

Public Housing

Dwellings

Actual:

Public Housing


2017‑18

Target:

Community Housing

Dwellings

Actual:

Community Housing


2017‑18Taylor 99 99 – – – –North Wright 32 32 – – – –North Coombs 37 37 – – – –Strathnairn* 65 – – – 14 –Gungahlin Town Centre – – 64 64 – –Lawson 80 80 24 24 20 20Greenway Section 28 25 25 25 25 – –Greenway East** 15 15 30 – – –Total 353 288 143 113 34 20

* Planned releases in 2017-18 were delayed by a matter in the ACAT.

** 30 public housing dwellings delayed in Greenway East, site has been identified and negotiations are underway with Housing ACT. Release of these sites has been deferred to 2018-19.


Sustainable development peformanceThe following table provides information on the Suburban Land Agency’s energy, water, transport fuel and waste consumption, and the associated greenhouse gas emissions. Reported consumption indicates office accommodation and external usage within developments for the current financial year. Information for previous financial years is not included due to the Suburban Land Agency being established on 1 July 2017.

In 2017-18, we transitioned to an Electronic Document and Records Management System to reduce paper usage. We also encouraged staff to consider active travel where possible through the use of the ACT Government’s e-bike fleet and MyWay cards for bus travel. This data is not reported in the below table.

TABLE 2: SUSTAINABLE DEVELOPMENT PERFORMANCE: CURRENT AND PREVIOUS FINANCIAL YEAR

Indicator as at 30 June 2018 Unit Current Financial Year

Previous Financial Year

Percentage Change

Directorate / public sector body staff and area

Directorate/publicsectorbodystaff FTE 77.5 N/A N/AWorkplacefloorarea Area (m2) 1,096 N/A N/A

Stationary energy use

Electricity use Kilowatt hours 282,776.84 N/A N/ANatural gas use Megajoules 1,617.6 N/A N/ADiesel Kilolitres 0 N/A N/A

Transport fuel usage

Electric vehicles Number 0 N/A N/AHybrid vehicles Number 1 N/A N/AOther vehicles (that are not electric or hybrid) Number 6 N/A N/A

Total number of vehicles Number 7 N/A N/ATotal kilometres travelled Kilometres 78,097 N/A N/AFuel use – Petrol Kilolitres 1.24385 N/A N/AFuel use – Diesel Kilolitres 5.27495 N/A N/AFuel use – Liquid Petroleum Gas (LPG) Kilolitres 0 N/A N/AFuel use – Compressed Natural Gas (CNG) Cubic Metres (Cm3) 0 N/A N/A

Water usage

Water use Kilolitres 2,353.02 N/A N/A

Resource efficiency and waste

Reams of paper purchased Reams 640 N/A N/ARecycled content of paper purchased Percentage 97 N/A N/AWastetolandfill Litres 36,500 N/A N/ACo-mingled material recycled Litres 27,360 N/A N/APaper & Cardboard recycled (including secure paper) Litres 51,120 N/A N/A

Organic material recycled Litres 2,300 N/A N/A

Greenhouse gas emissions

Emissions from stationary energy use Tonnes CO2-e 105.36 N/A N/AEmissions from transport Tonnes CO2-e 20.68 N/A N/ATotal emissions Tonnes CO2-e 126.04 N/A N/A



SECTION C

SECTION C: FINANCIAL MANAGEMENT REPORTING

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C.1 FINANCIAL MANAGEMENT ANALYSIS

Suburban Land Agency

Financial year ended 30 June 2018

Management Discussion and Analysis

Suburban Land AgencyFor the Year Ended 30 June 2018

Objectives The Suburban Land Agency was established on 1 July 2017 under section 37 of the City Renewal Authority and Suburban Land Agency Act 2017 (the Act). The Suburban Land Agency was transferred assets, rights and liabilities from the former LDA, on 1 July 2017 by way of a Minister’s declaration in accordance with Division 9.6 of the Financial Management Act 1996.

The Suburban Land Agency is responsible for the Government’s suburban development program, including urban renewal in established town centres and suburbs outside ‘declared urban renewal precincts’. The Suburban Land Agency relies on EPSDD for core business such as HR, governance oversight, information and records management, freedom of information (FOI), legal support services, ICT systems, government services and fleet management.

As this is the first reporting year since the establishment of the Suburban Land Agency, 2016-17 financial information is not available in the financial statements for prior year comparison.

The objectives of the Suburban Land Agency, as set out in section 38 of the City Renewal Authority and Suburban Land Agency Act 2017, are to:

> encourage and promote:

i. inclusive communities through the delivery of people-focussed neighbourhoods

ii. suburban development and urban renewal, other than in the City Renewal Precinct, that supports the following

(a) affordable living

(b) a safe and healthy population

(c) social inclusion

(d) housing choice

(e) social and environmental sustainability

(f) growth and diversification of the Territory’s economy

> operate effectively, in a way that delivers value for money, in accordance with sound risk management practices

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

(a) the transfer of unleased Territory land for development from EPSDD on a commercial basis

(b) land holding cost payments

(c) stamp duty equivalents payments

(d) application of the National Tax Equivalents Regime (NTER)

(e) providing a commercial return to the ACT Government through the development and sale of the land

Risk managementThe Suburban Land Agency maintained a risk register that identifies risks under the following categories:

> Strategic – ACT and Commonwealth Government policy, priorities and strategies; external conditions, activities and environment; and meeting community and government expectations.

> Operational – Management of financial and non-financial targets, business and financial systems and processes, WHS, organisational and workforce planning, projects and land development, and effective governance.

> Fraud and Corruption – Management of information including compliant records management, procedures, procurement, resources and contracts.

The risk priorities of the Suburban Land Agency were:

> Safety – ensuring that WHS risk is identified, managed and actively monitored.

> Effectiveness – striving to deliver quality outcomes the first time.

> Efficiency – delivering value for money to the ACT community.

Strategies for 2017-18The Suburban Land Agency progressed the following strategies to achieve its aims, manage risks and deliver on ACT Government policies and priorities:

> Work alongside Government agencies, and in line with Government strategies, to build an inventory of environmentally cleared, planned, release ready and serviced land.

> Collaborate and co-operate with Government agencies and the community to work on key government development priorities. These might be in town centres, major transport corridors and urban infill areas, but are not in CRA defined areas.

> Engage and build strategic relationships with local communities, industry associations, special interest groups and the broader ACT community to make sure any relevant interests are identified and considered in land release activities.

> Facilitate and support the delivery of affordable housing, including community and public housing.

> Partner with others to deliver land release and development projects, such as the innovative West Belconnen Joint Venture (Ginninderry).

> Make active travel (walking and cycling) part of Canberrans’ daily lives in the design and development of new suburbs.

> Promote liveable communities by providing different types of blocks and public spaces to suit the needs of residents and surrounding communities.


> Deliver community building and development programs to encourage resident involvement and connection to their local community.

> Make sure the public is properly informed of what the Suburban Land Agency is doing, building community confidence and understanding in the Suburban Land Agency and its operations.

> Promote diversity, including gender equality, within the Suburban Land Agency workplace with a particular focus on supporting women in senior management, engineering and related streams, which may include partnering with local universities on scholarship and internship opportunities.

> Continue to develop strategies to reaffirm a positive culture in the Suburban Land Agency.

> Ensure all projects are subject to the appropriate governance by developing a contemporary framework with the guidance and oversight of EPSDD.

Returns to the Territory The total return to the ACT Government from Suburban Land Agency’s activities consists of:

> payment of unleased Territory land transferred from EPSDD

> 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

> payment of payroll tax

Table 1 below compares the total returns to the Territory in 2017-18 with the 2017-18 Budget SOI.

TABLE 1: COMPARISON OF RETURNS TO THE TERRITORY

Actual 2017‑18

$’m

Original Budget 2017‑18

$’m

Dividends declared 161.3 242.6

National tax equivalent payments 69.1 104.0

Payments for land acquisitions 16.0 15.6

Payroll tax 0.6 0.7

Stamp duty equivalents / Land holding cost equivalents 1.7 1.1

Ordinary Return to the Territory 248.7 364.0

Capital Distribution 75.0 39.5

Total Returns to the Territory 323.7 403.5

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Financial performance The following financial information is based on the audited 2017-18 Financial Statements.

Income

Components of income

As shown in Figure 1 below, 97.5% of the Suburban Land Agency’s total income of $397.9 million for the year ended 30 June 2018 was derived from Land Sales Revenue, with the remaining 2.5% from Resources Received Free of Charge, Interest and User Charges.

FIGURE 1: COMPONENTS OF INCOME

LAND REVENUE

OTHER INCOME 2.5%

Comparison to 2017-18 budget

Actual income of $397.9 million, including Share of Operating Profit from Joint Ventures accounted for using the Equity Method was $198.6 million (33.3%) lower than the budgeted amount of $596.5 million (Total Income $592.2 million, Share of Operating Profit from Joint Ventures accounted for using the Equity Method $4.2 million) mainly due to lower Land Sales Revenue.


Components of land sales revenue

As shown in Figure 2, 66.2% of the Suburban Land Agency’s Land Sales Revenue ($388.1 million) was derived from residential land sales ($256.9 million) for the year ended 30 June 2018, 28.7% from ARI land sales ($111.4 million), 3.0% from community land sales ($11.8 million), 2.0% from other land sales ($7.9 million), including infrastructure delivered by third parties, industrial land sales and increased land revenue from prior year Goods and Services Tax (GST) adjustment.

FIGURE 2: COMPONENTS OF LAND REVENUE

ARI LAND SALES

COMMUNITY LAND SALES 3.0%

OTHER 2.0%

RESIDENTIAL LAND SALES


Actual Land Sales Revenue of $388.1 million was $187.7 million (32.6%) lower than the budgeted amount of $575.8 million. The variance in Land Sales was mainly due to delayed settlements, including the Red Hill Housing Precinct ARI site, Throsby and Denman Prospect 2.

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Components of gross profit

As shown in Figure 3, 56.0% of the Suburban Land Agency’s gross profit was derived from residential land sales for the year ended 30 June 2018, 33.1% from ARI land sales. 10.9% of gross profit was derived from community, industrial and other land sales.

FIGURE 3: COMPONENTS OF GROSS PROFIT

ARI LAND SALES

COMMUNITY, INDUSTRIAL AND OTHER LAND SALESRESIDENTIAL LAND SALES


The actual gross profit margin of 84.1% was higher than the budgeted gross profit margin of 72.8% due to reduced Cost of Land Sold.

The profit margins of the Suburban Land Agency are used for internal purposes to provide comparatives across projects and time periods. These margins are not comparable with private industry, noting that the Government, through the Suburban Land Agency, enters into the land development process at an earlier stage than a private developer. Additionally, the Government invests in infrastructure within and around its developments with the cost incurred by other Government agencies and therefore not reflected in the Suburban Land Agency’s profit margins.


Total expenses

Components of expenses

Total expenses of $167.4 million for the year ended 30 June 2018 (as shown in Figure 4) mainly related to WriteDown of Inventory (45.7%), Cost of Land Sold (36.9%) and Supplies and Services (9.6%). Write-Down of Inventory of $76.5 million is mainly related to the write-down of ARI sites transferred from other ACT Government agencies. The remaining balance of total expenses was for Employee Expenses (5.2%) and Other Expenses (2.5%).

FIGURE 4: COMPONENTS OF EXPENSES

COST OF LAND SOLD

SUPPLIES AND SERVICES

OTHER EXPENSES 2.5%

EMPLOYEE EXPENSES

WRITE-DOWN OF INVENTORY


Actual expenses of $167.4 million were lower than the budgeted amount of $249.9 million by $82.5 million (33.0%) mainly due to:

> $94.7 million in Cost of Land Sold consistent with the lower than budgeted land sales revenue

> $22.4 million in Supplies and Services for project related expenses as a result of settlement delays

These were partially offset by a higher than budgeted Write-Down of Inventory of $36.3 million mainly related to the write-down of ARI sites transferred from other ACT Government agencies being delayed from 2016-17.

Actual National Tax Equivalents expenses of $69.1 million were lower than the budget amount of $104.0 million by $34.9 million (33.5%) mainly due to a lower than budgeted operating surplus.

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DividendsThe City Renewal Authority and Suburban Land Agency (Suburban Land Agency Payment of Funds to Territory) Direction 2018 (NI2018-224) directs the Suburban Land Agency to pay a dividend of 100% of its net profits after tax. Payments of the dividend are made in two instalments each year: an interim payment of 80% of estimated net profits is payable by 30 June of each financial year, with a final balance of actual net profits by 31 October of the following financial year.

The dividend declared for the 2017-18 year was $161.3 million of which the interim dividend of $97.1 million was paid in June 2018. The dividend declared was $81.3 million (33.5%) lower compared to the budget of $242.6 million as a result of a lower operating surplus.


Financial positionKey indicators of the Suburban Land Agency’s financial position include 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 2017-18, the Suburban Land Agency maintained a strong net asset position due to its cash, receivables and inventory holdings in comparison with its liabilities.

Total assets at 30 June 2018 of $473.9 million (as shown in Figure 5) comprise Current and Non-Current Inventories of $254.6 million (53.7%), Cash and Cash Equivalents of $90.0 million (19.0%), Current and Non-Current Receivables of $82.7 million (17.4%) and Property, Plant and Equipment of $46.5 million (9.9%).

FIGURE 5: COMPONENTS OF TOTAL ASSETS

CASH AND CASH EQUIVALENTS

RECEIVABLES

PROPERTY, PLANT AND EQUIPMENTINVENTORIES

Comparison to budget at 30 June 2018

The Suburban Land Agency’s total asset position at 30 June 2018 of $473.9 million was lower than the budgeted amount of $642.2 million by $168.3 million (26.2%) mainly due to:

> $109.9 million in Cash and Cash Equivalents as a result of lower cash receipts from land sales

> $59.8 million in Inventories predominantly related to lower development costs incurred in Taylor, North Wright, North Coombs and Kingston Foreshore

> $47.2 million in Non-Current Investments – Joint Ventures due to the consolidation of the West Belconnen Joint Operation financial statements into the Agency’s financial statements rather than being treated as investment

These were partially offset by higher receivables of $52.1 million due to higher than budgeted Infrastructure Assets Receivable, Deferred Receivable – Contribution to West Belconnen Joint Operation and the Receivables from EPSDD for land sales to the Public Housing Renewal Taskforce (PHRT).

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Total liabilitiesFigure 6 illustrates the Suburban Land Agency’s total liabilities of $405.7 million comprising Payables of $141.3 million (34.8%), Other Provisions of $98.7 million (24.3%), Deferred Tax Liability of $52.7 million (13.0%), Other Liabilities of $81.1 million (20.0%), National Tax Equivalents Payable of $28.2 million (7.0%) and Employee Benefits of $3.7 million (0.9%).

Payables largely comprise the payable to the Territory Banking Account for contribution of equity for ARI sites and payables to EPSDD for land sold, land developed or yet to be developed. Other Provisions reflect the expected costs required to finish developed parcels of land and the value of infrastructure assets that are to be transferred to relevant ACT Government agencies when construction is completed. Deferred Tax Liability relates to the taxable temporary difference between the carrying amount of an asset or liability in the Balance Sheet and its tax base. Other Liabilities reflect Revenue Received in Advance for exchanged land blocks and the balance of the dividend to be paid to the ACT Government. The Suburban Land Agency’s National Tax Equivalents Payable reflects the balance of National Tax Equivalents payable to the ACT Government in 2017-18.

FIGURE 6: COMPONENTS OF TOTAL LIABILITIES

DEFERRED TAX LIABILITY

OTHER LIABILITIES

EMPLOYEE BENEFITS 0.9%

NATIONAL TAX EQUIVALENTS PAYABLE

PAYABLES

OTHER PROVISIONS

Comparison to budget at 30 June 2018

The Suburban Land Agency’s total liability position at 30 June 2018 of $405.7 million was lower than the budget amount of $542.8 million by $137.1 million (25.3%) mainly due to:

> $206.4 million in Other Liabilities predominantly related to the payment of the 2016-17 final dividend and lower dividend payable in 2017-18 as the result of a lower operating surplus

> $53.9 million in Other Provisions predominantly related to a reduction in the expected cost for electrical infrastructure relocation work in Lawson

These were partially offset by higher:

> payables of $99.9 million mainly related to an increase in Capital Distributions Payable and reclassification of the provision for land payment to EPSDD which was included in Other Liabilities in the budget

> Deferred Tax Liability of $25.0 million due to a higher amount of National Tax Equivalents payable in future periods relating to taxable temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base


LiquidityLiquidity refers to the ability of the Suburban Land Agency to satisfy its short-term debts as they fall due. This ability is demonstrated by the Suburban Land Agency’s ‘current ratio’ (set out in Table 2 below), which compares the ability to fund short-term liabilities from short-term assets. Although the current liquidity ratio is 0.9, $64.2 million of the total current liabilities are dividend payable to the Government. The City Renewal Authority and Suburban Land Agency (Suburban Land Agency Payment of Funds to Territory) Direction 2018 (NI2018-224) allows the Treasurer to approve alternative timing for dividend payments.

TABLE 2: CURRENT ASSETS TO CURRENT LIABILITIES

Actual as at 30 June 2018

$’000

Budget 2017‑18

$’000Total Current Assets 267,792 478,274 Total Current Liabilities 290,944 445,979 Current Ratio 0.9 1.1

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C.2 FINANCIAL STATEMENTS

Financial Statements

For the year ended 30 June 2018


INDEPENDENT AUDIT REPORT


To the Members of the ACT Legislative Assembly

Audit opinion

I am providing an unqualified audit opinion on the financial statements of the Suburban Land Agency for the year ended 30 June 2018. 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 Suburban Land 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 Suburban Land 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 the financial statements so that they are free from material misstatements, whether due to error or fraud; and

assessing the ability of the Suburban Land 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 Suburban Land 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 Suburban Land Agency;

adequacy of controls implemented by the Suburban Land Agency; or

integrity of the 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.

Ajay Sharma Acting Auditor-General 19 September 2018


Suburban Land AgencyFinancial Statements


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Suburban Land Agency Financial Statements

For the Year Ended 30 June 2018 Hidden words hidden wordds

Statement of Responsibility

In my opinion, the financial statements are in agreement with the Suburban Land Agency’s accounts and records and fairly reflect the financial operations of the Suburban Land Agency for the year ended 30 June 2018 and the financial position of the Suburban Land Agency on that date.

John Fitzgerald

Chair

Suburban Land Agency Board

18 September 2018




Statement by the Chief Executive Officer


John Dietz



18 September 2018

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John Dietz



18 September 2018



Statement by the Chief Financial Officer

In my opinion, the financial statements have been prepared in accordance with the Australian Accounting Standards, and are in agreement with the Suburban Land Agency’s accounts and records and fairly reflect the financial operations of the Suburban Land Agency for the year ended 30 June 2018 and the financial position of the Suburban Land Agency on that date.

Joseph Lee

Chief Financial Officer


18 September 2018


Suburban Land Agency Statement of Comprehensive Income

For the Year Ended 30 June 2018 Hidden word

5

Original Actual Budget Note 2018 2018 No. $’000 $’000 Income Revenue Land Revenue 4 388,072 575,832 User Charges 5 809 392 Interest 6 6,120 6,413 Resources Received Free of Charge 7 2,668 9,120 Other Revenue 188 484 Total Revenue 397,857 592,241 Total Income 397,857 592,241 Expenses Employee Expenses 8 8,756 13,574 Supplies and Services 9 16,137 38,560 Cost of Land Sold 10 61,786 156,513 Write-Down of Inventory 11 76,481 40,179 Other Expenses 12 4,264 1,089 Total Expenses 167,425 249,915 Share of Operating Profit from Joint Ventures accounted for using the Equity Method (2) 4,222 Operating Surplus before National Tax Equivalents 230,430 346,548 National Tax Equivalents 14 69,130 103,964 Operating Surplus 161,300 242,584 Items that will not be reclassified subsequently to profit or loss Other Comprehensive Income Increase in Asset Revaluation Surplus attributable to a Joint Operation 430 - Total Other Comprehensive Surplus 430 - Total Comprehensive Income 161,730 242,584 The above Statement of Comprehensive Income should be read in conjunction with the accompanying notes.

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Suburban Land Agency Statement of Comprehensive Income

For the Year Ended 30 June 2018 Hidden word

5

Original Actual Budget Note 2018 2018 No. $’000 $’000 Income Revenue Land Revenue 4 388,072 575,832 User Charges 5 809 392 Interest 6 6,120 6,413 Resources Received Free of Charge 7 2,668 9,120 Other Revenue 188 484 Total Revenue 397,857 592,241 Total Income 397,857 592,241 Expenses Employee Expenses 8 8,756 13,574 Supplies and Services 9 16,137 38,560 Cost of Land Sold 10 61,786 156,513 Write-Down of Inventory 11 76,481 40,179 Other Expenses 12 4,264 1,089 Total Expenses 167,425 249,915 Share of Operating Profit from Joint Ventures accounted for using the Equity Method (2) 4,222 Operating Surplus before National Tax Equivalents 230,430 346,548 National Tax Equivalents 14 69,130 103,964 Operating Surplus 161,300 242,584 Items that will not be reclassified subsequently to profit or loss Other Comprehensive Income Increase in Asset Revaluation Surplus attributable to a Joint Operation 430 - Total Other Comprehensive Surplus 430 - Total Comprehensive Income 161,730 242,584 The above Statement of Comprehensive Income should be read in conjunction with the accompanying notes.

Suburban Land Agency Balance Sheet

As at 30 June 2018 Hidden words

6

Original Actual Budget Note 2018 2018 No. $’000 $’000 Current Assets Cash and Cash Equivalents 15 90,000 199,859 Receivables 16 40,821 10,879 Inventories 17 136,927 267,536 Investments - Joint Ventures 44 - Total Current Assets 267,792 478,274 Non-Current Assets Receivables 16 41,865 19,685 Inventories 17 117,629 46,844 Property, Plant and Equipment 18 46,504 49,625 Intangible Assets 19 95 602 Investments - Joint Ventures - 47,193 Total Non-Current Assets 206,093 163,949 Total Assets 473,885 642,223 Current Liabilities Payables 20 130,489 41,350 Employee Benefits 21 3,565 2,523 Other Provisions 22 48,777 83,561 National Tax Equivalents Payable 23 28,194 31,027 Other Liabilities 24 79,919 287,518 Total Current Liabilities 290,944 445,979 Non-Current Liabilities Payables 20 10,806 - Employee Benefits 21 148 115 Other Provisions 22 49,923 69,004 Other Liabilities 24 1,154 - Deferred Tax Liability 25 52,705 27,717 Total Non-Current Liabilities 114,736 96,836 Total Liabilities 405,680 542,815 Net Assets 68,205 99,408 Equity Contributed Equity 67,775 99,408 Asset Revaluation Surplus 430 - Total Equity 68,205 99,408 The above Balance Sheet should be read in conjunction with the accompanying notes.


Suburban Land Agency Statement of Changes in Equity

For the Year Ended 30 June 2018 Hidden words

7

Asset Contributed Accumulated Revaluation

nTotal

Equity Funds Surplus Equity Original Actual Actual Actual Actual Budget

2018 2018 2018 2018 2018 $’000 $’000 $’000 $’000 $’000

Balance at 1 July 2017 - - - - - Comprehensive Income Operating Surplus - 161,300 - 161,300 242,584 Asset Revaluation Surplus - - 430 430 -

Total Comprehensive Income - 161,300 430 161,730 242,584

Transactions Involving Owners Affecting Accumulated Funds Net Assets Transferred In as Part of an Administrative Restructure (a) 102,325 - - 102,325 138,957 Adjustment for payment related to former Land Development Agency (335) - - (335) -Capital (Distributions) (b) - (74,969) - (74,969) (39,549)Assets Contributed by Owner (b) - 74,969 - 74,969 - Re-recognition of Deferred Tax Liability (34,215) - - (34,215) - Dividends Approved - (161,300) - (161,300) (242,584)Total Transactions Involving Owners Affecting Accumulated Funds 67,775 (161,300) - (93,525) (143,176)

Balance at 30 June 2018 67,775 - 430 68,205 99,408

The above Statement of Changes in Equity should be read in conjunction with the accompanying notes.

(a) When the Land Development Agency ceased operating as a separate entity on 30 June 2017, the majorityof assets and liabilities were transferred to the Suburban Land Agency as per the Financial Management(Land Development Agency Transfer to Suburban Land Agency) Declaration 2017 Notifiable InstrumentNI2017-343. This transfer has been recognised as Net Assets Transferred In as Part of an AdministrativeRestructure. Refer to Note 32 Restructure of Administrative Arrangements for further details.

(b) Assets Contributed by Owner relates to ARI sites transferred from Housing ACT and ACT Property Group.The ARI is a program led by the Commonwealth Government that provides incentive payments to statesand territories that sell assets and reinvest the sale proceeds to fund infrastructure. The ACT Governmentsigned the National Partnership Agreement on Asset Recycling with the Commonwealth Government inFebruary 2015. Under this program, 15 land based assets are to be sold before the end of the 2018-19period. The Suburban Land Agency is responsible for the sale of these assets and returns the saleproceeds to the ACT Government as Capital Distribution.

63

Suburban Land Agency Statement of Changes in Equity


7

Asset Contributed Accumulated Revaluation

nTotal

Equity Funds Surplus Equity Original Actual Actual Actual Actual Budget

2018 2018 2018 2018 2018 $’000 $’000 $’000 $’000 $’000

Balance at 1 July 2017 - - - - - Comprehensive Income Operating Surplus - 161,300 - 161,300 242,584 Asset Revaluation Surplus - - 430 430 -

Total Comprehensive Income - 161,300 430 161,730 242,584

Transactions Involving Owners Affecting Accumulated Funds Net Assets Transferred In as Part of an Administrative Restructure (a) 102,325 - - 102,325 138,957 Adjustment for payment related to former Land Development Agency (335) - - (335) -Capital (Distributions) (b) - (74,969) - (74,969) (39,549)Assets Contributed by Owner (b) - 74,969 - 74,969 - Re-recognition of Deferred Tax Liability (34,215) - - (34,215) - Dividends Approved - (161,300) - (161,300) (242,584)Total Transactions Involving Owners Affecting Accumulated Funds 67,775 (161,300) - (93,525) (143,176)

Balance at 30 June 2018 67,775 - 430 68,205 99,408

The above Statement of Changes in Equity should be read in conjunction with the accompanying notes.

(a) When the Land Development Agency ceased operating as a separate entity on 30 June 2017, the majorityof assets and liabilities were transferred to the Suburban Land Agency as per the Financial Management(Land Development Agency Transfer to Suburban Land Agency) Declaration 2017 Notifiable InstrumentNI2017-343. This transfer has been recognised as Net Assets Transferred In as Part of an AdministrativeRestructure. Refer to Note 32 Restructure of Administrative Arrangements for further details.

(b) Assets Contributed by Owner relates to ARI sites transferred from Housing ACT and ACT Property Group.The ARI is a program led by the Commonwealth Government that provides incentive payments to statesand territories that sell assets and reinvest the sale proceeds to fund infrastructure. The ACT Governmentsigned the National Partnership Agreement on Asset Recycling with the Commonwealth Government inFebruary 2015. Under this program, 15 land based assets are to be sold before the end of the 2018-19period. The Suburban Land Agency is responsible for the sale of these assets and returns the saleproceeds to the ACT Government as Capital Distribution.

Suburban Land Agency Cash Flow Statement


8

Original Actual Budget Note 2018 2018 No. $’000 $’000 Cash Flows from Operating Activities Receipts Land Sales 374,247 585,949 User Charges 718 431 Interest Received 5,651 4,315 Goods and Services Tax (GST) Collected from Customers 35,273 23,313 GST Refund from the Australian Taxation Office (ATO) 35,406 15,626 Other 4,676 484 Total Receipts from Operating Activities 455,971 630,118 Payments Employee 9,320 13,574 Supplies and Services 14,092 30,070 Development Costs 91,319 171,884 Land Payments 17,482 15,566 GST Paid to Suppliers and Remitted to the ATO 72,629 38,978 National Tax Equivalents Payments 70,548 103,647 Other Payments 2,000 1,089 Total Payments from Operating Activities 31(b) 277,390 374,808 Net Cash Inflows from Operating Activities 178,581 255,310 Cash Flows from Investing Activities Receipts Proceeds from Sale/Maturity of Investments 350 12,868 Total Receipts from Investing Activities 350 12,868 Payments Purchase of Property, Plant and Equipment 7,025 20,000 Purchase of Investments - 34,212 Total Payment from Investing Activities 7,025 54,212 Net Cash (Outflows) from Investing Activities (6,675) (41,344)


Suburban Land Agency Cash Flow Statement - Continued For the Year Ended 30 June 2018

Hidden words

9

Original Actual Budget Note 2018 2018 No. $’000 $’000 Cash Flows from Financing Activities Receipts Receipts of Transferred Cash Balances 182,496 203,210 Total Receipts from Financing Activities 182,496 203,210 Payments Contribution to Joint Operation 3,522 - Distributions to Government 66,681 66,252 Payment of Dividend 194,199 151,065 Total Payment from Financing Activities 264,402 217,317 Net Cash (Outflows) from Financing Activities (81,906) (14,107) Net Increase in Cash and Cash Equivalents 90,000 199,859 Cash and Cash Equivalents at the Beginning of the

Reporting Period - - Cash and Cash Equivalents at the End of the Reporting Period 31(a) 90,000 199,859

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

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Suburban Land Agency Cash Flow Statement - Continued For the Year Ended 30 June 2018

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Original Actual Budget Note 2018 2018 No. $’000 $’000 Cash Flows from Financing Activities Receipts Receipts of Transferred Cash Balances 182,496 203,210 Total Receipts from Financing Activities 182,496 203,210 Payments Contribution to Joint Operation 3,522 - Distributions to Government 66,681 66,252 Payment of Dividend 194,199 151,065 Total Payment from Financing Activities 264,402 217,317 Net Cash (Outflows) from Financing Activities (81,906) (14,107) Net Increase in Cash and Cash Equivalents 90,000 199,859 Cash and Cash Equivalents at the Beginning of the

Reporting Period - - Cash and Cash Equivalents at the End of the Reporting Period 31(a) 90,000 199,859

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

Suburban Land Agency Financial Statements For the Year Ended 30 June 2018

NOTE INDEX

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

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

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

Income Notes Note 4 Land Revenue Note 5 User Charges Note 6 Interest Note 7 Resources Received Free of Charge

Expense Notes Note 8 Employee Expenses Note 9 Supplies and Services Note 10 Cost of Land Sold Note 11 Write-Down of Inventory Note 12 Other Expenses Note 13 Auditor's Remuneration Note 14 National Tax Equivalents

Asset Notes Note 15 Cash and Cash Equivalents Note 16 Receivables Note 17 Inventories Note 18 Property, Plant and Equipment Note 19 Intangible Assets

Liability Notes Note 20 Payables Note 21 Employee Benefits Note 22 Other Provisions Note 23 National Tax Equivalents Payable Note 24 Other Liabilities Note 25 Deferred Tax Liability

Other Notes Note 26 Financial Instruments Note 27 Commitments Note 28 Contingent Liabilities and Contingent Assets Note 29 Interest in a Joint Operation Note 30 Restructure of Administrative Arrangements Note 31 Cash Flow Reconciliation Note 32 Third Party Monies Note 33 Related Party Disclosures Note 34 Key Management Personnel Remuneration Note 35 Budgetary Reporting

RESTRUCTURE OFADMINISTRATIVEARRANGEMENTS

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


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NOTE 1 OBJECTIVES OF THE SUBURBAN LAND AGENCY (a) Operations and Principal Activities The Suburban Land Agency was established on 1 July 2017 under section 37 of the City Renewal Authority and Suburban Land Agency Act 2017 (the Act). The Suburban Land Agency was transferred assets, rights and liabilities from the former LDA, on 1 July 2017 by way of a Minister’s declaration in accordance with Division 9.6 of the Financial Management Act 1996. As this is the first reporting year since the establishment of the Suburban Land Agency, 2016-17 financial information is not available in the financial statements for prior year comparison. The Suburban Land Agency is responsible for the Government’s suburban development program, including urban renewal in established town centres and suburbs outside ‘declared urban renewal precincts’. The Suburban Land Agency relies on EPSDD for core business functions such as infrastructure planning, human resources, legal support services, management level governance, freedom of information services, information and record management and due diligence activities. The total return to the ACT Government from Suburban Land Agency’s activities consists of: payment of unleased Territory land transferred from EPSDD 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 payment of payroll tax The objectives of the Suburban Land Agency, as set out in section 38 of the Act, are to: encourage and promote:

i. inclusive communities through the delivery of people-focussed neighbourhoods ii. suburban development and urban renewal, other than in the City Renewal Precinct, that supports

the following: (A) affordable living (B) a safe and healthy population (C) social inclusion (D) housing choice (E) social and environmental sustainability (F) growth and diversification of the Territory’s economy

operate effectively, in a way that delivers value for money, in accordance with sound risk management practices

(b) Public Trading Enterprise The Suburban Land Agency is a Public Trading Enterprise. Consistent with the ACT Government’s policy statement on competitive neutrality (Competitive Neutrality in the ACT, October 2010), the Suburban Land Agency applies similar costing and pricing principles, taxation, debt guarantee requirements and regulations as a fully corporatised business, including: the transfer of unleased Territory land for development from EPSDD on a commercial basis land holding cost payments stamp duty equivalents payments application of the National Tax Equivalents Regime providing a commercial return to the ACT Government through the development and sale of the land

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NOTE 1 OBJECTIVES OF THE SUBURBAN LAND AGENCY (a) Operations and Principal Activities The Suburban Land Agency was established on 1 July 2017 under section 37 of the City Renewal Authority and Suburban Land Agency Act 2017 (the Act). The Suburban Land Agency was transferred assets, rights and liabilities from the former LDA, on 1 July 2017 by way of a Minister’s declaration in accordance with Division 9.6 of the Financial Management Act 1996. As this is the first reporting year since the establishment of the Suburban Land Agency, 2016-17 financial information is not available in the financial statements for prior year comparison. The Suburban Land Agency is responsible for the Government’s suburban development program, including urban renewal in established town centres and suburbs outside ‘declared urban renewal precincts’. The Suburban Land Agency relies on EPSDD for core business functions such as infrastructure planning, human resources, legal support services, management level governance, freedom of information services, information and record management and due diligence activities. The total return to the ACT Government from Suburban Land Agency’s activities consists of: payment of unleased Territory land transferred from EPSDD 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 payment of payroll tax The objectives of the Suburban Land Agency, as set out in section 38 of the Act, are to: encourage and promote:

i. inclusive communities through the delivery of people-focussed neighbourhoods ii. suburban development and urban renewal, other than in the City Renewal Precinct, that supports

the following: (A) affordable living (B) a safe and healthy population (C) social inclusion (D) housing choice (E) social and environmental sustainability (F) growth and diversification of the Territory’s economy

operate effectively, in a way that delivers value for money, in accordance with sound risk management practices

(b) Public Trading Enterprise The Suburban Land Agency is a Public Trading Enterprise. Consistent with the ACT Government’s policy statement on competitive neutrality (Competitive Neutrality in the ACT, October 2010), the Suburban Land Agency applies similar costing and pricing principles, taxation, debt guarantee requirements and regulations as a fully corporatised business, including: the transfer of unleased Territory land for development from EPSDD on a commercial basis land holding cost payments stamp duty equivalents payments application of the National Tax Equivalents Regime providing a commercial return to the ACT Government through the development and sale of the land



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 ESTIMATES

Refer to Appendix D - Change in Accounting Estimates.




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NOTE 4 LAND REVENUE 2018 $’000 Residential Land Sales (a) 256,895 ARI Land Sales (b) 111,440 Industrial Land Sales (c) 3,109 Community Land Sales (d) 11,835 Infrastructure Delivered by Third Parties (e) 4,425 Other (f) 368 Total Land Sales 388,072 (a) Residential Land sales in 2017-18 were primarily in the suburbs of Taylor and Throsby, with sites also selling

in Wright, Gungahlin Town Centre, Greenway and Moncrieff.

(b) The ARI is a program led by the Commonwealth Government that provides incentive payments to states and territories that sell assets and reinvest the sale proceeds to fund infrastructure. The ACT Government signed the National Partnership Agreement on Asset Recycling with the Commonwealth Government in February 2015. Under this program, 15 land based assets are to be sold before the end of the 2018-19 financial year. The Suburban Land Agency is responsible for the sale of these assets and returns the sale proceeds to the ACT Government.

The following ARI sites were sold in 2017-18: Dickson Block 19 Section 33 (part of Motor Vehicle Registry) Dickson Block 8 Section 77 (part of Motor Vehicle Registry) Dickson Blocks 19 and 20 Section 32 (Dame Pattie Menzies House) Dickson Block 1 Section 77 Dickson (Dickson Flats) Dickson Block 6 Section 77 (Karuah Garden Flats ) Reid Block 1 Section 7 (Bega Flats)

(c) Industrial Land Sales in 2017-18 relate to a site in Hume.

(d) Community Land Sales relate to sales in Monash, Red Hill and West Macgregor.

(e) Infrastructure Delivered by Third Parties revenue is a non-cash component of land sale proceeds and is 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 infrastructure revenue received in 2017-18 relates to the sale of three ARI sites and community land sales in Red Hill and West Macgregor.

(f) Other revenue relates to a rural land direct sale in Coree and an adjustment related to GST of a block sold by the former LDA.

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NOTE 4 LAND REVENUE 2018 $’000 Residential Land Sales (a) 256,895 ARI Land Sales (b) 111,440 Industrial Land Sales (c) 3,109 Community Land Sales (d) 11,835 Infrastructure Delivered by Third Parties (e) 4,425 Other (f) 368 Total Land Sales 388,072 (a) Residential Land sales in 2017-18 were primarily in the suburbs of Taylor and Throsby, with sites also selling

in Wright, Gungahlin Town Centre, Greenway and Moncrieff.

(b) The ARI is a program led by the Commonwealth Government that provides incentive payments to states and territories that sell assets and reinvest the sale proceeds to fund infrastructure. The ACT Government signed the National Partnership Agreement on Asset Recycling with the Commonwealth Government in February 2015. Under this program, 15 land based assets are to be sold before the end of the 2018-19 financial year. The Suburban Land Agency is responsible for the sale of these assets and returns the sale proceeds to the ACT Government.

The following ARI sites were sold in 2017-18: Dickson Block 19 Section 33 (part of Motor Vehicle Registry) Dickson Block 8 Section 77 (part of Motor Vehicle Registry) Dickson Blocks 19 and 20 Section 32 (Dame Pattie Menzies House) Dickson Block 1 Section 77 Dickson (Dickson Flats) Dickson Block 6 Section 77 (Karuah Garden Flats ) Reid Block 1 Section 7 (Bega Flats)

(c) Industrial Land Sales in 2017-18 relate to a site in Hume.

(d) Community Land Sales relate to sales in Monash, Red Hill and West Macgregor.

(e) Infrastructure Delivered by Third Parties revenue is a non-cash component of land sale proceeds and is 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 infrastructure revenue received in 2017-18 relates to the sale of three ARI sites and community land sales in Red Hill and West Macgregor.

(f) Other revenue relates to a rural land direct sale in Coree and an adjustment related to GST of a block sold by the former LDA.



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NOTE 5 USER CHARGES User charges revenue is derived by providing goods and services to other ACT Government agencies and to the public. 2018 $’000 User Charges - ACT Government Service Charges (a) 302 Total User Charges - ACT Government 302 User Charges - Non-ACT Government Rental Income (b) 507 Total User Charges - Non-ACT Government 507 Total User Charges 809 (a) The Suburban Land Agency provides financial management and land maintenance services to CRA via a

service agreement.

(b) Rental income is primarily from sites in Stromlo, Tuggeranong and West Belconnen.




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NOTE 6 INTEREST 2018 $’000 Interest from Banks (a) 4,256 Other Interest Revenue - Late Settlements and Deferred Payments 1,395 Interest from West Belconnen Joint Operation 1,172 Less: 60 per cent Share of Joint Operation (703) Net Interest Revenue from Joint Operation (b) 469 Total Interest Revenue 6,120

(a) Interest from Banks predominantly relates to a bank account with Westpac Bank as part of the ACT WhoG banking arrangement.

(b) Interest is received from contributions made to the West Belconnen Joint Operation. The Suburban Land Agency accounts for the income, expenses, assets and liabilities relating to its share in the joint operation. As the Suburban Land Agency holds 60 per cent share in the West Belconnen Joint Operation on behalf of the ACT, it recognises 40 per cent of interest revenue from other parties of the joint operation.

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NOTE 6 INTEREST 2018 $’000 Interest from Banks (a) 4,256 Other Interest Revenue - Late Settlements and Deferred Payments 1,395 Interest from West Belconnen Joint Operation 1,172 Less: 60 per cent Share of Joint Operation (703) Net Interest Revenue from Joint Operation (b) 469 Total Interest Revenue 6,120

(a) Interest from Banks predominantly relates to a bank account with Westpac Bank as part of the ACT WhoG banking arrangement.

(b) Interest is received from contributions made to the West Belconnen Joint Operation. The Suburban Land Agency accounts for the income, expenses, assets and liabilities relating to its share in the joint operation. As the Suburban Land Agency holds 60 per cent share in the West Belconnen Joint Operation on behalf of the ACT, it recognises 40 per cent of interest revenue from other parties of the joint operation.



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NOTE 7 RESOURCES RECEIVED FREE OF CHARGE

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

2018 $’000 Revenue from ACT Government Entities Services Received from ACT Government Entities (a) 1,608 Land Received from ACT Government Entities (b) 1,060 Total Resources Received Free of Charge 2,668

(a) Services Received from ACT Government Entities mainly relate to services received from EPSDD for infrastructure planning, human resources, legal support services, management level governance, freedom of information services, information and record management and due diligence activities (refer to Note 9 Supplies and Services for further details). Services received from ACT Government Entities also includes legal services from the ACT Government Solicitor.

(b) Land received from ACT Government Entities relate to transfers of land from ACT Government entities to the Suburban Land Agency at no cost. Land transfers in 2017-18 included Griffith Block 2 Section 43 and Dunlop Block 2 Section 82.




17

2018 $’000

10,028 (2,433)

7,595

726 614

89 (346) 1,083

660 (567)

(58) 53

(10)

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NOTE 8 EMPLOYEE EXPENSES

Wages and Salaries Salary Costs Capitalised in Inventories (a) Subtotal Wages and Salaries

Superannuation Contributions to the Territory Banking Account (b) Superannuation to External Providers (b) Productivity Benefit (b) Superannuation Capitalised in Inventories (a) Subtotal Superannuation Expenses

Payroll Tax Long Service Leave - Movement in Provision (c) Annual Leave - Movement in Provision (c) Workers' Compensation Insurance Premium Fringe Benefit Tax

Subtotal Other Employee Expenses Total Employee Expenses 8,756

(a) Salary and Superannuation Costs Capitalised in Inventories are capital project related salaries andsuperannuation expenses which have been transferred to Inventories. Refer to Appendix B: SignificantAccounting Policies for further details.

(b) Employees of the Suburban Land Agency have different superannuation arrangements due to the type ofsuperannuation schemes available at the time of commencing employment. Refer to Appendix B: SignificantAccounting Policies for further details.

(c) Negative movements in the Provisions for Long Service Leave and Annual Leave are due to the reversal ofprovisions for staff who were transferred to other agencies when the Suburban Land Agency was established on1 July 2017.

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2018 $’000

10,028 (2,433)

7,595

726 614

89 (346) 1,083

660 (567)

(58) 53

(10)

78


Wages and Salaries Salary Costs Capitalised in Inventories (a) Subtotal Wages and Salaries

Superannuation Contributions to the Territory Banking Account (b) Superannuation to External Providers (b) Productivity Benefit (b) Superannuation Capitalised in Inventories (a) Subtotal Superannuation Expenses

Payroll Tax Long Service Leave - Movement in Provision (c) Annual Leave - Movement in Provision (c) Workers' Compensation Insurance Premium Fringe Benefit Tax

Subtotal Other Employee Expenses Total Employee Expenses 8,756

(a) Salary and Superannuation Costs Capitalised in Inventories are capital project related salaries andsuperannuation expenses which have been transferred to Inventories. Refer to Appendix B: SignificantAccounting Policies for further details.

(b) Employees of the Suburban Land Agency have different superannuation arrangements due to the type ofsuperannuation schemes available at the time of commencing employment. Refer to Appendix B: SignificantAccounting Policies for further details.

(c) Negative movements in the Provisions for Long Service Leave and Annual Leave are due to the reversal ofprovisions for staff who were transferred to other agencies when the Suburban Land Agency was established on1 July 2017.



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2018 $’000 1,302 2,309 4,182 2,318 1,616

824 753 643 265

1,925

16,137

363 196 535

6 10

4 146

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NOTE 9 SUPPLIES AND SERVICES

Services Provided by EPSDD (a) Selling Expenses (b) Contractors and Consultants (c) Asset Management (d) Marketing and Advertising Expenses (e) Payment to the CMTEDD (f) Payment to CRA (g) Insurance (h) Payment Pursuant to a Judgment of the ACT Supreme Court (i) Other (j)

Total Supplies and Services

(a) The EPSDD provided the following services free of charge

Infrastructure Planning People and Capability Governance, Compliance and Legal Government Services Communications Fleet Management Information Management Due Diligence Activities

Total Services Provided by EPSDD 1,302

(b) Selling Expenses include sales commission, legal conveyancing and expenses associated with holding salesevents.

(c) Contractors and Consultants include consultant, financial and legal services related to land developmentactivities and functions such as early design and feasibility analysis.

(d) Asset Management includes expenses associated with the maintenance of Suburban Land Agency estatesand urban infill blocks while under construction and for sale.

(e) Marketing and Advertising Expenses mainly relate to marketing and promotional expenses of the SuburbanLand Agency’s land releases, estates and the Mingle community engagement program.

(f) Payment to CMTEDD includes payments for finance, ICT, HR and procurement services and support.

(g) Payment to CRA relates to the reimbursement for decommissioning costs of the Westside Container Village.

(h) Insurance relates to insurance premiums paid to the ACT Insurance Authority. This includes insurance forcontract works, public liability, property and business interruption, directors and officers liability,professional indemnity and fidelity.

(i) Payment made pursuant to a judgment of the ACT Supreme Court on a matter raised with the former LDAfor the sale of Greenway Block 1 Section 79.

(j) Other Supplies and Services include other expenses incurred for business operations such as payments toACT Property Group for office accommodation, staff development costs, travel expense, office equipmentand consumables.




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NOTE 10 COST OF LAND SOLD

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

2018 $’000

Land Costs 15,965 Capitalised Development Costs 41,396 Infrastructure Assets Costs 4,425

Total Costs of Land Sold 61,786

Cost of Land Sold includes the land cost, direct costs relating to the development of land and the value of infrastructure constructed by land purchasers and transferred through the Suburban Land Agency to the Transport Canberra and City Services Directorate (TCCS) and Icon Water. Estimates of direct development costs are made for unfinished project wide works. The Cost of Land Sold is expensed in the Statement of Comprehensive Income when the developed land is settled. Refer to Appendix B: Significant Accounting Policies for further details.

Revised cost estimates to complete projects, resulted in a decrease of $39.978 million in the Cost of Land Sold. Refer to Appendix D Change in Accounting Estimates for further details.

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

2018 $’000

Land Costs 15,965 Capitalised Development Costs 41,396 Infrastructure Assets Costs 4,425

Total Costs of Land Sold 61,786

Cost of Land Sold includes the land cost, direct costs relating to the development of land and the value of infrastructure constructed by land purchasers and transferred through the Suburban Land Agency to the Transport Canberra and City Services Directorate (TCCS) and Icon Water. Estimates of direct development costs are made for unfinished project wide works. The Cost of Land Sold is expensed in the Statement of Comprehensive Income when the developed land is settled. Refer to Appendix B: Significant Accounting Policies for further details.

Revised cost estimates to complete projects, resulted in a decrease of $39.978 million in the Cost of Land Sold. Refer to Appendix D Change in Accounting Estimates for further details.



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NOTE 11 WRITE-DOWN OF INVENTORY

2018 $’000

Write-Down of Inventory for Sites Transferred from Other ACT Government Entities (a) 76,029 Write-Down of Inventory for Discontinued Projects (b) 452

Total Write-Down of Inventory 76,481

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 a Write-Down of Inventory.

(a) In 2017-18, the following sites were transferred from other ACT Government entities at no cost to theSuburban Land Agency, resulting in the net book value of transferred sites to be recorded as Write-Down ofInventory.

Sites transferred as resources received free of charge:

Dunlop Block 2 Section 82 (Fassifern) Griffith Block 2 Section 43 (Menslink) Molonglo Block 13 (Kallenia River Cottage)

Sites transferred as equity injections: Dickson Block 8 Section 77 and Block 19 Section 33 (Motor Vehicle Registry) Dickson Block 6 Section 77 (Karuah Garden Flats) Dickson Blocks 19 and 20 Section 32 (Dame Pattie Menzies House) Lyneham Block 2 Section 50 (Macarthur House) Reid Block 1 Section 7 (Bega Flats)

(b) A Write-Down of Inventory is also recognised for expenses incurred for sites after the land settlement hasoccurred and for expenses incurred for discontinued projects.




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NOTE 12 OTHER EXPENSES

2018 $’000

Resources Provided to Other Agencies Free of Charge (a) 2,470 Land Holding Cost Equivalents (b) 945 Stamp Duty Equivalents (c) 713 Depreciation and Amortisation (d) 136

Total Other Expenses 4,264

(a) Resources Provided to Other Agencies Free of Charge related to the Grevillea Park Rowing Facilitytransferred to TCCS and ACT Property Group at no cost.

(b) Land Holding Cost Equivalents relates to notional interest paid to EPSDD on rural land purchased from theTerritory. Refer to Appendix B: Significant Accounting Policies for further details.

(c) Stamp Duty Equivalents are paid to CMTEDD on land purchased from the Territory. Refer to Appendix B:Significant Accounting Policies for further details.

(d) Depreciation and Amortisation relates to the office building of the West Belconnen Joint Operation,leasehold improvements in the Suburban Land Agency’s office building and customer relationshipmanagement software for land sales.

NOTE 13 AUDITOR’S REMUNERATION

Auditor’s remuneration consists of financial audit services provided to the Suburban Land Agency by the ACT Audit Office and any other services provided by a contracted auditor engaged by the ACT Audit Office to conduct the 2017-18 financial audit.

2018 $’000

Audit Services

Audit Fees Payable to the ACT Audit Office 144

Total Audit Fees 144

No other services were provided by the ACT Audit Office.

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2018 $’000

Resources Provided to Other Agencies Free of Charge (a) 2,470 Land Holding Cost Equivalents (b) 945 Stamp Duty Equivalents (c) 713 Depreciation and Amortisation (d) 136

Total Other Expenses 4,264

(a) Resources Provided to Other Agencies Free of Charge related to the Grevillea Park Rowing Facilitytransferred to TCCS and ACT Property Group at no cost.

(b) Land Holding Cost Equivalents relates to notional interest paid to EPSDD on rural land purchased from theTerritory. Refer to Appendix B: Significant Accounting Policies for further details.

(c) Stamp Duty Equivalents are paid to CMTEDD on land purchased from the Territory. Refer to Appendix B:Significant Accounting Policies for further details.

(d) Depreciation and Amortisation relates to the office building of the West Belconnen Joint Operation,leasehold improvements in the Suburban Land Agency’s office building and customer relationshipmanagement software for land sales.

NOTE 13 AUDITOR’S REMUNERATION

Auditor’s remuneration consists of financial audit services provided to the Suburban Land Agency by the ACT Audit Office and any other services provided by a contracted auditor engaged by the ACT Audit Office to conduct the 2017-18 financial audit.

2018 $’000

Audit Services

Audit Fees Payable to the ACT Audit Office 144

Total Audit Fees 144

No other services were provided by the ACT Audit Office.



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NOTE 14 NATIONAL TAX EQUIVALENTS The Suburban Land Agency is a Territory owned Public Trading Enterprise and is listed in the NTER entity register to participate in the NTER.

NTER is an administrative arrangement with the Australian Taxation Office. Under this arrangement, relevant taxation laws will be applied notionally to NTER entities as if they were subject to those laws. Each NTER entity will be assessed annually as to its income tax equivalent liability and will be required to pay instalments of the (expected) liability to the Territory.

The primary objective of the NTER is to promote competitive neutrality, through a uniform application of income tax laws, between the NTER entities and their privately held counterparts.

2018 $’000

National Tax Equivalents The major components of National Tax Equivalents are: Provision for Current Year National Tax Equivalents 50,640 Current Year Movement in the Net Deferred Tax Liability, refer to Note 25:

Deferred Tax Liability 18,490

National Tax Equivalents 69,130

Numeric Reconciliation of National Tax Equivalents to Prima Facie Tax Operating Surplus before National Tax Equivalents 230,430 National Tax Equivalents calculated at 30 per cent 69,130 National Tax Equivalents 69,130

NOTE 15 CASH AND CASH EQUIVALENTS The Suburban Land Agency holds a bank account with Westpac Bank as a part of the ACT WhoG banking arrangement. The Suburban Land Agency received interest on the account.

2018 $’000

Cash at Bank (a) 85,969 60 per cent Share of Cash held by the West Belconnen Joint Operation (b) 4,031

Total Cash and Cash Equivalents 90,000

(a) Under the Suburban Land Agency’s Investment Policy there is the option of leaving surplus cash in theWestpac transaction account (Cash at Bank) or the cash facility (Investments with the Territory BankingAccount) depending on which account has the more favourable interest rate at the time of investment. Asthe Westpac transaction account has the more favourable rate, cash is invested in this account.

(b) The Suburban Land Agency holds a 60 per cent share in the joint operation on behalf of the Territory andaccounts for its share of the cash held by the West Belconnen Joint Operation.




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NOTE 16 RECEIVABLES 2018

$’000

Current Receivables

Trade Receivables (a) 23,362 Less: Allowance for Impairment Losses (78)

23,284

Accrued Revenue 12 Right to Receive Infrastructure (b) 17,525

Total Current Receivables 40,821

Non-Current Receivables Trade Receivable 19 Right to Receive Infrastructure (b) 28,287

Deferred Receivable – Contribution to West Belconnen Joint Operation 33,898 Less: 60% Share of Joint Operation (20,339) Net Deferred Receivable – Contribution to West Belconnen Joint Operation (c) 13,559

Total Non-Current Receivables 41,865 Total Receivables 82,686

(a) Trade Receivables are primarily represented by ACT Government debtors. Trade Receivables includereceivables from the ACT Revenue Office for land rent sales and EPSDD for land sales to the PHRT.

(b) Right to Receive Infrastructure relates to infrastructure that is required to be developed by the purchaserand handed back to the Suburban Land Agency as part of a Deed of Agreement associated with land sales.If the infrastructure is expected to be received within 12 months it is classified as Current Receivables,otherwise it is classified as Non-Current Receivables.

(c) The former LDA and the Suburban Land Agency provided an unsecured loan to the West Belconnen JointOperation in 2016-17 and 2017-18 financial years respectively to fund project activities under the jointoperation agreement. In June 2018, the Suburban Land Agency provided a contribution to the jointoperation to repay the unsecured loan in full (including accumulated interest). The Suburban Land Agencyhas a priority right to the distributions from the joint operation where and by the amount that creates animbalance in the joint operation equity account. If the contributed amount exceeds the Suburban LandAgency’s share of the assets and liabilities of the joint operation, the remaining amount is recognised as anet Deferred Receivable – Contribution to West Belconnen Joint Operation. This amount is further assessedfor recoverability on an annual basis. As at 30 June 2018, the Net Deferred Receivable – Contribution to theWest Belconnen Joint Operation balance was $13.559 million.

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NOTE 16 RECEIVABLES 2018

$’000

Current Receivables

Trade Receivables (a) 23,362 Less: Allowance for Impairment Losses (78)

23,284

Accrued Revenue 12 Right to Receive Infrastructure (b) 17,525

Total Current Receivables 40,821

Non-Current Receivables Trade Receivable 19 Right to Receive Infrastructure (b) 28,287

Deferred Receivable – Contribution to West Belconnen Joint Operation 33,898 Less: 60% Share of Joint Operation (20,339) Net Deferred Receivable – Contribution to West Belconnen Joint Operation (c) 13,559

Total Non-Current Receivables 41,865 Total Receivables 82,686

(a) Trade Receivables are primarily represented by ACT Government debtors. Trade Receivables includereceivables from the ACT Revenue Office for land rent sales and EPSDD for land sales to the PHRT.

(b) Right to Receive Infrastructure relates to infrastructure that is required to be developed by the purchaserand handed back to the Suburban Land Agency as part of a Deed of Agreement associated with land sales.If the infrastructure is expected to be received within 12 months it is classified as Current Receivables,otherwise it is classified as Non-Current Receivables.

(c) The former LDA and the Suburban Land Agency provided an unsecured loan to the West Belconnen JointOperation in 2016-17 and 2017-18 financial years respectively to fund project activities under the jointoperation agreement. In June 2018, the Suburban Land Agency provided a contribution to the jointoperation to repay the unsecured loan in full (including accumulated interest). The Suburban Land Agencyhas a priority right to the distributions from the joint operation where and by the amount that creates animbalance in the joint operation equity account. If the contributed amount exceeds the Suburban LandAgency’s share of the assets and liabilities of the joint operation, the remaining amount is recognised as anet Deferred Receivable – Contribution to West Belconnen Joint Operation. This amount is further assessedfor recoverability on an annual basis. As at 30 June 2018, the Net Deferred Receivable – Contribution to theWest Belconnen Joint Operation balance was $13.559 million.



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NOTE 16 RECEIVABLES - CONTINUED

Ageing of Receivables Not Overdue Overdue Total

Less than Greater than 30 Days 30 to 60 Days 60 Days

$'000 $'000 $'000 $'000 $'000

2018

Not Impaired Receivables (a) 79,100 30 - 3,556 82,686

Impaired Receivables - - - 78 78

(a) 'Not impaired' refers to Net Receivables (that is Gross Receivables less Impaired Receivables). The majorityof receivables relate to the right to receive infrastructure under contractual arrangements with purchasersof land. Impaired Receivables of $0.078 million was transferred to the Suburban Land Agency when theformer LDA ceased operating on 30 June 2017.

Receivables overdue by greater than 60 days mainly relates to the following: $1.540 million receivable from the Commonwealth Department of Finance recorded by the former LDA

in June 2014 for the remediation works undertaken at Kingston Foreshore. This matter is being dealtwith as part of ACT Government and Commonwealth negotiations of various land related matters. Thisparticular claim is still live and negotiations with the Commonwealth are being led by CMTEDD.

$1.690 million receivable from EPSDD for land sales to PHRT.

2018 $’000

Classification of ACT Government/Non-ACT Government Receivables

Receivables from ACT Government Entities Trade Receivables 19,486 Total Receivables from ACT Government Entities 19,486

Receivables from Non-ACT Government Entities Right to Receive Infrastructure 45,812 Trade Receivables 3,817 Accrued Revenue 12 Net Deferred Receivable – Contribution to West Belconnen Joint Operation 13,559

Total Receivables from Non-ACT Government Entities 63,200 Total Receivables 82,686




25

NOTE 17 INVENTORIES

2018 $’000

Current Inventories Developed Land, Construction Completed and Available for Sale, at Cost (a) 95,802

Land Being Developed - Work in Progress Land Acquisition Costs (b) 12,720

Development Costs (c) 28,405 Total Land Being Developed - Work in Progress 41,125 Total Current Inventories 136,927

Non-Current Inventories Land Being Developed - Work in Progress Land Acquisition Costs (b) 37,715

Development Costs (c) 79,914 Total Land Being Developed - Work in Progress 117,629 Total Non-Current Inventories 117,629 Total Inventories 254,556

(a) Land available for sale mainly consists of land in Coombs, Greenway, Moncrieff, Phillip and Throsby.

(b) Land acquisition costs mainly consist of land transferred from the Territory in North Wright, North Coombs,Lawson and Taylor.

(c) Development costs mainly relate to development activity to prepare sites for sale as serviced land in NorthWright, North Coombs, Taylor, Greenway and West Belconnen.

81



25

NOTE 17 INVENTORIES

2018 $’000

Current Inventories Developed Land, Construction Completed and Available for Sale, at Cost (a) 95,802

Land Being Developed - Work in Progress Land Acquisition Costs (b) 12,720

Development Costs (c) 28,405 Total Land Being Developed - Work in Progress 41,125 Total Current Inventories 136,927

Non-Current Inventories Land Being Developed - Work in Progress Land Acquisition Costs (b) 37,715

Development Costs (c) 79,914 Total Land Being Developed - Work in Progress 117,629 Total Non-Current Inventories 117,629 Total Inventories 254,556

(a) Land available for sale mainly consists of land in Coombs, Greenway, Moncrieff, Phillip and Throsby.

(b) Land acquisition costs mainly consist of land transferred from the Territory in North Wright, North Coombs,Lawson and Taylor.

(c) Development costs mainly relate to development activity to prepare sites for sale as serviced land in NorthWright, North Coombs, Taylor, Greenway and West Belconnen.

26



NOTE 18 PROPERTY, PLANT AND EQUIPMENT

Property, Plant and Equipment includes the following classes of assets – Land and Buildings, Leasehold Improvements, Plant and Equipment and Heritage Assets. Property, Plant and Equipment does not include assets held for sale or investment properties.

Land and Buildings held includes rural properties and property held for use as office buildings.

Leasehold Improvements represent fit-outs in leased buildings.

Plant and Equipment includes furniture, fittings and electronic office equipment.

The heritage asset held is the John Fowler & Co Locomotive.

2018 $’000

Land and Buildings

Land at Fair Value (a) 43,130

Total Land Assets 43,130

Buildings at Fair Value (b) 2,760

Total Written Down Value of Buildings 2,760

Total Land and Written Down Value of Buildings 45,890

Leasehold Improvements

Leasehold Improvements at Cost 69 Less: Accumulated Depreciation (13)

Total Written Down Value of Leasehold Improvements Assets 56

Plant and Equipment

Plant and Equipment at Cost 127 Less: Accumulated Depreciation (11)

Total Written Down Value of Plant and Equipment 116

Heritage Assets

Heritage Assets at Cost 442

Total Written Down Value of Heritage Assets 442 Total Written Down Value of Property, Plant and Equipment 46,504

(a) Land consists of rural land in Belconnen, Stromlo and Tuggeranong.

(b) Buildings includes office buildings of the West Belconnen Joint Operation.




27

NOTE 18 PROPERTY, PLANT AND EQUIPMENT - CONTINUED

Valuation of Property, Plant and Equipment

Jones Lang LaSalle Advisory Services Pty Ltd performed a valuation as at 30 June 2016 of land and buildings now held by the Suburban Land Agency. Further details on the valuation and measurement of Property, Plant and Equipment can be found in Appendix B: Significant Accounting Policies.

Knight Frank Canberra performed a valuation of the West Belconnen Joint Operation’s land and buildings at 30 June 2018.

Reconciliation of Property, Plant and Equipment at 30 June 2018

The following table shows the movement of Property, Plant and Equipment during 2017-18.

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 - - - - - - Transferred in as part of an Administrative Restructure 35,736 4,841 18 76 442 41,113 Additions 7,394 14 51 49 - 7,508Disposals - (2,470) - - - (2,470)Revaluation Increment Recognised in Other Comprehensive Income - 430 - - - 430 Depreciation - (55) (13) (9) - (77)

Carrying Amount at the End of the Reporting Period 43,130 2,760 56 116 442 46,504

83



27

NOTE 18 PROPERTY, PLANT AND EQUIPMENT - CONTINUED

Valuation of Property, Plant and Equipment

Jones Lang LaSalle Advisory Services Pty Ltd performed a valuation as at 30 June 2016 of land and buildings now held by the Suburban Land Agency. Further details on the valuation and measurement of Property, Plant and Equipment can be found in Appendix B: Significant Accounting Policies.

Knight Frank Canberra performed a valuation of the West Belconnen Joint Operation’s land and buildings at 30 June 2018.

Reconciliation of Property, Plant and Equipment at 30 June 2018

The following table shows the movement of Property, Plant and Equipment during 2017-18.

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 - - - - - - Transferred in as part of an Administrative Restructure 35,736 4,841 18 76 442 41,113 Additions 7,394 14 51 49 - 7,508Disposals - (2,470) - - - (2,470)Revaluation Increment Recognised in Other Comprehensive Income - 430 - - - 430 Depreciation - (55) (13) (9) - (77)

Carrying Amount at the End of the Reporting Period 43,130 2,760 56 116 442 46,504



28

NOTE 18 PROPERTY, PLANT AND EQUIPMENT – CONTINUED

Carrying Value of Fair Valued Assets under the Cost Model

The following classes of Property, Plant and Equipment, which are carried at fair value (as indicated above), would have had carrying values, if measured using the cost model, as follows:

2018 $’000

Carrying value if measured using Cost Model

Land Cost 39,098 Addition 7,394

Net Carrying Amount of Land at Cost 46,492

Buildings Cost 4,841 Addition 14 Accumulated Depreciation and Disposals (2,525)

Net Carrying Amount of Buildings at Cost 2,330

Fair Value Hierarchy

The Fair Value Hierarchy below reflects the significance of the inputs used in determining fair value. The Fair Value Hierarchy is made up of the following three levels:

Level 1 - quoted prices (unadjusted) in active markets for identical assets or liabilities that the SuburbanLand Agency can access at the measurement date.

Level 2 - inputs other than quoted prices included within Level 1 that are observable for the asset orliability, either directly or indirectly.

Level 3 - inputs that are unobservable for particular assets or liabilities.

Details of the Suburban Land Agency’s Property, Plant and Equipment at fair value and information about the Fair Value Hierarchy as at 30 June 2018 are as follows:

2018 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 - 43,130 - 43,130Buildings - 2,760 - 2,760

- 45,890 - 45,890




29

NOTE 19 INTANGIBLE ASSETS

2018 $’000

Computer Software

Externally Purchased Software

Balance at the Beginning of the Reporting Period 144 Additions 15 Subtotal 159

Less: Accumulated Amortisation (64) Total Externally Purchased Software 95

Total Computer Software (a) 95

Total Intangible Assets 95

(a) This relates to the customer relationship management system for land sales.

85



29


2018 $’000

Computer Software

Externally Purchased Software

Balance at the Beginning of the Reporting Period 144 Additions 15 Subtotal 159

Less: Accumulated Amortisation (64) Total Externally Purchased Software 95

Total Computer Software (a) 95

Total Intangible Assets 95

(a) This relates to the customer relationship management system for land sales.



30

NOTE 20 PAYABLES

2018 $’000

Current Payables

Payables to the Territory Banking Account for Capital Injection for ARI blocks (a) 47,793 Payables to EPSDD for Land Sold (b) 4,180 Payables to EPSDD for Land Developed or Yet to be Developed (c) 33,723 Accrued Expenses (d) 14,506 Other Payables (e) 30,286

Total Current Payables 130,489

Non-Current Payables Payables to EPSDD for Land Yet to be Developed (f) 10,806 Total Non-Current Payables 10,806 Total Payables 141,295

(a) Payment to the Territory Banking Account is made following the settlement of ARI sites to the SuburbanLand Agency. The ARI is a program led by the Commonwealth Government that provides incentive paymentsto states and territories that sell assets and reinvest the sale proceeds to fund infrastructure. The ACTGovernment signed the National Partnership Agreement on Asset Recycling with the CommonwealthGovernment in February 2015. Under this program, 15 land based assets are to be sold before the end ofthe 2018-19 period. The ARI sites were transferred from Housing ACT and ACT Property Group ascontributions of equity. The Suburban Land Agency is responsible for the sale of these assets and returnsthe sale proceeds to the ACT Government.

(b) Payable to EPSDD for Land Sold are for developed land which has settled.

(c) Payable to EPSDD for Land Developed or Yet to be Developed which are due to settle within 12 months. TheSuburban Land Agency holds the custodianship of the land.

(d) Accrued Expenses mainly related to civil works completed as at 30 June 2018 which had not yet beeninvoiced.

(e) Other Payables included GST payable to the Australian Tax Office for land sales, retention monies held assecurity for project delivery agreements and land rent security payments.

(f) Payable to EPSDD for Land Developed or Yet to be Developed which are not due to settle within 12 months.The Suburban Land Agency holds the custodianship of the land.




31

NOTE 20 PAYABLES - CONTINUED

2018 $’000

Payables are aged as follows: Not Overdue 140,835 Overdue for Less than 30 Days 48 Overdue for 30 to 60 Days 184 Overdue for More than 60 Days 228

Total Payables 141,295

Classification of ACT Government/Non-ACT Government Payables

Payables with ACT Government Entities

Payable to the Territory Banking Account for Capital Injection for ARI blocks 47,793

Payable to EPSDD for Land Sold 4,180

Payable to EPSDD for Land Yet to be Developed 44,529 Accrued Expenses 764

Total Payables with ACT Government Entities 97,266

Payables with Non-ACT Government Entities

Other Payables 30,286 Accrued Expenses 13,742

Total Payables with Non-ACT Government Entities 44,028 Total Payables 141,295

87



31

NOTE 20 PAYABLES - CONTINUED

2018 $’000

Payables are aged as follows: Not Overdue 140,835 Overdue for Less than 30 Days 48 Overdue for 30 to 60 Days 184 Overdue for More than 60 Days 228

Total Payables 141,295

Classification of ACT Government/Non-ACT Government Payables

Payables with ACT Government Entities

Payable to the Territory Banking Account for Capital Injection for ARI blocks 47,793

Payable to EPSDD for Land Sold 4,180

Payable to EPSDD for Land Yet to be Developed 44,529 Accrued Expenses 764

Total Payables with ACT Government Entities 97,266

Payables with Non-ACT Government Entities

Other Payables 30,286 Accrued Expenses 13,742

Total Payables with Non-ACT Government Entities 44,028 Total Payables 141,295



32

NOTE 21 EMPLOYEE BENEFITS

2018 $’000

Current Employee Benefits

Long Service Leave 2,041 Annual Leave 1,272 Accrued Salaries and Superannuation 178 Accrued Payroll Tax 74

Total Current Employee Benefits 3,565

Non-Current Employee Benefits Long Service Leave 148

Total Non-Current Employee Benefits 148 Total Employee Benefits 3,713

Estimate of when Leave is Payable

Estimated Amount Payable within 12 months 2018 $’000

Long Service Leave 212 Annual Leave 696 Accrued Salaries and Superannuation 178 Accrued Payroll Tax 74

Total Employee Benefits Payable within 12 months 1,160

Estimated Amount Payable after 12 months

Long Service Leave 1,977 Annual Leave 576

Total Employee Benefits Payable after 12 months 2,553 Total Employee Benefits (a) 3,713

(a) At 30 June 2018, the Suburban Land Agency employed 77.5 full time equivalent (FTE) staff.




33

NOTE 22 OTHER PROVISIONS

2018 $’000

Current Other Provisions Provision for Project Completion 31,252 Provision to Transfer Infrastructure 17,525

Total Current Other Provisions 48,777

Non-Current Other Provisions Provision for Project Completion 21,636 Provision to Transfer Infrastructure 28,287

Total Non-Current Other Provision 49,923 Total Other Provisions 98,700

Provision for Project Completion

The Provision for Project Completion reflects the expected costs required to finish developed parcels of land. As at 30 June 2018, the value of Provision for Project Completion related to settlement ready blocks in Suburban Land Agency estates. The major contributors were $15.154 million attributable to Coombs, $15.236 million attributable to Kingston Foreshore and $5.301 million attributable to Greenway.

2018 $'000

Reconciliation of the Provision for Project Completion Provision for Project Completion Transferred in as part of an Administrative Restructure 97,611 Increase in Provision due to Blocks becoming Settlement Ready 86,388 Decrease in Provision due to Payments (131,111) Provision for Project Completion at the End of the Reporting Period 52,888

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 complete.

2018 $'000

Reconciliation of the Provision to Transfer Infrastructure Provision to Transfer Infrastructure Transferred in as part of an Administrative Restructure

42,146

Add: New Infrastructure to be Developed by Other Developers 4,424 Less: Transfer of Infrastructure to ACT Government Entities (758) Provision for Transfer Infrastructure at the End of the Reporting Period 45,812

89



33


2018 $’000

Current Other Provisions Provision for Project Completion 31,252 Provision to Transfer Infrastructure 17,525

Total Current Other Provisions 48,777

Non-Current Other Provisions Provision for Project Completion 21,636 Provision to Transfer Infrastructure 28,287

Total Non-Current Other Provision 49,923 Total Other Provisions 98,700

Provision for Project Completion

The Provision for Project Completion reflects the expected costs required to finish developed parcels of land. As at 30 June 2018, the value of Provision for Project Completion related to settlement ready blocks in Suburban Land Agency estates. The major contributors were $15.154 million attributable to Coombs, $15.236 million attributable to Kingston Foreshore and $5.301 million attributable to Greenway.

2018 $'000

Reconciliation of the Provision for Project Completion Provision for Project Completion Transferred in as part of an Administrative Restructure 97,611 Increase in Provision due to Blocks becoming Settlement Ready 86,388 Decrease in Provision due to Payments (131,111) Provision for Project Completion at the End of the Reporting Period 52,888

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 complete.

2018 $'000

Reconciliation of the Provision to Transfer Infrastructure Provision to Transfer Infrastructure Transferred in as part of an Administrative Restructure

42,146

Add: New Infrastructure to be Developed by Other Developers 4,424 Less: Transfer of Infrastructure to ACT Government Entities (758) Provision for Transfer Infrastructure at the End of the Reporting Period 45,812



34

NOTE 23 NATIONAL TAX EQUIVALENTS PAYABLE

National Tax Equivalents are paid to the ACT Revenue Office. 2018

$’000

Opening Balance - National Tax Equivalents Liability Transferred In As Part of an Administrative Restructure 48,103 Payment of Previous Year's National Tax Equivalents Liability (a) (48,103) Deferral of National Tax Equivalents Payment to Future Periods (b) (18,490) National Tax Equivalents Expense for Current Year 69,130 Instalments Paid for Current Year's National Tax Equivalents (22,446)

Total National Tax Equivalent Payable 28,194

(a) This was the payment for the former LDA’s 2016-17 final NTER liability. The LDA ceased operating as aseparate entity on 30 June 2017. As per the Financial Management (Land Development Agency Transfer toSuburban Land Agency) Declaration 2017 the majority of the former LDA’s liabilities and assets weretransferred to the Suburban Land Agency. The Suburban Land Agency was required to meet the LDA’sliabilities and make the 2016-17 final NTER payment.

(b) This is the amount of National Tax Equivalents Payable in future periods relating to temporary differencesbetween the carrying amount of an asset or liability in the balance sheet and its tax base. Refer to Note 25:Deferred Tax Liability for further details.




35

NOTE 24 OTHER LIABILITIES

2018 $’000

Current Other Liabilities

Dividend Payable (a) 64,211

Revenue Received in Advance (b) 15,708

Total Current Other Liabilities 79,919

Non-Current Other Liabilities Revenue Received in Advance (b) 1,154 Total Non-Other Liabilities 1,154 Total Other Liabilities 81,073

Reconciliation of Dividends Payable

Dividends Payable Transferred in as part of an Administrative Restructure 97,107 Dividends Declared during the Reporting Period 161,300 Dividends Paid during the Reporting Period for Previous Year (59,817) Dividends Paid during the Reporting Period for Current Year (134,379)

Dividend Payable at the End of the Reporting Period 64,211

(a) The Suburban Land Agency pays the Territory a dividend of 100 per cent of net profits after tax. Paymentsof the dividend are made in two instalments each year: an interim payment of 80 per cent of estimated netprofits is payable by 30 June of each financial year, with a final balance of actual net profits by 31 Octoberof the following financial year. Refer to Appendix B: Significant Accounting Policies for further details.

(b) Revenue Received in Advance relates to deposits received at the time of exchange of land sales contracts.

91



35


2018 $’000

Current Other Liabilities

Dividend Payable (a) 64,211

Revenue Received in Advance (b) 15,708

Total Current Other Liabilities 79,919

Non-Current Other Liabilities Revenue Received in Advance (b) 1,154 Total Non-Other Liabilities 1,154 Total Other Liabilities 81,073

Reconciliation of Dividends Payable

Dividends Payable Transferred in as part of an Administrative Restructure 97,107 Dividends Declared during the Reporting Period 161,300 Dividends Paid during the Reporting Period for Previous Year (59,817) Dividends Paid during the Reporting Period for Current Year (134,379)

Dividend Payable at the End of the Reporting Period 64,211

(a) The Suburban Land Agency pays the Territory a dividend of 100 per cent of net profits after tax. Paymentsof the dividend are made in two instalments each year: an interim payment of 80 per cent of estimated netprofits is payable by 30 June of each financial year, with a final balance of actual net profits by 31 Octoberof the following financial year. Refer to Appendix B: Significant Accounting Policies for further details.

(b) Revenue Received in Advance relates to deposits received at the time of exchange of land sales contracts.

36



NOTE 25 DEFERRED TAX LIABILITY

Deferred Tax Liabilities are the amounts of National Tax Equivalents payable in future periods relating to taxable temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base.

2018 $’000

The balance comprises temporary differences attributable to:

Opening Balance -

Re-recognition of Deferred Tax Liability (a) 34,215 Increase in Inventories 3,511 Increase in Provision for Project Completion 13,417 Increase in Employee Benefits 297 Accelerated Depreciation 57 Other 1,208

Current year movements (b) 52,705

Net Deferred Tax Liability 52,705

(a) This related to the re-recognition of the deferred tax liability of the former LDA. When the LDA ceasedoperating as a separate entity on 30 June 2017, the deferred tax liability was de-recognised from the BalanceSheet. As per the Financial Management (Land Development Agency Transfer to Suburban Land Agency)Declaration 2017 Notifiable Instrument NI2017-343, the majority of assets and liabilities were transferredto the Suburban Land Agency. The Suburban Land Agency assumed the former LDA’s tax attributes and wasrequired to recognise the corresponding deferred tax liability. The deferred tax liability is re-recognised inthe equity account (refer to the Statement of Changes in Equity).

(b) This is the amount of National Tax Equivalents Payable in future periods relating to taxable temporarydifferences between the carrying amount of an asset or liability in the balance sheet and its tax base.

92 Suburban Land Agency: Annual Report 2017-18 37



NOTE 26 FINANCIAL INSTRUMENTS

Details of significant policies and methods adopted, including the criteria for recognition, the basis of measurement, and the basis on which income and expenses are 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 Suburban Land Agency holds most financial assets in floating interest rate arrangements. The Suburban Land Agency is not exposed to movements in interest payable as its financial liabilities are non-interest bearing. However, it is exposed to movements in interest receivable.

Financial assets subject to floating interest rates include investments held in commercial banking accounts, contributions to the West Belconnen Joint Operation and receivables for sales completed via instalments. The Suburban Land Agency manages the interest rate risk on investments held in a commercial banking account by only investing in floating interest rate investments that are low risk. Under the West Belconnen Joint Operation agreement, the interest rate is calculated at Bank Bill Swap Rate plus 3 per cent. The receivables with instalment payments are not actively managed due to the associated interest payments being immaterial. Interest rate risk for financial liabilities is not actively managed by the Suburban Land Agency as all financial liabilities are non-interest bearing.

Sensitivity Analysis

A sensitivity analysis of the interest rate risk has not been performed, as the Suburban Land Agency's exposure to interest rate risk has 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 Suburban Land Agency’s credit risk is limited to the amount of the financial assets it holds net of any allowance for impairment. The Suburban Land Agency expects to collect all financial assets that are not past due or impaired.

The Suburban Land Agency's credit risk mainly includes the investment of excess cash and exposure to deferred payment receivables. Credit risk is managed by the Suburban Land Agency by only investing surplus funds in a commercial bank account or with the Territory Banking Account, which has 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 which has been assessed as immaterial. Credit risk for receivables mainly relates to sales proceeds receivable from the CMTEDD and the EPSDD for land sales which are considered to be low risk. Therefore, the exposure to credit risk from the investment of excess cash and from receivables is low.

The Suburban Land Agency has a deferred receivable — contribution to the West Belconnen Joint Operation. Under the West Belconnen Joint Operation agreement, proceeds from the sale of land will pay this contribution at the joint operation’s discretion. T herefore, the exposure to credit risk from this contribution is low.

9337



NOTE 26 FINANCIAL INSTRUMENTS

Details of significant policies and methods adopted, including the criteria for recognition, the basis of measurement, and the basis on which income and expenses are 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 Suburban Land Agency holds most financial assets in floating interest rate arrangements. The Suburban Land Agency is not exposed to movements in interest payable as its financial liabilities are non-interest bearing. However, it is exposed to movements in interest receivable.

Financial assets subject to floating interest rates include investments held in commercial banking accounts, contributions to the West Belconnen Joint Operation and receivables for sales completed via instalments. The Suburban Land Agency manages the interest rate risk on investments held in a commercial banking account by only investing in floating interest rate investments that are low risk. Under the West Belconnen Joint Operation agreement, the interest rate is calculated at Bank Bill Swap Rate plus 3 per cent. The receivables with instalment payments are not actively managed due to the associated interest payments being immaterial. Interest rate risk for financial liabilities is not actively managed by the Suburban Land Agency as all financial liabilities are non-interest bearing.


A sensitivity analysis of the interest rate risk has not been performed, as the Suburban Land Agency's exposure to interest rate risk has 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 Suburban Land Agency’s credit risk is limited to the amount of the financial assets it holds net of any allowance for impairment. The Suburban Land Agency expects to collect all financial assets that are not past due or impaired.

The Suburban Land Agency's credit risk mainly includes the investment of excess cash and exposure to deferred payment receivables. Credit risk is managed by the Suburban Land Agency by only investing surplus funds in a commercial bank account or with the Territory Banking Account, which has 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 which has been assessed as immaterial. Credit risk for receivables mainly relates to sales proceeds receivable from the CMTEDD and the EPSDD for land sales which are considered to be low risk. Therefore, the exposure to credit risk from the investment of excess cash and from receivables is low.

The Suburban Land Agency has a deferred receivable — contribution to the West Belconnen Joint Operation. Under the West Belconnen Joint Operation agreement, proceeds from the sale of land will pay this contribution at the joint operation’s discretion. T herefore, the exposure to credit risk from this contribution is low.

38



NOTE 26 FINANCIAL INSTRUMENTS – CONTINUED

Liquidity Risk

Liquidity risk is the risk that the Suburban Land Agency 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 Suburban Land Agency 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. The Suburban Land Agency has a sufficient amount of current financial assets to meet its current financial liabilities as The City Renewal Authority and Suburban Land Agency (Suburban Land Agency Payment of Funds to Territory) Direction 2018 Notifiable Instrument NI2018-224 provides the Government with flexibility to approve a different dividend payment ratio and/or flexibility of payment timing, subject to the Treasurer’s approval of a written request from the Suburban Land Agency Board.

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. The Suburban Land Agency is not exposed to price risk.


A sensitivity analysis of the price risk has not been performed as the Suburban Land Agency is not exposed to price risk.




39

NOTE 26 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 No. Amount Amount

2018 2018 $’000 $’000

Financial Assets Cash and Cash Equivalents 15 90,000 90,000 Receivables (a) 16 36,874 36,874

Total Financial Assets 126,874 126,874

Financial Liabilities

Payables (b) 20 96,766 96,766

Total Financial Liabilities 96,766 96,766

2018 Reconciliation of Receivables as Financial Assets: $’000

Total Receivables 82,686 Less: Current Right to Receive Infrastructure (a) 17,525 Non-Current Right to Receive Infrastructure (a) 28,287

45,812 Total Receivables as Financial Assets 36,874

Reconciliation of Payables as Financial Liabilities:

Total Payables 141,295 Less: Current Payables to EPSDD for Land Yet to be Developed 33,723 Non-Current Payables to EPSDD for Land Yet to be Developed (b) 10,806

44,529 Total Payable as Financial Liabilities 96,766

(a) The amounts reported are net of the Right to Receive Infrastructure which do not meet the definition of aFinancial 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 Yet to be Developed which does not meetthe definition of a Financial Instrument under the Australian Accounting Standard AASB 139: ‘FinancialInstruments: Recognition and Measurement’.

95



39

NOTE 26 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 No. Amount Amount

2018 2018 $’000 $’000

Financial Assets Cash and Cash Equivalents 15 90,000 90,000 Receivables (a) 16 36,874 36,874

Total Financial Assets 126,874 126,874


Payables (b) 20 96,766 96,766

Total Financial Liabilities 96,766 96,766

2018 Reconciliation of Receivables as Financial Assets: $’000

Total Receivables 82,686 Less: Current Right to Receive Infrastructure (a) 17,525 Non-Current Right to Receive Infrastructure (a) 28,287

45,812 Total Receivables as Financial Assets 36,874

Reconciliation of Payables as Financial Liabilities:

Total Payables 141,295 Less: Current Payables to EPSDD for Land Yet to be Developed 33,723 Non-Current Payables to EPSDD for Land Yet to be Developed (b) 10,806

44,529 Total Payable as Financial Liabilities 96,766

(a) The amounts reported are net of the Right to Receive Infrastructure which do not meet the definition of aFinancial Instrument under the Australian Accounting Standard AASB 139: ‘Financial Instruments:Recognition and Measurement’.


Weighted Floating 1 Year Over 1 to

40




Maturity Analysis

The following table sets out the Suburban Land Agency'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 2018. All amounts appearing in the following maturity analysis are shown on an undiscounted cash flow basis.

Fixed Interest Maturing In: 2018 Note

e 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 and Cash Equivalents 15 2.25% 90,000 - - - - 90,000 Receivables (a) 16 4.84% 13,559 4 14 5 23,292 36,874

Total Financial Assets 103,559 4 14 5 23,292 126,874


Payables (b) 20 - - - - 96,766 96,766

Total Financial Liabilities - - - - 96,766 96,766

Net Financial Assets/(Liabilities) 103,559 4 14 5 (73,474) 30,108

(a) The amounts reported are net of the Right to Receive Infrastructure which do not meet the definition of aFinancial Instrument under AASB 139 ‘Financial Instruments: Recognition and Measurement’.





41


Carrying Amount of Each Category of Financial Asset and Financial Liability 2018

$’000 Financial Assets

Receivables Measured at Amortised Cost (a) 36,874


Financial Liabilities Measured at Amortised Cost (b) 96,766

(a) The amounts reported are net of the Right to Receive Infrastructure and Accrued Revenue which do notmeet the definition of a Financial Instrument under the Australian Accounting Standard AASB 139: ‘FinancialInstruments: Recognition and Measurement’.

(b) The amounts reported are net of the Payables to the EPSDD for Land Yet to be Developed which does notmeet the definition of a Financial Instrument under the Australian Accounting Standard AASB 139: ‘FinancialInstruments: Recognition and Measurement’.

The Suburban Land Agency does 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. The Suburban Land Agency does 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.

97



41


Carrying Amount of Each Category of Financial Asset and Financial Liability 2018

$’000 Financial Assets

Receivables Measured at Amortised Cost (a) 36,874


Financial Liabilities Measured at Amortised Cost (b) 96,766

(a) The amounts reported are net of the Right to Receive Infrastructure and Accrued Revenue which do notmeet the definition of a Financial Instrument under the Australian Accounting Standard AASB 139: ‘FinancialInstruments: Recognition and Measurement’.

(b) The amounts reported are net of the Payables to the EPSDD for Land Yet to be Developed which does notmeet the definition of a Financial Instrument under the Australian Accounting Standard AASB 139: ‘FinancialInstruments: Recognition and Measurement’.

The Suburban Land Agency does 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. The Suburban Land Agency does 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 27 COMMITMENTS

2018 $’000

Operating Leases Commitments

Non-cancellable operating lease commitments are payable as follows:

Within One Year 624 Later than One Year but not Later than Five Years 575 Later than Five Years 6

Total Operating Lease Commitments (a) 1,205

(a) Operating leases include: the lease of the Dickson office from ACT Property Group motor vehicle leases from SG Fleet Australia Pty Ltd IT equipment and mobile phones leased by Shared Services ICT

NOTE 28 CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Contingent Liabilities

The ACT Government Solicitor’s Office acts on behalf of the Suburban Land Agency in litigation matters. At 30 June 2018 the current estimate, provided by the ACT Government Solicitor’s Office, of potential claims is $0.821 million.




NOTE 29 INTEREST IN A JOINT OPERATION

The Territory has appointed the Suburban Land Agency as its agent to manage its 60 per cent interest in the West Belconnen Joint Operation, a joint operation between the Territory and Riverview Developments (ACT) Pty Ltd, Reid & Stevens Pty Limited and Corkhill Bros Pty Limited.

2018 $’000

Assets Employed in the Jointly Controlled Operation

Current Assets Cash and Cash Equivalents 4,031 Receivables 596 Inventories 2,417

Total Current Assets 7,044

Non-Current Assets Inventories 9,337 Property, Plant and Equipment 2,866 Intangible Assets 70

Total Non-Current Assets 12,273

Total Assets 19,317

Current Liabilities Payables 1,698 Other Liabilities 913

Total Current Liabilities 2,611

Non-Current Liabilities Other Liabilities 1,154

Total Non-Current Liabilities 1,154 Total Liabilities 3,765

Net Assets 15,552

Equity Share of Operating (Loss) from Joint Operation (5,817) Capital Injection 600 Asset Revaluation Surplus 430 Contribution 20,339

Balance of Interest in the Joint Operation 15,552

9943




The Territory has appointed the Suburban Land Agency as its agent to manage its 60 per cent interest in the West Belconnen Joint Operation, a joint operation between the Territory and Riverview Developments (ACT) Pty Ltd, Reid & Stevens Pty Limited and Corkhill Bros Pty Limited.

2018 $’000

Assets Employed in the Jointly Controlled Operation

Current Assets Cash and Cash Equivalents 4,031 Receivables 596 Inventories 2,417

Total Current Assets 7,044

Non-Current Assets Inventories 9,337 Property, Plant and Equipment 2,866 Intangible Assets 70

Total Non-Current Assets 12,273

Total Assets 19,317

Current Liabilities Payables 1,698 Other Liabilities 913

Total Current Liabilities 2,611

Non-Current Liabilities Other Liabilities 1,154


Net Assets 15,552

Equity Share of Operating (Loss) from Joint Operation (5,817) Capital Injection 600 Asset Revaluation Surplus 430 Contribution 20,339

Balance of Interest in the Joint Operation 15,552



44

NOTE 30 RESTRUCTURE OF ADMINISTRATIVE ARRANGEMENTS

When the LDA ceased operating as a separate entity on 30 June 2017, the majority of assets and liabilities were transferred to the Suburban Land Agency as per the Financial Management (Land Development Agency Transfer to Suburban Land Agency) Declaration 2017 Notifiable Instrument NI2017-343. The assets and liabilities transferred to the Suburban Land Agency at the date of transfer were as follows:

Transferred Amounts Amodget2018

$’000 Current Assets Cash and Cash Equivalents 182,496 Receivables 32,459 Inventories 125,324 Investments - Joint Ventures 396

Total Current Assets 340,675 Non-Current Assets Receivables 39,066 Inventories 116,330 Property, Plant and Equipment 41,115 Intangible Assets 143 Total Non-Current Assets 196,654

Total Assets 537,329

Current Liabilities Payables 116,652 Employee Benefits 4,076 Other Provisions 69,042 National Tax Equivalents Payable 48,104 Other Liabilities 112,219

Total Current Liabilities 350,093 Non-Current Liabilities Payables 12,927 Employee Benefits 201 Other Provisions 70,715 Other Liabilities 1,068


Net Assets 102,325

Equity Contributed Equity 102,325 Total Equity 102,325




45

NOTE 31 CASH FLOW RECONCILIATION

2018 $’000

(a) Reconciliation of Cash and Cash Equivalents at the End of the Reporting Periodin the Cash Flow Statement to the Equivalent Items in the Balance Sheet

Total Cash and Cash Equivalents Recorded in the Balance Sheet 90,000 Cash and Cash Equivalents at the End of the Reporting Period as Recorded

in the Cash Flow Statement 90,000

(b) Reconciliation of the Operating Surplus to the Net Cash Inflows From OperatingActivities

Operating Surplus 161,300

Add/(Less) Non-Cash Items

Depreciation and Amortisation 136 Service Received Free of Charge (2,668)(1,608) Land Received Free of Charge (1,060) Land and Building Transferred out Free of Charge 2,470 Write-Down of Inventory (Related to Land Transferred in Free of Charge) 76,029 Expenses Related to Resources Received Free of Charge 1,608

Add Items Classified as Investing or Financing Activities Share of Joint Venture Loss 2

Cash Before Changes in Operating Assets and Liabilities 238,878

Changes in Operating Assets and Liabilities (Increase) in Receivables (8,269) (Increase) in Inventories (12,903) Increase in Deferred Tax Liability 18,490 (Decrease) in Employee Entitlements (562) Increase in Payables 3,230 (Decrease) in Provisions (41,056) (Decrease) in National Tax Equivalents Payable (19,910) Increase in Other Liabilities 683 Net Changes in Operating Assets and Liabilities (60,297)

Net Cash inflows from Operating Activities 178,581

NOTE 32 THIRD PARTY MONIES

The contracts for the sale of land, developed by the West Belconnen Joint Operation are between the Suburban Land Agency as the ‘seller’ and a third party as the ‘buyer’. The initial holding deposits received from buyers are held in a trust account, set up under the name of Riverview Sales and Marketing, which is a registered real estate agent. As at 30 June 2018, the balance of holding deposits held in the trust account was $0.035 million. The Suburban Land Agency’s portion of the holding deposits was $0.021 million.

101



45

NOTE 31 CASH FLOW RECONCILIATION

2018 $’000

(a) Reconciliation of Cash and Cash Equivalents at the End of the Reporting Periodin the Cash Flow Statement to the Equivalent Items in the Balance Sheet

Total Cash and Cash Equivalents Recorded in the Balance Sheet 90,000 Cash and Cash Equivalents at the End of the Reporting Period as Recorded

in the Cash Flow Statement 90,000

(b) Reconciliation of the Operating Surplus to the Net Cash Inflows From OperatingActivities

Operating Surplus 161,300

Add/(Less) Non-Cash Items

Depreciation and Amortisation 136 Service Received Free of Charge (2,668)(1,608) Land Received Free of Charge (1,060) Land and Building Transferred out Free of Charge 2,470 Write-Down of Inventory (Related to Land Transferred in Free of Charge) 76,029 Expenses Related to Resources Received Free of Charge 1,608

Add Items Classified as Investing or Financing Activities Share of Joint Venture Loss 2

Cash Before Changes in Operating Assets and Liabilities 238,878

Changes in Operating Assets and Liabilities (Increase) in Receivables (8,269) (Increase) in Inventories (12,903) Increase in Deferred Tax Liability 18,490 (Decrease) in Employee Entitlements (562) Increase in Payables 3,230 (Decrease) in Provisions (41,056) (Decrease) in National Tax Equivalents Payable (19,910) Increase in Other Liabilities 683 Net Changes in Operating Assets and Liabilities (60,297)

Net Cash inflows from Operating Activities 178,581

NOTE 32 THIRD PARTY MONIES

The contracts for the sale of land, developed by the West Belconnen Joint Operation are between the Suburban Land Agency as the ‘seller’ and a third party as the ‘buyer’. The initial holding deposits received from buyers are held in a trust account, set up under the name of Riverview Sales and Marketing, which is a registered real estate agent. As at 30 June 2018, the balance of holding deposits held in the trust account was $0.035 million. The Suburban Land Agency’s portion of the holding deposits was $0.021 million.

46



NOTE 33 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 are those persons having authority and responsibility for planning, directing and controlling the activities of the Suburban Land Agency, directly or indirectly.

KMP of the Suburban Land Agency are the Portfolio Minister, members of the Suburban Land Agency Board, the Chief Executive Officer and certain members of the senior management team.

The Head of Service and the ACT Executive comprising the Cabinet Ministers are KMP of the ACT Government and therefore, together with their close family members, are related parties of the Suburban Land Agency.

This note does not include typical citizen transactions between the KMP and the Suburban Land Agency that occur on terms and conditions no different to those applying to the general public.

All KMP of the Suburban Land Agency completed related party disclosure collection forms as requested.

(A) CONTROLLING ENTITYThe Suburban Land Agency is an ACT Government controlled entity.

(B) KEY MANAGEMENT PERSONNEL

B.1 Transactions with Key Management PersonnelThere were no transactions with KMP that were material to the financial statements of the Suburban LandAgency.

B.2 Transactions with parties related to Key Management PersonnelThere were no transactions with parties related to KMP, including transactions with KMP’s close family membersor other related entities that were material to the financial statements of the Suburban Land Agency.

(C) TRANSACTIONS WITH OTHER ACT GOVERNMENT ENTITIESAll transactions with ACT Government controlled entities are disclosed in the relevant notes to the financialstatements of the Suburban Land Agency.




NOTE 34 KEY MANAGEMENT PERSONNEL REMUNERATION

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 2018.

Compensation of the Head of Service is included in the note on related party disclosures included in CMTEDD financial statements for the year ended 30 June 2018.

Compensation by the Suburban Land Agency to KMP is set out below 2018

$’000 Short-term employee benefits 1,217 Post-employment benefits 179 Other long-term benefits 29 Board member fees 269 Total Compensation by the Suburban Land Agency to KMP 1,694

10347



NOTE 34 KEY MANAGEMENT PERSONNEL REMUNERATION

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 2018.

Compensation of the Head of Service is included in the note on related party disclosures included in CMTEDD financial statements for the year ended 30 June 2018.

Compensation by the Suburban Land Agency to KMP is set out below 2018

$’000 Short-term employee benefits 1,217 Post-employment benefits 179 Other long-term benefits 29 Board member fees 269 Total Compensation by the Suburban Land Agency to KMP 1,694



48

NOTE 35 BUDGETARY REPORTING

Original Actual Budget

Statement of Comprehensive Income Line Items 2017-18 2017-18 (1) Variance Variance $’000 $’000 $’000 %

Land Revenue 388,072 575,832 (187,760) (32.61) The lower Land Revenue was predominantly due to the delayed settlement of the Red Hill Precinct ARI sale and delayed Throsby and Denman Prospect 2 settlements.

Employee Expenses 8,756 13,574 (4,818) (35.49) Employee Expenses include wages and salaries, superannuation expenses and other employee expenses. The lower Employee Expenses was mainly due to the capitalisation of project salaries, vacancies throughout the year and a one-off reduction in leave provisions as a result of staff transferred to other agencies when the former LDA ceased operating on 30 June 2017.

Supplies and Services 16,137 38,560 (22,423) (58.15) The lower Supplies and Services was mainly due to the timing of project related expenses, such as professional fees, sales and marketing affected by lower land revenue in 2017-18.

Cost of Land Sold 61,786 156,513 (94,727) (60.52) The lower Cost of Land Sold reflects the lower land sales and the impact of project completion cost estimate revisions.

Write-Down of Inventory 76,481 40,179 36,302 90.35 The higher Write-Down of Inventory was predominantly due to the write down of ARI sites transferred from other ACT Government agencies which were delayed from 2016-17.

Share of Operating Profit from Joint Ventures accounted for using the Equity Method (2) 4,222 (4,224) (100.05) The lower Share of Operating Profit from Joint Ventures was due to the West Belconnen Joint Operation income and expenses being accounted for in the Suburban Land Agency's financial statements rather than being accounted for in equity.

National Tax Equivalents 69,130 103,964 (34,834) (33.51) The lower National Tax Equivalents was due to the lower operating result.

Increase in Asset Revaluation Surplus attributable to Joint Operation 430 - 430 # The higher Asset Revaluation Surplus was due to the revaluation increment related to the West Belconnen Joint Operation office building.

(1) Original Budget refers to the amounts presented to the Legislative Assembly in the original budgeted financialstatements in respect of the reporting period (2017-18 Budget Statements).Note: # in the Variance % column represents a variance that is greater than 999 per cent or less than -999 percent.




49

NOTE 35 BUDGETARY REPORTING – CONTINUED


Balance Sheet Line Items 2017-18 2017-18 (1) Variance Variance $’000 $’000 $’000 %

Cash and Cash Equivalents 90,000 199,859 (109,859) (54.97) The lower Cash and Cash Equivalents was mainly due to lower cash receipts from land sales.

Current Receivables 40,821 10,879 29,942 275.23 The higher Current Receivables was predominantly due to receivables from the EPSDD for land sales to the PHRT.

Current Inventories 136,927 267,536 (130,609) (48.82) The lower Current Inventories was predominantly due to lower development costs incurred for development activities in Taylor, North Wright, North Coombs and Kingston Foreshore.

Non-Current Receivables 41,865 19,685 22,180 112.67 The higher Non-Current Receivables balance was predominantly due to higher than budgeted infrastructure assets receivable and a receivable from the West Belconnen Joint Operation which was budgeted against the Investments — Joint Ventures.

Non-Current Inventories 117,629 46,844 70,785 151.11 The higher Non-Current Inventories was mainly due to updates in the timing of future settlements after the release of the 2017-18 Budget.

Non-Current Investments – Joint Ventures - 47,193 (47,193) (100.00) The lower Non-Current Investments — Joint Ventures was due to accounting for West Belconnen Joint Operation revenue, expenses, assets and liabilities into the Suburban Land Agency’s financial statements in respect of its share rather than being treated as Investment — Joint Venture.

Current Payables 130,489 41,350 89,139 215.57 The higher Current Payables was predominantly due to an increase in capital distributions payable and reclassification and inclusion of the provision for land payment to EPSDD which was included in Other Liabilities in the 2017-18 Budget.

Current Other Provisions 48,777 83,561 (34,784) (41.63) The lower total Current Other Provisions was predominantly due to a reduction in the expected cost for electrical infrastructure relocation in Lawson compared to the 2017-18 Budget.

Current Other Liabilities 79,919 287,518 (207,599) (72.20) The lower Current Other Liabilities was predominantly due to the payment of the balance of 2016-17 dividends related to the former Land Development Agency in the 2017-18 financial year and a lower net operating result.

(1) Original Budget refers to the amounts presented to the Legislative Assembly in the original budgeted financialstatements in respect of the reporting period (2017-18 Budget Statements).

105



49



Balance Sheet Line Items 2017-18 2017-18 (1) Variance Variance $’000 $’000 $’000 %

Cash and Cash Equivalents 90,000 199,859 (109,859) (54.97) The lower Cash and Cash Equivalents was mainly due to lower cash receipts from land sales.

Current Receivables 40,821 10,879 29,942 275.23 The higher Current Receivables was predominantly due to receivables from the EPSDD for land sales to the PHRT.

Current Inventories 136,927 267,536 (130,609) (48.82) The lower Current Inventories was predominantly due to lower development costs incurred for development activities in Taylor, North Wright, North Coombs and Kingston Foreshore.

Non-Current Receivables 41,865 19,685 22,180 112.67 The higher Non-Current Receivables balance was predominantly due to higher than budgeted infrastructure assets receivable and a receivable from the West Belconnen Joint Operation which was budgeted against the Investments — Joint Ventures.

Non-Current Inventories 117,629 46,844 70,785 151.11 The higher Non-Current Inventories was mainly due to updates in the timing of future settlements after the release of the 2017-18 Budget.

Non-Current Investments – Joint Ventures - 47,193 (47,193) (100.00) The lower Non-Current Investments — Joint Ventures was due to accounting for West Belconnen Joint Operation revenue, expenses, assets and liabilities into the Suburban Land Agency’s financial statements in respect of its share rather than being treated as Investment — Joint Venture.

Current Payables 130,489 41,350 89,139 215.57 The higher Current Payables was predominantly due to an increase in capital distributions payable and reclassification and inclusion of the provision for land payment to EPSDD which was included in Other Liabilities in the 2017-18 Budget.

Current Other Provisions 48,777 83,561 (34,784) (41.63) The lower total Current Other Provisions was predominantly due to a reduction in the expected cost for electrical infrastructure relocation in Lawson compared to the 2017-18 Budget.

Current Other Liabilities 79,919 287,518 (207,599) (72.20) The lower Current Other Liabilities was predominantly due to the payment of the balance of 2016-17 dividends related to the former Land Development Agency in the 2017-18 financial year and a lower net operating result.




50

NOTE 35 BUDGETARY REPORTING - CONTINUED


Balance Sheet Line Items - Continued 2017-18 2017-18 (1) Variance Variance $’000 $’000 $’000 %

Non-Current Other Provisions 49,923 69,004 (19,081) (27.65) The lower Non-Current Other Provisions was predominantly due to a reduction in the expected cost for electrical infrastructure relocation in Lawson compared to the 2017-18 Budget.

Deferred Tax Liability 52,705 27,717 24,988 90.15 The higher Deferred Tax Liability was due to a higher than anticipated amount of national tax equivalents payable in future periods relating to taxable temporary difference between the carrying amount of an asset or liability in the balance sheet and its tax base.

Statement of Changes in Equity These line items are covered in the other financial statements.




51



Cash Flow Statement Line Items 2017-18 2017-18 (1) Variance Variance $’000 $’000 $’000 %

Land Sales 374,247 585,949 (211,702) (36.13) The lower than budgeted cash from Land Sales was due to delayed settlement of the Red Hill Precinct ARI sale and delayed Throsby and Denman Prospect 2 settlements.

Development Costs 91,319 171,884 (80,565) (46.87) The lower Development Costs mainly relate to Taylor, North Wright, North Coombs, Kingston Foreshore and Hume West due to delays in planning and development activities. Lower than budgeted costs in Lawson and Greenway Southquay due to changes in development activities and lower than expected costs in Throsby also contribute to the lower development costs.

GST Paid to Suppliers and Remitted to the ATO 72,629 38,978 33,651 86.33 The higher than budgeted GST paid and remitted was mainly due to the inclusion of development services undertaken by purchasers of land.

National Tax Equivalents Payments 70,548 103,647 (33,099) (31.93) The lower National Tax Equivalents Payments was due to lower than budgeted instalment payments resulting from lower land sales.

Proceeds from Sale/Maturity of Investments 350 12,868 (12,518) (97.28) The lower than budgeted Proceeds from Sale/Maturity of Investment was due to West Belconnen Joint Operation income, expenses, assets and liabilities being accounted for in the Suburban Land Agency's financial statements rather than being accounted for in equity, therefore there were no proceeds received from the sale of investments.

Purchase of Property, Plant and Equipment 7,025 20,000 (12,975) (64.88) The lower cash payment for the Purchase of Property, Plant and Equipment was predominantly due to lower than expected rural land purchases.

Payment of Dividend 194,199 151,065 43,134 28.55 The higher than budgeted Payment of Dividend was predominantly due to the higher payment of the 2016-17 balance of dividends owing from the former LDA.


107



51



Cash Flow Statement Line Items 2017-18 2017-18 (1) Variance Variance $’000 $’000 $’000 %

Land Sales 374,247 585,949 (211,702) (36.13) The lower than budgeted cash from Land Sales was due to delayed settlement of the Red Hill Precinct ARI sale and delayed Throsby and Denman Prospect 2 settlements.

Development Costs 91,319 171,884 (80,565) (46.87) The lower Development Costs mainly relate to Taylor, North Wright, North Coombs, Kingston Foreshore and Hume West due to delays in planning and development activities. Lower than budgeted costs in Lawson and Greenway Southquay due to changes in development activities and lower than expected costs in Throsby also contribute to the lower development costs.

GST Paid to Suppliers and Remitted to the ATO 72,629 38,978 33,651 86.33 The higher than budgeted GST paid and remitted was mainly due to the inclusion of development services undertaken by purchasers of land.

National Tax Equivalents Payments 70,548 103,647 (33,099) (31.93) The lower National Tax Equivalents Payments was due to lower than budgeted instalment payments resulting from lower land sales.

Proceeds from Sale/Maturity of Investments 350 12,868 (12,518) (97.28) The lower than budgeted Proceeds from Sale/Maturity of Investment was due to West Belconnen Joint Operation income, expenses, assets and liabilities being accounted for in the Suburban Land Agency's financial statements rather than being accounted for in equity, therefore there were no proceeds received from the sale of investments.

Purchase of Property, Plant and Equipment 7,025 20,000 (12,975) (64.88) The lower cash payment for the Purchase of Property, Plant and Equipment was predominantly due to lower than expected rural land purchases.

Payment of Dividend 194,199 151,065 43,134 28.55 The higher than budgeted Payment of Dividend was predominantly due to the higher payment of the 2016-17 balance of dividends owing from the former LDA.


Suburban Land 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 2018

52

APPENDIX A - BASIS OF PREPARATION OF THE FINANCIAL STATEMENTS

LEGISLATIVE REQUIREMENT

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

(a) a Statement of Comprehensive Income for the reporting period

(b) a Balance Sheet at the end of the reporting period

(c) a Statement of Changes in Equity for the reporting period

(d) a Cash Flow Statement for the reporting period

(e) the significant accounting policies adopted for the reporting period

(f) other statements as necessary to fairly reflect the financial operations of the Suburban Land Agency duringthe 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 Financial Management Act 1996. Accordingly, these financial statements have been prepared in accordance with:

(i) Australian Accounting Standards

(ii) International Financial Reporting Standards

(iii) ACT Accounting and Disclosure Policies

ACCRUAL ACCOUNTING

The financial statements have been prepared using the accrual basis of accounting. The financial statements are prepared according to the historical cost convention, except for property, plant and equipment which are valued at fair value in accordance with the valuation policies applicable to the Suburban Land Agency 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 Suburban Land Agency's functional currency.

INDIVIDUAL REPORTING ENTITY

The Suburban Land Agency is an individual reporting entity.

REPORTING PERIOD

These financial statements state the financial performance, changes in equity and cash flows of the Suburban Land Agency for the year ended 30 June 2018 together with the financial position of the Suburban Land Agency as at 30 June 2018.




APPENDIX A - BASIS OF PREPARATION OF THE FINANCIAL STATEMENTS - CONTINUED

COMPARATIVES FIGURES

Budget Figures

The Financial Management Act 1996 requires the financial statements to facilitate a comparison with the Statement of Intent. The budget numbers are as per the 2017-18 Statement of Intent.

Prior Year Comparatives

The Suburban Land Agency was established on 1 July 2017 and 2017-18 is its first financial reporting period. There are no prior year comparatives available to be disclosed, and accordingly, the prior year comparatives columns are not included in the notes to the financial statements.

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.

Use of “#” in the Variance % column of Note 34: Budgetary Reporting represents a variance that is greater than 999 per cent or less than -999 per cent.

GOING CONCERN

As at 30 June 2018, the Suburban Land Agency’s current liabilities ($290.944m) exceed its current assets ($267.792m) by $23.152m. However it is not considered a liquidity risk as $64.211m of the total current liabilities are dividend payable to the Government. The City Renewal Authority and Suburban Land Agency (Suburban Land Agency Payment of Funds to Territory) Direction 2018 Notifiable Instrument NI2018-224 allows the Treasurer to approve alternative timing for dividend payments.

The 2017-18 financial statements have been prepared on a going concern basis as the ongoing functions, activities and funding of the Suburban Land Agency are set out in the 2018-19 Statement of Intent.

10953



APPENDIX A - BASIS OF PREPARATION OF THE FINANCIAL STATEMENTS - CONTINUED

COMPARATIVES FIGURES

Budget Figures

The Financial Management Act 1996 requires the financial statements to facilitate a comparison with the Statement of Intent. The budget numbers are as per the 2017-18 Statement of Intent.

Prior Year Comparatives

The Suburban Land Agency was established on 1 July 2017 and 2017-18 is its first financial reporting period. There are no prior year comparatives available to be disclosed, and accordingly, the prior year comparatives columns are not included in the notes to the financial statements.

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.

Use of “#” in the Variance % column of Note 34: Budgetary Reporting represents a variance that is greater than 999 per cent or less than -999 per cent.

GOING CONCERN

As at 30 June 2018, the Suburban Land Agency’s current liabilities ($290.944m) exceed its current assets ($267.792m) by $23.152m. However it is not considered a liquidity risk as $64.211m of the total current liabilities are dividend payable to the Government. The City Renewal Authority and Suburban Land Agency (Suburban Land Agency Payment of Funds to Territory) Direction 2018 Notifiable Instrument NI2018-224 allows the Treasurer to approve alternative timing for dividend payments.

The 2017-18 financial statements have been prepared on a going concern basis as the ongoing functions, activities and funding of the Suburban Land Agency are set out in the 2018-19 Statement of Intent.

Suburban Land Agency APPENDIX B - SIGNIFICANT ACCOUNTING POLICIES Forms Part of Note 2 of the Financial Statements

For the Year Ended 30 June 2018

54

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 REVENUE

Land Revenue is recognised when the significant risks and rewards of ownership of the land are transferred to the purchaser, the Suburban Land Agency retains neither continuing managerial involvement nor effective control over the land sold and the costs incurred in respect to the transaction can be measured reliably. 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 Suburban Land Agency raises an invoice to CMTEDD to facilitate a payment for compensation for foregone land revenue.

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 a 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 6 INTEREST

Interest revenue is recognised using the effective interest method.

NOTE 7 RESOURCES RECEIVED FREE OF CHARGE

Resources Received Free of Charge from ACT Government agencies are recorded as revenue and an expense in the Statement of Comprehensive Income at fair value. The revenue is separately disclosed under Resources Received Free of Charge, with the expense being recorded in the line item to which it relates. 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 Suburban Land Agency free of charge. Suburban Land Agency received services from EPSDD free of charge which have been recorded in the Statement of Comprehensive Income.

The Suburban Land Agency also receives Territory-owned land from other ACT Government entities free of charge, which it prepares for sale on behalf of the Territory.




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APPENDIX B - SIGNIFICANT ACCOUNTING POLICIES – CONTINUED

SIGNIFICANT ACCOUNTING POLICIES – EXPENSES


Employee benefits include:

short-term employee benefits such as wages and salaries, annual leave loading, and applicable on-costs, ifexpected to be settled wholly before 12 months (see Appendix B - Note 21 Employee Benefits if longerthan 12 months) after the end of the annual reporting period in which the employees render the relatedservices

other long-term benefits such as long service leave and annual leave

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.

Employees of the Suburban Land Agency have different superannuation arrangements depending on the type of superannuation scheme available at the time of commencing employment, including both defined benefit and defined contribution superannuation scheme arrangements.

For employees who are members of the defined benefit Commonwealth Superannuation Scheme (CSS) and Public Sector Superannuation Scheme (PSS) the Suburban Land Agency made employer superannuation contribution payments to the Territory Banking Account at a rate determined by CMTEDD. The Suburban Land Agency also made productivity superannuation contribution payments on behalf of these employees to the Commonwealth Superannuation Corporation, which is responsible for administration of the schemes.

For employees who were members of defined contribution superannuation schemes (the Public Sector Superannuation Scheme Accumulation Plan and schemes of employee choice) the Suburban Land Agency made employer superannuation contribution payments directly to the employees’ relevant superannuation fund.

All defined benefit employer superannuation contributions are recognised as expenses on the same basis as the employer superannuation contributions made to defined contribution schemes. The accruing superannuation liability obligations are expensed as they are incurred and extinguished as they are paid.

Superannuation Liability Recognition

For the Suburban Land Agency employees who were members of the defined benefit CSS or PSS the employer superannuation liabilities for superannuation benefits payable upon retirement are recognised in the financial statements of the Superannuation Provision Account.


Insurance All insurable risks are insured through the ACT Insurance Authority. The excess payable, under this arrangement, varies depending on each class of insurance held.

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SIGNIFICANT ACCOUNTING POLICIES – EXPENSES


Employee benefits include:

short-term employee benefits such as wages and salaries, annual leave loading, and applicable on-costs, ifexpected to be settled wholly before 12 months (see Appendix B - Note 21 Employee Benefits if longerthan 12 months) after the end of the annual reporting period in which the employees render the relatedservices

other long-term benefits such as long service leave and annual leave

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.

Employees of the Suburban Land Agency have different superannuation arrangements depending on the type of superannuation scheme available at the time of commencing employment, including both defined benefit and defined contribution superannuation scheme arrangements.

For employees who are members of the defined benefit Commonwealth Superannuation Scheme (CSS) and Public Sector Superannuation Scheme (PSS) the Suburban Land Agency made employer superannuation contribution payments to the Territory Banking Account at a rate determined by CMTEDD. The Suburban Land Agency also made productivity superannuation contribution payments on behalf of these employees to the Commonwealth Superannuation Corporation, which is responsible for administration of the schemes.

For employees who were members of defined contribution superannuation schemes (the Public Sector Superannuation Scheme Accumulation Plan and schemes of employee choice) the Suburban Land Agency made employer superannuation contribution payments directly to the employees’ relevant superannuation fund.

All defined benefit employer superannuation contributions are recognised as expenses on the same basis as the employer superannuation contributions made to defined contribution schemes. The accruing superannuation liability obligations are expensed as they are incurred and extinguished as they are paid.

Superannuation Liability Recognition

For the Suburban Land Agency employees who were members of the defined benefit CSS or PSS the employer superannuation liabilities for superannuation benefits payable upon retirement are recognised in the financial statements of the Superannuation Provision Account.


Insurance All insurable risks are insured through the ACT Insurance Authority. The excess payable, under this arrangement, varies depending on each class of insurance held.



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SIGNIFICANT ACCOUNTING POLICIES – EXPENSES - CONTINUED

Operating Leases

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 project management services, financial management and accounting services and advice, legal expenses (excluding conveyancing), valuations and other professional services.


Land Transfers and Acquisitions

Unleased Territory land is transferred at market value and the Suburban Land Agency makes payment to EPSDD when the land is sold to third parties. The Suburban Land Agency also purchases land from external parties at market value when directed by the ACT Government to do so. It also receives land for no cost through transfers from other ACT Government entities.

Capitalised Development Costs

Capitalised Development Costs represent costs or services that are directly attributable to the development of the land. These transactions are generally direct labour costs and purchases of goods or services that are directly inputted into producing land available for sale. The capitalised development cost is expensed in the Statement of Comprehensive Income when the land is settled.

NOTE 11 WRITE-DOWN OF INVENTORY

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 a Write-Down of Inventory. This included the write down of land following the transfer from other ACT Government agencies 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 benefits.


Land Holding Cost Equivalents and Stamp Duty Consistent with the ACT Government’s policy on competitive neutrality, the Suburban Land Agency applies similar costing and pricing principles, taxation, debt guarantee requirements and regulations as a fully corporatised business. Refer to Note 1b: Public Trading Enterprise for further details. The Suburban Land Agency pays land holding cost equivalents for notional interest on land purchased from the Territory to the EPSDD. It also pays stamp duty equivalents to CMTEDD on land purchased from the Territory.




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NOTE 14 NATIONAL TAX EQUIVALENTS

Taxation The Suburban Land Agency is registered with the NTER, and is 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 equivalents 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. The Deferred Tax Liabilities was de-recognised from the Balance Sheet when the former LDA ceased operating as a separate entity as at 30 June 2017. As per the Financial Management (Land Development Agency Transfer to Suburban Land Agency) Declaration 2017, the majority of the former LDA’s liabilities and assets were transferred to the Suburban Land Agency. The Suburban Land Agency assumed the former LDA’s tax attributes and recognised the corresponding deferred tax liability. The deferred tax liability is re-recognised in the equity account (refer to the Statement of Changes in Equity).

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.

SIGNIFICANT ACCOUNTING POLICIES – ASSETS

ASSETS - CURRENT AND NON-CURRENT

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.

Significant Accounting Judgements and Estimates - Fair Value of Assets

The Suburban Land Agency has made an estimate 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.

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NOTE 14 NATIONAL TAX EQUIVALENTS

Taxation The Suburban Land Agency is registered with the NTER, and is 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 equivalents 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. The Deferred Tax Liabilities was de-recognised from the Balance Sheet when the former LDA ceased operating as a separate entity as at 30 June 2017. As per the Financial Management (Land Development Agency Transfer to Suburban Land Agency) Declaration 2017, the majority of the former LDA’s liabilities and assets were transferred to the Suburban Land Agency. The Suburban Land Agency assumed the former LDA’s tax attributes and recognised the corresponding deferred tax liability. The deferred tax liability is re-recognised in the equity account (refer to the Statement of Changes in Equity).

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.

SIGNIFICANT ACCOUNTING POLICIES – ASSETS

ASSETS - CURRENT AND NON-CURRENT

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.

Significant Accounting Judgements and Estimates - Fair Value of Assets

The Suburban Land Agency has made an estimate 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.

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SIGNIFICANT ACCOUNTING POLICIES – ASSETS - CONTINUED

NOTE 16 RECEIVABLES

Receivables include the Right to Receive Infrastructure, Trade Receivables, Deferred Receivables, Accrued Revenue and Goods and Services Tax Refunds Due.

Right to Receive Infrastructure

The sale of land by the Suburban Land Agency can involve 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 Suburban Land Agency by the purchaser, the infrastructure works are transferred to TCCS and Icon Water. At contract settlement, the Suburban Land Agency recognises 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.

Deferred Receivable – Contribution to the West Belconnen Joint Operation

The former LDA and the Suburban Land Agency provided an unsecured loan to the West Belconnen Joint Operation in 2016-17 and 2017-18 financial years respectively to fund project activities under the joint operation agreement. In June 2018, the Suburban Land Agency provided a contribution to the joint operation to repay the unsecured loan in full (including accumulated interest). The Suburban Land Agency has a priority right to the distributions from the joint operation where and by the amount that creates an imbalance in the joint operation equity account. If the contributed amount exceeds the Suburban Land Agency’s share of the assets and liabilities of the joint operation, the remaining amount is recognised as a net Deferred Receivable — Contribution to West Belconnen Joint Operation. This amount is further assessed for recoverability on an annual basis. As at 30 June 2018, the Net Deferred Receivable — Contribution to the West Belconnen Joint Operation balance was $13.559 million (see Note 16 on page 79).




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Impairment Loss Receivables

The allowance for impairment losses represents the amount of trade and other receivables the Suburban Land Agency estimates will not be collected. The allowance for impairment losses is based on objective evidence and a review of overdue balances. The Suburban Land Agency 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(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 Suburban Land Agency ceases action to collect the debt as it considers that it will cost more to recover the debt than the debt is worth.

NOTE 17 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 EPSDD and the land becomes available for sale. The cost of Developed Land includes land acquisition and land development costs. Land transferred from EPSDD is recognised in Inventories — Land Being Developed — Work in Progress when custodianship of land is received by the Suburban Land Agency.

Net realisable value is determined using the estimated sales proceeds less costs incurred in marketing and selling activities.

Land Acquisitions

Unleased Territory land is transferred at market value and the Suburban Land Agency makes payment to EPSDD when the land is sold to third parties. The Suburban Land Agency also purchases land from external parties at market value as directed by Government to do so. It also receives land for no cost through transfers from other ACT Government entities.


Costs of development are costs that directly relate to preparing sites for sale as serviced land. These include expenditure associated with the implementation of estate planning, demolition, 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.

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Impairment Loss Receivables

The allowance for impairment losses represents the amount of trade and other receivables the Suburban Land Agency estimates will not be collected. The allowance for impairment losses is based on objective evidence and a review of overdue balances. The Suburban Land Agency 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(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 Suburban Land Agency ceases action to collect the debt as it considers that it will cost more to recover the debt than the debt is worth.

NOTE 17 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 EPSDD and the land becomes available for sale. The cost of Developed Land includes land acquisition and land development costs. Land transferred from EPSDD is recognised in Inventories — Land Being Developed — Work in Progress when custodianship of land is received by the Suburban Land Agency.

Net realisable value is determined using the estimated sales proceeds less costs incurred in marketing and selling activities.

Land Acquisitions

Unleased Territory land is transferred at market value and the Suburban Land Agency makes payment to EPSDD when the land is sold to third parties. The Suburban Land Agency also purchases land from external parties at market value as directed by Government to do so. It also receives land for no cost through transfers from other ACT Government entities.


Costs of development are costs that directly relate to preparing sites for sale as serviced land. These include expenditure associated with the implementation of estate planning, demolition, 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.



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NOTE 18 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 Suburban Land Agency capitalises 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 are recorded as land under Property, Plant and Equipment as disclosed in Note 18.

Measurement of Property, Plant and Equipment after Initial Recognition Land and building are revalued every three years. However, 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. Any accumulated depreciation relating to buildings at the date of revaluation is written back against the gross carrying amount of the asset and the net amount is restated to the revaluated amount of the asset.


An intangible asset is an identifiable non-monetary asset without physical substance. The Suburban Land Agency’s intangible assets are composed of externally acquired software for internal use. Intangible assets acquired separately are measured on initial recognition at cost.

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 tothe Suburban Land Agency

(ii) the cost of the software can be measured reliably

(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.




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Impairment of Assets The Suburban Land Agency assesses, at each reporting date, whether there is 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. 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.

SIGNIFICANT ACCOUNTING POLICIES – LIABILITIES

Liabilities - Current and Non-Current

Liabilities are classified as current when they are due to be settled within 12 months after the reporting date or the Suburban Land Agency 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.

NOTE 20 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 Trade Payables, Accrued Expenses, Payable to EPSDD for Land Sold or Yet to be Developed and Other Payables.


Employee Benefits are listed in Appendix B - Note 8 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.

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Impairment of Assets The Suburban Land Agency assesses, at each reporting date, whether there is 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. 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.

SIGNIFICANT ACCOUNTING POLICIES – LIABILITIES

Liabilities - Current and Non-Current

Liabilities are classified as current when they are due to be settled within 12 months after the reporting date or the Suburban Land Agency 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.

NOTE 20 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 Trade Payables, Accrued Expenses, Payable to EPSDD for Land Sold or Yet to be Developed and Other Payables.


Employee Benefits are listed in Appendix B - Note 8 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.



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SIGNIFICANT ACCOUNTING POLICIES – LIABILITIES - CONTINUED

Annual and Long Service Leave

Annual and Long Service Leave, including applicable on-costs that are not expected to be wholly settled before 12 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 2017-18 the rate used to estimate the present value of future:

annual leave payments was 99.1 per cent

payments for long service leave was 90.5 per cent

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 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 Suburban Land Agency has an unconditional right to defer the settlement of the liability until the employee has completed the requisite years of service.

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.




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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 is made of the amount of work still to be completed by the Suburban Land Agency. This estimate takes the form of a ‘project completion percentage’ and is 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 Suburban Land Agency can involve the receipt of cash, as well as the value of infrastructure assets (such as roads, services and landscaping) required to be constructed by the purchaser as part of the sale conditions. Upon completion, the infrastructure works are transferred to TCCS and Icon Water. At contract settlement, the Suburban Land Agency recognises the value of the future infrastructure to be transferred to TCCS and Icon Water as a liability.


The Suburban Land Agency receives deposits at the time of exchange of land sales contract and records these as Revenue Received in Advance.

The City Renewal Authority and Suburban Land Agency (Suburban Land Agency Payment of Funds to Territory) Direction 2018 Notifiable Instrument NI2018-224 directs the Suburban Land Agency to pay a dividend of 100 per cent of its net profits after tax. Payments of the dividend are made in two instalments each year: an interim payment of 80 per cent of estimated net profits is payable by 30 June of each financial year, with a final balance of actual net profits by 31 October of the following financial year.

The Direction also provides the Government with flexibility to approve a different dividend payment ratio and/or flexibility of payment timing, subject to the Treasurer’s approval of a written request from the Suburban Land Agency Board.


Deferred Tax Liabilities are the amounts of national tax equivalents payable in future periods relating to taxable temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base (see also Note 14 of Appendix B).

SIGNIFICANT ACCOUNTING POLICIES – EQUITY

Assets Contributed by ACT Government

Contributions made by the ACT Government through its role as owner of the Suburban Land Agency are treated as contributions of equity. Property transferred to the Suburban Land Agency from other agencies identified as part of the ARI has been treated as a contribution of equity.

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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 is made of the amount of work still to be completed by the Suburban Land Agency. This estimate takes the form of a ‘project completion percentage’ and is 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 Suburban Land Agency can involve the receipt of cash, as well as the value of infrastructure assets (such as roads, services and landscaping) required to be constructed by the purchaser as part of the sale conditions. Upon completion, the infrastructure works are transferred to TCCS and Icon Water. At contract settlement, the Suburban Land Agency recognises the value of the future infrastructure to be transferred to TCCS and Icon Water as a liability.


The Suburban Land Agency receives deposits at the time of exchange of land sales contract and records these as Revenue Received in Advance.

The City Renewal Authority and Suburban Land Agency (Suburban Land Agency Payment of Funds to Territory) Direction 2018 Notifiable Instrument NI2018-224 directs the Suburban Land Agency to pay a dividend of 100 per cent of its net profits after tax. Payments of the dividend are made in two instalments each year: an interim payment of 80 per cent of estimated net profits is payable by 30 June of each financial year, with a final balance of actual net profits by 31 October of the following financial year.

The Direction also provides the Government with flexibility to approve a different dividend payment ratio and/or flexibility of payment timing, subject to the Treasurer’s approval of a written request from the Suburban Land Agency Board.


Deferred Tax Liabilities are the amounts of national tax equivalents payable in future periods relating to taxable temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base (see also Note 14 of Appendix B).

SIGNIFICANT ACCOUNTING POLICIES – EQUITY

Assets Contributed by ACT Government

Contributions made by the ACT Government through its role as owner of the Suburban Land Agency are treated as contributions of equity. Property transferred to the Suburban Land Agency from other agencies identified as part of the ARI has been treated as a contribution of equity.

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SIGNIFICANT ACCOUNTING POLICIES – OTHER NOTES


The Suburban Land Agency is part of a Joint Arrangement with Riverview Developments (ACT) Pty Ltd, Reid & Stevens Pty Limited and Corkhill Bros Pty Limited to develop land to the west of Belconnen.

The West Belconnen Joint Operation revenue, expenses, assets and liabilities were consolidated into the Suburban Land Agency’s accounts in respect of its share in the joint operation. The Suburban Land Agency holds 60 per cent interest in the joint operation on behalf of the Australian Capital Territory.

The former LDA and the Suburban Land Agency provided an unsecured loan to the West Belconnen Joint Operation in 2016-17 and 2017-18 financial years respectively to fund project activities under the joint operation agreement. In June 2018, the Suburban Land Agency provided a contribution to the joint operation to repay the unsecured loan in full (including accumulated interest). The Suburban Land Agency has a priority right to the distributions from the joint operation where and by the amount that creates an imbalance in the joint operation equity account. If the contributed amount exceeds the Suburban Land Agency’s share of the assets and liabilities of the joint operation, the remaining amount is recognised as a net Deferred Receivable — Contribution to West Belconnen Joint Operation. This amount is further assessed for recoverability on an annual basis. As at 30 June 2018, the Net Deferred Receivable — Contribution to the West Belconnen Joint Operation balance was $13.559 million (see Note 16).

NOTE 35 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 10per cent of the relevant associated category (Income, Expenses and Equity totals) or more than 10 per centof the sub-element (e.g. Current Liabilities and Receipts from Operating Activities totals) of the financialstatements.

The variances (original budget to actual) are greater than plus (+) or minus (-) 10 per cent of the budget forthe financial statement line item.


Suburban Land Agency APPENDIX C - IMPACT OF ACCOUNTING STANDARDS

ISSUED BUT YET TO BE APPLIED Forms Part of Note 2 of the Financial Statements


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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. This standards and interpretations are applicable to future reporting periods. The Suburban Land Agency does not intend to adopt these standards and interpretations early. Where applicable, these Australian Accounting Standards will be adopted from their application date.

AASB 9 Financial Instruments (December 2014) (application date: annual reporting periods beginning on orafter 1 January 2018).

This standard supersedes ASSB 139 Financial Instruments: Recognition and Measurement. The main impact of AASB 9 is that it will change the classification, measurement and disclosures of the Suburban Land Agency’s financial assets. AASB 9 also includes a new expected credit loss model for determining impairment losses for financial assets.

No material financial impact on the Suburban Land Agency is expected.

AASB 15 Revenue from Contracts with Customers (application date: annual reporting periods beginning onor after 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. The Suburban Land Agency is currently assessing the impact of this standard and has identified there could be a potential impact on the timing of the recognition of revenue.

At this stage the Suburban Land Agency is not able to estimate the impact of this new standard on its financial statements and will make a more detailed assessment of the impact over the next 12 months.

AASB 16 Leases (application date: annual reporting periods beginning on or after 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. This will result in the Suburban Land Agency recognising a number of its operating leases as assets alongside the associated liability, rather than accounting for these as operating lease expenditure. The right-of-use asset will initially be recognised at cost and will give rise to a depreciation expense. The lease liability will initially be recognised as the present value of the lease payments during the term of the lease. Lease payments made will reduce this liability over time and also result in an interest expense.

The Suburban Land Agency will make a detailed assessment of the impact over the next 12 months.

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: annual reportingperiods beginning on or after 1 January 2018).

This standard makes consequential amendments to a number of standards and interpretations as a result of the issuing of AASB 15. The Suburban Land Agency is assessing the potential impact of AASB 15.

AASB 2015-8 Amendments to Australian Accounting Standards – Effective date of AASB 15 (application date:annual reporting periods beginning on or after 1 January 2018).

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65

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. This standards and interpretations are applicable to future reporting periods. The Suburban Land Agency does not intend to adopt these standards and interpretations early. Where applicable, these Australian Accounting Standards will be adopted from their application date.

AASB 9 Financial Instruments (December 2014) (application date: annual reporting periods beginning on orafter 1 January 2018).

This standard supersedes ASSB 139 Financial Instruments: Recognition and Measurement. The main impact of AASB 9 is that it will change the classification, measurement and disclosures of the Suburban Land Agency’s financial assets. AASB 9 also includes a new expected credit loss model for determining impairment losses for financial assets.

No material financial impact on the Suburban Land Agency is expected.

AASB 15 Revenue from Contracts with Customers (application date: annual reporting periods beginning onor after 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. The Suburban Land Agency is currently assessing the impact of this standard and has identified there could be a potential impact on the timing of the recognition of revenue.

At this stage the Suburban Land Agency is not able to estimate the impact of this new standard on its financial statements and will make a more detailed assessment of the impact over the next 12 months.

AASB 16 Leases (application date: annual reporting periods beginning on or after 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. This will result in the Suburban Land Agency recognising a number of its operating leases as assets alongside the associated liability, rather than accounting for these as operating lease expenditure. The right-of-use asset will initially be recognised at cost and will give rise to a depreciation expense. The lease liability will initially be recognised as the present value of the lease payments during the term of the lease. Lease payments made will reduce this liability over time and also result in an interest expense.

The Suburban Land Agency will make a detailed assessment of the impact over the next 12 months.

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: annual reportingperiods beginning on or after 1 January 2018).

This standard makes consequential amendments to a number of standards and interpretations as a result of the issuing of AASB 15. The Suburban Land Agency is assessing the potential impact of AASB 15.

AASB 2015-8 Amendments to Australian Accounting Standards – Effective date of AASB 15 (application date:annual reporting periods beginning on or after 1 January 2018).




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APPENDIX C - IMPACT OF ACCOUNTING STANDARDS ISSUED BUT YET TO BE APPLIED - CONTINUED

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. At this stage the Suburban Land Agency is not able to estimate the impact of AASB 15 on its financial statements. The Suburban Land Agency will make a more detailed assessment of the impact over the next 12 months.

AASB 2016-3 Amendments to Australian Accounting Standards- Clarifications to AASB 15 (application date:annual reporting periods beginning on or after 1 January 2018).

This standard clarifies the existing requirements of AASB 15. The Suburban Land Agency is not able to estimate the impact on its financial statements. The Suburban Land Agency will make a more detailed assessment of the impact over the next 12 months.

AASB 2017-5 Amendments to Australian Accounting Standards — Effective Date of Amendments to AASB10 and AASB 128 and editorial Corrections (application date: annual reporting periods beginning on or after1 January 2018).

This standard defers the mandatory effective date (application date) of amendments to AASB 10 Consolidated Financial Statements and AASB 128 Investments in Associates and Joint Ventures that were originally made in AASB 2014-10 Amendments to Australian Accounting Standards — Sale or Contribution of Assets between and Investor and its Associate or Joint Venture so that the amendments are required to be applied for annual reporting periods beginning on or after 1 January 2022 instead of 1 January 2018. There is not material impact on the Suburban Land Agency.


Suburban Land Agency APPENDIX D – CHANGE IN ACCOUNTING ESTIMATES


67

APPENDIX D – CHANGE IN ACCOUNTING ESTIMATES

Bi-annual review of project costing

On a bi-annual basis, the Suburban Land Agency undertakes a detailed review of its estimated project costs to determine remaining funding requirements. During this process, estimates of project contingency costs are also reviewed. Any adjustments as a result of the bi-annual review has an impact on the value of inventory and cost of land sold. The overall impact of the 2017-18 adjustment was a decrease to Cost of Land Sold and increase to Inventory by $39.978 million with a corresponding increase the Operating Surplus before National Tax Equivalents by $39.978 million.

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Suburban Land Agency APPENDIX D – CHANGE IN ACCOUNTING ESTIMATES


67

APPENDIX D – CHANGE IN ACCOUNTING ESTIMATES

Bi-annual review of project costing

On a bi-annual basis, the Suburban Land Agency undertakes a detailed review of its estimated project costs to determine remaining funding requirements. During this process, estimates of project contingency costs are also reviewed. Any adjustments as a result of the bi-annual review has an impact on the value of inventory and cost of land sold. The overall impact of the 2017-18 adjustment was a decrease to Cost of Land Sold and increase to Inventory by $39.978 million with a corresponding increase the Operating Surplus before National Tax Equivalents by $39.978 million.

West Belconnen Joint VentureABN: 72 619 778 053

Financial Statements



Financial Statements West Belconnen Joint Venture

CONTENTS

Statement of Comprehensive Income 1

Statement of Financial Position 2

Statement of Cash Flows 3

Statement of Changes in Equity 4

Notes to the Financial Statements 5

Declaration by the Joint Venture Partners 20

Independent Auditor's Report 21

125

INDEPENDENT AUDIT REPORT

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 the year ended 30 June 2018. 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 the financial statements so that they are free from material misstatements, whether due to error or fraud; and

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.




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 Joint Venture 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 Joint Venture;

adequacy of controls implemented by the Joint Venture; or

integrity of the 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.

Tim Larnach Acting Director, Financial Audits 19 September 2018

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Page 1

STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2018

Note 30 June 2018

For the Period from 21 November 2016

to 30 June 2017

No.

$ $ Revenue - - Cost of Sales - - GROSS PROFIT - - Other revenue 3 16,778 3,453 TOTAL REVENUE 16,778 3,453 Administrative expenses 4 2,428,048 2,943,944 Finance costs 5 1,172,326 410,872 Marketing and communication costs 360,174 2,000,733 Selling costs 209,811 189,819 TOTAL COSTS 4,170,359 5,545,368 NET (LOSS) (4,153,581) (5,541,915) OTHER COMPREHENSIVE INCOME AVAILABLE FOR DISTRIBUTION TO JOINT VENTURE PARTNERS

Items that will not be reclassified subsequently to profit or loss

Increase in Asset Revaluation Surplus 14 716,567 - TOTAL OTHER COMPREHENSIVE INCOME 716,567 - TOTAL COMPREHENSIVE INCOME (LOSS) AVAILABLE FOR DISTRIBUTION TO JOINT VENTURE PARTNERS

(3,437,014)

(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 2018 Note 30 June 2018 30 June 2017 ASSETS No. $ $ CURRENT ASSETS Cash and cash equivalents 6 6,719,076 6,912,356 Trade receivables and other assets 7 994,109 58,345 Inventories 8 4,027,941 - Current tax assets 9 299,844 893,207 TOTAL CURRENT ASSETS 12,040,970 7,863,908 NON-CURRENT ASSETS Inventories 8 15,561,735 9,939,041 Property, plant and equipment 10 4,894,494 4,236,934 TOTAL NON-CURRENT ASSETS 20,456,229 14,175,975 TOTAL ASSETS 32,497,199 22,039,883 LIABILITIES CURRENT LIABILITIES Trade creditors and other payables 11 2,774,136 1,366,102 Other liabilities 12 1,876,198 - TOTAL CURRENT LIABILITIES 4,650,334 1,366,102 NON-CURRENT LIABILITIES Loans and borrowings 13 3,475 23,436,516 Other liabilities 12 1,924,021 1,779,180 TOTAL NON-CURRENT LIABILITIES 1,927,496 25,215,696 TOTAL LIABILITIES 6,577,830 26,581,798 NET ASSETS/(LIABILITIES) 25,919,369 (4,541,915) JOINT VENTURE EQUITY

Initial Equity Contributions and Accumulated Funds Suburban Land Agency (5,217,298) (2,725,149) Riverview Development (ACT) Pty Ltd (3,478,198) (1,816,766)

Asset Revaluation Surplus 14 716,567 -

Equity Contributions Other than Initial Equity Contributions

Suburban Land Agency 33,898,298 - TOTAL EQUITY 25,919,369 (4,541,915)

The Statement of Financial Position should be read in conjunction with the notes to the financial statements.

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STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2018

Note

30 June 2018 For the Period from 21

November 2016 to 30 June 2017

No. $ $ CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers 1,097,445 1,728,691 Interest received 3,102 147 Payments to suppliers and employees (11,637,635) (14,955,405) Net cash (outflows) from operating activities 19(b) (10,537,088) (13,226,567) CASH FLOWS FROM INVESTING ACTIVITIES Payments for property, plant and equipment (121,448) (4,297,593) Net cash (outflows) from investing activities (121,448) (4,297,593) CASH FLOWS FROM FINANCING ACTIVITIES Borrowings (23,433,042) 23,436,516 Contributions 33,898,298 1,000,000 Net cash inflows from financing activities 10,465,256 24,436,516 Net (decrease)/increase in cash and cash equivalents (193,280) 6,912,356 Cash and cash equivalents at the beginning of the period 6,912,356 - Cash and cash equivalents at the end of the period 19(a) 6,719,076 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 YEAR ENDED 30 JUNE 2018

Initial Equity

Contributions and

Accumulated Funds

Asset Revaluation

Surplus

Equity Contributions

Other than Initial Equity

Contributions

Total Equity

$ $ $ $ Balance at 1 July 2017 (4,541,915) - - (4,541,915) Comprehensive Income Operating Loss

Increase in Asset Revaluation Surplus

(4,153,581)

-

-

716,567

-

-

(4,153,581)

716,567 Total Comprehensive (Loss)/Income (4,153,581) 716,567 - (3,437,014) Transactions Involving Joint Venture Participants Affecting Total Equity

Contributions - - 33,898,298 33,898,298 Total Transactions Involving Joint Venture Participants Affecting Total Equity

-

-

33,898,298

33,898,298 Balance at 30 June 2018 (8,695,496) 716,567 33,898,298 25,919,369

The Statement of Changes in Equity should be read in conjunction with the notes to the financial statements.

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018

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 began civil works for the first stage in April 2018 with settlement of the first stage expected in April 2019.

The financial statements are prepared on the historical cost basis. The financial statements are presented in Australian dollars and cover the period from the 1 July 2017 to 30 June 2018.

There are reasonable grounds to believe that the Joint Venture will be able to pay its debts as and when they fall due and payable as adequate provision has been made to ensure that debt and equity is available to meet the Joint Ventures commitments.

(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

This is the first full year of operations. The period covered is for the period from 1 July 2017 to 30 June 2018. The comparative figures provided are for the period 21 November 2016 to 30 June 2017.

(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 2018 ("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.



Page 6

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018 (CONTINUED)

NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

(e) Revenue recognition (continued)

The following specific recognition criteria must also be met before revenue is recognised:

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 initially carried at cost less, where applicable, accumulated depreciation and impairment losses.

(i) Land and Buildings

Land and buildings are initially shown at cost less subsequent depreciation for buildings. After initial recognition the Land and buildings are measured at fair value. An independent valuation for its land and buildings will be carried out every three years. The latest valuation was at 30 June 2018. 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.

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NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

(i) Property, Plant and Equipment (Continued)

(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.

(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 period are as follows:

Class of Property, Plant and Equipment Useful Life Buildings 80 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 creditors and other payables

Trade creditors 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.



Page 8


NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (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.

(m) Equity contributions other than initial equity contributions

The former Land Development Agency and the Suburban Land Agency provided an unsecured loan to the Joint Venture in 2016-17 and 2017-18 financial years respectively to fund project activities under the Joint Venture Agreement. In June 2018, the Suburban Land Agency provided an equity contribution other than the initial equity contribution to pay out the unsecured loan in full (including accumulated interest). Equity contributions other than initial equity contributions are interest bearing and will have repayment priority, at the discretion of the Joint Venture Board in accordance with the Joint Venture Agreement above the initial equity contributions.

(n) Income tax

The Joint Venture is a non-taxable entity. The Joint Venture for taxation purposes is considered a partnership. Partnerships are not considered to be a separate tax entity under Australian tax law, and therefore no income tax is payable by the Partnership itself.

(o) 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.

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018 (CONTINUED) NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (p) 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 2018 the balance of the compliance bond monies was $nil (2017: $nil).

NOTE 3: REVENUE FROM OPERATIONS 2018 2017

$ $ Revenue from continuing operations Interest income 3,102 263 Net rental income 13,676 3,190

Total Revenue from continuing operations 16,778 3,453

NOTE 4: ADMINISTRATIVE EXPENSES Note No.

2018

2017

$ $ Loss from continuing operations includes the following specific expenses:

Administrative expenses Community development costs 165,701 92,232 Depreciation and amortisation 10 180,455 41,019 External audit fee 20,000 15,000 Loss on disposal of asset - 19,640 Training and employment initiatives 37,999 115,119 Administration and operational expenses 2,023,893 2,660,934

Total administrative expenses 2,428,048 2,943,944 Audit fees are paid to the ACT Audit Office for the financial statement audit. No other services were provided by the ACT Audit Office.



Page 10

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018 (CONTINUED) NOTE 5: FINANCE COSTS 2018 2017 $ $ Finance Costs

Bank Fees 302 29 Interest 1,172,024 410,843

Total finance costs 1,172,326 410,872 NOTE 6: CASH AND CASH EQUIVALENTS 2018 2017 $ $ CURRENT Cash at bank and on hand 6,719,076 6,912,356 Total cash and cash equivalents 6,719,076 6,912,356 NOTE 7: TRADE RECEIVABLES AND OTHER ASSETS 2018 2017 $ $ CURRENT Trade debtors 50 30,769 Prepayments 3,043 4,550 Sundry debtors 991,016 23,026 Total trade receivables and other assets 994,109 58,345

A. Impairment of receivables Current trade receivables and sundry debtors 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 or sundry debtor is impaired. These amounts are included in other expense items. The allowance for 30 June 2018 $nil (2017 is $nil). B. Ageing of receivables At 30 June 2018, trade receivables of $50 (2017: $30,769) were within the trading terms of 30 days. 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 15. 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. Trade receivables relate to a number of independent customers for whom there is no recent history of default.

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NOTE 8: INVENTORIES 2018 2017 CURRENT $ $ Work in progress - at cost 4,027,941 - Total current inventory 4,027,941 -

NON-CURRENT Work in progress - at cost 15,561,735 9,939,041 Total non-current inventory 15,561,735 9,939,041 Total inventory 19,589,676 9,939,041

NOTE 9: CURRENT TAX ASSETS 2018 2017 $ $ CURRENT Net GST receivable 299,844 893,207 Total current tax assets 299,844 893,207

NOTE 10: PROPERTY, PLANT AND EQUIPMENT 2018 2017 $ $ LAND AND BUILDINGS At Fair Value 4,600,000 - At cost - 3,977,592 Less accumulated depreciation - (24,860) Total land and buildings 4,600,000 3,952,732 FURNITURE AND FITTINGS At cost 109,906 109,906 Less accumulated depreciation (14,173) (3,183) Total furniture and fittings 95,733 106,723 SOFTWARE At cost 203,399 185,715 Less accumulated depreciation (86,168) (8,236) Total software 117,231 177,479 MOTOR VEHICLES At cost 81,530 - Less accumulated depreciation - - Total Motor Vehicles 81,530 - Total Property, Plant and Equipment 4,894,494 4,236,934



Page 12

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018 (CONTINUED) NOTE 10: PROPERTY, PLANT AND EQUIPMENT (Continued) Valuation of Land and Buildings at Fair Value Knight Frank Canberra performed an independent valuation of Land and Buildings as at 30 June 2018. The basis of the valuation was fair value subject to AASB 116 “Property, Plant and Equipment and AASB 13 “Fair Value Measurement”. The valuation methodology was Depreciated Replacement Cost.

Fair Value Hierarchy The Joint Venture is 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 Joint Venture 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 Joint Venture’s property, plant and equipment at fair value and information about the Fair Value Hierarchy as at 30 June 2018 are as follows: Classification According to Fair Value Hierarchy Level 1 Level 2 Level 3 Total Property, Plant and Equipment at Fair Value Land and Buildings - - 4,600,000 4,600,000 - - 4,600,000 4,600,000

Valuation Techniques, inputs and processes Level 3 Valuation Techniques and Inputs Valuation Technique: The valuation technique used to value land and buildings was the depreciated replacement cost approach. This approach considers the current cost of replacing an asset with modern equivalent asset, less deductions for physical deterioration and all relevant forms of obsolescence and optimisations. Inputs: Actual construction costs and cost information held internally by the valuer referenced to Rawlinsons Construction Handbook 2018. 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 as well as current zoning. The first fair valuation occurred during the year. Reconciliation of Property, Plant and Equipment The following table shows the movement for each class of property, plant and equipment during 2017 - 18: Land and

Buildings Furniture and

Fittings Software Motor Vehicles Total

Carrying amount at 1 July 2017 3,952,732 106,723 177,479 - 4,236,934 Additions at cost 22,233 - 17,685 81,530 121,448 Revaluation Increment 716,567 - - - 716,567 Depreciation (91,532) (10,990) (77,933) - (180,455) Carrying amount at 30 June 2018 4,600,000 95,733 117,231 81,530 4,894,494

139


Page 13

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018 (CONTINUED) NOTE 10: PROPERTY, PLANT AND EQUIPMENT (Continued) Reconciliation of Property, Plant and Equipment The following table shows the movement for each class of property, plant and equipment between 21 November 2016 and 30 June 2017: 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 NOTE 11: TRADE CREDITORS AND OTHER PAYABLES 2018 2017 $ $ CURRENT Trade creditors 658,786 932,568 Accrued charges 2,115,350 433,534 Total trade and other payables 2,774,136 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 liquidity 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. The risk is managed by regular reviews of expected cash flow forecasts and ensuring at least the next two months net expenses are maintained in cash balances and this is managed through the finance facility that is in place.



Page 14


NOTE 12:OTHER LIABILITIES 2018 2017 $ $ CURRENT Revenue received in advance 1,876,198 - Total current other liabilities 1,876,198 - NON-CURRENT Revenue received in advance 1,924,021 1,779,180 Total non-current other liabilities 1,924,021 1,779,180 Total other liabilities 3,800,219 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 2018 2017 $ $ NON-CURRENT INTEREST BEARING LIABILITIES Former Land Development Agency - 23,433,039 Total interest bearing liabilities - 23,433,039 NON-CURRENT NON-INTEREST BEARING LIABILITIES Riverview Developments (ACT) Pty Ltd 3,475 3,477 Total non-interest bearing liabilities 3,475 3,477 Total loans and borrowings 3,475 23,436,516 NOTE 14: ASSET REVALUATION RESERVE 2018 2017 $ $ a. Asset Revaluation Surplus 716,567 - The Asset Revaluation Surplus is used to record the increments and decrements in the value of

property, plant and equipment. b. Balance at the Beginning of the Reporting Period - - Increment in Buildings due to Revaluation 716,567 - Total Increase in the Asset Revaluation Surplus 716,567 -

Balance at the End of the Reporting Period 716,567 -

141


Page 15

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018 (CONTINUED) NOTE 15: FINANCIAL RISK MANAGEMENT The Joint Venture's principal financial instruments comprise receivables, payables, revenue received in advance 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.

(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.

(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 on loans and equity injections. The Joint Venture’s interest rate risk is managed by regular monitoring of expected interest rate changes. Interest rate risk is not considered a significant risk and operational measures have been implemented to manage the risk. Debt and Equity levels 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 A sensitivity analysis of the price risk has not been performed as the Joint Venture is not exposed to price risk.



Page 16

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018 (CONTINUED) NOTE 15: FINANCIAL RISK MANAGEMENT (CONTINUED)

(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 assets and financial liabilities has been tabulated below:

Note Carrying Fair Value Carrying Fair Value No Amount Amount Amount Amount 2018 2018 2017 2017 $ $ $ $ Financial Assets Cash and cash equivalents 6 6,719,076 6,719,076 6,912,356 6,912,356 Trade and other receivables 7

50 50 30,769 30,769

Total Financial Assets 6,719,126 6,719,126 6,943,125 6,943,125 Financial Liabilities Trade creditors and other payables 11 2,774,136 2,774,136 1,366,102 1,366,102 Revenue received in advance 12 3,800,219 3,800,219 1,779,180 1,779,180 Borrowings 13 3,475 3,475 23,436,516 23,436,516 Total Financial Liabilities 6,577,830 6,577,830 26,581,798 26,581,798

30 June 2018 1 year or less 1 - 5

years > 5 years Total

$ $ $ $ Financial liabilities Trade creditors and other payables Revenue received in advance Borrowings

2,774,136 1,876,198

-

-

1,924,021 3,475

- - -

2,774,136 3,800,219

3,475 Net Maturity 4,650,334 1,927,496 - 6,577,830

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

143


Page 17

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018 (CONTINUED) NOTE 15: FINANCIAL RISK MANAGEMENT (CONTINUED) (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.

NOTE 16: 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) Angus Dawson (Suburban Land Agency) appointed 1 July 2017 Thomas Gordon (Suburban Land Agency) David Maxwell (Riverview Developments (ACT) Pty Limited) Thomas Corkhill (Riverview Developments (ACT) Pty Limited)

(b) Transactions with related parties during the period Nature of transaction Transaction value

the period to 30 June 2018

Amount of receivable/(payable)

at 30 June 2018

Amount Committed at 30 June 2018

Receiving Services Riverview Projects (ACT) Pty Ltd

- Development management fees and resource recovery charges

Riverview Sales and Marketing Pty Ltd - Sales and marketing fee

3,067,951

204,414

(273,039)

(16,695)

3,649,068

919,693 Services received (aggregate) $3,272,365 $(289,734) $4,568,761

Nature of transaction Transaction value the period from

21 November 2016 to 30 June 2017

Amount of receivable/(payable)

at 30 June 2017

Amount Committed at 30 June 2017

Receiving Services Riverview Projects (ACT) Pty Ltd

- Development management fees and resource recovery charges

Riverview Sales and Marketing Pty Ltd - Sales and marketing fee

2,359,835

188,442

(466,650)

(188,442)

3,703,745

765,621 Services received (aggregate) $2,548,277 $(655,092) $4,469,366



Page 18

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018 (CONTINUED) NOTE 16: RELATED PARTIES (CONTINUED)

Transactions between the Joint Venture and the Suburban Land Agency as the appointed representative of the Australian Capital Territory, its main participant, are on normal commercial terms and conditions.

(c) Deposits held by related parties As at 30 June 2018 $180,150 (2017: $435,000) of which $35,000 (2017: $304,660) related to blocks exchanged and $145,150 (2017: $130,340) related to blocks yet to be exchanged was held as holding deposits by Riverview Sales and Marketing Pty Limited on behalf of prospective purchasers of land from the Joint Venture.

(d) Borrowings from related parties Total borrowings from related parties at 30 June 2018 was $3,475 (2017: $23,436,516) as detailed in Note 13.

(e) Contributions from related parties Initial equity contributions by related parties at 30 June 2017 were $1,000,000 (the Suburban Land Agency $600,000 and Riverview Developments (ACT) Pty Ltd $400,000). During the year further contributions other than initial equity contributions were made by the Suburban Land Agency totalling $33,898,298 (2017: $nil). These contributions are interest bearing and will have repayment priority, at the discretion of the Joint Venture Board in accordance with the Joint Venture Agreement, above the initial equity contributions.

NOTE 17: KEY MANAGEMENT PERSONNEL DISCLOSURES

(a) Key Management Personnel Compensation

30 June 2018 $

Period from 21 November 2016 to 30 June 2017

$ Short-term employee benefits - - Post employment benefits - - Other long-term benefits - - Termination benefits - - Board member fees 47,166 42,808 Total Compensation by the Joint Venture to KMP $47,166 $42,808

There were no other transactions with key management personnel or parties related to key management personnel.

145


Page 19

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018 (CONTINUED) NOTE 18: CONTINGENCIES (a) Contingent Assets

No contingent assets exist at 30 June 2018 (2017: $nil).

(b) Contingent Liability No contingent liabilities exist at 30 June 2018 (2017: $nil).

NOTE 19: CASH FLOW INFORMATION 30 June 2018 30 June 2017 $ $ (a) Reconciliation of cash Cash at bank and on hand 6,719,076 6,912,356 Total cash and cash equivalents 6,719,076 6,912,356 (b) Reconciliation of (loss) after income tax to net cash (outflows)

from operating activities.

Net (loss) for the year (4,153,581) (5,541,915) Add/(less) non-cash items Depreciation and amortisation 180,455 41,019 Loss on disposal - 19,640 Changes in operating assets and liabilities: (Increase) in receivables (937,270) (53,796) Decrease/(Increase) in prepayments 1,506 (4,550) (Increase) in inventories (9,650,635) (9,939,041) Increase in trade and other payables 1,408,034 1,366,102 Increase in revenue received in advance 2,021,039 1,779,180 Decrease/(Increase) in net tax receivable 593,364 (893,206)

Net cash (outflows) from operating activities (10,537,088) (13,226,567)



Page 20

DECLARATION BY THE JOINT VENTURE PARTNERS

1. In the opinion of the Joint Venture Partners of the West Belconnen Joint Venture (the Joint

Venture): a) the financial statements including notes, are in accordance with the basis of

accounting described in Note 2(a), so as to present fairly the financial position of the Joint Venture at 30 June 2018 and its performance, as represented by the results of its operations and cash flows for the year ended 30 June 2018; and

b) there are reasonable grounds to believe that the Joint Venture will be able to pay its

debts as and when they become due and payable.

2. In respect of the financial year ended 30 June 2018, the Joint Venture has: a) kept such accounting records as correctly record and explain its transactions and

financial position; b) kept its accounting records so that true and fair financial statements of the Joint

Venture can be prepared from time to time; and c) kept its accounting records so that the financial statements of the Joint Venture can

be conveniently and properly audited or reviewed in accordance with the Joint Venture Agreement.

Signed in accordance with a resolution of the Joint Venture Board:

………………………………………………………………… ………………………………………………………………… Michael Scott David Maxwell 18 September 2018

147

C.3 CAPITAL WORKSThe Suburban Land Agency does not receive appropriation for Capital Works. The following table relates to Development Works undertaken by the Suburban Land Agency. The figures are GST inclusive.

Reporting for 2017-18 incorporates projects contracted by the former LDA, included in the Machinery of Government arrangements as work in progress at 1 July 2017.

Where projects became the responsibility of EPSDD or CRA those entities include reporting as/where appropriate.

Civil infrastructure constructionNEW WORKS

Projects Original Project Value ($)

Year of Approval

Original Estimated

Completion Date

Revised Estimated

Completion Date

Revised Project Value

($)

North Coombs Residential Estate 13,017,576 2017 1/12/2018 – –North Coombs Electrical Reticulation Contribution 151,932 2018 1/01/2020 – –

Greenway S28 Civil Construction 2,788,482 2018 30/06/2018 31/10/2018 3,035,892

Greenway East Civil Construction 4,257,661 2017 31/05/2018 28/03/2019 –Gungahlin: Design & Construct GTC East Flemington Road 1,245,528 2016 24/11/2019 – –

Gungahlin Town Centre East Construction 11,914,900 2017 18/05/2019 1/12/2019 12,393,037

Hume West Industrial Park Stage 2A Superintendency 207,972 2017 25/12/2018 – –

Jacka 2 Master plan Engineering 72,600 2017 1/08/2018 30/08/2019 –

Jacka 2 EDP Planning Consultancy 593,970 2018 30/06/2020 – –Jacka 2 Engineering Design Services For EDP 965,822 2018 30/06/2020 – 1,025,392

Taylor 2 Stage 1 Electrical Reticulation Contribution 667,365 2018 31/12/2019 – –

Taylor 2 Stage 1 & 3 PAD 1,670,003 2016 29/11/2019 – –

Taylor 2 Stage 2 & 4 PAD 1,567,980 2016 23/12/2020 – –

Taylor 2 Estate Civil Works Stage 1 23,470,864 2017 30/08/2019 – –



Taylor 2 Estate NBN Telecommunications Infrastructure 430,723 2018 19/01/2020 – –

Taylor 2 Stage 2 Electrical Reticulation Contribution 419,403 2018 20/12/2019 – –

Whitlam Stage 1 Telecommunications Infrastructure 450,000 2018 22/05/2020 – –

North Wright Electrical Reticulation Contribution 434,944 2018 20/04/2020 – –

North Wright NBN Telecommunications Infrastructure 130,000 2017 30/06/2019 – –

North Wright Civil Construction 17,033,887 2017 1/09/2020 – –


WORKS IN PROGRESS

Projects Original Project Value

($)

Year of Approval

Original Estimated

Completion Date

Revised Estimated

Completion Date


($)

Barton S33 Superintendency 54,420 2017 26/07/2017 – 81,595

Belconnen S21 DA Superintendency 66,836 2017 1/05/2018 30/06/2019 –

Belconnen S22 DA Superintendency 50,226 2017 28/04/2017 30/06/2019 –

Belconnen Blocks 40, 41 S 54 Demolition

28,900 2017 30/06/2018 30/08/2018 –

North Coombs Telecommunications Infrastructure

45,000 2017 30/06/2019 – –

Coombs Residential Estate Site Superintendency

3,202,310 2012 30/06/2019 – 4,603,456

Denman Prospect Stage 1A1 Civil Construction

18,825,920 2015 21/07/2016 21/07/2018 20,999,121

Denman Prospect Stage 1A1 Superintendency

1,489,000 2014 1/01/2019 – –

Greenway East Civil Superintendency

389,414 2017 2/11/2018 28/02/2019 –

Greenway East Planning And Engineering Consultancy

518,243 2016 30/11/2018 – –

Greenway S28 B3,4,5 DA, Design, Superintendency

137,657 2017 31/05/2018 2/08/2018 436,465

Gungahlin Town Centre East Planning & Engineering

479,736 2015 28/06/2019 – 678,118

Gungahlin Town Centre East Superintendency

429,077 2017 1/08/2018 – –

Hume West Stage 2 Paspaley St 224,128 2017 1/10/2018 – 241,425

Hume West 2A Civil Construction 3,237,634 2017 30/10/2018 – –

Hume Stage 2 Paspaley St Curb And Turning Head Design And Tender

21,835 2017 11/08/2017 30/08/2017 26,675

Kingston Eastlake Electrical Relocation Works

559,166 2016 9/02/2019 – –

KingstonB59S50ThePierOffsetWorks

2,057,157 2016 12/12/2016 31/01/2019 2,057,157

Kingston: Causeway Sewer Odour Control Unit

205,728 2013 1/10/2015 30/06/2020 322,299

Kingston S49 Environmental Investigations

134,446 2017 1/06/2018 1/06/2019 –

Kingston Strategic Environmental AdvisorInfillProjects

332,640 2015 1/10/2017 1/06/2019 –

Lawson South Planning And Engineering Consultancy

1,057,701 2011 28/09/2018 – 2,262,458

MoncrieffEastEstatePackage2,Stage 2

14,151,933 2014 8/02/2016 31/10/2018 –

MoncrieffEastEngineering 1,997,341 2014 30/06/2017 31/08/2018 2,515,934

MoncrieffTrail&PedestrianBridges 2,498,779 2017 18/09/2018 – 2,569,650

MoncrieffTrail&PedestrianBridgesSuperintendency

156,500 2017 28/02/2019 – –

MoncrieffCRIPConstruction 6,087,613 2017 1/03/2019 – 6,114,637

Taylor 1 Stage 2 & 3 Construction 29,516,735 2016 13/07/2018 – –

Taylor 2 Engineering Consultancy 1,941,383 2016 2/08/2019 – 2,467,192

Taylor 2 Planning Consultancy 526,482 2016 2/08/2019 – 1,073,104

Taylor 3 Planning Consultancy 295,657 2017 29/03/2019 – –

Taylor 3 Engineering Consultancy 1,175,273 2016 9/12/2018 – 1,213,113

149


($)

Year of Approval

Original Estimated

Completion Date

Revised Estimated

Completion Date


($)

Whitlam Stages 1 & 2 Engineering Consultancy

2,666,070 2017 1/06/2021 – 2,752,794

Whitlam Stages 1-4 Planning 1,990,745 2017 30/06/2021 – 2,006,433

North Wright And North Coombs PAD Consultancy

1,011,667 2017 1/07/2019 –

North Wright And North Coombs Engineering Consultancy

1,267,318 2016 29/06/2019 – 1,417,318

COMPLETED PROJECTS

Projects Original Estimate ($)

Final Cost ($) Estimated Completion

Practical Completion

Financially Complete

Barton Blocks 24,26-28, S44 Grevillea Park Minor Works 1,165,505 1,199,605 10/10/2016 26/06/2018 Yes

Barton Grevillea Park Rowing Club 1,000,000 1,540,000 2/02/2018 2/02/2018 Yes Belconnen B2 S23 Demolition Police And Remand Demolition 67,463 94,633 24/02/2017 31/03/2018 Yes

Belconnen B29 S129 DA And Superintendency Services 84,975 84,975 31/12/2017 22/05/2018 Yes

Coombs And Wright Planning And Engineering Consultancy 3,321,230 5,550,000 31/05/2017 11/10/2017 Yes

Greenway East Gas Realignments 133,673 133,673 31/01/2017 24/10/2017 YesHume West Stage 2A & 2B Civil Landscape Design 44,500 44,500 21/07/2017 30/09/2017 Yes

MoncrieffDisplayVillageCarParkReinstatement 104,214 117,370 30/06/2018 12/01/2018 Yes

MoncrieffEastEstatePackage1,Stages 1 & 5 21,448,407 21,501,503 29/02/2016 20/03/2018 No

MoncrieffEastEstatePackage3,Stages 3 & 4 11,366,738 11,366,738 30/06/2016 31/01/2018 No

MoncrieffWestEstatePackage1 19,064,134 20,808,482 30/06/2017 1/06/2018 No

MoncrieffWestEstatePackage2 17,103,898 17,103,898 15/12/2015 1/06/2018 No Red Hill ARI Planning And Engineering 582,740 679,470 26/03/2017 16/11/2017 Yes

Taylor Minor Road Luminaire Supply 381,147 381,147 30/06/2018 21/12/2017 Yes

Taylor 1 EDP Engineering Services 1,741,302 2,141,832 4/09/2017 4/09/2017 Yes Taylor 1 Stage 3 Electrical Reticulation 247,883 247,883 30/04/2018 31/05/2018 No

Taylor 1 EDP Planning Consultancy 358,455 494,099 7/09/2017 7/09/2017 Yes

Throsby 1 Civil Construction 19,249,543 19,756,988 17/02/2017 2/04/2018 No Throsby Engineering Project Manager PAP 190,080 190,080 20/07/2018 30/06/2019 No


LandscapingNEW WORKS


($)

Year of Approval

Original Estimated

Completion Date

Revised Estimated

Completion Date


($)

Coombs 3A Paths Network Phase 2 167,200 2018 20/03/2019 – 197,734 Kingston Stage 4, Part 6 Superintendency, Survelliance 32,175 2018 30/09/2019 – –

Kingston Stage 4, Part 6 Landscaping 589,678 2018 30/09/2019 – –

Throsby Entry Features Construction 548,764 2017 31/05/2019 – 636,764

Throsby Entry Features Design 48,200 2017 1/07/2017 1/07/2018 56,464

WORKS IN PROGRESS

Projects Original Project

Value ($)

Year of Approval

Original Estimated

Completion Date

Revised Estimated

Completion Date

Revised Project

Value ($)

Coombs 3A Open Space Landscape Design And Path Network

74,800 2015 30/06/2018 30/06/2018 256,716

Campbell S5 Landscape Works 3,815,567 2014 31/12/2015 31/10/2018 4,153,909

Coombs 3A Pedestrian Network And Open Space Landscaping

1,610,219 2017 2/11/2018

Kingston Foreshore B1 S65 Public Landscaping

508,863 2015 30/08/2017 30/06/2019 712,394

Kingston Eastlake Parade Landscape Giles & Eyre Stage 1 & 2

148,253 2018 1/12/2018 1/06/2018 155,861

Kingston B5 S66 Public Landscaping 200,657 2016 15/12/2017 31/10/2019 212,867

Lawson South Open Space Stages 1D & 1B1 2,970,122 2015 10/05/2017 10/09/2018 3,056,338

Lawson Landscape Design 472,936 2012 9/08/2017 10/09/2018 576,752

COMPLETED PROJECTS

Projects Original Estimate ($)

Final Cost ($) Estimated Completion

Practical Completion

Financially Complete

Coombs Landscape Superintendency Consultancy

355,296 683,876 31/03/2018 31/03/2018 Yes

Coombs Open Space Landscape Construction

9,192,607

8,779,752 31/03/2018 31/03/2018 Yes

Kingston Stage 4 Part 2 Landscaping Contract 28,730

28,730 16/05/2018 30/01/2018 Yes


Joseph Lee Chief Financial Officer Suburban Land Agency +61 2 6205 3367

151

C.4 ASSET MANAGEMENT

Assets managedThe Suburban Land Agency managed assets with a total value of $46.599 million as at 30 June 2018. Assets managed are shown in the table below.

Asset Type Comprising Value $’000

Land Land in Tuggeranong, Belconnen and Molonglo 43,130Buildings OfficebuildingofWestBelconnenJointOperation 2,760Leasehold Improvements Fit-out on Level 7 TransACT House 56Plant and Equipment Furniture on Level 7 TransACT House, furniture and equipment of West Belconnen

Joint Operation 116

Community and Heritage Assets John Fowler & Co Locomotive 442Intangible Assets CustomerRelationshipManagementSystemandsoftwareofWestBelconnen

Joint Operation95

During 2017-18, the following assets were added to the Suburban Land Agency’s asset register:

> Land in Belconnen.

> The inclusion of assets from the West Belconnen Joint Operation.

As at 30 June 2018, the Suburban Land Agency had nil properties which were not being utilised, or had been identified as potentially surplus.

Assets, maintenance and upgradeDuring 2017-18, the Suburban Land Agency managed and maintained land purchased in Tuggeranong, Belconnen and Molonglo districts. There were no asset upgrades in 2017-18.

The Suburban Land Agency conducted nil audits (condition, hazardous materials, buildings, etc) of its assets in 2017-18.

Office accommodationAs at 30 June 2018, the Suburban Land Agency occupied 1,596m2 in TransACT House, 470 Northbourne Avenue Dickson. The accommodation housed 81 employees and contractors, with the average area occupied by each person being 13.5m2. The staffing number differs from that listed in Section B.8 Human Resource Management as it reflects utilisation of the Suburban Land Agency office by employees, seconded officers, contractors and consultants.


Joseph Lee Chief Financial Officer Suburban Land Agency +61 2 6205 3367


C.5 GOVERNMENT CONTRACTINGThe Suburban Land Agency undertook procurement activities for a range of goods, services and works.

The following pages provide details of contracts on the ACT Government Contracts Register valued at more than $25,000 with an execution date between 1 July 2017 and 30 June 2018.


Neil Bulless Deputy Chief Executive Officer Suburban Land Agency +61 2 6205 0600

153

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AGL

Dist

ribut

ion

6

67,3

65

4/05

/201

831

/12/

2019

No

Nor

th C

oom

bs E

stat

e El

ectr

ical

Re

ticul

atio

nGP

R10

Proc

ess

Exem

ptio

nIn

frast

ruct

ure

Yes

Acte

wAG

L Di

strib

utio

n

151

,932

14

/05/

2018

1/01

/202

0N

o

Tayl

or 2

Sta

ge 2

Ele

ctric

al R

etic

ulat

ion

GPR1

0 Pr

oces

s Ex

empt

ion

Infra

stru

ctur

eYe

sAc

tew

AGL

Dist

ribut

ion

4

19,4

03

29/0

6/20

1820

/12/

2019

No

Tayl

or 2

Res

iden

tial e

stat

e St

age

2 &

4 Pr

inci

pal A

ppoi

nted

Del

egat

ePu

blic

Ten

der

Serv

ices

(non

-co

nsul

tanc

y)N

oAe

com

1,5

67,9

80

8/01

/201

823

/12/

2020

No

TM1

Deve

lope

r Con

sulta

ncy

3 Q

uote

sCo

nsul

tanc

yN

oAj

ilon

Pty

Ltd

(Mod

is

Staff

ing)

69,

099

17/1

0/20

1728

/02/

2018

No

Gree

nway

S28

Civ

il Co

nstr

uctio

nPu

blic

Ten

der

Wor

ksN

oBo

st C

ivil

Pty

Ltd

3,

053,

547

7/12

/201

711

/11/

2019

Yes

Thro

sby

Entr

y Fe

atur

esPu

blic

Ten

der

Wor

ksN

oBr

iarw

ood

Pty

Ltd

(Ram

)

592

,764

30

/11/

2017

19/0

9/20

19Ye

s

King

ston

Sta

ge 4

, Par

t 6 L

ands

capi

ngPu

blic

Ten

der

Wor

ksN

oBr

iarw

ood

Pty

Ltd

(Ram

)

589

,678

13

/06/

2018

30/0

9/20

18Ye

s

Tayl

or B

ound

ary

B838

/B84

5 Gu

ngah

lin

Tem

pora

ry F

ence

3 Q

uote

sGo

ods A

nd

Serv

ices

No

Bullm

ore

Rura

l

9

5,46

7 5/

12/2

017

31/0

1/20

18Ye

s

Maw

son

Athl

on D

rive

Site

Via

bilit

y St

udy

3 Q

uote

sSe

rvic

es (n

on-

cons

ulta

ncy)

No

Calib

re C

onsu

lting

59,

445

18/0

8/20

1730

/11/

2017

Yes

Nor

th W

right

And

Nor

th C

oom

bs

Prin

cipa

l Aut

horiz

ed D

eleg

ate

Publ

ic T

ende

rSe

rvic

es (n

on-

cons

ulta

ncy)

No

Calib

re C

onsu

lting

1,0

11,6

66

1/07

/201

71/

07/2

019

Yes

Tayl

or 2

Sta

ge 1

Res

iden

tial E

stat

e Pu

blic

Ten

der

Wor

ksN

oCa

nber

ra

Cont

ract

ors P

ty L

td 2

3,47

0,86

4 12

/02/

2018

16/0

9/20

19N

o

Gree

nway

Eas

t Res

iden

tial E

stat

e Ci

vil

Cons

truc

tion

Publ

ic T

ende

rW

orks

No

Canb

erra

Co

ntra

ctor

s Pty

Ltd

4,

257,

661

22/0

8/20

1711

/08/

2018

No

Tayl

or 2

Sta

ge 2

Res

iden

tial E

stat

ePu

blic

Ten

der

Wor

ksN

oCa

nber

ra

Cont

ract

ors P

ty L

td 2

3,93

7,94

9 12

/02/

2018

26/0

8/20

19N

o

Hum

e W

est S

tage

2A

Supe

rinte

nden

cyPu

blic

Ten

der

Serv

ices

(non

-co

nsul

tanc

y)N

oCa

rdno

NSW

/ACT

Pt

y Lt

d

207

,972

21

/08/

2017

21/0

8/20

19N

o


Cont

ract

Titl

ePr

ocur

emen

t M

etho

dolo

gyPr

ocur

emen

t Ty

peEx

empt

ion

from

Q

uota

tion

and

Tend

er T

hres

hold

Re

quire

men

ts

Cont

ract

or N

ame

Con

trac

t am

ount

$

(G

ST

incl

usiv

e)

Exec

utio

n da

teEx

piry

Dat

eSm

all M

ediu

m

Ente

rpris

es (S

ME)

Maw

son

B6 S

57 2

nd S

tage

SIR

3 Q

uote

sSe

rvic

es (n

on-

cons

ulta

ncy)

No

Card

no N

SW/A

CT

Pty

Ltd

29,

017

29/0

7/20

1731

/12/

2019

No

Jack

a 2

EDP

Engi

neer

ing

Cons

ulta

ncy

Publ

ic T

ende

rSe

rvic

es (n

on-

cons

ulta

ncy)

No

Card

no N

SW/A

CT

Pty

Ltd

1,

020,

332

6/04

/201

830

/06/

2020

Yes

Char

nwoo

d Si

te In

vest

igat

ion

Repo

rt

B13

S31

3 Q

uote

sSe

rvic

es (n

on-

cons

ulta

ncy)

No

Card

no N

SW/A

CT

Pty

Ltd

41,

714

2/02

/201

714

/11/

2018

Yes

Hum

e W

est 2

A Co

nstr

uctio

nPu

blic

Ten

der

Wor

ksN

oCh

in C

ivil

Pty

Ltd

3,

237,

634

17/1

0/20

1730

/10/

2019

Yes

Pane

l Of C

omm

erci

al A

nd R

esid

entia

l Ag

ents

Publ

ic T

ende

r S

ervi

ces

No

Civi

um P

rope

rty

Grou

pPa

nel

25/0

7/20

1730

/06/

2020

No

Tayl

or B

allo

t Nov

embe

r Sal

es A

gent

Ci

vium

Pane

lSe

rvic

es (n

on-

cons

ulta

ncy)

No

Civi

um (A

CT) P

ty L

td

200

,000

25

/07/

2017

30/0

6/20

20N

o

Whi

tlam

Sal

es A

gent

201

8-20

20Pa

nel

Serv

ices

(non

-co

nsul

tanc

y)N

oCi

vium

(ACT

) Pty

Ltd

1,

274,

900

27/0

3/20

1830

/06/

2020

No

King

ston

Sal

es N

egot

iatio

ns A

rts

Prec

inct

Pane

lSe

rvic

es (n

on-

cons

ulta

ncy)

No

Civi

um (A

CT) P

ty L

td

165

,000

22

/08/

2017

17/1

0/20

18N

o

Coom

bs S

ales

Age

nt T

o 20

20Pa

nel

Serv

ices

(non

-co

nsul

tanc

y)N

oCi

vium

(ACT

) Pty

Ltd

1,

100,

000

11/1

2/20

1730

/12/

2020

No

Wrig

ht S

ales

Age

nt T

o 20

20Pa

nel

Serv

ices

(non

-co

nsul

tanc

y)N

oCi

vium

(ACT

) Pty

Ltd

5

20,0

00

11/1

2/20

1730

/12/

2020

No

Bric

kwor

ks S

ales

Pro

cess

Pane

lSe

rvic

es (n

on-

cons

ulta

ncy)

No

Civi

um (A

CT) P

ty L

td

350

,000

10

/02/

2016

18/1

0/20

19no

Thro

sby

OTC

Age

nt T

o 20

21Pa

nel

Serv

ices

(non

-co

nsul

tanc

y)N

oCi

vium

(ACT

) Pty

Ltd

1,

200,

000

18/0

1/20

1830

/12/

2021

No

Hum

e Sa

les A

gent

& O

TC A

pril

2018

Pane

lSe

rvic

es (n

on-

cons

ulta

ncy)

No

Civi

um (A

CT) P

ty L

td

175

,000

26

/04/

2018

26/0

4/20

20N

o

Law

son

2 Le

gal A

dvic

e EO

I’s A

nd R

FTs

Pane

lSe

rvic

es (n

on-

cons

ulta

ncy)

No

Clay

ton

Utz

1

00,0

00

7/05

/201

87/

05/2

020

No

Seco

ndmen

tOfL

egalOffice

rPa

nel

Serv

ices

(non

-co

nsul

tanc

y)N

oCl

ayto

n U

tz

5

0,00

0 29

/05/

2018

29/0

5/20

20N

o

Pane

l Of C

omm

erci

al A

nd R

esid

entia

l Ag

ents

Publ

ic T

ende

r S

ervi

ces

No

Colli

ers

Inte

rnat

iona

lPa

nel

25/0

7/20

171/

01/2

019

No

Subu

rban

Res

iden

tial S

ales

Pro

gram

Pane

lSe

rvic

es (n

on-

cons

ulta

ncy)

No

Colli

ers

Inte

rnat

iona

l (AC

T)

Pty

Ltd

6

54,5

00

9/10

/201

730

/06/

2018

No

155

Cont

ract

Titl

ePr

ocur

emen

t M

etho

dolo

gyPr

ocur

emen

t Ty

peEx

empt

ion

from

Q

uota

tion

and

Tend

er T

hres

hold

Re

quire

men

ts

Cont

ract

or N

ame

Con

trac

t am

ount

$

(G

ST

incl

usiv

e)

Exec

utio

n da

teEx

piry

Dat

eSm

all M

ediu

m

Ente

rpris

es (S

ME)

Wrig

ht 1

/38

Sale

s Age

nt C

omm

issi

onPa

nel

Serv

ices

(non

-co

nsul

tanc

y)N

oCo

llier

s In

tern

atio

nal (

ACT)

Pt

y Lt

d

55,

000

11/0

9/20

1711

/09/

2019

No

Tayl

or 1

/38-

10/3

9-10

/38

Sale

s Age

nt

Com

mis

sion

Pane

lSe

rvic

es (n

on-

cons

ulta

ncy)

No

Colli

ers

Inte

rnat

iona

l (AC

T)

Pty

Ltd

25,

000

11/0

9/20

1711

/09/

2019

No

Red

Hill

Fla

ts E

nglo

bo C

ollie

rs 2

017

Tend

erPa

nel

Serv

ices

(non

-co

nsul

tanc

y)N

oCo

llier

s In

tern

atio

nal (

ACT)

Pt

y Lt

d

5

00,0

00

20/1

0/20

1720

/10/

2019

No

Brad

don

& Tu

rner

On

Nor

thbo

urne

Pane

lSe

rvic

es (n

on-

cons

ulta

ncy)

No

Colli

ers

Inte

rnat

iona

l (AC

T)

Pty

Ltd

5

00,0

00

20/1

0/20

1720

/10/

2019

No

Prov

isio

n O

f Boa

rd S

uppo

rt S

ervi

ces

3 Q

uote

sSe

rvic

es (n

on-

cons

ulta

ncy)

No

Com

pany

Mat

ters

Pt

y Lt

d

125

,000

14

/06/

2018

14/0

9/20

18Ye

s

Gung

ahlin

Tow

n Ce

ntre

Eas

t Co

nstr

uctio

nPa

nel

Wor

ksN

oCo

rd C

ivil

Pty

Ltd

11,

914,

900

25/0

8/20

1717

/05/

2019

Yes

Whi

tlam

Bra

nd A

nd L

aunc

h Ca

mpa

ign

Pane

lSe

rvic

es (n

on-

cons

ulta

ncy)

No

Cre8

ive

Aust

rala

sia

Pty

Ltd

97,

295

22/1

1/20

1731

/10/

2018

Yes

Tayl

or B

allo

t Med

ia B

uyPa

nel

Serv

ices

(non

-co

nsul

tanc

y)N

oDe

nstu

Mitc

hell

Med

ia A

ust P

ty L

td

4

5,00

0 19

/08/

2017

23/0

2/20

18N

o

Thro

sby

Ove

r The

Cou

nter

Sal

es

Cam

paig

nPa

nel

Serv

ices

(non

-co

nsul

tanc

y)N

oDe

nstu

Mitc

hell

Med

ia A

ust P

ty L

td

100

,000

29

/09/

2017

15/1

2/20

17N

o

Thro

sby

OTC

Med

ia B

uy J

une

2018

Pane

lGo

ods A

nd

Serv

ices

No

Dent

su X

Aus

tralia

Pt

y Lt

d

5

9,99

4 2/

05/2

018

3/08

/201

8N

o

Brad

don

And

Turn

er M

edia

Buy

Jul

y 20

18Pa

nel

Good

s And

Se

rvic

esN

oDe

ntsu

X A

ustra

lia

Pty

Ltd

63,

515

27/0

6/20

1830

/09/

2018

No

Min

gle

(Wrig

ht A

nd C

oom

bs)

Deve

lopm

ent P

rogr

amPu

blic

Ten

der

Cons

ulta

ncy

No

Elto

n Co

nsul

ting

Grou

p Pt

y Lt

d

160

,000

1/

07/2

017

31/0

7/20

18Ye

s

King

ston

Sta

ge 4

, Pt 6

Lan

dsca

pe

Supe

r, Su

rvei

llanc

ePu

blic

Ten

der

Wor

ksN

oEn

viro

n Li

nks

32,

175

16/0

5/20

1830

/09/

2019

Yes

Maj

or U

rban

Ren

ewal

Pro

ject

And

Ca

bine

t Sub

mis

sion

3 qu

otes

Cons

ulta

ncy

No

Erns

t & Yo

ung

44,

000

9/03

/201

81/

09/2

018

No

King

ston

Art

s Pre

cinc

t Pre

para

tion

Of

Busi

ness

Cas

e3

quot

esCo

nsul

tanc

yN

oEr

nst &

Youn

g

164

,999

28

/05/

2018

30/1

1/20

18N

o

Fina

ncia

l And

Tax

atio

n Ad

vice

3 qu

otes

Serv

ices

(non

-co

nsul

tanc

y)N

oEr

nst &

Youn

g

200

,000

26

/03/

2018

26/0

3/20

19N

o


Cont

ract

Titl

ePr

ocur

emen

t M

etho

dolo

gyPr

ocur

emen

t Ty

peEx

empt

ion

from

Q

uota

tion

and

Tend

er T

hres

hold

Re

quire

men

ts

Cont

ract

or N

ame

Con

trac

t am

ount

$

(G

ST

incl

usiv

e)

Exec

utio

n da

teEx

piry

Dat

eSm

all M

ediu

m

Ente

rpris

es (S

ME)

TM1

Use

r Lic

ence

GPR1

0 Pr

oces

s Ex

empt

ion

Good

s And

Se

rvic

esN

oEx

cele

rate

d Co

nsul

ting

56,

920

18/0

6/20

1818

/06/

2019

Yes

Stra

tegi

es W

orks

hop

Faci

litat

or3

Quo

tes

Serv

ices

(non

-co

nsul

tanc

y)N

oFu

ture

Con

sulti

ng

Pty

Ltd

27,

461

24/0

1/20

189/

02/2

018

Yes

Wrig

ht A

nd C

oom

bs B

allo

ts:

Conv

eyan

cing

Pane

lSe

rvic

es (n

on-

cons

ulta

ncy)

No

GriffinLeg

al

150

,175

16

/01/

2018

30/0

6/20

19N

o

Tayl

or L

egal

Ser

vice

s 1/6

/18

To 3

0/6/

20Pa

nel

Serv

ices

(non

-co

nsul

tanc

y)N

oGr

iffinLeg

al

566

,480

24

/05/

2018

30/0

6/20

20N

o

Nor

th W

right

Res

iden

tial E

stat

e Pa

nel

Wor

ksN

oGr

oup

One

Pty

Ltd

17,

033,

887

29/0

9/20

171/

09/2

020

No

Tayl

or 2

Sta

ge 3

Civ

il Co

nstr

uctio

nPa

nel

Wor

ksN

oGr

oup

One

Pty

Ltd

24,

500,

770

9/04

/201

830

/06/

2020

yes

Pane

l Of C

omm

erci

al A

nd R

esid

entia

l Ag

ents

Publ

ic T

ende

r S

ervi

ces

No

Inde

pend

ent

Prop

erty

Gro

up

Proj

ects

Pane

l25

/07/

2017

30/0

6/20

20N

o

Tayl

or S

ales

Age

nt 2

018-

2020

Pane

lSe

rvic

es (n

on-

cons

ulta

ncy)

No

Inde

pend

ent

Prop

erty

Gro

up P

ty

Ltd

1,

250,

950

27/0

3/20

1830

/06/

2020

No

Tayl

or 3

Eng

inee

ring

Cons

ulta

ncy

Publ

ic T

ende

rCo

nsul

tanc

yN

oIn

desc

o Pt

y Lt

d

1,21

3,11

3 9/

12/2

016

9/12

/201

8Ye

s

Tayl

or 1

Sta

ge 1

PAD

Publ

ic T

ende

rIn

frast

ruct

ure

No

Inde

sco

Pty

Ltd

1,

761,

525

9/05

/201

621

/12/

2018

Yes

Tayl

or 2

Sta

ge 1

& 3

PAD

Publ

ic T

ende

rCo

nsul

tanc

yN

oIn

desc

o Pt

y Lt

d

1,67

0,00

3 30

/11/

2017

29/1

1/20

19Ye

s

Gung

ahlin

Tow

n Ce

ntre

Eas

t Su

perin

tend

ence

Publ

ic T

ende

rSe

rvic

es (n

on-

cons

ulta

ncy)

No

Inde

sco

Pty

Ltd

4

29,0

77

22/0

8/20

1722

/08/

2019

Yes

Jack

a 2

Engi

neer

ing

Desi

gn S

ervi

ces

Cons

ulta

ncy

For E

DPPu

blic

Ten

der

Serv

ices

(non

-co

nsul

tanc

y)N

oIn

desc

o Pt

y Lt

d

7

2,60

0 30

/07/

2019

30/0

8/20

19Ye

s

Belc

onne

n Bl

ks 4

0, 4

1 S5

4 De

mol

ition

DA

Doc

umen

tatio

n &

Appr

oval

Publ

ic T

ende

rSe

rvic

es (n

on-

cons

ulta

ncy)

No

Inde

sco

Pty

Ltd

28,

900

25/1

0/20

1730

/06/

2018

Yes

Mon

crieffDisp

layVilla

geCarPark

Rein

stat

emen

tPu

blic

Ten

der

Wor

ksN

oIrw

in &

Har

tsho

rn

117

,370

7/

11/2

017

30/0

6/20

18Ye

s

Gung

ahlin

Des

ign

& Co

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159

C.6 STATEMENT OF PERFORMANCEFor the year ended 30 June 2018


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 Suburban Land Agency for the year ended 30 June 2018.

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 Suburban Land 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 Suburban Land Agency.



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.)

161

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 Suburban Land 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 Suburban Land Agency; or

integrity of the 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.

Ajay Sharma Acting Auditor-General 19 September 2018


Suburban Land Agency Statement of Performance



In my opinion, the certified Statement of Performance is in agreement with the Suburban Land Agency’s records and fairly reflects the service performance of the Suburban Land Agency for the year ended 30 June 2018 and also fairly reflects the judgements exercised in preparing it.

John Fitzgerald

Chair


18 September 2018

163




In my opinion, the certified Statement of Performance is in agreement with the Suburban Land Agency’s records and fairly reflects the service performance of the Suburban Land Agency for the year ended 30 June 2018 and also fairly reflects the judgements exercised in preparing it.

John Fitzgerald

Chair


18 September 2018




In my opinion, the Statement of Performance is in agreement with the Suburban Land Agency’s records and fairly reflects the service performance of the Suburban Land Agency for the year ended 30 June 2018 and also fairly reflects the judgements exercised in preparing it.

John Dietz Chief Executive Officer Suburban Land Agency

19 September 2018







19 September 2018


Statement of Performance


Financial Performance Measurement Analysis 2017-18

Financial Performance Indicators

Target 2017-18

Actual 2017-18

Variance (%) from

Target

Explanation of Material Variances

Land Sales Revenue (million) $576 $388 -33%

The lower than budgeted land sales revenue was mainly due to delayed settlements of the Red Hill Housing Precinct ARI site, Throsby and Denman Prospect 2.

Operating Surplus before Tax (million) $347 $230 -34%

The lower than budgeted operating surplus before tax was mainly due to lower land sales revenue as explained above.

Operating Surplus after Tax/Dividend (million)

$243 $161 -34% The lower than budgeted operating surplus after tax was mainly due to lower land sales revenue as explained above.

Total Return to Government (million)

$404 $324 -20%

The lower than budgeted total return to Government was mainly due to the lower operating surplus before tax. This was partially offset by the higher than budgeted capital distribution due to the settlement of ARI sites which were delayed from 2016-17.

Return on Assets (%) 57.6 45.8 -20%

The lower than budgeted return on assets was mainly due to the lower operating surplus before tax as explained above.

Gross Profit Margin on Land Sales (%) (a) 72.7 83.9 15%

The higher than budgeted 2017-18 gross profit margin was mainly due to lower cost of land sold as a result of the revision of estimated project completion costs.

Net Profit Margin (%) 41.0 40.5 -1%

Inventory Turnover (%) 52.7 24.9 -53%

The lower inventory turnover was mainly due to lower cost of land sold which reflected the lower land sales and the impact of the revision of estimated project completion costs.

165




Financial Performance Measurement Analysis 2017-18


Target 2017-18

Actual 2017-18

Variance (%) from

Target


Land Sales Revenue (million) $576 $388 -33%

The lower than budgeted land sales revenue was mainly due to delayed settlements of the Red Hill Housing Precinct ARI site, Throsby and Denman Prospect 2.

Operating Surplus before Tax (million) $347 $230 -34%

The lower than budgeted operating surplus before tax was mainly due to lower land sales revenue as explained above.

Operating Surplus after Tax/Dividend (million)

$243 $161 -34% The lower than budgeted operating surplus after tax was mainly due to lower land sales revenue as explained above.

Total Return to Government (million)

$404 $324 -20%

The lower than budgeted total return to Government was mainly due to the lower operating surplus before tax. This was partially offset by the higher than budgeted capital distribution due to the settlement of ARI sites which were delayed from 2016-17.

Return on Assets (%) 57.6 45.8 -20%

The lower than budgeted return on assets was mainly due to the lower operating surplus before tax as explained above.

Gross Profit Margin on Land Sales (%) (a) 72.7 83.9 15%

The higher than budgeted 2017-18 gross profit margin was mainly due to lower cost of land sold as a result of the revision of estimated project completion costs.

Net Profit Margin (%) 41.0 40.5 -1%

Inventory Turnover (%) 52.7 24.9 -53%

The lower inventory turnover was mainly due to lower cost of land sold which reflected the lower land sales and the impact of the revision of estimated project completion costs.






19 September 2018




Financial Performance Measurement Analysis 2017-18 – Continued

The above accountability indicators were examined by the ACT Audit Office in accordance with the Financial Management Act 1996.

NOTES

(a) The profit margin ratios of the Suburban Land Agency are used for internal purposes to provide comparatives across projects and time periods. These margins are not comparable with private industry, noting that the Government, through the Suburban Land Agency, enters into the land development process at an earlier stage than a private developer. Additionally, the Government invests in infrastructure within and around its developments, with the cost incurred by other Government agencies (and funded by the ACT Budget) and therefore not reflected in the Suburban Land Agency’s profit margins. The accounting treatment for ARI land requires the cost of ARI sites to be written-down to inventory for the value of the land. Therefore, unlike for other developments undertaken by the Suburban Land Agency where land revenues and the costs of land sold are included in the gross profit margin calculation, the cost of ARI sites is excluded, which increases the margin.

Total return to government = operating surplus before national tax equivalents + payments for land costs + payroll tax + stamp duty equivalents + land holding cost equivalents + capital distribution.

Return on Assets = (operating surplus before national tax equivalents + land holding cost equivalents) / average total assets for period. Average total assets = (opening assets + closing assets) / 2.

Gross Profit Margin = (land revenue - cost of land sold including stamp duty equivalents) / land revenue.

Net Profit Margin = operating surplus / total revenue.

Inventory Turnover = cost of land sold / average inventories. Average Inventory = (opening inventory + closing inventory) / 2.


Target 2017-18

Actual 2017-18

Variance (%) from

Target


Net Cash Inflows from Operating Activities (million)

$255 $179 -30%

The lower net cash inflows from operating activities were mainly due to lower cash receipts from land sales revenue. This was partially offset by lower cash payments for development costs in Taylor, North Wright, North Coombs, Kingston Foreshore and Hume West.


Subu

rban

Lan

d Ag

ency

Statem

ent o

f Perform

ance

For the

Year E

nded

30 June

201

8

Stat

emen

t by

the

Chi

ef E

xecu

tive

Offi

cer

In m

y op

inion, the

Statement of Perform

ance is in

agreemen

t with

the

Sub

urban Land

Agency’s records and

fairly refle

cts the service pe

rformance of the

Sub

urban Land

Agency for the

year e

nded

30 June

2018 and also

fairly refle

cts the

judgem

ents exercise

d in preparin

g it.

John

Dietz

Chief E

xecutiv

e Officer

Subu

rban

Land Ag

ency

19 Sep

tembe

r 2018

Subu

rban

Lan

d Ag

ency

Stat

emen

t of P

erfo

rman

ce

For t

he Y

ear E

nded

30

June

201

8

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anci

al P

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rs (N

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r De

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tor

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r Ta

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ult

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fied

or

abov

e

28%

Th

e Su

burb

an L

and

Agen

cy su

rvey

ed re

spon

dent

s th

roug

h th

e M

ingl

e Pr

ogra

m a

nd o

ne la

nd sa

les

even

t whi

ch d

eter

min

e a

satis

fact

ion

leve

l av

erag

e.

Wor

k He

alth

an

d Sa

fety

ii M

ajor

Wor

ks C

ontr

acto

rs p

rovi

de

Wor

kpla

ce H

ealth

and

Saf

ety

repo

rts w

ithin

agr

eed

timef

ram

es

100%

91

%

(9%

) Th

e Su

burb

an L

and

Agen

cy re

ceiv

ed 5

out

of 6

8 re

port

s out

side

of th

e ag

reed

tim

efra

me

(5 d

ays)

an

d w

as u

nabl

e to

loca

te o

ne re

port

.

167

Subu

rban

Lan

d Ag

ency

Statem

ent o

f Perform

ance

For the

Year E

nded

30 June

201

8

Stat

emen

t by

the

Chi

ef E

xecu

tive

Offi

cer

In m

y op

inion, the


ance is in

agreemen

t with

the

Sub

urban Land


fairly refle

cts the service pe

rformance of the

Sub

urban Land

Agency for the

year e

nded

30 June

2018 and also

fairly refle

cts the

judgem

ents exercise

d in preparin

g it.

John

Dietz

Chief E

xecutiv

e Officer

Subu

rban

Land Ag

ency

19 Sep

tembe

r 2018

Subu

rban

Lan

d Ag

ency

Stat

emen

t of P

erfo

rman

ce

For t

he Y

ear E

nded

30

June

201

8

Non

-Fin

anci

al P

erfo

rman

ce In

dica

tors

201

7-18

Indi

cato

r De

scrip

tor

Indi

cato

r Ta

rget

20

17-1

8 Ac

tual

Res

ult

2017

-18

Varia

nce

(%)

from

Tar

get

Expl

anat

ion

of M

ater

ial V

aria

nces

Wor

k He

alth

an

d Sa

fety

W

orkp

lace

Hea

lth a

nd S

afet

y (A

ctiv

e Ce

rtifi

catio

n) a

udits

co

mpl

eted

iii

35 A

udits

36

Aud

its

3%

Dive

rsity

Es

tabl

ishm

ent o

f a S

trat

egic

Hu

man

Res

ourc

es P

lan

for

Subu

rban

Lan

d Ag

ency

1 0

(100

%)

Staf

f Sur

vey

resu

lts w

ere

pres

ente

d la

ter t

han

antic

ipat

ed a

nd w

ere

requ

ired

for d

evel

opm

ent

of th

e Pl

an. T

his m

easu

re h

as b

een

defe

rred

to

2018

-19.

Di

vers

ity

Achi

eve

and

mai

ntai

n ge

nder

eq

ualit

yiv in

Sub

urba

n La

nd A

genc

y st

affin

g

Gend

er

bala

nce

with

in 1

0%

Gend

er

bala

nce

with

in

3%

-

Dive

rsity

Ac

hiev

e an

d m

aint

ain

cultu

ral

dive

rsity

v in S

ubur

ban

Land

Age

ncy

staf

fing

20%

of s

taff

coho

rt

iden

tify

as

cultu

rally

and

lin

guist

ical

ly

dive

rse

20%

of s

taff

coho

rt

iden

tifie

d as

cu

ltura

lly a

nd

lingu

istic

ally

di

vers

e

-

Staf

f M

anag

emen

t St

aff h

ave

curr

ent (

<12

mon

ths

old)

per

form

ance

dev

elop

men

t pl

ans

85%

87

.5%

3%

70

of 8

0 st

aff h

ave

agre

ed p

erfo

rman

ce

deve

lopm

ent p

lans

.

Staf

f Sa

tisfa

ctio

n An

nual

Sta

ff sa

tisfa

ctio

n su

rvey

co

mpl

eted

80

%

Part

icip

atio

n 95

%

Part

icip

atio

n 19

%

Staf

f par

ticip

atio

n an

d sa

tisfa

ctio

n le

vels

exce

eded

ant

icip

ated

resu

lts.

As th

e Su

burb

an

Land

Age

ncy

was

a n

ew o

rgan

isatio

n th

e an

ticip

ated

resu

lts w

ere

unkn

own.

70

% O

vera

ll Sa

tisfa

ctio

n (s

atisf

ied

or

abov

e)

81%

Ove

rall

Satis

fact

ion

(sat

isfie

d or

ab

ove)

16%


Subu

rban

Lan

d Ag

ency

Statem

ent o

f Perform

ance

For the

Year E

nded

30 June

201

8

Stat

emen

t by

the

Chi

ef E

xecu

tive

Offi

cer

In m

y op

inion, the


ance is in

agreemen

t with

the

Sub

urban Land


fairly refle

cts the service pe

rformance of the

Sub

urban Land

Agency for the

year e

nded

30 June

2018 and also

fairly refle

cts the

judgem

ents exercise

d in preparin

g it.

John

Dietz

Chief E

xecutiv

e Officer

Subu

rban

Land Ag

ency

19 Sep

tembe

r 2018

Subu

rban

Lan

d Ag

ency

Stat

emen

t of P

erfo

rman

ce

For t

he Y

ear E

nded

30

June

201

8

Non

-Fin

anci

al P

erfo

rman

ce In

dica

tors

201

7-18

Indi

cato

r De

scrip

tor

Indi

cato

r Ta

rget

20

17-1

8 Ac

tual

Res

ult

2017

-18

Varia

nce

(%)

from

Tar

get

Expl

anat

ion

of M

ater

ial V

aria

nces

Tran

spar

ency

Re

duct

ion

in F

reed

om o

f In

form

atio

nvi re

ques

tsvi

i 10

% o

n 20

15-1

6 (L

DA)

24%

on

20

15-1

6 (L

DA)

140%

Th

e ta

rget

was

exc

eede

d w

ith th

e SL

A re

ceiv

ing

5 fe

wer

requ

ests

in 2

017-

18.

Acco

unta

bilit

y In

tern

al A

udit

repo

rts c

ompl

eted

viii

2 2

-

Activ

e Tr

avel

Es

tate

Dev

elop

men

t Pla

ns fo

r new

M

ajor

Res

iden

tial P

roje

cts

enco

urag

e Ac

tive

Trav

el a

nd

incl

ude

plan

s for

dw

ellin

gs to

be

loca

ted

with

in 8

00m

of p

ublic

tr

ansp

ort.

100%

on

appr

oved

Es

tate

De

velo

pmen

t Pl

ans

100%

on

appr

oved

Es

tate

De

velo

pmen

t Pl

ans

-

Indi

cativ

e La

nd R

elea

se

Prog

ram

Resid

entia

l Dw

ellin

gs

2,88

0

4,20

3ix

46

%

Addi

tiona

l mul

ti-un

it sit

es in

Tay

lor a

nd C

oom

bs

wer

e ad

ded

to th

e pr

ogra

m to

ass

ist in

mak

ing

up

for a

shor

tfal

l in

singl

e re

siden

tial s

ites a

t St

rath

nairn

. 20

17-1

8 re

leas

es in

Str

athn

airn

hav

e be

en

dela

yed

due

to a

n AC

AT a

ppea

l, th

is in

clud

es 6

5 af

ford

able

and

14

com

mun

ity d

wel

lings

. 30

publ

ic

hous

ing

dwel

lings

wer

e de

laye

d in

Gre

enw

ay.

Rele

ase

of th

ese

sites

has

bee

n de

ferr

ed to

201

8-19

.

Indi

cativ

e La

nd R

elea

se

Prog

ram

Mix

ed U

se

26,4

00m

2

97

,191

m2

x

26

8%

The

rele

ase

of a

dditi

onal

mix

ed u

se la

nd w

as

reco

gnise

d to

refle

ct th

e zo

ning

of s

ites r

elea

sed

in th

e Gu

ngah

lin T

own

Cent

re a

nd L

awso

n.

169

Subu

rban

Lan

d Ag

ency

Statem

ent o

f Perform

ance

For the

Year E

nded

30 June

201

8

Stat

emen

t by

the

Chi

ef E

xecu

tive

Offi

cer

In m

y op

inion, the


ance is in

agreemen

t with

the

Sub

urban Land


fairly refle

cts the service pe

rformance of the

Sub

urban Land

Agency for the

year e

nded

30 June

2018 and also

fairly refle

cts the

judgem

ents exercise

d in preparin

g it.

John

Dietz

Chief E

xecutiv

e Officer

Subu

rban

Land Ag

ency

19 Sep

tembe

r 2018

Subu

rban

Lan

d Ag

ency

Stat

emen

t of P

erfo

rman

ce

For t

he Y

ear E

nded

30

June

201

8

Non

-Fin

anci

al P

erfo

rman

ce In

dica

tors

201

7-18

Indi

cato

r De

scrip

tor

Indi

cato

r Ta

rget

20

17-1

8 Ac

tual

Res

ult

2017

-18

Varia

nce

(%)

from

Tar

get

Expl

anat

ion

of M

ater

ial V

aria

nces

Indi

cativ

e La

nd R

elea

se

Prog

ram

Com

mer

cial

24

,070

m2

0m2

(100

%)

The

varia

nce

in c

omm

erci

al la

nd w

as d

ue to

the

reco

nsid

erat

ion

of B

lock

1 S

ectio

n 29

5 W

anni

assa

(t

he E

rinda

le C

entr

e Ca

rpar

k), B

lock

1 S

ectio

n 22

M

oncr

ieff

(Mon

crie

ff lo

cal C

entr

e) a

nd B

lock

29

S ect

ion

149

Belc

onne

n (t

he fo

rmer

wat

er p

olic

e sit

e) fr

om th

e re

leas

e pr

ogra

m. T

hese

site

s wer

e he

ld o

ver t

o en

sure

that

whe

n re

leas

ed in

201

8-19

they

del

iver

on

both

the

Terr

itory

and

the

com

mun

ity’s

exp

ecta

tions

for t

he si

tes.

In

dica

tive

Land

Rel

ease

Pr

ogra

m

Indu

stria

l 30

,000

m2

24,5

38m

2 (1

8%)

Indu

stria

l lan

d re

leas

ed w

as 5

,462

m2 le

ss th

an

expe

cted

. Ove

r 50,

000m

2 of i

ndus

tria

l lan

d w

as

avai

labl

e fo

r sal

e ov

er th

e co

unte

r thr

ough

out

2017

-18

from

prio

r yea

rs In

dica

tive

Land

Rel

ease

Pr

ogra

ms.

Indi

cativ

e La

nd R

elea

se

Prog

ram

Com

mun

ity

56,2

00m

2 15

,503

m2

(72%

) Th

e sh

ortf

all i

n co

mm

unity

land

was

due

to th

e w

ithdr

awal

of B

lock

23

Sect

ion

109

Ngu

nnaw

al

from

the

prog

ram

. Thi

s site

will

be

rele

ased

in

2018

-19

to e

nsur

e th

at w

hen

rele

ased

it d

eliv

ers

on b

oth

the

Terr

itory

and

the

com

mun

ity’s

expe

ctat

ions

for t

he si

tes.

Af

ford

able

Ho

usin

g La

nd

Rele

ase

Affo

rdab

le P

urch

ase

and

Land

Ren

t 35

3 28

8 (2

3%)

2017

-18

rele

ases

in S

trat

hnai

rn h

ave

been

de

laye

d du

e to

an

ACAT

app

eal,

this

incl

udes

65

affo

rdab

le h

ousin

g sit

es. R

elea

se o

f the

se si

tes

has b

een

defe

rred

to 2

018-

19.


Subu

rban

Lan

d Ag

ency

Statem

ent o

f Perform

ance

For the

Year E

nded

30 June

201

8

Stat

emen

t by

the

Chi

ef E

xecu

tive

Offi

cer

In m

y op

inion, the


ance is in

agreemen

t with

the

Sub

urban Land


fairly refle

cts the service pe

rformance of the

Sub

urban Land

Agency for the

year e

nded

30 June

2018 and also

fairly refle

cts the

judgem

ents exercise

d in preparin

g it.

John

Dietz

Chief E

xecutiv

e Officer

Subu

rban

Land Ag

ency

19 Sep

tembe

r 2018

Subu

rban

Lan

d Ag

ency

Stat

emen

t of P

erfo

rman

ce

For t

he Y

ear E

nded

30

June

201

8

Non

-Fin

anci

al P

erfo

rman

ce In

dica

tors

201

7-18

Indi

cato

r De

scrip

tor

Indi

cato

r Ta

rget

20

17-1

8 Ac

tual

Res

ult

2017

-18

Varia

nce

(%)

from

Tar

get

Expl

anat

ion

of M

ater

ial V

aria

nces

Affo

rdab

le

Hous

ing

Land

Re

leas

e

Publ

ic H

ousin

g 14

3 11

3 (2

1%)

30 p

ublic

hou

sing

dwel

lings

del

ayed

in G

reen

way

, sit

e ha

s bee

n id

entif

ied

and

nego

tiatio

ns a

re

unde

rway

with

Hou

sing

ACT.

Rel

ease

of t

hese

sit

es h

as b

een

defe

rred

to 2

018-

19.

Affo

rdab

le

Hous

ing

Land

Re

leas

e

Com

mun

ity R

enta

l 34

20

(4

1%)

2017

-18

rele

ases

in S

trat

hnai

rn h

ave

been

de

laye

d du

e to

an

ACAT

app

eal,

this

incl

udes

14

com

mun

ity si

tes.

Rel

ease

of t

hese

site

s has

bee

n de

ferr

ed to

201

8-19

. Th

e ab

ove

acco

unta

bilit

y in

dica

tors

wer

e ex

amin

ed b

y th

e AC

T Au

dit O

ffice

in a

ccor

danc

e w

ith th

e Fi

nanc

ial M

anag

emen

t Act

199

6.

The

abov

e St

atem

ent o

f Per

form

ance

shou

ld b

e re

ad in

con

junc

tion

with

the

follo

win

g no

tes:

( ) N

egat

ive

figur

es in

bra

cket

s

i Com

mun

ity E

ngag

emen

t ref

ers t

o th

e Su

burb

an L

and

Agen

cy’s

com

mun

ity d

evel

opm

ent a

ctiv

ities

con

duct

ed th

roug

h th

e ‘M

ingl

e Pr

ogra

m’.

This

is a

key

initi

ativ

e ai

med

at p

rom

otin

g th

e cr

eatio

n of

pro

sper

ous

and

sust

aina

ble

com

mun

ities

thro

ugh

a ra

nge

of e

vent

s, a

ctiv

ities

and

com

mun

icat

ion.

All

activ

ities

are

bas

ed o

n th

e no

tion

of e

ncou

ragi

ng n

ew re

siden

ts to

feel

par

t of t

heir

com

mun

ity a

nd b

ecom

e in

volv

ed in

com

mun

ity li

fe.

ii Th

e Su

burb

an L

and

Agen

cy re

quire

s con

trac

tors

to su

bmit

a m

onth

ly W

HS re

port

det

ailin

g W

HS in

cide

nts a

nd W

HS in

itiat

ives

with

in th

eir a

rea

of re

spon

sibili

ty.

iii T

he A

CT G

over

nmen

ts W

ork

Heal

th S

afet

y Ac

tive

Cert

ifica

tion

Polic

y re

quire

s aud

its o

f con

trac

tors

to b

e pe

rfor

med

eve

ry 1

3 w

eeks

dur

ing

the

time

whe

n th

ere

is ph

ysic

al c

onst

ruct

ion

activ

ity o

n a

deve

lopm

ent

site.

Thi

s per

form

ance

indi

cato

r mea

sure

s the

per

cent

age

of a

udits

of t

he S

LA c

ontr

acto

rs th

at w

ere

perf

orm

ed a

gain

st th

e an

ticip

ated

wor

k pr

ogra

m fo

r 201

7-18

.

iv T

he E

nviro

nmen

t, Pl

anni

ng a

nd S

usta

inab

le D

evel

opm

ent D

irect

orat

e m

aint

ain

gend

er e

qual

ity d

ata

on b

ehal

f of t

he S

ubur

ban

Land

Age

ncy.

171

Subu

rban

Lan

d Ag

ency

Statem

ent o

f Perform

ance

For the

Year E

nded

30 June

201

8

Stat

emen

t by

the

Chi

ef E

xecu

tive

Offi

cer

In m

y op

inion, the


ance is in

agreemen

t with

the

Sub

urban Land


fairly refle

cts the service pe

rformance of the

Sub

urban Land

Agency for the

year e

nded

30 June

2018 and also

fairly refle

cts the

judgem

ents exercise

d in preparin

g it.

John

Dietz

Chief E

xecutiv

e Officer

Subu

rban

Land Ag

ency

19 Sep

tembe

r 2018

Subu

rban

Lan

d Ag

ency

Stat

emen

t of P

erfo

rman

ce

For t

he Y

ear E

nded

30

June

201

8

Non

-Fin

anci

al P

erfo

rman

ce In

dica

tors

201

7-18

v

The

Envi

ronm

ent,

Plan

ning

and

Sus

tain

able

Dev

elop

men

t Dire

ctor

ate

assis

ts th

e Ag

ency

com

ply

with

all

ACT

Publ

ic S

ervi

ce d

iver

sity

polic

ies.

vi F

reed

om o

f Inf

orm

atio

n ac

tiviti

es a

re m

anag

ed b

y th

e En

viro

nmen

t, Pl

anni

ng a

nd S

usta

inab

le D

evel

opm

ent D

irect

orat

e on

beh

alf o

f the

Sub

urba

n La

nd A

genc

y.

vii I

t is a

ssum

ed th

at a

redu

ctio

n in

Fre

edom

of I

nfor

mat

ion

requ

ests

is a

n in

dica

tor t

hat t

he S

ubur

ban

Land

Age

ncy

is op

erat

ing

in a

n op

en a

nd tr

ansp

aren

t man

ner w

hile

mee

ting

its o

blig

atio

ns u

nder

the

open

acce

ss in

form

atio

n sc

hem

e.

viii

The

Boar

d Au

dit a

nd R

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SECTION D

SECTION D: NOTICES OF NON‑COMPLIANCE


173

D.1 DANGEROUS SUBSTANCESThe Suburban Land Agency was not served with any notices of non-compliance relating to the Dangerous Substances Act 2004 during 2017-18.

Further Information can be obtained from:


D.2 MEDICINES, POISONS AND THERAPEUTIC GOODSThe Suburban Land Agency was not served with any notices of non-compliance relating to the Medicines, Poisons and Therapeutic Goods Act 2008 during 2017-18.



SECTION E

SECTION E: CHIEF MINISTER, TREASURY AND ECONOMIC DEVELOPMENT


175

E. CHIEF MINISTER, TREASURY AND ECONOMIC DEVELOPMENTThe Suburban Land Agency has no items to report against this section.

SECTION F

SECTION F: EDUCATION AND TRAINING


177

F. EDUCATION AND TRAININGThe Suburban Land Agency has no items to report against this section.

SECTION G

SECTION G: HEALTH


179

G. HEALTHThe Suburban Land Agency has no items to report against this section.

SECTION H

SECTION H: GAMBLING AND RACING


181

H. GAMBLING AND RACINGThe Suburban Land Agency has no items to report against this section.

SECTION I

SECTION I: MINISTERIAL AND DIRECTOR‑GENERAL DIRECTIONS


183

I. MINISTERIAL AND DIRECTOR-GENERAL DIRECTIONTwo Ministerial Directions were issued during the reporting year, being the City Renewal Authority and Suburban Land Agency (City Renewal Authority Land Acquisition) Direction 2017 and the City Renewal Authority and Suburban Land Agency (Suburban Land Agency Payment of Funds to the Territory) Direction 2018. These Directions set out the requirements that apply to the Suburban Land Agency in exercising its function of acquiring leases of land on behalf of the Territory from private lessees and the requirement to pay the Territory 100 % of its net profit after tax. The Suburban Land Agency complied with the requirements of both of these Directions in 2017-18. A copy of these Directions are provided at Appendix A.

In 2017-18, the Suburban Land Agency completed the following land acquisitions.

LAND ACQUISITIONS

District (Property) Block and Section Acquisition Cost Date of SettlementBelconnen (Pine Ridge) Block 1600 $4,600,000.00 31 July 2017Belconnen (Wagtail Park) Block 1601 (Part) $1,698,795.31 1 June 2018Belconnen (The Vines) Block 1582 $2,200,000.00 27 June 2018

All land acquisitions were reported to the Legislative Assembly in accordance with the City Renewal Authority and Suburban Land Agency Act 2017.



SECTION J

SECTION J: PUBLIC LAND MANAGEMENT PLANS


185

J. PUBLIC LAND MANAGEMENT PLANSThe Suburban Land Agency was not custodian of public land in 2017-18 and was therefore not required to prepare any public land management plans during the year.



SECTION K

SECTION K: THIRD PARTY INSURANCE


187

K. THIRD PARTY INSURANCEThe Suburban Land Agency has no items to report against this section.

SECTION L

SECTION L: VICTIMS OF CRIME


189

L. VICTIMS OF CRIMEThe Suburban Land Agency has no items to report against this section.

SECTION M

SECTION M: WASTE MINIMISATION CONTRAVENTIONS


191

M. WASTE MINIMISATION CONTRAVENTIONSThe Suburban Land Agency has no items to report against this section.

SECTION N

SECTION N: COMMUNITY ENGAGEMENT AND SUPPORT


193

N. COMMUNITY ENGAGEMENT AND SUPPORT

Overview of approach to engagementSuburban Land Agency community engagement was guided by the following strategies outlined in the 2017-18 SOI:

> Engage with the community in a clear, honest and professional way about the land development process and projects.

> Collaborate and cooperate with Government agencies and the community to work on key government development priorities such as town centres, major transport corridors and urban infill areas.

> Engage and build strategic relationships with local communities, industry associations, special interest groups and the broader ACT community to ensure any relevant interests are identified and considered in land release activities.

> Deliver community building and development programs to encourage resident involvement and connection to their community.

> Ensure the public is properly informed of what the Suburban Land Agency is doing by building community confidence and understanding of our operations.

Community engagement activitiesThe Suburban Land Agency held community engagement activities in Gungahlin, Kingston and Ginninderry, along with various Mingle activities in the Molonglo Valley, Moncrieff and Throsby.

Gungahlin Town CentreWe worked closely with TCCS by engaging with the Gungahlin Community Council on proposed development works and road improvements in the Gungahlin Town Centre.

Kingston ForeshoreWe continued to work closely with a broad range of Kingston Foreshore stakeholders on development activities, community facilities and future plans. This included discussions with body corporates, tenants and residents, and responses to public enquiries.

We also continued to provide updates to the Kingston Barton Residents Group about the proposed Kingston Arts Precinct.

Ginninderry (West Belconnen)The ACT Government and Riverview Group entered into a joint venture in 2016 to develop an innovative master-planned community spanning the ACT and NSW border in West Belconnen. This project has set the benchmark for active community engagement, leading to a variation in the Territory Plan that allows for urban development.

The Ginninderry project was recognised by the PIA, receiving a national commendation for excellence in public engagement and community planning. Stage 1 of the development is under construction, and the project will continue to strive for excellence in community engagement by actively working with key stakeholder groups and the community in general.


Mingle ProgramThe Suburban Land Agency continued to implement a community development program, designed to build vibrant local communities within our new Greenfield estates. The Mingle Program aimed to achieve a number of social objectives to help new residents feel part of the community and encourage their involvement in community life and activities. The program also supported the creation of networks, groups and programs among residents, which will ultimately become self-sustaining.

In 2017-18, the Mingle Program continued in the Molonglo Valley (Wright and Coombs) and Moncrieff. It also commenced in Throsby. Partnership opportunities were explored with the University of Canberra and Canberra Institute of Technology (CIT) to co-deliver a version of the program in Lawson. A sustainability pre-build workshop was also delivered to land purchasers in Taylor.

Mingle was tailored for each suburb to suit demographics, resident feedback and proximity to surrounding services. We worked closely with other ACT Government Directorates to meet program objectives and deliver events.

During 2017-18, various ACT Government agency messages were communicated through Mingle communication channels, including email, Facebook, newsletters and community information nights. Messages included information on issues such as Better Suburbs, Taylor School Naming consultation, ACTION Bus network consultation and ACT Parks and Conservation engagements. Updates on the progress of development activities were also provided to the community in areas near Suburban Land Agency estates.

‘Mingle’ community engagement summary for 2017-18

Community involvement

> increased resident led events, groups and activities supported by Mingle through grants and mentorship relationship

> co-designed program of events and activities

> resident-built community book box in Wright

> establishment of Moncrieff residents group

> resident newsletter delivery group

> facilitation of partnerships between residents and stakeholders

> regular ACT Government Community Information nights using Facebook live streaming

Industry relationships and partnerships

> ACT Playgroups

> Blue Earth

> Northside Community Services

> Woodlands and Wetlands Trust

> Local Ngunnawal elders

> Conservation Council

> Molonglo Catchment Group

> Canberra Environment Centre

> Crimestoppers

> Neighbourhood Watch

> YMCA

> ACT Table Tennis

> Cricket ACT

> Basketball ACT

> Gungahlin Child and Family Centre

195

> Communities@Work

> CIT

> ACT Government Housing, Health Community Services, TCCS

Innovation

> grant and mentorship opportunities for resident initiatives

> quarterly resident led market event in Coombs

> resident-built community book box in Wright

> online resident engagement through an online photo competition

Community surveys

> resident surveys for Moncrieff and Throsby

> event evaluation surveys

> development of a community and skills asset register survey template to be used across all Mingle suburbs

Sports and fitness

> opening of the award-winning Moncrieff Community Recreation Irrigated Park, awarded in the category of Playspaces by the ACT chapter of the Australian Institute of Landscape Architects

> community sports day for Wright and Coombs

> support for a Molonglo Valley touch football team

> Treasure Trek event in Throsby promoting active living

Parks and conservation

> tree planting event at the Molonglo River

> ongoing commitment to ranger walks and education programs

> facilitation of a partnership between a resident and local rangers to support monthly resident led community cycling and walking events

> ongoing engagement with the Woodlands and Wetlands Trust

Education

> consultation with students from Charles Weston School on the Coombs 3A play space

> partnership with local Ngunnawal elders for the opening of Wagi Bridge in Moncrieff, including education on the historical and cultural significance of the local water ways

> establishment of an event toolkit for residents

Sustainability

> partnership with the ACT Government’s actsmart program to deliver a series of free sustainable workshops to purchasers

> communal composting trial in a Wright apartment complex

> establishment of garden club at Stromlo Cottage

> ACT No Waste at Community Information Night

Heritage

> partnership with the ACT Property Group to refurbish the Stromlo Cottage property for community activities


Wright and Coombs

The Mingle Program in Wright and Coombs continued to work with the Molonglo Valley Community Group, which met regularly to discuss progress in the suburbs and opportunities for new events and activities.

The program delivered 58 events and activities during 2017-18, achieving a total attendance of 2,260 people. These events and activities included a tree planting event at the Molonglo River, the resident-built community book box in Wright, resident led markets, ‘Play in the Park’ and the Cancer Council’s Biggest Morning Tea.

Two large-scale community information sessions were held to communicate development updates and information about ACT Government programs and initiatives. Both events used the Facebook live streaming function to attract a wider audience engagement.

The delivery of the Coombs 3A Play Space consultation provided an opportunity for community members to have their say on equipment and amenities for the space. A separate consultation was also conducted with students from Charles Weston School.

The Mingle Program supported an increase of resident led initiatives, including the establishment of a regular book club, seniors group and garden club which met at the Stromlo Cottage. It also provided funding and mentoring support for larger events such as the community Christmas carols and a regular community market event. During the reporting period, five community newsletters were delivered to all homes in Wright and Coombs.

Moncrieff

The Moncrieff Mingle Program continued to work with the local community during 2017-18. The program facilitated a range of events and activities to engage local residents, including two Moncrieff resident meetings. These meetings identified various new initiatives such as a resident led Diwali Festival of Lights and Christmas celebrations.

In response to the significant number of families with young children in Moncrieff, Communities@Work provided support for child minding facilities during the meetings. This led to an increase in resident participation, rising from seven to 37 people.

With support from the Mingle Program, the Moncrieff group began hosting its own resident-led playgroup and led the Clean Up Australia Day initiative in 2018.

The Mingle Program delivered 15 events and activities during 2017-18, achieving a total attendance of 1,136 people. These events and activities included the opening of the award-winning Community Recreation Irrigated Park, Explore and Snap photography adventure, ‘Play in the Park’, Yoga in the Park and Neighbourhood Safety Workshops. Three newsletters were distributed during the reporting period and one community survey has been conducted to determine overall strengths and interests.

Throsby

The Mingle Program in Throsby began community engagement as a small number of residents moved into the suburb. In 2017-18, two Mingle newsletters were produced and delivered to completed homes in Throsby. They were also emailed to all purchasers.

The Mingle Program delivered three events in Throsby, achieving a total attendance of 140 people. The events included an Actsmart Pre-Build Workshop, Brekkie in the Park, and the Throsby Treasure Trek, which engaged current and future residents to explore the suburb and discover its assets. A Mingle Facebook page and a resident led community Facebook page were also developed.

A relationship was established with the Woodlands and Wetlands Trust, who played a role in two of the events. Other partnerships included a collaboration with artsACT, which will lead to the installation and celebration of a large steel kangaroo sculpture due to be installed in the suburb in September 2018.

197

Suburban Land Agency sponsorshipsIn 2017-18, the Suburban Land Agency was approached to enter into various partnerships and sponsorship arrangements. The support requested was in the form of cash payment, in-kind support through provision of goods, labour or services, or a combination of these.

Outgoing sponsorship provided an opportunity to enhance the Suburban Land Agency’s and ACT Government’s corporate identity and to promote government delivered programs and services.

Recipient Project Purpose/Summary AmountSalvation Army Sponsorship of the Christmas Carols at Tuggeranong Town Park $5,000

Figures are GST exclusive.

Suburban Land Agency grantsGrants were provided to local community groups and individuals to support community-based initiatives that align with the objectives of the Mingle Program.

Recipient Project Purpose/Summary AmountMolonglo Valley communal composting trial

Funds provided for composting bin and three workshops. $481

Molonglo Valley Markets Funds provided for market promotion, entertainment, basic supplies and waste management for four local markets held at Stromlo Cottage Molonglo in 2017-18.

$3,364

Molonglo Valley Carols by Candlelight

Funds provided for insurance, audio visual, hall hire, promotion and basic supplies. This was the third year this event had been run.

$2,081

Molonglo Valley residents attending ABCD training workshop

Funds provided for two residents to attend an Asset Based Community Development (ABCD) workshop to assist in the ongoing community development in Molonglo Valley.

$291

MoncrieffresidentsattendingABCD training workshop

Funds provided for two residents to attend an ABCD workshop to assist in the ongoingcommunitydevelopmentinMoncrieff.

$291

MoncrieffPlaygroups Funds provided for resident led playgroup starter kit. $335

Figures are GST exclusive.



SECTION O

SECTION O: JUSTICE AND COMMUNITY SAFETY


199

O. JUSTICE AND COMMUNITY SAFETYThe Suburban Land Agency has provided input to the Justice and Community Safety Directorate in relation to bushfire risk management, FOI, human rights and legal services directions for inclusion in the 2017-18 Justice and Community Safety Directorate Annual Report.



SECTION P

SECTION P: PUBLIC SECTOR STANDARDS AND WORKFORCE PROFILE


201

P. PUBLIC SECTOR STANDARDS AND WORKFORCE PROFILEThe Suburban Land Agency provided input to the Public Sector Standards Commissioner in relation to culture and behaviours, Public Interest Disclosures and workforce profile for inclusion in the 2017-18 State of the Service Report.



SECTION Q

SECTION Q:TERRITORY RECORDS


203

Q. TERRITORY RECORDSThe Suburban Land Agency has provided input to the Director of Territory Records on our records management program for inclusion in the 2017-18 Director of Territory Records Annual Report.




APPENDIX A

1

Authorised by the ACT Parliamentary Counsel—also accessible at www.legislation.act.gov.au

Australian Capital Territory

City Renewal Authority and Suburban Land Agency (Suburban Land Agency Land Acquisition) Direction 2017 Disallowable instrument DI2017– 262

made under the

City Renewal Authority and Suburban Land Agency Act 2017, section 63 (Minister must make directions for land acquisition)

1 Name of instrument This instrument is the City Renewal Authority and Suburban Land Agency (Suburban Land Agency Land Acquisition) Direction 2017.

2 Commencement This instrument commences the day after it is notified.

3 Suburban Land Agency – Land Acquisition Direction I make the directions set out in the schedule in relation to the acquisition of land by the Suburban Land Agency.

Andrew Barr MLA Treasurer 31 October 2017

205

2


SCHEDULE

Suburban Land Agency - Land Acquisition Direction 1. Application

1.1. This direction applies to the Suburban Land Agency in exercising its functions of acquiring leases of land on behalf of the Territory from private lessees.

1.2. This direction does not apply to: a) acquisitions of land previously approved under the Planning and

Development (Land Acquisition Policy Framework) Direction 2014 (No 1)(repealed);

b) land transferred from the Territory, other Territory entities or the Commonwealth of Australia to the Suburban Land Agency;

c) the acquisition of rights, such as easements, over leased territory land by the Suburban Land Agency.

2. Land Acquisition – Mandatory Business Cases

2.1 The Suburban Land Agency must provide to the Minister for endorsement a business case for all proposed land acquisitions to which this direction applies.

2.2 Each business case must include an analysis of the following issues: a) the financial implications relating to the proposed acquisition,

including provision of: i. any valuation provided to the Suburban Land Agency by the

seller; and ii. all valuations considered by the Suburban Land Agency in

accordance with the agencies policies regarding valuations; and

b) the current and future status of the land under the Territory Plan, including any conditions on the Crown lease;

c) the purpose for which the proposed land is to be acquired, including how the proposed acquisition:

i. meets the objects and functions of the Suburban Land Agency set out in the City Renewal Authority and Suburban Land Agency Act 2017 (the Act);

ii. meets the requirements of the Territory Plan including the Statement of Strategic Directions, the Statement of Planning Intent (given under s16 of the Planning and Development Act 2007) and any other the relevant Government policies relating to land;

iii. addresses, and is as far as practicable consistent with the Suburban Land Agencies Statement of Intent issued under the Financial Management Act 1996 for the agency; and


3


d) how the proposed land acquisition, including the future use of the land:

i. represents value for money (as defined in the Government Procurement Act 2001) for the Territory;

ii. will assist the Government to maximise the community benefits from land development and deliver residential, commercial or industrial development that is in the public interest; and

iii. supports development that is environmentally sustainable; e) the outcome of consultation with all relevant stakeholders, including

the Under Treasurer and Directors-General of Environment, Planning and Sustainable Development and Transport Canberra and City Services, on the proposed land acquisition;

f) a risk assessment of the proposed acquisition of land; and g) any other additional information relevant to the Minister’s

consideration of the proposed acquisition to which the business case relates.

3. Business Case Approval

3.1 Prior to any acquisition of land to which this direction applies, the following approval steps must be satisfied:

a) The Suburban Land Agency must present a draft business case in accordance with part 2 above, which is provided to the Under Treasurer and Directors-General of Environment, Planning and Sustainable Development and Transport Canberra and City Services for consultation; and

b) Upon completion of consultation required at 3.1(a), the Suburban Land Agency must provide a final business case to be submitted by the Environment, Planning and Sustainability Development Directorate for consideration by the Minister.

3.2 The Minister may approve or reject a final business case for the acquisition of land by the Suburban Land Agency, following consideration by the Executive.

3.3 The Suburban Land Agency may only acquire land following the Minister’s approval of the final business case in accordance with this Direction.

207

Unauthorised version prepared by ACT Parliamentary Counsel’s Office

Australian Capital Territory

City Renewal Authority and Suburban Land Agency (Suburban Land Agency Payment of Funds to Territory) Direction 2018 Notifiable instrument NI2018–224

made under the

City Renewal Authority and Suburban Land Agency Act 2017, S 54, (Agency payment of funds to Territory) 1 Name of instrument

This instrument is the City Renewal Authority and Suburban Land Agency (Suburban Land Agency Payment of Funds to Territory) Direction 2018.

2 Commencement This instrument commences on the day after its notification day.

3 Suburban Land Agency – Payment of Funds to Territory

I direct the Agency set out in the schedule to make payments of funds to the Territory.

Andrew Barr Treasurer 30 April 2018


Unauthorised version prepared by ACT Parliamentary Counsel’s Office

SCHEDULE

Suburban Land Agency– Payment of Funds to the Territory General Dividend Policy

1. Application a. This direction applies to the Suburban Land Agency to pay funds to the

Territory.

2. Payment amount a. The Suburban Land Agency is to pay to the Territory a dividend of

100 per cent of its net profit after tax (dividend payout ratio). b. This amount excludes gifted assets.

3. Payment amount – different dividend payout ratio

a. The Treasurer will consider a different dividend payout ratio for a particular financial year if the Agency Board provides a written request for the proposed different dividend payout for that financial year.

b. In considering the written request, the Treasurer must have regard to s 54(3) of the City Renewal Authority and Suburban Land Agency Act 2017 (ACT).

c. The Treasurer will provide notification to the Agency Board if approval is given to change the dividend payout ratio for a particular financial year.

d. In the event of the Treasurer’s approval, the dividend payout ratio of 100 percent in item 2 of this schedule will be modified by the different dividend payout ratio as approved by the Treasurer for the relevant financial year.

4. Dividend payment a. Payment of the dividend occurs in two instalments:

i. The first instalment, comprising of 80 per cent of the estimated net profits after tax for the current year is payable by 30 June of each financial year; and

ii. The second instalment of the balance of the actual net profit after tax is due by 31 October of each year following the completion of the financial statements.

b. The Treasurer may approve the payment of the dividend to occur on terms other than the above, on the condition that the Agency Board provide a written request for the proposed alternative payment for that particular financial year.

209

INDEX

Aabbreviations and acronyms, 4accessibility for all people, 2ACT Audit Office, 8, 54–55, 160–161ACT Civil and Administrative Tribunal, 21ACT community as principal client, 12ACT Government Active Certification Program, 27ACT Government Call Tender schedule, 25ACT Government Contracts Register, 152ACT Government directorates and other agencies and

authorities, 12ACT Government procurement website, 25ACT Insurance Agency (ACTIA), 27ACT Integrity Policy, 29ACT Legislation Register, 7ACT Public Service Code of Conduct 1992, 29ACT Public Service Directorate annual reports, 8ACT Public Service values, 10, 20Acting Auditor-General, 55, 161active travel, 37, 40Administrative Arrangements, 20affordable living, 10, 12, 21, 23, 24, 35, 37, 39age group of staff, 33Annual Reports (Government Agencies) Act 2004, 6Annual Reports (Government Agencies) Notice 2017, 6Asset Recycling Initiative (ARI), Commonwealth, 21, 22assets, financial, 22, 50assets management, 151Attraction and Retention Initiatives (ARIns), staff, 34Audit and Risk Committee, 11Audit and Risk Officer, 27Auditor-General, Acting, 55, 161audits

ACT Audit Office, 8, 54–55, 160–161certification, 21, 27internal, 27, 28

BBARC (Board Audit and Risk Committee), 11, 20, 27, 28, 29BARC Charter, 28Belconnen land releases, 21Berry, Yvette, 15biodiversity in design and construction, 23, 35Board, 11, 15, 16–20see also Chair of Board

Board Audit and Risk Committee (BARC), 11Braddon, sites adjacent to, 21broadacre zoned land, 26builders, 12Bulless, Neil, 15business improvement, 21Business Operations Manager, 29Business Operations Team, 13business processes, 25

Ccapital works, 147–150casual staff, 33certificate of transmittal, 6certification audits, 21, 27Certification Program, 27Chair of Board, 6, 17, 57, 162

report, 20Chief Executive Officer, 6, 15, 58, 163

remuneration, 19report, 21–22responsibilities, 12–13

Chief Financial Officer, 14, 15, 59Chief Minister, Treasury and Economic Development

Directorate (CMTEDD), 174–175Safety Support Team, 30

choice of land, 10CIC Australia Limited, 19City Renewal Authority and Suburban Land Agency Act 2017,

11, 12, 16, 20, 21, 23, 31, 183City Renewal Authority (CRA), 20Civil Contractors Federation (CCF), 27civil infrastructure construction, 147–149classification of staff, 32clients and stakeholders, 12climate change adaptation, 21, 36code of conduct, 29commercial land, 11, 13, 20Commissioner for Public Administration, 201Commonwealth Asset Recycling Initiative (ARI), 21, 22communities

inclusive, 23–24needs of, 21people-focussed, 37

community council, 12community engagement, 193–196


community groups, 12, 196community housing, 12, 21, 39Community Housing Canberra Affordable Housing, 19community purpose land, 11, 13, 20, 21–22community safety

input into Justice and Community Safety Directorate Annual Report 2017-18, 199

competitive neutrality, 43compliance statement, 7–8contracts and contractors, 12, 21, 27

government contracting, 152–158Contracts Register, ACT Government, 152Coombs

community engagement, 196corruption see fraudCrace Developments Pty Ltd, 19Crace joint venture, 19crime prevention, 37cultural heritage preservation, 37culture, 21cycle path networks, 36

DDangerous Substances Act 2004, 173dangerous substances non-compliance, 173Dawson, Angus, 16, 19Defence Housing Australia, 19deliverables, 11Denman Prospect 2 releases, 22Deputy Chair of Board, 17Deputy Chief Executive Officer, 13, 15design and construction

biodiversity in, 23sustainable outcomes, 35

development of suburban land, 11, 12, 13, 21development projects, 10, 13–14, 19Dietz, John, 6, 15, 21–22, 58, 163Directions (2017 Annual Report Directions), 7Directions Overview, 7Director, Urban Project, Sales and Marketing, 15Director of Territory Records, 203Director of Territory Records Annual Report 2017-18, 203Directorate and Public Sector Body Annual Report

Requirements, 7Directorate and Public Sector Body Specific Annual Report

Requirements, 7disability, people with, 33diversity in workplace, 33

Eecologically sustainable development, 10, 12, 23

environmental sustainability, 35–36social sustainability, 37–39sustainable development performance, 40

economic growth and diversification, 12education and training, 176–177Electronic Document and Records Management System,

40Elton, Jaime, 34emissions offsetting and reduction, 36employees see staffenergy consumption, 40energy use reduction, 36enforceable undertakings, 30Englobo parcel in Lawson, 21Environment, Planning and Sustainable Development

Directorate (EPSDD), 12, 20Environment, Planning and Sustainable Development

portfolio, 12environmentally sustainable development see ecologically

sustainable developmentEPSDD (Environment, Planning and Sustainable

Development Directorate), 12, 20EPSDD People and Capability team, 21, 30establishment of Agency, 11estate management see Valuations and Estate

Management teamethical behaviour, 29excellence in public engagement and community planning,

national commendation, 193Executive Director, Greenfield, 15Executive Support Unit, 13external reporting and requirements, finance, 14

Ffeedback from readers, 7Finance team, 14Financial Accounting section, 14Financial Controller, 14financial management, 16

analysis, 42–52Financial Management Act 1996, 11, 16financial performance, 45–52

outcome, 22financial returns to the Territory, 44financial statements, 53–146

audit, 8, 54–55Fitzgerald, John, 6, 16, 17, 20, 57, 162Fraud and Corruption Control Plan, 29Fraud and Corruption Prevention Plan, 29Fraud and Corruption Prevention Policy, 25

211

Fraud and Corruption Prevention Training for staff, 29fraud and corruption risk, 43fraud prevention, 6, 29Fraud Risk Register, 29full time staff, 32, 33functions and services, 12

Ggambling and racing, 180–181gender of staff, 32, 33Gentleman, Mick, 15geotechnical assessments, 35Ginninderra Falls Association, 21Ginninderry Project, 19, 21

community engagement, 193financial statements, 123–146scrutiny of, 26

Gordon, Tom, 15governance, 20Governance Program, 28government contracting, 152–158grants, 197Greenfield branch, 13greenfield projects, 13, 194greenhouse gas emissions, 12, 35, 40Greenway East, 21Greenway releases, 21Gungahlin Town Centre

community activities, 193releases in, 21

HHaig Park, sites adjacent to, 21health, 178–179health and safety in workplace, 21, 27healthy population, 10heritage and geotechnical assessments, 35Housing and Suburban Development, Minister for, 15, 20, 21housing choices, 10, 23, 35, 39housing delivered in 2017-18, 39housing targets, 12, 39Howman, Peter, 16, 18human resources management, 31–34

see also staffHume industrial land release, 21

IImplementation of the Chief Executive Financial

Instructions, audit, 28improvement, prohibition or non-disturbance notices, 30inclusive communities, 23–24independent audit report, 54–55Indicative Land Release Program (ILRP), 13, 21Indigenous Australian staff, 33industrial land, 11, 13, 20, 21industry and business groups, 12infill, urban, 13infrastructure construction, 147––149injury and incident free work sites, 27integrity risk assessment, 29internal accountability, 16–22internal audit, 28Internal Audit Charter, 27international industry and business groups, 12investigations conducted, 27investment policy, 25

JJoint Venture Board, 19joint venture management committees, 19joint ventures see Crace joint venture; Ginninderry ProjectJones, Suzanne, 16, 17justice and community safety, 198–199Justice and Community Safety Directorate Annual Report

2017-18, 199

KKingston Barton Residents Group, 193Kingston Foreshore stakeholders, 193

Lland acquisitions, 183land choice, 10Land Development Agency (LDA), 19, 20, 147land for community purposes, 11Land Rent Scheme, 24land sales revenue, 22landscaping projects, 150Lawson releases, 21LDA (Land Development Agency), 19, 20, 147LDA Complete Audit Recommendations, January 2010 to

June 2017, audit of, 28


LDA Staff Entitlements, audit, 28leases of land, buying and selling, 12Lee, Joseph, 15, 59legislation

Annual Reports (Government Agencies) Act 2004, 6City Renewal Authority and Suburban Land Agency Act

2017, 11, 12, 16, 20, 21, 23, 31, 183Dangerous Substances Act 2004, 173Financial Management Act 1996, 11, 16Medicines, Poisons and Therapeutic Goods Act 2008, 173Planning and Development Act 2007, 183Public Sector Management Act 1994, 12, 29Remuneration Tribunal Act 1995, 19Work Health and Safety Act 2011, 21, 30

length of service, staff, 33liabilities, 51liquidity, 52local industry and business groups, 12

MMacgregor community use site, 21Machinery of Government arrangements, 147Mandatory Fraud and Corruption Prevention Training, 29McLellan, Julie Garland, 16, 18Medicines, Poisons and Therapeutic Goods Act 2008, 173medicines, poisons and therapeutic goods non-

compliance, 173members of Board, 16, 17–19

remuneration, 19Mingle Program, 14, 22, 23, 28

community engagement, 194–195grants to, 197

Mingle Program team, 14Minister for Housing and Suburban Development, 15, 20, 21Minister for Urban Renewal, 15, 20, 21Ministerial Directions, 182–183mission and values, 10mixed-use land, 20Molonglo Valley Community Group, 196Molonglo Valley development, 21Moncrieff

community engagement, 196sale of non-government school site in, 22

Mulligans Flatdevelopment of learning centre on edge of, 22

multi-unit sites, 21

Nneighbourhoods, people-focussed, 10, 37non-compliance notices, 172–173non-disturbance notices, 30non-English speaking background staff, 33non-urban land release program, 21–22North Coombs construction and sales, 21North Wright construction and sales, 21Northbourne Avenue sites, 21notices of non-compliance, 172–173

Oobjectives

Agency, 42performance, 23–25statutory, 11

office accommodation, 151Office of the Chief Executive Officer, 12–13operating surplus, 20, 22operational risk, 43operations, 21–22organisational overview, 10–22organisational structure, 12–15

Ppaper usage, 40part time staff, 33pedestrian and cycle path networks, 36People and Capability team, 30People and Transition Committee, 11, 20, 31people-focussed neighbourhoods, 10, 37people with disability, 33Performance Agreement, staff, 31performance analysis, 23–25Performance of the Mingle Program, audit, 28performance statement, 159–171

audit, 8, 160–161permanent staff, 33Peters, Clint, 15Planning and Development Act 2007, 183Planning Institute of Australia, national commendation,

193poisons non-compliance, 173portfolio, 12procurement, 25, 152–158prohibition notices, 30Project Accounting section, 14

213

Project Control Group, 19public and private housing in new suburbs, 12public housing dwellings, 39public housing site releases, 21public land management plans, 184–185Public Sector Management Act 1994, 12, 29Public Sector Management Standards 2006, 29Public Sector Management Standards 2006, Part 2, 6public sector standards and workforce profile

input into 2017-18 State of the Service Report, 201Public Trading Enterprise, 43

Rracing and gambling, 180–181recruitment of staff, 31Red Hill community use site, 21Red Hill Housing Precinct, 21, 22releases and development of suburban land, 11, 12, 13, 20,

21remuneration, 19Remuneration Tribunal, 19Remuneration Tribunal Act 1995, 19renewable energy use, 36Reporting by Exception, 7residential land releases, 11, 12, 13, 20, 21return to work policies, 21, 30reusing materials during construction, 36revenue from land sales, 22risk management, 12, 25, 27

integrity risk assessment, 29priorities, 43

Risk Management Framework, 27Risk Management Plan, 27risk registers, 25, 27, 29, 43Riverview Pty Limited, 19role, 11rural leases, 26

Ssafe and healthy population, 10, 35, 37–38safety in workplace, 21, 27Safety Management Framework, 20, 21, 30Safety Management System update, 30Safety Support Team, 30Sales and Marketing team, 13–14scrutiny, 26

see also auditsSelect Committee on Estimates 2017-18, 26

Senior Executive Responsible for Business Integrity Risk (SERBIR), 27, 29

Senior WHS Manager, 27, 30separations of staff, 34services and functions, 12Sharma, Ajay, 55, 161single residential sites, 21SME (Small Medium Enterprises)

government contracting, 152–158social and environmental sustainability see ecologically

sustainable developmentsocial inclusion, 10, 35, 38solar access to homes, 36Southquay releases, 21sponsorships, 197staff

age group of, 33attraction and retention, 34classification, 32diversity, 33by Division, 32employment category, 33full/part time, 33gender, 32, 33length of service, 33recruitment and on-boarding of, 31, 34separations, 34survey, 31

Standing Committee on Planning and Urban Renewal, 26State of the Service Report 2017-18, 201Statement of Expectations, Minister, 21Statement of Intent (SOI) 2017-18, 11statutory authority, 12, 20statutory objectives, 11strategic focus areas, 21strategic risk, 43Strategic Risk Register, 25, 27Strathnairn community housing, 21Suburban Land Agency

Board, 6, 11, 15, 16–20Chief Executive Officer, 6, 12–13, 15, 19, 21–22clients and stakeholders, 12establishment, 11, 20financial outcome, 22functions and services, 12, 20mission and values, 10objectives, 42operations, 21–22organisational structure, 12–15role, 11strategies, 43–44vision, 10, 20, 21


suburban land releases and development, 11, 12, 13, 21suppliers, 12survey of staff, 31sustainable development see ecologically sustainable

development

Ttargets for housing, 12, 21Tatebrook Pty Ltd, 19Taylor releases, 21, 22, 24tender schedule, 25territory records, 202–203

input into 2017-18 Director of Territory Records Annual Report, 203

therapeutic goods non-compliance, 173third party insurance, 186–187Throsby

community engagement, 196releases, 21, 22

training for staff, 29transmittal certificate, 6transport emissions, 36transport fuel consumption, 40Tuggeranong releases, 21Turner, sites adjacent to, 212017 Annual Report Directions (the Directions), 7

Uurban infill, 13urban projects, 13–14Urban Projects, Sales and Marketing Branch, 13–14Urban Projects team, 13urban renewal, 12, 24Urban Renewal, Minister for, 15, 20, 21

VValuations and Estate Management team, 14value for money, 12, 25values and vision, 10, 20victims of crime, 188–189

Wwaste consumption, 40waste minimisation contraventions, 190–191water consumption, 40water quality improvement, 36Water Sensitive Urban Design measures, 36water use reduction, 36West Belconnen Joint Venture (Ginninderry) see

Ginninderry ProjectWhole of Government Annual Reporting, 8Whole of Government strategies, 12Whole of Government Workplace Health and Safety

policies, 21, 30WHS (Work Health and Safety), 20, 21, 27, 30WHS Framework, 25, 30WHS management system, 30Work Health and Safety Act 2011, 21, 30work health and safety (WHS), 20, 21, 27, 30workforce profile

input into 2017-18 State of the Service Report, 201Wright

community engagement, 196mixed use site, 21



ANNUAL REPORT 2017-18

ANNUAL REPORT 2017–18 - Suburban Land Agency · of annual reports. The 2017-18 Suburban Land...

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Transcript of ANNUAL REPORT 2017–18 - Suburban Land Agency · of annual reports. The 2017-18 Suburban Land...