2019 2018/ REPORT ANNUAL Maaman Ginnung Gnarla (Good Spirit. Watch Over Us.)
The Metropolitan It is a great privilege to be working on Redevelopment Authority Whadjuk Boodja and the MRA is committed (MRA) would like to to fostering a long-term relationship with acknowledge that our work the Noongar people as we create new places across metropolitan Perth. is undertaken on Whadjuk Noongar Boodja, and we As the Whadjuk people call upon their pay our respects to the ancestors to watch over us, we acknowledge all our ancestors. Elders past and present.
2 — MRA ANNUAL REPORT 2018/19 — OVERVIEW STATEMENT OF COMPLIANCE GOVERNANCE
Statement of Compliance 2 Organisation Structure 63 Board and Committees 64 FOREWORD 2018-19 Board and Committee Remuneration 67 About us 4 Executive Management 73 Executive Summary – Chairperson’s Review 6 INDEPENDENT AUDITORS REPORT Acting Chief Executive Officer Report – The year in review 8 Independent Auditors Report 76
OVERVIEW FINANCIAL STATEMENTS
2018/19 Performance Highlights 12 Certification of Financials Statements 84 2018/19 Significant Issues 16 Financial Statements and Supporting Notes 86 Performance Management Framework 18 KEY PERFORMANCE INDICATORS Kaart Koort Waarnging – Head, Heart, Talking Framework 20 Certification of Key Performance Indicators 143 KKW Framework – Yagan Square Case Study 24 Key Performance Indicators 144 The MRA respectfully acknowledges MRA’s Strategic Direction 31 and pays tribute to the Whadjuk people; DISCLOSURE AND LEGAL COMPLIANCE the traditional owners and custodians of AGENCY PERFORMANCE Administering Legislation 157 the land on which we work. Project life statistics at a glance 35 Disclosures and Legal Compliance 158 Agency Performance Redevelopment Areas 36
Some content may not be fully accessible including some documents and submissions by third parties. Please note that the Annual Report can also be provided in other formats. Please contact us to request alternate document formats. Hon Ben Wyatt MLA Treasurer; Minister for Finance; Aboriginal Affairs; Lands 11th Floor, Dumas House 2 Havelock Street West Perth, WA 6005
Dear Minister In accordance with Section 63 of the Financial Management Act 2006, we hereby submit for your information and presentation to Parliament the Annual Report of the Metropolitan Redevelopment Authority for the reporting period 1 July 2018 to 30 June 2019. The Annual Report has been prepared in accordance with the provisions of the Financial Management Act 2006.
George McCullagh Simon Read Sean Henriques Board Chairperson Audit and Risk Committee Acting Chief Executive Officer Chairperson
2 — MRA ANNUAL REPORT 2018/19 — STATEMENT STATEMENT
Yagan Square Bunuru Festival 2019.
OVERVIEW — MRA ANNUAL REPORT 2018/19 — 3 Yagan Square lights up with Noongar patterns and paintings.
PURPOSE To deliver redevelopment projects of strategic significance in metropolitan Perth.
VISION Dynamic, authentic and sustainable places.
VALUES Listen | Lead | Communicate | Innovate
The Metropolitan Redevelopment Authority (MRA) was established pursuant to the Metropolitan Redevelopment Authority Act 2011 (the Act) and began operations in January 2012 as an amalgamation of four existing redevelopment authorities across metropolitan Perth.
With a combination of regulatory planning and land development powers, the MRA takes projects from vision setting, through master planning, to development, sales, project marketing, place management and activation. The MRA creates successful communities where people want to live, work and visit.
4 — MRA ANNUAL REPORT 2018/19 — FOREWORD FOREWORD
Scarborough foreshore. Perth Cultural Centre.
Pursuant to section 7 of the Act, the functions of With five Redevelopment Areas in the MRA’s Working together with partners, the MRA the MRA are: portfolio, the MRA has the capacity to transform revitalises communities and builds a distinctive urban spaces and meet the challenges of Perth’s sense of place that transforms the city and a. to plan, undertake, promote and coordinate future growth by creating strong communities, redefines key areas of metropolitan Perth for the development of land in redevelopment while also encouraging sustainability and future generations. areas in the metropolitan region; and innovation in urban development. In November 2017, the State Government b. for that purpose: A unique combination of planning and announced the merger of the MRA and i. to prepare and keep under review strategic development powers, and place management LandCorp into a single Land Development and policy documents in relation to the expertise, enables the MRA to deliver successful Agency as part of its ongoing bid to drive development of land in redevelopment communities that offer new residential and efficiencies and improve outcomes for land areas; commercial opportunities, public open space development and housing affordability. and supporting infrastructure that benefit ii. under Part 5 [of the Act] to prepare and Work to facilitate this merger is ongoing as visitors, workers and residents alike. keep under review a redevelopment the MRA continues its creation of successful scheme for each redevelopment area; and With innovative design and planning – and in communities where people want to live, work iii. under Part 6 [of the Act], to control partnership with government, communities and visit. development in each redevelopment area. and industry – the MRA promotes economic wellbeing, urban efficiency, and social inclusion, connects people and communities, and protects and restores the environment wherever possible.
FOREWORD — MRA ANNUAL REPORT 2018/19 — 5 EXECUTIVE SUMMARY CHAIRPERSON’S REVIEW
During 2018-19 the MRA continued Western Australia, the MRA is well positioned Projects like Yagan Square, Elizabeth Quay with the implementation of measures to help realise the State’s strategic planning and Scarborough Foreshore attract visitation to improve the accountability, agenda, including the METRONET vision and and elevate Perth’s profile on a national and related infill and urban renewal objectives. international stage. transparency and governance of the organisation, including more effective In June 2019, the MRA entered a new chapter The delivery of world-class infrastructure and timely public disclosure of planning in its operations when the State Government has created a vibrant, connected city and announced that the Midland, Bayswater and is exemplified at Yagan Square, which advice and better information sharing Forrestfield Station Precincts will be brought received awards from the WA Heritage with communities, stakeholders and into a new Redevelopment Area known as Council and locally and nationally from the development proponents. METRONET EAST. Vibrancy, housing and jobs Urban Development Institute of Australia will be the focus of precinct revitalisation at (UDIA). Yagan Square’s success reflects the these sites. METRONET EAST will maximise determination and focus of all at the MRA who Further work is underway as the MRA development opportunities and provide have worked on this project over the many continues to align its processes and practices market certainty to capitalise on the transport years since the project was commissioned. with changes in prospect for the wider State infrastructure delivered under METRONET. In particular, the influence of a strong and planning system. During the course of the year, it has been valued working relationship with the Whadjuk In addition, as other long-running MRA pleasing to see the MRA’s roles in planning, Working Party has defined this project. projects conclude, a process to reinstate development, delivery and activation The protocols of Kaart Koort Waarnginy (Head, the jurisdictional role of our respective local acknowledged in an array of national and local Heart, Talking) shapes the relationship and government partners has commenced. awards. These accolades recognised the role the work with our Indigenous partners. The MRA MRA has played across its five redevelopment Going forward, for MRA the intent is to considers it to have been a great privilege to areas to transform communities. New ensure that priority government initiatives work on Whadjuk Boodja (Whadjuk Country) destinations provide a solid foundation are delivered through a consolidation of with the Whadjuk Working Party during this for a burgeoning tourism market and have government land development activities year. We look forward to continuing this catalysed private investment and economic and with LandCorp. As part of a new single entity association in the future. responsible for land development across employment growth.
6 — MRA ANNUAL REPORT 2018/19 — FOREWORD FOREWORD
I also take this opportunity to thank the Hon These projects will continue to involve the MRA Rita Saffioti MLA, Minister for Planning* for her working with its land agency partner LandCorp. leadership and support for the MRA. The renewal On behalf of the Board, I also acknowledge the and revitalisation challenges for our city are work and contribution of the men and women significant and it has been a privilege for all at who work at the MRA. Under the leadership of the MRA to assist with the METRONET initiative. Sean Henriques and the Executive Committee I particularly wish to acknowledge the role all have worked to achieve the best outcomes the Minister and Government have played in for our city, under changing circumstances. supporting a fundamental reconstruction of The Board thanks you all for your work and GEORGE MCCULLAGH the financial model that supports the MRA’s dedication. operation. Fiscal repair has been an important CHAIRPERSON I also wish to extend my appreciation to my foundation element in positioning the MRA fellow Board Directors and the members of the for a valued role in future land agency MRA’s five Land Redevelopment Committees. The year ahead represents an delivery roles. You have made a significant contribution to exciting period for Perth and With support from government, ongoing the MRA throughout the year and continue to contribution the MRA plays as recurrent funding has replaced debt as provide guidance and input that will provide a a part of a consolidated land funding for the MRA’s regulatory functions, solid strategic direction for 2019-20 and beyond. development agency. with $16.3million of funding provided for The valued contribution and assistance of 2018-19 expenditures and $41million of equity project delivery partners across State and Local injected to repay debt associated with the Government, private enterprise and industry historic expenditures incurred in undertaking has underpinned the ongoing revitalisation and these functions. Equity funding has also been renewal of our city. provided to repay the debt held by the MRA in relation to the construction of various State The year ahead represents an exciting period assets and for remediation works, with a total for Perth and the MRA as part of a consolidated of $126million received in 2018-19. A program is land development agency. With significant in place to enable a further $77million of legacy new projects now underway at Subi East, or non-commercial debt to be addressed in the METRONET EAST, and the East Perth Power near term. Station we are well positioned to capitalise on our state’s natural advantages, infrastructure The Government has also made significant and transport networks. investments to unlock the potential of the East Perth Power Station and is funding We look forward to contributing to the future of infrastructure at the Forrestdale Business Park. our ever-changing city.
* In July 2019 the Premier formally transferred administration of the Metropolitan Redevelopment Act 2011 from the Minister for Planning to the Minister for Lands
FOREWORD — MRA ANNUAL REPORT 2018/19 — 7 ACTING CHIEF EXECUTIVE OFFICER REPORT THE YEAR IN REVIEW
The 2018-19 year has been a period of • winning a range of state and national industry Yagan Square’s first birthday celebration was a realisation, resolution and recognition awards across several of our projects; major milestone for both the MRA and for the people of Perth, who have embraced the space for the MRA. • celebrating the first full year of operation since it opened in March 2018. A sought-after at Yagan Square and seeing the revitalised performance venue, Yagan Square has hosted Scarborough foreshore in full swing over more than 200 sporting and cultural events summer; We have been proud to receive a series of including the Pride March, Fringe World, Le accolades for our flagship projects, as we • the evolution of Elizabeth Quay continues Dîner en Blanc, Perth Wildcats marches and the progressed our work to reinvigorate our five with the first major buildings reaching conclusion of Walk for Reconciliation as part of redevelopment areas and contribute to Perth’s practical completion; NAIDOC week. positioning as a vibrant international city. • the culmination of over 10 years of work As a showcase of Western Australia's rich In line with the State Government’s commitment on the Perth City Link project with the Aboriginal culture and culinary excellence, to fiscal responsibility, the MRA continued to issuing of the land titles over the top of the Yagan Square was lauded by Forbes and the implement a suite of financial measures during underground transport infrastructure; New York Times’ on their places to visit lists the year to ensure a financially robust and • releasing an exciting new vision for Subiaco in 2019. Yagan Square also received the 2019 sustainable model on which to base its operations East; WA Heritage Award for best interpretation into the future. Our investment attraction strategy project, the 2018 State and 2019 National Urban also delivered strong returns on investment, • commencement of demolition of redundant Development Institute of Australia (UDIA) despite a challenging market, with solid interest infrastructure in Kelmscott as a precursor to Award for Excellence in urban renewal along in land, leasing and business opportunities at METRONET’s Denny Avenue level crossing with the prestigious UDIA President’s Award for Yagan Square, Elizabeth Quay, Perth City Link, removal; and best overall project across the country. and Midland. • the announcement of the METRONET East I believe that Yagan Square represents what will In addition to seeing 221 development applications Redevelopment Area being expanded to arguably become the MRA’s greatest legacy - a approved representing a total value of $869million, include the areas surrounding the Bayswater symbol of the cultural compact between the some key highlights in 2018-19 included: and Forrestfield stations. Whadjuk traditional owners and the MRA that demonstrates what can be achieved through working together in a truly collaborative process.
8 — MRA ANNUAL REPORT 2018/19 — FOREWORDPERFORMANCE FOREWORD
Together, we retraced 2,000 generations of Outside of the Perth CBD, the MRA commenced ACTING CHIEF EXECUTIVE OFFICER REPORT history, landscape and stories to define what we work in Kelmscott’s Urban Renewal Project wanted to create as the new heart of the city. As including METRONET’s Denny Avenue level a result, we have reconnected the past with the crossing removal. The demolition of five State- THE YEAR IN REVIEW present and hopefully the future at Yagan Square owned houses will make way for the Davies – and, in doing so, our people and our land. Road underpass, with the Denny Avenue level crossing removal facilitating activation of the Another MRA project that has reshaped Perth’s area around Kelmscott Train Station as part of physical and cultural landscape, in a different but the Kelmscott METRONET precinct. The MRA equally transformative way, is Elizabeth Quay. also approved a development application for SEAN HENRIQUES In 2018-19, we celebrated the Quay’s third year of a new depot facility in Bellevue, which will be ACTING CHIEF EXECUTIVE OFFICER operation, with several development milestones the home to the State Government’s $1.6billion achieved. Private development of new residential, Railcar Program, which will deliver 102 new hotel and serviced apartments, commercial and railcars (17 six-car sets) needed for METRONET The successes of 2018-19 retail space forged ahead during the year and projects, and 144 railcars (24 six-car sets) to reflects the team’s exceptional neared completion at 30 June, with the Ritz-Carlton replace the first electric trains on the Transperth professionalism, capability and hotel scheduled to open in the coming months. network. capacity, along with an unwavering The focus now moves to the western portion of the Employment and investment attraction commitment to get the job done. Quay with development at EQ West imminent and have also underpinned our progress within construction to commence on Lot 7 after the MRA the Scarborough Redevelopment Area. granted development approval for Chevron’s new The Scarborough foreshore redevelopment Australian headquarters during the year. achieved its first full year of operation and the After an extensive and rigorous process, the new community amenities were embraced MRA also granted development approval for a by locals and visitors, earning a UDIA Award $158million Perth Hub twin tower development for Excellence and a Planning Institute of adjacent to Perth Arena in the Perth City Link Australia Award for Excellence in the process. project. This approval will enable a critical Additionally, 11 development applications were piece of the project to be delivered, including approved in the Scarborough Redevelopment hundreds of apartments and new hotel rooms, Area for 2018-19 at a value of $52million. to support residential, business and tourism growth and re-establish the vital connection between Perth’s CBD and Northbridge.
FOREWORD — MRA ANNUAL REPORT 2018/19 — 9 Railway Square, Midland Workshops.
10 — MRA ANNUAL REPORT 2018/19 — FOREWORD FOREWORD
The Subiaco East project will allow the MRA planning processes and focused on how the MRA a combined planning and delivery agenda that and LandCorp the opportunity to replicate fulfils its planning authority role. It also will shape Perth’s development for decades to this success and build upon on a much larger examined opportunities to enhance procedural come. Likewise, I acknowledge and thank the scale over the coming years. The vision for transparency while maintaining operational MRA Board for their strategic direction and guidance throughout the year, and their Subiaco East was unveiled during the year, after efficiency. more than 12 months of consultation. Work to continued support as we move towards the creation of the new land development agency. realise the vision also commenced after we Delivering this body of work has been a granted approval to demolish the Subiaco Oval As we look to the future, as part of a combined massive undertaking and I want to thank the grandstands and associated infrastructure. land agency, our team will continue to focus on entire team at MRA for their efforts this year The demolition will enable construction of progressing key Government priorities through in what has been a challenging environment. new amenities alongside the new Bob Hawke the METRONET East Redevelopment Area While it is often easy to think of these College to commence, which will create a vibrant Precincts in Bayswater and Forrestfield. This achievements as individual projects, it takes work will include planning, urban design and education and transit-connected community a collective team effort to deliver ‘once in a attracting investment to support the delivery with access to exceptional recreational amenity lifetime, city-changing’ projects to the standard of METRONET and continued planning and in our inner-city suburb of Subiaco. we have achieved. The successes of 2018-19 revitalisation in our redevelopment areas to Redevelopment of the iconic East Perth Power reflects the team’s exceptional professionalism, position Perth as a vibrant, progressive and Station took a significant step forward, with capability and capacity, along with an connected international city. $30million allocated by the State Government unwavering commitment to get the job done. towards carrying out long-awaited site works. I would also like to acknowledge the Hon Sean Henriques This funding progresses the redevelopment Rita Saffioti, Minister for Planning*, and her Acting Chief Executive Officer process of the East Perth Power Station into tireless passion and commitment to realising a contemporary waterfront destination that provides opportunities for the community to interact with this iconic piece of social history at the Swan River’s edge. As part of the work undertaken for Land Agency Reform, a number of measures were successfully implemented in 2018-19 to improve transparency through a review of the MRA planning function and processes. This review ran in parallel with the wider State initiative around enhancing the State
* In July 2019 the Premier formally transferred administration of the Metropolitan Redevelopment Act 2011 from the Minister for Planning to the Minister for Lands
FOREWORD — MRA ANNUAL REPORT 2018/19 — 1 1 Releasing an exciting new vision Chevron Australia for Subi East. were granted August 2018 February 2019 development approval Development approval for their Australian was granted for Far headquarters on Lot 7 East Consortium’s at Elizabeth Quay $158million Perth Hub twin tower development December 2018 at Lots 2 and 3A Winning 10 adjacent to Perth Arena industry awards across several projects
Development Application granted for the new Bellevue depot facility for the State Government’s $1.6billion Railcar Program
August 2018
12 — MRA ANNUAL REPORT 2018/19 — OVERVIEW OVERVIEW
March 2019 Progressing development Celebrating at Perth City Link to enhance The opening ofThe the first full years the reconnection between Towers, Elizabeth Quay’s of operation at the CBD and Northbridge first completed building. Yagan Square and Scarborough May 2019 March 2019 foreshore
Commencement of demolition June 2019 of redundant infrastructure May 2019 in Kelmscott as a precursor to The announcement of METRONET’s Denny Avenue the METRONET East level crossing removal Redevelopment Area being expanded to include $30 June 2019 the areas surrounding MILLION the Bayswater and towards carrying out Forrestfield stations long-awaited site works at East Perth Power Station
OVERVIEW — MRA ANNUAL REPORT 2018/19 — 1 3 Celebrating the first full year of operation Chevron Australia were granted development at Yagan Square and the Scarborough approval for their Australian headquarters on 2018/19 foreshore. Lot 7 at Elizabeth Quay. In the space of a year, Yagan Square has The 29-storey multi-use tower will include HIGHLIGHTS become a favourite for Perth central business more than 54,000 square metres of office district's commuters, tourists, foodies and floor space and incorporates exhibition Winning 10 industry awards across event-goers, and helped put Perth on the spaces, a lobby and conference facilities. several projects. global map with mentions from Forbes in its Progressing development at Perth City Elizabeth Quay | Property Council of Australia / Rider annual Travel Guides list and The New York Link to enhance the reconnection between Levett Bucknall Innovation and Excellence Awards | Times' recent 52 Places to Go in 2019 list. the CBD and Northbridge. Award for Government Leadership | May 2019 Since opening in early 2018, the new In what is the most complex subdivision Scarborough Foreshore | Urban Development Scarborough Foreshore facilities have been project in the state, Perth City Link has Institute of Australia (UDIA) WA Awards for embraced by visitors. With seven new reconnected the CBD with Northbridge for Excellence | Government and Public Use public amenities and buildings, as part of the first time in more than 100 years. The Award | September 2018 the $100million redevelopment, the MRA project is unlocking large areas of unused Scarborough Foreshore | Planning Institute of and the City of Stirling have delivered one land to create an exciting new destination Australia (PIA) WA Awards for Planning of Australia’s best beachfront destinations. with housing, shops, restaurants, offices and Excellence | Best Planning Ideas – Large Project more. (State) | November 2018 Progressing development and city Scarborough Foreshore | PIA National Awards revitalisation at Elizabeth Quay. Development approval was granted for Far for Planning Excellence | Best Planning Ideas – Since opening in 2016, Elizabeth Quay has East Consortium’s $158million Perth Hub Large Project (National) | May 2019 recorded millions of visits and attracted more twin tower development at Lots 2 and 3A Yagan Square | UDIA WA Awards for Excellence, than 200 events to Perth. In 2019, Elizabeth adjacent to Perth Arena. Urban Renewal | September 2018 Quay continued to take shape as private The first building is a 32-storey mixed-use Yagan Square | PIA WA Awards for Planning development progressed. tower with 314 apartments supported by Excellence | Great Place Award | November 2018 The opening of The Towers - Elizabeth Quay’s retail tenancies and a tavern. The second Yagan Square | UDIA National Awards for first completed building. building will accommodate the four-star Excellence | Urban Renewal Award | May 2019 Dorsett Hotel – a 23-storey tower with 263 The first residents of Elizabeth Quay moved Yagan Square | UDIA National Awards for hotel rooms and a range of dining options into the precinct in early 2019 as part of Far Excellence | Presidents Award | May 2019 and amenities. East Consortium’s The Towers at Elizabeth Yagan Square | 2019 WA Heritage Awards | Quay development on Lot 10. Best Interpretation Project | May 2019 Yagan Square | PIA National Awards for Planning Excellence | Great Place Award | May 2019
14 — MRA ANNUAL REPORT 2018/19 — OVERVIEW OVERVIEW
Bellevue new depot facility. $30 million towards carrying out long-awaited The announcement of the METRONET East Redevelopment Area being expanded to The MRA approved the development application site works at East Perth Power Station. include the areas surrounding the Bayswater for the new depot facility in Bellevue. This will Funding will go towards de-constraining the and Forrestfield stations. be home to the State Government’s $1.6billion site of the energy infrastructure that currently Railcar Program, which will deliver 102 new services the Perth CBD. Future development In June 2019, the Minister for Planning railcars required for the METRONET project and will celebrate the heritage of the former announced that the MRA would become the 144 railcars to replace the first electric trains on power station building, ensuring the social planning authority for the areas surrounding the Transperth network. and cultural value of the site is preserved and the Bayswater and Forrestfield stations. interpreted for future generations to enjoy. Located just 1km from the Midland Workshops, The Midland, Bayswater and Forrestfield station the new production facility site in Bellevue will Number of development applications precincts will be brought into a Redevelopment bring more employment opportunities to the approved (2018-19) Area known as the METRONET East Midland Redevelopment Area. Armadale – 126 ($31,781,608.55) Redevelopment Area to ensure vibrancy, housing Releasing an exciting new vision for Central Perth – 38 ($689,234,074) and jobs are the focus of each revitalisation. Subiaco East. Midland – 16 ($47,413,995) Commencement of a joint stretch The intention of releasing the early concept Scarborough – 30 ($48,845,307.54) Reconciliation Action Plan (RAP). images is to share the broad vision for one Subiaco – 11 ($52,219,667) The MRA and LandCorp are collaborating of the most significant urban redevelopment TOTAL – 221 ($869,494,652.09) to create a joint 2018-20 RAP to achieve a projects undertaken in Perth, and follows reconciled and harmonious future for all more than 12 months of consultation with the Commencement of demolition of redundant Western Australians within our nominated community and other stakeholders. infrastructure in Kelmscott as a precursor to project areas. The Subiaco East 'Vision Concept' features a METRONET’s Denny Avenue level crossing The joint 2018-20 Stretch RAP is one which connected, vibrant new community, with strong removal. builds on the positive relationships, outcomes transport links, walking and cycling paths and Demolition began to clear old buildings and a network of high-quality landscaped green and achievements from the reconciliation make way for the Kelmscott METRONET journeys of both the MRA and LandCorp. spaces linking it to surrounding areas. precinct and the Denny Avenue level crossing removal project.
OVERVIEW — MRA ANNUAL REPORT 2018/19 — 1 5 ECONOMIC CONDITIONS 2018/19 Deteriorating global and national economic conditions resulted in the International Monetary Fund downgrading global growth SIGNIFICANT ISSUES forecasts during the year1. Household consumption and dwelling investment also SIGNIFICANT ISSUES contracted in response to tighter access to Dexus building, Perth City Link. 2 IMPACTING THE AGENCY credit and falling house prices . The MRA contributed to the State Government’s The MRA’s 13 redevelopment response, as part of its strategic priority to deliver projects generated jobs and ‘A Strong Economy’, by reviewing our funding investment that supported the model and legacy debt position and formalising Western Australian (WA) a pathway to merge with LandCorp. The merger economy in 2018-19. will create a single State Government agency The MRA’s work also contributes responsible for land planning and development. to the environment and community, As a combined agency, the MRA and LandCorp by enriching urban spaces across will drive industrial development, catalyse private metropolitan Perth and creating a investment and maximise the delivery of the strong sense of place, in line with $4.2billion METRONET initiative. the Government’s priority area to The process to consolidate the MRA’s legacy debt create ‘A Liveable Environment’ position and merge with LandCorp will continue that is well connected and in 2019-20, in parallel with a strategic program to sustainable. leverage WA’s expected economic upturn. This was achieved as WA’s WA’s Gross State Product is expected to economy entered a new phase, grow by 2.0% in 2018-19 and accelerate to which required strategic and 3.5% in 2019-203. A substantial lift in business considered responses to changing investment is expected for the first time in economic and social drivers. seven years in 2019-20 and the MRA is well positioned to leverage this opportunity across all of its Redevelopment Areas. The MRA will progress its work to secure land sales and business investment, as well as generating jobs and social investment that will build the social and economic capacity of the WA community.
16 — MRA ANNUAL REPORT 2018/19 — OVERVIEW OVERVIEW
LABOUR AVAILABILITY Demand for Perth apartments continues to AFFORDABILITY AND INFILL TARGETS remain stable, though below trend, with The MRA generates employment among a Over the next 10 to 15 years, METRONET will conditions likely to remain tough in the short- diverse range of sectors – from planning and provide opportunities for major projects across term4 with demand expected to improve construction to small business, service and metropolitan Perth and renewed activity and gradually over the medium-term7. creative industries – to help broaden the State’s investment in MRA Redevelopment Areas. economy and create new job opportunities. Financiers continue to seek a high level of The MRA will continue to support METRONET As Western Australia's economic position pre-commitment prior to moving into the by utilising its unique set of planning and improves, and investment in the State’s construction phase, which is limiting the ability development powers to support the strategic resources sector accelerates, labour market of developers to undertake large-scale residential outcomes of the ambitious initiative within its conditions are expected to rally and create development4. Developers are taking a long- Redevelopment Areas. Where appropriate and demand for skilled labour. term view of the Perth market and are continuing applicable the MRA will use its development to look for new development opportunities The MRA will meet this challenge by offering policies and sales contracts to support the State well-positioned development opportunities that in Perth. Although market conditions remain Affordable Housing Strategy 2010-20 by integrating fulfil market requirements, as well as the strategic challenging, there is demand from local, national the supply of affordable housing options into aims of the State Government. The MRA's and international developers for centrally located, its Redevelopment Areas. This, however, is not award-winning success on other projects, and its high density, de-constrained assets4. understanding of the labour market and sector expected to be without challenges, particularly in needs, will underpin its ongoing approach. These trends have been important considerations for finding industry and community delivery partners. the MRA this year in positioning land releases and The MRA will also help support METRONET PROPERTY MARKET property sales to maximise benefits for the State. and the State Government’s target of 47% Whilst WA’s economy is forecasted to grow, its The state of the property market will remain a key residential infill development to cater recovery has been subdued, and as a result, consideration for the MRA in 2019-20 and inform for the State’s anticipated population growth property markets in Perth have remained weak for its land release and property investment approach – expected to require 800,000 new homes five years since a slump in demand in the second across its Redevelopment Areas. Investment by 2050 – by progressing its planning and 4 half of 2013 . CoreLogic's monthly data indicates opportunities will be timed to ensure that the urban renewal agenda with appropriate regard that Perth's house and unit prices fell by 8.3% and MRA can achieve the best results for the State for density within its redevelopment areas. 8.5% over the year to April 20195. and communities in which it operates. However, housing finance approvals indicate that housing demand may have hit the bottom in WA and with a backdrop of other gradually 1 International Monetary Fund (April 2019) World Economic Outlook - Growth Slowdown, Precarious Recovery, 2019. IMF, Washington. improving indices, conditions are expected to 2 Reserve Bank of Australia (2 April 2019) Minutes of the Monetary Policy Meeting of the Reserve Bank Board, 2 April 2019. RBA, Sydney. 3 Department of Treasury (2019). Economic Forecasts – Major Economic Aggregates. Department of Treasury, accessed 16 May 2019, 4 slowly improve into 2020 and the medium term .
OVERVIEW — MRA ANNUAL REPORT 2018/19 — 1 7 Window by Stuart Green at Railway Square, Midland Railway Workshops.
PERFORMANCE MANAGEMENT FRAMEWORK
18 — MRA ANNUAL REPORT 2018/19 — OVERVIEW OVERVIEW
The WA Government has four goals that CORPORATE OBJECTIVES To promote Economic Wellbeing by supporting, where appropriate, development that facilitates guide the development of policies, programs To enhance Sound Financial Management investment and provides opportunity for local and services within its agencies. The MRA and demonstrate open, transparent and businesses and emerging industries to satisfy supports these State Government Goals accountable governance, strengthen the MRA’s market demand. for Sustainable Finances, Future Jobs and financial position, demonstrate effective asset Skills, Strong Communities and Better Places stewardship and encourage private sector To promote Urban Efficiency through infrastructure and buildings, the mix of land use through its Redevelopment Objectives and investment. and facilitating a critical mass of population and To build Effective Stakeholder Relationships Corporate Objective and their associated Key employment. Performance Indicators. by identifying key stakeholders, assessing stakeholder needs, communicating success To enhance Connectivity and reduce the need to The MRA is currently responsible for five stories in innovative ways, ensuring meaningful travel by supporting development aimed at well Redevelopment Areas, which are situated in engagement, and building partnerships that designed places that support walking, cycling Whadjuk Noongar Boodja (country). Through enable the State Government to achieve its and public transit. its Place-Making Model, the MRA is committed objectives. To promote Social Inclusion by encouraging, to planning and delivering places that reflect where appropriate, a diverse range of housing the heritage, aspirations and lifestyle of the To recruit and retain the best and the brightest and by supporting community infrastructure people who ultimately live, work and visit them. Motivated and Talented People by building a and activities and opportunities for visitors and In collaboration with the Whadjuk Noongar strong corporate culture and making the MRA an residents to socialise. Traditional Custodians of this Boodja, the MRA employer of choice. has developed the Kaart Koort Waarnging To build Business Efficiency by continually To enhance Environmental Integrity by - Head, Heart, Talking (KKW), an Aboriginal encouraging business improvements and encouraging ecologically sustainable design, Engagement Framework. The MRA is committed regularly reviewing processes and procedures in resource efficiency, recycling, renewable energy to delivering its developments with initial search of best practice. and protection of the local ecology. and ongoing collaboration and engagement through each stage of its work while meeting its REDEVELOPMENT AREA OBJECTIVES Corporate and Redevelopment Areas Objectives. Underpinning the MRA’s vision are its key The MRA is now not only ensuring the objectives for each Redevelopment Area. As per relationship between its Corporate and regulation 14 of the Metropolitan Redevelopment Redevelopment Area Objectives and Authority Regulations 2011, the objectives of each Government Goals, but mapping both sets Redevelopment Area are as follows: of Objectives and Goals against the KKW Framework Objectives. To build a Sense of Place by supporting high quality urban design, heritage protection, public art and cultural activities that respond to Perth’s environment, climate and lifestyle.
OVERVIEW — MRA ANNUAL REPORT 2018/19 — 1 9 KAART KOORT WAARNGING FRAMEWORK (HEAD, HEART, TALKING)
Kaart Koort Waarnging – The KKW Framework establishes a strong The lifecycle of the project is mapped according Head, Heart, Talking (KKW) ongoing partnership between the MRA and the to the Noongar six seasons – from Djeran is the Aboriginal Engagement Traditional Custodians, which is grounded in a ‘Fertility’ to Bunuru ‘Adulthood’. Adulthood philosophy of collaboration and conversation. equates to operational involvement, which Framework developed by the This enables Whadjuk Noongar people to provides the Whadjuk Noongar community with MRA to guide collaboration with participate directly in decision-making on how reassurance that the successful engagement the Whadjuk Noongar Traditional they want to be represented and have input into established during the delivery stage of the Custodians of the Country (Boodja) a project. project will continue at the operational phase to achieve target outcomes. on which the MRA works. This genuine and meaningful engagement framework encourages ongoing dialogue The success of the KKW Framework is evident throughout all stages of the MRA’s urban in both the outcomes achieved by the MRA and development projects. This builds trust, certainty the level of interest received from other State and clarity with Whadjuk Noongar people and Government agencies. The Framework is an enables a rich sharing of cultural knowledge approach that can be used in other organisations that can be interpreted and embedded into across the State as a process of meaningful, the State’s major projects. The result is richer, practical engagement that celebrates Noongar meaningful places that benefit the entire culture, enhances projects and reflects a strong community, with a strong sense of identity that sense of place and pride – delivering enriched showcases Noongar culture. outcomes for Noongar people and further embedding cultural knowledge into Government By promoting continued engagement, the projects and policies. KKW Framework provides opportunities for involvement from the onset and over the entire life of a project, which encourages and supports business opportunities for Noongar people.
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The KKW Framework is an important milestone and a significant step to bring together the applied KAART KOORT WAARNGING knowledge of Noongar culture with the acquired knowledge that underpins project delivery MAJOR FRAMEWORK (HEAD, HEART, TALKING) practices. It aims to provide clarity and certainty DEVELOPMENTS for the MRA to deliver meaningful and effective PROJECTS engagement and apply this consistently across all projects to meet its objectives.
Traditional Owners Metropolitan Redevelopment Authority
Seasons, food carriers, boomerangs, middens, shelter
OVERVIEW — MRA ANNUAL REPORT 2018/19 — 2 1 KAART KOORT WAARNGING OBJECTIVES
To develop and maintain an ongoing, trusting and respectful relationship and engagement process to enable cultural contribution and participation in MRA projects. To integrate the KKW into the conventional project delivery and to create a way forward for both governmental and non-government organisations and Noongar people to communicate and collaborate on the planning of projects and places. To provide clear guidance and clarity in regards to the cultural engagement implementation process, expectations and outcomes for the MRA staff and project partners. To enhance the creation and regeneration of place, delivery spiritual, ethical, cultural and practical benefits and opportunities.
Yagan Square 2019 Bunuru Festival Noongar dancers.
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The table below demonstrates how the KKW objectives are embedded into MRA practices, and work in correlation with both the Redevelopment Area and Corporate Objectives. KAART The KKW objectives are relatable to all aspects of the business and supports the relationship of the MRA’s Redevelopment KOORT Area, Corporate Objectives and the Government's goals as well as the outcome and service delivery of the business. KKW OBJECTIVES WAARNGING To develop and maintain an ongoing, trusting and To integrate the KKW into the conventional project delivery and to respectful relationship and engagement process to enable create a way forward for both governmental and non-government cultural contribution and participation in MRA projects. organisations and Noongar people to communicate and collaborate on the planning of projects and places. OBJECTIVES To provide clear guidance and clarity in regards to the cultural engagement implementation process, expectations To enhance the creation and regeneration of place, delivery spiritual, and outcomes for the MRA staff and project partners. ethical, cultural and practical benefits and opportunities.
Redevelopment Area Objectives Corporate Objectives
Sense of Economic Urban Connectivity Social Environmental Sound Effective Motivated Business Place Wellbeing Efficiency Inclusion Integrity Financial Stakeholder and Talented Efficiency Management Relationships People
Sustainable Finances: Responsible financial management and better service delivery.
Future Jobs and Skills: Grow and diversify the economy, create jobs and support skill development.
Strong Communities: Safe communities and supported families.
GOVERNMENT GOALS GOVERNMENT Better Places: A quality environment with liveable and affordable communities and vibrant regions.
OVERVIEW — MRA ANNUAL REPORT 2018/19 — 2 3 Yagan Square, the new heart of Perth City.
YAGAN SQUARE CASE STUDY 24 — MRA ANNUAL REPORT 2018/19 — OVERVIEW OVERVIEW
Yagan Square, the new heart of Perth City. Since the landmark naming KKW Framework in practice at Yagan Square Yagan Square is an iconic space that provides an opportunity for visitors, both local, interstate of Yagan Square after a well- Yagan Square was the pilot project for the and overseas to learn about and experience recognised Aboriginal leader, KKW Framework. The MRA drew on existing Whadjuk culture, through the stories embedded Whadjuk contractors have been governance structures to create initial in the artwork and signage, building design, connection points with the Noongar people, engaged to provide artworks, plantings and cultural history from the onsite working with the South West Aboriginal Land site security, cultural school tours. It provides opportunities for engagement and Sea Council as the first point of contact tours and other services to and celebration of Whadjuk stories and returns and connection point with the Traditional support the square. the site’s historical use as a meeting place to a Custodians. The Traditional Custodians involved central part of Perth. comprised appointed representatives with principal demonstrable ancestral links to the Event programming and entertainment ties Project Area and who were recognised by their into the Noongar six seasons calendar, which community as the key representative body. shapes and influences all cycles of life at the square. In addition, Noongar language, artwork Through an iterative and highly collaborative and film promotes Noongar culture further. process, the MRA worked with the Traditional Custodians from the project outset. Cultural The level of engagement with the Whadjuk themes and narratives were developed, Noongar people is also ongoing. Since the which formed a cultural blueprint. This landmark naming of Yagan Square after a blueprint became the baseline from which all well-recognised Aboriginal leader, Whadjuk disciplines worked throughout the design and contractors have been engaged to provide development of Yagan Square. artworks, site security, cultural school tours and other services to support the square. Also the As a result, the Indigenous cultural and heritage site is home to specific cultural events, including significance of the space is woven into the the annual Bunuru Festival and Djeran Dining design and creates a strong sense of place that and Makuru Market Hall. can be experienced by both visitors and the Whadjuk Noongar Traditional Custodians who Yagan Square has strengthened the have a connection to the site. relationship the State has with the Whadjuk people and infused Aboriginal culture into an area in a form that benefits the community and re-establishes a connection with the Aboriginal people that may not have been achieved without the KKW Framework.
OVERVIEW — MRA ANNUAL REPORT 2018/19 — 2 5 The MRA commissioned Research Solutions to Cultural Aspect and Narrative Commuter experiences undertake a qualitative review of Yagan Square, (Effective stakeholder relationships (Building a sense of place) addressing key stakeholders and the general and social inclusion) It was highlighted by the general public that public perception of: The use of the KKW Framework and the they have been inclined to increase their use • the MRA’s progression towards the project ongoing relationship with the Traditional of transport, as Yagan Square has provided vision and goals; Owners of the land on which Perth City Link is a clean, safe and welcoming environment, • the linkage between achieving the MRA built, was viewed by many stakeholders as one between the train and bus stations for Redevelopment Area and Corporate Objectives; of the stand out successes of Yagan Square. commuters and visitors to the city to utilise. Yagan Square is recognised as an outstanding Achieving the project visions of creating • the value, approach and effectiveness of the example of a cultural narrative being embedded a meeting place KKW engagement strategy; and into the design of a civic space. This success (Building a sense of place) • the impact of the MRA’s place management has generated national interest from both the efforts. government and the private sector. The original project vision was to create “a meeting place and point of cultural celebration, This research piece provided an opportunity “From my perspective, the engagement convergence and arrival in Perth’s CBD”. This for experience–based learning to inform future process has been the stand-out success. vision has evolved as interpretative policies, policies, process and direction and give the Looking back, there are things we might do strategies and processes were infused into the MRA time to reflect on lessons learned. differently in terms of the design or delivery Yagan Square planning process. Initial social The qualitative review comprised of a series of of Yagan Square, but the engagement process and cultural significance studies uncovered interviews, roundtables and focus groups with itself is something to be proud of. It may need a rich, detailed site history as a former lake used for hunting, gathering and meeting by current and past representatives of the MRA, some tweaking for other people, for other Whadjuk Noongar representatives, State and Aboriginal people. The MRA's recreation of projects in different places but the principles Local Government agencies, private sector feeling for the area sought to bring back the stakeholders, tenants and the general public. will apply.” (Stakeholder) historical context.
There were distinct reoccurring themes of the Many of the programming elements are unique, MRA’s key achievements identified from the particularly those focusing on the Aboriginal research undertaken. identity and culture, and events centred on the six seasons of the Noongar year. “Every city has a Chinatown but I don’t think any other capital city has an Indigenous square.” (General Public)
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Yagan Square viewed from the top of the Horseshoe Bridge.
OVERVIEW — MRA ANNUAL REPORT 2018/19 — 2 7 Noongar Dancers perform at the 2019 Bunuru Festival at Yagan Square. Connection with the CBD and Northbridge (Enhancing connectivity) Yagan Square has altered the way people use and move around the city; it has created a seamless connection between Northbridge and the CBD, removing both a physical and psychological barrier. The MRA has a proven track record in successfully delivering projects on difficult sites. Yagan Square epitomises this with multiple stakeholders to consider, complicated landholdings and complex infrastructure. Furthermore the project was conceived as a civic space that sought to achieve specific heritage and community outcomes. Though Yagan is progressing towards its vision, the site is still young and will need to be progressed through to maturity, along with the Perth City Link project as a whole. “There will always be criticism, things that could have been done better but I will say this about that development: it was ballsy. They’ve (been) talking about creating that connection for the last fifty years and MRA were the ones who did it.” (Stakeholder)
Project delivery goes hand-in-hand with lessons learnt and room for ongoing development and improvement. Below are the key areas of issues raised by the stakeholders:
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Place Management Communication, Storytelling and Increased Stakeholder Engagement (Building a sense of place) Wayfinding (Effective stakeholder relationships and (Effective stakeholder relationships) motivated and talented people.) All stakeholders agree that place management is critical in the delivery of the vision for Yagan As noted earlier, many of the stakeholders Although this is the pilot project for the Square. perceive the cultural narrative embedded in the KKW Framework, it was suggested that project as a standout, however, it was noted consideration for more engagement with Decisions around the curated approach to the that the cultural narrative is not sufficiently Aboriginal people during the construction tenant mix were noted as a positive contribution clear and communicated, with visitors generally phase would have been beneficial. to the precinct’s identity. The art installation, requiring more assistance with interpretation in digital tower and water feature were routinely Stakeholders also suggested that the order to fully appreciate the experience. commended, and the quality of the facilities employment of Aboriginal people in the day- were mentioned as being second to none; “A success of the architecture is that it tries to to-day operations within the precinct should ensuring a clean, comfortable and welcoming tell a story and it is capable of doing so. The be considered. The MRA currently employ space. However, a key concern of the majority of follow-through has not enabled everyone a number of (Aboriginal) businesses to stakeholders is that there is not enough going on undertake operational tasks including cleaning, to understand and engage with that story.” at the precinct to regularly draw visitors into the landscaping and security. This demonstrates area and keep them there. (Stakeholder) that the MRA is not adequately communicating these initiatives through works and operations. The MRA has developed a place management It was noted that spaces within the Yagan The MRA is working with its procurement team programme for the precinct that is consistent Square precinct are not well-signed, a factor to establish and implement a process that with the Yagan Square brand. It places impacting on the experience of both tenants ensures appropriate and adequate Aboriginal Aboriginal culture front and centre in the and the general public. Many suggested it isn’t engagement. precinct’s identity and ensures this is at the obvious that there are tenancies included in the forefront of MRA’s ongoing programming and market hall. The Yagan Square Project is still in the early event management. stages of adulthood in the project lifecycle The MRA is currently undertaking a review of its and will transition and mature over time into communications avenues in the precinct. This a life of its own. The MRA’s vision for the has resulted as an interim measure to install project as a whole is unique, and the adoption five new wayfinding kiosks as a directional of these lessons learnt will help identify enhancement and to improve the storytelling improvements and successes to prepare for of the project, artwork, event programming and the implementation of this framework through tenants. Additional techniques are currently future projects. being workshopped to try and mitigate these issues raised by the general public and stakeholders.
OVERVIEW — MRA ANNUAL REPORT 2018/19 — 2 9 'First Contact' artwork by Laurel Nannup at Elizabeth Quay.
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Machinery of Government Since the initiation of the reform the following and Land Agency Reform activities across the MRA and LandCorp have MRA’S been completed: Transition has been a common theme across the whole of State Government as the State • the appointment of Common Board Directors; STRATEGIC implemented its Machinery of Government • improvement in agency transparency and reforms. The Machinery of Government accountability; DIRECTION reforms saw amalgamation of departments • rationalisation of Land Redevelopment and agencies across the public sector aimed at Committees (LRCs); A Year Of Transition: creating collaborative departments focused on whole-of-government objectives and delivering • harmonisation of Project Delivery, MRA’s Strategic Direction services in a more efficient and effective way. Communications and Ministerials Teams; The key strategic theme of the 2018/19 In November 2017, Cabinet approved the • appointment of a common internal auditor; financial year was that of transition. The commencement of the consolidation of the • harmonisation of governance processes, MRA’s year of transition has included: Government land development activities of the charters and delegations schedules; • Machinery of Government and Land MRA and LandCorp. • review of the MRA’s projects, assets and Agency Reform; The vision of this reform is to create one liabilities; • a focus on project completion; and integrated and sustainable agency to deliver • establishment of the Industrial Lands • transitioning to the future – MRA: priority Government planning and land Authority; and development projects which drive social METRONET Delivery Agency. • legislative review of the operation, effectiveness and economic growth and prosperity across and the need for the continuation of the Western Australia. The objectives of this MRA Act. process is to: • create one integrated and sustainable planning and development operating model to deliver Government priority projects; • reduce duplication of Government land development activity; The vision of this reform was to create one • realise greater efficiency, clarity and integrated and sustainable agency to deliver consistency in service delivery; and priority Government planning and land • achieve stronger governance and financial development projects which drives social management to support repair of the State’s and economic growth and prosperity across fiscal position. Western Australia.
OVERVIEW — MRA ANNUAL REPORT 2018/19 — 3 1 Improving our transparency The MRA is also considering any changes A focus on project completion required to the content and application of the and accountability The MRA is responsible for creating places by MRA’s Planning Framework to better align with delivering specific outcomes within defined As part of the Agency Reform Process, in the outcomes of the State’s Planning Reform spaces. Transitioning out of the MRA’s project 2018 the MRA Board considered how the Process, including: MRA fulfils its statutory planning function areas is an established part of its Business and identified opportunities to enhance • consideration of business rules for Model. Project completion was a strong focus procedural transparency while maintaining future projects to inform the appropriate for the MRA in 2018/19. Where its services operational efficiency. The review identified statutory instrument based on operational and skills are no longer needed and upon recommendations, which included: requirements and project outcomes; achievement of the projects Redevelopment Area Objectives and outcomes, the MRA shifts • rationalisation of the LRCs; • review of the MRA’s Redevelopment Scheme template; its focus to exiting and transferring these places • enhanced visibility of the MRA’s Planning back to the relevant local authority. reporting processes; • consideration of normalisation processes; The MRA acknowledges the support of all • providing applicants and submitters • alignment with the State Planning Policies; its delivery partners as it moves into the opportunity to present to LRC meetings; and final stages of its existing projects, having • promoting the existing pre-development • review of delegation levels to align with successfully created unique and vibrant places application consultation process; Development Assessment Panels to achieve for the future of Perth. efficiencies in decision making. • maintaining the incentivised, discretionary based Planning Framework; and • reviewing delegation of decision making functions.
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The 'Spanda' artwork by Christian de Vietri is a favourite photo opportunity for visitors to Elizabeth Quay.
Transitioning to the future – MRA: METRONET delivery agency The State Government is planning the implementation of METRONET and the MRA is a key delivery agency for this program of work. Therefore, it is timely for the MRA to transition out of completed projects and focus on supporting the delivery of METRONET across the Perth Metropolitan Region. The MRA will continue to work closely with the METRONET Office to identify relevant projects and the specific role that the MRA will take in delivery of METRONET station precincts. METRONET is closely aligned with the MRA’s Redevelopment Area Objectives, particularly ‘enhancing connectivity’ and ‘building a sense of place’ and is excited to support this significant infrastructure delivery project.
OVERVIEW — MRA ANNUAL REPORT 2018/19 — 3 3 The Water Line misting feature at Railway Square, Midland Workshops.
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PROJECT LIFE STATISTICS AT A GLANCE
Project Total Land Government Investment Total Investment ($) Attraction ($) Perth City Link 13.5ha $1.39billion* $4billion $5.39billion Riverside 40ha $142.8million $2billion $2.14billion Elizabeth Quay 10ha $440million $2.2billion $2.64billion Perth Cultural Centre 8.5ha $508million* – $508million Midland 161ha $490million* $4.7billion $5.19billion Armadale 465ha $165million* $477million $642million Wungong Urban 1,394ha $265million* $750million $1billion Scarborough 100ha $100million* – $100million New Northbridge 27ha $60million $300million $360million Subi Centro 84.5ha $200million $1billion $1.2billion Subi East 35.6ha $6.6million TBC TBC Claisebrook Village 137.5ha $127million $685million $812million East Perth Power Station 8.5ha TBC TBC TBC
TOTAL 2485.1ha $3.98billion $16.45billion $20.4billion
* This includes MRA and other government investment. PERFORMANCE — MRA ANNUAL REPORT 2018/19 — 3 5 REDEVELOPMENT AREAS
With more than 25 years’ experience delivering major urban renewal projects across MIDLAND metropolitan Perth, the MRA
continues to outperform industry SUBIACO benchmarks for planning and CENTRAL PERTH development with award- SCARBOROUGH winning, innovative projects.
ARMADALE
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A unique redevelopment model – including a combination of planning, development and land assembly powers – has enabled the MRA to CENTRAL deliver some of the most iconic destinations in Perth. These places catalyse private development and deliver a strong return on investment. PERTH In 2018-19, the MRA continued delivery of its projects and the management of contemporary REDEVELOPMENT public places across five redevelopment areas. Covering more than 2,600 hectares of prime land, the MRA’s projects represent almost $4billion AREA of Government investment, which is attracting billions more from the private sector in land sales, private development and business investment. The MRA is also undergoing a period of The Central Perth Redevelopment Area redefinition, with continuing involvement in key includes Elizabeth Quay, Perth City Government projects in Subiaco and East Perth, Link, Riverside, Perth Cultural Centre, and will be assuming planning responsibility for Claisebrook Village, New Northbridge and a new METRONET East Redevelopment Area East Perth Power Station projects. These encompassing Bayswater and Forrestfield in projects cover 245 hectares of Perth’s CBD. 2020-21. Collectively, they represent more than Building on its seven years of operation and a $2.5billion in Government investment 25-year legacy of urban renewal across and in excess of $9.5billion in potential metropolitan Perth, the MRA has continued to investment attraction. perform and challenge planning and development benchmarks despite changing market trends and a period of redefinition for the MRA. In Perth’s strategic metropolitan centres of Midland, Armadale, Subiaco and Scarborough, the MRA continues to manage robust Planning Frameworks that facilitate private development, support investment in public infrastructure and amenity and continues to deliver on the vision for contemporary, vibrant places that people want to be part of.
PERFORMANCE — MRA ANNUAL REPORT 2018/19 — 3 7 A young visitor enjoys the BHP Water Park at Elizabeth Quay.
Project area 10 Hectares BIRAK Adolescence/ Commissioning
Commercial/ office/retail (est.) 225,000m2
Elizabeth Quay has redefined 10 hectares of riverfront land in Perth’s CBD into a landmark lifestyle, entertainment and leisure precinct – one that has attracted more than 16million visits, $320million in land sales and $2.2billion in private development proposals.
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Hotel Investment rooms Expected year attraction 400 of completion $2.2 BILLION 2020+
Resident Dwellings 800 population 1,400 Government investment $440 MILLION*
Note: These are estimated figures based on current projections. *This includes MRA investment only.
Perth’s premier destination to see and do across two towers. The riverfront development Across two towers, Brookfield’s Perth Plus will also offer unique public amenities including project will include residential apartments, a Having already cemented itself as an an art museum and viewing deck. hotel, 28 floors of office space and associated internationally recognised best practice urban public amenities. development, and a premier tourism and event This development is expected to be closely destination, Elizabeth Quay continued to evolve followed by Chevron Australia’s new $360million Elizabeth Quay also continued to mature and as private development progressed this year. headquarters in the northeast corner of the quay, attract new and returning visitors through new following the issuing of development approval retail investment, popular community events The first residents of Elizabeth Quay moved by the MRA in December 2018. Chevron has and food festivals and iconic celebrations into the precinct in early 2019 as part of Far also secured an agreement with Brookfield for during 2018-19. The arrival of the 6.5 tonne East Consortium’s The Towers at Elizabeth construction of the 29-storey tower, featuring over ANZAC Bell at the Bell Tower commemorates Quay development on the eastern promenade. 54,000sqm of office accommodation, exhibition the Centenary of ANZAC 2014-2018 and added Boasting 379 apartments, and marking the spaces, conference facilities, restaurants, retail yet another visitor attraction to Barrack Street return of the luxurious The Ritz-Carlton brand tenancies, and a childcare centre. Jetty. to Australia, the development is expected to be fully complete by the end of 2019. The agreement with Brookfield includes a lease Private development surrounding the inlet will component for Chevron to remain as the anchor continue over the next 5 to 10 years redefining CA & Associates has commenced site works tenant for a 15-year period. On the adjacent the Perth skyline, creating a large workforce for their Elizabeth Quay West development. lots, Brookfield has also secured development both during and post construction and billions Comprising residential and short-stay approval for a mixed-use development, of dollars in private investment into the State. apartments, a hotel, dining and retail outlets spanning to 54-storeys at its tallest point.
PERFORMANCE — MRA ANNUAL REPORT 2018/19 — 3 9 BIRAK Adolescence/ Commissioning
Note: These are estimated figures based on current projections. *This includes all State Government investment, including MRA, Public Transport Authority and Perth Arena, as well as a contribution from the Federal Government and the City of Perth.
Connecting Perth’s CBD with Northbridge The $5.3billion Perth City Link project continues to redefine the heart of Perth, most significantly in the past year through the embedding of Yagan Square in the city’s cultural profile. When all development is complete, the project is expected to add more than 240,000sqm of commercial space, new hotels and residential apartment developments and a broad variety of new retail experiences and public spaces, adding density to our city. As one of Australia’s most significant transit oriented developments, Perth City Link has reconnected the CBD with Northbridge for the first time in more than 100 years. Where rail tracks and ageing infrastructure had long formed a physical barrier, this exciting redevelopment has created a number of new north-south connections, has delivered contemporary infrastructure and iconic Audience watches a performance under the Digital Canopy at Yagan Square. architecture to our city and is creating an exciting new destination for people to visit, work and live.
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Project rooms Hotel Investment area 250 attraction 13.5 Resident Hectares $4 population BILLION New workers 3,000 13,500 4.4 Government Public Open Space hectares investment $1.39 Expected year
Dwellings of completion Commercial/ BILLION* 1,650 office/retail (est.) 2020+ 244,000m2 Note: These are estimated figures based on current projections. *This includes all State Government investment, including MRA, Public Transport Authority and Perth Arena, as well as a contribution from the Federal Government and the City of Perth.
Celebrating its first full year of operations in increasing cultural awareness of tourists and Celebrating its first full year of operations March 2019, Yagan Square was recognised locals through cultural tours, public art and in March 2019, Yagan Square was recognised with coveted industry awards at the Urban ephemeral performances. Yagan Square has with coveted industry awards. Development Institute of Australia National quickly secured its place in the city by creating a Awards for Excellence, including the rich, diverse and welcoming visitor experience. prestigious President’s Award. The innovative Nestled amongst the Kings Square precinct, restaurants. When complete, the contemporary interpretation of Whadjuk culture and our city’s two artfully designed 'ribbons' in Manatj Perth Hub development will forge further history also earned acclaim at the 2019 WA Park were awarded a commendation at the connections between the City and Northbridge. Heritage Awards, with Yagan Square taking Colorbond Awards for Steel Architecture during out Best Interpretation Project for showcasing Infrastructure works continued this year the reporting period. Standing up to 5.5 metres how heritage can be used to create distinctive along Wellington Street to facilitate power and extending over 250 metres, the ribbons destinations and enrich a city. connections for the future residential, hotel and are fitted with feature lighting and signify the retain accommodation. Land assembly and Yagan Square was a popular destination for movement and meeting between the Whadjuk contract negotiations continued throughout crowds moving to and from Perth Arena. The people and the European settlers. the year for other development lots within the precinct has also been extremely successful At the western end of the 13.5ha Perth City Link project, with future land releases to be timed in in its first full year of operations, supporting project, development approval was granted accordance with market demand. and fostering the growth of new businesses for the $158million Perth Hub precinct by – including Aboriginal businesses and Far East Consortium. Located next to Perth employment opportunities - attracting visitors Arena, the two-tower development includes through a program of unique and popular 314 apartments and a 263-room Dorsett Hotel events and community celebrations, and supported by retail tenancies, a tavern and
PERFORMANCE — MRA ANNUAL REPORT 2018/19 — 4 1 Paddlers on the Swan River in East Perth.
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Perth’s new riverfront community A number of Government-owned landholdings site. Located adjacent to Queens Gardens and in the Project Area have been previously a short walk from the Swan River, the MRA Increased investment and development activity redeveloped, or are under contract or are will seek market interest in late 2019 to secure across the eastern gateway to Perth CBD - seeking development partners. The MRA a development partner to acquire this unique including the opening of Optus Stadium and continued to work with Lendlease during the site to create a high quality development that Matagarup Bridge, and the funding commitment year to realise the vision for the Waterbank celebrates its heritage significance. by the State Government to deconstrain the Precinct. Early works for infrastructure and East Perth Power Station site – have warranted When complete, Riverside will continue public domain continued, with development a repositioning of strategic Government the transformation of East Perth from its approvals now granted for three of the seven landholdings within the Riverside Project. industrial past into a cosmopolitan waterfront proposed buildings. community, attracting $2billion in investment The 40ha Riverside Project incorporates Trinity To be developed on a vacant site at the entry to and providing a home for 7,000 new residents College, the West Australian Cricket Association Perth, and on the banks of the Swan River, the and a place of work for 6,000 people. (WACA), Gloucester Park and the banks of the Waterbank precinct will feature a new beach Swan River, with plans for the area set to build destination, a central park, an urban plaza and on the landmark nature of these places. The river boardwalks while retaining and enhancing State Government has invested heavily over the natural riverine environment. the past 5 to 10 years to stabilise reclaimed land ready for future development. To assist in securing a development partner, the MRA progressed an update of the design guidelines for the former Chemistry Centre
up to workers New
6,000 Resident Investment Commercial/ population attraction office/retail (est.) 7,000 94,000m2 $2 BILLION
Project Government area 40 investment KAMBARANG Hectares $142.8 Expected year Dwellings 4,000 of completion Childhood MILLION 2030+
Note: These are estimated figures based on current projections.
PERFORMANCE — MRA ANNUAL REPORT 2018/19 — 4 3 Colourful steps and seating at the Perth Cultural Centre.
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Project BUNURU area 8.5 Hectares Adulthood
Government investment $508 MILLION*
Note: These are estimated figures based on current projections. *This includes MRA, New Museum and other Government investment.
The cultural heart of the city The revitalisation of the Perth Cultural Centre The Perth Cultural Centre continues to offer has been recognised on a global level as a case locals and visitors a vibrant mix of arts, music, A favourite events destination and home to the study for excellence in urban renewal and place food, entertainment and festivals. The new State’s leading arts and cultural institutions, the activation. Most popularly recognised as the museum, which integrates with the existing Perth Cultural Centre continues to mature and is home of Fringe World, and the location of many heritage museum buildings, is expected to well-placed to welcome the new museum in 2020. of the city’s major cultural attractions – including open next year. The MRA’s involvement in the Perth Cultural the new $396million museum – the Perth Centre project focused largely on property Cultural Centre has hosted more than 1,200 management and statutory planning. performances in the public areas and averages a Following almost 10 years work to successfully daily peak footfall of over 30,000 visitors. reposition this important cultural precinct and The MRA continued to manage a number of establish Perth Cultural Centre as a favourite heritage-listed properties on William Street in destination for visitors and locals alike, 2018-19, on the western border of the Perth management of the precinct was transferred to Cultural Centre Project, and worked with the Department of Local Government, Sport and development partners to progress their plans The Perth Cultural Centre Cultural Industries - through the Perth Theatre on a number of other sites. Of the 16 original Trust – on 1 July 2018. heritage properties within the Project Area, two continues to offer locals and visitors a vibrant mix of arts, music, The MRA continues the divestment of its William currently remain under MRA management with Street properties and once the two remaining the remainder divested to private ownership. food, entertainment and festivals. properties are divested, normalisation of the area will occur.
PERFORMANCE — MRA ANNUAL REPORT 2018/19 — 4 5 The Cove at Claisebrook Village.
A model for urban renewal Claisebrook Village has come to life; a vibrant waterfront village has thrived in what was historically a bustling – and then largely dormant – industrial centre. Centred around the idyllic Claisebrook Cove, this redevelopment brought a new way of living to Perth as people were introduced to modern higher density housing surrounded by the businesses, facilities, amenities and natural spaces they need to enjoy a cosmopolitan lifestyle.
46 — MRA ANNUAL REPORT 2018/19 — PERFORMANCE PERFORMANCE workers New 6,000 Resident Investment Commercial/ population BUNURU attraction office/retail (est.) Adulthood 2,500 130,000m2 $685 MILLION Project area Government 137.5 investment Hectares $127 MILLION* Dwellings 1,450
Note: These are estimated figures based on current projections. *This includes MRA investment only.
An award-winning urban renewal project, Claisebrook Village transformed more than 130ha of former industrial wasteland into a cosmopolitan waterfront community and was the genesis of the MRA’s unique redevelopment authority model. Today, the project is largely complete with planning control for most of the area returned to the City of Perth. The MRA remains responsible for a number of strategic assets and landholdings in Claisebrook Village. Current responsibilities include ongoing monitoring and maintenance at Mardalup Park and leasing at City Farm. The MRA continued to investigate asset handover options, future development opportunities and planning constraints for the remaining Government Claisebrook is a vibrant waterfront village. landholdings in order to progress normalisation of the project.
PERFORMANCE — MRA ANNUAL REPORT 2018/19 — 4 7 Investment attraction An award winning inner-city Resident $300 population community MILLION 1,250 The construction of Perth’s first traffic BUNURU Dwellings 460 Adulthood tunnel in Northbridge in 2000 left a corridor of vacant land above which Government has since been transformed into an investment award winning, inner-city community.
3,500workers New $60 Contemporary built form combined with Project MILLION Commercial/ area 27 office/retail (est.) the restoration of heritage properties Hectares 70,000m2 has created a chic urban community, providing hundreds of unique dwellings Note: These are estimated figures based on current projections. and attracting continued investment. Over the past decade, the New Northbridge Project has restored the status of this important inner-city area as a cultural, community and commercial hub with new opportunities for emerging business and social engagement. The redevelopment of 27ha of land left vacant from construction of the Northbridge Tunnel, saw the restoration and adaptive reuse of many heritage buildings including old bottling factories and bakeries from the early 1900s. In 2018-19, the MRA granted development approval for a $14million, 126-room hotel bordering the Perth Cultural Centre Project. Approximately 75% of New Northbridge has been normalised with planning authority returned and the divestment of assets to the respective local government authorities; the City of Perth and the City of Vincent.
48 — MRA ANNUAL REPORT 2018/19 — PERFORMANCE Residential development above the Northbridge Tunnel. East Perth Power Station. PERFORMANCE
Reinventing a heritage icon The State Government announced a $30million investment from the 2019-20 State An iconic industrial landmark, the vision Budget to fund long-awaited site works at for the revitalised East Perth Power Station the East Perth Power Station. A major step is to create a contemporary, waterfront forward for the project, these funds will precinct that celebrates and reinterprets be used towards the relocation of existing the heritage listed building. New public Western Power and ATCO Gas infrastructure. spaces, pedestrian and cycling links along the Swan River foreshore will be part of This landmark site offers opportunities for a the new mixed-use development, creating development that will celebrate the heritage more opportunities for Western Australians value of this iconic Perth building, and allow and visitors to Perth to engage with our the community to interact with this part of iconic river environment. the city’s social history. Future development will create new living, employment and The East Perth Power Station Project recreation opportunities and ensure the Area covers 8.5ha of prime riverfront social and cultural heritage value of the land, including the heritage-listed power site is preserved and interpreted for future station building and abundant scenic open generations to enjoy. space. The MRA’s vision is to transform the site into a contemporary riverfront The release of the second stage of the destination, complementing the emerging sales process is expected by the end of the eastern city precinct that Optus Stadium 2019 calendar year and appointment of the now calls home. Preferred Proponent in early 2020.
DJeRAN Fertility
Project area 8.5 Hectares
East Perth Power Station. PERFORMANCE — MRA ANNUAL REPORT 2018/19 — 4 9 MIDLAND REDEVELOPMENT AREA Project The revitalisation of Midland continues to BUNURU area 161 transform this important strategic city centre Hectares Adulthood and gateway to the Swan Valley and Perth Hills. The Midland Redevelopment Area covers 160ha of land 18kms east of the Perth CBD and encompasses the area in and around the former Railway Workshops and Midland city centre. Plans to extend the redevelopment Commercial/ area in 2019-20 will facilitate redevelopment office/retail (est.) around the eastern corridor of the State 116,000m2 Government’s METRONET initiative.
Visitors enjoy the Water Line misting feature at Railway Square, Midland Workshops.
50 — MRA ANNUAL REPORT 2018/19 — PERFORMANCE PERFORMANCE
Investment Expected year Mural on the east wall of Victoria Quarter at the Midland attraction of completion Workshops by Telmo Miel. $4.7 BILLION 2025+
Dwellings Resident 7,000 population Government 14,000 investment $490 workers New MILLION* 18,300
Note: These are estimated figures based on current projections. *This includes MRA, Department of Health and WA Police investment.
An exciting future built from a proud history. In 2018-19, the MRA approved 16 development Due for completion in 2019-20, the Stan applications representing $47,413,995 of future and Jean Perron Child Advocacy Centre Building from a rich commercial and civic past, development projects, including approval will be the second facility of its kind in Midland continues to emerge as one of Perth’s for plans for the new METRONET railcar Australia providing essential community most significant city centres. An initial phase manufacturing facility in Bellevue. based services for children and young of revitalisation saw the restoration of the people in need. The Centre will join the iconic Midland Workshops and paved the way In June 2019 the Minister for Planning Plus Life Bone and Tissue Bank, GP Super for a strong future as a centre of knowledge announced that the METRONET East Clinic, Icon Cancer Centre, St John of God and healthcare. As private development and Redevelopment Area will be expanded to Midland Public Hospital and the Curtin investment continues, the State Government’s include the areas surrounding the Bayswater Midland Campus all of which have been METRONET plan will ensure the greater and Forrestfield stations. The MRA will soon developed in the past five years. Midland community has access to modern begin the statutory process to extend the public transport connections. Midland Redevelopment Area to include these In 2019-20, the MRA will continue to areas around the stations. progress planning outcomes, commercial The MRA continues its delivery of an exciting negotiations and investment attraction urban renewal program for Midland that will Construction continued on the new state-of-the- strategies to complete the vision for ultimately deliver 7,000 new residential dwellings, art Curtin University Medical School, a key part Midland and maximise the potential of create more than 18,000 new jobs and attract well of the Midland Master Plan to reposition the this important metropolitan centre. over $5.5billion of combined Government and historic Workshops precinct as a medical and private investment to the area. education hub.
PERFORMANCE — MRA ANNUAL REPORT 2018/19 — 5 1 ARMADALE REDEVELOPMENT AREA At the heart of one of the State’s fastest growing Commercial negotiations with Yolk Property Group metropolitan corridors, Armadale is a key were finalised, which will see development and Comprised of the Armadale and Wungong Urban strategic centre for rural and hills communities subdivision plans progressing over the next 6 to 12 projects, the Armadale Redevelopment Area and the broader south east metropolitan region. months. Together with Southern Cross Care, Yolk covers more than 2,000ha of land and represents Property Group will develop Watermark Champion more than $400million of Government investment Focused activity in key areas within the city Lakes - a residential community featuring (including Development Contribution Scheme centre, and in parts of Forrestdale and Kelmscott standard and micro-lot homes, apartments and funding), with a forecast private investment are helping to realise the vision set in master townhouses suitable for all stages of life including attraction of $1.2billion. The State Government’s plans for these areas and create a connected, into retirement, and a new foreshore precinct with METRONET plan will create essential local complimentary mix of industry, housing, cafes, shops and public open spaces. job opportunities for the growing south east commercial and retail activity and community metropolitan community, deliver improved public infrastructure. A review of the planning scheme and delivery model for Forrestdale Business Park and transport outcomes and help attract further private The MRA progressed demolition works this commencement of the City West of Rail project investment in the region. year to make way for the removal of the Denny were also achieved this year. This aimed to Avenue level crossing – one of the worst traffic One of WA’s fastest-growing regional centres. maximise local investment attraction, identify intersections in Perth and a major physical strategic development opportunities of Following more than 15 years of successful barrier dividing the Kelmscott town centre. Government landholdings and support the urban redevelopment, the revitalisation of Part of the State Government’s METRONET creation of City West of Rail as a future transit- Armadale is focused on key strategic areas level crossing removal program, this $69million oriented communities and the Forrestdale that will facilitate improved employment project will improve public safety and will Business Park into one of Perth’s major and infrastructure outcomes for the local reconnect the Kelmscott community. community. employment nodes.
52 — MRA ANNUAL REPORT 2018/19 — PERFORMANCE PERFORMANCE
Investment Expected year attraction Project of completion area 465 $477 Hectares MILLION 2020+
Dwellings 1,150 Resident KAMBARANG/BIRAK population Government 3,890 Childhood/Adolescence investment
$165 workers New MILLION* 20,000 Commercial/ office/retail (est.) 2,202,400m2 Note: These are estimated figures based on current projections. *This includes MRA, Department of Health and WA Police investment.
Armadale train station.
PERFORMANCE — MRA ANNUAL REPORT 2018/19 — 5 3 Sienna Wood is a joint venture housing development at Wungong between Stockland and the Department of Housing.
54 — MRA ANNUAL REPORT 2018/19 — PERFORMANCE PERFORMANCE
A sustainable community nestled within In 2018-19, the MRA commenced a major Work over the past 10 to 15 years has a natural environment. review of the Wungong Urban Water established a robust planning framework Development Contribution Scheme (including to catalyse development of land that has The Wungong Urban Project is transforming a public consultation process) to support the significant water supply constraints. With 1,394ha of semi-rural, undevelopable land into sustainable development of the area and more a Water Management Plan, Master Plan, one of Australia's smartest, most innovative and equitably share the cost of providing public Development Contribution Scheme and sustainable suburban communities providing infrastructure including parks and community Regulatory and Statutory Frameworks now in new living opportunities for thousands of facilities, roads, drainage systems and place, the MRA will prioritise completion of its Western Australians. environmental remediation. role in this legacy project over the coming year. To begin this process, an amendment to the The growing suburbs of Hilbert and Haynes A new district flood model – nearing finalisation Metropolitan Region Scheme was lodged with are located just three kilometres west of the – will inform the Drainage Water Management the Western Australian Planning Commission in Armadale city centre and make up a large Plan for the Wungong Urban Water project and 2018-19. portion of the Wungong Urban Water project. provide greater certainty for landowners and Set to provide residential lots and homes for developers. The model is a first for metropolitan Development will continue to realise the full around 50,000 people, the Wungong Urban Perth. The MRA will also continue its work with vision for the Wungong Urban Water project Water Project will also include delivery of new the City of Armadale to expedite normalisation. – and provide essential opportunities for schools, a future town centre, a major regional home ownership for thousands of Western More than $70.2million of development was recreation reserve and landscaped local parks. Australians. also approved, including 101 development applications resulting in 277 new single residential dwellings.
Project area 1,394 Hectares OVER KAMBARANG/BIRAK Dwellings 14,000 Childhood/Adolescence Expected year Government of completion Resident investment population 2020 $265 50,000+ MILLION*
Note: These are estimated figures based on current projections.
PERFORMANCE — MRA ANNUAL REPORT 2018/19 — 5 5 Visitors enjoy the new Snake Pit facilities including a 12 foot deep skate bowl, quarter pipe, stairs, ramps, rail and more.
KAMBARANG Childhood
SCARBOROUGH REDEVELOPMENT AREA One of Western Australia’s most iconic coastal suburbs, Scarborough has always attracted strong visitor numbers and is recognised as a strategically significant centre for business, tourism and investment. A strong, local community has long advocated for the full potential of this popular beachside suburb to be realised. The MRA has developed a master plan for a 100ha redevelopment area that stretches across 1.6km of coastline and has since completed an initial redevelopment of the foreshore that is attracting thousands of visitors each year to explore new playgrounds, skate facilities and family attractions.
56 — MRA ANNUAL REPORT 2018/19 — PERFORMANCE PERFORMANCE
The Lotterywest Whale Playground is full of unique and The award-winning Scarborough beachfront is drawing Expected year creative play elements. thousands of visitors. of completion 2020+
Project area 100 Government Hectares investment $100 MILLION*
Note: These are estimated figures based on current projections.
An iconic beachfront destination. The opening of the new surf club facilities in Excellence 2019 as the Best Planning Ideas – October 2018 aligned with the commencement Large Project for advancing planning practice An award-winning revitalisation of the of weekend patrols for the 2018-19 summer and delivering large-scale community benefit. Scarborough beachfront is drawing thousands season. The project also won industry acclaim at the of visitors to the foreshore and catalysing 2018 WA UDIA Awards for Best Government private investment in the area. Landowners With the first phase of redevelopment now and Public Use project, received two State and developers are progressing redevelopment complete, planning and development will Public Relations Institute of Australia (PRIA) plans for large landholdings in this iconic commence next year on two new commercial awards and won the National PRIA award for suburb, helping to realise the vision for development sites situated north and south of Best Government Relations Campaign. Scarborough as one of the Australia’s best the amphitheatre, which form the full vision for beachfront destinations. Scarborough Square. The MRA will continue The MRA continued to support the City of its commercial negotiations with private Stirling and a number of developers within In 2018-19, the MRA and the City of Stirling developers for range of new cafes, restaurants, the Scarborough project area to realise the completed new facilities for the Scarborough bars and shops that engage with the beachfront potential of their landholdings, and to continue Surf Life Saving Club and the City’s Beach and with the existing foreshore commercial to attract investment and create new job Services. Providing modern clubrooms and precinct. opportunities for the local community. amenities, improved beach and foreshore access, and incorporating a public kiosk and The redevelopment of Scarborough has been change rooms, the new surf club building achieved through collaboration between State has been embraced by patrons and visitors and local government and this approach was and is a contemporary architectural feature awarded during the year. The $100million that complements the revitalised foreshore project was recognised at the Planning Institute landscape and new beachside attractions. of Australia National Awards for Planning
PERFORMANCE — MRA ANNUAL REPORT 2018/19 — 5 7 BUNURU Adulthood
Subiaco Square sits at the heart of Subi Centro.
58 — MRA ANNUAL REPORT 2018/19 — PERFORMANCE PERFORMANCE
With the Subi Centro Investment Resident Dwellings project largely complete, 1,975 attraction population State Government investment Commercial/ 3,600 office/retail (est.) $1 BILLION is focused on the future 287,000m2 development of residual Government investment Government assets centred Project workers New around delivery of the area 84.5 $200 6,800 Hectares MILLION* Bob Hawke College; a new inner city high school for Perth.
Note: These are estimated figures based on current projections. *This includes MRA and other government investment.
SUBIACO REDEVELOPMENT AREA Breathing new life into Subiaco The MRA granted planning approval for the second building, a $21.9million six-storey An award-winning urban renewal program for Recognised internationally as one of Australia’s development incorporating 80 dwellings and Subiaco is experiencing a renaissance with best urban renewal projects, Subi Centro has a ground floor café, with construction due to delivery of a second wave of redevelopment seen the transformation of more than 80ha of commence by early 2020. When fully complete, underway. With the Subi Centro project largely largely derelict industrial land into a vibrant, the Puresilver Corporation development will complete, State Government investment is transit-oriented, sustainable extension of the provide 360 apartments with a mix of one, two focused on the future development of residual existing Subiaco community. and three-bedroom floor plans. Each building Government assets centred around delivery of Development activity continued this year includes resident facilities and full-time, onsite the Bob Hawke College; a new inner-city high in the final parcels of land remaining under leasing and management staff. school for Perth. The transformation of Subi the authority of the MRA, primarily within East continues to breathe new life into Subiaco, the Australian Fine China and Hood Street building on the legacy of more than 20 years of precincts. urban redevelopment. The first stages of a four-building development by Puresilver Corporation was completed in the Australian Fine China precinct earlier this year and welcomed its first residents in April 2019.
PERFORMANCE — MRA ANNUAL REPORT 2018/19 — 5 9 KAMBARANG Childhood
A place for living, learning and leisure In 2018-19, the MRA approved plans for The Subi East project will provide community construction of Stage 1 of the new Bob Hawke use for Subiaco Oval and the retention and Jointly delivered by the MRA and LandCorp, College and subsequent plans for demolition of restoration of the State heritage-listed entry the Subi East project will transform 35.6ha the Subiaco Oval grandstands. gates and the Sandover Medal Walk. A number of inner urban land into a vibrant mixed of heritage buildings at the former Princess use precinct, reconnecting Subiaco with Being constructed on the former Kitchener Park Margaret Hospital site – which is now under the adjacent civic centres of West Perth and site, the new $71million Bob Hawke College MRA Management – will also be preserved and West Leederville. The project will include will utilise the iconic Subiaco Oval as its playing adapted for future use. redevelopment of Subiaco Oval and Princess fields. The new inner-city high school will Margaret Hospital (PMH), two iconic Western welcome its first students in 2020. A contract was Opportunities for activation of the PMH site Australian sites, to deliver contemporary also awarded and demolition works commenced were explored during the year and will be mixed-use development and a high quality to remove the ageing stadium infrastructure, considered until the demolition and future public realm that promotes active and passive which is due to be completed early in 2020. development of the hospital buildings can commence. recreation, employment and investment. A vision concept for the full 35.6ha Subi East In collaboration with LandCorp – and working Project Area was released for public consultation In 2019-20, the MRA and LandCorp will seek State together with the community, the Traditional in early 2019, following more than 12 months Government approval of the business case for the Owners and the City of Subiaco – the MRA is of consultation with the community and other wider Subi East project area, paving the way to facilitating delivery of the Subi East project stakeholders. The concept features a connected, commence master planning and detailed design. through implementation of a robust planning vibrant new community, with strong transport Framework. links, walking and cycling paths and a network of high-quality landscaped green spaces linking it to surrounding areas.
60 — MRA ANNUAL REPORT 2018/19 — PERFORMANCE Aerial view of 35.6ha SubiPERFORMANCE East redevelopment.
Project area 35.6 Hectares
Government investment $6.6 MILLION*
*This includes MRA and other government investment such as the delivery of Bob Hawke College.
A number of heritage buildings at the former Princess Margaret Hospital site – which is now under MRA Management – will also be preserved and adapted for future use.
The MRA and LandCorp will also continue to collaborate with the Whadjuk Working Party utilising the highly successful Kaart Koort Waarnginy model. This innovative approach to cultural engagement, developed by the MRA and the Whadjuk Traditional Owners, will ensure the stories of Aboriginal culture and heritage are recognised and shared throughout the public realm of the Subi East Project.
PERFORMANCE — MRA ANNUAL REPORT 2018/19 — 6 1 Wirin statue at Yagan Square.
The 9m high Wirin statue at Yagan Square represents the Noongar cultural spirit knowledge in a tall, strong, suggestive yet unmistakeable Aboriginal figure with smooth contemporary lines. His spear on one side and mirra (spear thrower) connect his line to the earth, depicting the unity and connective continuity of spirit.
62 — MRA ANNUAL REPORT 2018/19 — GOVERNANCE GOVERNANCE
The organisational chart below represents the MRA’s reporting structure (as at July 2019).
MINISTER FOR LANDS
LAND REDEVELOPMENT AUDIT AND RISK MANAGEMENT COMMITTEES BOARD COMMITTEE
CHIEF EXECUTIVE OFFICER
EXECUTIVE DIRECTOR EXECUTIVE DIRECTOR EXECUTIVE DIRECTOR EXECUTIVE DIRECTOR COMMERCIAL AND PLANNING PROJECT DELIVERY PLACE MANAGEMENT BUSINESS SERVICES
GOVERNANCE — MRA ANNUAL REPORT 2018/19 — 6 3 BOARD AND COMMITTEES
As a Statutory Authority of the State by the WAPC; MR GEORGE MCCULLAGH, Government of Western Australia, the MRA • one member, who in the opinion of the Board Chairperson is governed by a Board appointed by and Minister, has knowledge of or experience answerable to the Minister. The MRA Board Mr McCullagh was appointed as Chairperson in local government; and sets the strategic direction of the MRA and of the MRA and LandCorp Boards effective monitors its performance. The Board’s key • each of the others is to be a person who, 1 January 2018. Mr McCullagh was previously functions are Strategy, Monitoring, Risk in the opinion of the Minister, has relevant a partner with international firm Deloitte. Management and Compliance. qualifications. Over the past 15 years, he has worked as a consultant in independent practice, providing A relevant qualification is knowledge of, The Board comprises seven members, each commercial and advisory services to a range and experience in, one or more of the fields appointed by the Minister for a term no longer of planning, resource industry, infrastructure of urban planning, business management, than three years. Members are eligible and redevelopment organisations in Western property development, financial management, for reappointment. The Metropolitan Australia. Redevelopment Authority Act 2011 requires that engineering, transport, housing and community of the seven affairs. Board members are remunerated Mr McCullagh is a member of the Australian Board members: according to Public Sector Commission Institute of Company Directors. guidelines. Those members who are in public • one is to be appointed member of the Board employment are not remunerated. of management of the Western Australian Planning Commission (WAPC) nominated
64 — MRA ANNUAL REPORT 2018/19 — PERFORMANCE GOVERNANCE
MS KYLEE SCHOONENS, MR SIMON READ, MS DALE PAGE, Board Director Board Director Board Director Ms Schoonens is a member of the MRA and Over 25 years of working with Australia’s Ms Page is a member of the MRA and LandCorp LandCorp Boards and Chairperson of the leading corporate recovery specialists, Mr Read Boards and Chairperson of the Armadale and Midland and Scarborough Land Redevelopment has honed a hands-on skillset, specialising Subiaco Land Redevelopment Committees. Committees. As an experienced architect, in corporate reconstruction, turnaround and As Director of Planning and Community Ms Schoonens has led the design and delivery business improvement. Development at the City of Joondalup, a of many aged care, multi-residential, retirement Mr Read is a member of the MRA and LandCorp position she has held since 2010, Ms Page has and community projects across Western Boards and is Chairperson of the MRA’s Audit considerable experience in delivering land Australia. and Risk Management Committee. development projects throughout Western She was the recipient of the 2015 Australian Australia. Ms Page is currently responsible for Mr Read currently runs a consulting business Institute of Architects WA Emerging Architect statutory and strategic urban planning, building specialising in the complex area of the Personal Award and the 2014 40under40 Award for her approvals, environmental health, planning Property Securities Act. He has worked across work within the architectural profession. and building compliance and community many industries with significant experience development activities with the City of Ms Schoonens is also a Non-Executive Director in forestry, mining, engineering, finance Joondalup. for Bethanie, WA’s largest not-for-profit aged and property. Mr Read is a graduate of the care provider and a Residential Committee Australian Institute of Company Directors and member for the Property Council of Australia a Chartered Accountant. (WA Division). She previously held roles as a Division Councillor for the Property Council and a Chapter Councillor for the Australian Institute of Architects. Ms Schoonens is a Director of the Fratelle Group and a graduate of the Australian Institute of Company Directors.
GOVERNANCE — MRA ANNUAL REPORT 2018/19 — 6 5 MS REBECCA FIELD, MR PAUL LAKEY, MS JANE BENNETT, Board Director Board Director Board Director Ms Field is a member of the MRA and LandCorp Mr Lakey is member of the MRA Board Ms Bennett is a member of the MRA and Boards and a member of the Audit and Risk and a member of the MRA’s Audit and Risk LandCorp Boards and Chairperson of the Management Committee. She is a graduate of Management Committee. He is also Past Central Perth Land Redevelopment Committee. the Australian Institute of Company Directors. President of the Urban Development Institute With extensive experience as a practising of Australia (WA); former member of the Urban Ms Field is also a partner at Corrs Chambers town planner in local government and private Development Institute of Australia's National Westgarth. Known for her combination of practice, she has been instrumental in the Board and is currently Regional General excellent technical ability, good commercial planning and delivery of major residential, Manager – West (WA, SA, NT) for listed national sense and strategic thinking, Ms Field commercial and industrial projects in Western property developer PEET Limited. advises clients on the legal, strategic and Australia, as well as major government and risk management issues associated with Mr Lakey has professional qualifications in civil/ institutional projects. Ms Bennett is a strong property development and redevelopment structural engineering and is currently a Fellow advocate for, and actively involved in the projects and the sale, acquisition and leasing of both the Australian Institute of Management planning reform agenda. She holds a Bachelor of large commercial, retail, industrial, pastoral, and the Australian Institute of Project of Arts in Urban and Regional Planning, a agricultural and tourism assets. Management. Mr Lakey has almost 30 years of Masters in Business Administration and is a experience in the property and development graduate of the Australian Institute of Company Ms Field also has many years’ experience in industry and has worked on many facets of Directors. Ms Bennett was made a Fellow of the property and development finance. She is on property development across Australia, Europe Planning Institute of Australia in 2015 for her Corrs’ Audit and Risk Management Committee and the Middle East. contribution to planning. and is a director of Corrs Support Services Pty Ltd, Corrs Enterprises Pty Ltd and Corrs Ms Bennett is an owner and Director at CLE Enterprises Holdings Pty Ltd. Town Planning and Design and is a member of the Western Australian Planning Commission. Ms Bennett is a UDIA WA Councillor and Chair of the Planning Committee.
66 — MRA ANNUAL REPORT 2018/19 — GOVERNANCE GOVERNANCE
2018-19 BOARD AND COMMITTEE REMUNERATION
In 2018/19, the Board Directors met on 11 occasions, including 9 MRA Board meetings and 2 Board Activity sessions.
Board Remuneration
Position Committee Meetings Period of Type of Actual member attended membership remuneration remuneration
Chairperson Mr George McCullagh 11 12 Months Per Annum $53,550.00
Board Member Ms Kylee Schoonens 10 12 Months Per Annum $33,360.00
Board Member Mr Simon Read 10 12 Months Per Annum $33,360.00
Board Member Ms Dale Page 8 12 Months Per Annum $0.00
Board Member Ms Rebecca Field 10 12 Months Per Annum $33,360.00
Board Member Mr Paul Lakey 7 12 Months Per Annum $33,360.00
Board Member Ms Jane Bennett 10 12 Months Per Annum $33,360.00
GOVERNANCE — MRA ANNUAL REPORT 2018/19 — 6 7 Visitors at the Cosy @ the Quay event on the iconic bridge at Elizabeth Quay, taking in the city from a different angle.
Audit and Risk Management Committee The MRA Board has an Audit and Risk Management Committee that addresses issues particular to the roles and responsibilities assigned by the Board to the Committee. Principally, these relate to financial and risk issues that present for the MRA.
Remuneration The Audit and Risk Management Committee members are not remunerated. In 2018/19, four Audit and Risk Management Committee meetings were held.
Position Committee member Meetings attended
Audit and Risk Management Committee
Member Mr Simon Read 4
Member Ms Rebecca Field 4
Member Mr Paul Lakey 4
68 — MRA ANNUAL REPORT 2018/19 — GOVERNANCE GOVERNANCE
Land Redevelopment Committees A relevant qualification is knowledge of, As a result, three Board members, three and experience in, one or more of the fields common members and two common The Land Redevelopment Committees of urban planning, business management, alternative members were appointed across (LRCs) have been established for each property development, financial all five LRCs as the next step of the Redevelopment Area to enable community management, engineering, transport, harmonisation program. and Local Government involvement in the housing, tourism development, planning, The long term intention is for the development and delivery of urban renewal the law or community affairs. Members of the establishment of a single LRC with common projects. The five committees, for Armadale, LRCs are appointed for a term no longer than LRC members and a Local Government Central Perth, Midland, Scarborough and two years and may be reappointed. Subiaco respectively have planning powers representative as required. However, this will In August 2018, Cabinet approved the delegated by the MRA Board and provide require amendments to the MRA Act. harmonisation of the five LRCs. advice on local planning matters. The MRA Act provides that an LRC consist of five Cosy @ the Quay 2019. members appointed by the Minister of whom: • one is to be a member of the MRA Board of Management nominated by the MRA; • one is to be a person nominated in accordance with section 81 of the MRA Act; and • each of the others is to be a person who in the opinion of the Minister, has a relevant qualification.
GOVERNANCE — MRA ANNUAL REPORT 2018/19 — 6 9 Remuneration In 2018-19, the following number of LRC meetings were held: • four Armadale LRC meetings; • six Subiaco LRC meetings; and • six Central Perth LRC meetings; • three Scarborough LRC meetings. No Midland LRC meetings were held.
Position Committee member Type of remuneration Period of membership Actual remuneration
Armadale Land Redevelopment Committee
Chairperson Ms Dale Page Not eligible 12 months $0.00
Deputy Chairperson Ms Karen Hyde Sessional 12 months $900.00
Member Prof. Geoffrey London Sessional 12 months $1,080.00
Member Mr James Hewitt Sessional 12 months $540.00
Member Cr Ruth Butterfield Sessional 11 months $1,080.00
Alternate Member Mr David Hartree Sessional 12 months $0.00
Alternate Member Ms Diana Wearing-Smith Sessional 12 months $0.00
70 — MRA ANNUAL REPORT 2018/19 — GOVERNANCE GOVERNANCE
Position Committee member Type of remuneration Period of membership Actual remuneration
Central Perth Land Redevelopment Committee
Chairperson Ms Jane Bennett Nil 12 months $0.00
Deputy Chairperson Ms Karen Hyde Sessional 12 months $1,500.00
Member Prof. Geoffrey London Sessional 12 months $1,350.00
Member Mr James Hewitt Sessional 12 months $810.00
Member Mr Eric Lumsden Not eligible 12 months $0.00
Alternate Member Mr David Hartree Sessional 12 months $0.00
Alternate Member Ms Diana Wearing-Smith Sessional 12 months $0.00
Position Committee member Type of remuneration Period of membership Actual remuneration
Midland Land Redevelopment Committee
Chairperson Ms Kylee Schoonens Nil 12 months $0.00
Deputy Chairperson Ms Karen Hyde Sessional 12 months $0.00
Member Prof. Geoffrey London Sessional 12 months $0.00
Member Mr James Hewitt Sessional 12 months $0.00
Member Cr Charlie Zannino Sessional 1 month $0.00
Alternate Member Mr David Hartree Sessional 12 months $0.00
Alternate Member Ms Diana Wearing-Smith Sessional 12 months $0.00
Former Member Cr Mark Elliott Sessional 11 months $0.00
GOVERNANCE — MRA ANNUAL REPORT 2018/19 — 7 1 Position Committee member Type of remuneration Period of membership Actual remuneration
Scarborough Land Redevelopment Committee
Chairperson Ms Kylee Schoonens Nil 12 months $0.00
Deputy Chairperson Ms Karen Hyde Sessional 12 months $300.00
Member Prof. Geoffrey London Sessional 12 months $810.00
Member Mr James Hewitt Sessional 12 months $540.00
Member Cr Bianca Sandri Sessional 1 month $0.00
Alternate Member Mr David Hartree Sessional 12 months $270.00
Alternate Member Ms Diana Wearing-Smith Sessional 12 months $270.00
Former Member Cr David Boothman Sessional 12 months $810.00
Position Committee member Type of remuneration Period of membership Actual remuneration
Subiaco Land Redevelopment Committee
Chairperson Ms Dale Page Not eligible 12 months $0.00
Deputy Chairperson Ms Karen Hyde Sessional 12 months $1,200.00
Member Prof. Geoffrey London Sessional 12 months $1,620.00
Member Mr James Hewitt Sessional 12 months $1,080.00
Member Mr Murray Rowe Sessional 12 months $1,620.00
Alternate Member Mr David Hartree Sessional 12 months $0.00
Alternate Member Ms Diana Wearing-Smith Sessional 12 months $0.00
72 — MRA ANNUAL REPORT 2018/19 — GOVERNANCE GOVERNANCE
EXECUTIVE MANAGEMENT
In accordance with section 109(2) of the MRA Act, and subject to the control of the MRA Board, the Chief Executive Officer (CEO) administers the day to day operations of the agency.
MR SEAN HENRIQUES, Accountants. With over 20 years of Acting Chief Executive Officer experience across a range of industries in the private and public sector, the majority In the role of CEO, Mr Henriques plays a central of that time has been spent in the role in the transformation and renewal of implementation of strategic business change metropolitan Perth, as well as leadership of initiatives and major transformational projects the MRA as it merges with LandCorp. He was in both Australia and the United Kingdom. previously responsible for overseeing delivery of a suite of urban regeneration projects including The MRA’s organisational structure has four Elizabeth Quay, Perth City Link, Yagan Square divisions – Planning, Project Delivery, Place and the Scarborough foreshore along with the Management and Commercial and Business continued redevelopment of East Perth, Midland, Services – with each managed by an Armadale and Subiaco in his former role as Executive Director. Working together, each Executive Director of Project Delivery at the MRA. division contributes to the delivery of redevelopment projects of strategic Mr Henriques is a graduate of the Australian significance that are changing the way Institute of Company Directors and a Fellow people interact with places across the city. of the Association of Chartered Certified
GOVERNANCE — MRA ANNUAL REPORT 2018/19 — 7 3 A series of ‘lantern forms’ by Stuart Green at Yelverton Drive, Midland Railway Workshops.
MR RYAN KEYS, Executive Director – Planning With extensive town planning experience across Local and State Government and private consultancy in Western Australia and New South Wales, Mr Keys leads the Planning Division, which consists of three directorates – Urban Design, Strategy and Innovation, and Statutory Planning. Focusing on policy, planning and design, research initiatives and best practice, the Planning Division encourages sustainable and innovative urban redevelopment.
74 — MRA ANNUAL REPORT 2018/19 — GOVERNANCE GOVERNANCE
MR RICHARD JEFFCOTE, MR PATRICK WARD, MR MARK REUTENS, Acting Executive Director – Project Delivery Acting Executive Director Executive Director Mr Jeffcote has held senior roles at the Rottnest – Place Management – Commercial and Business Services Island Authority, East Perth Redevelopment As Acting Executive Director for Place Mr Reutens, the MRA’s Chief Financial Officer, Authority and Department of Planning and Management Mr Ward is responsible for brings experience from across the public and has a strong background in urban planning placemaking, asset management and private sectors to lead the Commercial and and project management. Leading the MRA’s commercial outcomes across MRA assets Business Services Division which is made up Project Delivery Division, his responsibilities including Elizabeth Quay, Yagan Square and of four directorates - Finance and Treasury, include project feasibility and approvals, project the Midland Railway Workshops. Mr Ward has Procurement and Contracts, Business Services, planning and capital investment, through to over 30 years’ experience in the private sector and Legal and Governance Services. land sales for a suite of projects with an end across the fields of communications, project value of more than $16billion. management, real estate, acquisitions and change management. He is a past Western Australian president and national board member of the Australian Direct Marketing Association.
GOVERNANCE — MRA ANNUAL REPORT 2018/19 — 7 5 Champion Lakes, Armadale
76 — MRA ANNUAL REPORT 2018/19 — AUDITOR'SINDEPENDENT REPORT AUDITORS REPORT AUDITOR'S REPORT
AUDITOR GENERAL
AUDITOR'S REPORT — MRA ANNUAL REPORT 2018/19 — 7 7 78 — MRA ANNUAL REPORT 2018/19 — AUDITOR'S REPORT AUDITOR'S REPORT
AUDITOR'S REPORT — MRA ANNUAL REPORT 2018/19 — 7 9 80 — MRA ANNUAL REPORT 2018/19 — AUDITOR'S REPORT AUDITOR'S REPORT
AUDITOR'S REPORT — MRA ANNUAL REPORT 2018/19 — 8 1 Sunset on the Swan River as the Cosy @ the Quay event commences on the iconic bridge at Elizabeth Quay.
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FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2019
The MRA has pleasure in presenting its audited general purpose financial statements for the financial reporting period ended 30 June 2019 which provides users with the information about the MRA's stewardship of resources entrusted to it. The financial information is presented in the following structure: Index Page Certification of Financial Statements 84 D. Employee Benefits 118 D.1 Employee Related Provisions 118 Statement of Comprehensive Income 86 D.2 Defined Benefit Obligations 120 Statement of Financial Position 88 E. Other Assets and Liabilities 123 Statement of Changes in Equity 90 E.1 Receivables 123 Statement of Cash Flows 91 E.2 Inventories 124 E.3 Other Current Assets 125 Notes to the Financial Statements 93 E.4 Trade and Other Payables 125 A. Performance for the Year 95 E.5 Other Liabilities 126 A.1 Sales and Other Income 95 F. Other Items 127 A.2 Expenses 99 F.1 Related Parties 127 A.3 Notes to the Statement of Cash Flows 102 F.2 Remuneration of Auditors 130 B. Key Assets 103 F.3 Other Provisions 130 B.1 Infrastructure, Property, Furniture and Equipment 103 F.4 Lease Commitments 132 B.2 Investment Properties 107 F.5 Capital Commitments 132 B.3 Intangible Assets 108 F.6 Contingent Assets and Liabilities 133 B.4 Fair Value Measurements 109 F.7 Goods and Services Tax 133 F.8 Events subsequent to the end of the reporting period 133 C. Capital Management 110 F.9 Initial application of Australian Accounting Standards 134 C.1 Financial Instruments 110 F.10 Accounting Standards and Interpretations issued but C.2 Cash and Cash Equivalents 114 not yet effective 136 C.3 Interest Bearing Liabilities 116 F.11 Explanatory Statement 139 C.4 Lease Payables 116
C.5 Finance Costs 117 C.6 Equity 117
FINANCIALS — MRA ANNUAL REPORT 2018/19 — 8 3 CERTIFICATION OF FINANCIAL STATEMENTS
For the reporting period 30 June 2019. The accompanying financial statements of the Metropolitan Redevelopment Authority have been prepared in compliance with the provisions of the Financial Management Act 2006 (WA) from proper accounts and records to present fairly the financial transactions for the financial year ending 30 June 2019 and the financial position as at 30 June 2019. At the date of signing we are not aware of any circumstances which would render the particulars included in the financial statements misleading or inaccurate.
George McCullagh Simon Read Sean Henriques Mark Reutens Board Chairperson Audit and Risk Management Acting Chief Executive Officer Chief Finance Officer Committee Chairperson 26 August 2019 26 August 2019 26 August 2019 26 August 2019
84 — MRA ANNUAL REPORT 2018/19 — FINANCIALS FINANCIALS The Towers at Elizabeth Quay.
FINANCIALS — MRA ANNUAL REPORT 2018/19 — 8 5 STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2019 Note 2019 2018 Income $000 $000 Sales Revenue A.1 15,540 45,965 Developer Contribution Income 7,164 5,830 Interest A.1 8,684 828 Rechargeable Works 4,148 17,751 Other Income A.1 7,701 22,873 Fair Value Increments on Investment Property B.2 301 - Total Income 43,538 93,247
Expenditure Cost of Goods Sold A.1 13,311 46,600 Employee Benefits A.2 12,451 15,351 Supplies and Services A.2 7,476 8,865 Depreciation and Amortisation A.2 9,383 7,431 Developer Contribution Expense 172 4,147 Finance Costs C.5 5,655 8,240 Rechargeable Works 3,340 17,714 Other Expenses A.2 1,587 2,621 Property Maintenance 6,435 5,644 Sales and Marketing 2,412 2,908 Infrastructure Development Expense 13,458 45,723 Fair Value Decrements on Investment Property B.2 - 22,614 Write Down of Inventory to Net Realisable Value A.1 49,168 10,536 Total Expenditure 124,848 198,394
Net Loss Other Than Income from State Government (81,310) (105,147)
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STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2019 Note 2019 2018 Income from State Government $000 $000 Services Received Free of Charge A.1 199 110 Grants and Contributions from Other Government Agencies A.1 41,354 45,009 Surplus/(Loss) for the Period (39,757) (60,028)
Other Comprehensive Income Items not reclassified subsequently to profit or loss Remeasurements of Defined Benefit Liability D.2 (270) 146 Changes in Asset Revaluation Reserve B.1 - (11) Total Other Comprehensive Income (270) 135
Total Comprehensive Income/(Loss) for the Period (40,027) (59,893)
The Statement of Comprehensive Income should be read in conjunction with the accompanying notes.
FINANCIALS — MRA ANNUAL REPORT 2018/19 — 8 7 STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2019 Note 2019 2018 ASSETS $000 $000 Current Assets Cash and Cash Equivalents C.2 8,776 13,718 Restricted Cash and Cash Equivalents C.2 1,145 1,168 Inventories E.2 74,841 18,151 Receivables E.1 28,705 4,238 Other Current Assets E.3 826 2,261 Total Current Assets 114,293 39,536
Non-Current Assets Restricted Cash and Cash Equivalents C.2 34,616 30,123 Inventories E.2 75,674 168,293 Receivables E.1 40,580 60,093 Property, Furniture and Equipment B.1 28,785 35,260 Investment Properties B.2 59,970 69,975 Infrastructure B.1 190,219 191,246 Intangible Assets B.3 131 292 Total Non-Current Assets 429,975 555,282
Total Assets 544,268 594,818
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STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2019 Note 2019 2018 LIABILITIES $000 $000 Current Liabilities Payables E.4 6,795 20,264 Borrowings C.3 58,300 112,869 Income in Advance E.5 74 6 485 Provisions D.1/2 / F.3 3,597 3,737 Total Current Liabilities 69,438 137,355
Non-Current Liabilities Payables C.4 4,960 4,268 Borrowings C.3 189,657 300,023 Provisions D.1/2 / F.3 4,456 4,284 Other Non-Current Liabilities E.5 728 696 Total Non-Current Liabilities 199,801 309,271
Total Liabilities 269,239 446,626
Net Assets 275,029 148,192
EQUITY Contributed Equity C.6 553,655 386,787 Asset Revaluation Reserve C.6 70 70 Accumulated Losses C.6 (278,696) (238,665) Total Equity 275,029 148,192
The Statement of Financial Position should be read in conjunction with the accompanying notes.
FINANCIALS — MRA ANNUAL REPORT 2018/19 — 8 9 STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2019 Accumulated Contributed Surplus/ Note Equity Reserves (Deficit) Total Equity $000 $000 $000 $000 Balance at 1 July 2017 C.6 407,454 81 (178,783) 228,752 Surplus/(Deficit) - - (60,028) (60,028) Other Comprehensive Income - (11) 146 135 Total Comprehensive Income for the Period 407,454 70 (238,665) 168,859 Transactions with Owners in their Capacity as Owners Distributions to Owners (20,667) - - (20,667) Balance at 30 June 2018 C.6 386,787 70 (238,665) 148,192
Balance At 1 July 2018 C.6 386,787 70 (238,665) 148,192 Initial application of AASB 9 - - (4) (4) Restated Balance at 1 July 2018 386,787 70 (238,669) 148,188 Surplus/(Deficit) - - (39,757) (39,757) Other Comprehensive Income - - (270) (270) Total Comprehensive Income for the Period 386,787 70 (278,696) 108,161 Transactions with Owners in their Capacity as Owners Contributions from Owners 166,868 - - 166,868 Distributions to Owners - - - - Balance at 30 June 2019 C.6 553,655 70 (278,696) 275,029
The Statement of Changes in Equity should be read in conjunction with the accompanying notes.
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STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2019 Note 2019 2018 $000 $000 Cash Flows from Operating Activities Interest Received 605 680 Developer Contribution Fees 5,649 4,616 Other Operating Receipts 30,180 53,400 GST Receipts from Taxation Authority 3,270 11,744 Employee Benefits (12,811) (16,278) Development Contribution Expenses (1,042) (2,145) Payments to Suppliers (37,907) (84,815) GST Payments to Taxation Authority (6,278) - Net Cash provided by/(used in) Operating Activities A.3 (18,334) (32,798)
Cash Flows from Investing Activities Proceeds from Sale of Non-Current Assets 10,922 9,021 Payments for Capital Works (24,504) (16,955) Payments for Capital Assets (3,574) (45,703) Net Cash provided by/(used in) Investing Activities (17,156) (53,637)
Cash Flows from Financing Activities Proceeds from Borrowings 24,156 72,749 Finance Costs Expensed (9,139) (7,017) Repayment of Borrowings (188,220) - Net Cash provided by/(used in) Financing Activities (173,203) 65,732
FINANCIALS — MRA ANNUAL REPORT 2018/19 — 9 1 STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2019 Note 2019 2018 $000 $000 Cash Flows from State Government Grants and Subsidies 41,354 45,250 Distribution to Owners - (20,667) Contribution from Owners 166,867 - Net Cash provided by/(used in) State Government 208,221 24,583
Net increase / (decrease) in Cash and Cash Equivalents (472) 3,880
Opening Cash Balance 45,009 41,129 Cash and Cash Equivalents at the End of the Period C.2 44,537 45,009
The Statement of Cash Flows should be read in conjunction with the accompanying notes.
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2019
ABOUT THESE STATEMENTS Where modification is required and has had a material or significant financial effect upon the reported results, details of that modification The Metropolitan Redevelopment Authority ('the MRA') is a Western and the resulting financial effect are disclosed in the Notes to the Australian Government entity, controlled by the State of Western Australia. financial statements. The nature of operations and principal activities are described in the Overview of the Agency, which does not form part of these financial statements. ROUNDING The MRA is a not-for-profit entity, with profit not being it's principle objective. The financial statements are presented in Australian dollars and all These financial statements were authorised for issue on 26 August 2019 values are rounded to the nearest thousand dollars ($000). by the MRA's Board. COMPARATIVE FIGURES STATEMENT OF COMPLIANCE Comparative figures are, where appropriate, reclassified to be As a not-for-profit reporting entity, the MRA prepares general purpose comparable with the figures presented in the current financial year. financial statements in accordance with Australian Accounting Standards, the Conceptual Framework, Statements of Accounting ACCOUNTING STANDARDS AND INTERPRETATIONS ISSUED Concepts and other authoritative pronouncements of the Australian BUT NOT YET EFFECTIVE Accounting Standards Board (AASB) as applied by the Treasurer’s The MRA did not early adopt any new amended AASs and Interpretations Instructions. Several of these are modified by the Treasurer’s Instructions issued but not yet effective. Refer to Note F.9 for additional information on to vary application, disclosure, format and wording. new and amended Australian Accounting Standards and interpretations The Financial Management Act 2006 and the Treasurer’s Instructions issued but not yet effective. impose legislative provisions that govern the preparation of financial OTHER ACCOUNTING POLICIES statements and take precedence over Australian Accounting Standards (AAS), the Conceptual Framework, Statements of Accounting Concepts Significant accounting policies that summarise the measurement basis and other authoritative pronouncements of the AASB. used and are relevant to an understanding of the financial statements are provided throughout the Notes to the financial statements. BASIS OF PREPARATION The notes are organised into the following sections: The financial statements have been prepared on the accrual basis Page of accounting using the historical cost convention, except for land, Performance for the Year A. 95 buildings (including investment property) and artworks which have Key Assets B. 103 been measured at fair value. The accounting policies adopted in the Capital Management C. 110 preparation in the financial statements have been consistently applied Employee Benefits D. 119 throughout all periods presented unless otherwise stated. Other Assets and Liabilities E. 124 Other Items F. 128
FINANCIALS — MRA ANNUAL REPORT 2018/19 — 9 3 Development Contribution Plans (DCP) are included within the MRA’s The MRA's management of financial and capital risks is aimed at financial statements, as the MRA is deemed to have control over the ensuring that available capital, funding and cash flows are sufficient. operations and financial decision making of the DCP’s. Transactions The below risks arise in the normal course of the MRA's business. and balances between the MRA and the DCP are not presented in the Risk information can be found in the following sections: MRA’s financial statements as they are transactions within the same economic entity. Page Liquidity risk C.1 114 KEY ESTIMATES AND JUDGEMENTS Interest rate risk C.1 110 Judgements, estimates and assumptions are required to be made Credit risk C.1 112 about the presentation of certain financial information. Significant judgements and estimates made in the preparation of these financial CONTRIBUTED EQUITY statements are disclosed in the Notes. Estimates and associated Recognition and Measurement assumptions are based on professional judgements in conjunction AASB Interpretation 1038 Contributions by Owners Made to Wholly- with management's understanding of current circumstances. Owned Public Sector Entities requires transfers in the nature of equity Information about significant areas of estimation, uncertainty and contributions, other than as a result of a restructure of administrative critical judgements in applying accounting policies are: arrangements, to be designated by the Government (the owner) as contributions by owners (at the time of, or prior to transfer) before Page such transfers can be recognised as equity contributions. Capital Fair value of land and buildings B.1/2/4 103/107/109 appropriations have been designated as contributions by owners by Net realisable value of inventory E.2 105 Treasurers Instruction 955 Contributions by Owners Made to Wholly Fair value of investment property B.2 107 Owner Public Sector Entities and have been credited directly to Provision for contaminated sites F.3 131 Contributed Equity. Provisions for employee related benefits D.1 119 The transfers of net assets to/from other agencies, other than as a Expected credit losses A.2/E.1 99/124 result of a restructure of administrative arrangements, are designated FINANCIAL AND CAPITAL RISK MANAGEMENT as contributions by owners where the transfers are non-discretionary and non-reciprocal. The Board has overall responsibility for the establishment and oversight of the MRA's Risk Management Framework. The Audit and Risk Management Committee has oversight of the MRA's internal control system and risk management processes, including the oversight of internal audit activity.
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A. PERFORMANCE FOR THE YEAR
IN THIS SECTION A.1 SALES AND OTHER INCOME This section addresses financial performance for the reporting period Trading Profit including, where applicable, the accounting policies applied and the key 2019 2018 estimates and judgements made. $000 $000 Sales 15,540 45,965 Recognition and Measurement Cost of Sales: Revenue is recognised in the Statement of Comprehensive Income at fair value to the extent that it is probable that the economic benefits will flow Opening Inventory at NRV 186,444 231,847 to the MRA and the revenue can be reliably measured. Transfers from Investment Property 1,570 - Transfers to Property, Plant and Equipment (187) - Purchases 25,167 12,558 Goods Available for Sale 212,994 244,405 Closing Inventory at NRV 150,515 186,444 Cost of Goods Sold 13,311 46,600 Trading Profit / (Loss) 2,229 (635) Less: NRV Write-Down of Inventory 49,168 10,536 Less: Adjustments to Provisions - 1,085 Overall Profit / (Loss) (46,939) (12,256)
Sales Revenue The MRA recognises the sale of land when the significant risks and rewards have been transferred to the buyer, which is normally on settlement of the transaction and transfer of legal title. For conditional exchanges, sales are recognised only when all the significant conditions are satisfied. For sales where part of the purchase price has been deferred, the fair value of the consideration will be the present value of future receipts, discounted at a market discount rate. It is the MRA's practice to maintain an option to repurchase land if the Purchaser breaches any covenants in relation to the future development of the land.
FINANCIALS — MRA ANNUAL REPORT 2018/19 — 9 5 A. PERFORMANCE FOR THE YEAR CONTINUED
Inventories Interest Revenue All land and buildings and capital works held for development and Interest income consists of the following items: subsequent sale are regarded as inventory and are classified as such 2019 2018 in the Statement of Financial Position. Development expenditure is Interest $000 $000 capitalised with reference to the stage of completion of the project. MRA Interest Revenue 95 380 Inventory is held at the lower of cost and net realisable value (NRV). The Development Contribution Plan Interest 479 448 MRA recognises as inventory all of the costs which have been incurred Interest Recognised on Deferred Payments 8,110 - in bringing developed land to a condition ready for sale. Such costs are typically accumulated on a project by project basis. The MRA allocates Total Interest Income 8,684 828 development costs to individual lots within the project on a rational and The MRA recognises interest receivable as it accrues. Interest recognised consistent basis given the specific circumstances of the project. on deferred payments for land sales relates to the increase in the value of Net realisable value is the estimated selling price in the ordinary course the receivable as a result of the time value of money. As such, the MRA's of business, less estimated costs of completion and, if appropriate, the interest revenue is derived predominantly from nominal interest applied estimated costs of making the sale. in respect of staged sales proceeds. Cost includes the costs of acquisition development, holding and borrowing costs incurred during development. See also E.2 Inventories.
Development Contribution Plan Development Contribution Plan (DCP) revenues are recognised when Developers obtain clearance of development/subdivision conditions for land held within the DCP area or at the expiry of the DCP, unless administration of the DCP is transferred to another party.
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Other Income Rental Other Income consists of the following items: The MRA operates a number of commercial tenancies. It also holds a small 2019 2018 number of residential properties. Rental income arising on investment Other Income $000 $000 properties is accounted for on a straightline basis over the lease term and is recognised as income in the periods in which it is earned. Development Applications and Planning 488 633 Fees/Charges Incentives representing rental free periods or reduced rentals are Venue Hire 517 1,007 accounted for in accordance with the rental income policy whereby rental income from investment properties is accounted for on a straight line Rental Revenue 2,481 2,508 basis over the lease term. If not received at the reporting date, revenue Tenant Outgoings - Recoverable 1,492 486 is reflected in the Statement of Financial Position as a receivable and Other Revenue 1,851 2,242 carried at fair value. Reduction in Provision for Remediation - 10,125 Release of Provision for NRV Write Down - 4,251 Tenant Recoverable Outgoings Tenant recoverable outgoings represent funds received from tenants Gain on Disposal of Fixed Assets 872 1,621 for expenditure directly related to their tenancies. These were initially Total Other Income 7,701 22,873 paid for by the MRA when the expenses were incurred and are recorded within the Statement of Comprehensive Income in accordance with the Development Applications, Planning Fees/Charges nature of the expenditure's classification. The MRA receives fees from developers and the community in relation to development applications, subdivision clearances, zoning certificates, Reduction in Provision for Remediation scheme amendments and providing planning documentation. As at 30 June 2018 the lots which related to the provision for contaminated sites were no longer held by the MRA, therefore the surplus requirement The charges and fees are in accordance with Part 6, Metropolitan has been recognised through the Statement of Comprehensive Income. Redevelopment Authority Regulations 2011. The fees and charges are Refer to F.3 for further detail on Contaminated Sites. recognised when they are received.
FINANCIALS — MRA ANNUAL REPORT 2018/19 — 9 7 A. PERFORMANCE FOR THE YEAR continued
Gain on Disposal of Fixed Assets Contributions Gains on the disposal of non-current assets are presented by deducting Contributions are only recognised as revenue when they do not represent from the proceeds on disposal the carrying amount of the asset. Gains contributions by owners. Revenue is recognised at fair value when the are recognised in Profit and Loss in the Statement of Comprehensive MRA obtains control over the assets comprising the contributions. If the Income. contributions are in the form of cash, control is usually obtained when cash is received. If the contributions are in the form of land or buildings, Income from State Government control is usually obtained when settlement of the acquisition occurs 2019 2018 and title is transferred. Contributions of services are only recognised Income from State Government consists of: $000 $000 when a fair value can be reliably determined and the services would be purchased if not donated. Services Received Free of Charge - State Solicitor's Office 199 110 (provision of legal services) Grants and Contributions from Other 41,354 45,009 Government Agencies Total Income from State Government 41,553 45,119
Services Received Free of Charge or for Nominal Cost Services received free of charge or for nominal cost that can be reliably measured are recognised as income at fair value. Where the resource received represents a service that the MRA would otherwise pay for, a corresponding expense is recognised. Receipts of assets are recognised in the Statement of Financial Position.
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A.2 EXPENSES Wages and salaries include termination benefits. These are payments made as a result of the MRA's decision to terminate before the normal Recognition and Measurement retirement date or when an employee accepts an offer of benefits in Expenditure is recognised in the Statement of Comprehensive Income to exchange for the termination of employment. the extent that it is probable that the economic benefits will flow from the MRA and the expenditure can be reliably measured. Superannuation comprises employer contributions paid to the Pension Scheme, Gold State Scheme (GSS), the West State Scheme Employee Benefits Expenses (WSS), the Government Employer Superannuation Board (GESB), or 2019 2018 other superannuation funds in compliance with the Commonwealth Employee Benefits Expenses $000 $000 Government’s Superannuation Guarantee (Administration) Act 1992. Wages and Salaries 11,551 13,816 The Pension Scheme was a defined benefit scheme closed to new Superannuation - Defined Contribution Plans 1,087 1,244 members since 1987. The GSS was a defined benefit lump sum scheme closed to new members since 1995. Employees commmencing Superannuation - Defined Benefit Plans (270) 146 employment prior to 16 April 2007 who were not members of the Pensions Staff Training and Memberships 52 64 Scheme or the GSS became non-contributory members of the WSS. Fringe Benefits Tax 31 81 Employees commencing post 16 April 2007 became members of the GESB Total Employee Benefits Expenses 12,451 15,351 Scheme. From 30 March 2012, existing members of WSS and GESBs have been able to choose their preferred superannuation fund provider. Employee Benefits Employee benefits are all forms of consideration given by the MRA in Contributions to these accumulation schemes extinguish the MRA's exchange for services rendered by employees or for the termination of liability for superannuation charges in respect of employees who are not employment. It includes salaries, superannuation, annual leave, long members of the Pension Scheme or GSS. The Pension Scheme and the service leave, professional memberships, employee wellness program, pretransfer benefit for employees who transferred to the GSS are defined staff training and fringe benefits tax. It does not include other staffing benefit schemes. These benefits are wholly unfunded and the liabilities costs, Board Director allowances, other Board costs or contractors. These for future payments are provided at the end of the reporting period. Refer costs and the on-costs of providing employment such as payroll tax and to D.2 for further detail on Defined Benefit Obligations. workers compensation insurance which do not constitute a benefit to employees can be found within this note under Other Expenses.
FINANCIALS — MRA ANNUAL REPORT 2018/19 — 9 9 A. PERFORMANCE FOR THE YEAR continued
Supplies and Services Depreciation and Amortisation 2019 2018 2019 2018 Supplies and Services $000 $000 Depreciation and Amortisation $000 $000 Administration 133 370 Plant & Equipment B.1 3,313 2,302 Communication 402 410 Furniture & Office Equipment B.1 63 67 Consultants and Contractors 4,065 5,193 Computer Equipment B.1 74 6 492 Insurances 765 819 Lease Improvements B.1 136 137 IT Software and Licences 509 390 Infrastructure B.1 4,964 4,076 Office Occupancy Costs 1,012 631 Software B.3 161 357 Other Supplies and Services 119 311 Total Depreciation and Amortisation 9,383 7,431 Property and Estate Management 471 74 1 Depreciation and Amortisation is charged to the Statement of Total Supplies and Services Expenses 7,476 8,865 Comprehensive Income. Refer to B.1 for further detail on Depreciation Supplies and services are recognised as an expense in the reporting and Amortisation. period they are incurred. The carrying amounts of any materials held for distribution are expensed when materials are distributed.
Office Occupancy Costs Office Occupancy Costs primarily relate to operating lease payments recognised on a straight line basis over the lease term. Operational expenses are recorded within the Property Maintenance classification in the Statement of Comprehensive Income.
Development Contribution Plan Development Contribution Plan (DCP) expenses are recognised when incurred.
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Other Expenses 2019 2018 Loss on Disposal of Assets Losses on the disposal of non-current assets are recognised when Other Expenses $000 $000 the consideration received is lower than the carrying value of the Doubtful Debts - 46 asset. Losses are recognised in Profit and Loss in the Statement of Expected Credit Losses (a) 159 - Comprehensive Income. Bad Debts Written Off - 9 Act of Grace Payments Impairment Expense 58 102 Act of Grace payments accrued in respect of the Scarborough Project Loss on Disposal of Asset 393 665 were $307k in 2017. Net actual payments of $193k plus costs of $30k were Asset Revaluation Expense - 721 made in 2018. Payroll Tax 700 850 Members Expenses Other Expenditure 11 4 Members expenses constitute fees and superannuation paid to Board Act of Grace Payments - (84) and Land Redevelopment Committee members. Penalty and Interest 4 19 Development Contribution Expenses Board and LRC Expenses 262 289 Development Contribution Plan expenses are recognised when incurred. Total Other Expenses 1,587 2,621 Services Provided Free of Charge or for Nominal Cost (a) Expected credit losses were not required to be measured in 2017-18, as Services provided free of charge or for nominal cost that can be reliably AASB 9 has been applied in 2019 for the first time. Refer to F.9 for further detail. measured are recognised within the Statement of Comprehensive Income as an expense under the appropriate category, with an equal and Doubtful Debts/Expected Credit Loss corresponding revenue recorded under sponsorship. Doubtful debts expense was recognised as the movement in the allowance for doubtful debts. From 2019, expected credit losses expense Write-Offs, Losses and Gifts of Public Property is recognised as the movement in the allowance for expected credit During the financial year $49,972 was approved for write off by the MRA losses. The allowance for expected credit losses of trade receivables is Board in relation to bad debts. In prior year the total write-off approved measured at the lifetime expected credit losses at each reporting date. by the MRA Board was $27,258. The MRA assesses the expected credit loss on each debtor individually There were no losses of public money and public other property through and is adjusted for forward-looking factors specific to the debtor, the theft or default in either the current or prior financial year. No amounts economic environment and any held security. were required to be recovered. No gifts of public property were provided by the MRA.
FINANCIALS — MRA ANNUAL REPORT 2018/19 — 101 A.3 NOTES TO THE STATEMENT OF CASH FLOWS 2019 2018 Recognition and Measurement $000 $000 For the purposes of the Statement of Cash Flows, cash and cash equivalent (Increase)/decrease in assets: assets comprise cash on hand and short-term deposits with original maturities Current receivables (a) (24,730) 15,188 of three months or less that are readily convertible to a known amount of cash Other current assets 1,435 (1,606) and which are subject to insignificant risk of changes in value. Other non-current assets 19,513 (31,041) Reconciliation of net cash inflow from operating activities to profit: Inventory charged to Cost of Sales 13,311 46,600 2019 2018 Finance costs expensed 9,139 7, 0 1 7 $000 $000 Increase/(decrease) in liabilities: Surplus/(deficit) for the period other than Payables (a) (7,085) 1,698 income from State Government (81,314) (105,147) Non-cash items: Payables - non current 692 348 Depreciation and amortisation 9,383 7,431 Income in advance 261 (1,531) Net (gain)/loss on sale of assets (418) (1,621) Current provisions (140) (4,062) Revaluation (increment)/decrement (301) 23,213 Other non-current liabilities 32 85 Doubtful debt and asset write-off - 57 Non-current provisions 172 8 (b) Expected credit losses expense 153 - Net change in GST 532 (102) Net cash provided by / Services received free of charge (199) (110) (used in) operating activities (18,334) (32,798) Grants and subsidies - 241 Unwinding of discounts (7,938) - (a) Note that the Australian Taxation Office receivable/payable in respect of GST and the receivable/payable in respect of the sale/purchase of Write down inventory to Net Realisable Value 49,168 10,536 non-current assets are not included in these items as they do not form part of the reconciling items. (b) This reverses out the GST in receivables and payables.
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B. KEY ASSETS
IN THIS SECTION Where market based evidence is available, the fair value of land, buildings, artwork and public art is determined on the basis of current This section addresses key assets of the MRA including infrastructure, market buying values determined by reference to recent market property, plant and equipment and intangible assets. The accounting transactions. When buildings are revalued by reference to recent market policies applied and the key estimates and judgements made in relation transactions, the accumulated depreciation is eliminated against the to key assets are noted where applicable. gross carrying amount of the asset and the net amount restated to the revalued amount. B.1 INFRASTRUCTURE, PROPERTY, FURNITURE AND EQUIPMENT In the absence of market based evidence, the fair value of land, buildings, Recognition and Measurement artwork and public art is determined on the basis of existing use. This Items of property, plant and equipment and infrastructure costing normally applies where assets are specialised or where use is restricted. $5,000 or more and with a useful life of more than two years are Fair value for existing use assets is determined by reference to the cost of recognised as assets and the cost of utilising assets is expensed replacing the remaining future economic benefits embodied in the asset, (depreciated) over their useful lives. Items of property, plant and i.e. the depreciated replacement cost. Where the fair value of buildings is equipment and infrastructure costing less than $5,000 are expensed determined on the depreciated replacement cost basis, the gross carrying directly to the Statement of Comprehensive Income (other than where amount and the accumulated depreciation are restated proportionately. they form part of a group of similar items which are significant in total) Land and buildings are independently valued annually by an external and are held for more than two years of useful life. valuer and recognised annually to ensure that the carrying amount does not differ materially from the asset’s fair value at the end of the reporting Initial Recognition and Measurement period. Artwork and public art are deemed to be of a more subjective Property, plant and equipment and infrastructure are initially recognised nature and are independently valued on a triennial basis. at cost. For items of property, plant and equipment and infrastructure acquired at no cost or for nominal cost, the cost is the fair value at the Derecognition date of acquisition. Upon derecognition of an item of property, plant and equipment and infrastructure, any revaluation surplus relating to that asset is retained Subsequent Measurement in the asset revaluation surplus. On disposal, any revaluation surplus Subsequent to initial recognition as an asset, the MRA uses the relating to that asset is transferred to retained earnings. Transfers from revaluation model for the measurement of land, buildings, artwork and asset revaluation reserve are not made through the profit or loss. public art, and historical cost for all other property, plant and equipment. Land, buildings, artwork and public art are carried at fair value less disposal costs. All other items of property, plant and equipment are stated at historical cost less accumulated depreciation and any accumulated impairment losses.
FINANCIALS — MRA ANNUAL REPORT 2018/19 — 103 B. KEY ASSETS continued
Asset Revaluation Reserve Impairment The Asset Revaluation Reserve is used to record increments and Property, plant and equipment, infrastructure and intangible assets are decrements on revaluation of non-current assets on a class of assets tested for any indication of impairment at the end of each reporting basis, specifically, Buildings, Public Artworks and Artworks. No period. Where there is an indication of impairment, the recoverable revaluations occured in the current financial year and therefore no amount is estimated. Where the recoverable amount is less than the change in the Asset Revaluation Reserve was required. In prior year a carrying amount, the asset is considered impaired and is written down total of $10,761 was transferred from the Revaluation Reserve to offset to the recoverable amount and an impairment loss is recognised. As against the valuation decrement in relation to artworks. the MRA is a not-for-profit entity, unless an asset has been identified as a surplus asset, the recoverable amount is the higher of an asset’s fair Depreciation and Amortisation value less costs to sell and depreciated replacement cost. Infrastructure, property, furniture and equipment are depreciated at The risk of impairment is generally limited to circumstances where an rates based on the expected useful lives using the straight line method. asset’s depreciation is materially understated, where the replacement Depreciation on assets under construction commences when the cost is falling or where there is a significant change in useful life. assets are ready for use. Depreciation is charged to the Statement of Each relevant class of assets is reviewed annually to verify that the Comprehensive Income. The depreciation rates for the various classes of accumulated depreciation/amortisation reflects the level of consumption non-current assets are as follows and are reviewed annually: or expiration of asset’s future economic benefits and to evaluate any impairment risk from falling replacement costs. Class Useful Life Plant and Equipment 3 - 20 years The MRA assessed all classes of Property, Plant and Equipment and Furniture and Office Equipment 3 - 10 years Infrastructure for indicators of impairment as at 30 June 2019, which Computer Equipment 3 - 10 years resulted in a minor impairment expense being recognised for Property, Lease Improvements 10 - 15 years Plant and Equipment of $39,492. The MRA held no goodwill or intangible Infrastructure 15 - 50 years assets with an indefinite useful life during the reporting period.
Distribution or Disposals of Assets at No or Nominal Cost The MRA may be required to transfer assets to another State Government controlled entity at Ministerial direction for no consideration. If it is at the direction of Government it is recognised as a reduction in contributed equity in accordance with AASB 1004 Contributions by Owners.
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Furniture Plant & & Office Computer Leasehold Public Works in Total Land Buildings Equipment Equipment Equipment Improvements Artworks Artworks Infrastructure Progress Assets Year ended 30 June 2019 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 1 July 2018 Gross carrying amount 209 1,041 24,817 643 5,046 2,049 265 3,775 200,314 3,767 241,926 Accumulated depreciation - - (4,445) (175) (1,461) (271) - - (9,068) - (15,420) Accumulated impairment loss ------At 30 June 2018 209 1,041 20,372 468 3,585 1,778 265 3,775 191,246 3,767 226,506
Additions - - 63 - 6 - 15 - 3,937 3,309 7,330 Transfers - - 187 - (30) - - - - (5,252) (5,095) Other disposals - - (64) - (392) - (1) - - - (457) Impairment losses - - (39) ------(19) (58) Depreciation - - (3,313) (63) (746) (136) - - (4,964) - (9,222) At 30 June 2019 209 1,041 17,206 405 2,423 1,642 279 3,775 190,219 1,805 219,004
Gross carrying amount 209 1,041 24,839 629 3,633 2,049 279 3,775 204,250 1,805 242,509 Accumulated depreciation - - (7,633) (224) (1,210) (407) - - (14,031) - (23,505) Accumulated impairment loss ------
During 2018/19 the MRA reassessed the useful life of its Computer Equipment resulting in a reduction in carrying value of $28,828. Consequently, a reduced depreciation expense will be recognised in relation to these assets over their remaining useful life.
FINANCIALS — MRA ANNUAL REPORT 2018/19 — 105 B. KEY ASSETS continued
Furniture Plant & & Office Computer Leasehold Public Works in Total Land Buildings Equipment Equipment Equipment Improvements Artworks Artworks Infrastructure Progress Assets Year ended 30 June 2018 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 1 July 2017 Gross carrying amount 209 2,711 11,316 706 2,023 2,049 416 3,819 164,688 51,456 239,393 Accumulated depreciation - - (2,865) (157) (992) (134) - - (4,991) - (9,139) Accumulated impairment loss ------At 30 June 2017 209 2,711 8,451 549 1,031 1,915 416 3,819 159,697 51,456 230,254
Additions - - 14,877 - 3,067 - - 708 35,626 47,114 101,392 Transfers - (1,670) ------(94,751) (96,421) Other disposals - - (624) (14) (1) - (171) - - - (810) Revaluation increments/ ------31 (752) - - (721) (decrements) Transfers from revaluation ------(11) - - - (11) reserve Impairment losses - - (30) - (20) - - - - (52) (102) Depreciation - - (2,302) (67) (492) (137) - - (4,077) - (7,075) At 30 June 2018 209 1,041 20,372 468 3,585 1,778 265 3,775 191,246 3,767 226,506
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B.2 INVESTMENT PROPERTIES 2019 2018 Recognition and Measurement Investment Property at Fair Value $000 $000 Investment property, principally comprising freehold land and buildings, Carrying amount at start of period 69,975 59,395 is not occupied by the MRA and derives long term rental yields. Additions 1,314 38,924 Investment property is carried at fair value, as mandated by TI 954, representing open-market value determined annually by external valuers. Classified as held for sale or disposed (10,050) (7,400) Changes in fair value are recorded in the Statement of Comprehensive Transfers (to)/from Inventories (1,570) - Income. Investment Property land and buildings were revalued by an Transfers (to)/from Buildings - 1,670 independent external expert as at 30 June 2019. Net gain/(loss) from Fair Value adjustment 301 (22,614) Total Investment Properties 59,970 69,975 Estimates and Judgements Assumptions in estimating fair value are made when assessing the Amounts recognised in Statement of highest and best use of assets. Professional judgement by the valuer is Comprehensive Income for Investment Properties required where the evidence does not provide a clear distinction between Net Revaluation increment/(decrement) 301 (22,614) market type assets and existing use assets. Rental Income 2,481 2,508 Lease Incentives Direct operating expenses from property that From time to time the MRA may offer inducements to tenants to enter generated rental income 354 336 into non-cancellable operating leases. These incentives may include contributions to fit-outs and relocation costs, or rental free periods. Where an incentive has been granted in respect to a contribution to a leasehold fit-out, the value of the contribution is absorbed into the value of the asset as an Investment Property held at fair value.
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B.3 INTANGIBLE ASSETS Impairment Intangible assets with an indefinite useful life and intangible assets Recognition and Measurement not yet available for use are tested for impairment at the end of each Acquired and internally generated intangible assets costing $5,000 with reporting period irrespective of whether there is any indication of a useful life of more than two years or more are capitalised. The cost of impairment. As at 30 June 2019, an intangible asset under development utilising the assets is expensed (amortised) over their useful life. Costs recorded as work in progress was impaired to nil value. This resulted in a incurred below these thresholds are expensed directly to the Statement recognition of an $18,602 impairment expense in relation to the asset. of Comprehensive Income. Software that is an integral part of the related hardware is treated as property, plant and equipment. Software Total Software that is not an integral part of the related hardware is treated as Year ended 30 June 2019 $000 $000 an intangible asset. Software costing less than $5,000 is expensed in the Carrying amount 5,427 5,427 year of acquisition. Accumulated amortisation (5,135) (5,135) Initial Recognition At 30 June 2018 292 292 Intangible assets are initially recognised at cost. For assets acquired at no cost, or for nominal cost, the cost is their fair value at the date of Additions - - acquisition. Amortisation expense (161) (161) Subsequent Measurement At 30 June 2019 131 131 The cost model is applied for subsequent measurement requiring the asset Carrying amount 2,012 (1,881) to be carried at cost less any accumulated amortisation and accumulated Accumulated amortisation (1,881) 131 impairment losses. At 30 June 2019 131 131 Amortisation Amortisation for intangible assets with finite useful lives is calculated for Year ended 30 June 2018 the period of the expected benefit (estimated useful life) on the straight Carrying amount 5,348 5,348 line basis using rates which are reviewed annually. All intangible assets Accumulated amortisation (4,778) (4,778) controlled by the MRA have a finite useful life and zero residual value. At 30 June 2017 570 570 The expected useful lives for each class of intangible asset are: Additions 79 79 Class Useful Life Amortisation expense (357) (357) Software (a) 3 - 5 years At 30 June 2018 292 292 Website 3 years (a) Software that is not integral to the operation of any related hardware.
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B.4 FAIR VALUE MEASUREMENTS Fair Value Measurements 2019 2018 Level 2 fair values are derived using the market approach. The market Level 2 Valuation Techniques $000 $000 approach provides an indication of value by comparing the subject Land B.1 209 209 asset with identical or similar assets for which price information is available. Under this approach the first step is to consider the prices for Artworks and Public Art B.1 4,054 4,040 transactions of identical or similar assets that have occurred recently Investment Properties B.2 59,970 69,975 in the market. If few recent transactions have occurred, it may also be Total Fair Valued Assets 64,233 74,224 appropriate to consider the prices of identical or similar assets that are listed or offered for sale provided the relevance of this information is clearly established and critically analysed. For market valued assets free of encumbrances the value is measured by market transactions involving comparison and analysis of identical or comparable assets. For assets with encumbrances, the income approach is used which converts future cash flow amounts to a single current discounted amount to arrive at a fair value. There were no changes in valuation techniques during the period. Artworks and Public Art were valued as at 30 June 2018. Valuations are undertaken on a triennial basis for Artworks and Public Art. The next valuation will be as at 30 June 2021.
FINANCIALS — MRA ANNUAL REPORT 2018/19 — 109 C. CAPITAL MANAGEMENT
IN THIS SECTION 2019 2018 This section addresses cash, debt and capital position including, where Financial Liabilities $000 $000 applicable, the accounting policies applied and the key estimates and Payables (a) 6,200 14,271 judgements made. Borrowings with WA Treasury Corporation: Floating Rate 107,618 173,306 Recognition and Measurement Initial recognition and measurement of financial instruments is at fair Fixed Rate 140,339 217,362 value which normally equates to the transaction cost or face value. Borrowings: Treasurer's Advance - 12,645 Subsequent measurement is at amortised cost using the effective Borrowings: Western Australian Land Authority - 9,579 interest method. The fair value of trade receivables and payables is the Other Liabilities 728 696 transaction cost or the face value. Total Financial Liabilities 254,885 427,859
C.1 FINANCIAL INSTRUMENTS (a) The amount of Loans and Receivables/Financial Assets at amortised In addition to cash and cash equivalents, the MRA has the following cost excludes GST recoverable from the ATO (statutory receivable). categories of financial assets and financial liabilities: KEY FINANCIAL AND CAPITAL RISKS IN THIS SECTION - Receivables; - Payables; and Interest Rate Risk - Borrowings and other liabilities. The MRA's exposure to market risk for changes in interest rates relates primarily to its cash and cash equivalent holdings and its long-term debt 2019 2018 obligations. The MRA's borrowings are all obtained through the Western Financial Assets $000 $000 Australian Treasury Corporation (WATC) and are either at fixed rates with Cash and Cash Equivalents 8,776 14,886 varying maturities or at variable rates. Restricted Cash 35,761 30,123 The risk is managed by WATC through portfolio diversification and variation Receivables (a) 68,951 63,622 in maturity dates. Other than as detailed in the interest rate sensitivity Total Financial Assets 113,488 108,631 analysis in the table below. The MRA has limited exposure to interest rate risk because it has no borrowings other than WATC borrowings. The following table represents a summary of the interest rate sensitivity of the MRA's financial assets and liabilities at the end of the reporting period on the surplus for the period and equity for a 100 basis point change in interest rates. It is assumed that the change in interest rates is held constant throughout the reporting period.
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Interest Rate Exposure -100 basis points +100 basis points Carrying Amount Surplus Equity Surplus Equity 30 June 2019 $000 $000 $000 $000 $000 Financial Assets Cash and Cash Equivalents 8,776 (88) (88) 88 88 Restricted Cash 35,761 (358) (358) 358 358 Receivables (a) 68,951 (690) (690) 690 690 Financial Liabilities Payables (a) 6,200 62 62 (62) (62) Borrowings 247,957 2,480 2,480 (2,480) (2,480) Other Liabilities 728 7 7 (7) (7) Total Increase / (Decrease) 1,413 1,413 (1,413) (1,413)
30 June 2018 Financial Assets Cash and Cash Equivalents 14,886 (149) (149) 149 149 Restricted Cash 30,123 (301) (301) 301 301 Receivables (a) 63,622 (636) (636) 636 636 Financial Liabilities Payables (a) 14,271 143 143 (143) (143) Borrowings 412,892 4,129 4,129 (4,129) (4,129) Other Liabilities 696 7 7 (7) (7) Total Increase / (Decrease) 3,193 3,193 (3,193) (3,193)
(a) The Financial Assets and Liabilities measured at amortised cost exclude GST payable to the ATO (statutory payable).
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Credit Risk Credit risk arises when there is the possibility of the MRA's receivables defaulting on their contractual obligations resulting in financial loss to the MRA. The maximum exposure to credit risk at end of the reporting period in relation to each class of recognised financial assets is the gross carrying amount of those assets inclusive of any provisions for impairment, as shown in the table below and Note E.1 ‘Receivables’. The MRA trades only with recognised, creditworthy third parties. The MRA has policies in place to ensure that sales of products and services are made to customers with an appropriate credit history. In addition, receivable balances are monitored on an ongoing basis with the result that the MRA's exposure to bad debts is minimal. Debt will be written-off against the allowance account when it is improbable or uneconomical to recover the debt. At the end of the reporting period, there were no significant concentrations of credit risk.
Credit Risk Exposure Days past due Trade Receivables Total Current < 30 days 31-60 days 61-90 days > 91 days 30 June 2019 Expected credit loss rate 0.00% 0.00% 0.00% 0.00% 2.41% Estimated total gross carrying amount at default 2,194 606 9 - - 1,579 Expected credit losses (38) - - - - (38)
1 July 2018 (Remeasurement) Expected credit loss rate 0.00% 0.00% 0.00% 0.00% 2.48% Estimated total gross carrying amount at default 2,427 479 - 32 60 1,856 Expected credit losses (46) - - - - (46)
Other Debtors 30 June 2019 Expected credit loss rate 0.00% 0.00% 62.50% 57.14% 91.67% Estimated total gross carrying amount at default 66,757 42,051 24,609 40 21 36 Expected credit losses (124) - (54) (25) (12) (33)
1 July 2018 (Remeasurement) Expected credit loss rate 0.00% 0.00% 14.29% 0.00% 44.44% Estimated total gross carrying amount at default 61,195 61,118 42 7 1 27 Expected credit losses (15) - (2) (1) - (12)
Refer to A.2 for further detail on Expected Credit Loss.
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Liquidity Risk and Interest Rate Exposure The following table details the MRA's interest rate exposure and the contractual maturity analysis of financial assets and financial liabilities. The maturity analysis section includes interest and principal cash flows. The interest rate exposure section analyses only the carrying amounts of each item. Weighted Fixed Variable Non- Total More av. effective Carrying Interest Interest Interest Nominal Up to 3 3-12 1-2 2-5 than interest Amount Rate Rate Bearing Account months months years years 5 years 30 June 2019 rate $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 Financial Assets: Cash and Cash Equivalents 8,776 - - 8,776 8,776 - - - - - Restricted Cash and Cash Equivalents 2.22% 35,761 - 34,616 1,145 35,761 - - - - - Receivables (i) 68,951 - - 68,951 68,951 2,960 24,393 34,032 5,525 2,041 113,488 - 34,616 78,872 113,488 2,960 24,393 34,032 5,525 2,041 Financial Liabilities: Payables 6,200 - - 6 ,200 6,200 6,200 - - - - Borrowings (b) 2.83% 247,957 140,339 107,618 - 247,957 1,007 4,022 39,497 125,399 78,032 Other Liabilities 728 - - 728 728 - - - - - 254,885 140,339 107,618 6,928 254,885 7,207 4,022 39,497 125,399 78,032 30 June 2018 Financial Assets: Cash and Cash Equivalents 14,886 14,320 - 5 66 14,886 - - - - - Restricted Cash and Cash Equivalents 1.45% 30,123 - 30,123 - 30,123 - - - - - Receivables (i) 63,622 - - 63,622 63,622 2,508 - 22,819 32,390 5,905 108,631 14,320 30,123 64,188 108,630 2,508 - 22,819 32,390 5,905 Financial Liabilities: Payables 14,271 - - 14,271 14,271 14,271 - - - - Borrowings (b) 2.92% 412,892 217,362 182,885 12,645 412,892 28,314 47,006 121,795 173,392 42,385 Other Liabilities 696 - - 696 696 - - - - - 427,859 217,362 182,885 27,612 427,859 42,585 47,006 121,795 173,392 42,385 The amount of receivables excludes the GST recoverable from the ATO (statutory receivable).
FINANCIALS — MRA ANNUAL REPORT 2018/19 — 113 C. CAPITAL MANAGEMENT continued
C.2 CASH AND CASH EQUIVALENTS Fair Value Management consider that the carrying amounts of cash and cash Cash and cash equivalents consists of the MRA's operating account, equivalents represent their fair value. which is a non-interest bearing account. 2019 2018 Restricted cash and cash equivalents are where the use of such assets is Current $000 $000 restricted, wholly or partially by regulations or other externally imposed requirements. Public Art Fund Holds the balance of the Public Art Fund to be used by the MRA for the Restricted cash and cash equivalents predominantly represent funds held provision of public art in accordance with the Development Policies for for Development Contribution Plans (DCP) held in an interest bearing the MRA Redevelopment Areas. public bank account. Balance at the start of the period 640 628 2019 2018 Receipts 21 257 Current $000 $000 Payments (44) (245) Cash and Cash Equivalents 8,776 13,718 Balance at the end of the period 617 640 Restricted Cash and Cash Equivalents - Public Art Fund 617 640 Parking Cash-in-Lieu Account - Parking Cash-in-Lieu Account 528 528 Holds the balance of payments received from developers in lieu of car Total Current Cash and Equivalents 9,921 14,886 parking in accordance with the MRA Redevelopment Schemes. Balance at the start of the period 528 831 Receipts - 88 Non-Current Payments - (391) Restricted Cash and Cash Equivalents Balance at the end of the period 528 528 - Wungong Urban Water DCP Account 34,357 29,800 - Champion Drive DCP Account 259 270 - Scarborough DCP Account - 53 Total Non-Current Cash and Equivalents 34,616 30,123
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Significant Terms and Conditions 2019 2018 Interest is earned on restricted cash relevant to the Development $000 $000 Contribution Plans. The interest earned was at prevailing rates. The Scarborough DCP Account weighted average interest rate at 30 June 2019 was 2.22% (2018: 1.45%) Holds the net of developer contribution receipts collected from landowners within the Scarborough Development Contribution Area, as 2019 2018 set out in Chapter 7 of the Scarborough Redevelopment Scheme, less development costs. Non-Current $000 $000 Wungong Urban Water DCP Account Balance at the start of the period 53 52 Holds the net of developer contribution receipts collected from Receipts 20 1 landowners within the Wungong Urban Water Development Contribution Payments (73) 0 Area, as set out in Appendix 1 of the Armadale Redevelopment Balance at the end of the period - 53 Scheme 2, less development costs. Balance at the start of the period 29,800 26,610 Receipts 5,205 4,162 Payments (648) (972) Balance at the end of the period 34,357 29,800
Champion Drive DCP Account Holds the net of developer contribution receipts collected from landowners within the Champion Drive Precinct Development Contribution Area, as set out in Appendix 1 of the Armadale Redevelopment Scheme 2, less development costs. Balance at the start of the period 270 344 Receipts 3 4 Payments (14) (78) Balance at the end of the period 259 270
FINANCIALS — MRA ANNUAL REPORT 2018/19 — 115 C. CAPITAL MANAGEMENT continued
C.3 INTEREST BEARING LIABILITIES C.4 LEASE PAYABLES Recognition and Measurement Recognition and Measurement All borrowings are initially recognised at the fair value of the Leases are classified as either operating or finance leases based on the consideration received less directly attributable transaction costs. economic substance of the agreement to reflect the risks and benefits After initial recognition, interest-bearing borrowings are subsequently incidental to ownership. The MRA holds no finance leases. measured at amortised cost. Operating Leases (as Lessee) Finance costs reflected in the Statement of Comprehensive Income Leases where the lessor retains substantially all the risks and benefits comprise interest payable on borrowings. Borrowing costs are of ownership of the asset are classified as operating leases. Operating recognised as expenses in the period in which they are incurred except lease payments are recognised by the MRA (as lessee) as an expense in where they are directly attributable to the acquisition, construction or the Statement of Comprehensive Income on a straight-line basis over production of a qualifying asset in which case they are capitalised as part the lease term as this represents the pattern of benefits derived from the of the cost of the asset, in accordance with AASB 123 Borrowing Costs. leased assets. 2019 2018 The MRA holds operating leases for office premises and motor vehicles. Current $000 $000 The MRA received lease incentives consisting of a rent free period and Treasurer's Advance - 12,645 a discounted rent period on execution of the Level 3 GPO Lease. In WA Treasury Corporation 58,300 100,224 accordance with the MRA's accounting policy, a liability was recorded Total Current Borrowings 58,300 112,869 to reflect these incentives to demonstrate the potential ramifications if the MRA terminated the lease early. The MRA also received a cash contribution upon execution of the lease which is being amortised over Non-Current the life of the lease. WA Treasury Corporation 189,657 290,444 2019 2018 Western Australian Land Authority - 9,579 Non-Current $000 $000 Total Non-Current Borrowings 189,657 300,023 Payables - Amortised Cash Contribution 2,742 2,975 Payables - Lease Incentive Liability 2,218 1,293 Total Non-Current Payables 4,960 4,268
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C.5 FINANCE COSTS C.6 EQUITY
Recognition and Measurement Repayments to the Consolidated Fund Borrowing costs are recognised as an expense in the reporting period In accordance with the Metropolitan Redevelopment Authority Act 2011, the in which they are incurred, except to the extent that they are capitalised Treasurer may direct the payment of any surplus, in part or whole, at the end when incurred for the purposes of development of sale lots. Refer to of the financial year, to the Consolidated Fund. The amount of the surplus Note E.2 Inventories. During the current financial year, Finance Costs payment is determined by the Treasurer in conjunction with the MRA. reflects expenses incurred to the WATC and the Western Australian Land Authority. 2019 2018 Contributed Equity $000 $000 2019 2018 Balance at start of period 386,787 407,454 Finance Costs $000 $000 Contributions by State Government 166,868 - Interest of WATC Borrowings 5,536 7,934 Distributions to Owners - (20,667) Interest on Western Australian Land Authority Loan 79 306 Balance at end of period 553,655 386,787 Unwind of Contractuals 40 - Total Finance Costs 5,655 8,240 Asset Revaluation Reserve Balance at start of period 70 81 Net revaluation (decrements) / increments – Artworks - (11) Balance at end of period 70 70
Accumulated Surplus / (Deficit) Balance at start of period (238,665) (178,783) Initial application of AASB 9 (4) - Surplus / (Deficit) for the period (39,757) (60,028) Net revaluation of Defined Benefit Scheme (270) 146 Balance at end of period (278,696) (238,665)
Total Equity at End of Period 275,029 148,192
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IN THIS SECTION When assessing expected future payments, consideration is given to expected future wage and salary levels, including non-salary components This section addresses liabilities due to employees including, where such as employer superannuation contributions, as well as the experience applicable, the accounting policies applied and the key estimates and of employee departures and periods of service. The expected future judgements made. payments are discounted using market yields at the end of the reporting period, on national government bonds with terms to maturity that match D.1 EMPLOYEE RELATED PROVISIONS as closely as possible, the estimated future cash outflows. Recognition and Measurement The provision for annual leave is classified as a current liability, as the MRA A provision is recognised in the Statement of Financial Position when does not have an unconditional right to defer settlement of the liability for the MRA has a present legal or constructive obligation as a result of a at least 12 months after the end of the reporting period. past event, and it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made of Long Service Leave the amount of the obligation. Long service leave is not expected to be settled wholly within 12 months after the end of the reporting period and is therefore recognised and Personal Leave measured at the present value of amounts expected to be paid when the Liabilities for personal leave are recognised when it is probable that liabilities are settled using the remuneration rate expected to apply at the personal leave paid in the future will be greater than the entitlement time of settlement. that will accrue in the future. Past history indicates that, on average, personal leave taken each reporting period is less than the entitlement When assessing expected future payments consideration is given to accrued. This is expected to continue in future periods. Accordingly, expected future wage and salary levels including non-salary components it is unlikely that existing accumulated entitlements will be used by such as employer superannuation contributions, as well as the experience employees and no liability for unused personal leave entitlements is of employee departures and periods of service. The expected future recognised. As personal leave is nonvesting, an expense is recognised payments are discounted using market yields at the end of the reporting in the Statement of Comprehensive Income for this leave as it is taken. period on national government bonds with terms to maturity that match, as closely as possible, the estimated future cash outflows. Annual Leave Unconditional long service leave provisions are classified as current Annual leave is not expected to be settled wholly within 12 months after liabilities as the MRA does not have an unconditional right to defer the end of the reporting period, and is therefore considered to be ‘other settlement of the liability for at least 12 months after the end of the reporting long term employee benefits’. The annual leave liability is recognised and period. Pre-conditional and conditional long service leave provisions are measured at the present value of amounts expected to be paid when the classified as non-current liabilities because the MRA has an unconditional liabilities are settled, using the remuneration rate expected to apply at the right to defer the settlement of the liability until the employee has completed time of settlement. the requisite years of service or satisfies preservation age conditions.
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Valuation Assessments indicate that actual settlement of the leave liabilities is The value of leave provisions are assessed annually by an independent expected to occur as follows: actuary. 2019 2018 Key Estimates and Judgements Annual Leave $000 $000 This assessment requires a determination of various assumptions as Within 12 months of the end of the reporting 793 947 to future events and circumstances, in particular, wage increase rates, period inflation rates and employee retention rates. More than 12 months after the end of the 422 527 2019 2018 reporting period Current $000 $000 1,215 1,474 Annual Leave 1,049 1,273 Long Service Leave Long Service Leave 1,071 949 Within 12 months of the end of the 493 510 Superannuation 194 202 reporting period Employee on-costs 138 145 More than 12 months after the end of the 1,416 1,373 Total Current Employee Benefit Provisions 2,452 2,569 reporting period 1,909 1,883 Non-Current The reconciliation for the movement of the employee on-costs provision Long Service Leave 575 677 has been provided below. Superannuation 59 67 Defined Benefit Superannuation Plans 2,090 1,842 2019 2018 Current $000 $000 Employee on-costs 38 44 Carrying amount at start of period 145 162 Total Non-Current Employee Benefit Provisions 2,762 2,630 Amounts used (7) (17) Total Employee Related Provisions 5,214 5,199 Carrying amount at end of period 138 145
Non-Current Carrying amount at start of period 44 51 Amounts used (6) (7) Carrying amount at end of period 38 44
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D.2 DEFINED BENEFIT PLANS Defined Benefit Plan The MRA's net obligation in respect of defined benefit plans is calculated The Gold State Superannuation Scheme (GSS), a defined benefit lump separately by estimating the amount of future benefit that employees sum scheme, and the Superannuation and Family Benefits Act 1938 have earned in return for their service in the current and prior periods; (Pension Scheme), a defined benefit pension scheme, are now closed to that benefit is discounted to determine its present value, and the fair new members. The MRA is liable for superannuation benefits for past value of any plan assets is deducted. These benefits are unfunded. years’ service of members of the Superannuation and Family Benefits Act 1938 who elected to transfer to the GSS Scheme. The MRA also accrues for The discount rate used is the market yield rate at the Statement of Financial Position date on national Government bonds that have maturity superannuation benefits to the pension scheme for those members who dates approximating to the terms of the entity’s obligations. The calculation elected not to transfer from that scheme. is performed by a qualified actuary using the actuarial cost method. The MRA's total superannuation liability has been actuarially assessed A net defined benefit asset or liability is shown on the Statement of as at 30 June 2019. Financial Position equal to: Employees who were not members of either the Pension or the - The present value of the accrued defined benefit obligation; less GSS Schemes became non contributory members of the West State - The fair value of the Scheme assets; plus Superannuation Scheme (WSS), an accumulation fund, until 15 April 2007. - Any adjustment for the limitation on the net asset. From 16 April 2007, employees who were not members of the Pension, The defined benefit cost to be included in the Statement of GSS or WSS Schemes became non-contributory members of the GESB Comprehensive Income is made up of the following elements: Superannuation Scheme (GESB Super), a taxed accumulation fund. On 30 - Current service cost paid to the Government of Western Australia for the March 2012, employees were granted with the opportunity to have their pension scheme expensed under the Superannuation classification. contributions paid to a complying superannuation fund of their choice. Those members not electing to nominate their own fund remain either in Remeasurements of the net defined benefit liability/(asset) are recognised the WSS Schemes or the GESB Superannuation Scheme. The MRA makes in Other Comprehensive Income. concurrent contributions to the Government Employee Superannuation Board (GESB) or other fund providers on behalf of employees in Key Estimates and Judgements compliance with the Commonwealth Government’s Superannuation This assessment requires a determination of various actuarial assumptions Guarantee (Administration) Act 1992. These contributions extinguish the as to future events and circumstances, in particular, the pensioner MRA's liability for superannuation charges. mortality rate, discount rate and pension and salary increase rates.
Nature of the Benefit provided by the Schemes Pension Scheme The employer-financed benefit is a pension benefit payable on retirement, death or invalidity, or a lump sum on resignation.
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Description of Regulatory Framework - Inflation risk - The risk that inflation is higher than anticipated, increasing The Pension Scheme operates under the State Superannuation Act 2000 pension payments, and the associated employer contributions. (Western Australia) and the State Superannuation Regulations 2001 (Western Australia). Description of Significant Events Although the Scheme is not formally subject to the Superannuation There were no amendments, curtailments or settlements during the year Industry (Supervision) (SIS) legislation, the WA Government has to the Schemes. undertaken (in a Heads of Government Agreement) to operate the Scheme in accordance with the spirit of the SIS legislation. Reconciliation of the Net Defined 2019 2018 Benefit Liability $000 $000 As exempt public sector superannuation Schemes (as defined in the SIS legislation), the Schemes are not subject to any minimum Carrying amount at start of period 1,842 2,012 funding requirements. Within Statement of Comprehensive Income As a constitutionally protected superannuation fund (as defined in the Income Interest costs (unwinding of discount) 48 45 Tax Assessment legislation), the Schemes are not required to pay tax. Within Other Comprehensive Income Net actuarial losses / (gains) recognised 270 (146) Description of Other Entities’ Responsibilities for the Governance of the Scheme Benefits paid (70) (69) The Government Employees Superannuation Board (GESB) is the Carrying amount at the end of the period 2,090 1,842 Pension Trustee and is responsible for the governance of the Scheme. As Trustee, GESB has a legal obligation to act solely in the best interests of Scheme beneficiaries. GESB has the following roles: - Administration of the Scheme and payment to the beneficiaries when required in accordance with the Scheme rules; - Compliance with the Heads of Government Agreement (referred to above). Description of Risks There are a number of risks to which the Pension Scheme exposes the MRA. The most significant are: - Legislative risk - The risk that legislative changes could be made which increase the cost of providing the defined benefits. - Pensioner mortality risk - The risk that pensioner mortality will be lighter than expected, resulting in pensions being paid for a longer period.
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Reconciliation of the Fair Value of 2019 2018 Scheme Assets $000 $000 Carrying amount at start of period - - Employer contributions 70 69 Benefits paid (70) (69) Carrying amount at the end of the period - -
Fair value of Scheme Assets There are no assets in the Pension Scheme to support the State Share of Benefit. Hence there is/are: - No fair value of Scheme assets; - No asset allocation of Scheme assets; - No financial instruments issued by the employer; - No assets used by the employer; and - No asset-liability matching strategies.
Funding Arrangements The employer contributes, as required, to meet the benefits paid. 2020 Expected Contributions $000 Pension Scheme 71
Significant Actuarial Assumptions at the Reporting Date Discount rate 1.40% Future salary increases of 1.5% for the first two years and then 4.2% pa thereafter. Pension increase rate 2.50%
The MRA has no liability or expense under AASB 119 arising from the Gold State Superannuation Scheme (GSS).
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E. OTHER ASSETS AND LIABILITIES
IN THIS SECTION Recognition and Measurement This section addresses trade receivables, trade and other payables, and Trade Receivables other assets and liabilities including, where applicable, the accounting Trade Receivables and Other Receivables are initially recognised at fair policies applied and the key estimates and judgements made. value. Debtors are carried at the original amounts recognised due less an allowance for any uncollectible amounts. Trade debtors are generally E.1 RECEIVABLES settled within 30 days. 2019 2018 The value of the provision for impairment loss is assessed using an Current $000 $000 analysis of historical data to determine the level of risk and subsequent Trade Receivables 2,194 2,427 recovery of debts based on the age of amounts outstanding. Bad debts Allowance for impairment of Trade Receivables (38) (46) are written off when formally recognised as being irrecoverable. GST Receivable 496 766 The MRA's exposure to credit risks related to Trade Receivables and Other 2,652 3,147 Receivables are disclosed in Note C.1. Other Receivables 26,177 1,102 Other Receivables Allowance for impairment of Other Receivables (124) (11) Other Receivables predominantly relate to the discounted present value Total Current Receivables 28,705 4,238 of land sales where timing of staged payments is uncertain.
Non-Current Key Estimates and Judgements Other Receivables 40,580 60,093 Various judgements are required in determining the MRA's impairment Total Non-Current Receivables 40,580 60,093 of trade and other receivables including an assessment of the risk of default and credit loss based on historical evidence, current economic Total Receivables 69,285 64,331 environment and security held. The decrease in the value of non-current receivables represents the Fair Value movement of the recognition of future receipts in respect of sales within Management consider the carrying amounts of trade and other the Central Perth Redevelopment Area to current receivables. receivables represent their fair value.
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Movement in the Allowance for 2019 2018 E.2 INVENTORIES Impairment of Receivables $000 $000 2019 2018 Balance at start of period (57) (18) Developed Land $000 $000 Remeasurement under AASB 9 (4) - Current 74,841 18,151 Restated balance at start of period (61) (18) Non-Current 75,674 168,293 Doubtful Debts expense recognised - (66) Total Inventories 150,515 186,444 Expected credit losses expense (151) - 2019 2018 Amounts written off during the period 50 27 Reconciliation of Inventory Movements $000 $000 Balance at end of period (162) (57) Current The maximum exposure to credit risk at the end of the reporting period Balance at start of period 18,151 61,706 of Receivables is the carrying amount of the asset inclusive of any Cost of Sales (13,311) (46,217) impairment as shown in Note C.1 Financial Instruments. Transferred from Non-Current Inventory 71,470 3,538 Transferred to Non-Current Inventory (655) - Transfers from Investment Property 1,570 - Write Down Inventory to Net Realisable Value (2,384) (260) Write Back of Remediation Provision - (616) Total Current Inventories 74,841 18,151
Non-Current Balance at start of period 168,293 170,141 Cost of Sales - (383) Transferred from Non-Current Inventory (71,470) (3,538) Transferred to Non-Current Inventory 655 - Transferred to Property, Plant and Equipment (187) - Additional Works 25,167 12,557 Write Down Inventory to Net Realisable Value (46,784) (10,484) Total Non-Current Inventories 75,674 168,293
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Recognition and Measurement Recovery of Inventory All land and buildings and capital works held for development and The NRV of inventory is calculated using the estimated selling price in the subsequent sale are regarded as inventory and are classified as such in the ordinary course of business less the estimated costs of completion and Statement of Financial Position. Development expenditure is capitalised the estimated costs necessary to make the sale. with reference to the stage of completion of the project. E.3 OTHER CURRENT ASSETS The MRA recognises as inventory all of the costs which have been incurred in bringing developed land to a condition ready for sale. Such 2019 2018 costs are typically accumulated on a project by project basis. Current $000 $000 The MRA allocates development costs to individual lots within the project on a Prepayments 826 2,261 rational and consistent basis given the specific circumstances of the project. Total Current Other Assets 826 2,261 Land held for development and subsequent sale is classified as a current asset when development is completed and sales are expected Recognition and Measurement to result in realisation of settled sales within 12 months based on Other non-financial assets include prepayments which represent payments management’s sales forecasts. Inventories are valued at the lower of cost in advance of receipt of goods or services or that part of expenditure made and net realisable value (NRV). NRV is the estimated selling price in the in one accounting period covering a term extending beyond that period. ordinary course of business, less estimated costs of completion and, if appropriate, the estimated costs of making the sale. E.4 TRADE AND OTHER PAYABLES Cost includes the costs of acquisition development, holding and borrowing costs incurred during development. When development is 2019 2018 completed, holding and borrowing charges are expensed as incurred. Current $000 $000 Holding and borrowing costs are also expensed if active development is Trade Payables 1,837 4,142 interrupted for extended periods. Accrued Expenses 3,354 6,705 Accrued Salaries 43 51 Key Estimates and Judgements The key assumptions involve management judgement and take into Western Australian Land Authority Loan Inter- account reliable information on hand at the time specifically in respect est - 2,340 of costs to complete, anticipated sales values and sales forecasts. Where Other Payables 1,561 7,026 possible external verification is sought for those variables with a material Total Current Payables 6,795 20,264 impact on the outcomes.
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Recognition and Measurement E.5 OTHER LIABILITIES Trade Payables Other liabilities is represented as follows: Payables are recognised at the amount payable when the MRA becomes 2019 2018 obliged to make future payments as a result of a purchase of assets or Current Income in Advance $000 $000 services. The carrying amount is equivalent to fair value, as settlement is generally within 30 days. Rental Income 91 60 Other Income in Advance 123 425 Accrued Salaries Rechargeable Works 532 - Accrued salaries represent the amount due to staff but unpaid at the end Total Current Income in Advance 746 485 of the financial period. Accrued salaries are settled within a fortnight of the financial period end. The MRA considers the carrying amount of Non-Current accrued salaries to be equivalent to its fair value. Non Refundable Development Bond 728 696 Total Non-Current Other Liabilities 728 696 Fair Value Management consider the carrying amounts of trade and other payables represent their fair value.
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F. OTHER ITEMS
IN THIS SECTION Significant transactions with government related entities include: This section addresses information on items which require disclosure - recurrent appropriations (refer to Grants and Contributions from Other to comply with Australian Accounting Standards and the Metropolitan Government Agencies within Income from State Government at Note A.1); Redevelopment Act 2011. - capital appropriations (refer to Contributions by State Government F.1 RELATED PARTIES within Note C.6 Equity); Related Party Transactions - funds received from the Department of Planning, Lands and Heritage The MRA is a wholly owned and controlled entity of the State of Western from the Land Divestment Fund of $3,037,099 (reported in the Australia. In conducting its activities, the MRA is required to pay various Statement of Comprehensive Income under Rechargeable Works); taxes and levies based on the standard terms and conditions that apply to all tax and levy payers to the State and entities related to State. - salary recoups from Other General Government Agencies of $278,842 (included within Wages and Salaries at Note A.2); Related parties of the MRA include: - repayment of Treasurer's Advance of $12,465,000 (Note C.3); - all Ministers and their close family members, and their controlled or jointly controlled entities; - superannuation payments to GESB of $599,817 (refer to Superannuation - Defined Contribution Plans at Note A.2); - all senior officers and their close family members, and their controlled or jointly controlled entities; and - transfer duty paid to the Department of Finance, Office of State Revenue of $7,349,660 for the Perth City Link project (Note E.2); - officers with significant influence over financial decisions of significant value or frequency that impact financial reporting and their close family - payments to ScreenWest for digital content and expenses in relation to members, and their controlled or jointly controlled entities. the Yagan Square Digital Tower of $494,961 (reported in the Statement of Comprehensive Income under Sales and Marketing); and Related parties of the MRA include: - repayment of loan with the Western Australian Land Authority of - other departments and public sector entities, including related bodies $11,124,097 (Note C.3 and E.4). included in the whole of government consolidated financial statements;
- associates and joint ventures, that are included in the whole of government consolidated financial statements; and
- the Government Employees Superannuation Board (GESB).
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Material transactions with related parties Compensation of Key Management Personnel of the MRA During 2017-18 transactions relating to services that would ordinarily The MRA has determined that key management personnel include have been performed by an employee of the MRA were made on terms Ministers, Board Directors, and, senior officers of the MRA. However, the equivalent to those that prevail at arm's length between the MRA and MRA is not obligated to compensate Ministers and therefore disclosures an entity controlled by an individual identified as a member of key in relation to Ministers’ compensation may be found in the Annual Report management personnel. on State Finances. MRA was provided with project direction services to the value of $184,489 Total compensation for key management personnel, comprising in relation to MRA redevelopment project areas within Central Perth, members and senior officers, of the MRA for the reporting period are Subiaco, Armadale and Wungong until the 31st December 2017. This presented within the following bands: expense is recognised within the Statement of Comprehensive Income Compensation of Members of the Authority 2019 2018 under Supplies and Services. Compensation Band ($) During 2017-18 the MRA transacted with an entity that is controlled by an $0 - $10,000 19 20 entity of which a key management personnel holds a senior position. The transactions related to Development Contribution Plan income to $10,001 - $20,000 - 6 the value of $1,978,048, plus an $849 re-imbursement of expenses for $20,001 - $30,000 - 5 the Wungong Development Area. $1,213,845 was received as offset Land $30,001 - $40,000 5 1 Works provided $40,001 - $50,000 - - by the entity. $50,001 - $60,000 1 - These expenses and contributions are recognised within the Statement 25 32 of Comprehensive Income under Developer Contribution Income and Developer Contribution Expense. 2019 2018 There were no material transactions (including general citizen type Compensation of Members of the Authority $000 $000 transactions) between the MRA and Ministers/Senior Officers or their Short term employee benefits 262 288 close family members or their controlled (or jointly controlled) entities Total Compensation of Members 262 288 during 2018-19.
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Under the Metropolitan Redevelopment Act 2011, the Authority's 2019 2018 members comprises a Board of Management (Board) consisting of seven Compensation of Senior Officers $000 $000 members, together with a further five Land Redevelopment Committees (LRC) consisting of five members each, plus two alternate members Short term employee benefits 1,136 1,120 when required. All members are appointed by the Minister. Post employment benefits - - Other long term benefits 100 33 Compensation of Senior Officers 2019 2018 Termination benefits 128 216 Compensation Band ($) Total Compensation of Senior Officers 1,364 1,369 $30,001 - $40,000 - 1 $110,001 - $120,000 - 1 Compensation of Senior Officers $160,001 - $170,000 - 1 Under the Financial Management Act 2006 s78, senior officers are $180,001 - $190,000 1 - deemed to be any officer of the MRA who has responsibility and $200,001 - $210,000 - 1 accountability for the functioning of a section or division which is $210,001 - $220,000 1 1 significant in the operation of the MRA. The MRA had no senior officers $220,001 - $230,000 3 - who were members of the Pension Scheme as at 30 June 2019. $260,001 - $270,000 - 1 $290,001 - $300,000 1 - $360,001 - $370,000 - 1 6 7
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F.2 REMUNERATION OF AUDITORS 2019 2018 This section addresses information on items which require disclosure $000 $000 to comply with Australian Accounting Standards and the Metropolitan Parking Contributions Redevelopment Act 2011. Carrying amount at start of period 528 105 2019 2018 Transfer from Non-Current - 726 Remuneration of Auditors $000 $000 Amounts received during the period - 88 Auditing the accounts, financial statements and 65 69 Interest earned on contributions - (137) key performance indicators Amounts used during the period - (254) Certification of Scarborough Project Development - 6 Carrying amount at end of period 528 528
Impairment F.3 PROVISIONS Carrying amount at start of period - 4,460 Reconciliations Amounts used during the period - (4,460) Reconciliations for the carrying amounts of each class of provision, except for employee benefits, are set out below: Carrying amount at end of period - - 2019 2018 Contaminated Sites Current Provisions $000 $000 Carrying amount at start of period - 10,125 Public Art Contributions Unused amounts reversed - (10,125) Carrying amount at start of period 640 628 Carrying amount at end of period - - Amounts received during the period 21 257 Amounts used during the period (44) (245) Future Monitoring Carrying amount at end of period 617 640 Carrying amount at start of period - 28 Amounts used during the period - (17) Unused amounts reversed - (11) Carrying amount at end of period - -
Total Current Provisions 1,145 1,168
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2019 2018 applied by the MRA for the provision of public art within or immediately adjacent to the same project area as the contributing site. Non-Current Provisions $000 $000 Contractual Provisions Parking Provisions Carrying amount at start of period 1,654 1,800 A provision for parking contributions is recognised when a developer Discounting of provision - (146) becomes obligated to pay a parking contribution to the MRA as a result of not fulfilling minimum parking requirements in their particular development Unwind of discount 40 - plans. These contributions are held by the MRA to be applied for the Carrying amount at end of period 1,694 1,654 provision of public parking, cycling, pedestrian facilities or public transport within the redevelopment area. Parking Contributions Carrying amount at start of period - 726 Contractual Provisions A non-current provision has been recognised for future contractual Transfer to Current - (726) payments in respect of infrastructure installation within the Central Perth Carrying amount at end of period - - Redevelopment Area.
Future Monitoring Contaminated Sites Carrying amount at start of period - 605 Under the Contaminated Sites Act 2003, the MRA is required to report Amounts used during the period - (605) known and suspected contaminated sites to the Department of Water Carrying amount at end of period - - and Environmental Regulation (DWER). In accordance with the Act, DWER classifies these sites on the basis of the risk to human health, Total Non-Current Provisions 1,694 1,654 the environment and environmental values. Where sites are classified as contaminated – remediation required or possibly contaminated – investigation required, the MRA may have a liability in respect of Recognition and Measurement investigation or remediation expenses. Provisions are liabilities of uncertain timing or amount and are recognised where there is a present legal or constructive obligation as a result of Contaminated Sites – Key Estimates and Assumptions a past event and when the outflow of resources embodying economic In determining the MRA's liability for remediating contaminated benefits is probable and a reliable estimate can be made of the amount of sites, assumptions regarding the level of remediation work are made. the obligation. Provisions are reviewed at the end of each reporting period. Assumptions include soil volume based on methodical sample testing, method of soil remediation engineering estimates and the provision Public Art Contributions of professional consultants. Once the sites are fully assessed using A provision for public art contributions is recognised when a third party environmental testing the level of remediation work required may change becomes obligated under the planning conditions of the development area to provide a cash-in-lieu contribution. These funds are held and requiring the liability to be adjusted.
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F.4 LEASE COMMITMENTS F.5 CAPITAL COMMITMENTS 2019 2018 2019 2018 Operating Leases Payable $000 $000 Capital Commitments $000 $000 Future minimum rental amounts payable in relation to operating leases Commitments for the acquisition of property, plant and equipment contracted payable at the end of the reporting period but not recognised as liabilities for at the end of the reporting period but not recognised as liabilities: are as follows: Within 1 year 6,733 4,440 Within 1 year 340 337 Later than 1 year and not later than 5 years 841 8,966 Later than 1 year and not later than 5 years 4,978 3,969 7,574 13,406 Later than 5 years 10,068 11,417 The totals presented for Capital Commitments are GST inclusive. Balance at the end of the period 15,386 15,723
The totals presented for Operating Lease Commitments are GST inclusive.
Judgements Made by Management in Applying Accounting Policies – Operating Lease Commitments The MRA has entered into a lease for buildings for office accommodation and with State Fleet for the provision of vehicles. As the MRA retains substantially all the risks and rewards incidental to ownership these leases have been classified as operating leases. 2019 2018 Other Expenditure Commitments $000 $000 Other expenditure commitments are payable as follows: Within 1 year 12,393 11,041 Later than 1 year and not later than 5 years 11,197 6,491 23,590 17,532
The totals presented for Other Expenditure Commitments are GST inclusive.
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F.6 CONTINGENT ASSETS AND LIABILITIES F.7 GOODS AND SERVICES TAX There are no contingent assets at reporting date. Revenues, expenses and assets are recognised net of the amount of In addition to the liabilities included in the financial statements, there are goods and services tax (GST), except: the following contingent liabilities: (i) where the amount of GST incurred is not recoverable from the taxation authority, it is recognised as part of the cost of acquisition of Central Perth Redevelopment Area – Contamination Management an asset or as part of an item of expense; or The MRA is obligated to manage various areas adjacent to the Swan River by direction from the Minister for the Environment. A current containment (ii) for receivables and payables which are recognised inclusive of GST. management strategy is in place. In February 2014, under the Contaminated The net amount of GST recoverable from, or payable to, the taxation Sites Act 2003 the Department of Water and Environmental Regulation authority is included as part of receivables or payables. The GST (DWER) classified certain areas as ‘Remediated for Restricted Use’. component of cash flows arising from investing and financing activities It is not possible to reliably estimate the potential financial effect of which is recoverable from, or payable to, the taxation authority is any claims should a contamination event occur in the future. However, classified as operating cash flows. the adopted maintenance plan continues to effectively address the requirements of the DWER classification. F8 EVENTS OCCURRING AFTER THE END OF THE REPORTING Central Perth Redevelopment Area – Claims in Progress PERIOD The MRA is in dispute in relation to construction works undertaken on Western Australia’s land development agencies, the MRA and the Western its behalf within the Central Perth Redevelopment Area. In accordance Australian Land Authority (LandCorp), will be merged progressively over with the Contract’s dispute resolution process the parties commenced a number of years as part of the State Government’s ongoing bid to drive mediation which is continuing. The MRA’s objective is for an outcome efficiencies and improve outcomes for land development and housing which will safeguard the MRA from any ongoing financial risk and affordability, with the new land development agency also to include the liability associated with outstanding defects and incomplete works. Industrial Lands Authority arm. In addition, potential excessive settlement risk within a separate Central Perth Redevelopment Area is currently under investigation. The new agency will aim to strengthen communities, create places for business and industry whilst enhancing the built and natural The parties are progressing this matter in accordance with the contract environment. provisions. An administrative merger will continue throughout 2019/20, followed by Midland Redevelopment Area – Contamination Management any necessary legislative changes. These changes may result in financial A small parcel of land within the Midland Redevelopment Area, consists impacts for the MRA. of some residual soil contamination. Investigations are ongoing as to the obligation, level and value of works required in order to mitigate and manage the area.
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F.9 INITIAL APPLICATION OF AUSTRALIAN ACCOUNTING The nature of these adjustments are described below: STANDARDS (a) Classification and measurement The MRA has applied the following Australian Accounting Standards Under AASB 9, financial assets are subsequently measured at amortised effective, or adopted, for annual reporting periods beginning on or after 1 cost, fair value through other comprehensive income (fair value through January 2019 that impact on the MRA. Other Comprehensive Income) or fair value through profit or loss (fair AASB 9 Financial instruments replaces AASB 139 Financial instruments: value through Profit/Loss). The classification is based on two criteria: the Recognition and Measurements for annual reporting periods beginning MRA's business model for managing the assets; and whether the assets’ on or after 1 January 2018, bringing together all three aspects of the contractual cash flows represent ‘solely payments of principal and interest’ accounting for financial instruments: classification and measurement; on the principal amount outstanding. impairment; and hedge accounting. The assessment of the MRA's business model was made as of the date The MRA applied AASB 9 prospectively, with an initial application of initial application, 1 July 2018. The assessment of whether contractual date of 1 July 2018. The adoption of AASB 9 has resulted in changes in cash flows on financial assets are solely comprised of principal and accounting policies and adjustments to the amounts recognised in the interest was made based on the facts and circumstances at the time of financial statements. In accordance with AASB 9.7.2.15, the Authority has initial recognition of the assets. not restated the comparative information which continues to be reported The classification and measurement requirements of AASB 9 did not under AASB 139. Differences arising from adoption have been recognised have a significant impact on the MRA. The following are the changes in directly in Accumulated Surplus/(Deficit). the classification of the MRA's financial assets: The effect of adopting AASB 9 as at 1 July 2018 was, as follows: • Trade Receivables, Other Debtors and Other Receivables are held to Assets Adjustments 1 July 2018 collect contractual cash flows and give rise to cash flows representing Trade Receivables 20 solely payments of principal and interest. These are classified and Other Debtors (a), (b) (4) measured as Financial assets at amortised cost beginning 1 July 2018. Other Receivables - • The MRA did not designate any financial assets as at fair value through Total Assets (4) the Statement of Comprehensive Income.
Total Adjustments on Equity (a), (b) (4) Accumulated surplus/(deficit) (4)
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In summary, upon the adoption of AASB 9, the MRA had the following reclassifications as at 1 July 2018: Amortised Fair value Fair value cost through OCI through P/L AASB 139 Category - Receivables $000 $000 $000 $000 Trade Receivables 2,381 2,381 - - Other Debtors 1,091 1,087 - - Other Receivables 60,093 60,093 - - Total Assets 63,565 63,561 - -
The change in carrying amount is a result of additional impairment allowance. (b) Impairment The adoption of AASB 9 has fundamentally changed the MRA's accounting for impairment losses for financial assets by replacing AASB 139’s incurred loss approach with a forward-looking expected credit loss (ECL) approach. AASB 9 requires the MRA to recognise an allowance for ECLs for all financial assets not held at fair value through the Statement of Comprehensive Income. Upon adoption of AASB 9, the MRA recognised an additional impairment on the MRA's Trade Receivables of $3,748 which resulted in a decrease in Accumulated surplus/(deficit) of $3,748 as at 1 July 2018. Set out below is the reconciliation of the ending impairment allowances in accordance with AASB 139 to the opening loss allowances determined in accordance with AASB 9: $000 Impairment under AASB 139 as at 30 June 2018 57 Remeasurement 4 ECL under AASB 9 as at 1 July 2018 61
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F.10 ACCOUNTING STANDARDS AND INTERPRETATIONS ISSUED BUT NOT YET EFFECTIVE The MRA is unable to 'early adopt' an AAS unless specifically permitted by TI 1101 ‘Application of Australian Accounting Standards and Other Pronouncements’ or by an exemption from TI 1101. Where applicable, the MRA plans to apply the following AAS's from their application date.
Operative for the MRA on reporting periods beginning on/after
AASB 15 Revenue from Contracts with Customers 1 July This Standard establishes the principles that the MRA shall apply to report useful information to users of financial statements about 2019 the nature, amount, timing and uncertainty of revenue and cash flows arising from a contract with a customer. The mandatory effective date of this Standard is currently 1 January 2019 after being amended by AASB 2016-7. The MRA's appropriation income will be measured under AASB 1058 and will be unaffected by this change. The MRA is continuing to undertake an assessment of the impact of this Standard on Sales Revenue. The MRA will adopt the modified retrospective approach on transition to AASB 15. No comparative information will be restated under this approach, and the MRA will recognise the cumulative effect of initially applying the Standard as an adjustment to the opening balance of accumulated surplus/(deficit) at the date of initial application.
AASB 16 Leases 1 July This Standard introduces a single lessee accounting model and requires a lessee to recognise assets and liabilities for all leases with a 2019 term of more than 12 months, unless the underlying asset is of low value. The recognition of additional assets and liabilities, mainly from operating leases, are estimated to increase the MRA’s total net assets by $6.6m and total net liabilities by $6.9m. This will have an estimated equity impact of ($254k) on 1 July 2019. In addition, interest and depreciation expenses will increase, offset by a decrease in rental expense for the year ending 30 June 2020 and beyond. The above assessment is based on the following accounting policy positions : • Option 1/Option 2 of the modified retrospective approach on transition; • the ‘low value asset’ threshold set at AUD $5,000 (unless GROH, GOA or State Fleet); • For leases classified as ‘short term’ (12 months or less), these are not recognised under AASB 16 (unless GROH, GOA or State Fleet); • Land, buildings and investment property ROU assets are measured under the fair value model, subsequent to initial recognition; and
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Operative for the MRA on reporting periods beginning on/after
Leases (continued) • Discount rates are sourced from WA Treasury Corporation (WATC). The MRA will adopt the modified retrospective approach on transition to AASB 16. No comparative information will be restated under this approach, and the MRA will recognise the cumulative effect of initially applying the Standard as an adjustment to the opening balance of accumulated surplus/(deficit) at the date of initial application.
AASB 1058 Income of Not-for-Profit Entities 1 July This Standard clarifies and simplifies the income recognition requirements that apply to not-for-profit (NFP) entities, more closely reflecting 2019 the economic reality of NFP entity transactions that are not contracts with customers. Timing of income recognition is dependent on whether such a transaction gives rise to a liability or other performance obligation (a promise to transfer a good or service), or a contribution by owners, related to an asset (such as cash or another asset) received by the MRA. AASB 1058 will have no impact on appropriations and recurrent grants received by the MRA – they will continue to be recognised as income when funds are deposited in the bank account or credited to the holding account. The MRA will adopt the modified retrospective approach on transition to AASB 1058. No comparative information will be restated under this approach, and the MRA will recognise the cumulative effect of initially applying the Standard as an adjustment to the opening balance of accumulated surplus/(deficit) at the date of initial application.
AASB 1059 Service Concession Arrangements: Grantors This Standard addresses the accounting for a service concession arrangement (a type of public private partnership) by a grantor that is a public sector MRA by prescribing the accounting for the arrangement from the grantor’s perspective. Timing and measurement for the recognition of a specific asset class occurs on commencement of the arrangement and the accounting for associated liabilities is determined by whether the grantee is paid by the grantor or users of the public service provided. The mandatory effective date of this Standard is currently 1 January 2020 after being amended by AASB 2018-5. The Authority does not manage any public private partnership that is within the scope of this Standard.
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Operative for the MRA on reporting periods beginning on/after
AASB Amendments to Australian Accounting Standards – Australian Implementation Guidance for Not-for-Profit Entities 1 July 2016-8 This Standard inserts Australian requirements and authoritative implementation guidance for not-for-profit entities into AASB 9 and 2019 AASB 15. This guidance assists not-for-profit entities in applying those Standards to particular transactions and other events. There is no financial impact.
AASB Amendments to Australian Accounting Standards – Australian Implementation Guidance for Not-for-Profit Public Sector Licensors 1 July 2018-4 This Standard amends AASB 15 to add requirements and authoritative implementation guidance for application by not-for-profit 2019 public sector licensors to transactions involving the issue of licences. There is no financial impact as the MRA does not issue licences.
AASB Amendments to Australian Accounting Standards – Deferral of AASB 1059 1 July 2018-5 This Standard amends the mandatory effective date of AASB 1059 so that AASB 1059 is required to be applied for annual reporting 2019 periods beginning on or after 1 January 2020 instead of 1 January 2019. There is no financial impact.
AASB Amendments to Australian Accounting Standards – Definition of Material 1 July 2018-7 This Standard clarifies the definition of material and its application by improving the wording and aligning the definition across AASB 2019 Standards and other publications. There is no financial impact.
AASB Amendments to Australian Accounting Standards – Right-of-Use Assets of Not-for- Profit Entities 1 July 2018-8 This Standard provides a temporary option for not for profit entities to not apply the fair value initial measurement requirements for 2019 right-of-use assets arising under leases with significantly below-market terms and conditions principally to enable the entity to further its objectives. The MRA will elect to apply the option to measure right-of-use assets under peppercorn leases at cost (which is generally about $1). As a result, the financial impact of this Standard is not material.
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F.11 EXPLANATORY STATEMENT This statement provides details of any significant variations between estimates (as per the Ministerially approved Operational Plan 2018/19) and actual results for 2019 and between the actuals results for 2019 and 2018 are shown below. Significant variations are considered to be those greater than 5% and $5 million. Variance Variance between between actual Estimate Actual Actual estimate results for Variance 2019 2019 2018 and actual 2019 and 2018 Statement of Comprehensive Income Note $000 $000 $000 $000 $000 Income Sales Revenue 1, A 28,183 15,540 45,965 (12,643) (30,425) Developer Contribution Income 10,174 7,164 5,830 (3,010) 1,334 Interest 2, B 535 8,684 828 8,149 7,856 Rechargeable Works C - 4,148 17,751 4,148 (13,603) Other Income D 6,170 7,701 22,873 1,531 (15,172) Fair Value Increment on Investment Property - 301 - 301 301 Total Income 45,062 43,538 93,247 (1,524) (49,709)
Expenditure Cost of Goods Sold 3, E 25,690 13,311 46,600 (12,379) (33,289) Employee Benefits 3, E 14,442 12,451 15,351 (1,991) (2,900) Supplies and Services 8,565 7,476 8,865 (1,089) (1,389) Depreciation and Amortisation 12,258 9,383 7,431 (2,875) 1,952 Developer Contribution Expense 4 12,956 172 4,147 (12,784) (3,975) Finance Costs 4 9,822 5,655 8,240 (4,167) (2,585) Rechargeable Works F - 3,340 17,714 3,340 (14,374) Other Expenses F 1,147 1,587 2,621 440 (1,034) Property Maintenance 5,353 6,435 5,644 1,082 791 Sales and Marketing 2,140 2,412 2,908 272 (496)
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Variance Variance between between actual Estimate Actual Actual estimate results for Variance 2019 2019 2018 and actual 2019 and 2018 Statement of Comprehensive Income Note $000 $000 $000 $000 $000 Expenditure Infrastructure Development Expense G 9,781 13,458 45,723 3,677 (32,265) Fair Value Decrement on Investment Property H - - 22,614 0 (22,614) Write Down of Inventory to NRV I - 49,168 10,536 49,168 38,632 Total Expenditure 102,154 124,848 198,394 22,694 (73,546)
Net Loss Other Than Income from State Government (57,092) (81,310) (105,147) (24,218) 23,837
Income from State Government Services Received Free of Charge - 199 110 199 89 Grants and Contributions from Other Government Agencies 5 11,760 41,354 45,009 29,594 (3,655) Surplus/(Loss) for the Period (45,332) (39,757) (60,028) 5,575 20,271
Other Comprehensive Income Items not reclassified subsequently to profit or loss Remeasurements of Defined Benefit Liability - (270) 146 (270) (416) Changes in Asset Revaluation Reserve - - (11) - 11 Total Other Comprehensive Income - (270) 135 (270) (405)
Total Comprehensive Income/(Loss) for the Period (45,332) (40,027) (59,893) 5,305 19,866
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Major Estimate and Actual (2019) Variance Narratives 1 Sales Revenue is lower than estimated due to delays in settlement on sites within the Central Perth, Armadale and Midland Redevelopment Areas which were budgeted in the 2018/19 financial year. 2 Interest is higher than estimated due to the recognition of interest on deferred payments of sales lots in relation to the Central Perth and Subiaco Redevelopment Areas pursuant to Australian Accounting Standards. 3 Costs of Goods Sold was lower than estimated due to sales in the 2018/19 financial year being lower than budgeted. Refer to comment on Sales Revenue. 4 Development Contribution Expense was lower than estimated due to a lower recognition of the value of works in lieu undertaken by developers. 5 Grants and Contributions from Other Government Agencies was higher than estimated due to further funding received for the Central Perth and Armadale Redevelopment Areas and receipts from Treasury to fund Corporate related functions.
Major Actual (2019) and Comparative (2018) Variance Narratives A Sales Revenue is lower than the previous financial year due to a reduction in the number of settlements of sales lots within the Central Perth Redevelopment Area. B Interest is higher than the previous year due to the recognition of interest on deferred payments of sales lots in relation to the Central Perth and Subiaco Redevelopment Areas pursuant to Australian Accounting Standards. C Rechargeable Works Income is lower than the previous year due to a reduction in the value of works performed within the Scarborough Redevelopment Area. D Other Income was lower than the previous year due to reduction in Provision for Remediation and release of Provision for Net Realisable Value Write Down. E Cost of Sales is lower than the previous financial year due to a reduction in the number of settlements of sales lots. F Rechargeable Works Expense is lower than the previous year due to a reduction in the value of works performed within the Scarborough Redevelopment Area. G Infrastructure Development Expense is lower than the previous year due to a reduction in the value of works performed within the Scarborough Redevelopment Area. H Fair Value Decrement on Investment Property is lower than the previous year due to the initial fair value measurement of Investment Properties within the Central Perth Redevelopment Area. I Inventory write downs for the current financial year relate to the Central Perth, Armadale and Midland Redevelopment Areas and are a function of market movements.
FINANCIALS — MRA ANNUAL REPORT 2018/19 — 141 Horseshoe Lane at Yagan Square.
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CERTIFICATION OF KEY PERFORMANCE INDICATORS
We hereby certify that the Key Performance Indicators are based on proper records, are relevant and appropriate for assisting users to assess the Metropolitan Redevelopment Authority’s performance, and fairly represent the performance of the Metropolitan Redevelopment Authority for the financial year ended 30 June 2019.
George McCullagh Simon Read Sean Henriques Board Chairperson Audit and Risk Management Acting Chief Executive Officer Committee Chairperson 26 August 2019 26 August 2019 26 August 2019
KEY PERFORMANCE INDICATORS — MRA ANNUAL REPORT 2018/19 — 143 Visitors relaxing at Elizabeth Quay
The MRA Agency Level Desired Outcome is: ‘‘To deliver vibrant, attractive and active Redevelopment Areas by building a Sense of Place, enhancing Connectivity and Environmental Integrity, and promoting Economic Well Being, Urban Efficiency, and Social Inclusion through providing for the planning and redevelopment of those areas.’
This outcome is guided by the MRA • promote urban efficiency through The Redevelopment Area Objectives define Redevelopment Area Objectives as prescribed infrastructure and buildings, the mix of the outcomes that the MRA intends to in the Metropolitan Redevelopment Authority land use and facilitating a critical mass of deliver within its Redevelopment Areas. Regulations 2011. Regulation 14 Redevelopment population and employment; These Redevelopment Area Objectives Area Objectives: s.30(5)(c) states: apply to all of the MRA’s Project Areas • enhance connectivity and reduce the need within its Redevelopment Areas. The objectives of each Redevelopment Area are to travel by supporting development aimed as follows, to: at well designed places that support walking, A single set of Key Performance Indicators • build a sense of place by supporting high cycling and public transit; (KPIs) is in place to measure the delivery of these Redevelopment Objectives. quality urban design, heritage protection, • promote social inclusion by encouraging, Each Redevelopment Area Objective is public art and cultural activities that respond where appropriate, a diverse range of housing represented by a KPI that best reflects the to Perth’s environment, climate and lifestyle; and by supporting community infrastructure individual Redevelopment Area Objective, • promote economic wellbeing by supporting, and activities and opportunities for visitors and each KPI attempts to provide a useful where appropriate, development that and residents to socialise; and measurement at any stage of the facilitates investment and provides • enhance environmental integrity by project cycle. opportunity for local businesses and emerging encouraging ecologically sustainable design, industries to satisfy market demand; resource efficiency, recycling, renewable energy and protection of the local ecology.
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AGENCY DESIRED OUTCOME To deliver vibrant, attractive and active redevelopment areas by building a sense of place, enhancing connectivity and environmental integrity, and promoting economic wellbeing, urban efficiency and social inclusion through providing for the planning and redevelopment of those areas.
Redevelopment Objectives
Sense of Place Economic Well Being Urban Efficiency
To build a sense of place by supporting high quality urban To promote economic well-being by supporting, To promote urban efficiency through design, heritage protection, public art, and cultural activities where appropriate, development that facilitates infrastructure and buildings, the mix of that respond to Perth’s environment, climate and lifestyle. investment and provides opportunities for local land use and facilitating a critical mass of businesses and emerging industries to satisfy population and employment. market demand.
Key Performance Indicators
User Satisfaction Investment Generated Land Use Volume & Mix
The concept of Sense of Place is best experienced and The MRA invests money into Redevelopment A critical mass of population is best enunciated by the users of the Redevelopment Area. In order Areas to stimulate the investment by other parties measured through the capacity of buildings to measure sense of place, it is acknowledged that each into the area. The proportion of investment made produced through the Redevelopment. Redevelopment Area, project and its associated precinct are by private industry and/or non MRA government These measures must include the mix of at different stages of development and in turn, may not be bodies into the Redevelopment Area is an land use – residential, commercial, retail and suitable for surveying. User satisfaction will measure the level indicative measure of the economic activity that industrial that might be included in MRA of satisfaction of the users of the Redevelopment Areas. has been produced from the MRA investment. Redevelopment Areas.
Services
Delivery of Major Projects
Key Efficiency Indicator – Overheads to Inventory and Profit The MRA exists to acquire land, develop land and sell land. The costs it incurs to deliver these services speaks to the efficiency of the organisation. The inventory of land assets held and the gross profit achieved through sales are two of the main metrics applicable to the MRA so a ratio of these metrics relative to the net operational overheads will track the efficiency of the Authority over time.
KEY PERFORMANCE INDICATORS — MRA ANNUAL REPORT 2018/19 — 145 Redevelopment Objectives
Social Inclusion Connectivity Environmental Integrity
To promote social inclusion for various people in the To enhance connectivity by supporting To enhance environmental integrity by redevelopment area by requiring diverse and affordable development aimed at well-designed places that encouraging ecologically sustainable housing and supporting community infrastructure, activities support walking, cycling and public transit. design, resource efficiency, recycling, and opportunities for visitors and residents to socialise. renewable energy and protection of the local ecology.
Key Performance Indicators
Housing Stock Diversity Public Transit Access Green Star Rating
Redevelopment Areas require a mixture of housing sizes Access of residents, workers and visitors to The Green Star Rating system provides to ensure the needs of the demographic mix of an area are public transport options is an important gauge of a measure of the environmental catered for and to ensure consistency of measurements. connectivity within the Redevelopment Area. integrity and efficiency of the built form Housing Stock Diversity will be based on the number of developed with the Redevelopment bedrooms in a dwelling. This will represent a range of size Area. This measure will demonstrate the of dwellings. The diversity of the housing stock delivered by environmental integrity and efficiency of the MRA in the Redevelopment Area is the most accurate commercial buildings. measure to gauge social inclusion.
Services
Statutory Planning Control
Key Efficiency Indicator – Statutory Planning Determination Timeframes Determining Statutory applications is one of the most important and visible services the MRA provides to external parties who wish to develop in the Redevelopment Area. The efficiency of these services is tied directly to critical services delivery and has the ability to impact the MRA reputation. KPI’S
Armadale Redevelopment Area1
Key Performance Indicator 2012/13 2016/17 2017/18 2018/19 2018/19 Analysis Baseline Actual Score Actual Score Target Score Actual Score
User Satisfaction 80% 72% Not applicable Not applicable Not applicable The survey is conducted at the initiation of each project to establish User Satisfaction against: a baseline then once the project is normalised or every five years, - Project area quality whichever is the earlier. The survey was conducted in the 2016/17 - Project area amenity year, and therefore is not required to be conducted in 2018/19. - Project area vitality
Investment Generated 51:1 $82,700,000 $29,178,278 $183,246,300 $60,886,296 Non-MRA investment targets for 2018/19 are based on the forecasted $ value of non-MRA : : : : development applications expected to be received for the year, and investment compared to $4,500,000 $3,425,935 $13,707,356 $650,983 calculated using costings from Rawlinson’s Australian Construction MRA investment. (18.2:1) (8.52:1) (13.37:1) (93.53:1) Handbook. Actual non-MRA investment utilises investment detailed in the development applications received during 2018/19. Land Use Volume and Mix 83 Units 195 Units 305 Units 432 Units 284 Units The MRA’s investment is identified via the Development Contribution Number of approved 75,366m2 30,494m2 32,135m2 40,860m2 32,509m2 Plan (DCP). Expenditure on DCPs is dependent on landowner input. Development Application The MRA‘s spending appears lower during the 2018/19 year, due to a residential units2. lack of claims against the DCP by landowners. Square metres of approved The number of approved residential units in the area in 2018/19 was commercial, retail and less than forecast, which can be largely attributed to the Wungong industrial space. Urban Water Project Area. Development applications received within the Wungong Urban Water Project Area were lower than expected due to poorer market conditions a number of structure plan approvals being delayed pending the outcomes of the Wungong Urban Water District Flood Model. A lack of Structure Plan approvals prevents subdivision approvals and submission of development applications.
Housing Stock Diversity 1 0% 1 3.6% 1 0% 1 0% 1 0% All residential development applications approved were single Percentage of approved 2 0% 2 11.3% 2 0% 2 6% 2 0% dwellings with 3+ bedrooms, which has been a consistent trend. diverse residential dwellings 3+ 100% 3+ 85.1% 3+ 100% 3+ 94% 3+ 100% Projects in proximity to the Armadale and Kelmscott town centres will according to number encourage more multi-unit development that will promote a greater of bedrooms (1, 2 and diversity of housing stock. 3 bedroom) (minimum percentage).
Public Transit Access 17% 57 dwellings 119 dwellings 247 dwellings 81 dwellings The number of approved dwellings in the area was less than forecast in Number of approved (29.2%) (39.0%) (28.5%) 2018/19, which can be largely attributed to the Wungong Urban Water dwellings within walkable Project Area. Market conditions and delays to Structure Plan approvals catchment of public transport (as described above) affected receipt of development applications for nodes/stops. residential developments. The residential developments that were able to proceed were also not within walkable catchments of public transport routes, resulting in a lower volume and percentage than targeted.
Green Star Rating 4 Star 0 4 Star 0 4 Star 12 4 Star 26 4 Star 14 The targeted number of development applications were not received Number of (4-6) Green star 5 Star 0 5 Star 0 5 Star 0 5 Star 0 5 Star 0 as outlined above. However, those approved were all within the rated (or equivalent) buildings. 6 Star 0 6 Star 0 6 Star 0 6 Star 0 6 Star 0 expected 4 star Green Star range where relevant.
1 The Armadale Redevelopment Area comprises the Armadale and Wungong Urban Project Areas. 2 Includes serviced apartments.
KEY PERFORMANCE INDICATORS — MRA ANNUAL REPORT 2018/19 — 147 Central Perth Redevelopment Area3
Key Performance Indicator 2012/13 2016/17 2017/18 2018/19 2018/19 Analysis Baseline Actual Score Actual Score Target Score Actual Score
User Satisfaction 90% 80% Not applicable Not applicable Not applicable The survey is conducted at the initiation of each project to establish User Satisfaction against: a baseline then once the project is normalised or every five years, - Project area quality whichever is the earlier. The survey was conducted in the 2016/17 - Project area amenity year, and therefore is not required to be conducted in 2018/19. - Project area vitality
Investment Generated 1.7 : 1 $757,100,000 $710,005,296 $685,449,030 $617,000,000 Non-MRA investment targets for 2018/19 are based on the forecasted $ value of non-MRA : : : : development applications expected to be received for the year, and investment compared to $67,900,000 $56,012,958 $44,921,099 $28,369,322 calculated using costings from Rawlinson’s Australian Construction MRA investment. (11.1:1) (12.68:1) (15.26:1) (21.75:1) Handbook. Actual non-MRA investment utilises investment detailed in the development applications received during 2018/19. Land Use Volume and Mix 41 Units 543 Units 814 Units 358 Units 703 Units A portion of the approved MRA budget used for target setting has Number of approved 36,808m2 15,572m2 11,780m2 63,016m2 64,718m2 since been reflowed as part of the 2019/20 budget process. The Development Application movement in the ratio reflect this. The reflow of capital expenditure residential units4. coincides with the review of the delivery program in the Perth City Square metres of approved Link Project. commercial, retail and The number of residential units approved were higher than forecast industrial space. for 2018/19 due to the approved development achieving height and yield bonuses/variations, as well as having a higher proportion of smaller units and hotel rooms.
Housing Stock Diversity 1 14.6% 1 35.73% 1 38% 1 20% 1 62% The increase in one bedroom dwellings above the percentages in Percentage of approved 2 48.8% 2 58.01% 2 40% 2 no target 2 32.8% the policy (62%) was supported in recognition of the proximity of the diverse residential dwellings 3+ 36.6% 3+ 6.26% 3+ 22% 3+ 10% 3+ 5% RAC Arena, to support affordability, and to facilitate critical mass in according to number the Project Area, consistent with the MRA's Redevelopment Area of bedrooms (1, 2 and Objectives. 3 bedroom) (minimum percentage).
Public Transit Access 100% dwellings 543 dwellings 493 dwellings 628 dwellings 703 dwellings The number of residential units approved were higher than forecast Number of approved (100%) (100%) (100%) for 2018/19, due the approved development achieving height and yield dwellings within walkable bonuses/variations, as well as having a higher proportion of smaller catchment of public transport units. All developments were within the walkable catchment as nodes/stops. anticipated.
Green Star Rating 4 Star 4 4 Star 1 4 Star 1 4 Star 0 4 Star 0 All approved developments are to achieve a minimum 5 star Green Number of (4-6) Green star 5 Star 2 5 Star 3 5 Star 2 5 Star 4 5 Star 4 Star rating in accordance with the Green Building Policy and the rated (or equivalent) buildings. 6 Star 0 6 Star 0 6 Star 0 6 Star 0 6 Star 0 appropriate Design Guidelines.
3 The Central Perth Redevelopment Area comprises the Elizabeth Quay, Perth City Link, Riverside, Perth Cultural Centre, New Northbridge, Claisebrook Village and East Perth Power Station Project Areas. 4 Includes hotel rooms.
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Midland Redevelopment Area5
Key Performance Indicator 2012/13 2016/17 2017/18 2018/19 2018/19 Analysis Baseline Actual Score Actual Score Target Score Actual Score
User Satisfaction 76% 84% Not applicable Not applicable Not applicable The survey is conducted at the initiation of each project to establish User Satisfaction against: a baseline then once the project is normalised or every five years, - Project area quality whichever is the earlier. The survey was conducted in the 2016/17 - Project area amenity year, and therefore is not required to be conducted in 2018/19. - Project area vitality
Investment Generated 4.6 : 1 $93,100,000 $110,909,500 $64,497,525 $25,000,000 Non-MRA investment targets for 2018/19 are based on the forecasted $ value of non-MRA : : : : development applications expected to be received for the year, and investment compared to $9,300,000 $1,922,471 $1,377,142 $93,525 calculated using costings from Rawlinson’s Australian Construction MRA investment. (10:1) (57.69:1) (45.83:1) (267.31:1) Handbook. Actual non-MRA investment utilises investment detailed in the development applications received during 2018/19. Land Use Volume and Mix 15 Units 233 Units 0 Units 119 Units 0 Units Some capital works scheduled by the MRA in the Midland Number of approved 8,485m2 5,401m2 58,428m2 22,928m2 12,719m2 Redevelopment Area were not undertaken. A reflow of unspent Development Application capital expenditure, to coincide with the delivery program was residential units6. approved as part of the annual 2019/20 budget process. The limited Square metres of approved capital spend has a significant impact on the ratio reported. commercial, retail and A single major development application (industrial land use) was industrial space. received. The forecasted development applications in the area were not received in 2018/19. The volume of land use in 2018/19 was lower than anticipated due to poorer economic and market conditions. These developments are expected to occur in later years.
Housing Stock Diversity 1 53.3% 1 30.9% Nil 1 20% Nil The forecasted residential development applications in Midland Percentage of approved 2 40% 2 59.66% 2 no target were not received in 2018/19, due to poorer economic and market diverse residential dwellings 3+ 6.7% 3+ 9.44% 3+ 10% conditions than anticipated. according to number of bedrooms (1, 2 and 3 bedroom) (minimum percentage).
Public Transit Access 100% 233 dwellings Nil 119 dwellings Nil The forecasted residential development applications in Midland Number of approved (100%) (100%) (100%) were not received in 2018/19, due to poorer economic and market dwellings within walkable conditions than anticipated. catchment of public transport nodes/stops.
Green Star Rating 4 Star 1 4 Star 8 4 Star 2 4 Star 9 4 Star 1 The amount of development approved in 2018/19 was lower than Number of (4-6) Green star 5 Star 0 5 Star 0 5 Star 0 5 Star 0 5 Star 0 anticipated as described above. The approved development did rated (or equivalent) buildings. 6 Star 0 6 Star 0 6 Star 0 6 Star 0 6 Star 0 achieve a minimum 4 star Green Star rating in accordance with the Green Building Policy and the appropriate Design Guidelines.
5 The Midland Redevelopment Area comprises the Midland Project Area. 6 Includes serviced apartments.
KEY PERFORMANCE INDICATORS — MRA ANNUAL REPORT 2018/19 — 149 Scarborough Redevelopment Area7
Key Performance Indicator 2015/16 2016/17 2017/18 2018/19 2018/19 Analysis Baseline Actual Score Actual Score Target Score Actual Score
User Satisfaction Survey not 81% Not applicable Not applicable Not applicable The survey is conducted at the initiation of each project to establish User Satisfaction against: conducted a baseline then once the project is normalised or every five years, - Project area quality whichever is the earlier. The survey was conducted in the 2016-17 - Project area amenity year, and therefore is not required to be conducted in 2018/19. - Project area vitality
Investment Generated $89,825,135 $38,900,000 $311,951,313 $18,800,305 $38,100,000 Non-MRA investment targets for 2018/19 are based on the forecasted $ value of non-MRA : : : : : development applications expected to be received for the year and investment compared to $3,562,897 $8,700,000 $30,644,800 $0 $0 calculated using costings from Rawlinson’s Australian Construction MRA investment. (25.2:1) (4.4:1) (10.18:1) (n/a) (n/a) Handbook. Actual non-MRA investment utilises investment detailed in the development applications received during 2018/19. Land Use Volume and Mix 236 Units 18 Units 578 Units 49 Units 80 Units There was no budget allocated for capital works in the Scarborough Number of approved 2,496m2 2,579m2 10,198m2 7,615m2 214m2 Redevelopment Area. The Scarborough Project has been handed to Development Application the City of Stirling. residential units8. The major residential development applications that approved Square metres of approved included a greater volume of units than anticipated. The anticipated commercial, retail and development did not achieve the expected commercial and retail uses industrial space. as they were primarily residential focusses.
Housing Stock Diversity 1 38% 1 39% 1 32% 1 20% 1 8% The decrease in the proportion of single bedroom dwellings Percentage of approved 2 54% 2 33% 2 39% 2 no target 2 35% is attributed to the development at Nautilus Crescent (Aged diverse residential dwellings 3+ 8% 3+ 28% 3+ 29% 3+ 10% 3+ 56% Accommodation), where a greater proportion of three bedroom according to number dwellings were approved to provide flexibility to tenants, house of bedrooms (1, 2 and guests and live-in carers. 3 bedroom) (minimum percentage).
Public Transit Access 236 dwellings 18 dwellings 578 dwellings 49 dwellings 80 dwellings The number of residential units approved were higher than forecast Number of approved (100%) (100%) (100%) (100%) as described above. All developments were within the walkable dwellings within walkable catchment as anticipated. catchment of public transport nodes/stops.
Green Star Rating 4 Star 1 4 Star 2 4 Star 3 4 Star 4 4 Star 1 One development application will achieve a minimum 4 star Green Number of (4-6) Green star 5 Star 0 5 Star 0 5 Star 0 5 Star 0 5 Star 1 Star rating in accordance with the Green Building Policy and the rated (or equivalent) buildings. 6 Star 0 6 Star 0 6 Star 0 6 Star 0 6 Star 0 appropriate Design Guidelines. One development application will achieve a 5 star Green Star rating in excess of the minimum requirement.
7 The Scarborough Redevelopment Area comprises the Scarborough Project Area. 8 Includes serviced apartments.
150 — MRA ANNUAL REPORT 2018/19 — KEY PERFORMANCE INDICATORS KPI’S
Subiaco Redevelopment Area9
Key Performance Indicator 2012/13 2016/17 2017/18 2018/19 2018/19 Analysis Baseline Actual Score Actual Score Target Score Actual Score
User Satisfaction 82% 96% Not applicable Not applicable Not applicable The survey is conducted at the initiation of each project to establish User Satisfaction against: a baseline then once the project is normalised or every five years - Project area quality whichever is the earlier. The survey was conducted in the 2016-17 year - Project area amenity and therefore is not required to be conducted in 2018/19. - Project area vitality
Investment Generated 36.4 : 1 $76,200,000 $83,802,000 $15,921,448 $21,890,000 Non-MRA investment targets for 2018/19 are based on the forecasted $ value of non-MRA : : : : development applications expected to be received for the year, and investment compared to $785,000 $0 $0 $0 calculated using costings from Rawlinson’s Australian Construction MRA investment. (97:1) (n/a) (n/a) (n/a) Handbook. Actual non-MRA investment utilises investment detailed in the development applications received during 2018/19. Land Use Volume and Mix 101 Units 209 Units 131 Units 80 Units 80 Units There was no capital spend in the Subiaco Redevelopment Area in Number of approved 345m2 2,809m2 17,921m2 140m2 76m2 2018/19, due to the project nearing completion. Development Application The anticipated development did achieve the target for 2018/19, residential units10. however due to design considerations and market conditions, the Square metres of approved development was approved with a smaller commercial tenancy. commercial, retail and industrial space.
Housing Stock Diversity 1 49.5% 1 21.54% 1 20% 1 20% 1 62% The increase in the proportion of one bedroom dwellings was Percentage of approved 2 41.7% 2 45.93% 2 46% 2 no target 2 23% supported due to the high proportion of three bedrooms in the diverse residential dwellings 3+ 8.8% 3+ 32.53% 3+ 34% 3+ 10% 3+ 13% Precinct, and predicted demand in the Subiaco locality as based on according to number census data. of bedrooms (1, 2 and 3 bedroom) (minimum percentage).
Public Transit Access 100% 209 dwellings 131 dwellings 80 dwellings 80 dwellings The anticipated volume of residential dwellings was achieved and in Number of approved (100%) (100%) (100%) the appropriate location. dwellings within walkable catchment of public transport nodes/stops.
Green Star Rating 4 Star 1 4 Star 3 4 Star 3 4 Star 1 4 Star 1 The new development will achieve a minimum 4 star Green Star or 8 Number of (4-6) Green star 5 Star 0 5 Star 1 5 Star 0 5 Star 0 5 Star 0 Star NatHers rating in accordance with the Green Building Policy and rated (or equivalent) buildings. 6 Star 0 6 Star 0 6 Star 0 6 Star 0 6 Star 0 the applicable Design Guidelines.
9 The Subiaco Redevelopment Area comprises the Subi Centro and Subiaco East Project Area. 10 Includes serviced apartments.
KEY PERFORMANCE INDICATORS — MRA ANNUAL REPORT 2018/19 — 151 Services
Services 2012/13 2016/17 2017/18 2018/19 2018/19 Analysis Baseline Actual Score Actual Score Target Score Actual Score
Delivery of 11% 12% 13% 6.1% 9% Inventory write-downs have reduced major projects the average inventory balance within MRA compared to the target calculation Redevelopment resulting in a higher actual KPI. Areas Key Performance Indicator Ratio of net operational overheads to average inventory plus gross profit
Statutory 59 days Armadale Standard 28 Armadale Standard 44 Armadale Standard 90 Armadale Standard 29 Median determination timeframes for Planning Control Major Nil Major N/A Major 120 Major N/A standard development applications Key Performance were less than the target 90 days Indicator Central Perth Standard 57 Central Perth Standard 57 Central Perth Standard 90 Central Perth Standard 61 period in all areas, maintaining efficient processing of these more Median Major 177 Major 163 Major 120 Major 190 minor developments. determination timeframe in days Midland Standard 51 Midland Standard 76 Midland Standard 90 Midland Standard 90 The longer timeframes for major for development Major 140 Major 135 Major 120 Major 139 development applications in Central applications Perth, Midland and Scarborough (standard and Subiaco Standard 64 Subiaco Standard 44 Subiaco Standard 90 Subiaco Standard 55 were as a result of amendments major), subdivision Major 161 Major 149 Major 120 Major 101 to plans, and additional information applications and being required. structure plans Scarborough Standard 58 Scarborough Standard 62 Scarborough Standard 90 Scarborough Standard 85 No major development applications Major 169 Major 124 Major 120 Major 140 were received in Armadale in 2018/19.
* Section 65(2) of the Metropolitan Redevelopment Authority Act 2011 requires major development applications be approved within 120 days after the date on which the application is received. ** Section 65(2) of the Metropolitan Redevelopment Authority Act 2011 requires standard development applications to be approved within 90 days after the date on which the application is received.
152 — MRA ANNUAL REPORT 2018/19 — KEY PERFORMANCE INDICATORS KPI’S
MRA METHODOLOGY NOTES TO ACCOMPANY EFFECTIVENESS RESULTS
User Satisfaction Investment Generated Urban Efficiency The survey is conducted at the initiation of Results derived by: Number of approved development each project to establish a baseline then applications for residential units MRA Investment: once the project is normalised or every five • This was demonstrated by the number of years, whichever is the earlier. The survey • Amount capitalised as inventory. approved development applications for was conducted in the 2016-17 year and • Plus any capitalised work on the MRA’s residential, mixed-use, change of use to therefore is not required to be conducted investment properties. residential and amendments approved in in 2018-19. The MRA has a target of 66% the last financial year per redevelopment user satisfaction for the overall life of each • Plus the cost of works done by the MRA for area, then by project and precinct. Redevelopment Area. other government agencies. • Plus the cost of works facilitated by the MRA Square metres of approved development applications for commercial, retail, industrial Wirin Statue at Yagan Square. within the Development Contribution Plans. etc. space Non-MRA Investment: • This was demonstrated by the number of Development applications approved in the development applications approved in the period were filtered by redevelopment area, last financial year per redevelopment area, then by project and precinct. then by project and precinct. A ratio is then sought after both non-MRA • Development applications for small investment and MRA investment has been additions such as patios and fencing were calculated. not included. The formula is value of non-MRA investment • Details of all approved floor space for ($) compared to MRA investment ($). applications were obtained from the Planning and Contract of Sale system (PACS).
KEY PERFORMANCE INDICATORS — MRA ANNUAL REPORT 2018/19 — 153 Social Inclusion Connectivity Environmental Integrity • Includes development applications • Results derived by using only: • Results derived by only including approved in the last financial year in each development applications approved in the o Residential and Mixed-Use development Redevelopment Area. last financial year for each redevelopment applications; area and then by project area and precinct. • The development applications were o Approved development applications; for residential, mixed use, change of • These results were further refined by use to residential and amendments to o Development applications approved in including only development applications development applications. 2018-2019 financial year were selected. for new commercial, industrial, mixed-use, community or residential units excluding • Development applications for mixed- • Straight Line Distance Analysis single dwellings. use developments which did not include o Development applications which were residential or applications for transient within walkable 400metre distance of • Green-Star conditions are only imposed residential such as hotel uses were not a bus stop and/or 800metre of transit when constructing new buildings. included. stops were analysed. • Development approvals and individual • Dwelling statistics for all approved • Walkable Distance Analysis files were reviewed to determine whether a residential dwellings were obtained from (4/5/6 star) Green-Star rating was imposed PACS. o The list of development application as a condition of the approval. lots within a straight line 400metre to 800metre distance of a transit stop were Statutory Planning Control assessed to see if they were within • The measure utilised was the average 400metre to 800metre via the road timeframe (in days) within which network. This was undertaken using development applications (standard and Google Maps measurement tool as the major) were determined and applicants transit stops are visible on Google Maps. notified. • Final count of applicable development • Subdivision applications are determined applications within walkable distance of by the Western Australian Planning transit stops by scheme area. Commission (WAPC) within the Armadale o The list of applicable development Redevelopment Area, with the WAPC applications within walkable distance of providing the MRA with a 42-day transit was then sorted by Project Area. referral period prior to them making a determination.
154 — MRA ANNUAL REPORT 2018/19 — KEY PERFORMANCE INDICATORS KPI’S
2019 Perth Winter Fest at Yagan Square.
KEY PERFORMANCE INDICATORS — MRA ANNUAL REPORT 2018/19 — 155 Sunset at the Scarborough Foreshore.
156 — MRA ANNUAL REPORT 2018/19 — DISCLAIMERS DISCLAIMERS
ADMINISTERING LEGISLATION
The MRA administers the Metropolitan Redevelopment Act 2011 along with its subsidiary legislation the Metropolitan Redevelopment Authority Regulations 2011.
Other Key Legislation Impacting • Fair Trading Act 2010 • Public Works Act 1902 on MRA Activities: • Financial Management Act 2006 • Racial Discrimination Act 1975 • Auditor General Act 2006 • Freedom of Information Act 1992 • Salaries and Allowances Act 1975 • Building Act 2011 • Fringe Benefit Tax Assessment Act 1986 • Sale of Land Act 1970 • City of Perth Act 2016 • Heritage of Western Australia Act 1990 • State Administrative Tribunal Act 2004 • Commercial Tenancy (Retail Shops) • Income Tax Assessment Act 1997 • State Records (Consequential Provisions) Act Agreement Act 1985 2000 • Industrial Relations Act 1979 • Community Titles Act 2018 • State Superannuation Act 2000 • Insurance Commission of WA Act 1986 • Competition and Consumer Act 2010 • State Supply Commission Act 1991 • Jetties Act 1926 • Construction Contracts Act 2004 • Statutory Corporations (Liability of Directors) • Land Administration Act 1997 • Contaminated Sites Act 2003 Act 1996 • Land Tax Assessment Act 2002 • Corruption and Crime Commission Act 2003 • Strata Titles Act 1985 • Local Government Act 1995 • Disability Services Act 1993 • Swan and Canning Rivers Management Act • Main Roads Act 1930 2006 • Disability Discrimination Act 1992 • Minimum Conditions of Employment Act 1993 • Taxation Administration Act 2003 • Duties Act 2008 • Occupational Health and Safety Act 1984 • Trade Marks Act 1995 • Electoral Act 1907 • Personal Properties Securities Act 2009 • Transfer of Land Act 1893 • Environmental Protection Act 1986 • Planning and Development Act 2005 • Western Australian Jobs Act 2017 • Environment Protection and Biodiversity • Public Interest Disclosure Act 2003 Conservation Act 1999 • Workers Compensation and Injury • Public Sector Management Act 1994 Management Act 1981 • Equal Opportunity Act 1984 • Public Transport Authority Act 2003
157 — MRA ANNUAL REPORT 2018/19 — DISCLAIMERS DISCLAIMERS — MRA ANNUAL REPORT 2018/19 — 157 DISCLOSURES AND LEGAL COMPLIANCE
Ministerial directives, recommendations and Section 29(5) of the Act provides: Pricing Policies approvals “if the Minister recommends the making of In accordance with the Metropolitan Section 115(1) of the Metropolitan Redevelopment regulations the content of which is, in the Redevelopment Authority Regulations 2011, the Authority Act 2011 (Act) provides: Minister’s opinion, significantly different to any MRA provides planning services in accordance recommendations made by the Western Australian with fees prescribed at Schedule 5 of the “the Minister may give written directions to the Planning Commission under this section, the Regulations. Authority with respect to the performance of Minster must cause notice of the difference to be its functions under this or any other Act, either laid before each House of Parliament or dealt with Disability Access and Inclusion Plan generally or in relation to a particular matter, under section 132, within 14 days after the day on The MRA believes that people with a disability and the Authority must give effect to any such which the Minister's recommendation is given” should have equal opportunity to access direction when it becomes effective under its services, facilitates and information. In section 116.” The MRA received no Ministerial Recommendations of this nature between accordance with Part 5 of the Disabilities The MRA received no Ministerial Directives 1 July 2018 to 30 June 2019. Services Act 1993, the MRA established a new between 1 July 2018 to 30 June 2019. Disability Access and Inclusion Plan (DAIP) for Section 47(4) of the Act provides: the period 2017-2022. This involved conducting Section 29(1) of the Act states: “if the Minister approves a draft redevelopment workshops with staff across the organisation “the Governor must not make regulations scheme the content of which is, in the and public consultation. The feedback sourced under section 30 or 31 that declare land to be, Minister’s opinion, significantly different to through this consultation shaped the new or add land to a Redevelopment Area except on any recommendation given by the Western strategies for the MRA DAIP for the 2017/2022 the recommendation of the Minister” Australian Planning Commission under period. section 46, the Minister must cause notice of Employee induction processes and ongoing the difference to be laid before each House of policy implementation increased employee Parliament or dealt with under section 132, awareness of disability and access issues, within 14 days after the scheme start day” addressing desired outcomes in accordance The MRA received no Ministerial Approvals with Schedule 3 of the Disability Services between 1 July 2018 to 30 June 2019. Regulations 2004 during 2018-19.
158 — MRA ANNUAL REPORT 2018/19 — DISCLAIMERS DISCLAIMERS
Governance Disclosures new reconciliation approaches and the result is a actions have been undertaken in the more ambitious RAP for both agencies. This joint Scarborough and Yagan Square projects: All MRA Board and Committee agendas have a Stretch RAP reflects the consolidation process and standing item, which invites members to declare • Descriptive Artist Attributes have been contains sections common to both agencies, and any conflicts of interest, in accordance with the installed across Scarborough redevelopment sections specific to either LandCorp or the MRA. requirements of section 97(1) of the MRA Act artwork locations. LandCorp and MRA’s vision is for a reconciled and the common law doctrine of disqualification • All events and digital tower content adhere to Western Australia where Aboriginal people, arising from a reasonable apprehension of the Yagan Square Civic and Cultural Charter, communities and cultures are respected and bias. These potential conflicts of interest are which promotes consideration of Aboriginal celebrated as the first people and Custodians registered and monitored regularly. heritage, and fostering of the relationship with of the Country where we all live and where Key Management Personnel of the MRA and the Whadjuk Noongar, people in all events, LandCorp and MRA undertake our projects. Board are required to complete a statement activities and operations. Reconciliation will only be achieved once the of interest declaration outlining the relevant • All MRA activations, marketing and events follow unacceptable gaps that exist between Aboriginal financial interest. These interests are registered the Noongar six seasons where applicable. and reviewed annually. people and other Western Australians are closed, and Aboriginal culture and heritage are recognised • Coordination of Yagan Square school cultural The MRA’s contract administration system and valued as part of a shared national identity. tours have been commenced with Go Cultural requires senior officers to declare interests in Tours as hosts. any existing or proposed contracts they are LandCorp and MRA aim to do this in Western involved in administrating. During 2018-19 two Australia by: • Where possible the MRA has engaged Indigenous contractors such as Roo Force interests were declared. • Using our heads and minds (kaart*) to find Security and Karla Hart Enterprises, for Yagan ways to achieve economic and employment In 2018-19, the MRA paid $59,905.00 (excluding Square operations, digital tower content and outcomes in equal and active partnerships GST and Stamp Duty) for insurance to curation, and event management. indemnify its directors as defined in Part 3 with Aboriginal people and communities: • The Discovery Trail, including signage to of the Statutory Corporations (Liabilities of • Using our hearts (koort*) to embrace convey the stories of the artworks, design and Directors) Act 1996 against liability incurred and celebrate culture and heritage in our places has been installed at Yagan Square, under sections 13 or 14 of the Statutory workplace and in our projects; and Corporations (Liability of Directors) Act 1996. along with story plaques on the artwork and • Listening and talking (waarnginy*) with each artists. Reconciliations Action Plan other and Aboriginal communities we work • The MRA has hosted NAIDOC week celebrations with, to build and maintaining authentic, The MRA and LandCorp are currently preparing in collaboration with key local stakeholders mutually beneficial relationships with and for a joint stretch Reconciliation Action Plan to across the Yagan Square project. be endorsed by Reconciliation Australia. It is Aboriginal people and communities. Major Capital Projects expected that this will be approved in 2019/20. Although the Reconciliation Action Plan is Collaborating on the joint Stretch RAP has enabled yet to be endorsed, the MRA is committed to Please refer to Agency Performance for information both agencies to share, learn, develop and plan reconciliation, and in 2018/19 the following about the MRA’s major capital projects.
*Noongar Language words..
DISCLAIMERS — MRA ANNUAL REPORT 2018/19 — 159 Marketing and Advertising Type Organisation Type Organisation Type Organisation In compliance with Section 175ZE of the Electoral Act 1907, the MRA incurred the Market Research Research Solutions Pty Ltd $20,065.00 following expenditure in advertising, market research and media advertising Media Advertising Carat Australia Media Services Pty Ltd $137,491.55 to communicate traffic and project Initiative Media Australia Pty Ltd $38,214.64 updates, destination development and to support land sales across the MRA’s five Adcorp Australia Ltd $3,113.25 Redevelopment Areas. Blaze Advertising Pty Ltd $2,535.52 Total expenditure for the reporting period was $397,604.22 (excluding GST). Advertising Hatchd Digital $41,109.45 Expenditure was incurred in the following areas: Marketforce Pty Ltd $46,875.29 Rare Pty Ltd $36,843.90 Google Australia Pty Ltd $25,115.80 Facebook $13,778.78
Aerial of Subiaco Oval and the focus area of West Coast Eagles $8,970.00 the Sub-East project. Jorbens Luxury Hotels Guide Pty Ltd $7,863.64 Premium Publishers $5,800.00 Burgess Rawson (WA) Pty Ltd $3,178.18 Twitter $3,000.00 CineAds Australia Pty Ltd $2,400.00 Department of Premier & Cabinet State Law $350.85 Publisher Polling Organisations N/A Nil Direct Mail Organisations Letterbox Distributors Pty Ltd $898.37
160 — MRA ANNUAL REPORT 2018/19 — DISCLAIMERS DISCLAIMERS
MRA Staff Development The below table summaries training investment Initiatives available to employees included: over the year. To continue to deliver innovative urban • Flu vaccinations, offered in May 2019 and redevelopment, a highly capable, competent taken up by 39 employees; 2018-19 and motivated team is required. The MRA • Group participation in the HBF Run for values its staff and continually pursues Total hours of training provided to 533 a Reason resulted in registration and opportunities to develop employee’s personal employees participation by 13 employees; and and professional competencies. • Participated in LandCorp’s Health and Safety MRA staff have attended over 530 hours of role Number of hours professional 90 development Month in October 2018 with 15 employees specific professional development courses, as participating in a variety of initiatives that well as courses aimed at developing broader were offered. capabilities to enhance future management Average hours per FTE 5 career opportunities. In addition, 64 hours Workers Compensation Training Costs (cost of courses) $18,940 of internal training was conducted including No Workers’ Compensation Claims were Accountable Ethical Decision Making and Average training investment per $180 approved during the financial year. various new employee on boarding specific FTE training. Occupational Safety and Health The MRA’s key training initiatives delivered MRA Policies, Procedures and Programs to The MRA is committed to responsible and during the 2018-19 year were: Assist Employees effective management of Occupational Safety and Health (OSH) in all aspects of its functions. • Project Management course attended by The MRA’s Employee Wellness Program is The MRA values the safety and health of its 20 employees; and an initiative linked to the strategic objectives people, contractors, customers and other • Accountable and Ethical Decision making developing and implementing strategies to stakeholders affected by the work it undertakes. training attended by 16 employees. enhance a productive and engaged workforce, Ongoing development and improvement of the increasing retention of existing staff and OSH Management System is a key focus of the attraction of new talent to the MRA. MRA Executive Committee.
The benefits of the MRA’s Employee Wellness The OSH Management System was internally Program also extend beyond the personal. For reviewed against the WorkSafe Plan and example, internal relationships improve through the review informed the development of an shared activity; leading to improvements in improvement plan which is currently at 88 productivity and efficiency. It is for these reasons per cent completion. The MRA consults with that the MRA acknowledges the importance workers regarding safety and health matters of these programs in contributing to the that may affect them. achievements of its strategic objectives, as well as their material effect on the attraction and retention of motivated and talented employees.
DISCLAIMERS — MRA ANNUAL REPORT 2018/19 — 161 Employees are involved in workplace The MRA complies with the injury management Managers and supervisors receive individual inspections, risk assessments, identification and requirements of the Workers’ Compensation and coaching in injury management responsibilities implementation of controls, job safety analysis, Injury Management Act 1981 and has workers’ and processes to assist return to work programs. development of safe work method statements compensation, injury management and return to and emergency planning processes. work policies, procedures and documentation.
Measures Results Results 2017-18 Results 2018-19(1) Targets Comments 2016-17 (1) Base year Prior year Current reporting year towards targets
Number of fatalities 0 0 0 0 Target achieved
Lost time injury and disease 0 0 0 0 or 10% reduction in Target achieved incidence rate incidence rate
Lost time injury severity rate 0 0 0 0 or 10% reduction in Target achieved severity rate
Percentage of injured Not applicable Not applicable Not applicable Greater than or equal Target achieved workers returned to work (i) to 80% return to work within 13 weeks within 26 weeks.
Percentage of injured Not applicable Not applicable Not applicable Greater than or equal Target achieved workers returned to work (ii) to 80% return to work within 26 weeks within 26 weeks
Percentage of managers 63% 81% 63% Greater than or equal to Target not achieved trained in occupational 80% safety, health and injury management responsibilities
The MRA has not achieved its target for manager training in occupational safety, health and injury management responsibilities for 2018/19 due to managers, who have been trained, leaving the MRA.
162 — MRA ANNUAL REPORT 2018/19 — DISCLAIMERS DISCLAIMERS
Substantive Equality Record Keeping Plan Freedom of Information Requests The MRA is committed to eliminating systemic Under section 19 of the State Records Act 2000, In accordance with the Freedom of Information forms of discrimination and promoting the MRA has a Record Keeping Plan which was Act 1992, the public have a legal right to access awareness and sensitivity of the different needs approved by the State Records Commission on records (which are not otherwise exempt) held of client groups. The MRA’s Workforce and 6 December 2013. The MRA’s Record Keeping by State and Local Government agencies. Diversity Plan, Disability Access and Inclusion Plan governs how the MRA captures, stores, and The MRA has an Information Statement that Plan and Reconciliation Action Plan, all aim to manages document retention in accordance with provides information about the organisation, achieve substantive equality. the approved Retention and Disposal Authority, and a procedure to assist with lodging a and the MRA’s Record Keeping Policy. As required The MRA develops policies, procedures Freedom of Information application which is under the MRA Act, a review of the MRA’s Record and programs that enhances a positive and available to the public on the MRA's website Keeping Plan was undertaken and a Record inclusive environment and assists in achieving (mra.wa.gov.au) Keeping Plan Review Report submitted to the substantive equality. State Records Commission on 6 December 2018. Unauthorised use of credit cards Compliance with Public Sector Standards As outlined in the report, the MRA will submit During 2018-19 reporting period there was one and Ethical Codes an amended Record Keeping Plan to the State instance of personal expenditure totalling $4.00 Records Commission by 6 December 2019. The The MRA expects employees to display a high including GST. This instance was accidental, effectiveness of the Record Keeping Training Plan standard of ethical behaviour during their reported appropriately and repaid by the is undertaken annually and opportunities for work and provides annual training sessions in individual officer concerned. improvement are addressed as required. accountable and ethical decision making. In 2018/19, the MRA held two Accountable and The MRA uses an electronic document Ethical Decision Making training sessions. The management system (EDRMS) to manage Code of Conduct and Ethics are discussed in information efficiently and effectively to meet these sessions and are also published on the legislative, business, administrative, financial, MRA intranet. All new employees are provided evidential and historical requirements. The a copy as part of their onboarding. Employees EDRMS is continuously being reviewed to are familiarised with the Code of Conduct improve the functionality and efficiency of the and ethics and are required to declare their system. understanding and compliance with the Code The MRA’s staff Induction Program and Record on commencement of their employment. Keeping Training Plan includes the Records Awareness Training where employees are informed of their record keeping obligations, and training on the EDRMS, which is complemented with Record Keeping Work Instructions. Refresher EDRMS training is offered to existing staff on a regular basis.
DISCLAIMERS — MRA ANNUAL REPORT 2018/19 — 163
The Bridge at Elizabeth Quay. (08) 6557 0700 GPO Building, Level 3, 3 Forrest Place, Perth, WA 6000 www.mra.wa.gov.au