Annual Report 2018-19 To the Hon. Rita Saffioti MLA Acknowledgement of Country “The PTA acknowledges the traditional custodians of all Aboriginal lands where we operate. Minister for Transport We pay our respects to the Elders of these regions, past, present and future.”

In accordance with section 63 of the Financial Management Act 2006 (WA), I submit for your information and presentation to Parliament, the annual report of the Public Transport Authority of for the year ended 30 June 2019. It has been prepared in accordance with the provisions of the Financial Management Act and any other relevant written law. Contents

Chief Executive Officer’s message 2.4.1 Planning for the future Richard Sellers Managing Director’s overview 2.4.2 Major projects Chief Executive Officer 1 Corporate snapshot 2.4.3 Network maintenance and upgrades 1.1 Organisational profile 2.5 Our people About this report 1.2 Organisational structure 1.3 Cases in point: 2019 spotlight 3 Governance and compliance This annual report covers the performance of the Public Transport Authority (PTA) and our 3.1 Bus safety 1.4 Financials at a glance operating areas. We fulfil our reporting obligation by identifying the relevant strategic outcomes and 3.2 Rail safety our contribution to them in 2018-19 through: 2 Operational report 2.1 Our services 3.3 Occupational safety, health and • Operational reports that summarise the performance of our services and business activities. 2.1.1 Metro () injury management • Governance and compliance reports. 2.1.2 Regional () 3.4 Risk management • Audited key performance indicators. 2.1.3 Regional (TransRegional) 3.5 Freight corridor lease agreement • Audited financial statements. 2.1.4 School Bus Services compliance 2.2 Fares and other revenue 3.6 Other legal and policy requirements Performance management framework 2.2.1 Metro 3.7 Other governance and financial To honour the Government’s vision for Western Australia, the PTA has targeted two outcomes: 2.2.2 Regional disclosures 2.3 PTA in the community • An accessible, reliable and safe public transport system 3.8 Independent Auditor’s report 2.3.1 Customer satisfaction • Protection of the long-term functionality of the rail corridor and railway infrastructure 3.9 Key performance indicators 2.3.2 Passenger safety and security Indicators of success in achieving the first of these outcomes are based on patronage and service 3.10 Audited KPI Report provision, accessibility, reliability, customer satisfaction, safety and cost efficiency. 2.3.3 Accessible services 2.3.4 Communication with our customers 4 Financial Statements For the second outcome, success results from quality management of the railway corridor and Financial Report residual issues of the rail freight network, which was leased to private sector operators in 2000. 2.3.5 Environment and sustainability 2.4 Infrastructure delivery Glossary of terms Refer to the key performance indicators.

About this artwork Created by local Aboriginal graphic designer, Justine Kinney, the artwork on this page is part of the PTA’s 2018-20 Reconciliation Action Plan. The iconography scattered throughout the document uses imagery to depict what we are hoping to achieve. Public Transport Authority Annual Report 2018-19 Corporate Snapshot Operational report Governance and compliance Financial Statements Return to Contents

Chief Executive Officer’s message

I am pleased to present the Public Transport Authority’s annual report for 2018-19. Through actively recruiting youth and indigenous Improving transport across our State is vital people, ensuring our services can be accessed – for our quality of life and our economy Underpinning the achievements detailed in this Despite the changing fabric of WA, the by all and playing a role in the continuing – and a transformation is certainly under way report and those of the PTA into the future is our fundamentals of public transport remain true development of the communities in which we with the work being undertaken across the responsibility to work with our portfolio partners, – it is the ultimate social enabler for people from operate, it’s clear that the true measure of the portfolio. We’ve already come a long way and the Department of Transport and Main Roads all backgrounds and of all abilities. As a portfolio, PTA’s success is not weighted on construction there’s plenty more to do. projects alone, but on our willingness and ability Western Australia, to plan and deliver transport we are committed to ensuring that the State’s Examples of how the Transport Portfolio is to give back. solutions for the prosperity of WA. Together, we transport services are accessible for every working together on significant transport have made excellent headway on a number of member of the community. Every day we play a As the world around us becomes more projects are highlighted in the 2018-19 key priorities in 2018-19 ranging from smaller significant and vital part in the lives of hundreds connected through rapid advances in technology, Connecting People and Places publication. policy, process and customer service of thousands of people, and the PTA is working the way we deliver information to our passengers Connecting People and Places also provides improvements to large-scale transformational hard to ensure every passenger can travel must also evolve and adapt. an overview of the portfolio’s operations and the infrastructure projects – all delivering huge independently. objectives, trends and influences guiding our The next generation Transperth app was benefits for the community. work in the future. This year we reached an important milestone: launched this year, making catching public Record State and Federal Government The entire Transperth bus fleet is now fully transport in even easier. GPS trackers have As Chief Executive Officer, it is a privilege to investment in critical road and rail infrastructure accessible, joining Transperth ferries and trains, been installed in all 1481 of Transperth’s lead the PTA and have the opportunity to across WA in 2018-19 reaffirmed the significance and Transwa road coaches. metropolitan buses, so passengers using the app showcase some of our achievements over of the projects we deliver and the importance of All Transperth and Transwa services, information, can tell when their bus is due to arrive and where the past 12 months. continuing to work together as a portfolio. infrastructure and ticketing systems are designed it is on its journey. Investment drives jobs and opportunities for all I look forward to what I’m sure will be another or are being progressively upgraded to meet the Western Australians, and allows us to focus effort There’s no doubt the app served customers well productive year for transport in WA in 2019-20. needs of all community members as we strive to on things that are very important to the PTA and during the AFL season, with Transperth carrying ensure we provide services to WA’s diverse the Transport Portfolio – putting community 182 per cent more passengers on match day, community in a fair and non-discriminatory manner. outcomes front and centre. since the move to Optus Stadium. This year It’s not just the physical infrastructure that marked the first anniversary of the opening of The transformative Forrestfield-Airport Link facilitates these journeys; it’s also our staff. Optus Stadium and showed what our public project has set new standards for real targets in Passionate, driven and highly capable, PTA staff transport system is truly capable of. Optus Aboriginal employment and spend with Aboriginal work tirelessly to improve the experience for Stadium attendees boarded Transperth bus Richard Sellers business, with 62 Aboriginal employees engaged passengers whether on our networks or behind and train services more than 2.8 million times Chief Executive Officer and $13.4 million worth of contracts already the scenes. This is evident in the results from the in the first year, with about 76 per cent of all awarded to Aboriginal businesses. These results, 2019 Transperth and Transwa passenger event attendees using a bus or train as part combined with the long-term commitment to satisfaction surveys, and again supported by the of their visit. embed genuine engagement with the Aboriginal national consumer research company, Canstar, community as part of the project, are testament While taking a train or bus to a special event is declaring the Transperth train system the best in to the PTA’s efforts and I am enthusiastic about growing in popularity, the PTA also turned its Australia for the sixth consecutive survey over the opportunity to set new benchmarks as work focus to increasing patronage more generally. eight years. progresses. A new campaign was launched to attract new and lapsed users to consider public transport in the mix of their transport options.

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Transwa’s PSM also returned some gratifying The Rail Extension and Thornlie- satisfaction ratings, though patronage was Cockburn Link projects are also progressing. In Managing Director’s overview affected by the train being taken April this year, it was revealed that two offline for a prolonged period for a necessary construction consortiums had progressed to the maintenance intervention. Another challenge has next stage of the tender process for the projects’ been track access difficulties, specially on the construction, to be delivered in one package as In last year’s annual report I said that, though our patronage figures - the yardstick by Eastern Goldfields Rail line, during works to part of a bundled competitive alliance model. which public transport organisations are primarily judged - had not gone up, we were upgrade the line. They are currently developing detailed bids; we expect to award a contract late this year. hopeful that the recent slide had been arrested. The other side of our business, building and infrastructure activity, grew significantly (as did Other big projects still in the initial stages (and This proved to be so. I am pleased to report that They will have found that public transport is employee numbers) as METRONET projects upon which significant early work has already patronage has risen for the first time since 2014- actually great - we achieve our KPI of clearing progressed from the planning stage and flowed taken place in some cases) include the 15, adding more than 1.6 million to 141,454,423 the stadium precinct in an hour or quicker; even through to the PTA for delivery. acquisition of 246 new electric , new in 2018-19. Though it’s only a tick over one per with maximum-capacity crowds - so that they diesel railcars to replace the Australind, and In last year’s overview, I said the Forrestfield- cent higher than 2017-18, we’ll gladly take it are more likely to try regular mid-week services construction of a manufacturing facility at Airport Link was well advanced, and that – it’s the best increase since 2012-13, when as well. Bellevue; upgrade of Bayswater Station (to procurement would start in 2018-19 for both the patronage hit a record 149.7m after a 10-year, accommodate FAL and the Morley-Ellenbrook Interestingly, about twice as many people use Yanchep Rail Extension and the Thornlie- 65 per cent upsurge. Line as they join the existing Midland Line); the our special-event buses to the stadium than Cockburn Link. This was not all down to Optus Stadium. Though was originally planned. The city shuttle and the Radio Systems Replacement Project; and services to the new venue - which opened original eight suburban bus routes - from FAL is progressing, though due to well- removal of the first of a series of level crossings, officially in January 2018 - gave us a shot in the Karrinyup, Mirrabooka, Morley, Ellenbrook, documented issues in the year under review, the at Denny Avenue (Armadale Line). line is now not expected to be operational until arm, our numbers finished in the black even Canning Vale, Curtin, Hamilton Hill and Fremantle The State Budget in May outlined the task ahead the latter half of 2021. without taking stadium patrons into account. - were so successful in calendar 2018 that we of us: a record $4.1b investment for METRONET added a ninth (Kalamunda) at the beginning of Our public transport system is something of a These included: over the forward estimates, including $334.2m for the 2019 football season. canary in the WA economic coal mine. The • Safety incidents, including a serious injury to a the railcar acquisition program. On top of this, we patronage downturn that started in 2012-13 We have also moved from the original plan to worker in July 2018. The PTA has monitored will be spending a further $30m-plus in the next reflected - among other things - the downturn have the city shuttle drop patrons at the compliance and worked closely with the financial year on updating SmartRider, final works in the economy after the end of the resources Matagarup Bridge, instead retaining the contractor to improve safety procedures and at the stadium, and a multi-storey car park at boom, specifically a sharp drop in CBD jobs. “temporary” arrangement (originally adopted processes on the project. Station. So, with “green shoots” appearing on the when the bridge was delayed) of dropping • In September a major sinkhole developed in It will be an interesting and very busy year. economic landscape, we would expect an patrons to the stadium bus hub and adapting the Dundas Road following a water leak in a upturn in passenger numbers. Matagarup stands in East Perth to be used as an cross-passage being constructed between additional site for on-demand drop-off and Another factor is the Transperth patronage the tunnels. Nobody was hurt in the incident, pick-up. campaign launched earlier this year, with the which led to delays and to a review and message - “Take a break from driving, try a bus We believe those who have tried our regular reassessment of the contractor’s processes or train instead”. services will also have had a good experience, for the construction of cross-passages with our services continuing to be very well-rated. - well-known as one of the high-risk parts The trains and buses to the stadium have Mark Burgess Early in 2019, dominated of tunnel work. increased our pool of users. The stadium was Managing Director Canstar Blue’s national urban rail ratings for the always planned to be dependent on public • In January, the tunnel boring machines (TBMs) sixth consecutive survey (held over the past eight transport as the primary means of access. stopped again due to mechanical issues. years). This is backed up by Transperth’s own The stadium’s popularity, boosted by the good Repairs were carried out successfully on TBM Passenger Satisfaction Monitor, an annual survey fortune of one of our local AFL teams plus some Grace, which left Redcliffe on the last stage of of more than 4000 regular customers, which this other successful special events, has given tens its journey to Bayswater just before the end of year found record levels of satisfaction across of thousands of people who may not have the year under review. TBM Sandy was due to the board. caught a bus or train since their school days follow suit early in the current year. (or ever) the opportunity to try our services to get to and from their event.

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The PTA is responsible for the operation of all bus, train and ferry public transport services in the greater metropolitan area under the Transperth brand. We operate 1. Corporate snapshot public transport services in regional centres under the TransRegional brand; road coach and rail passenger services to regional areas under the Transwa brand; and administer and manage School Bus Services.

In addition to operating these transport services, we design, build and maintain public transport infrastructure and protect the long-term viability of Western Australia’s rail corridor and railway infrastructure. We deliver public transport services seven days a week and in some cases, deliver supporting services up to 24 hours a day

1.1 Organisational profile Key Result Areas We have five KRAs (Key Result Areas) to ensure Corporate plan we are focussed on realising our vision: Vision 1. Improve system and service resilience To be recognised as a leader in providing world- through the strategic management of all class public transport services and solutions. critical assets.

Purpose 2. Secure a workforce with the right capabilities and attitudes. To provide safe, customer-focussed, integrated and efficient transport services. 3. Provide public transport services that meet community demand and customer Values expectations. Our values guide our efforts to create the organisation and workforce we need to meet 4. Make strategic and timely decisions through current and future challenges. the use of integrated information and knowledge management systems. Safety. We are committed to safety and protecting your future. 5. Apply communication strategies to improve patronage and increase customer satisfaction. Respect. We value and respect our customers, suppliers and each other.

Recognition. We recognise each other for achievement, initiative and innovation.

Integrity. We are honest and ethical. Sustainability. We consider the long-term impact of everything we do – economic, social and environmental.

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Customer Service Charter Under an internal service-level agreement, Corporate services (TTO) is The PTA is a customer service-oriented Transperth Train Operations Our divisions – Finance and Contracts (F&C), People and Organisational Development (POD), responsible for the operation, security, railcar organisation, responsible for the delivery of Safety, Freight and Business Management Systems (SFBMS), and the Corporate Communications, efficient and sustainable passenger transport maintenance, and management of the urban rail Corporate Issues, General Counsel and Investigations branches – provide a range of professional passenger system. services to the public: services and administrative support to facilitate the work of the PTA. • We are committed to providing a quality Transwa passenger transport service to the public. The division operates four rail services • Our bus, train and ferry staff and contractors Transwa (Australind, Prospector, MerredinLink and Our Executive - Organisational chart are focussed on delivering safe and reliable AvonLink) and a fleet of 23 coaches to regional services. WA. We service more than 240 locations. General Counsel Corporate Communications • Our staff and contractors will treat customers David Hynes in a respectful and professional manner. TransRegional Director • Our buses, trains, ferries and facilities will be Our small Regional Town Bus Services clean and well presented. Director, Finance and Contracts (RTBS) branch manages contracted intra-town Integrity and Jeffrey Steedman • Current information about all PTA services will be and inter-town bus services operating as Investigation Executive Director available from customer service staff, brochures, TransRegional in regional centres around timetables, our call centres and our website. the State. Infrastructure Planning Manager and Land Services • We will plan and review passenger transport Owen Thomas Chief Corporate Issues services in consultation with the community Executive Director School Bus Services Executive Managing to get the best results. The (SBS) branch plans Officer Director School Bus Services Mark Burgess • We will plan and provide transport systems school services in WA and contract-manages Richard Sellers Executive Officer Major Projects Unit that respect the environment and improve their delivery by contracted school bus operators. to Managing Director Ross Hamilton sustainability. SBS manages more than 960 school bus Executive Director services around WA. To help us improve our services we maintain Network and Infrastructure a telephone InfoLine (13 62 13) for feedback. Richard Wales Infrastructure delivery General Manager Our websites include www.pta.wa.gov.au, and We are also responsible for designing, building www.transperth.wa.gov.au People and Organisational www.transwa.wa.gov.au and maintaining transport infrastructure in WA. Development Our (N&I) division Brian Appleby Network and Infrastructure Executive Director manages, maintains and upgrades the 1.2 Organisational structure metropolitan railway infrastructure. Safety, Freight and Business Management Systems. Our Service provision Safety, Freight and Business David Browne Management Systems (SFBMS) division, Executive Director We operate four major service systems: previously Safety and Strategy, is responsible for the organisation’s rail safety accreditation, freight Transperth System, Regional Transperth network obligations, and ensures that the PTA and School Bus Services Martin White The Transperth integrated public transport complies with its legislative requirements. It also Executive Director network is centrally-controlled, planned, protects the long-term viability of the State’s marketed and coordinated by the Transperth freight rail corridor and infrastructure, with input Transperth Train Operations division of the PTA. Transperth has a range of also from N&I and our Elwyn Gearon Infrastructure Planning General Manager contracted service providers including three and Land Services (IPLS) division. contracted bus companies, one contracted ferry IPLS provides railway engineering support, and Transwa operator and numerous ancillary contracts such land and environmental management. Most Tim Woolerson as customer service, cleaning, maintenance, major new infrastructure is planned by IPLS, with General Manager signage, ticketing and security. the actual construction carried out through our Major Projects Unit (MPU).

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1.3 Cases in point: 2019 spotlight

Specialist METRONET Transwa Working Getting team for connecting PTA wins OTTER towards passengers special with the with water on display reconciliation on board students community

Within the School Bus METRONET is helping Transwa road coach The PTA is contributing Transperth’s education The PTA was named the Services branch there to shape how future passengers now have to reconciliation in an program, Get on Board, 2019 Platinum Waterwise is a team dedicated to generations in Perth the convenience of effort to close the gap empowers community Business – an award making sure that the choose to travel, where up-to-date arrival and between Aboriginal and groups with the skills, that recognises ongoing state’s special needs to work and how they departure information non-Aboriginal Australians knowledge and confidence commitment to water students make it to want to live. available on-screen at the through measurable actions to travel on Perth’s public efficiency and water use school on time. . that support relationships, transport system. improvements. foster respect and provide opportunities.

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1.4 Financials at a glance During the financial year 2018-19, we delivered public transport services to the people of Western Australia at a cost of $1477 million. The following graphs below show how these funds were spent across each service.

Expenditure by service $ million % Transperth metropolitan bus and ferry operations 535.904 36 Transperth train operations 593.761 40 Regional bus operations 18.498 1 Country passenger rail and road coach services 52.195 4 Regional school bus services 127.585 9 Rail corridor and residual freight issues 149.004 10

1476.947

Expenditure by type $ million % Employee benefits expense 195.266 13 Supplies, services and energy 286.099 20 Depreciation and amortisation 369.050 25 Finance costs 89.037 6 Bus, ferry and regional bus operators 416.808 28 School bus operators 120.687 8

1476.947

Revenue and funding sources $ million % State 830.913 74 User charges and fees 229.630 21 Other income 55.575 5

1116.118

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A 2018-19 summary of our performance in providing safe, customer-focussed, 2. Operational report integrated and efficient transport services.

2.1 Our services – fleet, patronage, reliability, Fleet capacity and key operational activities. Trains 2.2 Fares and other revenue – overview of TTO operates more than 1085 services on an revenue and expenditure. average weekday and 6852 services weekly (Armadale/Thornlie lines 1827; Fremantle 1020; 2.3 PTA in the community – our commitment to providing satisfactory, safe, well- 1502; Midland 998; and Mandurah communicated and sustainable operations. 1505). At June 30, the fleet consisted of 330 railcars (48 two-car A-Series and 78 three-car – planning, projects, 2.4 Infrastructure delivery B-Series railcar sets) that can be coupled in sets maintenance, upgrades and asset management. of four-car or six-car trains. – overview of our workforce and 2.5 Our people The system covers 180.8km of track with our strategy for developing, attracting and 72 stations on five lines: Joondalup (40.9km); retaining employees. Fremantle (19km); Midland (16km); Armadale/ A detailed overview of our targets and performance Thornlie (30.5km and a 3km spur line to is available in the key performance indicators. Thornlie); and Mandurah (71.4km). Buses 2.1 Our services Transperth operates 1484 buses, consisting of 994 diesel buses (including 870 buses delivered 2.1.1 Metro (Transperth) under a Volvo contract) and 490 compressed natural gas (CNG) buses. The number of diesel Transperth is the brand and operating name of the buses increased by 2.37 per cent; CNG bus public transport system in the greater Perth numbers reduced by 4.3 per cent. The existing metropolitan area. Volvo contract will deliver 911 new diesel buses The Transperth system consists of a bus network, a over a nine year period. fully-electrified urban train system and a ferry Within the fleet, 873 buses conform to Euro5 service. It is managed by our Transperth branch and Euro6 emission standards equating to and covers key functions such as system planning, 59 per cent of the total, with 480 buses bus service delivery, bus service security, passenger conforming to Euro4 (32.3 per cent). The other information services, ticketing and bus fleet 131 buses conform to Euro2. procurement. Transperth buses covered 281 standard Passenger information comprising InfoCentre, timetabled bus routes, 291 school routes and ten InfoLine and customer feedback services are Central Area Transit (CAT) routes. On a typical provided under contract by Serco. weekday this involved operating 15,657 standard service trips, 289 school service trips and 996 CAT service trips.

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During Optus Stadium events up to ten extra Total initial boardings – cash and SmartRider Trains Buses special event routes are activated, delivering initial boardings plus free travel on Free Transit Total boardings on trains increased by 1.6 per Total boardings on Transperth buses increased 643 trips. Zone (FTZ) services, on CAT services in Perth, cent (up 0.8 per cent in 2017-18). Cash and 0.9 per cent (down 1.8 per cent in 2017-18). Fremantle and Joondalup and on the Midland SmartRider initial boardings increased 2.0 per Cash and SmartRider initial boardings increased The Transperth bus network is divided into Shuttle service. cent (previously up 2.9 per cent), and fare-paying 2.0 per cent (previously down 1.1 per cent), and 11 geographic contract areas which are boardings recorded a 1.9 per cent increase fare-paying boardings increased 2.0 per cent periodically subject to tender. As at June 30, – total initial boardings plus Total boardings (previously up 2.8 per cent). (previously down 1.3 per cent). three contractors operated our bus services: transfer boardings. Transperth train patronage (millions) – Kalamunda and Morley. *Free travel on SmartRider refers to free travel by Transperth bus patronage (millions) Path Transit Fare-paying boardings WA seniors, aged and disability pensioners, and Fare-paying boardings – Canning, Claremont, Marmion, carers on: weekdays before 6am, from 9am to Midland (including Midland Shuttle), and 2018-19 37.435 2018-19 40.676 3.30pm, and after 7pm; and all day on weekends Southern River. and public holidays. It also includes all-day free 2017-18 36.737 2017-18 39.892 – Fremantle (including Fremantle Transdev travel by veterans. 2016-17 35.72 2016-17 40.414 CAT), Joondalup (including Joondalup CAT), Transperth patronage improved across all Rockingham-Mandurah, and the Perth CAT Cash and SmartRider initial boardings categories in 2018-19 as follows: Cash and SmartRider initial boardings contract. 2018-19 39.730 2018-19 44.402 Ferries Categories 2017-18 2018-19 Change Two ferries (MV Phillip Pendal and MV Shelley Total boardings 139.847m 141.454m 1.1% 2017-18 38.947* 2017-18 43.550 Taylor-Smith) operate the Transperth ferry service Total initial boardings 98.083m 99.392m 1.3% 2016-17 37.861 2016-17 44.028 between the city (Elizabeth Quay) and South Cash and SmartRider 82.941m* 84.535m 1.9% Perth (Mends Street). The service is provided initial boardings Total boardings Total boardings under contract by Captain Cook Cruises. Fare-paying boardings 77.032m 78.477m 1.9% 2018-19 61.540 2018-19 79.267 The ferry service operates a high frequency *Amended from 2017-18 annual report 2017-18 60.600 2017-18 78.541 summer timetable and lower frequency winter The small improvement in overall patronage timetable in reflection of the lower tourism and 2016-17 60.092 2016-17 80.017 slightly outpaced estimated population growth general usage during winter. The summer and resulted in the per-capita public transport * Amended from 2017-18 annual report Bus total boardings per service kilometre timetable included 122 trips a day Monday to usage within the Perth metropolitan area remained stable at 1.14. Thursday, 134 trips on Friday, 118 trips on (including the City of Mandurah) increasing to On a per-service kilometre basis, total train Saturday and 104 trips on Sunday/public 48.0 initial boardings (previously 47.8). boardings increased to 2.81 (up 0.4 per cent). holidays. The winter timetable included 60 trips a day Monday to Friday and 56 trips on weekends The factors contributing to improved boardings Total boardings by line were: and public holidays. compared to prior years include: Line 2017-18 2018-19 Change The trip length from Elizabeth Quay to South • Continued strong Optus Stadium event activity Armadale Line 7.736m 7.983m 3.2% Perth is 1.47km. – accounting for 2.446m boardings in 2018-19. Fremantle Line 7.694m 7.477m -2.8% • Transperth’s large-scale behaviour change Joondalup Line 16.477m 16.532m 0.3% Patronage campaign designed to increase patronage Mandurah Line 20.546m 20.901m 1.7% which ran from February to May 2019. Patronage by mode is reported in four Midland Line 5.784m 5.994m 3.6% categories: • Improvements in commuter activity across the Total 58.237m 58.887m 1.1% Transperth network. Fare-paying boardings – cash and paid Note: Excludes boardings on special event • Continued growth on high frequency SmartRider initial boardings and special services, free travel on special occasions and bus services. event boardings. boardings on rail replacement services provided by buses, which are not reported by line. Cash and SmartRider initial boardings – fare-paying boardings plus free travel on The reduction in Fremantle Line boardings is SmartRider*. attributed to continued weakness in commuter activity on this line.

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Total boardings by contract area were: With the opening of the Elizabeth Quay Jetty All modes exceeded their targets in 2018-19 with • Implemented timetable improvements across on 31 January 2016, patronage increased buses at 85.3 per cent, trains at 96.3 per cent the bus network to improve service reliability. Contract area 2017-18 2018-19 Change significantly to levels not seen since the formation and ferries at 96.8 per cent. • Increased the number of services operating on Kalamunda 7.074m 7.174m 1.4% of the PTA. During 2017-18 and again in 2018-19 routes 97, 103 and 998/999 to better serve Morley 10.844m 10.814m -0.3% patronage softened from the record high set in Capacity QEII Medical Centre, the UWA precinct and the Canning 7.554m 7.809m 3.4% 2016-17. The carrying capacity of the Transperth bus, train new Perth Children’s Hospital. Claremont 4.036m 4.121m 2.1% Total boardings decreased by 8.2 per cent and ferry network is measured by a metric called • Opened the refurbished Redcliffe Depot and Marmion 6.849m 7.128m 4.1% (previously down 5.6 per cent). Cash and passenger place kilometres. This is based on commenced construction of Brockway Depot. Midland 2.439m 2.547m 4.4% SmartRider initial boardings decreased 9.1 per service kilometres and the average carrying Southern River 3.608m 3.632m 0.7% • Commenced trials of: cent (previously down 4.0 per cent), and fare- capacity of the fleet, and has been increasing Fremantle 8.531m 8.607m 0.9% • New Route 354 between Mirrabooka Bus paying boardings decreased by 9.2 per cent steadily in recent years as new buses and trains Joondalup 6.651m 6.577m -1.1% Station and Dog Swamp Shopping Centre. (previously down 3.9 per cent). come on stream and the network expands. Rockingham 5.709m 5.670m -0.7% • Route 387 weekend services between Although total boardings have decreased 13.7 On this basis, total capacity on the Transperth Total 63.295m 64.081m 1.2% Warwick Station and Balcatta. per cent since the record high of 2016-17, they system increased 1.2 per cent. Train capacity Note: Excludes boardings on special event • As part of the Bus Priority Program, continued remain 18.9 per cent above the pre-Elizabeth rose 1.3 per cent, bus rose 1.1 per cent, and services, free travel on special occasions and to address the impact of road congestion Quay high of 2006-07 and 64.3 above the ferry rose 0.4 per cent. boardings on FTZ and CAT services. (particularly in peak periods) on bus service 2014-15 record low during Quay construction. reliability and patronage: Ferries Key activities Ferry total boardings per service kilometre • Completion of the Craig Street bus priority The ferry service represents a small proportion decreased 8.5 per cent to 11.8. Transperth System lane and bus-only right hand turn enabling of Transperth system patronage (0.5 per cent). • Launched the second version of the Transperth improved access to Great Eastern Hwy Fluctuations in the tourism market have a significant Reliability App which provided integration of live bus, • Completion of the Ranford Road bus impact on ferry boardings with tourists Transperth reliability targets train and ferry tracking and updates to My priority lanes (Stage 4) between South accounting for about half. Account, allowing users to manage SmartRider • – 95 per cent of services to arrive within Street and . Transperth ferry patronage (millions) Trains and My Alerts. four minutes of schedule. Trains Fare-paying boardings • Ran a large-scale behaviour change • – 85 per cent of services to arrive at • Completed a year of Optus Stadium Buses campaign to increase patronage on the 2018-19 0.366 the timing point within four minutes of schedule operations including first cricket season. Transperth network. and never leave a terminus, or travel through a 2017-18 0.403 • Successfully completed Enterprise Bargaining mid-way timing point early. Buses Agreement (EBA) negotiations for customer 2016-17 0.420 • Awarded new bus supply contract to Volvo • Ferries – 96 per cent of services to arrive service staff and railcar drivers. Bus Australia for the manufacture and supply Cash and SmartRider initial boardings within three minutes of schedule. • C-Series METRONET railcar procurement of up to 900 buses to the PTA over a ten year tender progressed and is now closed. 2018-19 0.403 Transperth uses technology-based monitoring period, with new bus deliveries commencing • Took delivery of ten three-car B-Series railcar methods which allow precise data-gathering to October 2019. 2017-18 0.444 sets for FAL project and completed installation measure on-time running (OTR). On bus and ferry • Opened Curtin Central Bus Station, improving of platform detection system on B-Series 2016-17 0.462 services, OTR is measured using the GPS access to Curtin University and the railcars. information functions in SmartRider; the train surrounding area. Total boardings • Finalised TTO Safety Management Plan. control system is used to measure train OTR. • Progressed the rollout of Real-Time Tracking 2018-19 0.648 Bus on-time performance is monitored through System (RTTS) and Dynamic Stand Ferry a random sample of one per cent of trips in each Management System (DSMS). • Extended Elizabeth Quay Jetty. 2017-18 0.706 bus contract area. GPS-based information and 2016-17 0.748 boardings data from SmartRider help to identify under-performing services which can be re-scheduled to improve performance.

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Case Study Transwa OTTER on display

Transwa road coach passengers now have the Now, with a single update into OTTER using a convenience of up-to-date arrival and departure tablet or computer, staff and systems are information available on-screen at the Public immediately updated, including the digital display Transport Centre (PTC). The displays are the at PTC. This data can now also form the basis for customer-facing side of our new On-Time additional reporting and statistics that were Tracking and Electronic Reporting system previously unavailable. (OTTER for short), developed by PTA’s N&I staff in collaboration with Transwa. Future updates: • The OTTER system allows for future upgrades, The new system isn’t only an improvement for including real-time GPS tracking or sending passengers, it’s making life easier for staff too. delay notifications to passengers via SMS After being in production and testing for the past 12 months, OTTER replaces the manual • Similar screens will be installed at Kalgoorlie processes that Transwa staff were using to report and Bunbury stations, with other regional the on-time running (OTR) status of each service. stations to follow Previously, reporting OTR was a labour intensive • The Transwa website will be updated with an activity, arrivals, departures and delays had to be on-time running display manually recorded with pen and paper, before sending an email to relevant staff and stations, and then typing it into the old reporting system.

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Looking ahead 2.1.2 Regional (Transwa) The fleet consists of 23 Volvo/Irizar road coaches Transwa Road Coach Patronage Transwa is the brand and operating name for the which are in their third year of service. The Transperth System vehicles are fully accessible and meet the Euro5 2018-19 183,009 • Progress work on the SmartRider upgrade road coach and rail public transport system serving regional centres. emission standard. Some of the features of the 2017-18 181,522 project to deliver a second generation ticketing road coaches include: system. Our Transwa network extends to Kalbarri and 2016-17 176,564 • Onboard toilet • Implement significant changes to bus and train Meekatharra in the north, east to Kalgoorlie, and services across the Transperth network from south-east to Esperance. The services link 240 • Onboard entertainment system with individual The largest increase in patronage when compared 21 July 2019 to improve service delivery and to regional locations to the Perth metropolitan area, sound controls to the previous financial year was recorded on the prepare for the future Forrestfield-Airport train and locations in between. • USB charging points at each seat Perth to Pemberton, via Bunbury, route. Perth to Augusta has also recorded increasing patronage line. • CCTV camera and recording security system Fleet over the past three financial years. Buses Patronage The largest patronage decrease was recorded • During 2018-19, a significant tender was Trains on the Bunbury to Albany via Pemberton prepared and issued for the right to operate Transwa employs 20 railcar drivers based at East Trains and Northcliffe. Transperth bus services in the contract areas Perth and Bunbury to operate 14 railcars under Regional train patronage decreased by 3.04 per of Claremont, Marmion and Joondalup for ten four distinct services: cent in comparison to the previous financial year. years, representing about 27 per cent of the Reliability • - a daily service (and twice This was largely attributable to a decline in Transperth bus network. The new contracts The Prospector on Mondays and Fridays) each way between Australind patronage (6767 patrons) due to the Transwa reliability targets will commence operation in January 2020. Perth (East Perth terminal) and Kalgoorlie for a three month period where the Australind fleet The key performance indicator for service • Open the Henley Brook Bus Station in late 2019. total of 18 services a week. was inoperable, due to various serviceability reliability is on-time running. The 2018-19 • Finalise the implementation of Traffic Signal issues with the railcar fleet. OTR targets were: • The Australind - two daily return services Priority system to enable late-running buses to between Bunbury and Perth for a total of 28 Excessive journey delays caused by third-party • Prospector - 80 per cent to arrive within receive green light traffic signal priority. services a week. track works have also contributed to the decline 15 minutes of schedule • Continue improving Transperth bus depot in patronage. • The AvonLink - an early-morning weekday • Australind - 90 per cent (10min) assets, including: open the new Mt Claremont service (except public holidays) from Northam Transwa train patronage • AvonLink - 90 per cent (10min) depot; redevelop Rockingham depot; and to Midland, returning early each evening, for a construct a new depot at Pinjarra. • MerredinLink - 90 per cent (10min) total of ten services a week. 2018-19 83,159 • Complete Bus Priority improvements on • Road Coaches - 95 per cent (10min) • The MerredinLink - an all-stop return service Riverside Drive at the west end of the Australind 2017-18 89,926 between Perth (East Perth terminal) and The Prospector and the MerredinLink on-time causeway. 2016-17 89,984 Merredin on a Monday, Wednesday and Friday running increased from 2017-18, however were (except public holidays) for a total of six Trains 2018-19 85,952 still recorded as 29 per cent and 5 per cent • Award contract for METRONET C-Series services a week. respectively (below the reliability targets). Delays Prospector 2017-18 86,151 railcars and commence construction of The Australind train onboard services are were largely attributed to track works and Bellevue Railcar assembly facility. provided by Bunbury-based Transwa staff, while 2016-17 87,257 crossings with other trains on the Eastern a contractor provides onboard services on the • Review current structures to ensure our 2018-19 9,752 Goldfields Railway, which are managed by preparedness for future network expansion. Prospector, AvonLink and MerredinLink trains. the third-party infrastructure operator. AvonLink 2017-18 9,539 • Assist POD with Train Control training update Road coaches The Australind’s performance increased from 2016-17 19,380 to Certificate IV in Network Control and Transwa road coaches operate 130 services 2017-18 and was above the reliability target, sitting contribute to the Safeworking Improvement each week, employing 36 Road Coach 2018-19 6,958 at 91 per cent for 2018-19. The delays can be Program. Operators for the fleet of five-star, luxury road attributed to a number of causes, including delays 2017-18 6,028 • Manage Claremont closures in conjunction coaches. MerredinLink experienced while crossing other services on the with N&I to minimise impacts for passengers in 2016-17 2,679 South West main and a high number of mechanical single line operations. faults associated with the aging railcar fleet. Road coaches • Implement changes resulting from ONRSR Both the road coach and AvonLink services Transwa road coach patronage has increased by Risk Management audit. performed well with on-time running statistics of 0.82 per cent compared to the previous year. Ferry 96 and 98 per cent respectively for 2018-19. • Commission a new ferry.

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Transwa On-Time Running Performance Key activities 2.1.3 Regional (TransRegional) TransRegional *OTR performance (per cent)

• Work to improve disability access on the 2018-19 2018-19 96% 80.73 Eastern Goldfields Railway and South West Road 2017-18 97% Main was completed with the construction of 2017-18 71.67 Coaches 2016-17 97% high level platforms at Carrabin and Yarloop. The TransRegional Fleet is 100% 2016-17 68.86 • Introduced EFTPOS to the Australind fleet for PTA owned and fully accessible. *SmartRider towns only 2018-19 57% buffet and ticket sales and commenced a trial Prospector 2017-18 50% on the Prospector service, with the intent to In towns where the SmartRider system is used the OTR performance increased from 72 per cent 2016-17 36% implement across the fleet in the second half Under the TransRegional brand, our Regional in 2017-18 to 81 per cent in 2018-19. of 2019. Town Bus Services (RTBS) branch manages 2018-19 98% • Introduced the On-Time Tracking and Trans-branded school and town public bus Capacity AvonLink 2017-18 98% Electronic Reporting (OTTER) which replaces services in 14 major regional towns in rural WA, TransRegional operated 4.3 million kilometres 2016-17 70% the manual system for communicating the as well as seven inter-town regional bus services on-time running status of services to staff. – four in the Pilbara and one each in the in 2018-19. 2018-19 85% • Commenced a project to investigate improving Gascoyne, Goldfields and Mid-West regions. MerredinLink 2017-18 79% the running time of the Australind service on Key activities the South West Main. 2016-17 57% Fleet • Reviewed the Albany network and conducted RTBS utilises a total fleet of 154 low-floor extensive community consultation process for 2018-19 91% Looking ahead accessible buses, all of which are PTA owned. planned service changes. The review involved Australind 2017-18 83% network enhancements and significant route • Improve disability access on the South West changes. 2016-17 88% Main and the Eastern Goldfields Railway by Patronage • Implemented trial services in Port Hedland delivering two high-level platforms at North Total TransRegional boardings decreased by 1.4 and Busselton. Capacity Dandalup and Cookernup, and commence per cent to 2.242 million and total fare-paying The number of passengers per service kilometre is planning for the construction of a second boardings decreased 3.6 per cent to 1.960m. • Implemented fare paying school services in Bridgetown. a comparative measure of our available passenger high-level platform at Merredin. The breakdown is as follows: capacity (a higher number represents better • Investigate the Country Age Pension Fuel Card • Tendered the bus operation contract utilisation of our capacity). scheme as a payment method for Transwa Service 2017-18 2018-19 Change for TransGeraldton services Mechanical issues on the Australind fleet have tickets. Intra-Town • Upgraded the Geraldton, Bunbury negatively impacted rail patronage, resulting in a • Implement procedural and system changes to Total 2.246m 2.215m -1.4% and Carnarvon bus fleet. boardings decrease in the rail passengers per service kilometre. maintain the Pensioner Free Travel Scheme • Completed significant upgrades to the following discontinuation of paper vouchers Fare-paying 2.007m 1.935m -3.6% Busselton and Bunbury depots. Road passengers per service kilometre remain boardings previously issued by Department of Human • Continued to upgrade the regional fleet consistent with 2017-18 results, with improved Inter-Town Services and Department of Veteran Affairs. through the bus refurbishment program. patronage numbers due to the new road coach Total 28,810 26,701 -7.3% fleet and enhanced marketing activities. boardings Fare-paying 27,477 25,319 -7.9% Looking ahead Transwa passengers per service kilometre boardings • Award the bus operation contract for 0.184 TransGeraldton, commencing January 2020. 2018-19 Reliability 0.059 • Implement further service changes in Albany Some regional towns do not have the SmartRider 0.189 and Karratha. 2017-18 ticketing system; therefore On-time Running • Planned community consultation in Busselton 0.059 (OTR) is difficult to measure across all the and Dunsborough. 0.202 TransRegional services. 2016-17 • Complete the bus refurbishment program 0.057 for the regional fleet.

Rail Road • Continue the bus stop upgrade program in various regional towns.

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Case Study Specialist team for special students

Within the School Bus Services branch there is a Key facts: team dedicated to making sure that the state’s • The contract SBS network consists of special needs students make it to school on time. 964 buses. The free service currently supports students • About 530 schools are serviced across who require additional assistance, including the State communities’ free travel to and those with intellectual disabilities, those travelling from school. in wheelchairs and others with high needs. Students are transported between their home • On average, 25,664 regional and special and school, with pickups scheduled across the education students are carried each way, metropolitan area - from Bullsbrook and Yanchep each school day (about 9.8 million trips a year). to as far south as Dawesville and Pinjarra. • Total daily network coverage averages A lifeline for many families, the service offers 171,988 km. specially modified buses that offer safe and • Total annual network coverage about 33.02 comfortable travel, including dedicated drivers million kilometres across the school bus fleet. and bus aides. The service also offers a feeling of independence and community for students on their way to and from school. One of the biggest improvements to the fleet has been the introduction of low-floor wheelchair buses. These are great for students who are able to independently board and disembark, as well as other students who may have trouble manoeuvring on stairs. Another five of these low-floor buses have been ordered and will be introduced in the coming year.

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2.1.4 School Bus Services Tendered Contract Model school bus contracts The number of new services was offset by the In the core business group, an average total of (Ten year contract term) - one contract, cessation of the following existing contract 24,828 students accessed school bus transport Services 20 services. services: assistance (2.9 per cent fewer than in 2017-18). The School Bus Services (SBS) branch manages the policy and entitlement framework, delivers DoE funded cluster contracts Region 2018-19 contract services The student placement programs on DoE funded system support and administered the contract Four contracts, 50 services. Metropolitan Eastern Hills Chidlow services are administered by DoE. Dynamics Joondalup ESC such as the immigration intake quotas and arrangements for 914 contract school bus During 2018-19 SBS initiated the following new Kalamunda ESC North federal funding provisions are all contributing services around WA. fixed-term and re-tendered contract services Mirrabooka IEC Bus No. 5 factors to the variations in student numbers across WA: Nollamara IEC Bus No. 3 These buses provide access to school for experienced to date. students in rural areas (picking them up from the Nollamara IEC Bus No. 4 Region 2018-19 contract services Riverside Coodanup During 2018-19 an average total of 836 students farm gate where appropriate), as well as access South East Metro LDC Kalamunda to schools in the metropolitan area for students Goldfields Esperance Scaddan South South East Metro LDC South Perth accessed these services (10.6 per cent fewer Hopetoun attending special education facilities. Peel Peel LDS Baldivis than in 2017-18). Great Southern Denmark Albany Rockingham SHS ESC Baldivis In addition to the orange contract school buses, The following table breaks down the 2018-19 Kimberley Binnu Barrel Wells Pilbara Cassia ESC there are four cluster contracts made up of 50 student patronage by region and group: Metropolitan Cloverdale ESC North South West Busselton Quedjinup contract school buses that are funded by the Cloverdale ESC South East Dardanup Pile Road Region Core DoE-funded Total Department of Education (DoE) and administered Kalamunda North ESC Bunbury Regional cluster contract Mandurah LDC North business service by SBS. These services do not form part of our Mandurah LDC South Wheatbelt Darkan South service patronage Student Transport Assistance Policy Framework Melville SHS ESC Immaculate Heart College North patronage Lake Grace North East (STAPF). Riverside Coodanup Gascoyne 106 - 106 Success Atwell ES Munster Merredin Kellerberrin Wheelchair Where eligible students cannot be Warnbro and Kanna ESC #2 Moorine Rock North Bodallin Goldfields 1082 120 1202 Southern Cross Bullfinch Esperance accommodated on a school bus, their parents/ Peel Peel LDS Baldivis Trayning Kununoppin carers are paid a conveyance allowance to offset Rockingham SHS ESC Baldivis Great 3163 - 3163 Pilbara Cassia ESC Southern the cost of getting their children to the nearest Pilbara Cassia ESC Kimberley 879 - 879 appropriate school. South West Brunswick Benger 37 Metropolitan 4243 642 4885 Brunswick Roelands 28 Patronage Fleet Bunbury Binningup 20 Mid-West 1404 - 1404 Bunbury ES Collie 43 Around WA, the services were accessed each Peel 1936 - 1936 The SBS network in 2018-19 consisted of 812 Bunbury ES Donnybrook 39 contract school buses catering for mainstream Bunbury ES Eaton school day by 25,664 students (3.1 per cent Pilbara 439 - 439 schools and 152 catering for special education Bunbury Regional TCM contract fewer than in 2017-18). South West 6990 74 7064 facilities. All contracted school buses are Busselton Yallingup Wheatbelt 4586 - 4586 Dardanup East The decrease in the number of eligible students operated by private contractors under the Harvey Agriculture Bunbury 30 receiving school bus transport assistance can be Total 24,828 836 25,664 following contract arrangements: Margaret River Cowaramup analysed by separating the data of the 964 Yallingup Steiner Eagle Bay contract school bus services into two distinct Evergreen Contract Model Wheatbelt Immaculate Heart groups: ECM contracts (five year contract term) – 687 College North contracts, 687 services. • Core business – the 914 orange school bus Composite Rate Model services around WA as well as the special CRM contracts (remaining balance of 20-30 education services in the metro area. contract term) – one contract, one service. • DoE-funded – the 50 services funded by Department of Education but contract- Fixed-term contracts managed by SBS outside of the STAPF, for (One to 15 year tendered term) – 168 contracts, students who qualify for assistance through 168 services. the Intensive English Centres and/or other Regional school bus cluster contracts language support programs. (15 year contract term) - four contracts, 38 services.

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Reliability The annual service kilometre data per region is 2.2 Fares and other revenue Note: The flat fare for school students ($0.70) is detailed below: available only through SmartRider. It is valid for all SBS reliability target 2.2.1 Metro travel on Transperth services from Monday to The reliability target is for the bus to arrive within Region 2017-18 2018-19 Change Friday from the first to the last gazetted school ten minutes before school starts and depart Total Total Transperth day of the year, during mid-year school term within ten minutes after school finishes. service km service km Transperth applies a common fare structure holidays and on public holidays that fall on a Our reliability measure covers regional Gascoyne 68,616 68,262 -0.5% across its integrated bus, train and ferry weekday during the school year. mainstream services and education-support Goldfields 1,927,674 1,981,948 2.8% service network. Esperance SmartRider and SmartParker school buses in the metropolitan area and is Fares are based on a zonal system with nine Great 3,752,081 3,748,341 -0.1% Discounts on cash fares are provided through the based on data provided by members of the concentric bands emanating from central Perth. Southern SmartRider system and are based on the reload public who report occurrences of late arrivals. Zone One is 8km; zones two and three are 9km, Kimberley 860,129 882,427 2.6% method used. A discount of 20 per cent is and zones four to nine are 10km or more. Bus Availability at Arrival/Departure Time (per cent). Metropolitan 5,621,807 5,646,700 0.4% available to users choosing Autoload through Mid-West 2,595,771 2,650,892 2.1% Fares are determined by the number of zones a direct debit or credit card, and a discount of ten 2018-19 99.89% Peel 2,171,205 2,125,750 -2.1% passenger travels in. A short distance fare is per cent is available to those who choose other 2017-18 99.65% Pilbara 680,999 667,280 -2.0% available for trips of up to 3.2km (two sections). reload methods (BPAY, add-value machines, on South West 6,255,957 6,221,168 -0.6% board bus and ferry, and at retail sales outlets 2016-17 99.22% School students pay a flat-fare for all travel during Wheatbelt 9,042,374 9,028,920 -0.1% the gazetted school year except on weekends. In and Transperth InfoCentres). To assist the public with the reporting process, Total 32,976,586 33,021,686 0.1% addition, there are multi-trip tickets for individuals The SmartRider system provides a complete and SBS has developed an extension to its web (DayRider) and groups (FamilyRider). accurate record of all SmartRider boardings portal to enable bus late arrivals to be recorded. The modest increase in the annual service Passengers are able to transfer between services because users are required to tag-on/tag-off at kilometres denotes that our contract school bus and modes without an extra charge within two smartcard processors on buses and ferries and Capacity services have maintained a relatively unchanged hours on journeys of up to four zones and within at train stations on each leg of their journey. Around WA, our services covered an average of position when compared to 2017-18, noting that three hours on journeys of five to nine zones. This SmartRider was used for 74.7 per cent of fare- 171,988 km each school day, totalling 33.02 there was one fewer service day in the year. free transfer facility is not available on the two- paying boardings in 2018-19 (previously million contract service kilometres for the year. Across the state, the Goldfields, Kimberley and section fare. 74.5 per cent) and accounted for 81.2 per cent Mid-West regions recorded increases of between School bus average daily service kilometres Ticketing facilities for passengers who choose to of SmartRider and cash ticket travel (excluding two and three per cent in service kilometres. (thousands) pay cash are provided through electronic ticket- joint ticketing), up from 80.7 per cent in 2017-18. However, a two per cent contraction was issuing machines (ETIMs) on all buses and ferries, SmartParker, which allows patrons to pay for 2018-19 172.0 recorded in the Peel and Pilbara regions. and ticket-vending machines (TVMs) at all train Transperth (train station) parking with their 2017-18 171.0 stations and ferry jetties. Key activities SmartRider, accounted for 89.1 per cent of all 2016-17 173.3 paid parking transactions, up from 88 per cent in Transperth cash fares schedule • The SBS network provided transport to 25,664 2017-18. Total usage of SmartRider for parking The following fares schedule was implemented students across the state which equates to 9.8 payment was 91.3 per cent - including usage of from July 1, 2018. million students being picked up and dropped Pay and Display devices. off in the year. Category Standard Concession • The PTA completed the re-tendering of the 2 Sections $2.20 $0.90 Bunbury Regional School Bus cluster contract 1 Zone $3.10 $1.30 encompassing 26 contract services. 2 Zones $4.80 $2.00 • The PTA commenced the program for the 3 Zones $5.60 $2.40 batch tendering of its fixed and short-term 4 Zones $6.70 $2.80 contracts of which there are in excess of 150 5 Zones $8.40 $3.50 contract services and involve an estimated 6 Zones $9.40 $4.00 3700 students. Across the regions, 69 per 7 Zones $11.10 $4.70 cent of the fixed and short-term contracts are 8 Zones $11.90 $5.00 located outside the metropolitan area. 9 Zones $12.80 $5.40 DayRider $12.80 $5.40 FamilyRider $12.80 –

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Patronage profile Revenue and expenditure Transperth system expenditure ($ millions) Transwa system expenditure ($ million) Total boardings category distribution remained Total system revenue, which includes Total expenditure largely unchanged in 2018-19 with a 0.4 increase income from fares, parking, advertising, rent, 52.20 2018-19 in special event boardings (to 2.4 per cent) offset infringements and miscellaneous items, rose 2018-19 1,122.615 53.40 by a 0.3 decrease in free travel (to 14.8 per cent) 4.5 per cent. 2017-18 1,074.338 and 0.1 per cent decrease in transfers (to 29.7 50.15 2017-18 per cent). Fare paying SmartRider and cash Transperth system revenue ($ millions) 2016-17 1,047.004 51.35 boardings remained unchanged at 53.1 per cent. Total revenue Operating expenditure 50.02 2016-17 Excluding special event boardings, standard fare 2018-19 243.643 49.92 passengers accounted for 50.6 per cent of cash 2018-19 808.151 2017-18 233.176 and paid SmartRider boardings (previously 50.1 Actual Budget 2017-18 769.407 per cent), concession passengers 32.1 per cent 2016-17 216.922 Expenditure increased by 4.19 per cent to (32.4 per cent) and school students 14.5 per 2016-17 743.869 Fare revenue $52.2m as the result of an accelerated railcar cent (14.7 per cent). Boardings on FamilyRider maintenance program combined with higher tickets contributed 2.6 per cent (2.5 per cent). 2018-19 214.147 fuel expense due to the cost of fuel. SmartRider users accounted for 82 per cent (81 2.2.2 Regional 2017-18 205.203 per cent) of total transfers during the year. TransRegional 2016-17 189.668 Transwa Cost per passenger kilometre Cost of service The total cost per passenger kilometre (including Across the modes, fare revenue on bus and train Cost per passenger kilometre The cost of operating regional town bus services annual capital charges) of providing Transperth’s services increased 3.4 per cent and 5.1 per cent The average cost per passenger kilometre for in 2018-19 was $24.6.million, up 0.4 per cent bus, train and ferry services increased by 2.6 per respectively. Ferry fare revenue decreased 8.6 road coaches was $0.28. Increased maintenance from $24.5m in 2017-18. cent due to cost increases outpacing growth in costs have contributed to this result. per cent due to a reduction in patronage. The cost of intra-town services increased 0.5 per passenger kilometres. Total expenditure on the Transperth system The average cost per passenger kilometre for cent from $20.7m to $20.8m, while the inter- Passenger kilometres, representing the (including annual capital charges) increased 4.5 trains was $0.58 (a 2.57 per cent decrease town services cost remained the same in 2018- combination of average trip length and per cent, while operating expenditure (excluding from the 2017-18 cost per passenger kilometre 19 at the 2017-18 level of $3.8m. passenger boardings, increased to 1418m annual capital charges) rose 5.0 per cent. of $0.60). This has resulted primarily due to kilometres, from 1393m in 2017-18. the decrease in patronage and subsequent Total expenditure on train services increased 6.4 passenger kilometres. Transperth total cost per passenger kilometre per cent with annual capital charges increasing

2018-19 0.791 4.7 per cent. Train total operating expenditure Revenue and expenditure (direct operating costs and transfer expenses) Transwa system revenue ($ million) 2017-18 0.771 rose 7.6 per cent with direct operating costs 2016-17 0.753 alone increasing 6.2 per cent. 2018-19 9.8

Total expenditure on bus services recorded a 2017-18 9.8 2.4 per cent increase with annual capital charges 2016-17 9.7 decreasing 1.3 per cent and operating expenditure increasing by 3.1 per cent. $9.8m revenue from cash fares was received Total expenditure on ferry services recorded a during the year; the result is consistent with the 3.4 per cent increase with annual capital charges previous financial year. remaining the same and operating expenditure increasing by 3.6 per cent.

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Transwa 2.3 PTA in the community The proportion of passengers who were 2017 2018 2019 Change dissatisfied overall was one per cent – Overall customer satisfaction was maintained at We continue to ensure services are safe, Transperth trains maintaining an all-time low. a very high level. secure, accessible, effectively communicated On board (night) 81% 82% 82% 0% The Transwa PSM showed that 90 per cent of our At the station/ and sustainable. Buses 98% 99% 98% -1.0% Overall satisfaction with Transperth bus services passengers were satisfied with our regional train interchange (day) At the station/ 2.3.1 Customer satisfaction was 91 per cent – setting a new all-time high and and road coach service performance, a slight 73% 76% 75% -1.3% interchange (night) We measure the success of Transperth and building on the previous all-time high of 89 per decrease from the previous year. cent recorded for the past three years. Transperth buses Transwa services through an annual Passenger Transwa: Overall Customer Satisfaction (per cent) On board (night) 83% 87% 84% -3.4% Satisfaction Monitor (PSM) undertaken by an Level of overall customer satisfaction with At the station/ 2019 90 98% 98% 98% 0% independent market research organisation. The Transperth buses (per cent) interchange (day) survey conducts detailed face-to-face interviews 2018 92 At the station/ 75% 82% 77% -6.1% with adult public transport users to assess 2019 91 interchange (night) passenger satisfaction with aspects of our 2017 91 2018 89 Transperth ferries services, including safety and security. On board (night) 95% 98% 100% 2.0% 2.3.2 Passenger safety and security 2017 89 At the station/ The Transperth PSM has been running for 100% 100% 100% 0% interchange (day) 30 years. In 2019, 4100 passengers were The proportion of users who were dissatisfied Transperth At the station/ surveyed, covering all bus contract areas, 92% 98% 100% 2.0% was four per cent – also setting a new record interchange (night) all rail lines and the ferry service. and improving on the previous all-time low Customer perception of safety While the 2019 results were better than 2017 PSM results are further outlined in the maintained over the past three years. The main The Transperth PSM assesses customer audited Transperth remains committed to improving and can be reasons for dissatisfaction in 2019 were “services perceptions of safety during the day and at night, key performance indicators passenger security and will be using the detailed accessed at and not frequent enough”, “insufficient off- peak both while waiting for and on board (bus/train/ www.transperth.wa.gov.au PSM survey data to refocus security efforts in the www.transwa.wa.gov.au services”, “services unreliable”, and “bus and ferry) services. train do not connect well”. coming year. Transperth Across the modes, virtually all passengers felt In 2019, overall customer satisfaction with Transperth ferries safe on board services during the day and results Commitment to safety and security Transperth services system-wide (calculated In 2019, 98 per cent of ferry users expressed remaining consistent for the past six years. To ensure that all passengers feel safe at all times overall satisfaction with Transperth ferry as the weighted average across all modes) Proportion of respondents who generally feel safe on our services, digitised CCTV footage from all increased to a new all-time high of 92.6 per cent services – slightly less than the 99 per cent aboard Transperth services during the day (per cent) train and bus stations (including car parks and (from 91.0 per cent). recorded in the past two years but remaining bike shelters) is monitored at the central an excellent result. monitoring room (CMR), a state-of-the-art facility 2019 99 Level of overall customer satisfaction across all which is manned 24 hours a day, seven days a Level of overall customer satisfaction with Transperth services (per cent) Bus 2018 99 week. Footage from railcars and buses is Transperth ferries (per cent) 2017 99 recorded and available for use if needed.

2019 92.6 2019 98 2019 98 A fleet of 31 patrol cars (nine operated by transit 2018 91.0 2018 99 officers covering the rail system, and 22 operated 2018 98 Train by contracted security officers covering the bus 2017 91.0 2017 99 2017 98 and ferry systems) provides a fast and effective Trains The proportion of users who were dissatisfied response to any incidents of anti-social behaviour. An overall satisfaction rate of 95 per cent was 2019 100 was one per cent – maintaining historical trends recorded for Transperth trains – setting a new 100 To enhance security surveillance, 315 new CCTV of zero to two per cent since 1999. Ferry 2018 all-time high and building on the previous all-time cameras were installed on trains during the year. 2017 100 high of 94 per cent recorded for the past two years. SmartRider In addition, more than 98.7 per cent of trains SmartRider has consistently attracted a high have security personnel onboard after 7pm. Level of overall customer satisfaction with The following table shows the responses for degree of user satisfaction across all modes. The Transperth trains (per cent) other aspects of safety perceptions. All buses are fitted with CCTV cameras, with all 2019 PSM showed that 98 per cent of passengers new buses fitted with seven full-colour cameras. 2019 95 on all three modes expressed satisfaction with our Bus security is provided by over 110 contracted electronic ticketing system. The prior year results security officers, patrolling the network in 22 2018 94 were as follows: bus 99 per cent; train 97 per cent; dedicated vehicles. 2017 94 and ferry 98 per cent. None of the surveyed passengers expressed dissatisfaction.

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Case Study Getting passengers on board

Transperth’s education program, Get on Board, By providing tailored solutions, the Transperth empowers community groups with the skills, education team deliver a positive experience and knowledge and confidence to travel on Perth’s help to reduce barriers that passengers might public transport system. Open to all community have to using public transport. It also supports groups, the program has a particular focus on participants in developing and maintaining their students, seniors, people with disability and independence and community connections. culturally and linguistically diverse (CaLD) communities. Key facts: • In 2018-19, Get on Board worked with 50,551 The Transperth education team deliver their participants – an increase of 78 per cent on services collaboratively with customer service the previous year. staff, transit officers, bus and ferry operators. They connect with the community through a • Get on Board works closely with local variety of channels including information stalls at government authorities, educational institutes, community events; tailored excursions and tours; community organisations and tailored interest a website for students transitioning to high groups. school, with additional resources for parents and • Almost 5400 participants from more than 60 teachers; excursion assistance, and educational CaLD groups workshops. • With collaboration with TTO, more than 23,300 In 2018-19 the education team also started students used timetabled bus train and ferry training volunteers and clients of the Red Cross services for their excursion travel, an increase Humanitarian Settlement Program (HSP). This of 35 per cent on the previous year. program provides practical assistance to refugees who are learning to navigate the • Supported 1174 seniors with the Get on systems and logistics of their new home and Board program – a 29 per cent increase country. from last year. The partnership between Transperth and Red • Provided in-class workshops and network Cross allows participants to be confident when tours to 1520 education support students who using public transport, making it easier to access are working towards independent travel. social, educational and employment opportunities.

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2.3.3 Accessible services During the past 12 months, the program has: Working groups • Attended the Abilities Expo to assist people with all abilities to access public transport, in • Seen a 31 per cent increase in demand for • Contributed to the new METRONET Access Proximity to metropolitan services particular showcasing the public transport community education services and a 78 per and Inclusion Reference Group (AIRG) to Nearly 85 per cent of Perth homes have ready services and support available to WA students cent increase in people reached. provide advice on universal design features access to public transport. This metric has living with a disability. remained steady for the past eight years and is a • Delivered tailored workshops, network tours and impacts during construction of new benchmark for future service planning. and attended events to support age-friendly infrastructure. During 2018-19, Transwa: and inclusion strategies in the Cities of • Actively participated as a member of the Rail • Commenced the North Dandalup and For the complete data refer page 85. Belmont, Cockburn, Gosnells, Joondalup, and Bus Standards Working Group, National Cookernup high level platform projects. Diversity, access and inclusion Mandurah, Melville, Swan, and Towns of Accessible Public Transport Advisory • Constructed high level platforms with a sheltered The PTA provides services to WA’s diverse Cambridge and Victoria Park. Committee and Accessible Public Transport seating area at both Carrabin and Yarloop community in a fair and non-discriminatory • Partnered with the cities of Joondalup, Stirling Jurisdictional Committee including the Stations, which are now fully accessible. manner. The PTA’s Disability Access and and Wanneroo to deliver transport training to modernisation of the Disability Standards for Inclusion Plan (DAIP) is developed in consultation volunteer mentors working with seniors to help Accessible Public Transport. 2.3.4 Communication with our with key stakeholders. them access public transport. • Participated in the national review of public customers During 2018-19 we continued to improve access • Continued to deliver training sessions on the transport standards resulting in the It is important that information about our services to metropolitan and regional public transport for Transperth accessibility kit designed for development of a national guide - Whole and projects is communicated in a timely manner. people with a disability. We also put strategies in trainers, carers, support workers and families, Journey: A Guide for Thinking Beyond Communication strategies are applied to improve place to appropriately communicate with to help people with disabilities travel on the Compliance to Create Accessible Public patronage and increase customer satisfaction culturally and linguistically diverse (CaLD) Transperth network Transport Journeys - which provides advice on and awareness of the benefits of public transport. how transport planners, builders, providers customers. • Continued a strong partnership with the and all levels of government can work together Metro activities Australian Red Cross delivering a series of During the past 12 months, we: with people with disability to make public • Launched a large-scale behaviour change transport training packages and workshops to • Assisted more than 25,800 people from transport more accessible. campaign to increase patronage on the assist new arrivals as part of the Humanitarian Transperth network. The campaign consisted high-needs groups access the public transport Settlement Program (HSP). network. Transport and infrastructure of a mass awareness television commercial • Delivered a falls prevention workshop program complemented by targeted out of home and • Received 263 calls to Translating and accessibility improvements for Injury Matter’s Stay on Your Feet Program. digital advertising to reinforce the messaging Interpreting Service (TIS) at InfoCentres and • Sent 98,982 accessibility bulletin emails to During 2018-19, Transperth: and encourage consideration of Transperth. InfoLine accessing 27 languages. • Increased the number of new, low-floor recipients registered with Transperth • Launched the updated version of the accessible buses to maintain 100 per cent Substantive equality and community education Accessible Services and related services to Transperth app with the integration of live bus, coverage of the total fleet (1484 buses at Transperth’s community education team aims to advise of system changes, upgrades and other train and ferry tracking and updates to My June 30). increase patronage, safety awareness and accessibility issues. Account, allowing users to manage SmartRider access to the network, particularly those who • Introduced the ASH Concession SmartRider to • Completed the replacement of Transperth and My Alerts. have high public transport needs. In collaboration regional buses to ensure the fleet is now 100 support Asylum Seekers residing in Western • Continued to develop Transperth’s social with Transperth train, ferry and bus operators, the per cent accessible. Australia. media channels, resulting in significant program delivers high public transport conversion • Upgraded a further 750 bus stops to meet the increases in engagement and following. rates. This is achieved through significant face- requirements of Federal Disability Standards • Continued to provide comprehensive to-face engagements with diverse groups, for Accessible Public Transport under our Bus information to passengers on service excursion planning, workshops and training Stop Accessibility Works Program. disruptions across all modes of public programs on-site and at stations, as well as • Presented to the City of Belmont’s Disability transport. Significant disruptions included provision of resources. Access and Inclusion Focus Group on public Water Corporation works on Beaufort Street, transport services and the PTA’s Disability Main Roads’ new Lord Street Project and Access and Inclusion Plan. changes to Cecil Ave in Cannington. • Commenced a project to upgrade bus stops • Implemented a number of communication to include QR codes to provide real-time bus campaigns to promote public transport tracking information. services for events, including all Optus Stadium events.

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• Engaged the community and other key 2.3.5 Environment and sustainability stakeholders on 53 major projects face-to- The PTA continues to identify opportunities to face, online and via post. maximise sustainability in delivering public • Assisted METRONET in establishing online transport services. social media presence for projects in delivery. In 2018-19 the PTA: • Planned and established 13 Community Advisory Groups to inform the design and • Updated the PTA Environmental Management construction phase of major projects. Systems (EMS) Manual to meet legal compliance, control operational and capital • Bayswater Station Upgrade saw the most works risks, and encourage ongoing consultation ever completed on a Train Station improvement to our environmental Project in Perth. performance. • Continue to inform residents of construction • Revised online EMS manual training for staff. disruptions resulting from major projects. • Was recognised as a leading agency in water Regional activities efficiency management, receiving Water • Included digital media platforms in advertising Corporation’s 2019 Waterwise Platinum relevant to campaigns e.g. Perth Royal Show, Business of the Year. Groovin’ the Moo and School Leavers. • Continued the PTA Water Efficiency • Promoted the Australind and Road Coach Management Plan at the Public Transport services through a summer South-West and Centre (PTC) and Claisebrook Depot. Red FM radio campaign. • Sustained real-time monitoring of the 73 water • Continued to advertise and cross-market with data loggers installed at train stations for early different tourism agencies to encourage detection of water leaks. tourism into regional areas and membership • Continued incorporation of water efficiency into renewals with regional tourism bodies for the infrastructure design such as recycled water ongoing promotion of Transwa services. and reverse osmosis at railcar washing facilities • Attended key events, both metro and regional, and solar panels installed at Mandurah Station, including Have a Go Day, Dowerin Field Days, contributing to ongoing energy-use reduction. Caravan and Camping Show, Seniors and • Expanded the recycling system at the PTC. Carers Expo and LiveLighter Activity and information days to promote Transwa services and concessions. • Promoted events including Easter services, Groovin’ the Moo, Moondyne Festival, Perth Royal Show, Kalgoorlie Race Round, Meckering Earthquake 50th Anniversary and School Leavers through major advertising campaigns.

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Case Study PTA wins with water

During 2018-19, the PTA was named the 2019 Changing cleaning chemicals – by Platinum Waterwise Business – an award that • choosing a less toxic cleaning chemical for recognises ongoing commitment to water our buses and railcars, we can reduce the efficiency and water use improvements - by the toxicity of our industrial wastewater. Water Corporation of WA. Taking out the major – incorporating water prize over nine other entrants, the PTA was Water efficient design • saving appliances, cooling towers, and awarded for its leadership and innovation in water recycling water from the train-wash facilities management across its offices and network helps to reduce the amount of fresh water infrastructure. Meeting water targets and reducing used. water consumption is a challenge due to the expanding network and several large projects • Waterwise landscaping – stations and rail under construction. reserves are planted with local native plants and other waterwise species, and supported In order to reduce our water waste and improve by heavy mulching and irrigation systems to water efficiency, a range of initiatives have been prevent erosion and minimise water loss and implemented across all offices, depots, and water use. stations. These include: These programs meet the environmental objective of the PTA’s Strategic Plan, and are – the installation of 92 Water leak detection regularly monitored and reported to the PTA’s • water loggers that assist with the early Executive Health, Safety and Environment detection of leaks above and below ground, Management Committee. resulting in water and cost savings.

Left to right: Minister for Water, Hon. David Kelly MLA, Jim Altham, PTA Sustainability Coordinator, and Water Corporation Chairman, Michael Hollett, at the 2019 Water Corporation Waterwise Recognition Event.

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2.4 Infrastructure delivery • Identified a preferred medium-to-long term investment pathway to ensure the rail network As well as providing world-class public transport provides the future capacity required to meet services, we strategically plan and manage growing patronage demands through to 2050. our land and physical assets and deliver the As an initial stage, funding has been secured infrastructure required to meet current and for planning the future infrastructure required to future transport demands. operate 15 trains per hour, and to run six-car We also invest heavily in maintenance and trains on the Armadale Line. upgrades to improve our system’s safety, • Completion of project definition plan for Denny efficiency and resilience. Avenue level crossing removal and Bayswater Station upgrade, and handover of these 2.4.1 Planning for the future projects to the delivery team within the PTA’s Through our IPLS division, we undertake major Major Projects Unit. transport and infrastructure planning, railway • Preparation of development applications for engineering, and land and environmental METRONET program of projects in delivery stage. management. Rail engineering activities Rail engineering and infrastructure planning • Provided conceptual rail infrastructure designs IPLS’ rail engineering and planning expertise for METRONET program of projects. provides design solutions with sufficient detail to • Developed detailed designs of crossovers and determine feasibility; inform planning decisions; turnouts at key locations to support the current and underpin costing and scoping of the state’s and future operational and maintenance public transport strategies. requirements of the suburban rail network. A significant portion of the IPLS team are • Supplied engineering expertise and technical currently embedded within the METRONET Office support for upgrades on both the freight and to develop the business cases and project suburban network, including the Kemerton rail definition plans for the Government’s priority spur and Fremantle Bridge replacement METRONET program of projects. projects and Westport. IPLS also provides long-term strategic planning • Developed an engineering assurance and operational analysis for the broader public framework for IPLS related designs transport network, and advice across the Land and property management Transport Portfolio, State Government more We manage and maintain the PTA’s land assets broadly and to external third parties about including acquisition, disposal and leasing. We work improving public transport services and utilisation. closely with Arc Infrastructure regarding the State’s rail freight corridor, and address heritage matters. Rail planning activities • Progressed development of a business case During 2018-19 IPLS: for the Morley-Ellenbrook Line to satisfy • Continued to provide specialist land advice Infrastructure Australia Stages 2 and 3. and valuations for the METRONET Office. • Completion of a business case for a potential • Assisted with the land requirements for new station on the Mandurah Line, between the Yanchep Rail Extension and Thornlie- Warnbro and Mandurah. Cockburn Link. • Progressed development of the business case • Generated about $16 million revenue from for upgrading Midland Station and potential leasing of land. extension of the Midland Line to Bellevue. • Identified land assets surplus to PTA’s requirements for disposal through the State’s Land Asset Sales Program.

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• Finalised the freehold transfer of three Aurizon Looking ahead Depots, associated with the previous sale of the freight rail business, and progressed the Land and property management documentation for the remaining six depots. • Assist the land acquisition, leasing, licencing and land investigations required for the delivery • Completed the transfer of land for the Perth of the Yanchep Rail Extension and Thornlie- City Link project to the Metropolitan Cockburn Link. Redevelopment Authority. • Commence an annual inspection program of • Finalised the land acquisition and landowner disused rail lines within WA’s south west region. compensation claims for Kenwick Rail Freight Facility. Rail planning Environmental management METRONET Strategic environmental planning and • Produce required Project Definition Plans for the management activities in 2018-19 included: priority METRONET projects under development, • Investigated and/or remediated 14 including the Morley-Ellenbrook Line. contaminated sites across WA. • Completed contamination investigations to Train Lengthening allow commencement of the Thornlie-Cockburn • Progress infrastructure planning and Link and Yanchep Rail Extension projects. development of a business case to operate • Removed asbestos from ten sites as part of PTA’s six-car trains on the Armadale Line and, strategy to inspect regional and metropolitan subject to funding, on the Midland and assets to reduce ongoing obligations. Fremantle lines. • Progressed environmental and heritage investigations and approval applications for Long Term Network Strategy priority METRONET projects including the • Complete analysis of station internal capacity Thornlie-Cockburn Link, Yanchep Rail and performance considering forecast future Extension, Denny Avenue level crossing passenger volumes. removal and Morley-Ellenbrook Line. • Prepare a business case for network-wide • Contributed to the implementation of the active transport infrastructure improvements to METRONET Gnarla Biddi Aboriginal better connect rail stations with their Engagement Strategy. surrounding communities. • Contributed to the draft METRONET • Develop level-crossing removal strategies Sustainability Strategy for final approvals. for vehicle crossings on the Midland and • Obtained environmental approval for Fremantle lines, deferred from 2018-19 Yanchep Rail Extension Part 1: Butler Station due to other priorities. to Eglinton Station and Denny Avenue Level Rail Engineering Crossing removal. • Continued the environmental assessment • Continue to produce conceptual designs for process for the Yanchep Rail Extension Part 2: the program of METRONET projects, level Eglinton Station to Yanchep Station and crossing removals, train lengthening projects Thornlie-Cockburn Link. and other PTA planning initiatives. • Provided environmental support for the closure Environmental Management reporting for the Perth Stadium project, including the Matagarup Pedestrian Bridge. • Obtain environmental approvals for Thornlie- Cockburn Link and Yanchep Rail Extension • Prepared monthly out-of-hours Noise Part 2: Eglinton Station to Yanchep Station. Management Plans for track, structures and overhead line maintenance work for • Submit environmental and Aboriginal heritage submission to local councils. applications for the Morley-Ellenbrook Line.

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METRONET connecting Case Study with the community

METRONET is helping to shape how future Capturing the community’s feedback is extremely generations in Perth choose to travel, where to important, one way the team is doing this is work and how they want to live. As several through community reference groups – five of projects start to move to the PTA for which were active or established in 2018-19 and procurement and delivery, the communications another four opened for nominations with more team is working hard to keep the community than 250 people collectively putting their names up-to-date. Localised campaigns have been forward to be part of them. connecting with residents, businesses and other During the coming year, the METRONET team stakeholders to answer any questions or will continue to be out and about, engaging and concerns, and share project highlights. informing the local community about the projects The Forrestfield-Airport Link has been particularly in their area. active on social media channels, manning stalls at local shopping centres, and hosting fully- booked site tours and information sessions for Key facts: people interested in learning more about the • 210 community engagement events were held project and the tunnel boring machines. in 2018-19 across the METRONET program As the Denny Avenue Level Crossing Removal, • More than 1.3 million people have been Bayswater Station Upgrade Thornlie-Cockburn reached through online, direct mail and in- Link and Yanchep Rail Extension projects started person engagement activities across the procurement, kick-starting the next phase of METRONET program. community engagement was a key focus, with high interest from the community.

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2.4.2 Major projects 2.4.3 Network maintenance Our KPI, to deliver a reliable infrastructure The Major Project Unit is responsible for the delivery of complex, high value, high risk infrastructure and upgrades system, sits at 99.42 per cent (just above projects to operate and grow the State’s public transport network. Our N&I division manages our metropolitan rail our target of 99.25 per cent). infrastructure, the asset investment program, and While a number of METRONET projects are still in a phase of planning or procurement, there are several delivery of Information Technology services. Key activities key projects in delivery with progress being achieved in 2018-19. The table below summarises some of our major project progress during the year. Routine maintenance is carefully planned on our network so that our infrastructure is safe and • Introduction of Rail Safety Officers who provide coaching and mentoring to rail safety worker Project Progress in 2018-19 Next Steps The Vision reliable for employees and passengers. protection officers, to ensure appropriate Forrestfield- Tunnel boring machines Grace Complete tunnel boring activities Extends the public transport Specific activities include: application of the safeworking rules and Airport Link and Sandy have arrived at in early 2020. Complete network and increase the level • Signal and crossing maintenance Budget: $1861m Redcliffe Station having tunnelled construction of all three train of rail and bus services to the procedures. under the Airport site. Stations at stations, Bayswater Junction eastern suburbs and foothills. • Track grinding and replacement • Introduction of the Traction Power System Forrestfield, Airport Central and tunnel portal, emergency egress • Upgrading and maintaining the passenger Projection Strategy 2051, which avoids Redcliffe are beginning to take shafts and cross passages. shape. Commence fit out of operational information displays abortive costs of future network upgrades by systems. • Overhead line maintenance and upgrade determining traction power requirements until • Upgrading and improving accessibility the year 2051. Radio Systems Contracts for system design and Finalisation of design work. Replacement of obsolete Replacement install and maintenance were Commencement of equipment technology with new digital radio of station facilities Budget: $138m awarded. System designs are fabrication and sourcing for system. Provides a platform for progressing installation on board trains and future rail technology systems at sites across the network. First which require enhanced and Upgrades radio mast installation due on the secure radio communications. Midland Line in late 2019. Most of the work undertaken by the PTA in this area remains unseen by the public. However, the impact on our customers if the infrastructure fails is significant, and therefore it remains a key focus. A list of key Kenwick Facility Finalisation of design and Award and completion of Secure a freight rail facility in projects is highlighted below. Budget: $90m procurement strategy. contract for earthworks. Kenwick to address future Award of contract and network needs. New facility Project Progress in 2018-19 Next Steps The Vision commencement of works for permits transfer of leased freight the facility. rail functions from Bellevue to Nowergup depot Detailed design Work will continue with The project will deliver an Kenwick. Budgeted under future upgrade project completed. Track works, completion expected 2020. upgraded depot including urban railcar procurement. Budget: $13.9m OLE and building works a new building able to support progressed. upgrade of railcars within Yanchep Finalisation of project planning. Secure environmental approvals. YRE: the PTA fleet. Release of the Alliance Contract Undertake civil and utility forward Extension of the Joondalup Line Rail Extension New bike shelters have Another three bike shelters The bike shelter program will tenders. Sought environmental works. Alliance contract award to emerging population growth Bike Shelters (YRE) and Budget: $2m been commissioned at the will be completed this significantly increase the number approvals from EPA and DoEE. and commencement of project areas. Thornlie-Cockburn following seven stations: financial year: of secured bicycle parking works. TCL: Link (TCL) • Beckenham • Victoria Park spaces throughout the rail Connection of the Mandurah Budget: $956m • Cannington • Clarkson network by adding more than a Line to the Thornlie Line. First ($100m in WAPC’s • North Fremantle • Henley Brook Bus Station thousand secure bicycle spaces. stage of a potential orbital rail Asset Investment • Wellard network. Program) • Victoria St • Warwick Finalisation of project planning. Alliance contract award and Substantial station Bayswater • Meltham Station Upgrade Release of the Alliance commencement of project redevelopment to facilitate rail Budget: $146m Contract tender. works. junctions and urban renewal. Bassendean Station Design activity Contractor awarded to work This project seeks to increase Turnback facility for future Bicycle Access Route surrounding the works on this project. Construction is patronage by walking Forrestfield and Morley- Budget: $0.36m planned to start in 2019. and cycling to rail stations Ellenbrook operations. and maximise utilisation of existing facilities. Denny Avenue Planning is significantly Award of construction contracts Removal of a dangerous level Commissioning of the IDV Commissioning of the systems The IDV will analyse and produce Level Crossing progressed and expressions for both the rail and road/ crossing, installation of a new Infrastructure for utilisation on the PTA is on-going with rail infrastructure data (overhead Removal of interest were released to civic works packages and the road under rail underpass and Diagnostic Vehicle Budget: $69m the market. commencement of these works. Kelmscott station precinct Budget: $16.8m network the vision systems to be tested and track) leading to a better improvements. Funded under in October. understanding and management of track asset performance. The level crossing removal program. Post commissioning a phased data will alert the PTA to where it roll out of the various systems * Budget figures as per the 2019-20 Western Australian State Budget Papers should focus its maintenance and will take place that will enable will allow for better quality asset the PTA to mature with the management plans within the data and diagnostic systems. next two to three years.

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Project Progress in 2018-19 Next Steps The Vision Procurement Requirements definition Awarding of final supply Maintenance is a key function in of Overhead has been completed and contract for the maintenance keeping the trains running. This Maintenance Vehicles project tender closed in vehicle project is to ensure there are Budget: $3m May 2018 sufficient vehicles available to undertake maintenance of the overhead power supply. Upgraded Platforms Upgrades to Yarloop and Upgrades to North Dandalup The upgraded platforms will at regional stations Carrabin platforms have and Cookernup stations are comply with current Disability Budget $0.075m been completed. planned to commence and be Discrimination Act standards for completed in 2019. regional passengers. Escalator and Lift PUG: Another three escalators at The escalator and lift replacement replacement Four escalators at PUG PUG to be commissioned program supports the movement Program: Elizabeth were commissioned. during 2019. of passengers throughout our stations, particularly during Quay and Perth EQ: A preventative maintenance peak hours. Underground Two escalators at agreement will be put in Budget: $28m Elizabeth Quay station place for each commissioned were commissioned. escalator. Riverside Drive Project scope changed Complete detailed design New bus lanes will improve Bus Lanes and now has the full and begin construction in travel times for Stirling Hwy bus Budget: $2.7m support of all stakeholders, early 2020. services including 950 services to progressing to an 85 per UWA and QEII. cent detailed design. Causeway Westend Detailed design has Construction starting in The additional bus lane additional bus lane. been completed with the September 2019 will improve the capacity and Budget: $0.77m contractor appointed for safety of the intersection resulting construction. in improved travel times for all eastbound services crossing the causeway. Cecil Ave Construction has started The City of Canning will deliver New bus lanes will improve bus Budget: $1.2m with the completion this project in journey times along (contribution) expected in early 2020. 2019-20. Cecil Ave in supporting buses through to Cannington Station. Oats Station The concept has been Complete the details design Increase the bus stand and Interchange completed and all and appoint construction layover capacity to capture the Budget: $0.8m stakeholders have given contractor for construction expected growth in bus services their in-principle approval early 2020. to the train station. for the preferred option. Curtin Central The new Curtin Central Project complete. At full capacity, the centralised Bus Station Bus Station opened on bus station will accommodate Budget: $1.5m 17 February, providing a up to 80 bus services during regional hub to improve peak periods. This will service connectivity for the the growing needs of the nearby community. community, including Curtin University’s Bentley campus, over the coming decades. Mount Claremont The new facility, located Due to open operationally from The bus depot will help Bus Depot on a 1.2ha site west of 21 July 2019. future-proof Transperth’s bus Budget: $7.8m Brockway Road, is almost operations, by ensuring as many at completion. bus depots as possible are owned by the PTA.

Connecting $440K used to support Progress a further five This project seeks to increase Station Routes designs (eight different Connecting Station Projects patronage by walking and cycling Budget: $0.3m locations), constructions from concept design until to rail stations and maximise and cycling projects with construction. utilisation of existing facilities. Local Governments.

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Looking ahead Key activities The PTA is actively involved in addressing rail workforce attraction and skills requirements at a • Radio System Replacement will be introduced 27% 20% 57% Strategic people management and N&I will have responsibility for the national level. The Executive Director of POD at 55 years 35 years employed over This year the focus has been on workforce PTA is the current Chair of the Australasian ongoing maintenance of this new technology and older and under 5 years planning and development to ensure the PTA has for the PTA. Railways Association (ARA) Rail Workforce the required people to deliver the transport Development Committee (RWDC) – the driving • Claremont Station upgrade will include component of the Government’s METRONET force behind the initiation of the ARA Skills a review of the bus interchange and heritage program of projects. The year saw a significant Capability Study released in November 2018. requirements increase in recruitment, training, and professional Through its involvement in the RWDC, the PTA is • N&I are on the journey towards compliance 2021 development activities to ensure the required employees working with the ARA to address industry image with ISO55000 for our asset management workforce is in place to support the future and attraction issues, including improvement of effectiveness. operation of Forrestfield-Airport Link services and diversity and gender balance in the rail industry. the opening of additional stations and services. The PTA has also been working closely with the 2.5 Our People During the year we also resolved multiple ARA, and other industry partners, on the tender 299 9 93% workforce management and emerging HR and transition to the new provider of the Rail Our aim is to attract, develop and maintain new employees years average employee issues. These included significant internal Industry Worker (RIW) card - the national this year service retention a workforce with the right capabilities and restructuring and associated change competency management system for Australian attitudes. We do this by developing, attracting management activities, the negotiation of rail workers. All individuals who access the PTA rail and retaining the right employees to meet our replacement Industrial Agreements and various network are required to hold and maintain an RIW rostering and dispute resolution activities. business needs. Occupational groupings card. The goal of the RIW program is to minimise • 58 per cent employed in operations which As a rail operator, the PTA has an obligation to the risk of untrained personnel carrying out work Our People and Organisational Development involve looking after the day-to-day processes ensure the competence of its workforce. POD is on the Australian rail network and to enhance (POD) Division provides strategic and operational of delivering our public transport system. working closely with the N&I division to develop a safety awareness, primarily by allowing RIW labour relations, HR services and systems, • 26 per cent employed in infrastructure which structured capability framework to maintain and participants to view or share information about Rail workforce management, payroll and training relates to construction and maintenance of assess the currency and competency of Industry Workers within the RIW system. services for the PTA while ensuring compliance tracks, signals, stations and other facilities employees responsible for rail safety critical work. Leadership and development with relevant legislation. which allow services to operate. This work has expanded to include upgrading future training pathways for train control, to The PTA recognises that effective leaders and The PTA is a Registered Training Organisation • 16 per cent support service delivery in the accommodate the expected introduction of high managers drive business performance and (RTO) under the Vocational Education and areas of contract management and capacity signalling, and expanded services on employee engagement. The PTA’s Leadership Training Act 1996 and trains its own railcar procurement, lease management, safety, the urban rail network. and Management (L&M) program is in place to drivers, transit officers, infrastructure employees, communication, policy development and develop and maintain the L&M capabilities ticketing and customer service staff. In addition, implementation, and other corporate areas. This year also saw the successful re-registration required of our managers. The program has POD also manages the PTA’s graduate program, • Operational numbers include: of the PTA’s Enterprise Registered Training entered its third year and continues to receive vacation students and trainee programs along Organisation following a comprehensive audit by • 361 transit officers positive reviews from participants. The PTA with the contract management of the Employee the WA Training Accreditation Authority. The promotes the 70:20:10 model of development, • 309 train drivers Assistance Program. delivery of high quality, national accredited and program participants are encouraged to • 220 customer and ticketing service staff training is a critical requirement to ensuring the apply their learnings on the job to reinforce new • 71 construction project managers ongoing competence of our employees. skills and knowledge, and achieve the best • 80 engineers results for their team and the PTA. • 34 road coach operators • 17 signal and electrical technicians • 33 linespersons (electrical overhead) • 24 railway track maintainers • 25 train controllers • 55 contract administrators

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During 2019, the PTA was project lead for the Group Representation Targeted support for operational employees is Looking ahead delivery of the first ever Transport Portfolio Women 25% also available through the volunteer Peer Support Leadership Development Program. Emerging program. This group of employees, from across While the division will continue to undertake its Employees of Aboriginal or 0.8% core corporate responsibilities, the year ahead leaders from the PTA, Main Roads and the Torres Strait Islander origin the business, are trained to provide valuable will see an increasing priority of ensuring the Department of Transport worked together to Employees with a disability 0.8% support to their co-workers. delivery of the workforce requirements associated develop their leadership skills and complete Employees from a culturally- 18% projects designed specifically to promote diverse background Service milestones with the delivery and, more importantly, ongoing collaboration and communication across the operations of expanded transport services During 2018-19, the 2018-20 PTA Reconciliation Our employees are key to our operations and we Transport Portfolio and enhance service delivery associated with the METRONET program of Action Plan (RAP) was endorsed by value their dedication and input in providing to our customers. projects. In particular, the division has set itself Reconciliation Australia. This outlines the actions quality services for the public. This year, 16 specific goals to: Labour relations that the PTA will take to drive reconciliation in the awards recognising 30 years of service were • Prepare a PTA Workforce Management Plan The Labour Relations branch provides support to workplace, and support the economic presented to employees. In addition, there were with focus on operations post-METRONET operational management through the provision of participation of Aboriginal and Torres Strait two awards recognising 50 years of service and construction: industrial relations advice, industrial and legal Islander peoples. The PTA RAP can be 15 awards recognising 40 years of service, advocacy support, and as bargaining agents for downloaded from the PTA website. presented to the following employees: • Skills requirements the negotiation of industrial agreements. • Roster approach and management Name Position • Succession risks and planning The year has proved busy for the Labour 50-year service awards Relations branch within POD, with the negotiation ‘To be recognised as a leader Leone Agnello Customer Service Assistant • Implement a range of workforce management and registration of agreements for six of the PTA’s system upgrades and enhancements to in providing world-class public Robert Stuart Railcar Driver current industrial agreements including: 40-year service awards support key workforce requirements such as transport services and solutions.’ Roster Management and Talent Management • Trade Employees David Ainscow Customer Service Assistant Nicholas Antartis Railcar Driver • Expanded training and development and staff • TTO Railway Employees Djinang, moorditj bridiya warniny, Antimo Blascetta Road Coach Operator capabilities reflecting the Government’s Rail • N&I Railway Employees ni, nidja bidi bokadja kalyakool Barry Crowley Signal Maintainer Priorities moort koorliny • Rail Car Drivers Andrew Dow Terminal Manager • Salaried Officers Ryszard Glass Manager Rail • Transwa Wages Employees Infrastructure Access Bernard Perry Driver Coordinator Health and lifestyle The branch also undertook review of all Cosimo Piazzola Operations Officer employees in fixed term contract or casual To promote the importance of a balanced and healthy lifestyle, the PTA offers employees Dean Pickett Training Manager arrangements for possible conversion to Fabio Pontarolo Customer Service Assistant permanent employment, in accordance with information, sponsored activities, support Andrew Rebeiro Driver Trainer Commissioner’s Instruction No. 23. Approximately programs and encouragement to proactively manage their health and wellbeing. With the Leslie Robinson Rollingstock Standards 169 fixed-term employees and six casual Engineer dedicated support of the Health and Wellbeing employees were reviewed as part of this process. Ian Thomas Driver Trainer (H&W) advocates, the modest H&W budget is Angelo Toigo Railcar Driver Diversity and equal opportunity efficiently managed to achieve maximum benefit Peter Veenstra Railcar Driver The PTA is committed to creating an environment for our employees. where all employees and members of the public This year, the program included advice and are treated with fairness, dignity and respect in support in fatigue management, and free flu accordance with equal opportunity laws and vaccinations and skin checks. Employees are principles. The PTA endeavours to employ a provided with access to free confidential workforce that reflects the community’s diversity counselling and support services for themselves and provides a workplace where differences are and their families through the PTA’s Employee valued and respected. Assistance Provider, Converge International.

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Case Study Working towards reconciliation

The PTA is contributing to reconciliation in an • Opportunities – investigate how we can effort to close the gap between Aboriginal and improve the employment and enterprise non-Aboriginal Australians through measurable opportunities for Aboriginal and Torres Strait actions that support relationships, foster respect Islander people and organisations working with and provide opportunities. Our new Reconciliation the PTA, and developing a cultural tour map Action Plan (RAP) 2018-20, endorsed by for self-guided tours within WA. Reconciliation Australia, outlines the practical • Governance, Tracking Progress and ways we as an organisation will drive Reporting – report achievements, challenges reconciliation in the workplace, and support the and learnings to Reconciliation Australia and economic participation of Aboriginal and Torres the PTA Executive, including reviewing and Strait Islander peoples. updating the RAP as required. The strategies include: These initiatives align to the PTA’s corporate • Relationships – consult with experts on how strategies, complement our values, and to build and strengthen relationships with contribute to our Workforce and Diversity Plan. Aboriginal and Torres Strait Islander peoples This year has shown our commitment to the RAP, through developing mutually beneficial with several staff engagement activities such as opportunities. We also commit to raise promoting local Reconciliation Week events; awareness of reconciliation with staff and hosting an informative NAIDOC presentation for external stakeholders, including participating in staff; engaging local Aboriginal businesses to reconciliation events. cater events; including an Acknowledgement of Country in PTA presentation templates, and • Respect – in order to foster awareness and understanding, we will engage staff with cultural creating an alternative email signature for staff learning opportunities and events, recognise that includes RAP artwork and the PTA values and promote appropriate cultural protocols written in the Noongar language. such as an Acknowledgement of Country, and We also engaged local Aboriginal graphic include Aboriginal and Torres Strait Islander designer, Justine Kinney, to design the RAP heritage information in project documentation. document. The iconography scattered throughout the document uses track imagery to depict what we are hoping to achieve. The PTA RAP can be downloaded from the PTA website.

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3.1 Bus safety 3.2 Rail safety Each bus depot was audited in accordance with We promote, manage and improve rail safety 3. Governance and compliance the Audit Schedule with other site visits operations for our employees, contractors, undertaken as required. These regular audits and stakeholders and the public. inspections have continued to improve the safety management systems and the safety focus of Reporting of notifiable occurrences contractors. Contractor lost time injury (LTI) rates Under the Rail Safety National Law (WA) Act continue to be in-line with or better than the 2015, specific railway safety incidents must be industry standard. reported to the Office of the National Rail Safety The three contractors providing Transperth bus Regulator (ONRSR). These ‘notifiable services have been re-certified to AS 4801 – occurrences’ are defined by the Rail Safety Occupational Health and Safety Management National Law (WA) Regulations 2015 as Category Systems: A (death, serious injury, or significant property damage) or Category B (incidents that have the • Swan Transit, valid to February 2021. potential to cause a serious accident). They do • Path Transit, valid to July 2021. not cover non-rail operations. • Transdev, valid to January 2020. All three contractors are also beginning the transition to being certified as compliant with AS/NZS ISO 45001 Occupational Health and Safety Management Systems, which will supersede AS4801.

Rail safety performance report

Level of KPIs Measures Target Results Status Notes Achievement Notifiable occurrences 0.23 0.29 27% above target ˇ Desired results Ref #1 Category A per million not achieved – passenger boardings taking action Notifiable occurrences 0.72 0.75 5% above target ˇ Desired results Ref #2 Category A per million not achieved – Safety incidents per train kilometres taking action million passenger and kilometre decrease Notifiable occurrences 12.26 25.68 109% above target ˇ Desired results Ref #3 Category B per million not achieved – passenger boardings taking action Notifiable occurrences 37.10 66.41 79% above target ˇ Desired results Ref #4 Category B per million not achieved – train kilometres taking action Lease breaches 0 0 100% + Met Target Obligations under the Five-year n/a n/a 5% Planning lease are adhered to independent audit commenced for 2020 audit Key + Met Target ˆ Close to Target ˇ Desired results not achieved – taking action

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Notes The following categories showed increases: • Community engagement strategies including: • As part of the METRONET program of projects: Targets are set as an aspirational ten per cent Trespass due to changes in the interpretation • Right Track program coordination, with rail • The Denny Avenue grade separation project reduction on the average of the previous five of ONRSR Reporting Guidelines (885 vs 510), safety ambassador and double amputee has commenced and is due to be completed years’ results. and Vandalism (101 vs 85). There were some Jonathan Beninca presenting to schools in late 2021. decreases in a number of incident categories An increase of Category Bs has been a historical and youth organisations across the • Planning for the removal of the Caledonian such as: Level Crossing Occurrences (174 vs trend, with total occurrences increasing over the metropolitan area. Avenue, Mint Street, Oats Street, Welshpool 243), Safeworking Breaches (33 vs 49) and Track past five years. Improvements in reporting, • Corporate Communications participation in Road and Wharf Street level crossings is and Civil Irregularities (12 vs 16). including observation of slight changes to the review of educational resources, mapping currently underway. categorisation saw an increase in this year’s Ref #4 them against the new Australian Curriculum • PTA is also progressing early concept design total Category B results with 1585 notifiable Category B per million train kilometres Framework. work to identify preferred options for removing occurrences reported, compared to 1299 in benchmark value. • Transit officer engagement with at-risk youth all other road level crossings on its rail network. 2017-18. This target of 37.10 was set at the beginning of the through a reward card campaign, rewarding • The process has commenced for the removal Ref #1 year, based on projected estimates of Transperth youth for demonstrating safe behaviours of Moore Street level crossing in Perth. and Transwa train kilometres totalling 22.496m km. around the rail network. Category A per million passenger • Crossing the Network program is continuing Train kilometres at years end were 23.856m km. boardings benchmark value • Transperth Train Operations reviewing security with 19 pedestrian crossings upgraded to This target of 0.23 per million passenger boardings The target for this year was not met due to a large options at railcar depots and sidings to reduce improve safety and accessibility for all target was set at the beginning of the year, based increase in the number of Category B incidents trespass/graffiti incidents. community members. reported, in particular Trespasses. • Transwa developing e-form graffiti reports as on projected estimates of Transperth and Transwa Strategies to reduce suspected/attempted suicides part of the PTA and WA Police’s Operation train boardings totalling 63.218m. Total train The following categories showed increases: • Continued training for transit officers to identify Cleanskin, for a more accurate and passenger boardings at year’s end were 61.725m. Trespass due to changes in the interpretation at-risk behaviours so they’re able to intervene standardised approach to reporting incidents There were 18 Category A notifiable occurrences of ONRSR Reporting Guidelines (885 vs 510), to de-escalate the incident. This is embedded on regional services. reported, compared with 26 in 2017-18. Although and Vandalism (101 vs 85). There were some in initial training and requalification. over target, there was a reduction in Category A decreases in a number of incident categories Strategies to reduce slip trip or fall incidents • Continued training for Central Monitoring Room incidents (0.29 vs 0.43 last year) and a reduction such as: Level Crossing Occurrences (174 vs 243), • Improved signage on escalators at Perth operators to identify at-risk behaviours and in the level of achievement over target (from 30 per Safeworking Breaches (33 vs 49) and Track and Underground Station. relay this information to mobile or static transit cent to 27 per cent). The following categories Civil Irregularities (12 vs 16). • Improved communication between PTA and officers who are able to intervene. showed decreases: Level Crossing Occurrences disability service providers to enhance support Strategies to enhance rail safety (0 vs 5), Derailments (0 vs 2), Assaults (2 vs 3), Rail safety initiatives provided to patrons requiring assisted travel. • Defibrillator locations will be included on station Collisions on Running Line (1 vs 2) and Fires (0 vs 1). Strategies to reduce trespass • Escalator safety campaign at Perth, Perth maps in future. Underground, Murdoch, Elizabeth Quay, Ref #2 • Provision of additional station staff at key • A safety assurance framework is being Stirling, Bull Creek, Whitfords, Rockingham and Category A per million train kilometres benchmark value locations during special events held at developed to align with industry best practice Subiaco Stations, targeting key at-risk in peak This target of 0.72 was set at the beginning of the Optus Stadium. and ensure our system is safe for our periods passenger groups. year, based on projected estimates of Transperth • A proposal to increase fines to deter risky employees, contractors and customers. • Permanent placement of station staff in peak and Transwa train kilometres totalling 22.497m km. behaviour on WA’s rail network is currently • The Safeworking Improvement Plan has been periods at the bottom of escalators at Perth Train kilometres at years end was 23.866m km. in progress. initiated to review and improve procedures, Underground and Elizabeth Quay Stations to • Continued investment in a targeted public processes and training for rail safety work. This result was closer to target due to a reduction clear the cross-hatching areas. in Category A incidents for the year (0.72 vs 1.11 campaign using social media, highlighting • N&I are in the process of implementing an last year). the dangers of trespassing. Strategies to reduce level crossing incidents Electronic Permitting Administration System • Utilising transit officers to build relationships • Continued support of the TrackSAFE Level Ref #3 (ePAS) to allow safer, more efficient work on Crossing Safety Forum and campaigns. Category B per million passenger boardings with high-risk demographics through social the rail network. benchmark value activities, to highlight the dangers of trespassing, • Continued support of media campaign to • Transwa risk profile reviewed, clearly such as the Right Track program and the PTA’s highlight the dangers of vehicles at level The target for this year was not met due to a identifying the rail safety risks, enabling more Stay off the Tracks initiative. This includes urban crossings and trying to beat boom gates. large increase in the number of Category B specific controls to be introduced for regional art projects, community events, transit officer incidents reported, in particular Trespasses. rail operations. engagement activities, youth workshops and participating in committees and networks.

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3.3 Occupational safety, health and injury management The HSE system extends to contractors so that Our program helps injured workers return to work they understand PTA safety requirements, which as soon as medically appropriate and adheres to OSH performance in turn reinforces our commitment to safety. The the requirements of the Workers’ Compensation ONRSR also regularly inspects sections of the and Injury Management Act 1981. Supervisors, Level of KPIs Measures 2015-16 2016-17 2017-18 2018-19 Target HSE management system throughout the year. managers, divisional safety representatives and achievement executive management actively support injured Lost-time injury/ ˇ Desired results disease (LTI/D 3.71 3.94 3.61 5.32 3.4 not achieved – Reporting systems workers by ensuring suitable duties are available incident rate) taking action We have two reporting systems – STARRS and to meet medical conditions whenever possible. ˇ Desired results IFRS – to identify incident trends, perform trend We have met our target of returning 80 per cent LTI severity rate 22.03 31.52 20.49 35.00 22.2 not achieved – taking action analysis and implement corrective actions. of injured workers to work within 26 weeks and % of injured STARRS enables the reporting, recording and achieved a slight improvement of 84.88 per cent workers returned analysis of hazards, near misses, incidents, vs 81.01 per cent last year. OSH to work within (i)13 weeks 92% 67.6% 70.88% 70.93% Greater than or health assessments, injuries and workers’ Our workers’ compensation claim numbers have equal to 80% + Met Target compensation claim data. IFRS enables the and remained steady over the past two financial years; return to work reporting and recording of rail-related incidents, however our total costs for all claims paid has (ii)26 weeks 93% 82.43% 81.01% 84.88% within 26 weeks particularly occurrences notifiable to the ONRSR. reduced by 12.67 per cent ($0.5m), a continued There is an ongoing project to replace the downtrend over the same period. Number of fatalities (employees/ 0 0 0 0 0 + Met Target two systems with an integrated reporting contractors) and analysis system. 3.4 Risk management Risk management is crucial to achieving the Key + Met Target ˆ Close to Target ˇ Desired results not achieved – taking action Drug and alcohol testing PTA’s purpose of providing safe, customer- Notes: The definition of a Lost Time Injury (LTI) was clarified last financial year in alignment with industry We have a zero tolerance policy to the use of focussed, integrated and efficient transport standards. Previously an injury was classified as a LTI when both a workers’ compensation claim was services. We do this by managing risk to a level lodged and at least one full shift was missed after the injury. Now LTI classification is determined by a full alcohol and other drugs (AOD) in the workplace. Drugs and alcohol are recognised occupational deemed to be As Low As Reasonably Practicable shift missed after a work-related injury, irrespective of lodging a workers compensation claim. This has (ALARP). increased the LTI figures for 2018-19. health and safety risks which compromise an employee’s ability to work safely. The PTA’s Executive and senior management are In the year, a total of 1643 random AOD tests committed to ensuring that risk management is were undertaken, of which six returned a positive well embedded in the organisation, providing Organisational commitment HSE management system result for drugs. All positive results are dealt with best practice in decision making, business management and corporate governance. to safety and health Our Health, Safety and Environmental (HSE) in accordance with our Alcohol and Other Drugs Effective risk management is evident when Safety is a core value and was a continued focus system is continually monitored and reviewed, Policy, which was updated with a more robust strategic, operational and project risks are throughout the year. The provision of a healthy with a comprehensive and strategic audit consequence model, demonstrating our proactively identified, assessed and controlled, and safe workplace – under the banner Everyone program and dedicated rail safety compliance commitment to providing a safe environment with opportunities being recognised and Home Safe Every Day – is the prime responsibility personnel to certify it remains compliant and for all employees, contractors and members of capitalised on. of everyone in the PTA. A workplace where effective. The audit process provides feedback, the public. management and employees are committed to identifies areas for improvement and ensures In addition to PTA’s internal AOD testing, PTA’s There is ongoing commitment to maintain safety is integral to delivering safe and customer- corrective actions are implemented, monitored various contractors (eg bus,construction etc) heightened awareness and education among focussed public transport. and reviewed. conducted more than 125,000 AOD tests which employees and contractors to ensure they proactively manage and monitor risk. Our Our integrated HSE system was improved to were reported to the PTA as part of its contract success in achieving this is closely aligned to the Health assessment standards make it easier to report incidents, access management function. effectiveness of the risk management framework All employees who have track access continue to policies, procedures and general safety and in place that governs the foundations and be monitored and reviewed in accordance with environment information. Injury management arrangements to embed risk management across the National Standard for Health Assessment for We are committed to reducing work-related injury all levels of the organisation. Rail Safety Workers. and illness, and our prompt and efficient management of work-related injuries enhances a safe and healthy workplace.

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Risk management initiatives in 2018-19 included: • Commissioned studies into rail capacity and rail We have made changes to the EDRMS metadata Legislation impacting on the PTA’s activities infrastructure maintenance on the Robb Jetty to fields and updated over 55,000 records to In the performance of its functions, the PTA • Review and update of the PTA’s Risk North Quay Rail Terminal section of line, which improve information transparency, assist with complies with all relevant written laws of Western Management Policy and Guidelines to ensure in turn informed negotiation of additional reporting and facilitate traceability of ownership. Australia and, where required, reports on an alignment and consistency with the recently scheduled train paths for a third-party operator. annual basis in accordance with key legislation, released ISO 31000:2018 Risk Management We are reviewing our mandatory recordkeeping This led to a significant increase in rail-based including the following: – Guidelines. induction training course, to incorporate a stronger Twenty Foot Equivalent (TEU) container • Review and update to the PTA’s Risk focus on information security and refresh the Financial Management Act 2006 (WA); Electoral movement through Fremantle Port, in line with Management Framework to ensure it content to incorporate the digital first approach. Act 1907; Equal Opportunity Act 1984; State the State Government initiative. incorporates rail safety requirements and risk As part of our compliance obligations, we report Superannuation Act 2000; Heritage of Western • Negotiated alterations to scheduled train management practices set out by the Office on staff completion of training and check on Australia Act 1990; Freedom of Information Act paths with third-party operators to facilitate National Rail Safety Regulator (ONRSR), Rail contractors and consultants. 1992; State Supply Commission Act 1991; Transperth Train Operations’ suburban train Public Sector Management Act 1994; Western Safety National Law (RSNL) and other Milestones achieved in the EDRMS in 2018-19 timetable redesign for the Forrestfield Airport Australian Jobs Act 2017; Disability Services Act relevant legislation. include: Link train operation. 1993 (Cth); Rail Safety National Law (WA) Act • Stronger alignment of risk management within • 14,950 files created plus an additional 2015; Railways (Access) Act 1998; State Trading projects to ensure project risks are duly 3.6 Other legal and policy requirements 438 file volumes Concerns Act 1916; Occupational Safety and recorded, managed, monitored and reported Health Act 1984; Environmental Protection Act on via the PTA’s risk management system. Information and records management • 1537 archive boxes created 1986; Contaminated Sites Act 2003; Auditor • Project commenced to source (software) We are committed to best-practice information • 2815 archive boxes couriered by and records management in compliance with the storage provider General Act 2006; State Records Act 2000; a suitable PTA risk management system Salaries and Allowances Act 1975; and Public State Records Act 2000. As part of the PTA’s • 992 file or box retrievals were processed to replace the current system, scheduled Interest Disclosure Act 2003. completion April 2020. Strategic Plan 2017-2021 Key Result Area 4, the • 257 missing files found PTA is progressing the establishment of an Other various Agreements/Acts and written laws • Risk management education sessions made • 1076 empty files destroyed information management framework. Our impact on the PTA’s activities from time to time. available to all PTA staff and contractors. Digitisation Strategy is also aligned with the • 77 files destroyed via authorised process In the financial administration of the PTA, we • Ongoing structured quarterly meetings of the Government’s Digital WA Strategy, Public Sector • 814,789 documents and emails created have complied with the requirements of the Divisional Risk Coordinator and Strategic Risk Reform and Service Priority Review. The program • 1,176,827 versions created Financial Management Act 2006 (WA). We have Management Groups. Quarterly risk reporting of works has been identified and funding request • 676,853 searches performed also complied with every other relevant written to executive management and divisions. is in progress to commence the Digital • 64,296 workflows executed. law and exercised controls to provide reasonable Transformation for Future PTA project. 3.5 Freight corridor lease agreement assurance that the receipt and expenditure of compliance Our Recordkeeping Plan (RKP) was approved by the Compliance with public sector standards moneys, the acquisition and disposal of public State Records Commission on 7 December 2018 property and the incurring of liabilities have been • Development of a rail network information The PTA’s human resource management policies and documents a number of improvements that we in accordance with legislative provisions. system to facilitate freight network data and and practices are subject to ongoing review and, in plan to undertake in the information and records information retention for duration of the accordance with section 31(1) of the Public Sector At the date of signing we are not aware of any management space. Our retention and disposal infrastructure lease through to 2049. Management Act, comply fully with the public circumstances which would render the particulars schedule has also been reviewed and is currently sector standards in human resource management. included in this statement misleading or inaccurate. • Commenced work on the 2020 freight audit, with the State Records Office awaiting approval. developing audit scope and methodology, As part of ongoing improvement to ensure including initial discussion with lessee Arc Compliance with relevant written law provision of the right information at the right time Infrastructure. Enabling legislation to the right place, we’re currently assessing • Completed a five-yearly ‘lessons learned’ review The PTA is established under the Public Transport enhancements to Objective, PTA’s Electronic of the Avon Yard to Goomalling test section of Authority Act 2003, an Act to establish a State Document and Records Management System track (53.25 km of low-profile concrete sleepers agency responsible for providing public passenger (EDRMS), such as enabling mobile access to laid in a one-in-two pattern with steel sleepers) transport services anywhere in the State and corporate records stored in the EDRMS. Richard Sellers Jeffrey Steedman as required under the Federal Nation Building performing functions under other Acts, including Accountable Authority Chief Finance Officer Program (National Land Transport) Act 2009. Business Unit Portals have been implemented the Rail Freight System Act 2000 and the 3 September 2019 3 September 2019 across the PTA to enable quick and easy retrieval Government Railways Act 1904 as well as the of information for users while allowing retention construction of railways under various railway and disposal processes to be streamlined. enabling Acts. Currently the Minister responsible for the PTA is the Minister for Transport.

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Government building contracts Expenditure on advertising, market The PTA has a commitment to the Government research, polling and direct mail Building Training Policy, having included In compliance with section 175ZE of the Electoral appropriate clauses in tender documentation and Act 1907, the following table reports our monitored compliance of in scope building, expenditure on advertising agencies, market construction or maintenance contractors for research organisations, polling organisations, projects with a duration of greater than three direct mail organisations and media advertising months and a value of greater than $2 million. organisations.

Number of contracts in scope of the 2018-19 Government Building Training Policy: $ Expenditure with Advertising Agencies: Building and Gatecrasher Advertising Pty Ltd 1,177,814 Maintenance Measure construction Ad Capital Advertising Pty Ltd 185,867 projects 2019 2019 Adcorp Australia Limited 40,013 Awarded 0 0 Pamphleteers 26,306 Reported on Initiative Media Australia P/L 21,713 Commenced 0 0 Apn Outdoor Pty Ltd 20,600 reporting Linkedin 20,334 Continued Definition Pty Ltd 18,805 reporting from 2 0 previous reporting Vanguard Press 14,679 period Gettin Hectic Australia 12,463 Target training rate Google 6,721 Met or exceeded 2 0 Cooch Creative 5,705 Did not meet 0 0 Grad Connection Pty Ltd 3,995 Granted a variation 0 0 Australia's Golden Outback 3,524 Imagesource Digital Solutions 3,400 Sam Field 2,470 Proton Promotional Advertising 2,240 1,566,649 Expenditure with Market Research Agencies: Painted Dog Research 281,106 Metrix Consulting 88,063 369,169 Expenditure with Polling Agencies: Nil Expenditure with Direct Mail Agencies: Nil Expenditure with Media Advertising Agencies: Carat Australia Media Services 858,178 Initiative Media Australia P/L 103,157 Big Head Digital 20,800 Optimum Media Decisions 9,141 Brandconnect (WA) 8,460 Fairfax Media Publications P/L 5,929 Concept Media 5,300 Redwave Media Pty Ltd 4,580 Southern Cross Austereo 2,970 1,018,515 Total Expenditure 2,954,333

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3.7 Other governance and financial Unauthorised use of credit cards Explanation of Major Capital Expenditure Variations 2018-19 disclosures Some PTA officers hold corporate credit cards, (a) Budgeted estimates and actual results for 2018-19 but only where their functions warrant it. Despite Pricing policy each cardholder being reminded of their obligations annually under the PTA credit card Budget Actual Variation Comments Government continued to maintain public Description of Work transport fares at an affordable level. policy, there were eight accidental instances $000 $000 $000 where the Western Australian Government Forrestfield-Airport Link 218,504 234,247 (15,743) Project scheduling The PTA reviews its fares annually. The fares are Purchasing Card has been used for a personal Future Urban Railcar Procurement 21,962 22,218 (256) Project scheduling set by Government to ensure affordability for purpose. There was one transaction of $29 Radio Systems Replacement 19,524 13,395 6,129 Project scheduling both metropolitan and regional West Australians. where the expenditure was settled after five Thornlie-Cockburn Link 18,810 12,761 6,049 Project scheduling Transperth and Transwa fare information is working days. This was settled six working days Smartrider System Asset Replacement And Technology Upgrade 15,330 7,115 8,215 Project scheduling provided at www.transperth.wa.gov.au after Finance became aware that the transaction Yanchep Rail Extension 12,479 8,737 3,742 Project scheduling and www.transwa.wa.gov.au was for personal use. There were no referrals for Perth Stadium Transport Infrastructure 8,148 3,628 4,520 Project scheduling disciplinary action as the Chief Finance Officer Other 168,669 121,333 47,336 Project scheduling Workers compensation noted prompt advice and settlement of the Grand Total 483,426 423,434 59,992 Eighty-three compensation claims were recorded personal use amount, and that the nature of the Budget is reflective of the Public Transport Authority’s published Asset Investment Program as at 30 June 2019. during the year, compared with 85 in 2017-18. expenditure was immaterial and characteristic of honest mistakes Indemnification of Directors and 2019 (b) Major Works in progress and completed Officers $ Aggregate amount of personal use expenditure Estimated Total cost The Authority provides a statutory indemnity for 794 for the reporting period Estimated Cost to of project Directors and its Officers, and we also purchase Description of Work Total Cost Complete Actual Aggregate amount of personal use expenditure 764 Directors and Officers insurance. settled by the due date (within five working days) $000 $000 $000 Forrestfield-Airport Link 1,861,000 897,620 963,380 Aggregate amount of personal use expenditure 29 settled after the period (after five working days) Railcar Replacement 1,059,500 1,057,175 2,325 Aggregate amount of personal use expenditure Perth City Link 576,469 5,616 570,853 0 outstanding at the end of the reporting period Thornlie-Cockburn Link 535,797 516,816 18,981 Railcar Acquisition 508,199 505,697 2,502 Yanchep Rail Extension ($100m in WAPC’s AIP) 420,170 406,094 14,076 Bus Acquisition and Replacement Program 380,327 2,050 378,277 Perth Stadium Transport Infrastructure 366,401 11,492 354,909 Future Urban Railcar Procurement 229,861 56,547 173,314 Radio Systems Replacement 138,074 115,802 22,272 Level Crossing Removal Program 76,530 73,113 3,417 Aubin Grove Station 66,753 899 65,854 Edgewater Multi-Storey Car Park 22,110 39 22,071

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3.8 Independent Auditor’s Report Responsibility of the Chief Executive Officer As part of an audit in accordance with Australian I communicate with the Chief Executive Officer for the Financial Statements Auditing Standards, I exercise professional regarding, among other matters, the planned To the Parliament of Western Australia The Chief Executive Officer is responsible for judgment and maintain professional scepticism scope and timing of the audit and significant keeping proper accounts, and the preparation throughout the audit. I also: audit findings, including any significant and fair presentation of the financial statements deficiencies in internal control that I identify PUBLIC TRANSPORT AUTHORITY • Identify and assess the risks of material in accordance with Australian Accounting during my audit. OF WESTERN AUSTRALIA misstatement of the financial statements, Standards, the Financial Management Act 2006 whether due to fraud or error, design and and the Treasurer’s Instructions, and for such perform audit procedures responsive to those Report on Controls Report on the Financial Statements internal control as the Chief Executive Officer risks, and obtain audit evidence that is determines is necessary to enable the preparation Opinion Opinion sufficient and appropriate to provide a basis of financial statements that are free from material I have undertaken a reasonable assurance I have audited the financial statements of the for my opinion. The risk of not detecting a misstatement, whether due to fraud or error. engagement on the design and implementation Public Transport Authority of Western Australia material misstatement resulting from fraud is of controls exercised by the Public Transport which comprise the Statement of Financial In preparing the financial statements, the Chief higher than for one resulting from error, as Authority of Western Australia. The controls Position as at 30 June 2019, the Statement of Executive Officer is responsible for assessing the fraud may involve collusion, forgery, intentional exercised by the Authority are those policies and Comprehensive Income, Statement of Changes agency’s ability to continue as a going concern, omissions, misrepresentations, or the override procedures established by the Chief Executive in Equity, Statement of Cash Flows for the year disclosing, as applicable, matters related to going of internal control. Officer to ensure that the receipt, expenditure then ended, and Notes comprising a summary of concern and using the going concern basis of • Obtain an understanding of internal control and investment of money, the acquisition and significant accounting policies and other accounting unless the Western Australian relevant to the audit in order to design audit disposal of property, and the incurring of liabilities explanatory information. Government has made policy or funding procedures that are appropriate in the have been in accordance with legislative decisions affecting the continued existence of the In my opinion, the financial statements are based circumstances, but not for the purpose of provisions (the overall control objectives). Authority. expressing an opinion on the effectiveness of on proper accounts and present fairly, in all My opinion has been formed on the basis of the the agency’s internal control. material respects, the operating results and cash Auditor’s Responsibility for the Audit of the matters outlined in this report. flows of the Public Transport Authority of Western Financial Statements • Evaluate the appropriateness of accounting Australia for the year ended 30 June 2019 and policies used and the reasonableness of In my opinion, in all material respects, the As required by the Auditor General Act 2006, my controls exercised by the Public Transport the financial position at the end of that period. responsibility is to express an opinion on the accounting estimates and related disclosures They are in accordance with Australian Accounting made by the Chief Executive Officer. Authority of Western Australia are sufficiently financial statements. The objectives of my audit adequate to provide reasonable assurance that Standards, the Financial Management Act 2006 • Conclude on the appropriateness of the Chief are to obtain reasonable assurance about the receipt, expenditure and investment of and the Treasurer’s Instructions. Executive Officer’s use of the going concern whether the financial statements as a whole are money, the acquisition and disposal of property basis of accounting and, based on the audit Basis for Opinion free from material misstatement, whether due to and the incurring of liabilities have been in evidence obtained, whether a material I conducted my audit in accordance with the fraud or error, and to issue an auditor’s report accordance with legislative provisions during the uncertainty exists related to events or Australian Auditing Standards. My responsibilities that includes my opinion. Reasonable assurance year ended 30 June 2019. conditions that may cast significant doubt on under those standards are further described in is a high level of assurance, but is not a the agency’s ability to continue as a going the Auditor’s Responsibilities for the Audit of the guarantee that an audit conducted in accordance The Chief Executive Officer’s Responsibilities concern. If I conclude that a material Financial Statements section of my report. I am with Australian Auditing Standards will always The Chief Executive Officer is responsible for uncertainty exists, I am required to draw independent of the Authority in accordance with detect a material misstatement when it exists. designing, implementing and maintaining controls attention in my auditor’s report to the related the Auditor General Act 2006 and the relevant Misstatements can arise from fraud or error and to ensure that the receipt, expenditure and disclosures in the financial statements or, if ethical requirements of the Accounting Professional are considered material if, individually or in the investment of money, the acquisition and such disclosures are inadequate, to modify and Ethical Standards Board’s APES 110 Code aggregate, they could reasonably be expected to disposal of property, and the incurring of liabilities my opinion. My conclusions are based on the of Ethics for Professional Accountants (the Code) influence the economic decisions of users taken are in accordance with the Financial audit evidence obtained up to the date of my that are relevant to my audit of the financial on the basis of the financial statements. Management Act 2006, the Treasurer’s auditor’s report. statements. I have also fulfilled my other ethical Instructions and other relevant written law. responsibilities in accordance with the Code. • Evaluate the overall presentation, structure I believe that the audit evidence I have obtained and content of the financial statements, is sufficient and appropriate to provide a basis including the disclosures, and whether the for my opinion. financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

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Auditor General’s Responsibilities Report on the Key Performance I conducted my engagement in accordance Matters Relating to the Electronic Publication As required by the Auditor General Act 2006, my Indicators with Standard on Assurance Engagements ASAE of the Audited Financial Statements and responsibility as an assurance practitioner is to 3000 Assurance Engagements Other than Audits Key Performance Indicators Opinion express an opinion on the suitability of the design or Reviews of Historical Financial Information This auditor’s report relates to the financial I have undertaken a reasonable assurance of the controls to achieve the overall control issued by the Australian Auditing and Assurance statements and key performance indicators engagement on the key performance indicators objectives and the implementation of the controls Standards Board. That standard requires that I of the Public Transport Authority of Western of the Public Transport Authority of Western as designed. I conducted my engagement in comply with relevant ethical requirements relating Australia for the year ended 30 June 2019 Australia for the year ended 30 June 2019. accordance with Standard on Assurance to assurance engagements. included on the Authority’s website. The Engagements ASAE 3150 Assurance The key performance indicators are the key An assurance engagement involves performing Authority’s management is responsible for the Engagements on Controls issued by the effectiveness indicators and the key efficiency procedures to obtain evidence about the amounts integrity of the Authority’s website. This audit Australian Auditing and Assurance Standards indicators that provide performance information and disclosures in the key performance does not provide assurance on the integrity of Board. That standard requires that I comply with about achieving outcomes and delivering services. indicators. It also involves evaluating the relevance the Authority’s website. The auditor’s report relevant ethical requirements and plan and In my opinion, in all material respects, the key and appropriateness of the key performance refers only to the financial statements and key perform my procedures to obtain reasonable performance indicators of the Public Transport indicators against the criteria and guidance in performance indicators described above. It does assurance about whether, in all material respects, Authority of Western Australia are relevant and Treasurer’s Instruction 904 for measuring the not provide an opinion on any other information the controls are suitably designed to achieve the appropriate to assist users to assess the extent of outcome achievement and the efficiency which may have been hyperlinked to/from these overall control objectives and the controls, Authority’s performance and fairly represent of service delivery. The procedures selected financial statements or key performance necessary to achieve the overall control indicated performance for the year ended 30 depend on my judgement, including the indicators. If users of the financial statements and objectives, were implemented as designed. June 2019. assessment of the risks of material misstatement key performance indicators are concerned with An assurance engagement to report on the the inherent risks arising from publication on a The Chief Executive Officer’s Responsibility for the of the key performance indicators. In making design and implementation of controls involves these risk assessments I obtain an understanding website, they are advised to refer to the hard Key Performance Indicators performing procedures to obtain evidence about of internal control relevant to the engagement in copy of the audited financial statements and key The Chief Executive Officer is responsible for the suitability of the design of controls to achieve order to design procedures that are appropriate in performance indicators to confirm the information the preparation and fair presentation of the key the overall control objectives and the the circumstances. contained in this website version of the financial performance indicators in accordance with implementation of those controls. The statements and key performance indicators. the Financial Management Act 2006 and the I believe that the evidence I have obtained is procedures selected depend on my judgement, Treasurer’s Instructions and for such internal sufficient and appropriate to provide a basis for including the assessment of the risks that control as the Chief Executive Officer determines my opinion. controls are not suitably designed or necessary to enable the preparation of key implemented as designed. My procedures My Independence and Quality Control performance indicators that are free from material included testing the implementation of those Relating to the Reports on Controls and misstatement, whether due to fraud or error. controls that I consider necessary to achieve the Key Performance Indicators In preparing the key performance indicators, the Caroline Spencer overall control objectives. I have complied with the independence Chief Executive Officer is responsible for Auditor General I believe that the evidence I have obtained is requirements of the Auditor General Act 2006 identifying key performance indicators that are sufficient and appropriate to provide a basis for and the relevant ethical requirements relating to For Western Australia relevant and appropriate having regard to their my opinion. assurance engagements. In accordance with Perth, Western Australia purpose in accordance with Treasurer’s ASQC 1 Quality Control for Firms that Perform 5 September 2019 Instruction 904 Key Performance Indicators. Limitations of Controls Audits and Reviews of Financial Reports and Because of the inherent limitations of any internal Auditor General’s Responsibility Other Financial Information, and Other Assurance control structure it is possible that, even if the As required by the Auditor General Act 2006, my Engagements, the Office of the Auditor General controls are suitably designed and implemented responsibility as an assurance practitioner is to maintains a comprehensive system of quality as designed, once the controls are in operation, express an opinion on the key performance control including documented policies and the overall control objectives may not be indicators. The objectives of my engagement are procedures regarding compliance with ethical achieved so that fraud, error, or noncompliance to obtain reasonable assurance about whether requirements, professional standards and with laws and regulations may occur and not be the key performance indicators are relevant and applicable legal and regulatory requirements. detected. Any projection of the outcome of the appropriate to assist users to assess the agency’s evaluation of the suitability of the design of performance and whether the key performance controls to future periods is subject to the risk indicators are free from material misstatement, that the controls may become unsuitable whether due to fraud or error, and to issue an because of changes in conditions. auditor’s report that includes my opinion.

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3.9 Key performance indicators Summary of KPIs Actual compared to budget targets Relationship to Government Strategic Goals The following table provides a summary of Key Performance Indicators against criteria included in the The following table depicts the relationship between the Government’s Strategic Goals and desired latest Resource Agreement between the Chief Executive Officer, Minister for Transport and the Treasurer. outcomes and services that the PTA provides in order to achieve those goals. The key effectiveness These have been included in the latest Budget Paper. indicators measure the extent of impact of the delivery of services on the achievement of desired outcomes. The key efficiency indicators monitor the relationship between the service delivered and the 2018-19 2018-19 Variation resources used to produce the service. Target Actual Key Effectiveness Indicators Government strategic goal PTA desired outcomes PTA service output Outcome 1: Accessible, reliable and safe public transport system 1. Metropolitan and Regional Passenger Services Use of public transport – passengers per service kilometre: Accessible, reliable and safe Better Places - A quality 2. Country Passenger Rail and Road Coach Services Metropolitan bus services 1.16 1.14 -0.02 public transport system environment with 3. Regional School Bus Services Metropolitan train services 2.93 2.81 -0.12 liveable and affordable Metropolitan ferry services (a) 13.45 11.80 -1.65 Protection of the long term communities and Regional bus services 0.54 0.519 -0.021 vibrant regions. functionality of the rail corridor 4. Rail Corridor and Residual Freight Issues Management Country passenger rail services 0.19 0.184 -0.006 and railway infrastructure Country passenger road coach services 0.06 0.059 -0.001 Note: The key performance indicators and the variances are calculated based on original source data and the results are Accessible public transport: reported with rounding to the nearest appropriate decimals. The proportion of street addresses within the Perth Public Transport Area which 85.00% 84.9% -0.13% are within 500 metres of a Transperth stop providing an acceptable level of service Financial targets: Actual compared to budget targets Metropolitan and regional passenger services reliability: Bus services within four minutes of scheduled time 85% 85% 0% The following table provides a comparison of the financial targets and outcomes against criteria included Train arriving within four minutes of scheduled time 95% 96% 1% in the Resource Agreement between the Chief Executive Officer, Minister for Transport and the Treasurer. Ferries arriving within three minutes of scheduled time 96% 97% 1%

2019 2019 Variation (2) Notes Country passenger rail and road coach services reliability: Prospector arriving within 15 minutes of scheduled time (b) 80% 57% -23% Target (1) Actual $000 $000 $000 Australind arriving within 10 minutes of scheduled time 90% 91% 1% Total cost of services (expense limit) 1,479,389 1,476,947 (2,442) MerredinLink arriving within 10 minutes of scheduled time (b) 90% 85% -5% (sourced from Statement of Comprehensive Income) AvonLink arriving within 10 minutes of scheduled time (b) 90% 98% 8% Road Coaches arriving within 10 minutes of scheduled time 95% 96% 1% Net cost of services 1,189,026 1,191,742 2,716 (sourced from Statement of Comprehensive Income) School Bus availability at arrival/departure time: Satisfaction with School Bus availability at arrival/departure time 99% 99.9% 0.9% 6,288,146 7,321,256 1,033,110 (a) Total equity Level of overall customer satisfaction - customer satisfaction index: (sourced from Statement of Financial Position) Metropolitan bus services 88% 91% 3% Approved salary expense level 181,190 178,806 (2,384) (b) Metropolitan train services 92% 95% 3% Agreed borrowing limit (where applicable) 2,372,718 2,372,718 0 Metropolitan ferry services 99% 98% -1% Country passenger rail and road coach services 92% 90% -2% (1) As specified in the revised Budget Statement estimates 2018-19. (2) Further explanations are contained in Notes 2.2, 3.1, 10.11 ‘Explanatory statement’ to the financial statements. Customer perception of safety - independent external surveys: Train station - daytime 96% 98% 2% (a) Equity increase by $1.03 billion. The variation is mainly due to the revaluation of the Freight network infrastructure. (b) The variation of $2.4 million is due to vacant frontline positions (i.e. Transit Officers). Onboard train - daytime 97% 98% 1% Train station - night-time (c) 70% 75% 5% 2019 2019 Variation Notes Onboard train - night-time (c) 76% 82% 6% Agreed limit (1) Actual Bus station - daytime 98% 98% $000 $000 $000 Onboard bus - daytime 99% 99% Agreed working cash limit 71,470 69,086 (2,384) (a) Bus station - night-time 75% 77% 2% (a) The variation is due to the optimisation of cash management. Onboard bus - night-time 83% 84% 1% Level of notifiable safety occurrences - notifiable occurrences: Category A: occurrences per million passenger boardings (d) 0.23 0.29 0.06 Category A: occurrences per million train kilometres (d) 0.72 0.75 0.03 Category B: occurrences per million passenger boardings (e) 12.26 25.68 13.42 Category B: occurrences per million train kilometres (e) 37.1 66.41 29.31 Regional school bus services: notifiable occurrences (accidents) reported 19 7 -12 each school year (f) Return on Construction Expenditure n/a 1.51

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2018-19 2018-19 e) The indicators for Category B incidents per Certification of KPIs Variation Target Actual million passenger boardings and per million For the year ended 30 June 2019 Outcome 2: Protection of the long-term functionality train kilometres were 109.45 per cent and of the rail corridor and railway infrastructure 79.01 per cent above the targets respectively I hereby certify that the key performance Number of lease breaches Nil Nil mainly due to lower than forecast train indicators are based on proper records, are Key Efficiency Indicators boardings and higher than forecast CAT B relevant and appropriate for assisting users Service 1: Metropolitan and Regional Passenger Services incidents and train kilometres. to assess the Public Transport Authority’s Average cost per passenger kilometre performance, and fairly represent the performance Transperth bus operations $1.30 $1.29 -$0.01 The variance is due in part to the increase in of the Public Transport Authority of Western Transperth train operations $0.58 $0.59 $0.01 the number of trespasses that was recorded Australia for the financial year ended Transperth ferry operations (g) $1.72 $1.44 -$0.28 on the network and is categorised as CAT B 30 June 2019. Average cost per 1000 place kilometres as well as a change in the report of level Regional bus services $73.72 $72.10 -$1.62 crossing incidents that have seen a dramatic Total passenger place kilometres (millions) increase in the number of CAT B reportable Regional bus services 312.053 312.053 0.000 incidents. Service 2: Country Passenger Rail and Road Coach Services f) School Bus notifiable occurrences (accidents) Average cost per passenger kilometre in 2018-19 reached seven, 63.16 per cent Richard Sellers Transwa rail $0.59 $0.58 -$0.01 below the 2018-19 target of 19. Of the seven Accountable Authority Transwa road coaches $0.29 $0.28 -$0.01 accidents, 100 per cent relates to ‘not at 3 September 2019 Service 3: Regional School Bus Services fault’ accidents. Average cost per contracted kilometre : School bus services $3.87 $3.80 -$0.07 School Bus Services continues to work with Service 4: Rail Corridor and Residual Freight Issues Total cost of managing the rail freight corridor and residual freight issues $153,611,000 $149,004,000 -$4,607,000 school bus contractors and drivers on road safety matters. The ongoing execution of the a) Passengers per service kilometre for ferry c) Night-time safety perceptions on board trains Contract School Bus Safety Management Plan was 12.29 per cent below the 2018-19 target were 7.89 per cent above the 2018-19 target (SMP) is an effective tool that complements due to a slight 0.15 per cent decrease in driven by higher safety perceptions recorded the broader road safety strategies. Our service kilometre delivery combined with a on the Joondalup and Mandurah lines. comprehensive preventative maintenance and significant 12.44 per cent decrease in Midland and Armadale lines also recorded safety training programs ensures that students boardings as usage stabilises after the the highest results since 2006. are always riding a safe, secure and reliable opening of Elizabeth Quay. bus. Additionally, the school bus fleet continues Safety perceptions at train stations/ to focus on innovation and safety to ensure b) The on time running result of the Prospector interchanges at night were 7.14 per cent that buses are safer. Safety features such as was 29.31 per cent below the target mainly above the target driven by higher safety seat belt and child check alarms are now due to a number of delays associated with perceptions recorded on the Joondalup standard on today’s school buses. crossings (912 instances - 51 per cent) and and Mandurah lines. track related issues (434 instances - 24 per g) Ferry total costs per passenger kilometre was d) The indicators for Category A incidents per cent) as a result of maintenance work 5.05 per cent below the 2018-19 target million passenger boardings and per million undertaken by Arc Infrastructure. mainly due to a 17.03 per cent decrease in train kilometres were 26.79 per cent and total costs ($282k) and a 12.45 per cent The OTR result of the MerredinLink was 4.75 per cent above the 2018-19 targets decrease in ferry passenger kilometres (0.135 5.2 per cent below the 2018-19 target due respectively mainly due to lower than million) driven by a 12.44 per cent decrease in to a number of delays associated with budgeted train boardings and higher than ferry patronage. crossings (124 instances - 67 per cent). budgeted CAT A incidents and train kilometres. The OTR result of the AvonLink was 8.38 per cent above the target with only 80 delays The variance is due in part to the increase in mainly crossings (46 instances) following the the number of Slip, Trip or Fall that was completion of track works undertaken in recorded on the network. 2016 and 2017.

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3.10 Audited KPI Report Transperth Bus Services Other contributing factors impacting on bus Following large annual increases in train service patronage in 2018-19 include: kilometres in the previous seven years, train Measuring Performance service kilometres increased further by 0.258m Target: 1.16 • slowing economy in 2018-19, with continued in 2018-19 (from 21.623m in 2017-18 to Outcome 1: Accessible, reliable 2018-19 1.14 high unemployment (6.1 per cent) and office 21.881m) and exceeded the 2018-19 target and safe public transport system vacancy rate in Perth CBD (18.5 per cent) 2017-18 1.14 by 1.85 per cent. impacting on discretionary travel, work-related Effectiveness Indicators 2016-17 1.17 trips and CBD commuters. This was largely due to the ongoing expansion The PTA’s effectiveness in providing an of urban train fleets with increased capacity and 2015-16 1.23 • one fewer school day compared to 2017-18 extra trains on all lines in addition to train shuttles accessible, reliable and safe public transport Passengers per service kilometre resulting in a decrease in student patronage system is measured using the following key (-0.36 per cent; 32,014). and high-frequency train services provided for Passengers per service kilometre on Transperth Stadium events. effectiveness indicators for: • some disruptions to bus services privately buses was 2.12 per cent below the 2018-19 1. Use of public transport operated by bus contractor, Transdev. Total train boardings in 2018-19 also increased target and 0.1 per cent below the 2017-18 result. further to 61.540m in 2018-19 from 60.600m in 2. Accessible public transport This was mainly due to a 1.03 per cent increase • increase in total visitors to/within WA in 2018 2017-18 and 60.092m in 2016-17 largely due to 3. Service reliability in bus service kilometres and a 0.92 per cent (15.84 per cent; 4.731m). increases in boardings on the Mandurah Line increase in bus patronage compared to 2017-18. • increase in population of Greater Perth from 4. Level of overall customer satisfaction (0.355m), Armadale Line (0.248m), Midland Line 2.038m in 2017 to 2.059m in 2018 (up 1.06 Customer perception of safety In 2018-19, bus service kilometres increased (0.21m) and special event patronage (0.327m). 5. per cent). further to 69.817 million from 69.108m in 6. Level of notifiable occurrences Other contributing factors impacting on train 2017-18 to meet the service demand associated • continued increase in the total number of Return on Construction Expenditure (RCE) patronage in 2018-19 include: 7. with special events at Perth Stadium and an registered passenger vehicles, with WA having increase of 0.725m in bus boardings (from the strongest growth rate of all States recorded • lower number of school days compared to 1. Use of Public Transport 78.541m in 2017-18 to 79.267m). in the five year period from 2010 to 2015. 2017-18 reducing student patronage • significant increases in average fuel prices in (0.066m). The use of public transport is measured by The increase in bus patronage in 2018-19 and Perth metropolitan during the first five months comparing the annual number of passengers ongoing increase in bus service kilometres since • slowing economy in 2018-19 with continued of 2018-19. carried with the number of service kilometres. 2011-12 reflects PTA’s commitments and high unemployment (6.1 per cent) and office Service kilometres are kilometres operated on strategies to continuously providing safe, vacancy rate in Perth CBD (18.5 per cent) scheduled passenger services and exclude customer-focussed, reliable and accessible Transperth Train Services impacting on work-related trips and CBD “non-productive running” i.e. travelling to or from public transport services to the growing patronage. the depot to commence a service trip or re- population in the inner and expanding outer Target: 2.93 • increase of 1.06 per cent in population positioning to commence another service trip. suburbs as well as reducing traffic congestion, of Greater Perth from 2.038m in 2017 2018-19 2.81 to 2.059m in 2018. The measure indicates the extent to which road accidents and pollution. 2017-18 2.80 services provided, as represented by the number During the year, high-frequency shuttle buses • increases in total visitors to/within WA in 2018 of kilometres operated, are being utilised. An and special event buses operating on nine 2016-17 2.91 (15.84 per cent; 4.731m). increasing trend in the indicator will generally suburban routes, provided efficient transport 2015-16 3.21 signify that patronage is rising at a rate greater services to large crowds before and after the 45 Passengers per service kilometre than the rate of increase in service kilometres Special Events held at Perth Stadium in its first operated and represents an improvement in full year of operation. In addition, there were over Passengers per service kilometre on Transperth effectiveness as well as an increase in the use 940 new scheduled trips associated with trains reached 2.81, 4.01 per cent below the of public transport. opening of the new Curtin Central Bus Station in 2018-19 target and 0.35 per cent above the This effectiveness indicator is applied to each February 2019 and a major advertising campaign 2017-18 result. This was mainly due to a 1.55 mode of public transport. The indicator is based launched by Transperth in 2019 effectively per cent increase in patronage offset by a 1.19 on total boardings on Transperth services and attracting new and lapsed users to public per cent increase in service kilometres compared includes fare-paying boardings plus free travel transport services. to 2017-18. and transfers. Transfers are boardings which occur either between services within the same mode or between modes during the specified ticket transfer time.

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Regional Town Bus Services In comparing actual to budget figures, the Other factors impacting on ferry patronage in Transwa Road Coach Services Intra-town services operate within rural town variance for 2018-19 reflects that there were 2018-19 include: 1001 more inter-town passengers carried and boundaries, while inter-town services run • slowing economy in 2018-19 with continued Target: 0.060 between regional centres. 11,804 less service kilometres operated. high unemployment and office vacancy rate in 2018-19 0.059 The decrease of 1.44 per cent in the combined Perth CBD impacting on CBD commuters. Intra-Town and Inter-Town Service 2017-18 0.059 patronage result for the intra-town and inter- • weather conditions with reductions during Target: 0.54 town compared to 2017-18 reflecting economic overly hot, wet, or windy weather. 2016-17 0.057 downturn, low population growth rate in the 2018-19 0.519 • one fewer school day compared to 2017-18 State’s regional areas (0.44 per cent) and higher 2015-16 0.058 resulting in a 21 per cent decrease in student 2017-18 0.534 unemployment rate (6.1 per cent). Passengers per service kilometre patronage. 2016-17 0.595 • increases in total visitors to/within WA in 2018 The 2018-19 result reached 0.0587, 0.44 per 2015-16 0.709 Transperth Ferry Services (15.84 per cent - 4.731m). cent below the 2017-18 result of 0.0589 due to a Passengers per service kilometre 0.82 per cent increase in road patronage from Target: 13.45 181,522 in 2017-18 to 183,009 in 2018-19 and Passengers per service kilometre reached 0.519, Transwa Rail Services a 1.27 per cent increase in service kilometres 2018-19 11.80 3.9 per cent below the 2018-19 target and 2.89 from 3.079m in 2017-18 to 3.118m in 2018-19. per cent below the 2017-18 result. 2017-18 12.89 Target: 0.190 The 2018-19 result is 2.19 per cent less than the This was mainly due to a 1.49 per cent increase 2016-17 14.00 2018-19 0.184 annual target of 0.06 due to a 0.17 per cent in service kilometres to 4.320 million from increase in patronage (309 patrons) and a 1.25 2015-16 13.21 2017-18 0.189 4.256m in 2017-18 and a 1.44 per cent per cent increase in service kilometres decrease in patronage to 2.242m from the Passengers per service kilometre 2016-17 0.202 (38,391kms) due to a number of special services revised 2017-18 patronage result of 2.274m being provided to meet high demand and the Passengers per service kilometre for ferry was 2015-16 0.207 which includes additional passengers for impact of route rationalisation changes (effective 8.49 per cent below the 2017-18 result due to a Passengers per service kilometre Leavers’ week in 2017. September 2018). 0.35 per cent increase in service kilometre The 2018-19 result is 2.97 per cent less than the In 2018-19, with one exception (Karratha), all delivery combined with a 8.17 per cent decrease 2017-18 result of 0.189 due to a 3.04 per cent other intra-town services showed decreases in in boardings as usage stabilises after the opening 2. Accessible Public Transport passengers carried per service kilometre when decrease in rail patronage mainly attributable to of Elizabeth Quay in January 2016. Accessibility to public transport, in terms of compared to 2017-18. The towns that showed the Australind which has decreased by 7.53 per service coverage, is measured as the proportion decreases included Albany, Bunbury, Broome, Passengers per service kilometre for ferry was cent compared to 2017-18. This is a result of the of Property Street Addresses (PSA) within the Busselton, Carnarvon, Collie, Esperance, 12.29 per cent below the 2018-19 target due to Australind being offline for a significant amount of Perth Public Transport Area (PPTA) which are Geraldton, Kalgoorlie, Kununurra, Manjimup, a slight 0.15 per cent decrease in service time due to mechanical issues (e.g. corrosion within 500 metres of a Transperth stop providing Narrogin and Port Hedland. kilometre delivery combined with a significant correction work). 12.44 per cent decrease in boardings as usage an acceptable level of service. The PPTA defines The 2018-19 result is 3.37 per cent less than In comparing actual to budget figures, the stabilises after the opening of Elizabeth Quay. the core operational areas for Transperth variance for 2018-19 reflects that there were the annual target due to a 5.05 per cent services. 32,302 less intra-town passengers carried and During the year, ferry service kilometres increased decrease in rail patronage. This is mainly “Acceptable Service Level” (ASL) is defined as an 100,566 additional service kilometres operated. further to 54,929kms from 54,736kms in attributable to a 8641 patron decrease for the 2017-18 and 53,435kms in 2016-17. Australind, due to significant mechanical issues hourly service during the day with at least three During the year, inter-town services across the in 2018-19 combined with a 1948 patron trips per hour (i.e. at 20-minute intervals) in the board showed a 5.73 per cent decrease in decrease for the Prospector in comparison peak flow direction in the morning and/or passengers carried per service kilometre when to the targets for the year. afternoon peak hours, excluding dedicated compared to 2017-18. However, several inter- school bus services. town services individually showed increases in The indicator uses PSA data from Landgate and the year to year comparison. Those services service information and stop location data from included Perth to Port Hedland, Kalgoorlie to the Transperth Route Information System (TRIS). Laverton, Kalbarri shuttle service and the Monkey Mia shuttle service.

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The measure demonstrates the extent to which 3. Service Reliability In 2018-19, the number of cancelled train Transperth Ferry Services services decreased significantly by 46 per cent the PTA meets its accessibility standards in the According to an independent survey which while on time services increased by 0.97 per cent Target: 96% Perth metropolitan area. measured customer satisfaction, service reliability compared to 2017-18. This was due to is regarded as one of the most significant 2018-19 96.79% Target: 85% decreases in delays related to weather, security, characteristics of a quality service. Service 2017-18 95.44% 2018-19 84.87% electrical overhead and passengers. reliability is essentially a combination of two main 2016-17 96.49% 2017-18 85.19% factors, punctuality and consistency. Factors generally affecting train service reliability include passenger related delays causing longer 2015-16 97.92% 2016-17 84.74% Services are considered to be punctual if they dwell times at stations, special events, electrical arrive within a defined period of time after the Percentage of services arriving within ‘on-time arrival’ parameter 2015-16 84.73% and mechanical issues, level of notifiable scheduled arrival time. This parameter is referred The proportion of street addresses within the Perth Public occurrences and bad weather which result in to as “On Time Running” (OTR). The OTR of Transperth ferries in 2018-19 Transport Area (PPTA) which are within 500 metres of a slippery track conditions and trains travelling at a Transperth stop providing an acceptable level of service remained high at 96.79 per cent, 0.82 per cent Operation ‘OTR’ parameter reduced speed. above the 2018-19 target and 1.41 per cent Accessibility to public transport was 0.16 per cent Metropolitan and Regional Passenger Services above the 2017-18 result. below the 2018-19 target and 0.38 per cent Transperth Trains 4 minutes Transperth Bus Services below the 2017-18 result mainly due to a Transperth Buses 4 minutes Transwa Rail Services 3.71 per cent increase in the number of PSAs Transperth Ferries 3 minutes Target: 85% Indicators of the ‘OTR’ performance for Transwa within 500 metres of an ASL stop offset by a Country Passenger Rail and Road Coach Services 2018-19 85.30% rail services are reported separately for each 4.11 per cent increase in the total number of Transwa Rail service. PSAs within PPTA. 2017-18 85.62% Prospector 15 minutes 2016-17 84.26% These services operate on the freight rail The 2018-19 result of 84.87 per cent indicates Australind 10 minutes network which is managed and operated by Arc that 947,516 PSAs in Perth, out of 1,116,487 AvonLink 10 minutes 2015-16 85.14% Infrastructure (previously known as Brookfield Rail have ready access to acceptable level of public MerredinLink 10 minutes Percentage of services arriving within ‘on-time arrival’ parameter and WestNet Rail) under a long-term lease. transport services (defined as an hourly service Road Coaches 10 minutes during the day with at least three trips per hour in The OTR of Transperth buses in 2018-19 peak flow direction in the morning and/or Regional school bus services reached 85.3 per cent, 0.35 per cent above a. Prospector afternoon peaks). Drop off no less than ten minutes before school starts and pick up within ten minutes of school ending the target, 0.38 per cent below the 2017-18 Since 2008-09, the total number of PSAs result and higher than the results of seven Target: 80% The ‘OTR’ measure demonstrates the extent within PPTA has increased by 32.8 per cent years to 2017. 2018-19 57% to which the PTA meets its service reliability (0.276 million) from 0.841m to 1.116m to cater standards. This was due to improved journey times and 2017-18 50% for Perth’s growing population. The total number service reliability resulting from expanded Bus of PSAs within 500 metres of an ASL stop also 2016-17 36% Transperth Train Services Priority program including the opening of Charles increased by 38.93 per cent (0.266 million) due Street Bus Bridge and the associated bus lanes 2015-16 48% to bus service expansion ensuring maximum Percentage of services arriving within ‘on-time arrival’ parameter Target: 95% in June 2017, intersection upgrades and the number of people in the Perth metropolitan completion of Randford Road and Craig Street area and outer suburbs having ready access 2018-19 96.28% bus lanes in 2018. The OTR of the Prospector reached 57 per cent, to bus services. 2017-18 95.66% 29.31 per cent below the 2018-19 target of 80 2016-17 95.80% per cent due to a number of delays associated with crossings (912 instances - 51 per cent) and 2015-16 95.48% track related issues (434 instances - 24 per cent) Percentage of services arriving within ‘on-time arrival’ parameter as a result of maintenance work undertaken by Arc Infrastructure. The OTR of Transperth trains in 2018-19 reached Despite failing to meet the service reliability target 96.28 per cent, 1.34 per cent above the 2018-19 of 80 per cent in 2018-19, on time running has target of 95 per cent and 0.64 per cent above improved (up 12.13 per cent) in comparison to the 2017-18 result of 95.66 per cent representing the 2017-18 result due to a decrease in track the highest result achieved since 2003-04. related issues.

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b. Australind d. MerredinLink Regional School Bus Services The current indicator was introduced in July 2017 to replace the previous ‘on-time arrival’ Satisfaction with School Bus availability Target: 90% Target: 90% at arrival/departure time parameter which was to arrive at school no less than ten minutes before school starts and 2018-19 91% 2018-19 85% The Key Performance Indicator aims to ensure that School Bus Services run to timetable and/or departing within ten minutes of school ending. 83% 2017-18 79% 2017-18 frequency and it will measure the satisfaction of The previous ‘OTR’ indicator was no longer 2016-17 88% 2016-17 57% the service reliability through the online reported since January 2017 due to a restructure complaints register. This entails setting up a web of the School Bus Services staffing levels in 2016 2015-16 94% 2015-16 62% based reporting tool that can be accessed in and the transfer of the inspection function to the Percentage of services arriving within ‘on-time arrival’ parameter Percentage of services arriving within ‘on-time arrival’ parameter particular by parents and schools to report Department of Transport (DoT). breaches of on-time arrivals and departures. The OTR result for the Australind in 2018-19 The OTR result for the MerredinLink in 2018-19 Target: 99% has improved by 9.52 per cent compared to has improved by 8.66 per cent compared to The emphasis of the indicator is on the delivery of the 2017-18 result due to fewer crossing 2017-18 due to a reduction in track related the School Bus Services to meet community 2018-19 99.89% issues in 2018-19. on-time requirements and on performance related delays. 2017-18 99.65% improvements where the Contract Bus Services The 2018-19 result was 1.14 per cent above the The annual result is 5.2 per cent below 2018-19 Satisfaction with School Bus availability fail to meet the requirements. target for the year due to minimal delays during target due to a number of delays associated at Arrival / Departure Time 2018-19 with 44 per cent of delays relating to with crossings (124 instances - 67 per cent). Input Parameters: 2016-17 99.22% crossings (394 instances) and 36 per cent Contributing to the results is a number of input relating to mechanical issues (325 instances). parameters which are used to calculate the 2015-16 98.33% effectiveness indicator and these include: Percentage of services arriving c. AvonLink Transwa Road Coach Services within ’OTR’ parameter • Number of expected school bus service trips

Target: 90% = number of operating school bus services x In 2018-19, satisfaction with School Bus Target: 95% trips per day x service days in the year. availability at arrival/departure time reached 99.89 2018-19 98% 2018-19 96% • Number of satisfaction complaints. per cent, 0.9 per cent above the target of 99 per 2017-18 98% cent, 0.24 per cent above the 2017-18 result. 2017-18 97% Calculation: Overall there were four recorded instances 2016-17 70% • Outcome % = 100 x (Number of satisfaction 2016-17 97% of satisfaction complaints compared to 13 complaints / Number of expected school bus 2015-16 83% in 2017-18. 2015-16 98% service trips) Percentage of services arriving within ‘on-time arrival’ parameter SBS network encompasses 964 contract school Percentage of services arriving within ‘on-time arrival’ parameter • Rate of ‘Satisfaction with School Bus bus services, transports on average 25,664 The OTR result of the AvonLink reached 97.55 availability at arrival/departure time’ The OTR of the road coach services remained students on each school day and performed per cent, 0.07 per cent below the 2017-18 result = 100% - Outcome %. high at 96.44 per cent, 1.52 per cent above the 370,176 bus trips for the year which equates to of 98 per cent and 8.38 per cent above the 2018-19 target of 95 per cent and was The actual results are provided in the 33 million service kilometres. 2018-19 target with only 80 delays (mainly consistent with the results of the previous nine following tables: crossings 46 instances). At 99.89 per cent satisfaction rate, an accessible years, ranging from 97 to 98 per cent. Parameters Annual 2018-19 and reliable school bus service was provided to Number of School Bus 370,176 25,636 students on each school day meaning Service trips 369,776 bus trips operated to schedule. Number of Satisfaction 4 Complaints PTA maintains ongoing discussions with Satisfaction with School Bus stakeholders to ensure the high level of service availability at arrival/departure 99.89% reliability and customer satisfaction is maintained. time (%)

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4. Level of Overall Customer Overall satisfaction reached an all-time high result Transperth Bus Services During the year, overall level of dissatisfaction Satisfaction of 95 per cent, 3.26 per cent above the 2018-19 For the Transperth bus PSM, a total of 2942 bus reduced further to four per cent, the lowest target and 1.06 per cent above the near all-time dissatisfaction result in 24 years, 33.33 per cent The proportion of patrons who expressed overall patrons were surveyed. The sample of regular high results achieved in 2017 and 2018. below the near all-time low results achieved in satisfaction with their public transport service bus patrons comprised of: the previous three years. level, measures the public perception of The expressed level of dissatisfaction in 2018-19 • Adults aged 18 years or older, residing Transperth’s performance in providing a high- remained unchanged at one per cent, same as within the Perth Bus Contract region; The frequent reasons for dissatisfaction with the quality and attractive public transport service. the 2017-18 result, representing the equal bus system were issues relating to service • Current users of Transperth bus services all-time low dissatisfaction results. frequency, insufficient off-peak services and The measure for Transperth services is derived (excluding school students); and service reliability. from an extensive annual survey conducted by The main reasons for dissatisfaction related • Patrons who travel on bus at least once independent pollsters. The survey, known as the predominantly to crowding issue or lack of per fortnight. In 2018-19, satisfaction with bus service ‘Passenger Satisfaction Monitor’ (PSM), provides available seating in peak times. frequency during peak times reached an all-time The sample error estimate was within ± 2-3 per an objective, unbiased view over time of patrons’ high result of 88 per cent, 1.15 per cent above In 2018-19, overall satisfaction with peak-time cent and represents score differences required to overall satisfaction with the system, e.g. safety, the near all-time high results of the previous two service frequency increased to 89 per cent, reach the 95 per cent confidence level. years. This was driven by higher satisfaction on-time running, courtesy of staff, service the highest result since 2002, driven by higher frequency and station amenities. The information results achieved by Circle Route (100 per cent), satisfaction result recorded on Joondalup Target: 88% Kalamunda (97 per cent), Canning (92 per cent), is used by Transperth to develop strategies for Line (93 per cent), Mandurah and Armadale 2018-19 91% Marmion, Claremont and Joondalup (89 per cent). improving service performance and infrastructure. (92 per cent). 2017-18 89% Satisfaction with bus frequency during off-peak The pollsters interview a large sample of Satisfaction with train service frequency during weekdays and weeknights also reached all-time passengers in lengthy face-to-face surveys. off-peak weekdays in 2018-19 also increased to 2016-17 89% high results of 81 per cent and 59 per cent Interviewers are assigned to various services and 85 per cent, the highest result since 2010 due to 2015-16 89% respectively. transit station locations over a four-week period higher satisfaction results recorded on Midland covering the working week and weekend. Line (90 per cent), Armadale (89 per cent) and % of respondents either “very satisfied” or “satisfied” The new all-time high satisfaction and low Mandurah (86 per cent) while dissatisfaction dissatisfaction results reflect service expansion, Overall satisfaction reached an all-time high result Transperth Train Services result reduced further to an equal all-time low increased service kilometres and bus of 91 per cent, 3.41 per cent above the 2018-19 For the train PSM, a total of 1004 train patrons result of three per cent, the lowest level since frequencies, and expanded bus priority programs target, 2.25 per cent above the near all-time high were surveyed. The overall sample comprised of: 1996. to meet increased service demand. results achieved in the previous three years. • Adults aged 18 years or over residing within The new all-time high overall satisfaction result in In 2018-19, high-frequency shuttle buses and The all-time best result was driven by higher the Perth metropolitan area; 2018-19 and equal all-time low results achieved special event buses operating on nine suburban satisfaction results recorded for the Perth, in 2017-18 and 2016-17 reflect increased routes efficiently transported large crowds before • Current users of Transperth train services Fremantle and Joondalup CAT services (97 per benefits of using train services resulting from and after special event days at Perth Stadium. In (excluding school students); and cent), Kalamunda service (96 per cent), Canning continuous improvements in train service delivery February 2019, there were over 940 scheduled • Patrons who travel on trains at least once and Claremont services (95 per cent) followed by and service expansion with additional railcars and trips associated with the opening of the new per fortnight. Joondalup and Circle Route (93 per cent) and increased service frequency to meet the service Curtin Central Bus Station. The sample error estimate was within ± 3-4 per Marmion (92 per cent). demand of Perth’s growing population and cent and represents score differences required to Bus journey times, service reliability and traffic special events. Morley, Southern River/Armadale and Midland congestion have also improved as a result of the reach the 95 per cent confidence level. recorded higher dissatisfaction results in 2018-19 In 2018-19, high-frequency Stadium shuttles and opening of Charles Street Bus Bridge in June compared to overall satisfaction result. extra suburban trains efficiently transported large 2017, ongoing intersection upgrades along busy Target: 92% crowds before and after the 45 special events bus routes and the completion of the Randford 2018-19 95% held at Perth Stadium in its full year of operation. Road and Craig Street bus lanes in 2018.

2017-18 94%

2016-17 94%

2015-16 92%

% of respondents either “very satisfied” or “satisfied”

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Transperth Ferry Services Transwa Train and Road Coach Services 5. Customer Perception of Safety For the Transperth ferry PSM, a total of 200 ferry An independent passenger satisfaction survey is Safety perceptions are an important factor in the Target: 70%

patrons were surveyed. The overall sample undertaken annually for each service: Australind, public deciding whether to use public transport. 2018-19 75% comprised of: Prospector, AvonLink, MerredinLink and Road The PTA is continuing to invest in security-related Coach. infrastructure and uses risk based resource 2017-18 76% • Adults aged 18 years or older, residing within Stations allocation to enhance security staffing in specific the Perth metropolitan who used the ferry at In 2018-19, a total of 1194 country services 2016-17 73% areas of vulnerability. This increase in presence at least once per fortnight patrons were surveyed via a self-completion strategic times and locations has ensured that 2015-16 76% • Patrons who were users of Transperth ferry questionnaire. customers can see the tangible measures being services while visiting Perth The sample error estimate was within ± 3-5 per taken to increase their safety. Target: 76% • School students were excluded from the cent and represents score differences required to Customer perceptions of safety are measured 2018-19 82% sample. reach the 95 per cent confidence level. through data gathered in the Passenger 2017-18 82% The sample error estimate was within ± 10 per Satisfaction Monitor (PSM) which distinguishes On-board Target: 92% trains cent and represents score differences required to between on-train and on-bus and at stations, at 2016-17 81% reach the 95 per cent confidence level. 2018-19 90% night and during the day for the Transperth train 2015-16 79% 2017-18 92% and bus services. Target: 99% Customer perception of safety – Night-time 2016-17 91% 2018-19 98% Transperth Train Services The indicator for perceived safety at train stations 2015-16 91% 2017-18 99% at night reached a near all-time best result of 75 Target: 96% % of respondents either “very satisfied” or “satisfied” per cent, 7.14 per cent above the 2018-19 target 2016-17 99% and 1.32 per cent below the equal all-time high Overall satisfaction reached 90 per cent, 2.17 per 2018-19 98% 2015-16 95% results of 76 per cent achieved in 2017-18 and cent below the 2018-19 target and the 2017-18 Stations 2017-18 99% 2015-16. % of respondents either “very satisfied” or “satisfied” result, and is consistent with the high results achieved in the nine years to 2017, ranging from 2016-17 98% The indicator for perceived safety on board Overall satisfaction with Transperth ferry services 90 per cent to 93 per cent. Overall dissatisfaction trains at night in 2018-19 reached an equal reached 98 per cent, 1.01 per cent below the 2015-16 99% remained unchanged at two per cent in 2018-19. all-time high result of 82 per cent, 7.89 per cent 2018-19 target and the near all-time high results above the 2018-19 target and same as the achieved in the previous two years. Transwa has continued to provide an exemplary Target: 97% 2017-18 result. service transporting people around regional The 2018-19 result was two per cent below the 98% Western Australia. 2018-19 During the year, night-time safety perception at all-time high result achieved in 2015 but higher Armadale Line stations reached 71 per cent, than the high satisfaction results reported in 2016 On-board 2017-18 98% trains 20.34 per cent above the 2017-18 result, being and the 16 years to 2014 (ranging from 95 per 2016-17 98% the highest result since 2006. Safety perception cent to 97 per cent). 2015-16 98% at Mandurah Line stations remained unchanged Satisfaction with ferry cost of fares increased to at 83 per cent and was higher than the results 91 per cent, 7.06 per cent above the 2017-18 Customer perception of safety – Daytime reported in 2017 and the eight years to 2015. result, representing the highest result achieved Perceived safety at Midland Line stations reached since 2008. The indicator for perceived safety at train stations 69 per cent, same as the 2017-18 result but during the day reached 98 per cent, 2.08 per Overall dissatisfaction in 2018-19 reached a higher than the results of 2017 and the eight cent above the 2018-19 target, 1.01 per cent years since 2006. near all-time low result of one per cent from zero below the equal all-time high result achieved in per cent reported in 2017-18 and the four years 2017-18 and is consistent with the results of the Night-time safety perception on board trains on to 2015. past ten years ranging from 97 per cent to the Midland and Armadale lines recorded the In 2018-19, cleanliness on board, speed of the 99 per cent. highest results since 2006, representing increases trip, personal safety on board the ferry and at the of 1.27 per cent and 10.45 per cent respectively The indicator for perceived safety on board trains over 2017-18. Joondalup also achieved the jetty during day-time and night-time achieved a reached 98 per cent, 1.03 per cent above the perfect satisfaction result of 100 per cent second best result of 88 per cent since 2006, 2018-19 target and is consistent with the results 3.53 per cent above the 2017-18 result. followed by punctuality (99 per cent) and of the past 13 years, ranging from 98 per cent to availability of seats (98 per cent). 99 per cent.

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Safety perception results continued to exceed The indicator for perceived safety on board buses The night-time safety perception on board buses Target: 0.23 respective targets of 2018-19 and the previous during the day reached 99 per cent, same as the in 2018-19 reached 84 per cent, 1.2 per cent four years mainly due to ongoing effective target and the very high results reported in the above the 2018-19 target, 3.45 per cent below 2018-19 0.29 Category A measures taken by Transperth to address previous eight years. the previous year’s best result, same as the occurrences 2017-18 0.43 security concerns which include: 2013-14 and 2015-16 results but higher than the per million In 2018-19, day-time safety perception on board passenger results reported between 2006 and 2013. boardings 2016-17 0.30 • Risk based resource allocation, mobile patrols buses and at bus stations/interchanges in being strategically located across the network Kalamunda, Claremont and Circle Route contract This was driven by the highest results achieved 2015-16 0.10 and ensuring a greater support and security areas reached 100 per cent. since 2006 by Circle Route (97 per cent) and Target: 0.72 presence on all lines and at stations Canning (87 per cent) and higher results Day-time safety perception on board buses in recorded for Rockingham/Mandurah (93 per 2018-19 0.75 • Sophisticated CCTV system and major Canning, Southern River/Armadale contract Category A cent), Kalamunda (94 per cent), Marmion and occurrences upgrades to station lighting areas and at bus stations/interchanges in per million 2017-18 1.11 Midland (87 per cent). train • Joint Police and PTA targeted operations and Rockingham/Mandurah areas also reached kilometres 2016-17 0.80 enhanced security coverage at stations and 100 per cent. on late evening trains. 6. Level of Notifiable Occurrences 2015-16 0.28

In 2019, PTA has 362 transit officers and senior Target: 75% Rail Safety Notifiable occurrences – Rail safety security staff providing visible security and greater Railway safety incidents are recorded and 2018-19 77% support across the network. Many stations are At bus reported to the Office of the National Rail Safety manned after business hours and on average, stations / 2017-18 82% Regulator (ONRSR). These incidents are termed inter- The indicators for Category A incidents per 99 per cent of trains operating after 7pm have changes ‘Notifiable Occurrences’. PTA’s reporting systems 2016-17 75% million passenger boardings and per million train transit officers on board. for the notification of Category ‘A’ and Category kilometres were above the respective 2018-19 2015-16 76% ‘B’ occurrences comply with the Rail Safety targets by 26.79 per cent and 4.75 per cent. Transperth Bus Services National Law (WA) Regulations 2015 [section 57 During the year, Category A incidents per million Target: 83% (a)] and the Rail Safety National Law (WA) Act Target: 98% 2015 [section 44]. passenger boardings and per million train 2018-19 84% kilometres were 31.8 per cent below the 2018-19 98% Rail safety KPIs are reviewed annually and respective 2017-18 results, driven by a significant At bus On-board 2017-18 87% formulated by considering trends from previous stations / 2017-18 98% buses (30.77 per cent) decrease in the number of CAT inter- years coupled with proposed safety improvement changes 2016-17 83% A incidents from 26 in 2017-18 to 18 in 2018-19. 2016-17 98% programs. 2015-16 84% Incidents related to Level Crossing and 2015-16 97% Category ‘A’ occurrences are those resulting in Customer perception of safety – Night-time Suspected/Attempted Suicide which were serious injury, death, or significant damage. beyond PTA controls also decreased by 100 per Target: 99% Category ‘B’ occurrences are occurrences with cent and 11.11 per cent respectively offset by an the potential to cause a serious injury, death or increase in Slip, Trip or Fall incidents. 2018-19 99% The indicator for perceived safety at bus stations/ significant damage. Train kilometres and boardings increased by 2017-18 99% interchanges at night reached 77 per cent, 2.67 On-board Performance indicators for both Category ‘A’ and 1.57 per cent and 1.54 per cent respectively over buses per cent above the target, 6.1 per cent below the 2016-17 99% Category ‘B’ occurrences are presented against 2017-18 due to increased capacity and service all-time high result achieved last year but higher million passenger boardings and million train frequency to meet service demand resulting from 2015-16 99% than the results reported in 12 years to 2017. kilometres. A low rate of incidents indicates that Perth’s growing population, 45 special events at Customer perception of safety – Daytime In 2018-19, night-time safety perception at sound safety procedures and risk management Perth Stadium in its full year of operation, the stations/interchanges along Circle Route contract procedures/controls exist and are operating opening of the Edgewater Multi-Storey Carpark in effectively throughout the rail system. The indicator for safety perception at bus area reached 100 per cent, 6.38 per cent above 2017, Aubin Grove Station and thousands of car stations/interchanges during the day reached 98 the 2017-18 result. Safety perception in Midland The benchmark values for Category ‘A’ and parking spaces across the network. per cent, same as the 2018-19 target and the and Southern River/Armadale areas also Category ‘B’ incidents are calculated on the results of the previous two years, representing achieved the highest results since 2006 and projected estimations of the number of future the highest level since 2006. significantly above the 2017-18 results. Morley passenger boardings and train kilometres. and Joondalup recorded significant decreases in safety perception compared to 2017-18.

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Safety Management Systems controls are in Regional School Bus Services Safety The school bus fleet continues to focus on Calculation: The RCE is the expenditure weighted average place and ongoing reviews are undertaken to Accidents attributable to all causes are notified to innovation and safety to ensure that buses are BCR defined by: reduce the incidents including escalator safety the PTA. The measure for the notifiable safer. Many of the features such as seat belt and campaign in 2018 aimed at reducing the trips occurrences is expressed as the number of child check alarms are features that are now RCE = Sum of Expected Project Benefits / Sum and falls incidents. accidents (major and minor) reported during the standard on today’s school buses. of Project Expenditures school year. Our comprehensive preventative maintenance Target: 12.26 Where: and safety training programs ensures that A low number of occurrences indicate that - Expected Projected Benefits = Project 2018-19 25.68 students are always riding a safe, secure and Category B effective safety management procedures and Expenditure * BCR reliable bus. occurrences 2017-18 21.37 controls exist and are being adhered to by school per million - Project Expenditure = Relevant financial year passenger bus contractors and drivers throughout the Additionally, School Bus Services continues to 2016-17 15.23 approved AIP budget or AIP actual boardings regional school bus fleet. work with school bus contractors and drivers 2015-16 12.04 on road safety matters. The ongoing execution - BCR = Present value of project benefits / of the Contract School Bus Safety Management Present value of project costs Target: 37.10 Target: 19 Plan (SMP) is an effective tool that complements 2018-19 7 Scope Category B 2018-19 66.41 the broader road safety strategies. occurrences The scope of the RCE includes projects that: per million 2017-18 55.28 2017-18 24 train - are in the approved AIP and relevant to kilometres 2016-17 18 7. Return on Construction 2016-17 40.73 Expenditure (RCE) infrastructure construction with an Estimated 2015-16 13 Total Cost (ETC) of $25 million or higher; 2015-16 35.47 New construction networks add to the capacity - have a relevant financial year approved AIP Notifiable occurrences – Rail safety School bus services notifiable occurrences (accidents) of the rail and bus networks. Return on reported each school year Construction Expenditure (RCE) is based on the budget of $1m or higher; and The indicators for Category B incidents per million estimated Benefit Cost Ratio (BCR) of a set of - have an approved BCR passenger boardings and per million train The 2018-19 result was significantly 63.16 per projects undertaken each year. It indicates the kilometres increased by 20.17 per cent cent below 2018-19 target and 70.83 per cent extent to which new bus and rail construction Integrity of the indicator and 20.14 per cent respectively compared below the 2017-18 result. expenditures will deliver future economic benefits Due to the nature of the Public Transport to 2017-18. During the year, there were seven ‘on-road’ to the community. Authority AIP, year on year comparison of the The indicators for Category B incidents per school bus accidents, comprising of one major indicator may be challenging. A large project This indicator represents the expenditure weighted million passenger boardings and per million train and six minor accidents. Of the seven accidents, that dominates the annual budgeted or actual average BCR for the PTA Asset Investment kilometres exceeded the targets by 109.45 per four occurred in regional Western Australia and expenditure will skew the ratio to its individual Program (AIP) for which a BCR has been cent and 79.01 per cent respectively. three in metropolitan Perth. The number of ‘not at BCR. calculated. The AIP includes projects that increase fault’ accidents reduced significantly by 66.67 Variances will reflect changes based on the In 2018-19, the number of Category B incidents per cent to seven, from 21 in 2017-18, and the the capacity of the rail and bus networks in line increased by 22.02 per cent over 2017-18 mainly with customer demand and replace/upgrade individual project BCR’s and their relative annual number of ‘at fault’ accidents also reduced to cost of the projects, and variations of the annual due to significant increases in incidents of Level zero, the lowest level since 2015-16. ageing or obsolete infrastructure. This expenditure Crossing and Trespass following a review of how increases the accessibility, reliability and safety of budgeted and actual expenditures. level crossing incidents are reported in aligning The School Bus Services accident data indicate Western Australia’s public transport system. better with ONRSR requirements. that the total number of accidents was 2018-19 1.51 significantly lower than the 2018-19 target setting This indicator is new and was not included in the Train kilometres and boardings also increased and the ratio of at fault accident cases also 2018-19 Budget Papers hence no formal target 2018-19 1.51 by 1.57 per cent and 1.54 per cent respectively reduced noticeably when compared to the overall exists for 2018-19. Est Actual over 2017-18 due to increased capacity and number of reported accidents. Return on Construction Expenditure (RCE) service frequency. Complementing these encouraging results, the Additional Safety Management Systems controls Authority acknowledges the important role school and strategies have been introduced including bus contractors and drivers have played in safety education and ongoing pedestrian level committing to safely delivering students to and crossings upgrades on all lines. from school.

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The target of the new RCE indicator is reported in Transperth Transperth Bus Services Average cost per ferry passenger kilometre was the 2019-20 Budget Papers. Passenger kilometres are calculated by 12.55 per cent above the 2017-18 result due to a 3.36 per cent increase in total costs ($0.045m) The RCE for the 2018-19 actual result with an multiplying the number of total boardings by Target: $1.30 from $1.33m in 2017-18 to $1.375m in 2018-19 expenditure weighted average result of 1.51 is the average trip length. 2018-19 $1.29 and a 8.17 per cent decrease in passenger the same as the 2018-19 estimated actual of The indicator measures the cost efficiency of kilometres from 1.037m in 2017-18 to 0.953m 1.51 reported in the 2019-20 Budget 2017-18 $1.28 the services, i.e. the trend in the cost of carrying driven by a 8.17 per cent decrease in ferry Statements. one passenger over one kilometre. A declining 2016-17 $1.18 patronage. trend indicates that the resources used to 2015-16 $1.11 provide the services are being utilised in a cost The 2018-19 result was 5.05 per cent below the Efficiency Indicators efficient manner. Average cost per passenger kilometre 2018-19 target due to a 17.03 per cent decrease The PTA’s effectiveness in providing a cost- in total costs ($0.282m) and a 12.45 per cent The indicator reached $1.29, 0.6 per cent below efficient public transport system is measured Transperth Train Services decrease in ferry passenger kilometres (0.135m) using the following key efficiency indicators: the 2018-19 target and 0.8 per cent above the driven by a 12.44 per cent decrease in ferry 2017-18 result due to a 1.58 per cent increase in patronage compared to targets. 1. Average cost per passenger kilometre Target: $0.58 passenger kilometres and a 2.39 per cent 2. Average cost per 1000 place kilometres increase in total costs compared to 2017-18. 2018-19 $0.59 Transwa Rail Services 3. Total passenger place kilometres (millions) 2017-18 $0.56 In 2018-19, passenger kilometres increased to 408.208m from 401.853m in 2017-18. The 4. Average cost per contracted kilometre 2016-17 $0.57 increase in passenger kilometres was mainly due Target: $0.57 These measures are sensitive to changes 2015-16 $0.50 to a 0.59 per cent increase in bus average trip 2018-19 $0.58 in service kilometres and patronage. The length and a 0.92 per cent increase in bus 2017-18 $0.60 past seven years has seen large increases in Average cost per passenger kilometre boardings. Transperth system service kilometres with the roll 2016-17 $0.55 Total cost was 0.62 per cent below the 2018-19 out of additional bus services, the introduction of The indicator reached $0.59, 4.39 per cent target and 2.39 per cent above the 2017-18 2015-16 $0.47 new six-car and three-car trains, the extension above the 2017-18 result and 1.44 per cent result. The increase in total costs over 2017-18 is of the urban passenger line network to Butler, above the 2018-19 target. Average cost per passenger kilometre driven by a 3.06 per cent increase in operating increased service frequencies associated with During the year, passenger kilometres increased costs ($13.338m) partly due to increased the new Perth Stadium, Aubin Grove Station, by 1.97 per cent to 1009 million from 989.782m ticketing related costs, infrastructure and bus The indicator reached $0.58, 1.77 per cent Edgewater Multi-Storey Carpark, Curtin Central in 2017-18 due to a 1.55 per cent increase in contracts offset by a decrease in bus above the 2018-19 target and 2.56 per cent Bus Station and operations from Elizabeth Quay train patronage and a 0.16 per cent increase in depreciation. below the 2017-18 result. Jetty. At the same time, Transperth system train average trip length compared with 2017-18. In comparison to the 2017-18 financial year, patronage has fluctuated, reflecting changing Transperth Ferry Services rail patronage has decreased by 3.04 per cent. economic conditions of the State. The benefits Total cost of train services increased by 6.44 per Despite this decrease in patronage, passenger of the State’s investment in public transport cent to $593.761m from $557.85m in 2017-18 kilometres have increased by 4.55 per cent to will be better reflected in future KPIs as but was 1.04 per cent below the target. Target: $1.52 63.212m from 60.463m in 2017-18 due to patronage improves. The increase in total costs over 2017-18 is driven 2018-19 $1.44 patrons taking longer journeys. This has by a 7.63 per cent increase in operating costs 2017-18 $1.28 resulted in a 2.56 per cent decrease in the 1. Average Cost per Passenger ($25.361m) and a 4.67 per cent increase in cost per rail passenger kilometre, despite actual 2016-17 $1.55 Kilometre capital costs ($10.5m). costs increased by 1.87 per cent ($0.674m) This indicator measures the cost efficiency of 2015-16 $1.34 over 2017-18.

providing passenger services, expressed as the Average cost per passenger kilometre Cost per rail passenger kilometre is 1.77 per cost of carrying one passenger over one cent above the annual target due to a 5.05 per kilometre. cent decrease in rail patronage (9879 patrons) compared to the 2018-19 target, resulting in lower than budgeted rail passenger kilometres (2.08 per cent). This is mainly attributable to a 8641 patron decrease for the Australind due to significant mechanical issues in 2018-19.

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Transwa Road Coach Services Regional Bus Services The service kilometres for most intra-town 4. Average Cost per Contracted services are calculated using the Transperth Intra-Town and Inter-Town Services Kilometres Route Information System (TRIS). The TRIS Target: $0.27 distance calculation basis includes the Regional School Bus Services Target: $74.50 2018-19 $0.28 application of road centreline methodology and The cost of administering school bus services 2018-19 $72.10 the use of more accurate regional mapping 2017-18 $0.26 on a kilometre basis is calculated by dividing the 2017-18 $73.40 data as supplied by the Department of Land total cost of school bus contracts and operating 2016-17 $0.25 Administration. 2016-17 $79.01 expenses by the total contracted kilometres. 2015-16 $0.26 2015-16 $74.07 Regional Town Bus Services Average cost per passenger kilometre Target: $3.77 Cost per 1000 place kilometres Intra-Town and Inter-Town Services 2018-19 $3.80 The indicator reached $0.28, 9.82 per cent The indicator reached $72.10, 3.22 per cent above the 2017-18 result and 4.16 per cent Target: 303.159 2017-18 $3.81 below the 2018-19 target and 1.77 per cent above the 2018-19 target. below the 2017-18 result. This was driven by 2018-19 312.053 2016-17 $3.72 During 2018-19, total costs increased by 9.66 a 2.34 per cent (7.131 million) increase in place 2017-18 304.922 2015-16 $3.76 per cent from $14.160m in 2017-18 to kilometres compared to 2017-18. 2016-17 282.834 $15.527m driven by a 9.88 per cent increase in Average cost per contracted kilometre The increase in place kilometres was mainly operating costs. 2015-16 247.162 due to additional service kilometres that were The indicator reached $3.80, 0.69 per cent Passenger kilometres decreased slightly (0.15 introduced during 2018-19 in the towns of Total Passenger Place Kilometres (Millions) above the 2018-19 target and 0.34 per cent per cent) from 55.295m in 2017-18 to 55.211m Bunbury, Busselton, Geraldton, Port Hedland below the 2017-18 result. in 2018-19 while patronage increased by 0.82 and Manjimup. This in turn increased passenger The indicator reached 312.053m, 2.93 per cent per cent (1487) over 2017-18. place kilometres in 2018-19 above the target During the year, total costs decreased slightly by above the 2018-19 target and 2.34 per cent 0.2 per cent ($0.255m) from $125.601m in Road passenger kilometres in 2018-19 were for the year. above the 2017-18 result of 304.922m mainly 2017-18 to $125.345m and was 0.57 per cent 2.15 per cent less than the target for the year During the year, total costs increased slightly due to an increase in intra-town passenger place below the 2018-19 target partly due to lower and actual cost was 0.81 per cent ($0.125m) (0.52 per cent) from $22.381m in 2017-18 to kilometres. number of school days in 2018-19 compared to above the 2018-19 target, due to a 6.8 per $22.498m in 2018-19 but was 0.38 per cent During the year, intra-town passenger place the previous years. cent increase in depreciation ($0.072m) and a ($0.086m) under the target due to lower than kilometres increased by 2.9 per cent (6.942m) marginal increase in operating cost ($0.035m). expected inter-town expenditures ($0.078m). Contract kilometres increased marginally (0.14 over 2017-18 mainly due to additional service per cent) to 33.022m kilometres from 32.977m kilometres that were introduced during 2018-19 in 2017-18. 2. Average Cost per 1000 Place 3. Total Passenger Place Kilometres in the towns of Bunbury, Busselton, Geraldton Kilometres (millions) and Port Hedland. This in turn increased The modest increase in the annual service kilometres denotes that our contract school bus This indicator measures the cost efficiency of passenger place kilometres above the target This indicator measures the total number of services have maintained a relatively unchanged providing the service per 1000 place kilometres for 2018-19. passengers that can be carried for the service position when compared to 2017-18, noting that and it is calculated for each mode by dividing kilometres. there was one fewer service day in the year. total cost by place kilometres and multiplying by It is calculated for each mode of transport by Across the State, the Goldfields, Kimberley 1000. Place kilometres are calculated by multiplying the average fleet capacity by the and Mid-West regions recorded over two per multiplying the average fleet capacity by the service kilometres and this represents the cent growth in service kilometres however, there service kilometres. capacity provided on each mode. were two per cent contractions in the Peel and Pilbara regions.

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Outcome 2: Protection of the long-term PTA measures the effectiveness of the agreement functionality of the rail corridor and by internally reviewing the Annual Corridor railway infrastructure Ministers Report, the five-yearly inspection report from the independent expert and the five-yearly Effectiveness Indicator maintenance plan provided by Arc Infrastructure. The most significant issue for this outcome is the management of the long-term lease of the rail There has been no lease breach by Arc freight infrastructure to Arc Infrastructure Infrastructure with the above agreements (previously known as Brookfield Rail and WestNet since 2009. Rail) and reporting any breaches by the parties Cost Efficiency involved with the Rail Freight Corridor Land Use The cost efficiency for the management of the Agreement (Narrow Gauge) and Railway long-term lease of the rail freight infrastructure to Infrastructure Lease Agreement and Rail Freight Arc Infrastructure is monitored using the total Corridor Land Use Agreement (Standard Gauge) cost of managing the rail corridor and residual and Railway Infrastructure Lease Agreement freight issues. dated 2000 (the Leases).

Arc Infrastructure manages and operates the rail Target: $154,338

freight infrastructure under the terms of the Leases. 2018-19 $149,004 Under the Leases, Arc Infrastructure is the ‘accredited owner’ of the infrastructure as defined 2017-18 $170,282 in the Rail Safety National Law (WA) Act 2015. 2016-17 $179,342

Arc Infrastructure engages an independent 2015-16 $179,309 expert, on a five-yearly basis, to review compliance to performance standards as defined Cost of managing rail corridor and residual in the Leases. The next audit will occur in 2020. freight issues management ($’000s) Additionally, Arc Infrastructure provides an Annual The cost of managing the rail corridor and Corridor Ministers Report that details: residual freight issues was 3.46 per cent below • Audited financial statements for Arc the 2018-19 target and 12.5 per cent below the Infrastructure 2017-18 result. • Gross tonnes and train numbers for freight The result was $21.278 million (12.5 per cent) and passenger services during the reporting below the 2017-18 result driven by significant period on each section of line decreases in supplies and services costs and • Track kilometres in use for standard gauge, depreciation of the freight network infrastructure. narrow gauge, and operational and non-operational track • Directors Certification of compliance pursuant to clause 15 of the leases

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Financial report for the year ended 30 June 2019

The Public Transport Authority of Western Australia 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 PTA’s stewardship of resource entrusted to it. The financial information is presented in the 4. Financial Statements following structure:

CERTIFICATION OF FINANCIAL STATEMENTS ...... 107

STATEMENT OF COMPREHENSIVE INCOME ...... 108

STATEMENT OF FINANCIAL POSITION ...... 109

STATEMENT OF CHANGES IN EQUITY ...... 110

STATEMENT OF CASH FLOWS ...... 111

NOTES TO THE FINANCIAL STATEMENTS ...... 112 1. Basis of preparation ...... 112 2. PTA outputs ...... 113 2.1 PTA objectives ...... 113 2.2 Schedule of income and expenses by service ...... 114 3. Use of our funding ...... 115 3.1a Employee benefits expenses ...... 115 3.1b Employee related provisions ...... 116 3.2 Grants and subsidies ...... 117 3.3 Supplies and services ...... 118 3.4 Other expenses ...... 118 4. Our funding sources ...... 119 How we obtain our funding ...... 119 4.1 Income from State Government ...... 119 4.2 User charges and fees ...... 120 4.3 Operating lease revenue ...... 120 4.4 Commonwealth grants and contributions ...... 120 4.5 Interest revenue ...... 121 4.6 Other revenue ...... 121 4.7 Gains (Losses) on disposal of non current assets ...... 122 5. Key assets ...... 122 5.1 Infrastructure, property, plant, equipment and vehicles ...... 123 5.1.1 Depreciation ...... 126 5.1.2 Impairment ...... 127 5.2 Intangible assets ...... 127 5.2.1 Amortisation and impairment ...... 128 6. Other assets and liabilities ...... 129 6.1 Receivables ...... 129 6.1.1 Movement of the allowances for impairment of receivables ...... 129 6.2 Amounts receivable for services (Holding Account) ...... 130 6.3 Other assets ...... 130 6.4 Inventories ...... 130 6.5 Deferred income – operating lease ...... 130 6.6 Payables ...... 131 6.7 Other provisions ...... 131 6.7.1 Movement in provisions ...... 132 6.8 Other liabilities ...... 132

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7. Financial assets and financial liabilities ...... 133 Certification of financial statements 8. Financing ...... 134 FOR THE YEAR ENDED 30 JUNE 2019 8.1 Borrowings ...... 134 8.2 Finance costs ...... 134 The accompanying financial statements of the Public Transport Authority of Western Australia have been 8.3 Cash and cash equivalents ...... 135 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 ended 30 June 2019 and the financial 8.3.1 Reconciliation of cash ...... 135 8.3.2 Reconciliation of net cost of services to net cash flows used in operating activities ...... 136 position as at 30 June 2019. 8.4 Commitments ...... 136 At the date of signing we are not aware of any circumstances which would render the particulars included in the 8.4.1 Non-cancellable operating lease commitments ...... 136 financial statements misleading or inaccurate. 8.4.2 Capital commitments ...... 136 8.4.3 Other expenditure commitments ...... 137

9. Risks and contingencies ...... 137 9.1 Financial risk management ...... 137 9.2 Contingent assets and liabilities ...... 141 9.2.1 Contingent assets ...... 141 9.2.2 Contingent liabilities ...... 141 9.3 Fair value measurements ...... 142 Richard Sellers Jeffrey Steedman Accountable Authority Chief Finance Officer 10. Other disclosures ...... 146 10.1 Events occurring after the end of the reporting period...... 146 3 September 2019 3 September 2019 10.2 Initial application of Australian Accounting Standards ...... 146 10.3 Future impact of Australian Accounting Standards not yet operative ...... 148 10.4 Key management personnel ...... 150 10.5 Related party transactions ...... 151 10.6 Special purpose accounts ...... 152 10.7 Remuneration of auditors ...... 152 10.8 Non-current assets classified as assets held for sale ...... 152 10.9 Equity ...... 153 10.10 Supplementary financial information ...... 154 10.11 Explanatory statement (Controlled Operations) ...... 154 10.11.1 Statement of comprehensive income variances ...... 155 10.11.2 Statement of financial position variances ...... 156 10.11.3 Statement of cash flows variances ...... 158

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Statement of comprehensive income Statement of financial position FOR THE YEAR ENDED 30 JUNE 2019 AS AT 30 JUNE 2019

2019 2018 2019 2018 Note Note $000 $000 $000 $000 COST OF SERVICES ASSETS Expenses Current Assets Employee benefits expense 3.1(a) 195,266 178,260 Cash and cash equivalents 8.3 167,263 205,088 Supplies and services 3.3 229,466 241,138 Restricted cash and cash equivalents 8.3 278,848 15,056 Depreciation and amortisation expense 5.1.1, 5.2.1 369,050 372,719 Inventories 6.4 18,242 16,456 Finance costs 8.2 89,037 86,640 Receivables 6.1 23,641 29,013 Grants and subsidies 3.2 538,764 539,452 Amounts receivable for services 6.2 154,933 122,641 Energy and fuel 34,129 31,653 Non-current assets classified as held for sale 10.8 2,860 2,860 Other expenses 3.4 21,235 18,344 Other current assets 6.3 13,892 11,852 Loss on disposal of non-current assets 4.7 0 1,710 Derivative financial instruments 7.0 28 4 Total cost of services 1,476,947 1,469,916 Total Current Assets 659,707 402,970 Non-Current Assets Income Restricted cash and cash equivalents 8.3 2,743 3,462 Revenue Amounts receivable for services 6.2 518,369 619,946 User charges and fees 4.2 229,630 220,862 Infrastructure, property, plant, equipment and vehicles 5.1 8,855,512 7,743,299 Operating lease revenue 4.3 5,466 5,466 Intangible assets 5.2 12,882 13,036 Commonwealth grants and contributions 4.4 1,000 2,998 Interest revenue 4.5 3,372 3,255 Total Non-Current Assets 9,389,506 8,379,743 Other revenue 4.6 45,557 59,972 TOTAL ASSETS 10,049,213 8,782,713 Total revenue 285,025 292,553 LIABILITIES Gains Current Liabilities Gain on disposal of non-current assets 4.7 180 0 Payables 6.6 129,395 114,435 Total Gains 180 0 Borrowings 8.1 165,772 137,798 Employee related provisions 3.1(b) 37,344 35,293 Total income other than income from State Government 285,205 292,553 Other provisions 6.7 1,949 1,956 Other current liabilities 6.8 30 40 NET COST OF SERVICES 1,191,742 1,177,363 Deferred income operating lease 6.5 5,466 5,466 Derivative financial instruments 7.0 0 341 Income from State Government Operating subsidy contributions 4.1 830,061 812,502 Total Current Liabilities 339,956 295,329 Services received free of charge 4.1 843 728 Non-Current Liabilities Royalties for Regions Fund 4.1 9 10 Borrowings 8.1 2,206,946 2,125,713 Total income from State Government 830,913 813,240 Employee related provisions 3.1(b) 8,887 7,896 Other provisions 6.7 6,640 7,101 Deferred income operating lease 6.5 165,528 170,994 DEFICIT FOR THE PERIOD (360,829) (364,123) Total Non-Current Liabilities 2,388,001 2,311,704 OTHER COMPREHENSIVE INCOME TOTAL LIABILITIES 2,727,957 2,607,033 Items not reclassified subsequently to profit or loss Changes in asset revaluation surplus 10.9 1,118,689 95,239 NET ASSETS 7,321,256 6,175,680 Changes in hedge reserve 10.9 341 848 EQUITY Total other comprehensive income 1,119,030 96,087 Contributed equity 10.9 5,047,297 4,659,975 Reserves 10.9 4,410,704 3,291,674 TOTAL COMPREHENSIVE SURPLUS/(DEFICIT) Accumulated deficit (2,136,745) (1,775,969) FOR THE PERIOD 758,201 (268,036) TOTAL EQUITY 7,321,256 6,175,680

The Statement of financial position should be read in conjunction with the accompanying notes. See also the Schedule of income and expenses by service note 2.2. The Statement of comprehensive income should be read in conjunction with the accompanying notes.

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Statement of changes in equity Statement of cash flows FOR THE YEAR ENDED 30 JUNE 2019 FOR THE YEAR ENDED 30 JUNE 2019

Contributed Accumulated Total 2019 2018 Note Note equity Reserves deficit equity $000 $000 $000 $000 $000 $000 CASH FLOWS FROM STATE GOVERNMENT Operating subsidy contribution 830,061 812,502 Balance at 1 July 2017 10.9 4,423,149 3,195,587 (1,411,846) 6,206,890 Capital appropriation – other government agencies 0 7,270 Capital appropriations 446,256 159,825 Deficit 0 0 (364,123) (364,123) Perth Stadium account 0 98,175 Other comprehensive income 0 96,087 0 96,087 Royalties for Regions Fund 509 287

Total comprehensive income for the period 0 96,087 (364,123) (268,036) Holding account drawdown 69,285 58,285 Net cash provided by State Government 1,346,111 1,136,344 Transactions with owners in their capacity as owners: CASH FLOWS FROM OPERATING ACTIVITIES Capital appropriations 159,825 0 0 159,825 Payments Perth Stadium account 98,175 0 0 98,175 Employee benefits (195,207) (177,788) Other contributions by owners 7,546 0 0 7,546 Supplies and services (264,413) (281,631)

Distributions to owners (46,046) 0 0 (46,046) Finance costs (88,626) (87,766) Grants and subsidies (534,984) (525,334) Transfer of net assets from other agencies 17,326 0 0 17,326 Receipts paid into consolidated account (3,777) (3,762) Total 236,826 0 0 236,826 GST payments on purchases (118,411) (132,904)

Other payments (13,702) (13,261)

Balance at 30 June 2018 4,659,975 3,291,674 (1,775,969) 6,175,680 Receipts User charges and fees 230,744 223,874

Balance at 1 July 2018 4,659,975 3,291,674 (1,775,969) 6,175,680 Commonwealth grants and contributions 1,000 2,998 Interest received 2,863 4,497 Changes in accounting policy or GST receipts on sales 27,630 27,448 correction of prior period errors 0 0 53 53 GST receipts from taxation authority 94,634 111,743 Restated balance at 1 July 2018 4,659,975 3,291,674 (1,775,916) 6,175,733 Other receipts 48,815 56,987 Net cash used in operating activities 8.3.2 (813,434) (794,899) Deficit 0 0 (360,829) (360,829) Other comprehensive income 0 1,119,030 0 1,119,030 CASH FLOWS FROM INVESTING ACTIVITIES Total comprehensive income for the period 0 1,119,030 (360,829) 758,201 Payments

Transactions with owners in their capacity Purchase of non-current assets (416,636) (557,879)

as owners: Receipts

Capital appropriations 446,256 0 0 446,256 Proceeds from sale of non-current assets 0 0 Net cash used in investing activities (416,636) (557,879) Other contributions by owners 500 0 0 500 Distributions to owners (91,054) 0 0 (91,054) CASH FLOWS FROM FINANCING ACTIVITIES Transfer of net assets from other agencies 31,620 0 0 31,620 Payments Total 387,322 0 0 387,322 Repayment of borrowings (429,569) (160,490)

Other repayments 0 (1,800) Balance at 30 June 2019 5,047,297 4,410,704 (2,136,745) 7,321,256 Receipts Proceeds from borrowings 538,776 283,761 The Statement of changes in equity should be read in conjunction with the accompanying notes. Net cash provided by financing activities 109,207 121,471 Net increase/(decrease) in cash and cash equivalents 225,248 (94,963) Cash and cash equivalents at the beginning of the period 223,606 318,569 CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD (including current and non-current restricted cash and cash equivalents) 8.3 448,854 223,606

The Statement of cash flows should be read in conjunction with the accompanying notes.

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Notes to the financial statements 2. PTA outputs FOR THE YEAR ENDED 30 JUNE 2019 How the PTA operates This section includes information regarding the nature of funding the PTA receives and how this funding 1. Basis of preparation is utilised to achieve the PTA’s objectives. This note also provides the distinction between controlled The Public Transport Authority of Western Australia (PTA) is a WA Government entity and is controlled funding and administered funding: by the State of Western Australia, which is the ultimate parent. The entity is a not-for-profit entity (as Note profit is not its principal objective). PTA objectives 2.1 A description of the nature of its operations and its principal activities have been included in the Schedule of income and expenses by service 2.2 ‘Overview’ which does not form part of these financial statements. 2.1 PTA objectives These annual financial statements were authorised for issue by the Accountable Authority of the PTA on 3 September 2019. Purpose These financial statements are presented in Australian dollars applying the accrual basis of accounting To provide safe, customer-focused, integrated and efficient transport services. and using the historical cost convention. Certain balances will apply a different measurement basis (such Services as the fair value basis). Where this is the case the different measurement basis is disclosed in the associated note. All values are rounded to the nearest thousand dollars ($’000). The PTA provides the following services: Statement of compliance Service 1: Metropolitan and Regional Passenger Services Transperth is the brand and operating name of the public transport system in the greater Perth These general purpose financial statements have been prepared in accordance with: metropolitan area. The Transperth system consists of a bus network, a fully-electrified urban train system 1) The Financial Management Act 2006 (FMA) and a ferry service. It is managed by our Transperth branch and covers key functions such as system 2) The Treasurer’s Instructions (the Instructions or TI) planning, bus service delivery, bus service security, passenger information services, ticketing and bus fleet procurement. Transperth bus and ferry services are provided under commercial contract arrangements; 3) Australian Accounting Standards (AAS) including applicable interpretations train services are provided by our Transperth Train Operations (TTO) division under an internal service- 4) Where appropriate, those AAS paragraphs applicable for not for profit entities have been applied. level agreement. Passenger information comprising InfoCentre, InfoLine and customer feedback services The FMA and the TI take precedence over AAS. Several AAS are modified by the Instructions to vary are provided under contract by Serco. - - application, disclosure format and wording. Where modification is required and has had a material or Under the TransRegional brand, our Regional Town Bus Services (RTBS) branch manages Trans branded significant financial effect upon the reported results, details of that modification and the resulting financial school and town public bus services in 14 major regional towns in rural WA, as well as seven inter-town effect are disclosed in the notes to the financial statements. regional bus services – four in the Pilbara and one each in the Gascoyne, Goldfields and Mid-West regions. Judgements and estimates Service 2: Country Passenger Rail and Road Coach Services Judgements, estimates and assumptions are required to be made about financial information being Transwa is the brand and operating name for the road coach and rail public transport system serving presented. The significant judgements and estimates made in the preparation of these financial regional centres. Our Transwa network extends to Kalbarri and Meekatharra in the north, east to statements are disclosed in the notes where amounts affected by those judgements and/or estimates are Kalgoorlie, and south-east to Esperance. The services link 240 regional locations to the Perth metropolitan disclosed. Estimates and associated assumptions are based on professional judgements derived from area (and locations in between) and are used by a variety of passengers for a range of travel purposes. historical experience and various other factors that are believed to be reasonable under the Service 3: Regional School Bus Services circumstances. The PTA manages the policy and entitlement framework, delivers system support and oversees the Contributed equity contract arrangements of orange school bus services around the State. These buses provide access to school for students in rural areas (picking them up from the farm gate where appropriate), as well as AASB Interpretation 1038 Contributions by Owners made to Wholly-Owned Public Sector Entities requires access to schools in the metropolitan area for students attending special education facilities. transfers in the nature of equity contributions, other than as a result of a restructure of administrative Responsibility for the management of these services rests with our School Bus Services (SBS) branch. In arrangements, to be designated by the Government (the owner) as contributions by owners (at the time addition to the orange contract school buses, there are four cluster contracts made up of 50 contract of, or prior, to transfer) before such transfers can be recognised as equity contributions. Capital school buses that are funded by the Department of Education (DoE) and administered by SBS. These appropriations have been designated as contributions by owners by TI 955 Contributions by Owners made services do not form part of our Student Transport Assistance Policy Framework (STAPF). Where eligible to Wholly Owned Public Sector Entities and have been credited directly to Contributed Equity. students cannot be accommodated on a school bus, their parents/carers are paid a conveyance allowance The transfers of net assets to/from other agencies, other than as a result of a restructure of administrative to offset the cost of getting their children to the nearest appropriate school. arrangements, are designated as contributions by owners where the transfers are non-discretionary and Service 4: Rail Corridor and Residual Freight Issues Management non-reciprocal. Managing the rail freight corridor and infrastructure leases to the private sector and associated freight transport issues.

112 Public Transport Authority Annual Report 2018-19 Public Transport Authority Annual Report 2018-19 113 Public Transport AuthorityAnnualReport2018-19 114 2.2 Schedule of income and expenses by service FOR THE YEAR ENDED 30 JUNE 2019 Metropolitan and Regional Country Passenger Rail and Regional School Rail Corridor and Residual Total Passenger Services Road Coach Services Bus Services Freight Issues 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 COST OF SERVICES Expenses Employee benefits expenses 169,141 153,500 16,028 14,694 4,037 4,067 6,060 5,999 195,266 178,260 Supplies and Services 192,753 193,543 22,327 22,313 1,336 1,281 13,050 24,001 229,466 241,138 Depreciation and amortisation expense 234,649 227,919 7,062 6,968 1,230 1,399 126,109 136,433 369,050 372,719 Finance costs 85,302 82,690 1,748 1,900 0 0 1,987 2,050 89,037 86,640 Grants and subsidies 418,077 418,684 0 0 120,687 120,768 0 0 538,764 539,452 Energy and fuel 29,773 27,648 3,341 3,060 0 0 1,015 945 34,129 31,653 Loss on disposal of non-current assets 0 1,710 0 0 0 0 0 0 0 1,710 Other expenses 18,468 15,919 1,689 1,219 295 352 783 854 21,235 18,344 Total cost of services 1,148,163 1,121,613 52,195 50,154 127,585 127,867 149,004 170,282 1,476,947 1,469,916 Income User charges and fees 214,788 205,965 9,764 9,768 5,078 5,129 0 0 229,630 220,862 Operating lease revenue 0 0 0 0 0 0 5,466 5,466 5,466 5,466 Commonwealth grants and contributions 0 0 0 0 0 0 1,000 2,998 1,000 2,998 Interest revenue 0 0 0 0 0 0 3,372 3,255 3,372 3,255 Public Transport Authority Annual Report2018-19 Gain on disposal of non-current assets 180 0 0 0 0 0 0 0 180 0 Other revenue 31,701 46,188 1,033 1,171 0 0 12,823 12,613 45,557 59,972 Total income other than income from State Government 246,669 252,153 10,797 10,939 5,078 5,129 22,661 24,332 285,205 292,553 NET COST OF SERVICES 901,494 869,460 41,398 39,215 122,507 122,738 126,343 145,950 1,191,742 1,177,363

INCOME FROM STATE GOVERNMENT Operating subsidy contribution 663,750 647,144 35,386 34,035 123,225 123,080 7,700 8,243 830,061 812,502 Services received free of charge 0 0 0 0 0 0 843 728 843 728 Royalties for Regions Fund 0 0 9 10 0 0 0 0 9 10

Total income from State Government 663,750 647,144 35,395 34,045 123,225 123,080 8,543 8,971 830,913 813,240 Corporate Snapshot Surplus/(deficit) for the period (237,744) (222,316) (6,003) (5,170) 718 342 (117,800) (136,979) (360,829) (364,123) The Schedule of income and expenses by service should be read in conjunction with the accompanying notes.

Operational report Public Transport Authority Annual Report2018-19

Superannuation salaries and Wages Defined contribution plansincl (i) Employee benefits expenses 3.1a Useofourfunding 3. concurrent contributions(defined The GESB and other fund providers administer publ providers otherfund and The GESB contributionsconcurrent made whole isadefinedbene GSS (concurrentcontributions) GESB. Account by resp to GESB,in paid funds. Theemployercontribution contributions paid totheGSS (conc profitorlossintheSt recognised in amount The payments. termination and tax, leaveentitlements costs related to employ all Employee expenses include contributionSuperannuationplansdefined (i) – salaries and Wages services Supplies and and subsidies Grants Employee relatedprovisions expenses Employee benefits inachievin primary expensesincurredbythePTA of understanding an for are relevant policies that This sectionprovidesadditionalinformation aboutho of services delivery the in Expenses incurred schemes for public sector employees vary accopublicschemesemployees sector for vary with legisl accordance in Australia benefits its relating pay to obligation future to benefitliab notrecogniseanydefined does The PTA liability.obligations tosuperannuation the related Total employee benefits expenses expenses benefits Total employee Other expenses Other expenses ( GSS), GovernmentEmployeesSu - of- Governance andcompliance Governance government reporting. It is however a defined government reporting. Itishoweveradefined

ude West State SuperannuationScheme( ude WestState by the PTA to the GESB. the GESB. to PTA bythe perannuation Boardperannuation Schemes (GESBs contributions) madebythe PTA ative requirements. Eligibility criteria for membership in particular formembershipinparticular requirements.Eligibility criteria ative urrent contributions), the WSS, th theWSS, urrent contributions), rding to commencement and implementation dates. and implementation commencement to rding

Financial Statements atement of comprehensive income comprises employer incomecomprises atement ofcomprehensive g its objectives and th employees. All other GSS obligations arefundedby GSS All other employees. the items recognised in th in itemsrecognised the ic sector superannuation ic sectorsuperannuation fit scheme for the purposes of employees and forthe purposesof fit scheme w the PTA’s accounting funding isthe applied and ment including wages and sa ect of the GSS, is paid back into the Consolidated the into back paid GSS,is the of ect contribution plan for PTA purposes because the the PTA purposes because contribution planfor ilities because it hasno ilities becauseit 3.1(b) 3.1(b) 3.1(a) Note 3.4 3.2 3.2 3.3 3.3 ) andothereligiblefunds. WSS ), GoldStateSuperannuationScheme e GESBs, or other superannuation to GESB extinguishes the PTA’s extinguishesthePTA’s to GESB e relevant notesare: e 229,466 538,764 538,764 195,266 195,266 178,806 178,806 195,266 e financialst 46,231 16,460 21,235 arrangements in Western inWestern arrangements $000 $000 $000 2019 2019 Return toContents Return legal orconstructive laries, fringe benefits

atements. The atements. The 539,452 178,260 178,260 178,260 241,138 163,158 18,344 43,189 15,102 $000 $000 $000 2018 2018 2018 2018 115

Public Transport Authority Annual Report 2018-19 Corporate Snapshot Operational report Governance and compliance Financial Statements Return to Contents

3.1b Employee related provisions An actuarial assessment of long service leave undertaken by PriceWaterhouseCoopers Actuaries at 30 June 2019 determined that the liability measured using the short-hand measurement technique above Provision is made for benefits accruing to employees in respect of wages and salaries, annual leave and was not materially different from the liability determined using the present value of expected future long service leave for services rendered up to the reporting date and recorded as an expense during the payments. This calculation is consistent with the PTA’s experience of employee retention and leave taken. period the services are delivered. 2019 2018 (iii) Deferred salary scheme liabilities: Classified as current where there is no unconditional right to defer $000 $000 settlement for at least 12 months after the end of the reporting period. Actual settlement of the liabilities Current is expected to occur as follows: Employee benefits provisions 2019 2018 $000 $000 Annual leave (i) 17,454 16,045 Long service leave (ii) 16,243 15,893 Within 12 months of the end of the reporting period 188 171 Deferred salary scheme (iii) 188 171 More than 12 months after the end of the reporting period 0 0 33,885 32,109 188 171 Other provisions (iv) Employment on-costs: The settlement of annual and long service leave liabilities gives rise to the Employment on-costs (iv) 3,459 3,184 payment of employment on-costs including workers’ compensation insurance. The provision is the Total current employee related provisions 37,344 35,293 present value of expected future payments. Non-Current Employment on-costs, including workers’ compensation insurance, are not employee benefits and are Employee benefits provisions recognised separately as liabilities and expenses when the employment to which they relate has occurred. Employment on-costs are included as part of ‘Other expenses, Note 3.4 (apart from the unwinding of the Long service leave (ii) 8,018 7,158 discount (finance cost))’ and are not included as part of the PTA’s ‘employee benefits expense’. The Other provisions related liability is included in ‘Employment on-costs provision’. Employment on-costs (iv) 869 738 2019 2018 Total non-current employee related provisions 8,887 7,896 $000 $000 Employment on-cost provision Total employee related provisions 46,231 43,189 Carrying amount at start of period 3,922 3,808 (i) Annual leave liabilities: Classified as current as there is no unconditional right to defer settlement for Additional provisions recognised 2,602 2,062

at least 12 months after the end of the reporting period. Assessments indicate that actual settlement of Payments/other sacrifices of economic benefit (2,197) (1,948) liabilities is expected to occur as follows: Carrying amount at end of period 4,327 3,922 2019 2018 Key sources of estimation uncertainty – annual leave and long service leave $000 $000 The PTA undertook an actuarial assessment of its long service leave provision in 2019 and is using Within 12 months of the end of the reporting period 15,454 14,895 employees’ age based factors for discounting its expected future payments between valuations. These More than 12 months after the end of the reporting period 2,000 1,150 factors incorporate a series of assumptions such as demographics, salary inflation, and market yields on 17,454 16,045 Commonwealth Government bonds. Fluctuations in any of the assumptions used to calculate these The provision for annual leave is calculated at the present value of expected payments to be made in factors may impact the provision for annual and long service leave. relation to services provided by employees up to the reporting date. Any gain or loss following revaluation of the present value of the long service leave liabilities is recognised as employee benefit expense. (ii) Long service leave liabilities: Unconditional long service leave provisions are classified as current liabilities as the PTA does not have an unconditional right to defer settlement of the liability for at least 3.2 Grants and subsidies 12 months after the end of the reporting period. 2019 2018 Pre-conditional and conditional long service leave provisions are classified as non-current liabilities $000 $000 because the PTA has an unconditional right to defer settlement of the liability until the employee has Recurrent completed the requisite years of service. Bus operators (i) 398,040 382,651 Assessments indicate that actual settlement of the liabilities is expected to occur as follows: School bus services (i) 118,447 118,502 Regional bus services (i) 17,492 16,709 2019 2018 Grants to local government (iii) 883 12,636 $000 $000 Student conveyance allowance (ii) 2,240 2,266 Within 12 months of the end of the reporting period 4,347 4,303 Ferry services (i) 1,276 1,237 More than 12 months after the end of the reporting period 19,913 18,748 Grants to other government agencies 386 951 24,260 23,051 Capital The liability for long service leave is recognised at the face value of each employee’s long service leave Department of Transport – Burswood Jetty 0 4,500 entitlement based on remuneration rates current as at the end of the reporting period, adjusted for the 538,764 539,452 employee’s age factor. This method is referred to as the short-hand method. Transactions in which the PTA provides goods, services, assets (or extinguishes a liability) or labour to another party without receiving approximately equal value in return are categorised as ‘Grant expenses’. Grants can either be operating or capital in nature.

116 Public Transport Authority Annual Report 2018-19 Public Transport Authority Annual Report 2018-19 117 Public Transport Authority Annual Report 2018-19 Corporate Snapshot Operational report Governance and compliance Financial Statements Return to Contents

Grants can be paid as general purpose grants which refer to grants that are not subject to conditions 4. Our funding sources regarding their use. Alternatively, they may be paid as specific purpose grants which are paid for a particular purpose and/or have conditions attached regarding their use. How we obtain our funding Grants and other transfers to third parties (other than contribution to owners) are recognised as an This section provides additional information about how the agency obtains its funding and the relevant expense in the reporting period in which they are paid or payable. They include transactions such as: accounting policy notes that govern the recognition and measurement of this funding. The primary grants, subsidies, personal benefit payments made in cash to individuals, other transfer payments made income received by the agency and the relevant notes are:

to public sector agencies, local government, non-government schools, and community groups. 2019 2018 Note Note: $000 $000 (i) Transactions are mainly contract payments to Metropolitan and Regional bus operators and ferry Income from State Government 4.1 830,913 813,240 operators. User charges and fees 4.2 229,630 220,862 (ii) Contribution to eligible parents/carers for transportation costs by private motor vehicle. This Operating lease revenue 4.3 5,466 5,466 entitlement applies to rural students living outside of a public transport area and students with Commonwealth grants and contributions 4.4 1,000 2,998 special needs who are required to attend an education support facility. Interest revenue 4.5 3,372 3,255 (iii) Grants to local government includes road infrastructure constructed as part of the Forrestfield- Other revenue 4.6 45,557 59,972 Airport Link and the bus shelter grant scheme. Gains (Losses) on disposal of non-current assets 4.7 180 (1,710) 3.3 Supplies and services 4.1 Income from State Government 2019 2018 2019 2018 $000 $000 $000 $000 Appropriation received during the period: Contractors 168,585 175,868 Operating subsidy contributions (i) 830,061 812,502 Motor vehicles 12,231 13,444 Materials and signs 8,808 9,539 Services received free of charge from other State Government Consumables 13,615 9,175 agencies during the period (ii): Communications 1,219 1,131 State Solicitor’s Office 480 385 Other 25,008 31,981 Landgate 8 125 Total supplies and services expenses 229,466 241,138 Department of Water 3 0 Main Roads WA 352 218 Supplies and services are recognised as an expense in the reporting period in which they are incurred. The Total services received 843 728 carrying amounts of any materials held for distribution are expensed when the materials are distributed. Royalties for Regions Fund: 3.4 Other expenses Regional Community Services Account (iii) 9 10 2019 2018 830,913 813,240 $000 $000 Payroll tax 10,973 9,823 (i) Operating subsidy contributions are recognised as revenues at fair value in the period in which the Workers’ compensation 4,445 3,014 PTA gains control of the appropriated funds. The PTA gains control of appropriated funds at the time those funds are deposited in the bank account. Payment of infringements to consolidated account 3,777 3,762 Operating subsidy contributions fund the net cost of services delivered (as set out in note 2.2) except Audit fees 719 805 depreciation expense. Notional charges for services provided by government agencies 843 728 Employment on-costs 371 120 (ii) Assets or services received free of charge (except those designated as contribution from owners) or for nominal cost are recognised as income at the fair value of the assets and/or the fair value of those Doubtful debts expense 0 92 services that can be reliably measured and the PTA would otherwise pay for. A corresponding Bad debts written off 99 0 expense is recognised for services received. Receipts of assets are recognised in the Statement of Expected credit losses expense 8 0 financial position. Total other expenses 21,235 18,344 (iii) The Regional Community Services Accounts are sub-funded within the over-arching ‘Royalties for Other expenses Regions Fund’. The recurrent funds are committed to projects and programs in WA regional areas and are recognised as revenue when the PTA gains control on receipt of the funds. Other operating expenses generally represent the day-to-day running costs incurred in normal operations.

Employee on-costs includes workers’ compensation insurance and employment on-costs. The on-costs liabilities associated with the recognition of annual and long service leave liabilities are included at note 3.1(b) ‘Employee related provisions’. Superannuation contributions accrued as part of the provision for leave are employee benefits and are not included in employment on-costs. Doubtful debt expense is recognised as the movement in the provision for doubtful debt. From 2018-19, expected credit losses expense is recognised as the movement in the allowance for expected credit losses. The allowance for expected credit losses of trade receivables is measured at lifetime expected credit losses at each reporting date. The PTA has established a provision specific to the debtors and the economic environment. Please refer to note 6.1.1 ‘Movement of the allowance for impairment of receivables’.

118 Public Transport Authority Annual Report 2018-19 Public Transport Authority Annual Report 2018-19 119 Public Transport Authority Annual Report 2018-19 Corporate Snapshot Operational report Governance and compliance Financial Statements Return to Contents

4.2 User charges and fees 4.5 Interest revenue 2019 2018 2019 2018

$000 $000 $000 $000 Fare revenue 229,630 220,862 Interest revenue 3,372 3,255 Revenue recognition Revenue is recognised as the interest accrues. Revenue is recognised and measured at the fair value of consideration received or receivable. Revenue is Interest revenue is received quarterly from Department of Treasury calculated on the daily balance held recognised for the major business activities as follows: in the interest bearing bank account. From 1 January 2019, interest revenue received from Treasury was calculated only on the balance of the funds received for the METRONET account (Note 10.6). Fare revenue Revenue is recognised when services are provided by the PTA or when the significant risks and rewards 4.6 Other revenue of ownership control transfer to the purchaser and can be measured reliably. 2019 2018 $000 $000 Provision of services Rents and leases 15,854 15,696 Revenue is recognised by reference to the stage of completion of the transaction. Parking 8,829 8,654 4.3 Operating lease revenue Advertising income 10,151 9,925 2019 2018 External works 2,468 12,242 $000 $000 Infringements 3,789 3,867 Contribution other government agencies 192 4,373 Rental income from freight network infrastructure (i) 5,383 5,383 Rental income from grain receival sites (ii) 83 83 SmartRider card sales 1,090 1,064 5,466 5,466 Net change in fair value of financial instruments at fair value through profit and loss 24 224 (i) The sale of the Westrail Freight Business on 17 December 2000 included an operating lease of the Miscellaneous 3,160 3,927 freight network infrastructure for 49 years between the Western Australian Government Railways 45,557 59,972 Commission (WAGR) – now the PTA and Westnet Rail Pty Ltd – now Arc Infrastructure Pty Ltd. The lease rentals were fully prepaid on 17 December 2000, and credited to deferred operating lease Revenue recognition revenue. Revenue is recognised and measured at the fair value of consideration received or receivable. Revenue is (ii) A 99-year operating lease for 118 grain receival sites was entered into with Co-operative Bulk recognised for the major business activities as follows: Handling (CBH) in 2003. Rental income for 99 years of $7.45 million was received in full at the commencement of the lease, and is accounted for as revenue over the 99-year lease period, with the Sale of goods prepaid portion shown as deferred income (see note 6.5 ‘Deferred income – operating leases’). Revenue is recognised from the sale of goods and disposal of other assets when the significant risks and A further 99-year operating lease for 15 grain receival sites was entered into with CBH in 2004. rewards of ownership control transfer to the purchaser and can be measured reliably. Rental income for 99 years of $775,000 was received in full at the commencement of the lease, and Provision of services is accounted for as revenue over the 99-year lease period, with the prepaid portion shown as deferred income (see note 6.5 ‘Deferred income – operating leases’). Revenue is recognised by reference to the stage of completion of the transaction. 4.4 Commonwealth grants and contributions Infringements 2019 2018 Infringements are recognised at the time payment is received. Outstanding infringements are not $000 $000 recognised as debts, as the future economic benefits are minimal and cannot be reliably measured at the end of the reporting period. Chamber of Commerce and Industry – Apprenticeship Support Australia 0 31 Rent and leases Commonwealth grant (via Treasury) – Rent and leases are recognised when the significant risks and rewards of ownership control transfer to Nicholson Road grade separation 1,000 2,967 the purchaser and can be measured reliably. 1,000 2,998 Revenue is recognised at fair value when the PTA obtains control over the assets comprising the contributions, usually when cash is received.

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4.7 Gains (Losses) on disposal of non-current assets 2019 2018 $000 $000 Net proceeds from disposal of non-current assets Land 0 369 0 (9,720,878) 00 1,118,689 (366,407) Buses 1,760 476 0 (1,389) Other 0 33

Carrying amount of non-current assets disposed in progress Total Construction

Land 0 (1,330) in result will tion increment s relate to movements from Buses (1,100) (1,222) e next scheduled revaluation Railway infrastructure (289) 0 Other/write-off of non-current assets (191) (36) 99,049 1,164,144 8,855,512 Net gain/(loss) 180 (1,710) Realised and unrealised gains are usually recognised on a net basis. These include gains arising on the disposal of non-current assets and some revaluations of non-current assets. ay ($24.9 million); Freight network infrastructure million); Freight network ay ($24.9 t has increased by $1.1 billion since last last since revaluation billion $1.1 has by t inincreased 0 0 (1,021) Gains and losses on the disposal of non-current assets are presented by deducting from the proceeds on 0 0 28 423,243 423,556 Bus t the timet the of valuation. Th

disposal the carrying amount of the asset and related selling expenses. Gains and losses are recognised program. This revalua n cycle rately reflect the classification of assets in use. assets use. of in classification the rately reflect .1 million). All other transfer

in profit or loss in the statement of comprehensive income (from the proceeds of sale). (16,197) (93) (52,557) infrastructure Vessels Buses 5. Key assets 0 1,394 68 0 0 912 438,051 995 499,572 1,047,984 7,743,299

Assets the PTA utilises for economic benefit or service potential $000 $000 $000 $000 $000 $000 System This section includes information regarding the key assets the PTA utilises to gain economic benefits or provide service potential. The section sets out both the key accounting policies and financial information infrastructure about the performance of these assets:

2019 2018 Plant, vehicles Note & motor

$000 $000 equipment ing Standards and PTA revaluatio

Infrastructure, property, plant, equipment and vehicles 5.1 8,855,512 7,743,299 00

Intangibles 5.2 12,882 13,036 ,782 13,343 101,664 446,850 970 4 cost, which was prospectively recognised a Railway systems,new and solutions technology specialist theough as such SystemInformation Geographic ndent valuers GHD Pty Ltd. The carrying amoun

Total key assets 8,868,394 7,756,335 ssionals, coupled with comprehensive track a nalysis and validation of assumption ensured that the the PTA between asset classes to more accu infrastructure 0 (289) (9) (70) 0 0 175 110 48,957) (110,746) (4,078) (11,943) llion) and final costs for bridges at Lloyd Street Midland ($0 0 0 , in accordance with the Account accordance with the in , Freight network (Note 2)(Note Rollingstock infrastructure ant, equipment and vehicles transferred assets from Main Roads WA to PTA for Charles Street bus bridge and busw ork infrastructure by $89 million in 2019-20. t profiles and internal transfers made by by made transfers internal and profiles t best practice best practice aand replacement reasonable been revalued on 30 June 2019 by indepe 44,473 1,401,377 733,147 2,999,687 11,727 111, lised skills and experience of GHD profe ation from data and resources available thr

4 00 Land Buildings $000 $000 $000 $000 $000 $000 2,432 327 5,146 84,000 68,9 55 5,593 1,765 23,602 0 53,027 (307,083) (62,236) (1,174) 0 1,118,401 455,632 40,979 2,406,909 768,190 2,957 454,37 Carrying amount Carrying amount at 30 June 2019 Revaluation increments/ increments/ Revaluation (decrements) 0Depreciation (3,821) (118,015) ( Other disposals Other disposals Transfers (Note 1) 1) (Note Transfers of the freight network infrastructure is scheduled in June 2023 June in infrastructure is scheduled freight network of the mapping. GHD detailed analysis performed extensive sampling an d track ad satellite overhe imageryutilising and multiple accurate measurement l inspections to enable physica and verification of the physical assets. Specia valuation performed represents industry’s 5.1 property, pl Infrastructure, Year ended 30 June 2019 carrying Gross amount depreciation Accumulated Carrying amount 454,374at start of period 116,459 0 7,651,374 (71,986) (6,249,997) 1,437,365 (704,218)7,670 4,74 83) (1,747,9 (41,546) 53,273 (223,898) 335,810PTA recognised 2019, the June Note 1: On 30 (228,103)at Rivervale ($1.5 mi level crossings upgrades ($5 million); Land (2,584) 666,154 (450,563) 3,579 950,135 1,047,984 17,464,177 Note 2: Freight 2: Note has infrastructure network construction in progress to respective asse construction in Additions 0Additions 0 1 July 2018 2018 1 July an increase in depreciation of the freight netw an increase in depreciation 2015 as a resulta as 2015 inform accurate more of

122 Public Transport Authority Annual Report 2018-19 Public Transport Authority Annual Report 2018-19 123 Public Transport AuthorityAnnualReport2018-19 124

Plant, Freight equipment Year ended network Railway & motor System Bus Construction 30 June 2018 Land Buildings infrastructure Rollingstock infrastructure vehicles infrastructure infrastructure Vessels Buses in progress Total $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 1 July 2017 Gross carrying amount 477,380 103,021 7,634,647 1,456,288 4,629,747 59,620 338,521 434,395 3,579 923,136 823,034 16,883,368 Accumulated depreciation 0 (77,408) (6,121,090) (688,382) (1,669,078) (46,871) (229,638) (128,820) (2,491) (433,408) 0 (9,397,186) Carrying amount at start of period 477,380 25,613 1,513,557 767,906 2,960,669 12,749 108,883 305,575 1,088 489,728 823,034 7,486,182 Additions 00 0 0 380 122 35 83 0 0 573,664 574,284 Transfers (910) 2,081 16,728 11,877 147,542 2,923 14,693 47,468 0 66,158 (348,714) (40,154) Other disposals (1,330) 0 0 0 0 (36) 0 0 0 (1,222) 0 (2,588) Revaluation increments/ (decrements) (20,766) 19,578 0 0 00 0 96,427 0 0 0 95,239 Depreciation 0 (2,799) (128,908) (46,636) (108,904) (4,031) (11,699) (11,502) (93) (55,092) 0 (369,664) Carrying amount at 30 June 2018 454,374 44,473 1,401,377 733,147 2,999,687 11,727 111,912 438,051 995 499,572 1,047,984 7,743,299

Public Transport Authority Annual Report2018-19 Corporate Snapshot

Operational report Public Transport Authority Annual Report2018-19 Significant assumptions and judgements judgements and assumptions Significant Subsequent measurement Initial recognition Land was revalued as at 1 July 2018 by the Wester July 2018by at 1 as Land wasrevalued period. ofthereporting the end at fairvalue asset’s fromthe differ materially and (Valuations recognised a Property Analytics)and annually bythe valued lease, isindependently metropolitan controlled bythePTAincluding Land historical cost less accumulated deprec accumulated less cost historical ves of fixed assets are reviewed annually. are reviewed assets livesoffixed Theuseful obsolescence andassetusage. as to suchfactors havingregard are estimated and significant assumptions The most accumulated depreciation andaccumulated impairme rollingstock, vesselsandbuses. All assets except railwayinfr buildings, freightnetworkinfrastructure, the re asset,Subsequent an to initial as recognition intotal). are significant items which Comprehensive Income (other Statement of the to direct infrastructure and equipment plant and of property, valu nominal cost,thecostis fornoor acquired asset is $5,000 costing equipment, and plant ofproperty, Items Construction in progress is recognised at cost. recognised inprogressis Construction obsolescence. encompasses physical size specif project gross the utility and comparable generally byto determined reference the obse market economic benefits embodied in the asset, i.e. the cu by determined is assets infrastructure for value Fair available. evidence ofvalueis cost currentreplacement isbasedon The fairvalue utilising internalresourcesandrecent management professionals. valuers, engineeringand valu fair at revalued are rollingstock Transwa and infrastructure, railwayinfr Buildings, freightnetwork commerciallyleasedisindependently Land whichis 30June2019. at recognised and Analytics) and Property Governance andcompliance Governance deterioration, functional (technological deterioration, functional contract prices. Valuat contract judgement in estimating fair valu iation and accumulated impairment losses. accumulated impairmentlosses. and iation Financial Statements as the assets are specialised and limited market-based market-based limited and are specialised assets as the valuation model is used for the measurement of land, the measurementofland, valuation modelisusedfor reference to the cost of replacing the remaining future remaining the the costofreplacing to reference and regional corridor land, not subject to commercial to subject and regionalcorridorland,not n Australian LandInformat Australian n set maintenance, rate of technical and commercial commercial and set maintenance,rateoftechnical astructure, bus infrastructure, system infrastructure, infrastructure, system businfrastructure, astructure, rrent replacementcost.Currentcostis valued on the capitalisedvalue leases. of current the valued on plant and equipment are carried at fair valueless at fair carried are and equipment plant astructure, bus infrastructure, system infrastructure infrastructure system bus infrastructure, astructure, costing less than $5,000 are immediately expensed expensed immediately are $5,000 than less costing e using current replacement cost by independent independent cost by current replacement e using Western Australian Land Information Authority LandInformation Western Australian ications, adjusted for obsolescence. Obsolescence adjustedications, for obsolescence. nnually to ensure that the carrying amount tothe ensurennually does that not Buses, vessels and urban rollingstock are revalued revalued are urbanrollingstock and vessels Buses, ed at its fair value at the date of acquisition. Items dateofacquisition. the fairvalueat at its ed rvable replacement cost of a substitute asset of asset ofasubstitute cost rvable replacement nt losses. Plant and eq and Plant losses. nt or more are measured initially at cost. Where an Where cost. initially at are measured or more than where they form part of a group of similar they form part of where than ions are obtained every three tofiveyears. everythree ions areobtained ) obsolescence and economic (external) obsolescence andeconomic ) e are assets’ useful lives,which useful assets’ are e ion Authority (Valuations (Valuations ion Authority uipment are carried at at carried uipment are Return toContents Return 125

Public Transport Authority Annual Report 2018-19 Corporate Snapshot Operational report Governance and compliance Financial Statements Return to Contents

5.1.1 Depreciation 5.1.2 Impairment Charge for the period Non-financial assets, including items of property, plant and equipment, are tested for impairment annually 2019 2018 or whenever there is an indication that the asset may be impaired. Where there is an indication of $000 $000 impairment, the recoverable amount is estimated. Where the recoverable amount is less than the carrying Depreciation amount, the asset is considered impaired and is written down to the recoverable amount and an Buildings 3,820 2,799 impairment loss is recognised. Freight network infrastructure 118,016 128,908 Where an asset measured at cost is written down to its recoverable amount, an impairment loss is Rollingstock 48,957 46,636 recognised through profit or loss. Railway infrastructure 110,746 108,904 Where a previously revalued asset is written down to its recoverable amount, the loss is recognised as a 4,031 Plant, equipment and motor vehicles 4,078 revaluation decrement through other comprehensive income. Systems infrastructure 11,943 11,699 Bus infrastructure 16,197 11,502 There were no indications of impairment to property, plant and equipment, vehicles or infrastructure Vessels 93 93 assets at 30 June 2019. Buses 52,557 55,092 As the PTA is a not-for-profit entity, unless a specialised asset has been identified as a surplus asset, the Total depreciation for the period 366,407 369,664 recoverable amount of regularly revalued specialised assets is anticipated to be materially the same as fair value. As at 30 June 2019 there were no indications of impairment to infrastructure, property, plant, equipment and vehicles. If there is an indication that there has been a reversal in impairment, the carrying amount shall be increased to its recoverable amount. However, this reversal should not increase the asset’s carrying All surplus assets at 30 June 2019 have either been classified as assets held for sale or have been written-off. amount above what would have been determined, net of depreciation or amortisation, if no impairment Finite useful lives loss had been recognised in prior years. Buildings, freight network infrastructure, railway infrastructure, bus infrastructure, system infrastructure, The risk of impairment is generally limited to circumstances where an asset’s depreciation is materially rollingstock, vessels, buses, and plant and equipment having a limited useful life are systematically understated, where the replacement cost is falling or where there is a significant change in useful life. Each depreciated over their estimated useful lives in a manner that reflects the consumption of their future relevant class of assets is reviewed annually to verify that the accumulated depreciation/amortisation economic benefits. The exceptions to this rule include items under operating leases, assets held for sale reflects the level of consumption or expiration of the asset’s future economic benefits and to evaluate any and land. impairment risk from declining replacement costs. Depreciation is generally calculated on a straight line basis, at rates that allocate the asset’s value, less 5.2 Intangible assets any estimated residual value, over its estimated useful life. Typical estimated useful lives for the different Computer asset classes for current and prior years are included in the table below: Licences Software Total Year ended 30 June 2018 $000 $000 $000 Class of Asset Useful Life 1 July 2017 Buildings 10 to 50 years Gross carrying amount 8,201 19,728 27,929 Rollingstock 10 to 45 years Accumulated amortisation (1,799) (16,158) (17,957) Infrastructure (including bus, railway, freight network and system) 5 to 100 years Carrying amount at start of period 6,402 3,570 9,972 Plant, equipment and vehicles 3 to 40 years Additions and transfers in 1 6,118 6,119 Buses 10 to 45 years Amortisation expense (588) (2,467) (3,055) Vessels 4 to 20 years Carrying amount at 30 June 2018 5,815 7,221 13,036 The estimated useful lives, residual values and depreciation method are reviewed at the end of each annual reporting period and adjustments are made where appropriate. Year ended 30 June 2019 Land, which is considered to have an indefinite life, is not depreciated. Depreciation is not recognised 1 July 2018 because its service potential has not, in any material sense, been consumed during the reporting period. Gross carrying amount 8,202 25,846 34,048 Accumulated amortisation (2,387) (18,625) (21,012) Carrying amount at start of period 5,815 7,221 13,036 Additions and transfers in 0 2,489 2,489 Amortisation expense (588) (2,055) (2,643) Carrying amount at 30 June 2019 5,227 7,655 12,882

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Initial recognition 6. Other assets and liabilities Acquisitions of intangible assets costing $5,000 or more and internally generated intangible assets that This section sets out those assets and liabilities that arose from the agency’s controlled operations and comply with the recognition criteria as per AASB 138.57 (as noted below), are capitalised. includes other assets utilised for economic benefits and liabilities incurred during normal operations:

Costs incurred below $5,000 are immediately expensed directly to the Statement of comprehensive 2019 2018 Note income. $000 $000 Intangible assets are initially recognised at cost. For assets acquired at no cost or for nominal cost, the Receivables 6.1 23,641 29,013 cost is their fair value at the date of acquisition. Amounts receivable for services (Holding Account) 6.2 673,302 742,587 An internally generated intangible asset arising from development (or from the development phase of an Other current assets 6.3 13,892 11,852 internal project) is recognised if, and only if, all of the following are demonstrated: Inventories 6.4 18,242 16,456 a) The technical feasibility of completing the intangible asset so that it will be available for use or sale; Deferred income operating lease 6.5 (170,994) (176,460) Payables 6.6 (129,395) (114,435) b) An intention to complete the intangible asset and use or sell it; Other provisions 6.7 (8,589) (9,057) c) The ability to use or sell the intangible asset; Other current liabilities 6.8 (30) (40) d) The intangible asset will generate probable future economic benefit; 6.1 Receivables e) The availability of adequate technical, financial and other resources to complete the development 2019 2018 and to use or sell the intangible asset; and $000 $000 f) The ability to measure reliably the expenditure attributable to the intangible asset during its Current development. Receivables 2,770 6,542 Costs incurred in the research phase of a project are immediately expensed. Allowance for impairment of receivables (59) (103) Accrued revenue 7,338 5,716 Subsequent measurement GST receivable 13,140 16,674 The cost model is applied for subsequent measurement of intangible assets, requiring the asset to be Other receivables – external works 452 184 carried at cost less any accumulated amortisation and accumulated impairment losses. Total receivables 23,641 29,013 5.2.1 Amortisation and impairment The PTA does not hold any collateral or other credit enhancements as security for receivables. Charge for the period Receivables are recognised at original invoice amount less any allowances for uncollectible amounts 2019 2018 (i.e. impairment). The carrying amount of net trade receivables is equivalent to fair value as it is due for $000 $000 settlement within 30 days. Amortisation 6.1.1 Movement of the allowances for impairment of receivables Computer software 2,055 2,467 2019 2018 Licences 588 588 $000 $000 Total amortisation for the period 2,643 3,055 Reconciliation of changes in the allowance for As at 30 June 2019 there were no indications of impairment to intangible assets. impairment of receivables: Balance at start of period 103 139 The PTA held no goodwill or intangible assets with an indefinite useful life during the reporting period. At Remeasurement under AASB 9 51 0 the end of the reporting period there were no intangible assets not yet available for use. All surplus assets at 30 June 2019 had been written-off. Restated balance at start of period 154 139 Doubtful debts expense 0 92 Amortisation of finite life intangible assets is calculated on a straight line basis at rates that allocate the Expected credit losses expense 8 0 asset’s value over its estimated useful life. All intangible assets controlled by the PTA have a finite useful Amount written off during the period (99) (127) life and zero residual value. Estimated useful lives are reviewed annually. Amount recovered during the period (4) (1) The expected useful lives for each class of intangible asset are: Balance at end of period 59 103

Class of Intangible asset Useful Life The maximum exposure to credit risk at the end of the reporting period for trade receivables is the carrying Software* 2 to 5 years amount of the asset inclusive of any allowance for impairment as shown in the table Note 9.1(d) ‘Financial Website costs 3 to 5 years instruments disclosures’. Licences 15 years The PTA does not hold any collateral as security or other credit enhancements for trade receivables. * Software that is not integral to the operation of any related hardware. Impairment of intangible assets Intangible assets with finite useful lives are tested for impairment annually or when an indication of impairment is identified. The policy in connection with testing for impairment is outlined in note 5.1.2.

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6.2 Amounts receivable for services (Holding Account) (i) The sale of the Westrail Freight Business on 17 December 2000 included an operating lease of the 2019 2018 freight network infrastructure for 49 years between the Western Australian Government Railways $000 $000 Commission (WAGR) – now the PTA and Westnet Rail Pty Ltd – now Arc Infrastructure Pty Ltd. The lease rentals were fully prepaid on 17 December 2000, and credited to deferred operating lease Current 154,933 122,641 revenue. Non-current 518,369 619,946 Balance at end of period 673,302 742,587 (ii) A 99-year operating lease for 118 grain receival sites was entered into with Co-operative Bulk Handling (CBH) in 2003. Rental income for 99 years of $7.45 million was received in full at the Amounts receivable for services represent the non-cash component of operating subsidy contribution. It commencement of the lease, and is accounted for as revenue over the 99-year lease period, with the is restricted in that it can only be used for asset replacement or payment of leave liability. prepaid portion shown as deferred income. (See note 4.3 ‘Operating lease revenue’). The PTA receives funding on an accrual basis. The operating subsidy are paid partly in cash and partly as A further 99-year operating lease for 15 grain receival sites was entered into with CBH in 2004. an asset (holding account receivable) until 2011-12. From 2012-13, the PTA no longer receives funding Rental income for 99 years of $775,000 was received in full at the commencement of the lease, and into holding account receivable. The accrued amount receivable is accessible on the emergence of the is accounted for as revenue over the 99-year lease period, with the prepaid portion shown as deferred cash funding requirement to cover leave entitlements and asset replacement. income. (See note 4.3 ‘Operating lease revenue’). 6.3 Other assets 6.6 Payables 2019 2018 2019 2018 $000 $000 $000 $000 Current Current Prepayments 13,892 11,852 Accrued operational expenses 94,946 82,521 Balance at end of period 13,892 11,852 Accrued interest 19,260 18,849 Accrued salaries 6,529 7,467 Other non-financial assets include prepayments which represent payments in advance of receipt of goods Trade payables 6,061 3,725 or services or that part of expenditure made in one accounting period covering a term extending beyond Other payables 2,599 1,873 that period. Balance at end of period 129,395 114,435 6.4 Inventories Payables are recognised at the amounts payable when the PTA becomes obliged to make future payments 2019 2018 as a result of a purchase of assets or services. The carrying amount is equivalent to fair value, as $000 $000 settlement is generally within 30 days. Current Inventories not held for resale: Accrued salaries represent the amount due to staff but unpaid at the end of the reporting period. Accrued Maintenance spares – at cost 18,242 16,456 salaries are settled within a fortnight of the reporting period end. The PTA considers the carrying amount of accrued salaries to be equivalent to its fair value. Inventories are measured at the lower of cost and net realisable value. Costs are assigned by the method most appropriate to each particular class of inventory. Inventory recorded using the inventory control The accrued salaries suspense account (see Note 8.3.1 ‘Restricted cash and cash equivalents’) consists system is valued at the weighted average cost and the remainder is valued on a first in first out basis. of amounts paid annually, from PTA’s appropriations for salaries expense, into a Treasury suspense account to meet the additional cash outflow for employee salary payments in reporting periods with Inventories not held for resale are measured at cost unless they are no longer required, in which case they 27 pay days instead of the normal 26. No interest is received on this account. are measured at net realisable value. 6.7 Other provisions 6.5 Deferred income – operating lease 2019 2018 Note 2019 2018 $000 $000 $000 $000 Current Current Workers’ compensation 6.7.1 (2,957) (3,725) Freight network infrastructure prepaid operating lease 5,383 5,383 Contaminated sites 6.7.1 4,906 5,681 Co-operative Bulk Handling 99-year lease 83 83 Total current 1,949 1,956 Total current 5,466 5,466 Non-Current Non-Current Contaminated sites 6,640 7,101 Freight network infrastructure prepaid operating lease 158,791 164,174 Total non-current 6,640 7,101 Co-operative Bulk Handling 99-year lease 6,737 6,820 Balance at end of period 8,589 9,057 Total non-current 165,528 170,994

Balance at end of period 170,994 176,460

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Provision for Workers’ Compensation 7. Financial assets and financial liabilities Provision is made for all outstanding claims from periods before 1 July 1997 and any previous years fund 2019 2018 contribution assessments based on claims experience and performance adjustment from RiskCover. The $000 $000 amount of the provision is the estimated outstanding value of claims plus any actuarial assessments of Financial assets the previous years adjusted fund contribution at the end of the reporting period. Derivatives designated as hedging instruments: The workers’ compensation fund contributions are initially calculated on estimates of wages, prior year Cash flow hedges claims and budgeted investment income and are then adjusted on the actual outcomes of these factors Current foreign exchange forward contracts 28 4 for the period of cover. Workers’ compensation fund contributions are adjusted three years after the close Non-current foreign exchange forward contracts 0 0 of the period of cover and the PTA has made a provision based upon the RiskCover performance Total instruments at fair value through OCI 28 4 adjustment. The performance adjustment outcome for a year is influenced by the actual experience for a year being different to what was expected when the fund contribution was set. Differences can arise when Other financial liabilities the actual outcome is different from that originally projected, specifically in relation to number of claims Derivatives designated as hedging instruments: received, cost of the claims, reinsurance costs and investment returns. Cash flow hedges Current foreign exchange forward contracts 0 (341) Provision for Contaminated sites Total instruments at fair value through OCI 0 (341) Provision is recognised for the sites that are classified as contaminated – remediation required or possibly contaminated – investigation required, and where the PTA has a liability in respect of investigation or The PTA enters into foreign exchange forward contracts with the Western Australian Treasury remediation expenses. Corporation to hedge its exposure to foreign currency risks. The foreign exchange forward contracts are designated as cash flow hedges and are entered into for periods with foreign currency exposure of the The contaminated sites provision is the present value on the best estimates made by management for underlying transactions. investigation or remediation expenses of contaminated or suspected contaminated sites. Initial recognition and subsequent measurement Future remediation costs are reviewed annually and any changes in the estimates are reflected in the remediation provision at each reporting date. The foreign exchange forward contracts are initially recognised at fair value on the date on which it is entered into and are subsequently remeasured at fair value. Any gains or losses arising from changes in 6.7.1 Movement in provisions the fair value are taken directly to profit or loss, except for the effective portion of cash flow hedges. Movements in each class of provisions during the period, are set out below: Cash flow hedges

2019 2018 Forward foreign exchange contracts are entered into as hedges to avoid or minimise possible adverse $000 $000 financial effects of movements in exchange rates. Such derivatives are stated at fair value. Changes in the Workers’ compensation provisions (i) fair value of derivatives that are designated and effective as hedges of future cash flows are recognised Carrying amount at start of period (3,725) (2,115) directly in other comprehensive income and the ineffective portion is recognised immediately in profit or Additional provisions recognised 4,538 3,034 loss. Payments/other sacrifices of economic benefit (3,770) (4,644) When the hedged firm commitment results in the recognition of an asset or a liability, then, at the time Carrying amount at end of period (2,957) (3,725) the asset or liability is recognised, the associated gains or losses that had previously been recognised in other comprehensive income are included in the initial measurement of the acquisition cost or other Contaminated sites provision carrying amount of the asset or liability. For all other cash flow hedges, the gains or losses that are Carrying amount at start of period 12,782 11,188 recognised in other comprehensive income are reclassified to profit or loss in the same period in which Additional provisions recognised 1,761 6,444 the hedged firm commitment affects profit or loss. Payments/other sacrifices of economic benefit (2,993) (4,850) When a hedging instrument expires or is sold, terminated, or exercised, or when a hedge no longer meets Carrying amount at end of period 11,550 12,782 the criteria for hedge accounting, any cumulative gain or loss that was recognised in other comprehensive (i) The workers’ compensation provision balance is in debit in the current and previous year due to higher workers’ compensation income at that time remains separately in equity until the forecast transaction occurs. When a forecast fund contributions in prior years. This balance does fluctuate into credit when the workers’ compensation fund contributions transaction is no longer expected to occur, the cumulative gain or loss that was recognised in other are lower than the estimated outstanding value of claims plus any actuarial assessments of the previous years adjusted fund comprehensive income is immediately reclassified to profit or loss as a reclassification adjustment. contributions at the end of the reporting period. 6.8 Other liabilities 2019 2018 $000 $000 Current Contractors’ deposits 0 3 Payments held in suspense 24 23 Parental leave 6 14 Balance at end of period 30 40

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8. Financing 8.3 Cash and cash equivalents This section sets out the material balances and disclosures associated with the financing and cashflows 8.3.1 Reconciliation of cash of the PTA. 2019 2018 Note $000 $000 Borrowings 8.1 Cash and cash equivalents 167,263 205,088 Finance costs 8.2 Restricted cash and cash equivalents 281,591 18,518 Cash and cash equivalents 8.3 Balance at end of period 448,854 223,606 Reconciliation of cash 8.3.1 Reconciliation of operating activities 8.3.2 Restricted cash and cash equivalents Commitments 8.4 2019 2018 Non-cancellable operating lease commitments 8.4.1 $000 $000 Capital commitments 8.4.2 Current Other expenditure commitments 8.4.3 Royalties for Regions Fund (i) 128 375 8.1 Borrowings Parental leave 6 14 2019 2018 Commonwealth funds (55) 1,028 $000 $000 METRONET Account (iii) 275,553 9,964 Funding segregated for specific projects 1,793 3,675 Current Accrued salaries suspense account (ii) 1,423 0 Western Australian Treasury Corporation Loans 165,772 137,798 278,848 15,056 Non-Current Non-Current Western Australian Treasury Corporation Loans 2,206,946 2,125,713 Accrued salaries suspense account (ii) 2,743 3,462 Balance at end of period 2,372,718 2,263,511 (i) Unspent funds are committed to projects and programs in WA regional areas. All loans payable are initially recognised at fair value, being the net proceeds received. Subsequent (ii) Funds held in suspense account used only for the purpose of meeting the 27th pay in a financial year that occurs every 11 years. measurement is at amortised cost using the effective interest rate method. (iii) The METRONET Account – cash held in this account is to be used only for the purpose as prescribed in note 10.6 ‘The METRONET Account’. 8.2 Finance costs 2019 2018 Financing facilities $000 $000 2019 2018 Interest expense on Western Australian Treasury Corporation $000 $000 (WATC) borrowings 89,037 86,640 The PTA has a short-term liquidity facility of $200 million (2017-18: $200 million) with the Western Australian Treasury Corporation Finance costs expensed 89,037 86,640 Amounts drawn from this facility at June 30 0 0 ‘Finance costs expensed’ includes costs incurred in connection with the borrowing of funds for short-term and long-term borrowings. The PTA has a working capital facility of $60 million (2017-18: The PTA has made a determination to expense all borrowing costs associated with the construction of $60 million) with the Western Australian Treasury Corporation capital projects as allowed by the alternative accounting treatment under AASB 123 Borrowing Costs. Amounts drawn from this facility at June 30 0 0

For the purpose of the statement of cash flows, cash and cash equivalent (and restricted cash and cash equivalent) assets comprise cash on hand and short-term deposits with original maturities of three months or less that are readily convertible to a known amount of cash and which are subject to insignificant risk of changes in value.

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8.3.2 Reconciliation of net cost of services to net cash flows used in operating activities 8.4.3 Other expenditure commitments

2019 2018 Other expenditure commitments contracted for at the end of the reporting period but not recognised as Note $000 $000 liabilities, are payable as follows: Net cost of services (1,191,742) (1,177,363) 2019 2018 $000 $000 Non-cash items: Depreciation and amortisation expense 5.1.1, 5.2.1 369,050 372,719 Within one year 722,672 741,564 Loss/(gain) on disposal of non-current assets 4.7 (180) 1,710 Later than one year and not later than five years 1,900,089 1,997,811 Services received free of charge 4.1 843 728 Later than five years 548,538 585,674 Net foreign exchange loss/(gain) (24) (224) 3,171,299 3,325,049 Doubtful debts expense 6.1.1 0 92 The totals presented for other expenditure commitments are GST inclusive. Receivables written off during the period 99 0 Expected credit losses expense 8 0 9. Risks and contingencies Deferred lease income 4.3 (5,466) (5,466) This note sets out the key risk management policies and measurement techniques of the PTA. (Increase)/decrease in assets: Current receivables (i) (204) 2,198 Note Current inventories (1,786) (990) Change in GST receivables/payments (ii) 3,534 4,780 Financial risk management 9.1 Contingent assets 9.2.1

Increase/(decrease) in liabilities: Contingent liabilities 9.2.2 Current payables (i) 9,867 6,233 Fair value measurements 9.3 Current provisions 2,025 474 Other current liabilities (11) (580) 9.1 Financial risk management Non-current provisions 553 790 Financial instruments held by the PTA are cash and cash equivalents, restricted cash and cash equivalents, Net cash used in operating activities (813,434) (794,899) receivables, payables, Western Australian Treasury Corporation (WATC) borrowings and foreign (i) Note that the Australian Taxation Office (ATO) receivable/payable in respect of GST and the receivable/payable in respect exchange forward contracts. The PTA has limited exposure to financial risks. The PTA’s overall risk of the sale/purchase of non-current assets are not included in these items as they do not form part of the reconciling items. management program focuses on managing the risks identified below. (ii) This reverses out the GST in receivables and payables. a) Summary of risks and risk management 8.4 Commitments Credit risk 8.4.1 Non-cancellable operating lease commitments Credit risk arises when there is the possibility of the PTA’s receivables defaulting on their contractual Commitments for minimum lease payments are payable as follows: obligations resulting in financial loss to the PTA. 2019 2018 Credit risk associated with the PTA’s financial assets is minimal because the main receivable is the $000 $000 amounts receivable for services (Holding Account). For receivables other than Government, the PTA Within one year 4,601 4,709 trades only with recognised, creditworthy third parties. The PTA has policies in place to ensure that sales Later than one year and not later than five years 8,281 7,311 of products and services are made to customers with an appropriate credit history. In addition, receivable Later than five years 13,813 9,137 balances are monitored on an ongoing basis with the result that the PTA’s exposure to bad debts is Balance at end of period 26,695 21,157 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. Operating leases are expensed on a straight line basis over the lease term as this represents the pattern of benefits derived from the leased properties. The PTA has entered into a number of operating lease Liquidity risk arrangements where the lessor effectively retains materially all of the risks and benefits incidental to Liquidity risk arises when the PTA is unable to meet its financial obligations as they fall due. ownership of the items held under the operating leases. The PTA is exposed to liquidity risk through its trading in the normal course of business. 8.4.2 Capital commitments The PTA has appropriate procedures to manage cash flows including drawdown of appropriations by monitoring forecast cash flows to ensure that sufficient funds are available to meet its commitments. Capital expenditure commitments, being contracted capital expenditure additional to the amounts reported in the financial statements, are payable as follows: Market risk 2019 2018 Market risk is the risk that changes in market prices such as foreign exchange rates and interest rates will $000 $000 affect the PTA’s income or the value of its holdings of financial instruments. The PTA’s exposure to market Within one year 417,392 420,252 risk for changes in interest rates relate primarily to the long-term debt obligations. Later than one year and not later than five years 560,326 361,792 All borrowings are due to the WATC and are repayable at fixed rates with varying maturities. Other than Later than five years 307,844 3,491 as detailed in the interest rate sensitivity analysis table at Note 9.1(f), the PTA is not exposed to interest 1,285,562 785,535 rate risk because the majority of cash and cash equivalents and restricted cash are non-interest bearing, The totals presented for capital commitments are GST inclusive. with the exception of METRONET Special Purpose Account balance and it has no borrowings other than WATC borrowings.

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Foreign currency risk d) Credit risk exposure Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate The following table details the credit risk exposure on the PTA’s trade receivables using a provision matrix. because of changes in foreign exchange rates. The PTA’s exposure to the risk of changes in foreign exchange rates relates primarily to the PTA’s Asset Investment Program activities (when capital Days past due expenditure is denominated in a foreign currency). Total Current <30 days 31–60 days 61–90 days >90 days The PTA uses foreign exchange forward contracts to manage its foreign currency risk for transactions $000 $000 $000 $000 $000 $000 that are payable in a foreign currency. 30 June 2019 The PTA enters into foreign exchange forward contracts with the Western Australian Treasury Estimated credit loss rate 0% 0.5% 0.7% 2.6% 37% Corporation. Foreign exchange forward contracts are designated as hedging instruments in cash flow Estimated total gross carrying 2,689 344 1,630 393 209 113 hedges of highly probable forecast purchases or firm commitment for future purchases in foreign currencies. The currencies giving rise to this risk are primarily Euro and Swedish Krona. amount at default Expected credit losses (59) 0 (9) (3) (5) (42) b) Categories of financial instruments 1 July 2018 (Remeasurement) The carrying amounts of each of the following categories of financial assets and financial liabilities at the end of the reporting period are: Expected credit loss rate 0% 0.3% 0.5% 4.7% 54% 2019 2018 Estimated total gross carrying 6,456 772 5,260 245 131 48 $000 $000 amount at default Financial assets Expected credit losses (51) 0 (17) (1) (6) (27) Cash and cash equivalents 167,263 205,088

Restricted cash and cash equivalents 281,591 18,518

Loans and receivables (i) 683,803 754,926 Foreign exchange forward contract 28 4 Total financial assets 1,132,685 978,536 Financial liabilities Financial liabilities measured at amortised cost 2,502,143 2,377,986 Foreign exchange forward contracts 0 341 Total financial liabilities 2,502,143 2,378,327 (i) The amount of loans and receivables excludes GST recoverable from the ATO (statutory receivable). c) Foreign currency risk Euro Swedish Krona 2019 2018 2019 2018 $000 $000 $000 $000 Foreign currency forward contracts designated as hedging instruments 3,663 3,624 0 6,686

Settlement dates of foreign exchange forward contracts Notional amount Up to 1 1 to 3 3 months 1 to 5 More than AUD month months to 1 year years 5 years $000 $000 $000 $000 $000 $000 2019 Euro 3,663 0 0 3,663 0 0 3,663 0 0 3,663 0 0 2018 Euro 3,624 0 0 3,624 0 0 Swedish Krona 6,686 6,686 0 0 0 0 10,310 6,686 0 3,624 0 0

138 Public Transport Authority Annual Report 2018-19 Public Transport Authority Annual Report 2018-19 139 Public Transport AuthorityAnnualReport2018-19 140 e) Liquidity risk and interest rate exposure The following table details the PTA’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.

Interest rate exposure and maturity analysis of financial assets and financial liabilities Weighted Interest rate exposure Maturity dates average Fixed Variable Non- effective Carrying interest interest interest Nominal Up to 1 to 3 3 months 1 to 5 More than interest amount rate rate (ii) bearing amount 1 month months to 1 year years 5 years Note rate % $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 2019 Financial assets Cash and cash equivalents 8.3 2.07 167,263 0 167,263 0 167,263 167,263 0 0 0 0 Restricted cash and cash equivalents 8.3 2.07 281,591 0 281,591 0 281,591 281,591 0 0 0 0 Receivables (i) 6.1 10,501 0 0 10,501 10,501 10,501 0 0 0 0 Amounts receivable for services 6.2 673,302 0 0 673,302 673,302 0 0 154,933 298,331 220,038 1,132,657 0 448,854 683,803 1,132,657 459,355 0 154,933 298,331 220,038 Financial liabilities Payables 6.6 129,395 0 0 129,395 129,395 129,395 0 0 0 0 Other current liabilities 6.8 30 0 0 30 30 30 0 0 0 0 WATC borrowings (iii) 8.1 3.15 2,372,718 2,372,718 0 0 2,942,873 62,278 1,442 186,545 930,272 1,762,336 2,502,143 2,372,718 0 129,425 3,072,298 191,703 1,442 186,545 930,272 1,762,336 Public Transport Authority Annual Report2018-19 2018 Financial assets Cash and cash equivalents 8.3 1.95 205,088 0 205,088 0 205,088 205,088 0 0 0 0 Restricted cash and cash equivalents 8.3 1.95 18,518 0 18,518 0 18,518 18,518 0 0 0 0 Receivables (i) 6.1 12,339 0 0 12,339 12,339 12,339 0 0 0 0 Amounts receivable for services 6.2 742,587 0 0 742,587 742,587 0 0 122,641 318,582 301,364 978,532 0 223,606 754,926 978,532 235,945 0 122,641 318,582 301,364 Financial liabilities Payables 6.6 114,435 0 0 114,435 114,435 114,435 0 0 0 0 Other current liabilities 6.8 40 0 0 40 40 40 0 0 0 0 WATC borrowings (iii) 8.1 3.41 2,263,511 2,263,511 0 0 2,972,357 115,534 1,291 128,255 889,756 1,837,521 Corporate Snapshot 2,377,986 2,263,511 0 114,475 3,086,832 230,009 1,291 128,255 889,756 1,837,521 (i) The amount of receivables excludes GST recoverable from the ATO (statutory receivable). (ii) Variable interest rates represent the most recently determined rate applicable to the instrument at the end of the reporting period. (iii) The principal repayment of the WATC loans is based on a 25-year repayment schedule.

Operational report Public Transport Authority Annual Report2018-19 9.2.2 Contingent liabilities Contingent 9.2.2 assets Contingent 9.2.1 Contingent assetsandliabilities 9.2 Interestrate sensitivity analysis f) value unless otherwise statedintheapplicablenotes. value unless investigation required or possibly contaminated – classified as contaminated – remediation required are sites values. Where risk ofthe basis the siteson these classifies DWER sites to the Department of Wa Department sites to the Under the ContaminatedSitesAct2003 Contaminated sites Li the Forrestfield-Airport of with theconstruction incurspersonal due injury, to third party property Ai toPerth an indemnity granted thePTA In April2016, negotiations. settlement todisclo October 2019.Itis notpossible heard on10 landfortheconstruc acquisition of the third partywith by a been lodged has A claim to in relation of any eventual payment plaintiff isstill toquantify The action. defending the Law the AustralianConsumer obligations of contractual breach and the Supr action in has commenced A former contractor in progress Litigation excluded from liabilities are The following contingent June 2019.as at 30 assets contingentThere were no liabilities Contingent assetsand value. nominal at are measured quantifiable, not recognised in the Statem Contingent liabilities are amou at recognised are fairvalue, cost or at carried inth recognised and liabilities assets All financial Fair values Assets Financial 2018 Total increase/(decrease) equivalent cash cash and Restricted Cash and equivalents cash Financial Assets 2019 Deficit Carrying period. reporting the throughout constant held rates is rates. It isassumed interest that the chan in ge interest in a 1% change for equity and theperiod for thesurplus on period the reporting of end atthe liabilities The following tablerepresents a summa Cash andcash equivalents etitdcs n aheuvlns 858 15 (8) 8 185 185 (185) (185) 18,518 Total increase/(decrease) Restricted cash and cash equivalents has put in place insurance to reduce the Stat the to reduce place insurance put in has Governance andcompliance Governance , the PTA mayhavealiabilityin respect the PTA , ter and Environment Regulation( Environment and ter are presented exclusive of GST rece ofGST presented exclusive are tion of public transport infrastructure. The claim is scheduled to be to be scheduled is The claim transport infrastructure. ofpublic tion s 281,591 (2,816) (2,816) 2,816 2,816 2,816 2,816 (2,816) (2,816) s 281,591 this claim at balance sheet date. date. sheet balance at this claim , toreport the PTAisrequired 0,8 201 201 201 2,051 2,051 (2,051) 205,088 ry of the interest rate sensitivity ofthe PTA’s financialassets and 167,263 (1,673) (1,673) 1,673 1,673 1,673 1,673 (1,673) (1,673) 167,263 amount $000 $000 e’s exposure to claims under the indemnity. the indemnity. under claims to e’s exposure Financial Statements

(,3)(,3) ,3 2,236 2,236 (2,236) (2,236) (4,489) (4,489) 4,489 4,489 4,489 4,489 (4,489) (4,489) damage and consequential losses arising in connection arising inconnection losses and consequential damage to human health, the environment and environmental the environment health, to human nk project on and underneat project on nk the claim and it is not possible to estimate the amount amount the toestimate possible it isnot and claim the e Statement ofe financial Statement position, whetherare they nts that represent a reasonab represent that nts Supreme Court in relation to taking orders for the the Supreme Courtinrelationtotakingordersfor se the amount oftheclaimasitcouldcompromise se theamount the liabilities included in the financial statements: statements: includedinthefinancial the liabilities ent of financial position but are disclosed and, if and, if disclosed but are position ent of financial eme Court against the PTA relating to a claim for thePTArelating toaclaim against eme Court $000 $000 rport Pty Ltdforanylossorliabilityitsuffers rport Pty -100 basis points points -100 basis of investigation or remediation expenses. remediation of investigation or

. The PTA has denied all liability and is is liability and all denied has PTA The . DWER ivable or payable respectively. payable ivable or known and suspected contaminated contaminated suspected known and Equity $000 $000 ). In accordance with the Act, Act, withthe accordance In ).

h . The PTA le approximation of fair le approximationoffair Return toContents Return Deficit Deficit $000 $000 +100 basis points points +100 basis

Equity $000 $000 141

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During the year no additional known or suspected contaminated sites owned or controlled by the PTA, or 0

affected by activities on land owned or controlled by the PTA, were reported to DWER. No additional PTA $000 sites have been classified by DWER as contaminated – remediation required or possibly contaminated – Vessels investigation required. The PTA is currently investigating and managing the outcome of the classification process from previous years. Whilst there is no possibility of reimbursement of any future expenses that may be incurred in the remediation of these sites, the PTA may apply for funding from the Contaminated

Sites Management Account to undertake further investigative work or to meet remediation costs that Bus may be required. $000

9.3 Fair value measurements infrastructure Fair value at end 0 1,394 68 Level 1 Level 2 Level 3 of the period 0 96,427

Note $000 $000 $000 $000 $000 2019 Railway Assets measured at fair value: Land 5 0 0 455,632 455,632 infrastructure 0 Buildings 5 0 0 40,979 40,979 0 Freight network infrastructure 5 0 0 2,406,909 2,406,909 Systems infrastructure 5 0 0 101,664 101,664 $000 Rollingstock 5 0 707,011 61,179 768,190 Rollingstock Railway infrastructure 5 0 0 2,957,782 2,957,782 Bus infrastructure 5 0 0 446,850 446,850 2 67,142 2,999,687 438,051 995 0 Vessels 5 0 0 970 970 0

Buses 5 0 499,049 0 499,049 $000 Non-current assets classified as Systems

held for sale – Land 10.8 0 2,860 0 2,860 infrastructure 0 1,208,920 6,471,965 7,680,885 2018 0

Assets measured at fair value: $000 Freight Land 5 0 0 454,374 454,374 network 1,513,557 108,883 2,960,669 73,105 305,575 1,088

Buildings 5 0 0 44,473 44,473 2,406,909 101,664 61,179 2,957,782 446,850 970 infrastructure Freight network infrastructure 5 0 0 1,401,377 1,401,377

Systems infrastructure 5 0 0 111,912 111,912 3 1,401,377 111,912 67,142 2,999,687 438,051 995 Rollingstock 5 0 666,005 67,142 733,147 $000 Railway infrastructure 5 0 0 2,999,687 2,999,687 Buildings Bus infrastructure 5 0 0 438,051 438,051 Vessels 5 0 0 995 995

Buses 5 0 499,572 0 499,572 0 (2,799) (128,908) (11,699) (5,963) (108,904) (11,502) (93) 0 0 0 0 0 175 0 0 0 0 0 0 0 0 (70) 0 (289) 0 (289) 0 (70) 0 0 0 (3,821) (118,015) (11,943) (5,963) (110,746) (16,197) 83 0 (93) 380 35 0 0 0 Non-current assets classified as 0 0 0 0 0 0 0 0 Land $000 1,950 2,081 16,728 14,693 0 147,542 47,468 0 held for sale – Land 10.8 0 2,860 0 2,860 2,432 327 5,146 1,765 68,955 0 23,602 0 (1,330) 0 0 0 0 0 0 0 0 0 0 (1,330) (2,860) 0 0 0 0 (2,860) 454,374 1,401,377 44,473 111,91 455,632 40,979 455,632 40,979 454,374 44,47 0 1,168,437 5,518,011 6,686,448 25,613 477,380 There were no transfers between Levels 1, 2 or 3 during the current and previous periods. Valuation techniques to derive Level 2 fair values

Level 2 fair values of rollingstock and buses and non-current assets classified as held for sale are derived icant unobservable inputs (Level 3) using the market approach. Market evidence of sales prices of rollingstock and bus contracts held by the PTA are used to determine price per railcar and bus respectively. It should be noted that rollingstock is classified as both level 2 and level 3 on the fair value hierarchy as while market information is available

for urban railcars, regional rollingstock has been valued by an independent third party as no observable inputs are available. Non-current assets held for sale have been measured at fair value less cost to sell. Fair value has been determined by reference to market evidence of sales price agreed upon by both parties in the Contract of Sale.

Depreciation expense Transfers Disposals Other at end of period valueFair Additions Revaluation increments/(decrements) recognised in Other Comprehensive Income (1,174) 0 1,118,401 Fair value measurements using signif using measurements value Fair 2019 period of startvalueat Fair Transfers Depreciationexpense Other at value Fair end period of 2018 at value Fair period of start Additions increments/(decrements) Revaluation inrecognised ComprehensiveOther Income (20,766) 19,578 Disposals

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Valuation processes and basis of valuation Significant Level 3 unobservable inputs used by the PTA are derived and evaluated as follows:

There were no changes in valuation techniques during the period. Revaluation is set every three to five years for Fair value Valuation Description Unobservable inputs Source each asset cost profile held at fair value. 2019 2018 technique(s) $000 $000 Land Western Australia Land Market Selection of land with similar approximate Land 455,632 454,374 Information Authority (Valuation Fair value for restricted use land is based on comparison with market evidence for land with low level utility (high approach utility Services) restricted use land). The relevant comparators of land with low level utility is selected by the Western Australian Internal asset management experts Land Information Authority (Valuations and Property Analytics) and represents the application of a significant Consumed economic based on the recurrent Level 3 input in this valuation methodology. The fair value measurement is sensitive to values of comparator land, Current benefit/obsolescence of asset maintenance and asset with higher values of comparator land correlating with higher estimated fair values of land. Buildings 40,979 44,473 Replacement management plans Cost Replacement cost per square metre floor Valuation reports supplied by Land which is commercially leased was independently valued on the capitalised value of current lease by Burgess area (m2) independent valuation experts Rawson. The valuations were performed during the 2018-19 year and recognised at 30 June 2019. Replacement cost per individual items Rider Levett Bucknall in 2018 Buildings and infrastructure Internal asset management experts Consumed economic based on the recurrent Fair value for the following buildings and infrastructure assets is determined by reference to the cost of replacing benefit/obsolescence of asset maintenance and asset the remaining future economic benefits embodied in the asset, i.e. the current replacement cost. Current Freight Current management plans network 2,406,909 1,401,377 Replacement Replacement cost per kilometre of network replacement cost is generally determined by reference to the market observable replacement cost of a substitute infrastructure Cost Replacement cost per kilometre of rail Valuation reports supplied by asset of comparable utility and the gross project size specifications, adjusted for obsolescence. independent valuation experts Replacement cost per cubic metre of ballast GHD Pty Ltd in 2019 Buildings and bus infrastructure have been revalued as at 30 June 2018 by independent valuers Rider Levett Replacement cost per sleeper Bucknall. Internal asset management experts Rollingstock has been revalued as at 30 June 2017 by both independent valuers SNC-Lavalin Rail & Transit Pty Consumed economic based on the recurrent Current benefit/obsolescence of asset maintenance and asset Systems Ltd for the Transwa rollingstock assets and by taking up the PTA’s latest contract pricing from EDI Rail- 101,664 111,912 Replacement management plans infrastructure Bombardier Transportation Pty Ltd for the Perth metropolitan area rollingstock assets. Cost Replacement cost per individual items Valuation reports supplied by independent valuation experts Buses have been revalued as at 30 June 2017 by taking up the PTA’s latest contract pricing from Volvo. Replacement cost per kilometre of cabling GHD Pty Ltd in 2017 Vessels have been revalued as at 30 June 2019 by taking up the PTA’s latest vessel contract price, adjusted for Internal asset management experts the obsolescence. Consumed economic based on the recurrent benefit/obsolescence of asset maintenance and asset Current management plans Freight network infrastructure has been revalued on 30 June 2019 by independent valuers GHD Pty Ltd. The Rollingstock 61,179 67,142 Replacement carrying amount has increased by $1.1 billion since last revaluation in 2015 as a result of more accurate information Cost Valuation report supplied by independent valuation experts from data and resources available through specialist technology solutions and new systems, such as the Replacement cost per railcar components SNC-Lavalin Rail & Transit Pty Ltd Geographic Information System mapping. GHD performed extensive sampling and detailed track analysis utilising in 2017 overhead satellite imagery and multiple physical inspections to enable accurate measurement and verification of Internal asset management experts the physical assets. Specialised skills and experience of GHD professionals, coupled with comprehensive track Consumed economic based on the recurrent analysis and validation of assumption ensured that the valuation performed represents industry’s best practice benefit/obsolescence of asset maintenance and asset and a reasonable replacement cost, which was prospectively recognised at the time of valuation. The next management plans Replacement cost per individual tunnel scheduled revaluation of the freight network infrastructure is scheduled in June 2023, in accordance with the Current Railway Accounting Standards and PTA revaluation cycle program. This revaluation increment will result in an increase in 2,957,782 2,999,687 Replacement Replacement cost per station structure infrastructure depreciation of the Freight network infrastructure by $89 million in 2019-20. Cost Replacement cost per kilometre of rail line Valuation reports supplied by Replacement cost per signal independent valuation experts Railway infrastructure has been revalued on 30 June 2016 through a combination of an independent valuation by Replacement cost per sleeper Griffin Valuation Advisory in 2016 professionals Griffin Valuation Advisory and input from internal engineers. Replacement cost per kilometre of System infrastructure has been revalued on 30 June 2017 by independent valuation professionals GHD Pty Ltd. overhead traction wiring Internal asset management experts Construction in progress, plant and equipment and intangibles are valued at cost. Consumed economic based on the recurrent Current benefit/obsolescence of asset maintenance and asset The PTA entered into a Rail Lease with Karara Rail Pty Ltd and Gindalbie Metals Limited on 10 August 2012. The Bus 446,850 438,051 Replacement management plans agreement grants a lease of the rail corridor from Tilley to Karara. The rail line was constructed by Karara Mining infrastructure Cost Replacement cost per square metre floor Valuation reports supplied by Limited for its exclusive use over the period of the lease term of 49 years. While legal ownership is vested in PTA, area (m2) independent valuation experts beneficial ownership is with Karara Mining Limited, therefore the assets are not included in the freight network Replacement cost per individual items Rider Levett Bucknall in 2018 infrastructure balance, however the asset will be transferred to PTA upon the expiry of the lease. Internal asset management experts Consumed economic based on the recurrent Land, buildings and infrastructure (Level 3 fair values) benefit/obsolescence of asset maintenance and asset Current management plans Valuation using current replacement cost utilises the significant Level 3 input, which is estimated by the Vessels 970 995 Replacement Cost Internal asset management experts professional valuation services and consumed economic benefit/obsolescence of asset, which is estimated by based on the cost of the contract Replacement cost per vessel the internal asset management experts based on the recurrent maintenance and replacement plans. In the price of the new vessel in 2019, absence of market-based evidence, due to the specialised nature of some non-financial assets, these assets are adjusted for obsolescence valued at Level 3 of the fair value hierarchy.

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10. Other disclosures The classification and measurement requirements of AASB 9 did not have a significant impact to the PTA. The following are the changes in the classification of the PTA’s financial assets: This section includes additional material disclosures required by accounting standards or other  Trade receivables and Loans and advances (i.e. Other debtors) classified as Loans and receivables as at pronouncements, for the understanding of this financial report. 30 June 2018 are held to collect contractual cash flows and give rise to cash flows representing solely Note payments of principal and interest. These are classified and measured as Financial assets at amortised Events occurring after the end of the reporting period 10.1 cost beginning 1 July 2018. Initial application of Australian Accounting Standards 10.2  The PTA did not designate any financial assets as at fair value through P/L. Future impact of Australian Accounting Standards not yet operative 10.3 Key management personnel 10.4 In summary, upon the adoption of AASB 9, the PTA had the following required (or elected) Related party transactions 10.5 reclassifications as at 1 July 2018.

Special purpose accounts 10.6 AASB 9 category Remuneration of auditors 10.7

Non-current assets classified as assets held for sale 10.8 Amortised Fair value Fair value Equity 10.9 cost through OCI through P/L Supplementary financial information 10.10 $000 $000 $000 $000 Explanatory statement (Controlled Operations) 10.11 AASB 139 category Loans and receivables 10.1 Events occurring after the end of the reporting period Trade receivables 6,439 6,388 0 0 The PTA has not identified any material events after the end of the reporting period that would require 6,388 0 0 adjustment or disclosure to be made. (b) Impairment 10.2 Initial application of Australian Accounting Standards The adoption of AASB 9 has fundamentally changed the PTA’s accounting for impairment losses for AASB 9 Financial instruments financial assets by replacing AASB 139’s incurred loss approach with a forward-looking expected credit loss (ECL) approach. AASB 9 requires the PTA to recognise an allowance for ECLs for all financial assets AASB 9 Financial instruments replaces AASB 139 Financial instruments: Recognition and Measurements for not held at fair value through P/L. annual reporting periods beginning on or after 1 January 2018, bringing together all three aspects of the accounting for financial instruments: classification and measurement; impairment; and hedge accounting. Upon adoption of AASB 9, the PTA recognised an additional impairment on the PTA’s Trade receivables of $50,606 which resulted in a decrease in Accumulated deficit of $50,606 as at 1 July 2018. The PTA applied AASB 9 prospectively, with an initial application date of 1 July 2018. The adoption of AASB 9 has resulted in changes in accounting policies and adjustments to the amounts recognised in the Set out below is the reconciliation of the ending impairment allowances in accordance with AASB 139 to financial statements. In accordance with AASB 9.7.2.15, the PTA has not restated the comparative the opening loss allowances determined in accordance with AASB 9:

information which continues to be reported under AASB 139. Differences arising from adoption have been Impairment under ECL under recognised directly in Accumulated surplus/(deficit). AASB 139 as at AASB 9 as at The effect of adopting AASB 9 as at 1 July 2018 was, as follows: 30 June 2018 Remeasurement 1 July 2018 $000 $000 $000 1 July 2018 Loans and receivables under AASB 139/ Adjustments $000 Financial assets at amortised cost under AASB 9 103 51 154 Assets 103 51 154 Trade receivables (a), (b) (51) Total Assets (51) Total adjustments on Equity Accumulated surplus/(deficit) (a), (b) (51) (51) The nature of these adjustments are described below: (a) Classification and measurement Under AASB 9, financial assets are subsequently measured at amortised cost, fair value through other comprehensive income (fair value through OCI) or fair value through profit or loss (fair value through P/L). The classification is based on two criteria: the PTA’s business model for managing the assets; and whether the assets’ contractual cash flows represent ‘solely payments of principal and interest’ on the principal amount outstanding. The assessment of the PTA’s business model was made as of the date of initial application, 1 July 2018. The assessment of whether contractual cash flows on financial assets are solely comprised of principal and interest was made based on the facts and circumstances as at the initial recognition of the assets.

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10.3 Future impact of Australian Accounting Standards not yet operative Operative for reporting periods PTA cannot early adopt an Australian Accounting Standard unless specifically permitted by TI 1101 beginning on/after Application of Australian Accounting Standards and Other Pronouncements or by an exemption from TI 1101. Where applicable, PTA plans to apply the following Australian Accounting Standards from their AASB 1058 Income of Not-for-Profit Entities 1 Jan 2019 application date. This Standard clarifies and simplifies the income recognition requirements that apply to not-for-profit (NFP) entities, more closely Operative for reflecting the economic reality of NFP entity transactions that are not reporting periods contracts with customers. Timing of income recognition is dependent on beginning on/after whether such a transaction gives rise to a liability or other performance AASB 15 Revenue from Contracts with Customers 1 Jan 2019 obligation (a promise to transfer a good or service), or a contribution by This Standard establishes the principles that the PTA shall apply to owners, related to an asset (such as cash or another asset) received by report useful information to users of financial statements about the an agency. nature, amount, timing and uncertainty of revenue and cash flows arising [The PTA anticipates that the application will not materially impact from a contract with a customer. The mandatory application date of this appropriations or untied grant revenues]. Standard is currently 1 January 2019 after being amended by AASB 2016-7. AASB 1059 Service Concession Arrangements: Grantors 1 Jan 2020 [The PTA’s income is primarily derived from appropriations which will be This Standard addresses the accounting for a service concession measured under AASB 1058 and thus will not be materially affected by this arrangement (a type of public private partnership) by a grantor that is a change. However, the PTA has reviewed the potential impact of the Standard public sector agency by prescribing the accounting for the arrangement on ‘User charges and fees’ and ‘Sales’ revenue. In broad terms, it is anticipated from the grantor’s perspective. Timing and measurement for the that the terms and conditions attached to these revenues will not change the recognition of a specific asset class occurs on commencement of the revenue recognition treatment currently recognised until the PTA has arrangement and the accounting for associated liabilities is determined discharged its performance obligations.] by whether the grantee is paid by the grantor or users of the public service provided. The PTA will adopt the modified retrospective approach on transition to AASB 15. No comparative information will be restated under this [The PTA has identified service concession arrangements within scope of the approach, and the PTA will recognise the cumulative effect of initially Standard and is currently undertaking an exercise to determine its impact]. applying the Standard as an adjustment to the opening balance of The mandatory effective date of this Standard is currently 1 January 2020 accumulated surplus/(deficit) at the date of initial application. after being amended by AASB 2018-5. AASB 16 Leases 1 Jan 2019 AASB 2016-8 Amendments to Australian Accounting Standards – Australian Implementation Guidance 1 Jan 2019 This Standard introduces a single lessee accounting model and requires a for Not-for-Profit Entities lessee to recognise assets and liabilities for all leases with a term of more This Standard inserts Australian requirements and authoritative than 12 months, unless the underlying asset is of low value. implementation guidance for not-for-profit entities into AASB 9 and The recognition of additional assets and liabilities, mainly from operating AASB 15. This guidance assists not-for-profit entities in applying those leases, will increase the PTA’s total assets by $32.3 million and total Standards to particular transactions and other events. There is no liabilities by $31.3 million. This will have an equity impact of $1.0 million financial impact. on 1 July 2019. In addition, interest and depreciation expenses will AASB 2018-4 Amendments to Australian Accounting Standards – Australian Implementation Guidance 1 Jan 2019 increase, offset by a decrease in rental expense for the year ending for Not-for-Profit Public Sector Licensors 30 June 2020 and beyond. This Standard amends AASB 15 to add requirements and authoritative The above assessment is based on the following accounting policy implementation guidance for application by not-for-profit public sector positions: licensors to transactions involving the issue of licences. There is no  Option 2 of the modified retrospective approach on transition; financial impact as the PTA does not issue licences.  The ‘low value asset’ threshold set at AUD $5,000 (unless GROH, GOA AASB 2018-5 Amendments to Australian Accounting Standards – Deferral of AASB 1059 1 Jan 2019 or State Fleet); This Standard amends the mandatory effective date of AASB 1059 so  For leases classified as ‘short term’ (12 months or less), these are not that AASB 1059 is required to be applied for annual reporting periods recognised under AASB 16 (unless GROH, GOA or State Fleet); beginning on or after 1 January 2020 instead of 1 January 2019. There is  Land, buildings and investment property ROU assets are measured no financial impact. under the fair value model, subsequent to initial recognition; and AASB 2018-7 Amendments to Australian Accounting Standards – Definition of Material 1 Jan 2020  Discount rates are sourced from WA Treasury Corporation (WATC). This Standard clarifies the definition of material and its application by The PTA will adopt the modified retrospective approach on transition to improving the wording and aligning the definition across AASB Standards AASB 16. No comparative information will be restated under this and other publications. There is no financial impact. approach, and the PTA 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.

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Operative for 10.5 Related party transactions reporting periods beginning on/after The PTA is a wholly owned public sector entity that is controlled by the State of Western Australia. AASB 2018-8 Amendments to Australian Accounting Standards – Right-of-Use Assets of Not-for-Profit 1 Jan 2019 Related parties of the PTA include: Entities  all cabinet ministers and their close family members, and their controlled or jointly controlled entities; This Standard provides a temporary option for not-for-profit entities to  all senior officers and their close family members, and their controlled or jointly controlled entities; not apply the fair value initial measurement requirements for right-of-use assets arising under leases with significantly below-market terms and  other departments and statutory authorities, including related bodies, that are included in the whole conditions principally to enable the entity to further its objectives. of government consolidated financial statements (i.e. wholly-owned public sector entities); The PTA will elect to apply the option to measure right-of-use assets  associates and joint ventures of a wholly-owned public sector entity; and under peppercorn leases at cost (which is generally about $1). As a  the Government Employees Superannuation Board (GESB). result, the financial impact of this Standard is not material. Significant transactions with Government-related entities 10.4 Key management personnel In conducting its activities, the PTA is required to transact with the State and entities related to the State. These transactions are generally based on the standard terms and conditions that apply to all agencies. The PTA has determined key management personnel to include cabinet ministers and senior officers of Such transactions include: the PTA. The PTA does not incur expenditures to compensate Ministers and those disclosures may be found in the Annual Report on State Finances.  income from State Government (Note 4.1); The total fees, salaries, superannuation, non-monetary benefits and other benefits for senior officers of  capital appropriations (Note 10.9); the PTA for the reporting period are presented within the following bands:  income from Royalties for Regions Fund (Note 4.1);

2019 2018  superannuation payments to GESB (Note 3.1(a)); Compensation band ($)  lease rental payments for fleet leasing to the Department of Finance (Note 3.3); 0 – 10,000 1 1  insurance payments to the Insurance Commission and Riskcover fund (Note 3.4); The accountable authority of the PTA is the Director General – Transport who oversees the agencies Main  equity injections from Royalties for Regions Funds (Note 10.9) and remuneration for services provided Roads WA, the Department of Transport and the PTA from 3 May 2010. The Director General’s by the Auditor General (Note 10.7); compensation is paid by the Department of Transport. The day-to-day operations of the PTA are overseen by the Managing Director whose compensation is reported under the compensation of senior officers.  equity injections from Department of Transport (Note 10.9) and income for the Perth Central Area Transit (Note 4.2); Compensation of senior officers  transfer of assets to and from Main Roads WA (Note 10.9); 2019 2018 Compensation band ($)  payment to Main Roads WA for infrastructure projects (Note 3.3 and 5.1); 50,001 – 60,000 0 1  payments to the Department of Attorney General for the acquisition of land (Note 5.1); 70,001 – 80,000 0 1  income from the Department of Education (DoE) for transport assistance programs (Note 4.2); 90,001 – 100,000 1 0 150,001 – 160,000 0 2  payment to Synergy for the supply of electricity mainly for railcars; 190,001 – 200,000 0 1  the drawdown and repayment of loans with the Western Australian Treasury Corporation for the 200,001 – 210,000 0 2 purposes of funding the Asset Investment Program (Note 8.1); and 220,001 – 230,000 0 3 230,001 – 240,000 2 0  payment to the Department of Finance (Office of State Revenue) for payroll tax (Note 3.4). 240,001 – 250,000 3 1 Material transactions with related parties 250,001 – 260,000 2 1 260,001 – 270,000 1 1 No material transactions with related parties have occurred during the financial year. 270,001 – 280,000 1 0 280,001 – 290,000 1 0 340,001 – 350,000 0 1 350,001 – 360,000 1 0 12 14

2019 2018 $000 $000 Short-term employee benefits 2,897 2,736 Post-employment benefits 0 0 Other long-term benefits 97 109 Termination benefits 0 0 Total compensation of senior officers 2,994 2,845 Total compensation includes the superannuation expense incurred by the PTA in respect of senior officers.

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10.6 Special purpose accounts 10.9 Equity METRONET Account Contributed equity 2019 2018 Established under section 16(1)(d) of the FMA. The purpose of the account is to provide a source of $000 $000 funding for the delivery of METRONET transport infrastructure projects including all associated costs (such as planning and development activities and administering METRONET). Balance at start of period 4,659,975 4,423,149

2019 2018 Contributions by owners $000 $000 Capital appropriations 446,256 159,825 Balance at start of period 9,964 0 Perth Stadium account 0 98,175 Receipts – Contribution from State Government 28,426 30,200 Other contributions by owners Receipts – Contribution from Commonwealth Government 276,838 0 Royalties for Regions Fund – Regional Infrastructure and Headworks Proceeds from Land Sales 5,315 0 Account 500 276 Interest received 1,184 0 Department of Transport 0 7,270 Payments (46,173) (20,236) Transfer of net assets from other agencies Balance at end of period 275,554 9,964 Main Roads WA 31,620 17,326 10.7 Remuneration of auditors Total contributions by owners 478,376 282,872 Remuneration paid or payable to the Auditor General in respect of the audit for the current financial year Distributions to owners is as follows: Transfer of net assets to other agencies 2019 2018 Main Roads WA (91,054) (24,006) $000 $000 VenuesWest 0 (22,040) Auditing the accounts, financial statements and Total distributions to owners (91,054) (46,046) key performance indicators 186 183 Balance at end of period 5,047,297 4,659,975 10.8 Non-current assets classified as assets held for sale Reserves 2019 2018 Asset revaluation surplus and Hedge Reserve $000 $000 Balance at start of period 3,291,674 3,195,587 Opening balance 2,860 0 Net revaluation increments/(decrements): Assets reclassified as held for sale 0 2,860 Freight network infrastructure 1,118,401 0 Total assets classified as held for sale 2,860 2,860 Buildings 0 19,578 Less assets sold 0 0 Land (1,174) (20,766) Closing balance 2,860 2,860 Bus infrastructure 1,394 96,427 Vessels 68 0 The PTA has no interests in other entities that are classified as held for sale, held for distribution to owners 1,118,689 95,239 in their capacity as owners or discontinued operations in accordance with AASB 5. Hedge Reserve The PTA held land surplus to its operational requirements in 2019. The land will be sold during the 2020 Currency forward contracts 341 848 calendar year. 341 848 Balance at end of period 4,410,704 3,291,674

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10.10 Supplementary financial information 10.11.1 Statement of comprehensive income variances

a) Write-offs Variance Variance between between actual During the financial year 2018-19, $25,177 (2017-18: $51,437) was written off the PTA’s asset register Estimate Actual Actual estimate results for 2019 under the authority of: Variance 2019 2019 2018 and actual and 2018 2019 2018 Note $000 $000 $000 $000 $000 $000 $000 Expenses Public Property Employee benefits expense 197,759 195,266 178,260 (2,493) 17,006 The accountable authority 25 51 Supplies and services 208,390 229,466 241,138 21,076 (11,672) Depreciation and amortisation expense 382,745 369,050 372,719 (13,695) (3,669) During the financial year 2018-19, $99,204 (2017-18: $126,912) of bad debts were written off under the Finance costs 99,699 89,037 86,640 (10,662) 2,397 authority of: Grants and subsidies 554,384 538,764 539,452 (15,620) (688) 2019 2018 Energy and fuel 30,479 34,129 31,653 3,650 2,476 $000 $000 Other expenses 17,732 21,235 18,344 3,503 2,891 Revenue Loss on disposal of non-current assets 0 0 1,710 0 (1,710) The accountable authority 99 9 Total cost of services 1,491,188 1,476,947 1,469,916 (14,241) 7,031 The Minister 0 118 Income 99 127 Revenue User charges and fees 213,902 229,630 220,862 15,728 8,768 b) Losses through theft, defaults and other causes Operating lease revenue 5,466 5,466 5,466 0 0 2019 2018 Commonwealth grants and contributions 14 1,000 2,998 986 (1,998) $000 $000 Interest revenue 750 3,372 3,255 2,622 117 Loss of public moneys and public and other property Gain on disposal of non-current assets 0 180 0 180 180 through theft or default 0 0 Other revenue 57,960 45,557 59,972 (12,403) (14,415) c) Gifts of public property Total revenue 278,092 285,205 292,553 7,113 (7,348) 2019 2018 Total income other than income from $000 $000 State Government 278,092 285,205 292,553 7,113 (7,348) Gifts of public property provided by the PTA 0 0 NET COST OF SERVICES 1,213,096 1,191,742 1,177,363 (21,354) 14,379 10.11 Explanatory statement (Controlled Operations) Income from State Government Operating subsidy contributions 834,815 830,061 812,502 (4,754) 17,559 All variances between estimates (original budget) and actual results for 2019, and between the actual Services received free of charge 0 843 728 843 115 results for 2019 and 2018 are shown below. Narratives are provided for key variations selected from Royalties for Regions Fund 13 9 10 (4) (1) observed major variances, which are generally greater than: Total income from State Government 834,828 830,913 813,240 (3,915) 17,673  5% and $25 million for the Statements of comprehensive income and cash flows; and, DEFICIT FOR THE PERIOD (378,268) (360,829) (364,123) 17,439 3,294  5% and $25 million for the Statement of financial position. Other comprehensive income Changes in asset revaluation surplus 1, A 0 1,118,689 95,239 1,118,689 1,023,450 Changes in hedge reserve 0 341 848 341 (507) Total other comprehensive income 0 1,119,030 96,087 1,119,030 1,022,943

TOTAL COMPREHENSIVE INCOME/(LOSS) FOR THE PERIOD (378,268) 758,201 (268,036) 1,136,469 1,026,237 Refer to note ‘Schedule of income and expenses by services’. Major estimate and actual (2019) variance narratives 1. Changes in assets revaluation surplus higher than estimated by $1,118.7 million mainly due to the outcome of the revaluation process scheduled in the financial year for the asset cost profiles freight network infrastructure (refer to Note 5.1 and Note 9.3) and land. Major actual (2019) and comparative (2018) variance narratives A. Changes in asset revaluation surplus higher than previous year by $1,023.4 million (1075%) mainly due to the outcome of the revaluation process scheduled in the financial year for the asset cost profile freight network infrastructure (refer to Note 5.1 and Note 9.3).

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10.11.2 Statement of financial position variances Major estimate and actual (2019) variance narratives

Variance 2. Cash and cash equivalents higher than estimated by $105.5 million (171%) mainly due to cash drawdown to fund Variance between the PTA’s asset investment program, where works were deferred on several projects. between actual results Estimate Actual Actual estimate for 2019 3. Restricted cash and cash equivalents lower than estimated by $263.9 million (-49%) mainly due to the Variance 2019 2019 2018 and actual and 2018 METRONET Special Purpose Account movement resulting from the deferral of METRONET projects under Note $000 $000 $000 $000 $000 development. ASSETS 4. Current assets – amounts receivable for services, which reflects the holding account drawdown for asset Current Assets replacement in the next financial year, was higher by $79 million (104%) due to transfer from the same account Cash and cash equivalents 2, B 61,805 167,263 205,088 105,458 (37,825) in non-current assets for the investment in radio systems and the bus replacement projects (refer to 5). Restricted cash and cash equivalents 3, C 542,728 278,848 15,056 (263,880) 263,792 5. Non-current assets – amounts receivable for services, which reflects the holding account drawdown for asset Inventories 15,467 18,242 16,456 2,775 1,786 replacement in the future, was lower by $25.7 million (-5%) due to transfer to the same account in current assets Receivables 31,814 23,641 29,013 (8,173) (5,372) (refer to 4). Other current assets 16,699 13,892 11,852 (2,807) 2,040 6. Infrastructure, property, plant, equipment and vehicles was higher than estimated by $293.3 million (3%) mainly Amounts receivable for services 4, D 75,917 154,933 122,641 79,016 32,292 due to the outcome of the revaluation process scheduled in the financial year, for the following asset cost profiles Non-current assets classified as held for freight network infrastructure (refer to Note 5.1 and Note 9.3) and land and deferral of several projects in PTA’s sale 0 2,860 2,860 2,860 0 asset investment program. Derivative financial instruments 0 28 4 28 24 7. Borrowings were lower than estimated by $436.4 million (-17%) mainly due to deferral of works on several Total Current Assets 744,430 659,707 402,970 (84,723) 256,737 projects in PTA’s asset investment program (refer to 6). Non-Current Assets 8. Contributed equity lower than estimated by $643.5 million (-11%) mainly due to the deferral of Commonwealth/ Restricted cash and cash equivalents 3,823 2,743 3,462 (1,080) (719) State funding for the provision of METRONET projects under development. Amounts receivable for services 5, E 544,029 518,369 619,946 (25,660) (101,577) 9. Reserves higher than estimated by $1,213.9 million (38%) mainly due to revaluation in the current year of freight Infrastructure, property, plant, equipment network infrastructure (refer to Note 5.1 and Note 9.3) and higher than expected revaluation in the prior year for and vehicles 6, F 8,562,222 8,855,512 7,743,299 293,290 1,112,213 bus infrastructure and buildings assets after 2019 estimates were submitted. Intangible assets 5,198 12,882 13,036 7,684 (154) Total Non-Current Assets 9,115,272 9,389,506 8,379,743 274,234 1,009,763 10. Accumulated deficit lower than estimated by $29.6 million (-1%) mainly due to lower depreciation resulting from deferral of several projects in PTA’s asset investment program. TOTAL ASSETS 9,859,702 10,049,213 8,782,713 189,511 1,266,500 Major actual (2019) and comparative (2018) variance narratives LIABILITIES Current Liabilities B. Cash and cash equivalents decrease by $37.8 million (-18%) mainly due to lower cash drawdown to fund the Payables 109,730 129,395 114,435 19,665 14,960 deferral of PTA’s asset investment program. Borrowings G 160,688 165,772 137,798 5,084 27,974 C. Restricted cash and cash equivalents increased by $263.8 million (1752%) mainly due to METRONET Special Employee related provisions 33,809 37,344 35,293 3,535 2,051 Purpose Account established to provide a source of funding for the delivery of METRONET transport Other provisions 4,741 1,949 1,956 (2,792) (7) infrastructure projects including all associated costs (such as planning and development activities and Other current liabilities 0 30 40 30 (10) administering METRONET). Deferred income operating lease 5,466 5,466 5,466 0 0 Derivate financial instruments 737 0 341 (737) (341) D. Current assets – amounts receivable for services, which reflects the holding account drawdown for asset Total Current Liabilities 315,171 339,956 295,329 24,785 44,627 replacement in the next financial year, was higher by $32.3 million (26%) due to transfer from the same account in non-current assets for the investment in radio systems and the bus replacement projects (refer to E). Non-Current Liabilities Borrowings 7, H 2,643,379 2,206,946 2,125,713 (436,433) 81,233 E. Non-current assets – amounts receivable for services, which reflects the holding account drawdown for asset Employee related provisions 8,029 8,887 7,896 858 991 replacement in the future, was lower by $101.6 million (-16%) due to transfer to the same account in current assets Other provisions 6,347 6,640 7,101 293 (461) for the investment in radio systems and bus replacement projects (refer to D). Deferred income operating lease 165,528 165,528 170,994 0 (5,466) F. Infrastructure, property, plant, equipment and vehicles increased by $1,112.2 million (14%) mainly due to Total Non-Current Liabilities 2,823,283 2,388,001 2,311,704 (435,282) 76,297 revaluation in the current year of freight network infrastructure (refer to Note 5.1 and Note 9.3). TOTAL LIABILITIES 3,138,454 2,727,957 2,607,033 (410,497) 120,924 G. Current liabilities – borrowings, which reflects the borrowings repayable in the next financial year, increased by NET ASSETS 6,721,248 7,321,256 6,175,680 600,008 1,145,576 $28 million (20%) due to transfer from the same account in non-current liabilities (refer to H). EQUITY H. Non-current liabilities – borrowings, which reflects the borrowings repayable in the future, increased by Contributed equity 8, I 5,690,834 5,047,297 4,659,975 (643,537) 387,322 $81.2 million (4%) due to new borrowings to fund the PTA’s Asset Investment Program (refer to F) offset by the Reserves 9, J 3,196,776 4,410,704 3,291,674 1,213,928 1,119,030 transfer to the same account in current liabilities (refer to G). Accumulated deficit 10, K (2,166,362) (2,136,745) (1,775,969) 29,617 (360,776) I. Contributed equity increased by $387.3 million (8%) mainly due to funding from State and Commonwealth TOTAL EQUITY 6,721,248 7,321,256 6,175,680 600,008 1,145,576 Government for the METRONET and other transport projects, debt repayment and asset transfer from/to Main Roads WA. The Statement of financial position should be read in conjunction with the accompanying notes. J. Reserves increased by $1,119 million (34%) mainly due to increment in revaluation of freight network infrastructure (refer to Note 5.1 and Note 9.3) and bus infrastructure and a decrement in revaluation of land. K. Accumulated deficit increased by $360.8 million (20%) mainly due to unfunded depreciation.

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10.11.3 Statement of cash flows variances Major estimate and actual (2019) variance narratives

Variance 11. Capital appropriations lower than estimated by $565 million (-1266%) mainly due to deferral of works on Variance between the METRONET program. between actual results Estimate Actual Actual estimate for 2019 12. Holding account drawdowns lower than estimated by $53.4 million (-44%) mainly due to deferral of works Variance 2019 2019 2018 and actual and 2018 on PTA’s asset investment program funded by holding account. Note $000 $000 $000 $000 $000 CASH FLOWS FROM 13. Supplies and services higher than estimated by $25.5 million (10.7%) mainly due to carry over of Nicholson STATE GOVERNMENT Road project costs, external works costs and higher maintenance costs. Operating subsidy contributions 834,815 830,061 812,502 (4,754) 17,559 14. GST payment on purchases lower than estimated by $61.4 million (-34%) mainly due to deferral of Capital appropriation – other government METRONET and Forrestfield Airport-Link (FAL) projects (refer to 15). agencies 0 0 7,270 0 (7,270) Capital appropriations 11, L 1,011,255 446,256 159,825 (564,999) 286,431 15. GST receipts from taxation authority lower than estimated by $61 million (-34%) mainly due to deferral of Perth Stadium account M 739 0 98,175 (739) (98,175) METRONET and FAL projects (refer to 14). Royalties for Regions Fund 5,637 509 287 (5,128) 222 16. Purchase of non-current assets lower than estimated by $743.7 million (-64%) mainly due to deferral of Holding account drawdowns 12 122,641 69,285 58,285 (53,356) 11,000 works on the METRONET and FAL projects. Net cash provided by State Government 1,975,087 1,346,111 1,136,344 (628,976) 209,767 17. Repayment of borrowings higher than estimated by $113 million (36%) mainly due to higher repayment of CASH FLOWS FROM the short term working capital facility (refer to 18). OPERATING ACTIVITIES Payments 18. Proceeds from borrowings lower than estimated by $318.3 million (-37%) mainly due to deferral of works on Employee benefits (197,759) (195,207) (177,788) 2,552 (17,419) the FAL project offset by borrowings from the short term working capital facility. Supplies and services 13 (238,869) (264,413) (281,631) (25,544) 17,218 Finance costs (99,699) (88,626) (87,766) 11,073 (860) Major actual (2019) and comparative (2018) variance narratives Grants and subsidies (554,384) (534,984) (525,334) 19,400 (9,650) L. Capital appropriations increased by $286.4 million (179.2%) mainly due to Commonwealth and State Receipts paid into consolidated account (3,940) (3,777) (3,762) 163 (15) government funding for METRONET projects. GST payments on purchases 14 (179,801) (118,411) (132,904) 61,390 14,493 Other payments (12,803) (13,702) (13,261) (899) (441) M. Perth Stadium account decreased by $98 million mainly due to commissioning of the Perth Stadium transport Receipts project. User charges and fees 213,902 230,744 223,874 16,842 6,870 Commonwealth grants and contributions 14 1,000 2,998 986 (1,998) N. Purchase of non-current assets decreased by $141.2 million (-25%) mainly due to lower capital works as per Interest received 750 2,863 4,497 2,113 (1,634) PTA’s asset investment program. GST receipts on sales 24,129 27,630 27,448 3,501 182 O. Repayment of borrowings increased by $269.1 million (168%) mainly due to repayment of the short term GST receipts from taxation authority 15 155,672 94,634 111,743 (61,038) (17,109) working capital facility and rollovers of Term Floating Rate borrowings from WATC. Other receipts 57,960 48,815 56,987 (9,145) (8,172) Net cash used in operating activities (834,828) (813,434) (794,899) 21,394 (18,535) P. Proceeds from borrowings increased by $255 million (90%) mainly due to the PTA’s asset investment CASH FLOWS FROM program funded by borrowings and rollovers of Term Floating Rate borrowings from WATC. INVESTING ACTIVITIES Payments Purchase of non-current assets 16, N (1,160,312) (416,636) (557,879) 743,676 141,243 Receipts Proceeds from sale of non-current assets 0 0 0 0 0 Net cash used in investing activities (1,160,312) (416,636) (557,879) 743,676 141,243 CASH FLOWS FROM FINANCING ACTIVITIES Payments Repayment of borrowings 17, O (316,524) (429,569) (160,490) (113,045) (269,079) Other repayments 0 0 (1,800) 0 1,800 Receipts Proceeds from borrowings 18, P 857,080 538,776 283,761 (318,304) 255,015 Net cash provided by financing activities 540,556 109,207 121,471 (431,349) (12,264) Net increase/(decrease) in cash and cash equivalents 520,503 225,248 (94,963) (295,255) 320,211 Cash and cash equivalents at the beginning of the period 87,853 223,606 318,569 135,753 (94,963) CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD (including current and non-current restricted cash and cash equivalents) 608,356 448,854 223,606 (159,502) 225,248 The Statement of cash flows should be read in conjunction with the accompanying notes.

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Fare-paying boardings, plus free travel on passes, free travel on CAT services in Glossary of terms Initial boardings Perth, Fremantle and Joondalup and free travel on services within the Perth FTZ. IPLS Infrastructure Planning and Land Services (PTA division) ACR Annual corridor report KPI Key performance indicator Acceptable service level (an hourly service during the day with at least three KRA Key Result Area ASL trips, i.e. at 20-minute intervals, in the peak flow direction in the morning and afternoon peaks). LDC Language Development Centre CaLD Culturally and linguistically diverse LDS Language Development School CAT Central area transit LTI Lost time injury Category A Incident causing serious injury, death, or significant damage. MRWA Main Roads WA Category B Incident that may have the potential to cause a serious accident. N&I Network and Infrastructure (PTA division) CCTV Closed-circuit television OLE Overhead line equipment A high-frequency bus service connecting major shopping centres, ORS Office of Rail Safety Circle Route universities, schools and colleges. OSH Occupational safety and health CLA Corridor lease agreement OTR On-time running CMR Central monitoring room OTTER On-Time Tracking and Electronic Reporting system CNG Compressed natural gas Passenger place kilometres The average seat capacity multiplied by the kilometres travelled while in service. CRM Composite rate model PDP Project definition plan DAIP Disability Access and Inclusion Plan POD People and Organisational Development (PTA division) DER Department of Environmental Regulation PPTA Perth Public Transport Area DoE Department of Education PSA Property Street Addresses DoT Department of Transport PSM Passenger Satisfaction Monitor DPI Department of Planning and Infrastructure PTA Public Transport Authority of Western Australia DSMS Dynamic Stand Management System PTC Public Transport Centre ECM Evergreen contract model RAP Reconciliation Action Plan EDRMS Electronic document records management system RTBS Regional Town Bus Services (PTA branch) EMS Environmental Management Systems RUS Route Utilisation Strategy ES Education Support SBS School Bus Services (PTA branch) ESC Education Support Centre Service kilometres The kilometres travelled while in service. FAL Forrestfield-Airport Link SFBMS Safety, Freight and Business Management Systems (PTA division) Covers only those people, standard fare or concession, who pay (either by Fare-paying boardings SSMG Strategic Safeworking Management Group tagging on or by the purchase of a cash ticket) as they enter the system. STAPF Student Transport Assistance Policy Framework FTZ Free Transit Zone Fare-paying boardings, plus free travel on passes, free travel on CAT services GPS Global Positioning System Total boardings in Perth, Fremantle and Joondalup and free travel on services within the Perth HSE Health, safety and environment FTZ, plus transfers between services. IEC Intensive English Centre TTO Transperth Train Operations (PTA division) WAGRC Western Australian Government Railways Commission (PTA predecessor)

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