Racing and Wagering Western Australia Annual Report 2019 1 ANNUAL REPORT ANNUAL 2019 Annual Report 2019Annual Report Racing and Wagering Western Australia
Statement of Compliance
For the year ended 31 July 2019
The Hon Paul Papalia CSC, MLA
Minister for Tourism; Racing and Gaming; Small Business; Defence Issues; Citizenship and Multicultural Interests.
In accordance with Section 61 of the Financial Management Act 2006, we hereby submit for your information and presentation to Parliament, the Annual Report of Racing and Wagering Western Australia for the financial year ended 31 July 2019.
The annual report has been prepared in accordance with the provisions of the Financial Management Act 2006 and the Racing and Wagering Western Australia Act 2003.
4 Image: Life’s Better with Horses Launch 5 Annual Report 2019Annual Report Racing and Wagering Western Australia Chapter 1: Overview
Contents
Chapter 1: Overview About us 1 2019 Key Performance Highlights 3
Chair and CEO Report 6 Operational Structure 11 Racing and Wagering Western Australia Board 13 Board Committees 14
Chapter 2: Report on Operations Wagering 18 Racing 22 Welfare 30 Racing Integrity 36 Corporate Social Responsibility 42 People and Culture 44
Chapter 3: Disclosures and Legal Compliance Opinion of the Auditor General 47 Certification of Financial Statements 51 Financial Statements Statement of Comprehensive Income 52 Statement of Financial Position 53 Statement of Changes in Equity 54 Statement of Cash Flows 55 Notes to and Forming Part of the Financial Statements 56 Certification of Key Performance Indicators 96 Performance Management Framework 97 Key Performance Indicators 98 Other Financial Disclosures 102 Governance Disclosures 106 Other Legal Requirements 108 Government Policy Requirements 109
Image: WA Fashions on the Field Campaign 6 7 Annual Report 2019Annual Report Racing and Wagering Western Australia About us
Racing and Wagering Western Australia (RWWA) was established on 1 August 2003. RWWA’s Charter under the Racing and Wagering Western Australia Act 2003 is to foster development, promote the welfare and ensure the FOCUS AREAS integrity of metropolitan and country thoroughbred, harness and greyhound racing in the interests of the long- GOALS term viability of the racing industry in Western Australia. RWWA also has responsibility for the off-course wagering functions trading as the TAB. 1 Overview Overview Business Our Brands • Maximising wagering revenue RWWA maintains a strong emphasis on the following • Grow returns to Western Australian strategic focus areas in the context of achievement of racing the organisation’s stated purpose, vision and values: • Increase the relevance of racing in Customer Experience Western Australia • Uphold the highest standard of Create and lead the best customer experience for 2 Operations on Report animal welfare wagering and racing customers. • Strengthen the integrity of racing in Employee Experience Western Australia • Enhance employee experience Continue to improve staff engagement and build a high performing workforce. 3 Legal Compliance Disclosures and Ways of Working
Develop new ways of working to be more competitive FOCUS AREASand efficient in the marketplace.
PURPOSE VISION VALUES To provide a sustainable To be a national leader Enthusiasm and Pride future for the Western in racing and wagering Achievement ‘Real’ationships Australian racing industry entertainment Team Play Honesty
Image: Bunbury Turf Club 1 2 Annual Report 2019Annual Report Racing and Wagering Western Australia
2019 Key Performance Highlights
Corporate Social People and Wagering Racing Integrity Welfare Responsibility Culture
1 • 5.45 days Total Lost Overview Business • $2.8B in turnover • $1.3M invested in • 203 greyhounds • $528K funding • $305.6M in WA prohibited substance adopted through provided to not- Time Injury for RWWA TAB revenue down from all national employees (industry wagering operators control GAP for-profits through by 2.5% (52 week Community TAB average is 7.7 days) equivalent) impacted for WA racing by lower average • 9,013 individual • Zero greyhounds • Female senior customer spend and horse and greyhound euthanised as not • $128K in sports • $159.0M in funding leadership local economy. swabs suitable for racing grants awarded to WA racing representation ratio 2 industry through Community Operations on Report TAB and TABtouch 33% (best practice is • WA Market Share • 99.7% of tested • 99.5% of greyhound above 30%) steady at 56% in a • $21.5M increase in swabs were negative starters were not highly competitive racefield revenue affected by major • $50K provided injuries to community • New employee on- wagering • Co-location of organisations boarding net promoter environment. Integrity, Racing • $15.3M in RWWA through the score (NPS) 82% 3 and Licensing and • Off the Track Legal Compliance Disclosures and grants and club Community TAB • +11.2% in mobile Registration individual rider subsidies Sports Grant • 13 employees channel turnover sponsorship introduced completed the • Migration to Single • 853 race meetings • 12 donations Emerging Leaders National System for • +6.9% in active and 7,844 made through Program thoroughbred racing • Racing Assist TABtouch customers individual races RWWA’s Not-For- launched for Profit Recognition industry participants • 100 employees took Program • TABtouch “Better • New Business part in 8 wellness Your Bet” brand Model for harness activities launch racing • 59 employee volunteers at not-for-profit • Wagering and • +10.5% in TABradio organisations Information Services weekly listenership integration (YOY)*
Source: TABradio Listenership Survey 2019 Painted Dog Research
3 4 Image: Western Australian Jockey Shaun McGruddy 2019Annual Report Racing and Wagering Western Australia Chair and CEO Report
Introduction able to negotiate with the State Government for 30 per cent of the new tax to be granted to the Western Australian racing It is our pleasure to present the 2019 Annual Report for Racing industry to assist with its ongoing development. and Wagering Western Australia (RWWA). Following the introduction of POCT, the Western Australian Since its inception in 2003, RWWA has been the principal racing industry now receives the majority of its revenue from 1 Overview Overview Business racing authority for thoroughbred, harness and greyhound three diverse wagering sources, profits from the TAB and racing in Western Australia together with being the operator of revenue in the form of income from the Western Australia the TAB. During this time RWWA has increased annual funding Racing Bets Levy and POCT. to the racing industry from $63.3M to more than $159.0M in 2019.
Continuing the commitment to develop the State’s racing Financial Performance 2 industry, RWWA announced at the end of the 2019 financial Operations on Report year a further $11M in prizemoney, ownership and racing RWWA continues to develop strategies and new ways of marketing initiatives for the upcoming 2020 period. working to be more competitive in the national wagering market, in order to maximise betting revenue and grow The racing industry plays an important economic and social returns to the Western Australian racing industry. role in Western Australia, generating more than $821.1M in 3 economic contribution to the State. With an average of more The 2019 financial year delivered a solid performance with Legal Compliance Disclosures and than two thoroughbred, harness or greyhound meetings held overall revenue from all sources up by $10.7M, resulting in a each day in the State, the industry’s economic activity sustains total of $429.7M comprised of $305.6M from TAB wagering, more than 7,360 full time equivalent roles and attracts more $81.0M from the Western Australian Racing Bets Levy and than 823,000 attendees to race meetings each year. $43.1M from other items.
The sale of the Western Australian TAB was a prominent issue The significant increase in revenue was mainly driven by throughout 2019, culminating with the State Government the growth in income generated by the Western Australian announcing its decision on 9 October 2018 to proceed with Racing Bets Levy, which was up by 39 per cent or $22.6M, the sale. growing from $58.4M to $81.0M in 2019 (see Note 3.1 and 8.9 in Financial Statements: Grants and Subsidies from State Following considerable engagement with RWWA and the Government). wider racing industry, the State Government agreed to key principles for the sale of the TAB, reflecting these in draft The Western Australian Racing Bets Levy is paid by wagering legislation introduced to Parliament in May 2019. operators who conduct betting on Western Australian racing. The levy is revenue paid to RWWA, but is treated as income Subsequent to the end of the financial year, on 4 September from the State Government because RWWA operates as both 2019, the Western Australian Parliament passed the TAB the PRA and is the operator of the TAB. (Disposal) Act 2019 providing for the establishment of a new wagering licensing regime for a private TAB operator and the Income from other items for 2019 also included the newly corresponding disposal of the wagering business operated introduced POCT, which provided an additional $12.6M in by RWWA. In addition, the establishment of Racing Western revenue for the year. Australia, the governing authority for thoroughbred, harness and greyhound racing in the State. RWWA reported a net loss of $3.1M having decided to distribute additional funds toward key racing infrastructure In January 2019, the State Government introduced a new projects throughout the year. The Western Australian TAB tax on wagering profits more generally known as a Point of produced a profit in 2019 of $107.3M excluding support costs. Consumption Tax (POCT). Importantly, the new tax addressed previous anomalies whereby wagering operators were taxed It is also important to note that 2018 incorporated a 53rd Image: Owners Only Ambassador Brittany on the location of their business rather than where the trading week generating further wagering revenue of $4M, Taylor and retired race horse Falak Blues customer resided, facilitating the leakage of wagering tax compared to 2019. from State Governments. Arising from the POCT, RWWA was
5 6 Annual Report 2019Annual Report Racing and Wagering Western Australia Chair and CEO Report Chair and CEO Report
Chart 1: Wagering and Other Revenue Chart 3: Working Capital
Other Revenue Wagering Revenue
$77M $65M $84M $97M $124M $91M $59M 1 Overview Overview Business
$316M $339M $336M $330M $315M $322M $306M*
$32M $46M $54M $48M $50M $42M $47M
2 Operations on Report 2013 2 014 2015 2016 2 017 2018 2019
*Note: 2019 had 52 weeks in comparison to 2018 which had 53 weeks. 2013 2 014 2015 2016 2 017 2018 2019
RWWA provided $159.0M in funding to the racing industry via distributions, grants and subsidies, representing a $1.6M increase from 3 the previous year as shown in Chart 2. Legal Compliance Disclosures and
Wagering Chart 2: Distributions, Grants and Subsidies Consistent communication continued to be provided to the Point of Consumption Tax racing industry to allow participants and stakeholders to stay Distributions Grants Subsidies From 1 January 2019, the Racing and Wagering Western abreast of the progress of the proposed sale, with RWWA Australia Tax Act 2003 and Bookmakers Betting Levy Act 1954 hosting open discussion forums regarding the drafted Bill. were ceased and replaced with a 15 per cent POCT. Following the approval of the legislation, the TAB sale process The POCT is levied on all bets placed in Western Australia, will move into the transaction phase. Since 2003, RWWA irrespective of where the wagering operator is licensed in has operated the Western Australian TAB with the goal of Australia. It is collected by the Commissioner of State Revenue maximising returns to the racing industry, the transaction under the Betting Tax Act 2018 and Betting Tax Assessment phase will aim to continue this commitment by selecting a Act 2018, and 30 per cent of the tax collected is remitted to suitably qualified and capable wagering operator through an RWWA for distribution to the racing industry. open market process.
$116M $131M $142M $148M $150M $157M $159M The Western Australian Racing Bets Levy, which is collected The successful operator will be required to enter into a formal under the Racing Bets Levy Act 2009, was retained. The levy contractual arrangement called a Racing Distribution Deed applies to all wagering operators who use or publish Western (RDD), which the RWWA Board on behalf of the Western Australian race fields and is collected by the Gaming and Australian racing industry must approve. Wagering Commission on behalf of the Western Australian 2013 2 014 2015 2016 2 017 2018 2019 racing industry. Following the execution of the RDD between the operator and RWWA, the Minister of Racing and Gaming is then able Note: Payments to Sports Wagering Accounts are not included in these calculations. Privatisation to issue the wagering license to the operator to commence The privatisation of the Western Australian TAB continued to operations. be a topic of discussion during 2019, with the TAB (Disposal) In terms of infrastructure grants, RWWA chose to distribute funds for relevant racing infrastructure projects and investment priorities Bill 2019 being tabled in Parliament on 15 May 2019. RWWA will continue to consult with the racing industry across all three codes, drawing on surplus funds accrued over past years, resulting in a $3.1M deficit for 2019. RWWA, together with the thoroughbred, harness and throughout the transaction phase via the racing code greyhound racing code committees, provided input into the committees and eligible bodies. After taking into account the various financial outcomes, including the increase in industry funding, working capital increased by drafting of the amending legislation and consulted widely with $4.9M over the prior year as highlighted in Chart 3. key industry stakeholders on proposed legislative changes. RWWA was supportive of the TAB (Disposal) Bill 2019 and associated amending legislation as drafted.
7 8 Annual Report 2019Annual Report Racing and Wagering Western Australia Chair and CEO Report Chair and CEO Report
Western Australian TAB Thoroughbred Greyhound 5. Implement strategies to demonstrate best practice in RWWA’s wagering revenue through the TAB was 2.5 per cent • The Galaxy (Group 1) won by ROCKSTAR PATRIOT; Paul animal welfare, as well as the promotion and delivery of lower than last year on a 52 week equivalent basis or 5 per cent • Railway Stakes (Group One) won by GALAXY STAR; Grant Stuart (trainer); and J Jeffries and G Jovanovic (owners). responsible wagering; and after taking into account the 53rd week last year. This variance and Alana Williams (trainer); William Pike (jockey); and was primarily driven by reduced customer spend per bet and Peters Investments Pty Ltd Syndicate (owners). • Perth Cup (Group 1) won by ORSON ALLEN; Corey 6. Strengthen the integrity and welfare standards across increased customer generosities reflected in wagering revenue. Grenfell (trainer); and B Wheeler (owner). Western Australian racing to ensure public confidence 1 Overview Overview Business Importantly, market share for the TAB in Western Australian has • Winterbottom Stakes (Group One) won by VOODOO and support. been maintained at 56 per cent in a highly competitive wagering LAD; Darren Weir (trainer); Damien Oliver (jockey); and • National Sprint Championship (Group 1) in Victoria was environment. Segenhoe Thoroughbreds Australia P/l Syndicate, N Leckie, also won by Western Australian greyhound WEST ON Our People D Anderson and P Blackburn (owners) AUGIE; Chris Halse (trainer); and C Weston, L Britton, C Mobile channel turnover and active TABtouch customers also Halse and G Weston (owners). In light of challenges and opportunities that the Western continues to grow, with increases of 11.2 per cent and 6.9 per • Kingston Town Classic (Group One) won by ARCADIA Australian racing industry continues to encounter under the cent respectively over the previous year. QUEEN; Grant and Alana Williams (trainer); William Strategic Outlook authority and guidance of RWWA, whether they be foreign 2 Pike (jockey); and Peters Investments Pty Ltd Syndicate RWWA maintains a strong focus on the following strategic or domestic and either within or outside of our control, our Operations on Report Racing (owners). priorities over the medium and long term to achieve the organisation works hard to achieve the best outcome for its organisation’s stated purpose: stakeholders. Supply of racing product to the domestic and international • Perth Cup (Group Two) won by STAR EXHIBIT; Adam wagering markets is a highly competitive environment. RWWA Durrant (trainer); Peter Hall (jockey); and Peters 1. Work with industry to increase the effectiveness and More than 24,400 people participate directly within the is focused on ensuring Western Australian racing is scheduled Investments Pty Ltd Syndicate (owners). utilisation of racing assets; Western Australian racing industry as an employee, participant 3 in optimal timeslots, vision is presented as professionally as or volunteer. Our people are our greatest asset and it is with Legal Compliance Disclosures and possible through SKY Racing and is supported with accurate and • Karrakatta Plate (Group Two) won by DIG DEEP; Daniel and 2. Increase our share of the competitive wagering market their help that we are able to improve the quality of our timely racing information for wagering customers. Ben Pearce (trainer); Jarrad Noske (jockey); and C Pearce, through enhanced product and services; racing product and promote the sport on a national and N Ryde, P Whittleton, T Forrest, M Di Lena, D Greaves, R international stage. While RWWA has an overarching strategic plan for racing in the Peterson, K Hughes, L Hughes, M Bai, P Sullivan, M Desa, A 3. Strengthen government relations and demonstrate State, it is recognised that the three individual racing codes are Ladner, M McGee, M McGee, D D J R (D Miller), Wild Scene the economic and social benefits of a positive and We would like to take this opportunity to thank our racing unique and therefore a dedicated plan is maintained for each (J Riseborough), Pearce Racing (D Pearce) and The Kings sustainable racing industry; participants, staff, TAB agents, Government and importantly code. Men (T Leighton) (owners). our customers for their ongoing commitment in providing a 4. Improve the quality of racing product, oncourse sustainable future for the Western Australian racing industry, During 2019, RWWA provided a $1.8M increase in distribution • WATC Derby (Group Two) won by REGAL POWER; Grant attendance and relevance of Western Australian racing as we endeavour to be a national leader in racing and funding to drive the delivery of the three strategic code plans, and Alana Williams (trainer); William Pike (jockey); and through increasing stakes distribution and industry wagering entertainment. with key initiatives including thoroughbred stakes increases and Peters Investments Pty Ltd Syndicate (owners). marketing and planning; the implementation of the New Business Model for harness. Harness In addition, $1.3M was also allocated to promoting racing • Fremantle Pacing Cup (Group One) won by MY FIELD through various marketing initiatives, predominantly in the MARSHAL (NZ); Tim Butt (trainer); Anthony Butt (driver); thoroughbred code to drive ownership and participation. and SA Brown, SB Brown (owners).
A further $4.3M in grants was allocated to complete the Pinjarra • WA Pacing Cup (Group One) won by ROCKNROLL Harness Stalls project, purchase and install a new big screen at LINCOLN (NZ); Justin Prentice (trainer); Gary Hall Jnr Ascot Racecourse and various other racing projects. (driver); and JK Prentice, JA Lohman, R Fitzgerald, BL Jones, W Gardiner and GA Mortimer (owners). The RWWA racing committees played an important role in determining the areas of funding priority for the three racing • WA Derby (Group One) won by MAJOR TROJAN (NZ); Gary codes for the year. Hall Snr (trainer); Gary Hall Jnr (driver); and BV Richardson, Go Racing, SD MacGregor, R Patriarca, GL Moore and KA An important part of summarising racing’s key achievements for Hall (owners). 2019 is to also recognise the winners of the major Group races throughout the season, who were as follows: • WA Oaks (Group One) won by HAS NO FEAR; Justin Prentice (trainer); Jocelyn Young (driver); and Pacing WA (owner). Jeff Ovens, Chair Richard Burt, Chief Executive Officer
9 10 Annual Report 2019Annual Report Racing and Wagering Western Australia Operational Structure Operational Structure
Enabling Legislation • Betting Tax Act 2018 The organisational structure of RWWA is based on a corporate model comprising a number of divisions that • Betting Tax Assessment Act 2018 oversee the varying activities of the organisation. RWWA commenced operations on 1 August 2003 upon • Taxation Administration Act 2003 promulgation of the Racing and Wagering Western Australia Act 2003. The Act established RWWA as the controlling authority Other legislation with which RWWA must comply includes the General Manager Racing for thoroughbred, harness and greyhound racing in Western following: 1 Charlotte Mills Overview Business Australia, together with the responsibility for off-course TAB • Anti-Money Laundering and Counter Terrorism Financing wagering. Implementation of RWWA’s responsibilities occurred Act 2006 (Commonwealth) in two stages. General Manager Wagering General Manager • Broadcasting and Recorded Entertainment Award 2010 Racing Integrity Michael Saunders Denis Borovica Effective 1 August 2003, RWWA assumed the principal club/ • Copyright Act 1968 (Commonwealth) controlling authority responsibilities of the Western Australian • Corruption, Crime and Misconduct Act 2003 Turf Club, Western Australian Trotting Association and Western • Criminal Code Act 1913 (WA) and Criminal Code Act 1995 2 Australian Greyhound Racing Authority. On 30 January 2004, (Commonwealth) Chief Executive Officer Operations on Report the Totalisator Agency Board Betting Act 1960 was repealed and • Electoral Act 1907 RWWA assumed responsibility for the conduct of off-course TAB Richard Burt • Equal Opportunity Act 1984 wagering. • Financial Management Act 2006 The Racing and Wagering Western Australia Regulations 2003 • Freedom of Information Act 1992 Chief Financial Officer Chief Information Officer 3 were enacted to establish key employee licensing procedures Legal Compliance Disclosures and • Gaming and Betting (Contract Securities) Act 1985 Ian Edwards relating to RWWA’s wagering activities, and to include those Sam McCready • Interactive Gambling Act 2001 provisions of the Totalisator Agency Board (Betting) Regulations 1988 needed to control RWWA’s wagering activities. To • Liquor Control Act 1988 General Manager complement the formation of RWWA, the Betting Control Board, • Long Service Leave Act 1958 People and Culture established under the Betting Control Act 1954, was abolished • Occupational Safety and Health Act 1984 Matthew Thomas and its functions transferred to the Gaming Commission of • Patents Act 1990 Western Australia, which was re-titled the Gaming and Wagering Commission of Western Australia. • Public Interest Disclosure Act 2003 • Spam Act 2003 Hence, the Gaming and Wagering Commission, under the • State Government Agencies Administration Award 2010 Gaming and Wagering Commission Act 1987, now regulates • State Superannuation Act 2000 RWWA’s gambling activities. As part of the legislative package to establish RWWA, the Totalisator Agency Board Betting Tax Act • Statutory Corporations (Liabilities of Directors) Act 1996 1960 was repealed and replaced by the Racing and Wagering • Superannuation Guarantee (Administration) Act 1992 Western Australia Tax Act 2003. The Racing Restriction Act 2003 • Trade Marks Act 1995 replaced the Racing Restriction Act 1917. • Trade Practice Act 1974 • Unclaimed Money Act 1990 Under the Racing Restriction Act 2003, no thoroughbred, harness or greyhound race for prize (exceeding $50 in value) or • Workers Compensation and Injury Management betting may be held without a licence from RWWA. Amendment (Jockeys) Act 2012 • Fair Work Act 2009
Legislation The above list is not exhaustive, however represents the legislation that impacts on the general operation of RWWA. The principal legislation governing RWWA is: • Racing and Wagering Western Australia Act 2003 Responsible Minister • Racing Restriction Act 2003 The Hon Paul Papalia CSC MLA (Minister for Tourism; Racing • Racing Bets Levy Act 2009 and Gaming; Small Business; Defence Issues; Citizenship and • Gaming and Wagering Commission Act 1987 Multicultural Interests) was appointed the responsible Minister on 17 March 2017. • Betting Control Act 1954 Image: Driver Chris Lewis and 2019 TABtouch Pearl Classic Final (Group 1) Winner Manning
11 12 Racing and Wagering Board Committees 2019Annual Report Racing and Wagering Western Australia Western Australia Board
Integrity Assurance Committee Remuneration and Nomination Committee The Integrity Assurance Committee (IAC) has primary oversight of those aspects of RWWA’s functions that The Remuneration and Nomination Committee (RNC) relate to stewards, drug testing and control, licensing and oversees and reports on the remuneration for the Chief registration, handicapping, racing appeals and the Rules of Executive Officer, bonuses for staff and executives, 1 Overview Overview Business Racing. allowances for committee members, and the nomination process for the recruitment, appointment and development Committee members: of the Board and committees, in accordance with its • Dr Lianne Cretney-Barnes (Chair) Charter. • Mr Stephen Langsford • Mrs Kirrilee Warr Committee members: • Mr Anthony Hasluck (ex-officio) • Mr Jeff Ovens (Chair) 2 • Dr Lianne Cretney-Barnes Operations on Report • Mr Robert Bransby Audit and Risk Committee The Audit and Risk Committee (ARC) plays an important Animal Welfare Committee role in providing oversight of RWWA’s values and ethics, governance, risk management and internal control The Animal Welfare Committee (AWC) is responsible for 3 Standing (L-R): Mr Bob Fowler, Mr Robert Bransby, Mr Stephen Langsford, Mr Anthony Hasluck and Mrs Kirrilee Warr. practices. The ARC has oversight of the internal audit the oversight of RWWA’s animal welfare strategies and Legal Compliance Disclosures and Seated (L-R): Dr Lianne Cretney-Barnes, Mr Jeff Ovens and Mr Gary Gliddon function and also reviews and approves RWWA’s annual outcomes. The AWC regularly reviews and revises all matters report. pertaining to the proper control of the welfare of all racing Mr Jeff Ovens Dr Lianne Cretney-Barnes First appointed 21 November 2011 First appointed 1 February 2011 animals within the Western Australian racing industry. The Appointed as Chair 1 February 2012 Dr Lianne Cretney-Barnes is a business leader with the Committee members: AWC also provides a communications conduit between the Mr Jeff Ovens is the Chair of the RWWA Board. Jeff has helped highest-level of business qualifications. Lianne has a Doctor of industry and the general public with respect to responding • Mr Anthony Hasluck (Chair) implement significant change programs aimed at improving Business Administration and is a Fellow of the Australian Institute to public opinion and to promote the proper regulation of company performance in ASX listed and private companies, the • Mr Jeff Ovens of Company Directors, the Australian Institute of Management racing animal welfare within Western Australia. The AWC is a tertiary education sector, health and the sports industry. and the Australian Marketing Institute. Lianne also currently • Mr Gary Gliddon sub-Committee of the RWWA Board, currently in place with holds a number of board positions and is the founder of Board delegated power, and subject to reporting requirements. Mr Robert Bransby Connexions. First appointed 1 August 2018 Racing Committees Committee members: Mr Robert Bransby is the nominated code director for Mr Stephen Langsford In 2017, the RWWA Board established board sub- thoroughbred on the RWWA Board. Robert has more than 35 First appointed 1 February 2018 • Chief Executive Officer (Chair) committees for each of the three racing codes. During 2019, years’ experience in business, financial services and the health Mr Stephen Langsford is a corporate adviser, company director • General Manager Racing sector, and currently holds a number of director and chair the Committees’ principle focus was directed towards the and entrepreneur. Stephen has founded and operated a • General Manager Racing Integrity positions. number of companies in the consumer digital and information proposed sale of the Western Australian TAB. • Racing Industry Veterinarian technology sectors. • Manager Animal Welfare Mr Bob Fowler Committee members: First appointed 1 August 2016 Mr Anthony Hasluck • Mr Robert Bransby (Thoroughbred Chair) Mr Bob Fowler is the nominated code director for harness on the First appointed 1 February 2014 • Mr Bob Fowler (Harness Chair) RWWA Board. Bob is the managing director of Fowler Group of Mr Anthony Hasluck is one of Western Australia’s leading • Mr Gary Gliddon (Greyhound Chair) Companies and is also the founder of Allwood Stud Farm. Bob is communications consultants. Anthony is the managing director a former president of the Western Australian Trotting Association of Clarity Communications, the largest independent agency in the State, assisting corporations with public relations, branding, and the WA Standardbred Breeders Association design and digital communications.
Mr Gary Gliddon First appointed 21 November 2011 Mrs Kirrilee Warr First appointed 1 February 2014 Mr Gary Gliddon is the nominated code director for greyhound Mrs Kirrilee Warr is the regional representative on the RWWA Board. on the RWWA Board. Gary is currently the managing director Kirrilee is a director of a broad acre agricultural enterprise, a board of Braxford Consultancy, a firm specialising in corporate member of the CBH Grower Advisory Council and deputy president governance, probity and audit related services. of the Shire of Chapman Valley. Kirrilee was also previously a board member of the Midwest Development Commission.
13 14 Racing and Wagering Western Australia Annual Report 2019 16
Image: Geraldton Turf Club Club Turf Geraldton Image:
Report on Operations 2: Chapter 15 Annual Report 2019Annual Report Racing and Wagering Western Australia Wagering
The Wagering division is responsible for the functions of During FY2019, RWWA transitioned to a product the Western Australian TAB including sales, marketing and management approach to implement new ways of working operations. that were more competitive in the national wagering market. This saw the RWWA Wagering division move Selling channels include an exclusive retail network of more from a traditional project governance model to a product than 330 TAB agencies, hotels and clubs, as well as the management model, as well as co-location of the wagering 1 Overview Overview Business TABtouch account channels, which include mobile, desktop and information services teams into a Bettering Department. and call centre. The change allows RWWA to maximise the impact of people The TAB offers totalisator and fixed odds betting on racing, in critical roles within the division and in turn find out sport and entertainment events. It is also the commercial what the customer truly wants and deliver it as quickly as agent for SKY Racing, which broadcasts thoroughbred, possible, enhancing the customer experience. harness and greyhound racing into TAB agencies. 2 The focus was on customer acquisition, on-boarding Operations on Report and betting functionality and overall experience to make RWWA’s offer more competitive in the market.
3 Legal Compliance Disclosures and TABtouch ‘Better Your SuperPick Win Bet’ brand Boost or Money launched Back Users +4%
Leading brand sentiment indicators TABtouch customer Net Promoter Easy to bet with Trustworthy Score at highest level FY2019 The racing experts 96% on-boarding Established 89% established Key Highlights 78% multi account holders
Increased TAB agent Customer engagement in Generosities +86% TABtouch to compete in a mobile value driven market accounts
17 18 Annual Report 2019Annual Report Racing and Wagering Western Australia Wagering Wagering
Better Your Bet TABtouch Digital • National Consumer Protection Framework (NCPF): customer care activities relating to the NCPF were Prior to the spring racing carnival, TABtouch relaunched its The further adoption of a product management approach The number of customers wagering using mobile devices progressed in line with national compliance deadlines. brand with a promise to ‘better your bet’ by highlighting its not only aligns with the Bettering Department brand, but also grew by 11 per cent in FY2019 which was driven by funding of the Western Australian racing industry and a promise provides a lightweight framework that delivers continuous improvements in customer experience and delivery of TAB Retail to improve the customer experience. customer value. The result is empowered product squads value, including: 1 Overview Overview Business across acquisition, betting, racing and sport, which drive A key part of RWWA’s strategic plan for FY2019 was targeted The pre-work for the Bettering Department was completed, initiatives that are important for customers and RWWA alike. • Betslip: the mobile app betting process was enhanced investment in its’ exclusive retail wagering license and including co-location of the Wagering and Information Services with immediate results seen in singles and multi increasing the retail TAB agents engagement in the growing teams in a refurbished open-plan office, as part of the broader betting behaviour. digital environment. change program to support RWWA’s shift to a scaled agile delivery model. • Vision and replays: the full suite of racing digital At the end of FY2019, racewall technology was in place in streaming rights were implemented to give customers the majority of hotels and 29 full-time TABs. The racewall’s 2 access to all live races and race replays. paperless systems deliver TAB agents a more labour Operations on Report efficient race day, while customers can access the next six • AFL and NRL Form: the form was introduced at bet races to jump with a direct tote to fixed odds comparison, page level to provide a one stop shop for sports expert ratings and traditional racing information. betting. To reduce the barriers to the promotion of the digital 3 • Improved customer navigation: this was the result of channels by TAB agents, a TAB Agent Commission was Legal Compliance Disclosures and sports market groupings being introduced to support introduced relating to new TABtouch accounts and located the large range of betting options per event. mobile transactions.
Image: Bettering Department
19 20 Annual Report 2019Annual Report Racing and Wagering Western Australia Racing
RWWA’s Charter under the Racing and Wagering Western Australia Act 2003 is to foster development, promote the welfare and ensure the integrity of metropolitan and country thoroughbred, harness and greyhound racing in the interests of the long-term viability of the racing industry in Western Australia.
Industry Funding 1 Overview Overview Business The Western Australian racing industry is funded from the profits of the Western Australian TAB, income generated from the Western Australia Race Bets Levy paid by wagering operators, together with part proceeds of the Betting Tax Act 2018.
In FY2019, $159.0M in funding was provided to the State’s racing industry from the three revenue streams.
2 Operations on Report REVENUE STREAMS
WESTERN AUSTRALIAN TAB RACING BETS LEVY POINT OF The TAB offers totalisator and fixed The Racing Bets Levy is paid by all CONSUMPTION TAX odds betting on racing and sporting wagering operators who conduct Thirty per cent of the betting 3 events. It is also the commercial selling betting on Western Australian tax collected by the State Legal Compliance Disclosures and agent for SKY Racing, which broadcasts thoroughbred, harness and greyhound Government is remitted to thoroughbred, harness and greyhound racing. Funds received are remitted to RWWA for distribution to the racing into TAB agencies. the racing industry. racing industry commenced January 2019.
INDUSTRY FUNDING - $159.0M RWWA RACING SERVICES - $26.2M
RACING DISTRIBUTION RWWA GRANTS & CLUB RACING AND INTEGRITY $143.7M SUBSIDIES SERVICES This includes funding for prize $15.3M $26.2M money, owner and breeder This includes funding to assist This includes funding into RWWA’s bonuses, participant payments, clubs with infrastructure grants and racing and integrity services to ensure club event fees and training subsidies outside of the Racecourse the proper conduct and integrity of services, as well as club, welfare Infrastructure Grants Program (RIGP) racing activities across the State. and marketing initiatives. and Royalties for Regions (RFR) funding.
21 22 Annual Report 2019Annual Report Racing and Wagering Western Australia Racing Racing
Racing Division Thoroughbred Ways of Working The following transformational project was delivered during The Racing division is responsible for the strategic direction of the thoroughbred, harness and greyhound racing industries in Strategic Priorities FY2019: Western Australia, together with the operations functions to support the running of race meetings. RWWA’s strategic priorities for the thoroughbred code are: • RWWA migrated from its legacy KLAN thoroughbred racing • Reinvigorate Western Australia as an system to the Single National System (SNS) administered RWWA, as the Principal Racing Authority for the three racing codes in Western Australia, operates under the Racing and Wagering attractive jurisdiction to own and race by Racing Australia. As part of this transition, nomination, 1 Overview Overview Business Western Australian Act 2003 and also applies the National Rules of Racing for each code. thoroughbred racehorses. acceptance, gear change and stable returns functions are • Improve the commercial competitiveness being managed centrally by Racing Australia on behalf of Key Racing Statistics of Western Australian thoroughbred racing RWWA. The SNS delivers a suite of new online functionality and grow revenue streams. to trainers, which was previously not available through Race Clubs Meetings Races Starters Individual Animals Raced • Maintain our ‘right to exist’ by proactively KLAN. meeting community expectations in animal Thoroughbred 37* 283 2,140 20,522 3,197 welfare and integrity. RWWA-Funded Grants 2 • Facilitate viable race clubs with sound Key projects completed in FY2019 included: Operations on Report Harness 12* 256 2,207 21,107 1,585 funding models, suitable facilities, • Albany Racing Club - equipment shed sound business models and appropriate • Bunbury Turf Club – new running rail Greyhound 1 314 3,497 25,824 1,391 governance structures. training track • Revitalise the relevance of Western • Collie Race Club - judges tower TOTAL 50 853 7,844 67,453 6,173 Australian thoroughbred racing through • Dongara-Irwin Race Club - shade sails 3 marketing, branding and content. • Esperance Bay Turf Club - hydraulic post Legal Compliance Disclosures and *Note: dual code race club Narrogin Race and Pace, are included in the above figures. rail driver Distribution • Marble Bar Race Club – electrical upgrade The following outcomes were delivered during FY2019: • Moora Race Club - swab box Funding by Code • $98.5M in club and participant funding and subsidies, • Narrogin Race and Pace* - equipment shed including: • Northam Race Club – track drainage Other RWWA- Breeding Club Prizemoney Participant Club Subsidies Funded Total - $14.3M in club funding for 37* thoroughbred clubs • Perth Racing - Ascot Super Screen; four Bonuses Funding Payments Grants (including tenanted arrangements for Coolgardie Race new vision and steward towers Club at Kalgoorlie) • Pingrup Race Club - parade ring Thoroughbred $62.7M $7.7M $5.8M $14.3M $8.0M $2.9M $101.4M - Full Year impact of stakes increases implemented on 1 • Yalgoo Jockey Club – judges tower stairs February 2018 • York Racing - relocation of reticulation filter Harness $24.8M $1.7M $1.7M $5.7M $2.2M $1.2M $37.3M - Implementation of Westspeed Platinum for 4YO horses • $1.2M toward new ownership, marketing and branding RIGP and RfR Grants Greyhound $11.3M $0.9M $1.3M $5.8M $0.8M $0.2M $20.3M initiatives, including: Major projects completed from Royalties for Regions (RfR) and - Launch of The Races WA brand to revitalise the the Racecourse Infrastructure Grants (RIGP) funding in FY19 TOTAL $98.8M $10.3M $8.8M $25.8M $11.0M $4.3M $159.0M relevance of thoroughbred racing incorporating the included: Life’s Better with Horses campaign • Albany Racing Club - equipment shed - Second Own the Dream Event Series incorporating • Narrogin Race and Pace* - equipment shed the Win a Share in a Racehorse competition with • Northam Race Club - semaphore board 750 participants taking part in the series (40 per cent • Moora Race Club - swab box increase from FY2018) • Dongara-Irwin Race Club - shade sails - New brand ambassador for the Own the Dream Event Series, West Coast Eagles player Brad Sheppard - The running of WA Fashions on the Field, a state-wide *Note: dual code race club Narrogin Race and Pace is included. racing fashion competition - Launch of the inaugural Ladies of Racing awards in conjunction with the WA Fashions on the Field Ladies Luncheon
Image: Ascot Racecourse
23 24 Disclosures and Racing and Wagering Western Australia Business Report on
1 2 3 Legal Compliance Annual Report 2019 Overview Operations 26 A total of 292 Western Australian trained mares earned Australian trained mares 292 Western A total of 575 winning of as a result in EPONA credits $247,800 earned the maximum credit each races. Four mares was paid in $143,000 and a total of $5,000, amount of 63 mares. of subsidies to the owners a sale Sales recorded The Australian Pacing Gold Yearling ($1.3M in FY2018) and an average $1.6M of aggregate the for colts $21,000; and of $15,000 fillies sale price for last year. $11,000 up from median sale price was $15,000, Albany Harness Race Club – swab box fence car park Bridgetown Harness Racing Club - float Club - electrical upgrade to judges Busselton Trotting tower wall Gloucester Park Harness Racing Club - race Race and Pace* - equipment shed Narrogin and Northam Harness Racing Club - track refurbishment warning light system and parks Pinjarra Harness Racing Club – new stalls, car machinery shed equipment and facility Club – track Trotting Wagin upgrade Pinjarra Harness Racing Club - stalls Race and Pace* - equipment shed Narrogin Northam Harness Racing Club - warning light system fence car park Bridgetown Harness Racing Club - float Image: Pinjarra Harness Racing Club *Note: dual code race club Narrogin Race and Pace is included. Narrogin dual code race club *Note: Other Harness Activities FY2019: for highlights breeding WA • • Grants RWWA-Funded completed in FY2019 included: projects Key • • • • • • • • RIGP and RfR Grants RfR and the RIGP funding in completed from Major projects FY19 included: • • • • $5.7M in club funding for 12 harness clubs and six in club funding for $5.7M Dunbarton, harness training only venues (Byford, and York) Golden Mile, Wanneroo Jandakot, with the in stakes An additional $960,000 the New Business Model of implementation bonuses paid in Westbred $1.7M Four C grade harness drivers (trials only) commenced during the season. to B grade drivers licences during drivers progressed Two the period. clubs provided Assistant Program The Harness Curator Regular visits were with advice on track preparation. to assist them in the program made to clubs participating with maintaining their tracks. Managers Track the inaugural WA On 18 May 2019, Complex, with Trotting Byford Day was held at Training harness clubs in Western from attending representatives topics of a variety Australia. The training day covered new and relevant providing and included guest speakers and maintenance. on track preparation information $36.1M in club and participant funding and subsidies, $36.1M including: and reward Owners Only events to recognise Hosting of owners. standardbred current implemented the New Business Model to improve RWWA a more harness racing and provide of the commerciality the code. The model has a number for sustainable future components including race circuits, integrated of race programming, tiering, meeting schedules, stakes race handicapping and internal business systems and practices. Improve the commercial competitiveness of Western Western competitiveness of the commercial Improve Australian harness racing. meeting exist’ by proactively Maintain our ‘right to and integrity. in animal welfare community expectations Australian harness Western of the relevance Increase racing. - - - Industry Training FY2019: Industry training highlights for • • • • The following outcomes were delivered during FY2019: delivered were outcomes The following • • Working of Ways • Harness Priorities Strategic harness are: priorities for strategic RWWA’s • • • Distribution Racing Image: Albany Racing Club The Magic Millions Yearling Sales recorded a sale aggregate a sale aggregate Sales recorded The Magic Millions Yearling price of sale in FY2018) and an average ($11.7M $9.1M of 74.3 of with a clearance rate in FY2018), ($45,800 $43,900 per cent. a $1M Masters series featuring Ascot hosted the TABtouch consecutive Saturdays. One race on three Group and Pinjarra Race Club hosted Club Bunbury Turf fixtures. Saturday class successful standalone metropolitan training day covered a variety of topics and included guest a variety of training day covered on track information new and relevant providing speakers and maintenance. preparation Apprentice Metropolitan Leading Kirby, Brodie Apprentice Provincial Jade McNaught, Leading Kristy Bennett, Leading Country Apprentice Other Thoroughbred Activities during FY2019 racing activities Other major thoroughbred included: • • • Leading Apprentices for the season were: the season for Leading Apprentices • • •
Four apprentice jockeys commencing race riding and four four commencing race riding and jockeys Four apprentice completing their apprenticeship. four with during the year, Seven new trainees commencing now riding in trials. Club continuing Mauritius Turf with the The relationship month a three for to deepen with Brandon Louis returning apprentices visit to gain race riding experience, and two a 12 month visit to gain trial riding experience arriving for to race riding. and progress Jockey Apprentice again supporting the National RWWA which was Ascot in March, held at Challenge, with a heat Western Queensland. won by Baylee Nothdurft from were competing interstate Australian representatives in Queensland, Emma Stent in Tasmania, Shelby Colgate Witten in Jade McNaught in South Australia and Kate Victoria. provided Assistance Program Curator The Thoroughbred visits were Regular clubs with advice on track preparation. to assist them in the program made to clubs participating with maintaining their tracks. Day was Managers Training Track the WA On 9 July 2019, Complex with representatives Lark Hill Training held at Australia. The in Western most turf tracks from attending 25
Industry Training FY2019: for Industry training highlights • • • • • • Racing Racing Racing 2019Annual Report Racing and Wagering Western Australia
Greyhounds • Digital marketing promotions and outdoor media Other Racing Highlights campaign for Perth Cup and Galaxy feature race Strategic Priorities meetings. On 28 March 2019, 12 new inductees were welcomed into the Western Australian Racing Industry Hall of Fame. RWWA’s strategic priorities for greyhounds are: The event, which is held every two years, welcomed more than 400 guests to honour some of the industry’s most • Improve the commercial competitiveness of Western Ways of Working accomplished. Inductees included: Australian greyhound racing and grow revenue streams. The following project was initiated during FY2019: 1 Overview Overview Business • Maintain our ‘right to exist’ by meeting community • RWWA has maximised the OzChase support system for expectations in animal welfare and integrity and by greyhounds and delivery of self service functions for Thoroughbred: Harness: Greyhound: repositioning the brand of greyhound racing at a participants. community level. Easingwold (Horse) Gary Hall Jnr (Trainer/Driver) Blue Echo (Greyhound) • Modernise the promotion of Western Australian Other Greyhound Activities F ‘Ted’ McAuliffe (Trainer) Jack Morris (Horse) David Hamer (Trainer) greyhound racing to meet the needs of customers, Other major greyhound racing activities for FY2019: Old Comrade (Horse) John Hunt (Associate) industry participants and the general public. • The Group 1 Galaxy, was won by the Western Australian R G ‘Bobby’ Morley (Jockey) Mick Lombardo (Associate) 2 • Facilitate optimal infrastructure requirements to trained and owned greyhound. ROCKSTAR PATRIOT. Robert Peters (Associate) Norms Daughter (Horse) Operations on Report adequately provide for the Western Australian greyhound Trainer: Paul Stuart, Owner: James Jeffries & Gemma racing industry. Jovanovic. • The Group 1 pinnacle was also achieved by the Western Distribution Australian trained, owned and bred greyhound WEST The following outcomes were delivered during FY2019: ON AUGIE, who won the Group 1 National Sprint 3 • $20.1M in club and participant funding and subsidies, Championship in Victoria. Trainer: Chris Halse, Owner: Legal Compliance Disclosures and including: Craig Weston, Linda Britton, Chris Halse & Gary Weston, - $5.8M in club funding for one greyhound club Breeder: Michelle Romer, Grant Adamson & Simon Allen. (Western Australian Greyhound Racing Association (WAGRA)) racing at three venues (Cannington, RWWA-Funded Grants Mandurah and Northam) Key projects completed in FY2019 included: - $548,000 increase in Trainers Subsidies • Western Australian Greyhound Racing Association - - $1.1M increase in event fees, training and participant Mandurah vision upgrade; vision cabling and equipment funding upgrade; greyhound track injury vehicle; sectional timing - $909,000 paid out in Westchase bonuses
Image: Greyhounds WA Cannington Image: Western Australian Racing Industry Hall of Fame
27 28 Disclosures and Racing and Wagering Western Australia Business Report on
1 2 3 Legal Compliance Annual Report 2019 Overview Operations 30 In November 2018, RWWA implemented a New Business implemented a New RWWA In November 2018, greater providing racing aimed at Model within harness This model is intended all horses. racing opportunities for the a horse and reduce of to extend the racing career the industry prematurely. horses exiting number of in they are horses only race where that ensure To veterinary to do so, the pre-race a suitable state policy in harness racing was extended to examination any for include a compulsory veterinary examination day or has raced on the previous horse that standardbred starts. than 200 lifetime has had more whip rule was introduced a revised On 1 September 2018, whip penalties for in harness racing as well as increased rule breaches. The listing of retired racehorses horses for sale on behalf racehorses horses for retired The listing of Classifieds. owners and trainers on Cavalletti of retired of the assessment and re-training Facilitating HorsePower for thoroughbreds and standardbreds Australia. local horse events and shows throughout Sponsoring of Australia. Western individual riders competing on retired Sponsoring of or the State either a high level, representing racehorses at Australia. Consistent with achieving these aims, the following strategies strategies these aims, the following Consistent with achieving implemented in FY2019: were • • • Off the Track Off the Track (OTT) plays an integral part in program the Off RWWA’s in their second and standardbreds thoroughbreds promoting horses. and performance as pleasure careers and for, the demand activities increase The program’s in second racehorses retired supports the placement of and re-trainers event sponsorship, promoting through careers retired clinics for services, and holding education rehoming racehorses. OTT for during FY2019 included: areas focus Strategic • • • • Full lifecycle tracking lifecycle Full Maximising race potential Minimising racing injuries Ensuring best practice in animal welfare Education race horses retired demand for Increasing requirements Retirement Welfare Animal Welfare racing animals in all to ensuring that is committed RWWA and care appropriate afforded racing are codes of three racing careers. their during and after before, attention a and build the leader in animal welfare aims to be RWWA racing the health and wellbeing of in which racing culture owners. RWWA’s animals is paramount to all participants and is achieved racing animals of commitment to the welfare monitoring and investment, education, of a program through regulation. all decisions, of the forefront at remains welfare that ensure To comprising the Committee (AWC) Welfare Animal RWWA’s General Manager Racing, General Officer, Chief Executive and Racing Industry Veterinarian Manager Racing Integrity, to discuss strategic meets regularly Manager, Animal Welfare animal welfare. regarding matters objectives and operational sought consultation RWWA In evolving these strategies, best understand and address to with industry stakeholders These and equine welfare. to greyhound issues relating key and the racing industry will serve to guide RWWA strategies setting clear priorities and objectives regarding into the future, our racing animals. of the welfare Equine Welfare and care appropriate the importance of recognises RWWA their entire racing animals throughout for consideration and is committed to executing including retirement, lifecycle, thoroughbred the transition of facilitating aimed at strategies outside of horses to secondary careers and standardbred racing. and in equine welfare the importance of In recognising and the thoroughbred standards complementing national the toward works plans, RWWA and harness racing strategic commitments: welfare following • • • • • • • Image: Greyhounds as Pets Image: Greyhounds 29 Disclosures and Racing and Wagering Western Australia Business Report on
1 2 3 Legal Compliance Annual Report 2019 Overview Operations 32
Grade 3 muscle injury Bone fractures Joint/ligament sprain Skin laceration Grade 2 muscle injury Grade 1 muscle injury Minor skin laceration Mild skin abrasions/grazes Mild skin abrasions/grazes Typical Injury Types Typical or spinal trauma skull Severe Complex/open/joint fractures Greyhound Race Injury ReportGreyhound on using the information has been prepared This report euthanasia and related fatality racing injury, greyhound race at by on-track veterinarians and stewards recorded Australia. meetings held in Western Injury Severity Classification post- with an on-track post-race or All greyhounds been injury have qualifying trial veterinary-reported very mild As the injuries range from included in this report. catastrophic period to no incapacitation and requiring rating the following or euthanasia, injuries leading to death severity. injury guide has been used to categorise identifies post racing a greyhound of The examination general any injuries, including minor injuries such as potentially impacted its racing that muscle soreness injuries has of the reporting therefore and performance, period of function. The both an integrity and welfare to enable the is (stand-down) prescribed incapacitation resuming to full race fitness prior to to return greyhound to time required competitive racing, above and beyond the the examination Accordingly, injury. the reported overcome is based on a high level and and subsequent reporting any injury related veterinary assessment of conservative level the required ability to compete at to the greyhound’s a more for racing beyond the primary requirements of assessment. welfare standard Greater than 21 days Greater 11- 21 days 1- 10 days 0 days Incapacitation Period Deceased or euthanased immediately Major Medium Minor Class II Minor Class I Rating Catastrophic Welfare Tracking all tracking of to full lifecycle is committed RWWA and into their racing career throughout greyhounds stringent through tracking data by capturing and retirement and the continued structures and regulatory controls the submission of compliance of industry auditing of forms. retirement mandatory Consultation Welfare Australian Greyhound the Western In 2017, was established by the Minister (GWWG) Group Working to enhance was formed The group Racing and Gaming. for and partnership between the racing communication welfare industry bodies, the racing authority and the which bring a wealth all of advocacy and adoption groups, greyhounds of and treatment knowledge on the welfare of continued to RWWA During FY2019, the State. across significant which achieved in the working group participate Key standards. welfare to greyhound improvements for Practice of the Code of achievements included a review which was published Racing Greyhounds of the Keeping workshop carer a foster the development of in April 2019, Rebate Injury the Track and the expansion of program, the regarding Scheme. Following substantial discussions specific of and the progress the GWWG achievements of the group that it was agreed moving forward, projects would be disbanded. Greyhound Injury Rating Guide Indicating ExpectedGreyhound Periods and Examples Stand-Down of Related Injury Types Increasing Demand maintaining aimed at is committed to strategies RWWA as pets. In adopting greyhounds community demand for investment in its increased working to achieve this goal, RWWA GAP program. Re-homing and behaviourally is committed to ensuring all healthy RWWA as a pet post able to transition to life are sound greyhounds implemented a rule with best practice, RWWA racing. In keeping to be sterilised all greyhounds change in January 2018 requiring is being accepted into unless the greyhound prior to re-homing their as part of sterilisation undertakes an adoption agency that in rebate a sterilisation introduced RWWA program. re-homing tandem with this rule to assist industry participants to comply requirements. welfare with increased Minimising Track Injuries Minimising Track greyhounds, euthanasia of to ensuring that is committed RWWA is reasons, medical or behavioural for not indicated where prevented. Injury Rebate a Track introduced RWWA In December 2017, who sustain a greyhounds more Scheme designed to offer to recover. serious injury on the race track the opportunity an injury on the track sustains Under the scheme, if a greyhound will RWWA and subsequently meets the eligibility requirements, contribution to help the trainer and owner pay a financial offer surgery. the costs of for the amount scheme was extended to increase the In July 2019, recovery for an additional pathway and provide the rebate of both the towards industry funding allocates in which RWWA post-operative for and the responsibility treatment cost of its through and subsequent re-homing rehabilitation care, as Pets (GAP) program. Greyhounds on assesses and reports investigates, RWWA Additionally, in major injury while result track injuries and incidents that is system and data maintains an injury recording racing. RWWA analysed with a view to are and trends continually monitored possible. where safety improving of in the implementation continues to be proactive RWWA best practice in track regarding recommendations national options for design and maintenance, and is investigating Australian track design. Western in on safety research
31 The rearing and pre-education stages of a greyhound’s greyhound’s a stages of and pre-education The rearing a successful racing determining factors for key are lifecycle a balanced dog beyond the development of and for career, Practice for the Keeping of Code RWWA’s racing. As part of Australian Racing Industry, within the Western Greyhounds of program with a structured must be provided young greyhounds an early age. stimuli from to a range of exposure controlled of Socialisation Education racing participants is committed to ensuring greyhound RWWA to of training and education the highest level offered are rearing, to breeding, centric approach maintain a welfare d Code an update released RWWA training and racing. In 2019, within the Racing Greyhounds of Practice for the Keeping of This code is based on Australian Racing Industry. Western recommended industry practice scientific knowledge, current and and describes standards and community expectations within the greyhounds of the welfare safeguard guidelines that Australia. racing industry in Western Strict controls affecting breeding continue to be enforced continue to be enforced breeding affecting controls Strict on restrictions licences, age restrictions, including breeding Review and the Breeding ‘dam’ registrations frequency, breeding Panel. With increased expectations to rehome greyhounds post racing, greyhounds to rehome expectations With increased equilibrium between supply and demand is of a state reaching has implemented this balance, RWWA critical. In recognising dogs in the Western the number of controlling aimed at reforms race fields are while ensuring Australian racing population of greyhounds maximise racing opportunities for maintained. To all abilities, a graded racing system is operated. Controlling Supply RWWA’s Greyhound Welfare Strategy identifies central Strategy Welfare Greyhound RWWA’s to centric approach welfare up an effective make disciplines that racing, including: greyhound When a greyhound retires from the racing industry, at any age, any age, at the racing industry, from retires When a greyhound sound behaviourally every healthy and aims to have RWWA re-homed. greyhound It is RWWA’s vision to be the national leader in welfare practices leader in welfare vision to be the national It is RWWA’s all at is given to greyhounds care the best possible to ensure their lives. stages of Greyhound Welfare Greyhound Welfare Annual Report 2019Annual Report Racing and Wagering Western Australia Welfare Welfare
Between 1 August 2018 and 31 July 2019, 3,505 greyhound These injury incidents affected 736 individual starters. This Greyhound Retirement Data races and 200 qualifying trials were conducted across Western equates to an injury incident being reported on track from 2.8 Australia at racing venues comprising 25,874 race starters and per cent of official starters in races and qualifying trials. Of the For the period 1 August 2018 to 31 July 2019, the following number of greyhounds were reported to RWWA, by the latest 716 qualifying trial starters (26,590 total starters). total reported injury incidents, 52 per cent were of a minor registered owners or persons responsible for the greyhounds at the relevant time, under requirements of the greyhound Rule of nature requiring either no stand down period or a stand down Racing Local Rule 106, as retired from racing or deceased: The below table details the number of injury incidents reported period of less than 11 days. The percentage of starters affected 1 Variance from Overview Business FY2018* FY2019* where a greyhound with at least one injury was identified by an by either a major or catastrophic injury was 0.5 per cent. In FY2018 - FY2019 on-track veterinarian after participation in a race or qualifying FY2019, there has been a 31 percent decrease in greyhounds Adopted through Greyhounds as Pets 270 203 -25% trial in Western Australia during this period. affected by a castrophic injury compared to the previous year. Adopted through other greyhound rehoming organisations 225 190 -16%
Adopted as pet to a third party (non-owner / trainer) 84 39 -54% Number of Race Injury Incidents, Injury Rates and Severity Reported at Western Australian Race Meetings by on Track Veterinarians between 1 August 2018 and 31 July 2019 Adopted as pet to an owner / trainer 30 17 -43% 2 Operations on Report Total numbers of Injury Rate (Injury Injury Rate as % of Total Retired for breeding 37 47 27% Rating Incapacitation Period Injury Incidents Incidents/1000 Starts) Starters Minor Class I 0 days 36 1.4 (1.7) 0.14% (0.17%) Total number of greyhounds retired 646 496 -23%
Minor Class II 1- 10 days 366 13.8 (12.7) 1.38% (1.27%) Deceased or euthanised due to accidental death, natural causes, illness or age 55 62 13% Medium 11- 21 days 221 8.3 (8.1) 0.83% (0.81%) Deceased or euthanised due to racing related injury 74 49 -34% 3 Major Greater than 21 days 113 4.2 (4.3) 0.42% (0.43%) Legal Compliance Disclosures and Euthanised not suitable for rehoming 43 34 -21% Deceased or euthanased Catastrophic 31 1.2 (1.7) 0.12% (0.17%) immediately Euthanised not suitable for racing 0 0 0%
Note: figures for 1 August 2017 to 31 July 2018 Total number of greyhounds deceased 172 145 -16%
Greyhounds as Pets Total number of greyhounds retired or deceased 818 641 -22%
Greyhounds as Pets (GAP) is a program of RWWA with a mission is promote, encourage and facilitate greyhound pet ownership Note: the data for FY2019 is correct as of 17 September 2019. While the data for FY2018 was reported in the 2018 Annual Report (correct as of 4 to the wider community through the provision of healthy and behaviourally sound greyhounds to homes throughout Western September 2018), minor variances in some data can occur over time as LR106 forms are received and processed on a continuous basis, and the Australia. The below table outlines the total number of greyhounds that entered the GAP program as well as the number of pre- status of individual greyhounds may be updated from time to time with new information received. assessments conducted at the facility in FY2019. Participant Welfare Variance from GAP Related Statistics FY2017 FY2018 FY2019 FY2018 – FY2019 RWWA contracts the service of an Employee Assistance Jockey Assist Adoptions 245 272 204 -25% Program (EAP) provider to ensure the commitment of The support for jockey welfare includes Jockey Assist, which emotional, mental and psychological wellbeing for RWWA provides free access for all jockeys and apprentices to a Greyhounds in Foster 112 82 94 15% employees, TAB agents, industry participants and jockeys is leading sports psychologist. They also have access to a sports Pre-Assessments 432 367 343 -7% achieved. medical specialist for all injuries and most recently a Career Transition program has been made available for jockeys as Euthanasia at Kennels 18 14 15 7% Racing Assist they consider transitioning from race riding to alternative Euthanasia % of Total Adoptions 7% 5% 7% 40% On 13 September 2018, RWWA launched a new welfare careers. The Jockey Assist program is funded by the Jockey
Note: while RWWA endeavour to rehome all greyhounds, there will be times when humane euthanasia is the most compassionate and support program for licensed participants in all three Welfare Fund. The Jockey Welfare Fund is managed by the responsible course of action for the animal’s wellbeing and for public health and safety. GAP may euthanise animals, as either medically or racing codes called Racing Assist. This service provides free Western Australian Jockeys Association, and is funded by one behaviourally necessitated, who are found to meet criteria for unhealthy, untreatable or unadoptable animals. confidential support through counselling to any licenced percent of thoroughbred stake money. industry participant, whether it be due to racing-related or Following the success of the inaugural 2018 campaign, each During FY2019, GAP continued to enhance existing partnerships personal issues. TAB Agent Assist Australian state once again hosted an adoption day on Sunday and programs including: RWWA also provides mental health and wellbeing support 28 April 2019, as part of a nationwide push to boost awareness • South Metropolitan TAFE foster program Industry participants include licensed trainers, harness to licenced SL1 TAB agents, called TAB Agent Assist. The of greyhounds as pets. The Western Australian event was hosted • Hosting students for work experience drivers, stable hands and stable forepersons, trackwork riders, program provides free, confidential phone support services 24 at the GAP facility with approximately 240 people attending. All • Hosting educational visits at the GAP facility greyhound attendants, farriers, rider agents, jockeys and hours a day, seven days a week, as well as up to six face-to- 48 available greyhounds were adopted in less than two hours. • GAP volunteer program apprentice jockeys, in metropolitan and regional Western face counselling sessions. • Attendance at community events Australia.
33 34 Annual Report 2019Annual Report Racing and Wagering Western Australia Racing Integrity
The Western Australian racing industry is governed by a • Confirmed absence of any significant penetration of unique model compared to other states, where a Statutory organised crime groups in either the ownership or Body RWWA, is charged with specialised functions in relation training of racing animals. to racing as outlined in Part 4 of the Racing and Wagering • Only isolated incidences of serious rule breaches, many Western Australia Act 2003. of which arise from acts of negligence, poor information or unsophisticated offenders as opposed to organised, In this capacity, RWWA is responsible for all functions of the sustained and systematic negative practices. 1 Overview Overview Business principal club/controlling body in relation to thoroughbred, harness and greyhound racing. Prohibited Substance Control The objective of the Racing Integrity division is to be a national RWWA continues to invest heavily in prohibited substance leader in delivering the highest levels of integrity and welfare control, with $1.3M spent in FY2019 on analytical service costs instilling confidence in the Western Australian racing industry alone. at all levels. 2 The restrictions on the use of drugs in racing, which includes Operations on Report This is achieved by providing and promoting a fair, safe and stimulants, analgesics and anti-inflammatory drugs, not only ethical racing industry for all through the use of proactive best ensures the confidence of the betting public that races are practice methods of prevention, detection, investigation and determined through honest means but also ensures that enforcement. the animals competing do so on their own merits without compromising their welfare. 3 The current level of integrity in Western Australian racing Legal Compliance Disclosures and industry is considered to be high based on the following: The ChemCentre in Perth is contracted to undertake the screening of all samples taken by RWWA. Since acquiring • High rates of human and animal drug control (screening) additional modern instrumentation to assist in delivering a with low rates of detection of potentially performance broader level of screening, there has been an increase in the enhancing substances. number of detections of prohibited substances. Such results • No internal corruption matters arising. reinforce RWWA’s commitment to ensuring the highest levels • No evidence of significant integrity breaches (e.g. race of fairness and integrity in racing. fixing, systematic doping regimes, live-baiting). • Strong record of inquiry and appeal proceedings with The table below indicates total swabbing levels for the year strong penalty precedents compared to other Australian FY2019. jurisdictions. • Strong licensing regime with evidence of licence refusal to maintain high standard of ‘fit and proper’ principles.
Thoroughbred Samples Positives Post Race 1,966 10 TCO2 1,463 - OOCT 95 - Human 198 4 Harness Samples Positives Post Race 1,619 13 TCO2 2,534 1 OOCT 65 - Human 99 - Greyhound Samples Positives Post Race 1,229 4 OOCT 42 -
Note: Figures are correct as at 12 August 2019, but subject to variation upon subsequent reporting from the ChemCentre. 35 Image: RWWA Stewards at Belmont Racecourse 36 Annual Report 2019Annual Report Racing and Wagering Western Australia Racing Integrity Racing Integrity
The level of swabbing relative to percentage of winners across all three codes is represented graphically as follows: From a total of 9,013 horse and greyhound swabs, 28 positive • Twelve of the recorded positives related to therapeutic swabs were recorded for FY2019, with: substances (e.g. anti-inflammatory drugs). • Eight of the recorded positive swabs being established • Eight of the recorded positives related to potentially on inquiry to involve the ingestion of arsenic by horses performance enhancing substances. Average Annual KPI % Winners Swabbed chewing Chromated Copper Arsenate (CCA) treated timbers commonly used in the construction of fencing The graph below provides historical rates of negative swabs, 1 Overview Overview Business and paddocks. As such these positives were not the result which with expanded screening in recent years has seen a of deliberate treatments but rather environmental factors. reduction in the rate of negatives. 100
Average Annual KPI % negative 75 Greyhound
100.2 Harness 2 Operations on Report 50 Thoroughbred Percentage 100
99.8 25
99.6 Greyhound
Harness 0 3 99.4 Legal Compliance Disclosures and 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19 Thoroughbred 99.2
Percentage 99 98.8 Inquiries The following refers to matters of a serious nature that 98.6 The Western Australian racing industry is recognised have been dealt with by the RWWA Primary Inquiries Panel nationally as having the strongest approach to integrity that is chaired by the General Manager Racing Integrity 98.4 matters with the range of penalties for serious offences at and comprised of the senior integrity officers across the 98.2 the upper end of the spectrum when compared to national racing codes who are empanelled to determine matters in penalties. This strong approach, particularly in matters accordance with the Rules of Racing. 98 of animal welfare, assists in maintaining the image and 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19 reputation of the Western Australian racing industry as being The comparatively low rate of appeal from such matters is properly regulated. a positive reflection with respect to the processes that are applied.
Code Total Inquiries Appeals Disqualifications Suspensions Fine Reprimands No Penalty
Thoroughbred 19 1 7 - 6 - 6*
Harness 20 2 7 - 6 - 7**
Greyhound 7 1 4 1 1 - 1***
Total 46 4 18 1 13 - 14
Notes: * No penalty to trainer/horse disqualified from race due to arsenic ingestion from CCA treated timbers. ** Six as above, one in relation to horse being ineligible for race. *** No charge issued. Image: Greyhounds WA Cannington
37 38 Annual Report 2019Annual Report Racing and Wagering Western Australia Racing Integrity Racing Integrity
Racing Appeals In FY2019, there were two applications for stays of proceedings. The Chair made the determinations as follows:
The Racing Penalties Appeal Tribunal (RPAT) was created to During FY2019, seven new appeals were lodged with the RPAT. maintain industry confidence in the enforcement of the various As at 30 June 2019, the RPAT had determined nine appeals, racing rules by providing the industry with an impartial judicial including three from FY2018, with only one appeal being carried Stays of Proceedings FY2019 Thoroughbred Harness Greyhound forum for the hearing of appeals against RWWA determinations. over to FY2020. These appeals, together with appeals from Stays Granted 1 1 - The RPAT is responsible for hearing and determining appeals FY2018, are summarised by racing code below: 1 Overview Overview Business against penalties imposed in disciplinary proceedings arising Stays Refused - - - from, or in relation to, the conduct of thoroughbred, greyhound Withdrawn - - - and harness racing. The following data is courtesy of the FY2019 RPAT annual report. TOTAL 1 1 -
Appeals Carried Over Appeals Appeals Carried Over Racing Code Appeals Lodged to 2018-19 Determined to 2019-20 2 Operations on Report Thoroughbred - 3 2 1
Harness 3 2 5 -
Greyhound - 2 2 -
TOTAL 3 7 9 1 3 Legal Compliance Disclosures and
The results of the determinations in respect of the racing codes for the year FY2019 are summarised below:
Results Thoroughbred Harness Greyhound
Allowed in Full - - -
Allowed in Part (Penalty Reduced) - 2 -
Referred Back to Stewards (RWWA) 1 - -
Dismissed 1 2 1
Withdrawn/Not Progressed - 1 1
Leave to Appeal Refused - - -
TOTAL 2 5 2
Appeals to be carries over to FY2020 are summarised below:
Appeals Carried Over to FY2020 Thoroughbred Harness Greyhound
Reserved Decision 1 - -
Reserved Decision on Penalty Only - - -
Reasons to be Published - - -
Yet to be Heard - - -
TOTAL 1 - -
Image: Western Australian Harness Driver Chris Lewis 39 40 Annual Report 2019Annual Report Racing and Wagering Western Australia
Corporate Social Responsibility
Effective Corporate Social Responsibility (CSR) guides and Racing Industry Support contributes to the sustainability of RWWA, is recognised • Race Club Community Program: in FY2019, Community as good business practice, and is increasingly expected by TAB had 28 partnerships with race clubs matching over stakeholders. Community TAB is the brand responsible for $50,000 in fundraising. The total amount of funds raised upholding CSR of RWWA externally and internally. and matched since the inception of the program is over 1 Overview Overview Business $584,000, benefitting various groups including Men’s Key Achievements Shed, Lions Club, Royal Flying Doctor Service, St John Ambulance, Full Circle, SAFE, South West Bushfire Relief, Major Partners Breast Cancer Care WA, MDWA. Major partners for FY2019 included: • Team Teal: support of the campaign which saw nine • Netball WA Aboriginal Grassroots and All Stars Programs: female Western Australian harness drivers take part. 2 $40,000 for a second year to support the program RWWA donated $200 to the Women’s Cancer Foundation Operations on Report as well as the off-court education programs for ten every time one of the drivers won a race, with a total of Aboriginal Grassroots Sites and major events. $5,000 being raised.
• Lifeline WA: Regional Support - $25,000 to support the Lights for Lifeline campaign • WA Regional Achievement and Community Awards: 3 and the training of new crisis support volunteers. Community Service Award Category Sponsor recognising Legal Compliance Disclosures and - $6,500 to create the new Community TAB those who make a significant contribution through Connecting Regional LGBTQ + Communities community service or social justice initiatives. program. Internal Engagement • HorsePower Australia (formerly Riding for the Disabled • Internal initiatives: Stress Down Day, Responsible WA): $80,000 for a fifth year to support the program Gambling Week, Purple Bra Day, Mental Health Week and development and major events. RSL fundraising were supported and promoted through Community TAB. Community Sport • Community TAB Sports Grants: the program continued • Volunteering and fundraising: a total of 59 staff in FY2019. Since its inception, the program has provided volunteered to not-for-profit groups during FY2019. 45 grants of up to $4,000 to Western Australian sporting RWWA also fundraised for its major partner organisations clubs, with a total contribution of $144,000. at various internal events.
• Integrated Football Program: over $10K of sponsorship • RWWA Not-For-Profit Recognition Program: each through support of the Wembley Integrated Football month Community TAB makes a donation to a not-for- Team, Willetton Integrated Football Team and the WA profit group that RWWA employees vote to receive the State Integrated Team, catering for men and women with donation. Since the launch of this program 27 donations intellectual disabilities to compete in amateur football. have been made to not-for-profit organisations.
• WA Sports Star Awards: sponsorship of the Sponsor and the Official of the Year Award.
• Parks and Leisure WA Awards: sponsorship of the Park and Leisure WA Awards.
Image: RDA State Games
41 42 2019Annual Report Racing and Wagering Western Australia People and Culture
The People and Culture division is responsible for the Employee Experience development and implementation of human resource Under the employee experience pillar, the embedding of management strategy and effective management of all RWWA’s Inclusion and Diversity program continued to workplace and employee related functions across the drive greater awareness and began to re-shape employee organisation. perceptions around a desired workplace culture. It included 1 a variety of initiatives and programs pitched at different Overview Business The division provides support and guidance to staff and employee levels to allow a broader reach and impact, managers on all employment related matters including including: recruitment, induction, performance management, interpretation and application of policies and workplace • Rise to Shine: designed to empower women at work, the conditions. Learning and Development, Occupational Safety program saw over 30 female employees go through the and Health and employee wellness functions also play a key program during the past 12 months. role within the division for RWWA and external stakeholders, • Masterclass: following the Rise to Shine program, the 2 which include TAB agents and the broader racing industry. In initiative was designed to develop leadership skills and Operations on Report addition, the delivery of payroll services and the management allow female employees to become ambassadors within of staff data and reporting sit within this division. the organisation. • Voices of Change: the initiative was launched to start the This year saw the continuation of external factors, such as conversation around employee cultural backgrounds, ongoing uncertainty around privatisation, which presented the LGBTIQ and disability, with the aim to foster more 3 organisation with unique challenges in attracting, retaining collaborative interactions. Legal Compliance Disclosures and and engaging its workforce. • Leadership and coaching: leadership and capability development continued to be a primary focus with the Clear Strategy continuation of leadership programs and coaching, introduction of new development areas such as During FY2019, RWWA adopted the Clear Strategy, which emotional intelligence and the rollout of the second incorporated three key pillars of customer experience, Emerging Leaders program. Other initiatives designed employee experience and ways of working. Employee to drive a continuous learning environment were also experience was the main focus for the People and Culture launched including access to LinkedIn Learning. division, with a strong emphasis on increasing staff engagement. Through the delivery of the employee experience strategy, RWWA successfully attracted new employees, increased With this direction, the division introduced various new leading its internal promotions and continued to maintain a high edge technology platforms to assist in: staff retention. These statistics have reinforced the belief • Driving greater employee outputs and commitment that the implementation of the employee • Individually personalised experiences around key experience strategy will continue to provide staff with a employee life cycle phases such as recruitment and on- workplace that they can continue to engage, learn and grow boarding irrelevant of what external factors may be impacting the • Re-engaging employees in fundamental processes organisation moving forward. around career pathing and skill development • Measuring employee sentiment to allow for a more Ways of Working proactive response in addressing and resolving current issues The introduction of the new ways of working pillar resulted in the Bettering Department being formed from the Wagering This approach assisted in positioning the organisation and Information Services divisions, with the principle focus of as a leader in this space, including RWWA receiving the delivering an unsurpassed customer experience. Through the Fuel50 Global Career Experience Champion Award for best creation of a new office layout, the department adopted an communications, launch and stakeholder engagement for its agile methodology approach and had a clearly defined road career pathing initiative. RWWA was also selected as a 2019 map in place, which resulted in a more engaged and delivery Australian HR Awards Finalist for the best use of technology in focussed area that delivered the desired customer outcomes. human resources. The success has led to investigation on how this approach could be incorporated into other areas of the business.
43 44 Image: RWWA Staff Christmas Party Annual Report 2019Annual Report Racing and Wagering Western Australia Chapter 3: Disclosures and Legal Compliance
Image: Apprentice Jockey Challenge at Ascot Racecourse 45 46 Annual Report 2019Annual Report Racing and Wagering Western Australia Opinion of the Auditor General Opinion of the Auditor General
1 Overview Overview Business
2 Operations on Report
3 Legal Compliance Disclosures and
47 48 Annual Report 2019Annual Report Racing and Wagering Western Australia Opinion of the Auditor General Opinion of the Auditor General
1 Overview Overview Business
2 Operations on Report
3 Legal Compliance Disclosures and
49 50 Annual Report 2019Annual Report Racing and Wagering Western Australia Certification of Financial Statement of Statements Comprehensive Income
For the year ended 31 July 2019
Statement of Comprehensive Income For the year ended 31 July 2019
Income Notes 2019 2018 $000 $000 For the year ended 31 July 2019 1 Overview Overview Business WATAB Margin 2.1 305,581 321,514 The accompanying financial statements of Racing and Wagering Western Australia have been prepared in compliance with the Other revenue 2.4 20,175 22,625 provisions of the Financial Management Act 2006 from proper accounts and records to present fairly the financial transactions for Interest revenue 2,068 2,146 the financial year ended 31 July 2019 and the financial position as at 31 July 2019. Total Revenue 327,824 346,285
At the date of signing we are not aware of any circumstances which would render the particulars included in the financial Gains statements misleading or inaccurate. 2 Operations on Report Gains on disposal of non-current assets 6.4 171 35 Total Gains 171 35
Total Income 327,995 346,320
Expenses 3 Legal Compliance Disclosures and
Cost of sales 4.1 89,601 84,557 Wagering tax 4.2 41,907 41,510 Racing services 4.3 26,237 24,413 Wagering services 4.3 84,068 84,757 Support services 4.3 30,037 29,652 Grants and subsidies to racing 3.2 15,986 16,697 Distributions to racing and sports 3.1 145,203 146,541 Total Expenses 433,039 428,127
(Loss) before income from State Government (105,044) (81,807)
WA Racefields income 2.2 80,964 58,400 Betting tax income 2.3 12,639 - Other rebate 2.2 8,325 14,310
Loss for the period (3,116) (9,097)
Other Comprehensive Income
Items not reclassified subsequently to profit or loss Changes in asset revaluation surplus 8.8 (196) (507) Changes in fair value of financial assets 8.8 193 - Total other comprehensive loss (3) ( 507)
Total Comprehensive Loss for the period ( 3,119) (9,604)
See also Note 8.9 'Schedule of Income and Expenses by Service' The Statement of Comprehensive Income should be read in conjunction with the accompanying notes.
51 52 Statement ofFinancialPosition 53 T T T T The Statement of FinancialThe Statement Position should be read in conjunction with the accompanying notes. E N L T T T A As at 31As at July 2019 S As at31 July2019 i o o o o q o o o s t a e a s t t t t u t t t b t a a a a e a a a N N Reserves equity Contributed Provisions Payables Provisions Payables C assets Intangible works progressCapital in plantandequipment Property, non-currentOther assets financialOther assets Non-current saleas for held classified assets currentOther assets Receivables Inventories financialOther assets cash andcashRestricted equivalents andCash cash equivalents C
t i i l l l l A t l l l e l t
u u o o
y i N C N C s s t E L A m r r n n i u u s o o i r r q e s a - - e e e r r n n s s u e b C C r r n n t e - - e e i s n i t t u u t C C l t n n
i y s r r t L A t t t u u r r o i i L A s e e e a r r s r r n n b s i s e e e f a t t i s F n n t b l L A e i s t t t i t l i i L A i s i a s e n t s b i s i s e a a e i s t b l s n e i s t i t l c i i s e t i i s a e l s P o s i t io n N 6.10 6.10 6.11 6.11 8.8 8.8 6.8 6.9 6.6 6.5 o 6.3 7.3 7.2 7.2 7.3 6.1 5.1 5.1 t e s
2 $ 1
1 1
0 0 6 5
6 9 1 4 1 0 10,000 1 4 43,738 44,977
1 69,193 42,277 2 8 6 2 2 19,321 72,371 9 9 0 2,026 , 4,759 1,495 , 1,389 3,297 7,142 5,178 1,120 , , , , 9 , , 8 5 8 0 9 4 9 359 235 841 2 5 0 0 5 1 3 3 8 9 9 9 4 5 1 1
$ 2 1
1 1
0 0 6 5
1 1 7 9 5 0 69,045 45,059 46,010 1 9 4 10,023
18,338 5 5 74,733 4 51,515 2 4 2 8 0 4,250 1,080 1,060 3,655 4,154 , , , , 7,251 , 1,179 , , 5 , 6 0 0 8 2 3 7 388 455 743 310 6 2 5 5 6 5 5 1 9 4 0 5 5 8 9 6
Statement of Changes in Equity
For the year ended 31 July 2019
Statement of Changes in Equity For the year ended 31 July 2019
Asset Contributed General Revaluation Financial Asset Retained Note Equity Reserves Reserves Reserve Earnings Total Equity $000 $000 $000 $000 $000 $000
Balance at 1 August 2017 60,884 37,996 1 7,618 - - 116,498
Surplus/(deficit) 8.8 - - - - (9,097) (9,097) Other comprehensive losses 8.8 - - (507) - - (507) Total comprehensive loss for the year - - (507) - (9,097) (9,604) Transactions with owners in their capacity as owners: Other contributions by owners 8,161 - - - - 8,161 Transfers between reserves - (9,097) - - 9,097 - Total 8,161 (9,097) - - 9,097 8,161
Balance at 31 July 2018 6 9,045 28,899 17,111 - - 1 15,055
Balance at 1 August 2018 6 9,045 28,899 17,111 - - 1 15,055
Change in accounting policy - - - 847 - 847
Restated balance at 1 August 2018 6 9,045 28,899 17,111 847 - 115,902
Surplus/(deficit) - - - - (3,116) (3,116) Other comprehensive losses - - (196) 193 - (3) Total comprehensive loss for the year - - (196) 193 (3,116) ( 3,119) Transactions with owners in their capacity as owners: Other contributions by owners 8.8 148 - - - - 148 Transfers between reserves 8.8 - (3,116) - - 3,116 - Total 148 (3,116) - - 3 ,116 148
Balance at 31 July 2019 69,193 25,783 16,915 1,040 - 112,931
The Statement of Changes in Equity should be read in conjunction with the accompanying notes.
1
54
Annual Report 2019 2019 Report Annual
Operations Overview Overview
Legal Compliance Legal 1 2 3
Racing and Wagering Western Australia Western Wagering and Racing
on Report Business Disclosures and and Disclosures Annual Report 2019Annual Report Racing and Wagering Western Australia Statement of Cash Flows Notes to and Forming Part of the Financial Statements
ForSta ttheem yearent o endedf Cash 31 Fl oJulyws 2019 For the year ending 31 July 2019 For the year ended 31 July 2019 Notes to and forming part of the Financial Statements For the year ended 31 July 2019 Cash Flows from Operating Activities Notes 2019 2018 $000 $000 Contents of the notes to the financial statements
Receipts 1 About this report Receipts from customers 1,960,559 2,018,558 1.1 Basis of preparation 1.2 Significant accounting policies 1
GST receipts on sales 37,993 40,154 Overview Business 1.3 Critical estimates and judgements Other receipts 12,044 14,052 1.4 Future impact of Australian Accounting Standards not yet operative Interest received 2,068 2,148 1.5 Initial application of Accounting Standards
Payments 2 How we are funded Customers (1,650,396) (1,685,970) 2.1 WATAB Margin Creditors (209,138) (201,710) 2.2 Income from State Government Employee benefits (43,762) (40,781) 2.3 Betting tax income Distributions, grants and subsidies (161,189) (163,238) 2.4 Other revenue 2 Operations on Report Interest paid (14) (15) GST payments on purchases (18,639) (18,517) 3 Industry funding 3.1 Distributions to racing and sports GST payments to taxation authority (19,165) (21,936) 3.2 Grants and subsidies to racing Other payments (7,415) (6,170)
Net cash used in operating activities 7.3 ( 97,054) (63,425) 4 Our expenditure 4.1 Cost of sales Cash Flows from Investing Activities 4.2 Wagering tax 3 Legal Compliance Disclosures and 4.3 Racing, wagering and support services Receipts Proceeds from sales of non-current assets 674 80 5 Employee benefits Proceeds from sale of investments in unit trusts 23 9,977 5.1 Provisions 5.2 Compensation of key management personnel Payments Purchase of non-current physical assets (8,782) (12,209) 6 Operating assets and liabilities Net cash used in investing activities (8,085) (2,152) 6.1 Property, plant & equipment 6.2 Fair value measurements 6.3 Non-current assets classified as held for sale Cash Flows from State Government 6.4 Net gain on disposal of non-current assets 6.5 Intangible assets WA Racefields income 80,964 58,400 6.6 Capital works in progress Betting tax income 12,639 - 6.7 Impairment of assets Other rebate 8,325 14,310 6.8 Inventories Stamp duty recoupment 148 - 6.9 Receivables Net cash provided by State Government 102,076 72,710 6.10 Other assets 6.11 Payables
7 Capital and financial risk management Net (decrease)/increase in cash and cash equivalents ( 3,063) 7 ,133 7.1 Financial Instruments Cash and cash equivalents at the beginning of period 75,793 68,660 7.2 Other financial assets Cash and cash equivalents at the end of period 7.3 72,730 75,793 7.3 Notes to the Statement of Cash Flows 7.4 Commitments The Statement of Cash Flows should be read in conjunction with the accompanying notes. 7.5 Contingent (assets)/liabilities
8 Other disclosures 8.1 Remuneration of Auditor 8.2 Related party transactions 8.3 Related bodies 8.4 Affiliated bodies 8.5 Supplementary financial information write-offs 8.6 Events occurring after the end of the reporting period 8.7 Special purpose accounts 8.8 Equity 8.9 Schedule of Income and Expense by Service 8.10 Explanatory Statement
55 56 Annual Report 2019Annual Report Racing and Wagering Western Australia Notes to and Forming Part of Notes to and Forming Part of the Financial Statements the Financial Statements
ForNo thetes tyearo an endingd formi n31g Julypart 2019of the Financial Statements For the year ending 31 July 2019 For the year ended 31 July 2019 Notes to and forming part of the Financial Statements For the year ended 31 July 2019 Contents of the notes to the financial statements
1 About this report 1.2 Significant accounting policies continued
Comparative Figures This section provides information on the basis of preparation of the financial statements and disclosure of the main Comparative figures are, where appropriate, reclassified to be comparable with the figures presented in the current reporting period. judgements, estimates and assumptions used in preparation. 1 Overview Overview Business
1.1 Basis of preparation 1.3 Critical estimates and judgements
Racing & Wagering Western Australia (RWWA) is a WA Government Trading Entity. A description of the nature of its In preparation of the financial statements, management is required to exercise its judgement when applying the operations and its principal activities have been included in the Business Overview section of this report which does not accounting policies. When there is a higher degree of judgement or complexity or areas where assumptions and estimates form part of these financial statements. are significant to the financial statements, these are disclosed separately. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are These annual financial statements were authorised for issue by the Board of RWWA on 14th October 2019. described in the following notes below: 2 Operations on Report Statement of compliance Section These general purpose financial statements are prepared in accordance with: Long service leave 5.1 1) The Financial Management Act 2006 Property, plant and equipment 6.1 2) The Treasurer's Instructions Impairment 6.7 3) Australian Accounting Standards (AAS) including applicable interpretations 4) Where appropriate, those AAS paragraphs applicable for not-for-profit entities have been applied. 1.4 Future impact of Australian Accounting Standards not yet operative 3 The Financial Management Act 2006 and the Treasurer's Instructions (the Instructions) take precedence over AAS. Several Legal Compliance Disclosures and AAS are modified by the Instructions to vary application, disclosure format and wording. Where modification is required RWWA cannot early adopt an Australian Accounting Standard unless specifically permitted by TI 1101 ‘Applications of and has had a material or significant financial effect upon the reported results, details of that modification and the resulting Australian Accounting Standards and Other Pronouncements’ or by an exemption from TI 1101. financial effect are disclosed in the notes to the financial statements. Where applicable, RWWA plans to apply the following Australian Accounting Standards from their application date. Basis of preparation These financial statements are presented in Australian dollars applying the accrual basis of accounting and using the historical cost convention. Certain balances will apply a different measurement basis (such as the fair value basis). Where Operative for this is the case the different measurement basis is disclosed in the associated note. All values are rounded to the nearest Title reporting periods thousand dollars ($'000). beginning on/after AASB 15 Revenue from Contracts with Customers
1.2 Significant accounting policies This Standard establishes the principles that RWWA shall apply to report useful information to users of financial statements about the nature, amount, timing and uncertainty of revenue and cash flows 01-Jan-19 These financial statements contain all the significant accounting policies that summarise the recognition and arising from a contract with a customer. measurement basis used and which are relevant to provide an understanding of the financial statements. Accounting policies that are specific to a note to the financial statements are described in the note to which they relate. Other RWWA has not yet determined the application or the potential impact of the Standard. accounting policies are set out below. AASB 16 Leases
RWWA has consistently applied the accounting policies to all periods presented in these financial statements, except if This Standard introduces a single lessee accounting model and requires a lessee to recognise assets mentioned otherwise. and liabilities for all leases with a term of more than 12 months, unless the underlying asset is of low value. Revenue Recognition 01-Jan-19 Revenue is recognised and measured at the fair value of consideration received or receivable. Whilst the impact of AASB 16 has not yet been fully quantified, RWWA currently has commitments for $14.7M worth of non-cancellable operating leases, which will mostly be brought onto the Statement Goods and Services Tax (GST) of Financial Position. Interest and amortisation expense will increase and rental expense will Revenues, expenses and assets are recognised net of GST, except where the amount of the GST incurred is not decrease. recoverable from the Australian Taxation Office (ATO). In these circumstances, the GST is recognised as part of the cost of AASB 1058 Income of Not-for-Profit Entities acquisition of the asset or as part of the expense.
The net amount of GST recoverable from, or payable to, the ATO is included as a current asset or liability in the Statement of Financial Position. This Standard clarifies and simplifies the income recognition requirements that apply to not for profit (NFP) entities, more closely reflecting the economic reality of NFP entity transactions 01-Jan-19 that are not contracts with customers. Timing of income recognition is dependent on whether such a Cash flows are included in the Statement of Cash Flows on a gross basis. The GST components of cash flows arising from transaction‑ ‑ gives rise to a liability, or other performance obligation (a promise to transfer a good or investing and financing activities which are recoverable from, or payable to, the ATO are classified as operating cash flows. service), or a contribution by owner, related to an asset (such as cash or another asset). The GST on operator’s margin, which is partially reimbursed by the Western Australian Government, is classified as cash flows from State Government. RWWA anticipates that the application will not materially impact the treatment of revenues.
57 58 Disclosures and Racing and Wagering Western Australia Business Report on
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u A a Margin inclusive on Turnover GST of Goods Services and Tax g o T w r c o A a o c t H Thissection information provides main The on how source isincome WATAB. RWWA of of funded. flows trade from the the and Government State income Fee collected Product by Racing on WA of the behalf by Industry Thisis supplemented Government.racing State share collected industry Betting Tax of by gamblingGoods is the consumptionapplied to of (GST) not Services services. and operator's Taxthe ishowever, to It applied as less wagered amounts margin the total defined prizes. monetary total to gaming operations on paid provides reimbursement Government the operator's GST margin for (including onState RWWA) Sports. Parimutuel Betting and Odds Fixed Treasurer's Instruction 1102A M areand GST. prizes only monetary taken of This recognisedRevenues represents net bets which to when the events they relate are finalised. income from State Government rather than offset againstrather thanGovernment offset the cost to whichincome from State applies. it W s e t o 1 . For the year ending 31 July 2019 ending 31 the year For N 31 ended year 2019 July For the 2 2 Notes to and Forming Part of of Part and Forming to Notes Statements Financial the
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l d n • Trade receivables as at 31 July 2018 are held to collect receivablesto are held 2018 • Trade 31 as July at contractual cash flowsrise give and to cash flows representingprincipalsolely of and interest. payments are These classified as 'Financial and measured assets at beginning2018. amortised cost' August 1 • Financial assetsbeen classifiedhave classifiedcost 2018 as July at and at 31 measured as sale' 'Available for but beginningremeasured at FVOCI 2018. 1 August a m i n a I t
i ) n i i a n i RWWA's historical prudent approach had estimated provisions historicalRWWA's approach estimated had in prudent excess 9 adoption on AASB those of of the required loss credit expected allowance approach. wasso difference The was to the materially not no different made adjustment 2018. 1 August at impairment for There wereThere nochanges the classification to financialof measurement and liabilities. ( 139's 9 AASB of incurred methodology AASB hasof impairment lossreplaced adoptionThe the approach with a forward- lookingloss credit approach. expected (ECL) Trade receivables Trade inInvestment trusts unit in unlisted sharesInvestment In summary, upon the adoption of AASB 9, RWWA had the following had RWWA 9, oradoption AASB reclassifications of elected the required upon In summary, August 1 as at 2018: F Total financial assets The classification and measurement requirements of AASB 9, resulted in classificationThe resulted 9, the following AASB of requirements changes: measurement and I o
t s e t
o 5 . N 31 ended year 2019 July For the 1 61 For the year ending 31 July 2019 ending 31 the year For
the Financial Statements Statements Financial the Notes to and Forming Part of of Part and Forming to Notes Disclosures and Racing and Wagering Western Australia Business Report on
1 2 3 Legal Compliance Annual Report 2019 Overview Operations 64 1 7 4 9 510 760 5 6 , , 4,567 4,547 0 0 8 8 6 18,146 6 89,235 34,593 10,880 1 1 0 0
1 4
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u r n s t b t i s a r Racecourse Infrastructure GrantsRacecourse Program Infrastructure Royalties Regions for Thoroughbreds Grants Harness Greyhounds Sports Sports Other subsidiesOther n u t a o s d i r t n I Grants arerecognised as an in expense the reporting in period which are paid. they Thissection information provides on how uses the racing RWWA its income industry. reserves to fund and distributionsthe Western Australianto Greyhound Racing are paid Greyhound (a) Association, RWWA. of a related party RWWA. of Localof party Cultural a related and Industries, distributions Sports Sport Department to Government, are paid (b) Following to Sports. on 2018 2019January only are distributed Act 1st unclaimed introduction dividends Betting Tax of to the Western Australian paid $976,572) (2018: in Included Subsidies Grants is $458,886 Other of (a) and a amount total RacingGreyhound Association, RWWA. of a related party D G s e t o 1 2 . . N 31 ended year 2019 July For the 3 3 3 For the year ending 31 July 2019 ending 31 the year For Notes to and Forming Part of of Part and Forming to Notes Statements Financial the - - 5 0 1 2 7 , 6 7,175 , 0 0 0 2 8 8 8 14,310 2 15,450 1 1 1 7 58,400 0 0 0
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e c c c t n n (b) Unclaimed dividends A (a) Other mainly revenue consistsOther vision Sky of rights subscriptions, schemeincome, Sky agency nominationsTAB breeder and revenue income,and isother sundry recognised onon receiptfunds. areIn accordance 2003claimed not that within Act dividends (sectionRWWA with the 104), seven months are as included Revenue. income Other under A 30% to the equal an of RWWA amount pay to is Treasury of required Section2018Department 4, TaxUnder Act the Betting collected tax from all betting of wageringamount operators residents. WA taking Betting tax income from is bets recognised which the amounta rightfor haveto receive. RWWA A I Under the Gaming Wagering and Commissionthe Gaming Wagering and (section 1987 110B), Act Commission credit may withcollectedproceedsthe Western the AustralianRWWA Race under Fields legislation.Racing The Wagering and Western racing registered to clubs distributed and inRWWA to credited 2003to be Australia Act requires funds (section these 107A) Western Australia. disclosed Treasurer’sthese to be Instruction requires 1102 amounts as the State Income from Government. (a) Income from State Government include $81.0M (2018: $58.4M) in revenue received from the Gaming Wagering from and received in revenue $58.4M) (2018: include $81.0M Government State Income from (a) Commission national from WA, and international wagering on operators Western Australian betting racing product. wagering the by commercial wouldthis RWWA’s otherwise to RWWA revenue directly paid from Generated activity, be consistent raceoperatorshowever,it as distributionto be for clubs, is income with to WA government treated from Section the Gaming of Wagering and 110B.(5) Commission Sectionand the Racing of 1987, and 107A Wagering Act Western Australia 2003.Act on marginfor GST paid RWWA’s partial Western Australian The and partial Governmentprovides reimbursement (b) for Wagering on turnover. paid reimbursement VIP Tax O B I s e
t o 4 3 2 . . . N 31 ended year 2019 July For the 2 2 2 63 For the year ending 31 July 2019 ending 31 the year For
the Financial Statements Statements Financial the Notes to and Forming Part of of Part and Forming to Notes Disclosures and Racing and Wagering Western Australia Business Report on
1 2 3 Legal Compliance Annual Report 2019 Overview Operations 66 1 1 5 6 3 8 6 9 66 5 1 3 7 2 6 0 4
847 405 1
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y y s p p n f e C r r o o n e l l - e d e e r p p o y n r i h h n t t o o u s m m l i a Long Service Leave Within the reporting of period the end months 12 of the reporting period of the end thanMore months 12 after Within the reporting of period the end months 12 of the reporting period of the end thanMore months 12 after C E Annual Leave O on-costs Employment N E Long Service Leave O on-costs Employment v p o o r m t E Thissection information provides entitlements. and benefits on employee Annual leaveliabilities(a) classified been have as as current there is nounconditional least at for 12 settlement rightto defer the reporting Assessments period. months the liabilitiesof after indicate that actual settlement occur to as is expected follows: Long service liabilities:(b) leave Unconditional long service provisions leave are classified asliabilities current does as RWWA anhavenot the reporting unconditional of the liability of period. least the end settlement at after months12 for rightto defer Pre-conditionaland conditional long service provisions leave are classified as non-currentliabilities hasRWWA an because requisite years service. the liability of unconditionalof has the settlement the employee until completed the rightto defer the liabilitiesof Assessments indicateoccur actual settlement that to as is follows:expected P s e t o 1 . For the year ending 31 July 2019 ending 31 the year For N 31 ended year 2019 July For the 5 5 Notes to and Forming Part of of Part and Forming to Notes Statements Financial the - 7 2 0 15 74 5 1 2 5 5 8 , , , 7,522 5,762 7,037 0 0 0 8 8 8 1 12,747 12,774 37,701 4 27,102 8 84,557 28,663 1 1 1 40,936 0 0 0 4
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1 7 2 14 0 0 4 493 6 3 9 , , 5,147 , 6,651 5,748 0 0 0 9 9 9 6,689 12,951 1 35,415 9 12,383 29,613 0 23,283 89,601 1 1 1 43,862 0 0 0 4 8 4
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e n a t i e Betting Tax Point of Consumption (POC) Tax - WA Point Tax - WA Consumptionof Betting Tax (POC) Supplies and Services and Supplies Advertising Promotions and Communications Accommodation Expenses Other Depreciation Amortisation and Expense Finance Costs Employee Benefit Employee Expense Tax on Turnover Tax on Turnover Cost Salesof on mainly rebates fees and include pooling product fees, wagering activities. Point of Consumption (POC) TaxPoint - Other Consumptionof (POC) Tax on Margin g s c p o a o
a x t E (b) Betting Tax (WA) (effective from January 2019) (a) An amount of $3,336,882 (2018: $3,497,659) was paid to Government Employees Superannuation Board, a related party of party aBoard,related Superannuation was Employees to Government $3,497,659) paid $3,336,882 (2018: of An amount (a) RWWA. $292,349) to Insurance was (2018: Commission paid of $1,103,085 party of a related and Riskcover An amount Fund, (b) RWWA. The tax rate for Parimutuel Sports betting was 5.0% of turnover, whereas the tax rate for Parimutuel Racingwhereas wasfor Parimutuel betting Sports 5.0% tax rate turnover, wasfor Parimutuel of rate the 11.91% of tax The Racing was FOB Sports 0.5%and was turnover of Betting (FOB) 2.0% turnover. of Odds gross Fixed tax rate for revenue. The 2019. 1 January the assessment for periods revenue after betting taxable of 15% of the rate isat Tax The payable 2019.January 1st from (a) replaced Please(b) that note (a) State Wagering rate at the Sectionin the Racing102bets of tax of respect Wagering and to pay Western Australia RWWA 2003required Act Sections the Racing of 5 4 and Wagering by and imposed WesternAct 2003. Australia Tax Tax (effective until December 2018) Thissection information provides main on the costsincurred our obligations. of conduct in the R W C s e t
o 3 2 1 . . . For the year ended 31 ended year 2019 July For the N 4 4 4 4 65 For the year ending 31 July 2019 ending 31 the year For
the Financial Statements Statements Financial the Notes to and Forming Part of of Part and Forming to Notes Disclosures and Racing and Wagering Western Australia Business Report on
1 2 3 Legal Compliance Annual Report 2019 Overview Operations 68 e v a e l
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c a n s • Expected future salary rates future • Expected • Discountrates retentionrates; • Employee and payments future • Expected c f u e n a n d
m l o n i n y a a s o r i c l a i v e t p i o p o r r m u t C Employment on-costs, includingEmployment workers’ compensation are and insurance,benefits recognised are employee not separately as liabilitiesto which expenses and whenon-costs has relate employment they the occurred. included are as Employment related expense’.benefits liability The is expenses’ RWWA’s included ‘Employee areof and included ‘Other not asof part part on-costsin ‘Employment provision.’ administer sector providers public superannuation other fund and Board Superannuation (GESB) Employees GovernmentThe service whereand the current superannuation the GESBS, to the Scheme, charge RWWA WSS the GSS Scheme,by The is paid contributionaredefined schemes.GESB, liabilities The service current for superannuation WSS, charges the the GSS, under contributionsGESB. employer of to the the concurrent arepayment the GESBS and extinguished by whole-of-government and employees reporting. of scheme the purposes from an for GSS is However, The benefit a defined isit 119. contribution AASB benefits, a defined plan the transfer under from apart perspective, agency Key estimates and assumptions and on estimates concerninghistorical are based Key future the experience various and have other factors that a significant risk causing of assets to the carrying of and liabilities a material amount adjustment withinreportingthe next period. assumptions estimates and inSeveral calculating are used long RWWA's service provision. leave These include: Changes in these estimationscarrying on assumptions the long the and impact of may amount service provision. leave gainAny or loss following longvalue of revaluationpresent service the of liabilities leave isrecognised benefits as employee expense. E S arrangements in Western Australia inaccordance with legislative Eligibility requirements. criteria in for membership particular schemes public varies sector for employees accordinganddate. implementation to commencement scheme sum now lump closed benefit a defined SuperannuationScheme (GSS), to the Gold State contribute may Employees prior commencing April to 16 who Employees non- 2007,employment to new became GSS, of members. weremembers not SuperannuationScheme (WSS). State West of the members contributory Scheme (GESBS). GESB Super the of on Aprilmembers commencing 16 after 2007 Employees or became employment 30chooseableFrom WSS or Marchexisting to 2012, new GESBS and of became employees their preferred members makesRWWA contributions provider. on in or providers superannuation employees of behalf fund to GESB other fund complianceCommonwealth with the Government’s 1992.(Administration) Contributions Superannuation Act Guarantee to these accumulation schemes extinguish liability RWWA’s superannuation for charges who in employees of respect are not the Pension of members Scheme or GSS. P s e t o 1 . N 31 ended year 2019 July For the 5 Notes to and Forming Part of of Part and Forming to Notes Statements Financial the July 2019 ended 31 the year For 1 7 466
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c o n o o r r c n o t settlement of the liability until the employee has completed the requisite years of service.requisite years the liabilityhasof of the employee the completed until settlement When assessing expected future payments consideration is given to expected future wage consideration salary and levels payments When future is including assessing given to expected future non- expected salary components such superannuation ascontributions, employer well as and departures asemployee the experience of the reporting on of period end are discounted usingyields at the marketpayments future periods service. of expected The as cash closelymatch, outflows.national that future asbondspossible, the estimated with to maturity terms government Unconditional long serviceprovisions leave are classified asliabilities current doesanhave as not RWWA unconditional right reporting the liability the of Pre-conditional of the end period. least 12 months settlement at for after andto defer conditional long serviceprovisions leave are classified as non-currentliabilities hasRWWA an because unconditional the rightto defer L A P All annual long and leave service provisions leave the reporting of end period. to the services are in employees’ of respect up A whollybe settled reportingAnnual is within to the is of and the end period leave therefore expected not months 12 after annual Thebenefits’. long-term leave liabilityconsidered employee be ‘other to is the present recognised at measured and whentheliabilities paid at to be the apply to remuneration amounts using expected expected of rate arevalue the settled settlement. of time wage consideration salary and levels payments When future includingis assessing given to expected future non- expected salary components such superannuation ascontributions employer as well and departures experience as employee of the on the reporting of period end are discounted usingyields at the marketpayments future periods service. of expected The as cash closelymatch, outflows. that national future asbonds possible, the estimated with to maturity terms government provisionThe annual for leaveis classified liability as current doesanhave as not unconditional RWWA right to defer the liabilityof reporting the period. 12 months at least for settlement after liabilityA long for serviceis leave has recognised two years on an service of remuneration employee completed based after the reporting of period. end asrates current at the (c) The settlement of annualof and long settlement The (c) service liabilities on-costsleave employment of including gives risepayment the to workers future compensationpayroll and expected tax. provision premiums of value The present the at ismeasured 4.3. The associatedNote expenses' expensepayments. at 'Other is under included in eachMovements class provisions of financialbelow.are out the during benefits, set other than employee year, P s e
t o 1 . N 31 ended year 2019 July For the 5 67 For the year ended 31 July 2019 ended 31 the year For the Financial Statements Statements Financial the Notes to and Forming Part of of Part and Forming to Notes Disclosures and Racing and Wagering Western Australia Business Report on
1 2 3 Legal Compliance Annual Report 2019 Overview Operations 70 1 5 5 3 4 4 4 4 0 1 1 4 1 3 2 6 (26) 8 4 5 6 5 2 3 0 8 8 0
, , , 5,216 , 2,103 , 5,270
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s t n e m e t a t S l a i c n a in F t e n s h e e t t i
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u o h f g i t n , r t i p s i e h h n y d o d i s a t n e t l c m t r i r n a r e f o a o a u e e u r r n a Accumulated depreciation Accumulated depreciation Accumulated C costAt F costAt M costAt F fairAt value B fairAt value L costAt I costAt depreciation Accumulated M costAt depreciation Accumulated depreciation Accumulated depreciation Accumulated Accumulated depreciation Accumulated p e o o p r t O Thissection includes information assets regarding utilisesRWWA the key to gain economic wagering from benefits activities servicethe racingalso provide and to It industry. includes liabilities incurred normal during operations. P s e t o 1 . N 31 ended year 2019 July For the 6 6 Notes to and Forming Part of of Part and Forming to Notes Statements Financial the July 2019 ended 31 the year For 1 1 1 1 1 1 1 ------2 6 5 6 41 2 4 218 242 484 5 5
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(a) (a) y s t i t r n o h e y t t i u m r a
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o o o o o o o t 300,001 - 310,000 310,001 - 320,000 320,001 - 330,000 380,001 - 390,000380,001 400,001 - 410,000 400,001 740,001 - 750,000740,001 760,001 - 770,000 60,001 - 70,00060,001 - 110,000 100,001 - 120,000 110,001 50,001 - 60,000 50,001 20,001 - 30,00020,001 280,001 - 290,000280,001 270,001 - 280,000 290,001 - 300,000 Post benefits employment long benefits Other term Termination benefits T partial for periods the financial of Senior employed (a) year in officer/Board Member their positions. Short term employee benefits employee Short term C C 220,001 - 230,000 Short term employee benefits employee Short term C C 10,000 - 1 RWWA has determined that key management personnel managementkey seniorand, include that has Ministers, officersRWWA determined members, RWWA. board of is RWWA compensateMinistersHowever obligated not to disclosures and therefore inrelation Ministers' to compensation Finances. in on the Annualbe found State Report may Total compensationpersonnel, management key for accountable other senior comprising and of the authority members within for the reportingpresented arefollowingofficersRWWA period the of bands: Post benefits employment Termination benefits T Other long benefits Other term C s e
t o 2 . N 31 ended year 2019 July For the 5 69 For the year ended 31 July 2019 ended 31 the year For the Financial Statements Statements Financial the Notes to and Forming Part of of Part and Forming to Notes Annual Report 2019Annual Report Racing and Wagering Western Australia Notes to and Forming Part of Notes to and Forming Part of the Financial Statements the Financial Statements Notes to and forming part of the Financial Statements Notes to and forming part of the Financial Statements ForFor the the year year ended ended 31 31 July July 2019 2019 ForFor the the year year ended ended 31 31 July July 2019 2019
6.1 Property, plant & equipment continued 6.1 Property, plant & equipment continued Land and buildings are independently valued annually by the Western Australian Land Information Authority (Valuation Freehold land and buildings were revalued as at 1 July 2018 by Western Australian Land Information Authority. The valuations Services) and recognised annually to ensure that the carrying amount does not differ materially from the assets’ fair value at were performed during the year ended 31 July 2019 and recognised at 31 July 2019. The fair value of all land and buildings the end of the reporting period. has been determined by reference to recent market transactions. In undertaking the revaluation, fair value was determined by reference to market values for land: $15,877,000 (2018: $17,709,000); current use of land $3,545,000 (2018: $4,375,000); Infrastructure is carried at historical cost less accumulated depreciation and accumulated impairment loss. market value of buildings $4,530,000 (2018: $5,627,000); current use of buildings $6,482,000 (2018: $6,583,000). 1 Derecognition Overview Business Information on fair value measurement is provided in Note 6.2. Upon disposal or derecognition of an item of property, any revaluation relating to that asset is retained in the asset revaluation surplus. Accounting policy Capitalisation/expensing of assets Asset Revaluation Reserve Items of property, plant and equipment costing over $5,000 are recognised as assets and the cost of utilising assets is The asset revaluation reserve is used to record increments and decrements on the revaluation of non-current assets on a expensed (depreciated) over their useful lives. Items costing less than $5,000 are expensed direct to the Statement of class of assets basis. Comprehensive Income (other than where they form part of a group of similar items which are significant in total). Depreciation 2 Operations on Report Initial recognition and measurement All non-current assets having a limited useful life are systematically depreciated over their estimated useful lives in a manner All items of property, plant and equipment are initially recognised at cost. that reflects the consumption of their future economic benefits.
For items of property, plant and equipment acquired at no cost or for nominal cost, the cost is the fair value at the date of Depreciation is calculated using the straight line method, using rates which are reviewed annually. Estimated useful lives for acquisition. each class of depreciable asset are:
Subsequent measurement Buildings 10 to 40 years 3 Subsequent to initial recognition as an asset, the revaluation model is used for the measurement of land and buildings and Infrastructure 10 years Legal Compliance Disclosures and the historical cost for all other property, plant, equipment and infrastructure. Land and buildings are carried at fair value less Leasehold Improvements (a) 5 to 15 years accumulated depreciation (buildings only) and accumulated impairment losses. All other items of property, plant and Motor vehicles 5 years equipment are carried at historical cost less accumulated depreciation and accumulated impairment losses. Machinery, Plant and Equipment 5 years Furniture and Fittings 5 years Where market-based evidence is available, the fair value of land and buildings is determined on the basis of current market Computer Equipment (b) 3 to 7 years buying values determined by reference to recent market transactions. When buildings are revalued by reference to recent Software (c) 2 to 15 years market transactions, the accumulated depreciation is eliminated against the gross carrying amount of the asset and the net amount restated to the revalued amount. (a) Leasehold Improvements useful life will depend on duration of lease. (b) Rate reflects the estimated economic life of the asset. In the absence of market-based evidence, the fair value of land and buildings is determined on the basis of existing use. This (c) Software that is integral to the operation of related hardware. normally applies where buildings are specialised or where land use is restricted. Fair value for existing use assets is determined by reference to the cost of replacing the remaining future economic benefits embodied in the asset i.e. the Land is not depreciated. depreciated replacement cost. Where the fair value of buildings is determined on the depreciated replacement cost basis, the accumulated depreciation is eliminated against the gross carrying amount of the asset and the net amount restated to the Critical accounting estimates and judgements: Plant, property and equipment / fair value revalued amount. Fair value for restricted use land is determined by comparison with market evidence for land with similar The most significant assumptions and judgements in estimating fair value are made in assessing whether to apply the existing approximate utility (high restricted use land) or market value of comparable unrestricted land (low restricted use land). use basis to assets and in determining estimated economic life. Professional judgement by the valuer is required where the evidence does not provide a clear distinction between market type assets and existing use assets.
71 72 Annual Report 2019Annual Report Racing and Wagering Western Australia - - 4 3 46 2
0 (46) (117)
(196) 1
(920) (506) 3 Notes to and Forming Part of , 8,161 , 8,782 l
(3,297) 4 74,103 6 12,209 0 a
67,904 (12,951) (12,746)
t 7
6 0
o
0
T
$
the Financial Statements ------
6 0 P 2 5 I 2 0 , , 3,439
4,250 8,634 W For the year ended 31 July 2019
2 4 12,209 0 Notes to and forming part of the Financial Statements
l (11,398)
(10,858)
0 a
t
i 0
$
p For the year ended 31 July 2019
a
C
6.2 Fair Value Measurements ------1
8
2 3 Assets measured at fair value: e 3 l
(920) 3 , , s 6,730 b 5,040 (5,747) t
(5,496) 19,714 9 i 0 18,338 8 Fair value at 1 e g 1
0 s
n
0 s
a Level 1 Level 2 Level 3 end of period $
A t
n I $000 $000 $000 $000
2019 s ------1
5
e Non-Current assets classified as held for sale (Note 6.3) - 3,297 - 3,297 5 l 3
(46) 977 457 383 (117)
c 9 (352)
(350) i 0
, 1,035 Land (Note 6.1) - 15,877 3,545 19,422 1
h Overview Overview Business 1
0 e
0 V Buildings (Note 6.1) - 4,530 6,482 11,012
0 r
$
o
t - 23,704 10,027 33,731
o
M
------
4
8 2018 d 84 2 3 411 n 356 324 (171)
(142)
3
5
s Non-Current assets classified as held for sale (Note 6.3) - 388 - 388
a
g
0 e
r n
0
i Land (Note 6.1) - 17,709 4,375 22,084
u t
0 t t i
i $
F n Buildings (Note 6.1) - 5,627 6,583 12,210
r
u
F - 23,724 1 0,958 34,682
2 Operations on Report ------
4 8
t r 4 4
n There were no transfers between Levels 1, 2 or 3 during the period. e 8 6 t e , , 3,262 5,248 (4,861) (5,458)
u 1 0 13,456 3 13,844 m 1 1 p 0
p i 0
m
$
u Valuation techniques to derive Level 2 fair values
o
q
C E
Level 2 fair values of Non-Current assets held for sale, Land and buildings are derived using the market approach. Market ------
9 4
65 , t evidence of sales prices of comparable land and buildings in close proximity is used to determine price per square metre. 3 6 161 y 864 n d (554)
5
r (390) 8
1,257 e n e 3 Legal Compliance Disclosures and 0
a n
m i 0
t
p h 0 i
n Non-Current assets held for sale have been written down to fair value less costs to sell. Fair value has been determined by
c $ a u
l a
q
P reference to market evidence of sales prices and comparable assets.
E M
------
1 7 Fair value measurements using significant unobservable inputs (Level 3) 1 4 e 731 541 s 232
r 4 (124) 5
(422) t
u e
t
s c
0
s Land Buildings
u
0 a r
t
0
s $000 $000 e $
l a
r b
f i
2019 n
g I
n
Fair value at start of period 4,375 6,583 a t n ------i s Additions 148 -
3 0
t
62 1 5 n d 613 d 689 409 l 6 (225)
(485)
4 Revaluation decrements recognised in Other Comprehensive Income (978) 213 e n
o
a 0
m
h
0 Depreciation Expense - (314)
e s e
v s 0 s
$ o e a
r
r Fair value at end of period 3 ,545 6,482
e
p g
L
o
m
r I
p s
t ------n 9
2 i 0 n 72
1 1 e k 2018 s (515) (123) 2 0
(560) r (406) , ,
g 3,929
8,606 o 1 m 0 2 12,210 n Fair value at start of period 375 2,776 i
1 1 0 e
w d
t
l 0
, i
t a Additions 4,000 3,929 $
u t
n
B S
e
Revaluation increments recognised in Other Comprehensive Income - 19
l
m a i
p Depreciation Expense - (141) i c ------u
d 4 2 n 37
q Fair value at end of period 4 ,375 6,583 n (73) 2 8 a 148
a e (578) 4 0
, n , (2,737) 4,000 L 0
& 9 18,624 2 22,084
d F i 0 1 l
t 2
0 o
n e
$ h a
l
h e
t There were no changes in valuation techniques during the period. p
e
r , f
F
y o t
r t e r p a o p
r
t t P a a g
f t t n i o n n
u u n m d d o o r o o o i i i o t m m r r f a a a
i e e
l (a) i d p p g g
c n n f f n i i n o o a y y
o r r 9 8 r r d d c 1 1 o a a t e n n 0 0
C C e e 2 2 Revaluation Revaluation increments/ Carrying amount at at amount Carrying of period start Additions Transfer to/(from) work progressin Disposals for as held Classified sale (decrements) Depreciation at amount Carrying of period start Additions Transfer Transfer to/(from) work progressin Disposals for as held Classified sale Impairment Revaluation increments/ (decrements) Depreciation Association. Greyhound racecourse(a) TransferassetsAustralian Western of Mandurah from R s e t o 1 . N 2019 31 July ended year For the Notes to and Forming Part of Part Notes to and Forming the Financial Statements July 2019 the year ended 31 For 6
73 74 Annual Report 2019Annual Report Racing and Wagering Western Australia
s t u
Notes to and Forming Part of p n i
e l b a v r e e u l the Financial Statements s a b v o
r n Notes to and forming part of the Financial Statements i a u f
For the year ended 31 July 2019 f o
For the year ended 31 July 2019 o t
p i h s
6.2 Fair Value Measurements continued n o i t a l
Valuation Processes e R Greater consumption of economicGreater consumption increased or obsolescencebenefit fair valuelowers Transfers in and out of a fair value level are recognised on the date of the event or change in circumstances that caused the Higher value similar of land increases estimated fair value transfer. Transfers are generally limited to assets newly classified as non-current assets held for sale as Treasurer's Instructions require valuations of land and buildings to be categorised within Level 3 where the valuations will utilise significant Level 3 inputs on a recurring basis. s t
u 1 Overview Overview Business
Land (Level 3 fair values) p n i
e
Fair value for restricted use land is based on comparison with market evidence for land with low level utility (high restricted use l b
land). The relevant comparators of land with low level utility is selected by the Western Australian Land Information Authority a v r
(Valuation Services) and represents the application of a significant Level 3 input in this valuation methodology. The fair value e s
measurement is sensitive to values of comparator land, with higher values of comparator land correlating with higher estimated b o approximate utility fair values of land. n Consumed economicConsumed U Selectionsimilar of land with Buildings and Infrastructure (Level 3 fair values) benefit/obsolescence asset of 2
Fair value for existing use specialised buildings assets is determined by reference to the cost of replacing the remaining future Operations on Report economic benefits embodied in the asset, i.e. the depreciated replacement cost. Depreciated replacement cost is the current replacement cost of an asset less accumulated depreciation calculated on the basis of such cost to reflect the already consumed or expired economic benefit, or obsolescence, and optimisation (where applicable) of the asset. Current replacement cost is generally determined by reference to the market observable replacement cost of a substitute asset of e
comparable utility and the gross project size specifications. u q i n h Valuation using depreciated replacement cost utilises the significant Level 3 input, consumed economic benefit/obsolescence c e t 3 Legal Compliance Disclosures and
of asset which is estimated by the Western Australian Land Information Authority (Valuation Services). The fair value n o i
measurement is sensitive to the estimate of consumption/obsolescence, with higher values of the estimate correlating with t a u
lower estimated fair values of buildings. l a V s t
Basis of Valuation n Current ReplacementCurrent Method Cost Current ReplacementCurrent Method Cost e m
In the absence of market-based evidence, due to the specialised nature of some non-financial assets, these assets are valued at e r
Level 3 of the fair value hierarchy on an existing use basis. The existing use basis recognises that restrictions or limitations have u s a
t been placed on their use and disposal when they are not determined to be surplus to requirements. These restrictions are e a
m
imposed by virtue of the assets being held to deliver a specific community service. s a e
u l e a u l v
Significant Level 3 inputs used by RWWA are derived and evaluated as follows: a r 8 v i
1 a r i f 0
Consumed economic benefit/obsolescence of asset a 2 f n
i s
y t l d These are estimated by the Western Australian Land Information Authority (Valuation Services). ) 3 u n n
l a J e
e 1 n v 3 m o e Selection of land with restricted utility i e t L ( t
p i a s r t Land Land $4,375,000 Buildings $6,583,000 t c u s S p e Fair value for restricted use land is determined by comparison with market evidence for land with low level utility. Relevant l n i D a
i
comparators of land with low level utility are selected by the Western Australian Land Information Authority (Valuation Services) e c l b n a a v r d i n e e s
u F t b n a e i o
t n s h n a u
t
o f t e n c u l o a s a t t c 9 i v r n f
1 i r a e i 0 n a 2 g f p m
i
y s e g l d
r t u n n u i u a J s
o 1 a n m b 3 e r o a i
t o n M p f i e o r Buildings $6,482,000 i Land $3,545,000 d t u c l a s n a e m V a r D
r o o i f a t n I Reconciliations closing opening and the of balances 6.1. are providedNote in F s e t o 2 . N ended 2019 year For the 31 July 6 Notes to and Forming Part of Part Notes to and Forming the Financial Statements July 2019 the year ended 31 For
75 76 Annual Report 2019Annual Report Racing and Wagering Western Australia Notes to and Forming Part of Notes to and Forming Part of the Financial Statements the Financial Statements
ForNo thetes tyearo an endedd form 31ing July par t2019 of the Financial Statements NForot ethes t oyear and ended formi n31g Julypart 2019of the Financial Statements For the year ended 31 July 2019 For the year ended 31 July 2019
2019 2018 2019 2018 $000 $000 $000 $000 6.5 Intangible Assets 6.3 Non-current assets classified as held for sale Computer Software Opening balance At cost 71,513 64,783 Freehold land 238 275 Accumulated amortisation (52,192) (46,445) Buildings 150 159 19,321 18,338 388 434 1 Overview Overview Business Domain Names Assets reclassified as held for sale At cost 25 25 Freehold land 2,737 - Accumulated amortisation (25) (25) Buildings 560 - - - 3,297 - 19,321 18,338 Revaluation decrement Freehold land - (37) Accounting policy 2 Buildings - (9) Operations on Report - (46) Capitalisation/expensing of assets Acquisitions and internally generated intangible assets costing over $50,000 are capitalised. The cost of utilising the assets is expensed (amortised) over their useful life. Total assets classified as held for sale Freehold land 2,975 238 Buildings 710 150 All acquired and internally developed intangible assets are initially measured at cost. 3,685 388 The cost model is applied for subsequent measurement requiring the asset to be carried at cost less any accumulated 3 Less assets sold amortisation and accumulated impairment losses. Legal Compliance Disclosures and Freehold land 238 - Buildings 150 - Amortisation for intangible assets with finite useful lives is calculated for the period of the expected benefit (estimated useful 388 - life which is reviewed annually) on the straight line basis using rates which are reviewed regularly. All intangible assets controlled by RWWA have a finite useful life and zero residual value. Closing balance Freehold land 2,737 238 The expected useful lives for each class of intangible asset are: Buildings 560 150 3,297 388 Computer Software (a) 2 to 15 years Web site costs 3 to 5 years Accounting policy Domain names 10 years Non-current assets held for sale are recognised at the lower of carrying amount and fair value less costs to sell, and are disclosed separately from other assets in the Statement of Financial Position. (a) Software that is not integral to the operation of any related hardware.
Computer Software 2019 2018 Software that is an integral part of the related hardware is recognised as property, plant and equipment. Software that is not an integral part of the related hardware is recognised as an intangible asset. $000 $000 6.4 Net gain on disposal of non-current assets Web Site Costs Proceeds from disposal 674 81 Carrying amount of disposal (503) (46) Web site costs are charged as expenses when they are incurred unless they relate to the acquisition or development of an asset when they may be capitalised and amortised. Generally, costs in relation to feasibility studies during the planning phase Net gain 171 35 of a web site, and ongoing costs of maintenance during the operating phase are expensed. Costs incurred in building or enhancing a web site, to the extent that can be reliably measured, are capitalised to the extent that they represent probable Accounting policy future economic benefits. The gain or loss on the disposal of assets is recognised at the date the significant risks and rewards of ownership of the asset passes to the buyer, usually when the buyer takes delivery of the asset. The gain or loss on disposal is calculated as the Domain Names difference between the carrying amount of the asset at the time of disposal and the net proceeds on disposal. Domain names have a finite useful life and are carried at cost less accumulated amortisation and accumulated impairment losses.
77 78 Annual Report 2019Annual Report Racing and Wagering Western Australia Notes to and Forming Part of Notes to and Forming Part of the Financial Statements the Financial Statements
ForNo thetes tyearo an endedd form i31ng July part 2019 of the Financial Statements ForNo thetes tyearo an endedd form 31ing July par t2019 of the Financial Statements For the year ended 31 July 2019 For the year ended 31 July 2019
2019 2018 2019 2018 $000 $000 $000 $000 6.6 Capital Works In Progress 6.8 Inventories TAB Terminals and Racewall Upgrade 650 1,212 Current Software Upgrades 1,278 1,837 Inventories not held for resale: Computer Equipment 37 769 Other 61 432 At Cost 2,026 4,250 1 Tickets 621 625 Overview Business Agency Spares and Consumables 220 118 841 743 6.7 Impairment of Assets There were no indications of impairment to property, plant and equipment and intangible assets at 31 July 2019. Accounting policy Inventories are measured at the lower of cost and net realisable value. The cost of inventories is based on the first-in first-out RWWA held no intangible assets with an indefinite useful life during the reporting period. principle, and includes expenditure incurred in acquiring the inventories and bringing them to their existing location and condition. Accounting policy 2 Operations on Report Property, plant and equipment, infrastructure and intangible assets are tested for any indication of impairment at the end of Inventories not held for resale are measured at cost unless they are no longer required, in which case they are measured at each reporting period. Where there is an indication of impairment, the recoverable amount is estimated. Where the net realisable value. recoverable amount is less than the carrying amount, the asset is considered impaired and is written down to the recoverable amount and an impairment loss is recognised. Where an asset measured at cost is written down to its recoverable amount, an impairment loss is recognised in profit or loss. Where a previously revalued asset is written down to recoverable amount, the 2019 2018 loss is recognised as a revaluation decrement in other comprehensive income. As RWWA is a not-for-profit entity, unless a $000 $000 specialised asset has been identified as a surplus asset, the recoverable amount is the higher of an asset’s fair value less costs 6.9 Receivables to sell and depreciated replacement cost. 3 Current Legal Compliance Disclosures and Receivables 972 794 Accrued Revenue 103 239 The risk of impairment is generally limited to circumstances where an assets depreciation is materially understated, where the Other Debtors 4,166 2,688 replacement cost is falling or where there is a significant change in useful life. Each relevant class of asset is reviewed annually to verify that the accumulated depreciation/amortisation reflects the level of consumption or expiration of the assets Allowance for impairment of receivables (63) (66) future economic benefits and to evaluate any impairment risk from falling replacement costs. 5,178 3,655
Reconciliation of changes in the allowance for impairment of receivables: Intangible assets with an indefinite useful life and intangible assets not yet available for use are tested for impairment at the Balance at start of period 66 71 end of the reporting period irrespective of whether there is any indication of impairment. Remeasurement under AASB 9 - - Restated balance at start of period 66 71 The recoverable amount of assets identified as surplus assets is the higher of fair value less costs to sell and the present value Doubtful debts expense - 20 of future cash flows expected to be derived from the asset. Surplus assets carried at fair value have no risk of material Expected credit losses expense 3 - impairment where fair value is determined by reference to market-based evidence. Where fair value is determined by Amounts written off during the period (6) (25) reference to depreciated replacement cost, surplus assets are at risk of impairment and the recoverable amount is measured. Balance at end of period 63 66 Surplus assets at cost are tested for indications of impairment at the end of each reporting period.
The maximum exposure to credit risk at the end of the reporting period for receivables is the carrying amount of the asset inclusive of any allowance for impairment as shown in the table at Note 7.1(c) 'Financial Instruments disclosures'.
RWWA does not hold any collateral as security or other credit enhancements relating to receivables.
Accounting policy
Receivables are recognised at original invoice amount less any uncollectible amounts (i.e. impairment). The carrying amount is equivalent to fair value as it is due for settlement within 30 days. Agents settle on a weekly basis.
79 80 Annual Report 2019Annual Report Racing and Wagering Western Australia Notes to and Forming Part of Notes to and Forming Part of the Financial Statements the Financial Statements Notes to and forming part of the Financial Statements For the year ended 31 July 2019 Notes to and forming part of the Financial Statements ForFor the the year year ended ended 31 31 July July 2019 2019 For the year ended 31 July 2019
2019 2018 7 Capital and financial risk management $000 $000 6.10 Other Assets Current This section sets out the material balances and disclosures associated with financing and cashflows. Prepayments 4,759 4,154 4,759 4,154 1 Overview Overview Business Non-Current 7.1 Financial Instruments Prepayments 235 310 (a) Financial Risk Management objectives and policies 235 310 Financial Instruments held by RWWA are cash and cash equivalents, other financial assets, receivables, payables and agent deposits. Accounting policy Prepayments represent payments in advance of receipt of goods or services or that part of expenditure made in one RWWA has limited exposure to financial risks. RWWA's overall risk management program focuses on managing the risks accounting period covering a term extending beyond that period. identified below. 2 Credit Risk Operations on Report 2019 2018 $000 $000 Credit risk arises when there is the possibility of RWWA's receivables defaulting on their contractual obligations resulting in 6.11 Payables financial loss to RWWA. The majority of the authority's trading with customers is conducted on a cash basis. In addition, Current receivable balances are monitored on an ongoing basis with the result that RWWA's exposure to bad debts is minimal. Trade Payables 3,721 3,590 Credit risk in other financial assets is mitigated by RWWA's investment policy which requires surplus funds to be Unclaimed Dividends and Refunds 4,264 4,564 predominantly invested in unit trusts with underlying assets with credit ratings above investment grade (BBB- or above as per TAB Payables and Account Betting Deposits 20,446 22,233 3 a Standard & Poors rating). At the end of the reporting period there were no significant concentrations of credit risk. Legal Compliance Disclosures and Other Payables 4,975 5,681 GST Payable 2,035 1,843 The maximum exposure to credit risk at the end of the reporting period in relation to each class of recognised financial Accrued Expenses 6,836 7,146 assets is the gross carrying amount of those assets inclusive of any provisions for impairment. 4 2,277 45,059 Liquidity Risk Non-Current Agents deposits and property bonds 1,120 1,080 Liquidity risk arises when RWWA is unable to meet its financial obligations as they fall due. RWWA is exposed to liquidity risk 1,120 1,080 through its trading in the normal course of business. RWWA has appropriate procedures to manage cash flows by monitoring forecast cash flows to ensure that sufficient funds are available to meet its commitments. Accounting policy Market Risk Payables are recognised at the amounts payable when RWWA becomes obliged to make future payments as a result of a Market risk is the risk that changes in market prices such as foreign exchange rates, interest rates and unit trust prices will purchase of assets or services. The carrying amount is equivalent to fair value, as settlement is generally within 30 days. affect RWWA's income or the value of its holdings of financial instruments. RWWA does not trade in foreign currency and thus has no exposure to foreign currency risk.
Other than as detailed in the interest rate sensitivity analysis table, RWWA's exposure to interest rate risk is limited because it does not have any borrowings.
RWWA has limited exposure to foreign currency risk on purchases that are denominated in a currency other than Australian dollars.
To manage its price risk in these investments RWWA utilises the services of a professional firm of investment advisors. Price risk is mitigated by RWWA's investment policy that provide strategies for the minimisation of price risk with the diversification of risk across a number of classes of investment.
81 82 Annual Report 2019Annual Report Racing and Wagering Western Australia Notes to and Forming Part of Notes to and Forming Part of the Financial Statements the Financial Statements
ForNo thetes tyearo an endedd form i31ng July part 2019 of the Financial Statements For the year ended 31 July 2019 For the year ended 31 July 2019 Notes to and forming part of the Financial Statements For the year ended 31 July 2019
7.1 Financial Instruments continued 7.1 Financial Instruments continued (b) Categories of Financial Instruments The carrying amounts of each of the following categories of financial assets and financial liabilities at the end of the reporting period are: (c) Credit risk exposure The following table discloses RWWA's credit risk exposure for trade receivables using a provision matrix. 1 Overview Overview Business 2019 2018 $000 $000 Financial Assets Days past due Cash and cash equivalents (a) 72,730 75,793 Total Current 31-60 days 61-90 days >91 days Financial Assets at fair value through Profit or loss 10,000 10,023 $000 $000 $000 $000 $000 Loans and Receivables (b) - 3,655 2019 Financial assets at amortised cost (b) 5,178 - Expected credit loss rate 0% 0% 0% 21% Financial asset at fair value through OCI 1,495 - Estimated total gross carrying amount at 2 Available for sale financial asset - 455 Operations on Report default 972 340 160 164 308 89,403 89,926 Expected credit losses (63) - - - (63) Financial Liabilities 2018 (Remeasurement) Financial liabilities at amortised cost (b) 41,363 44,296 Expected credit loss rate 0% 0% 0% 16% 41,363 44,296 Estimated total gross carrying amount at default 794 240 43 98 413 3 (a) Cash and cash equivalents includes restricted cash and cash equivalents. Expected credit losses (66) - - - (66) Legal Compliance Disclosures and
(b) These amounts exclude GST recoverable/payable to the ATO (statutory receivable/payable).
83 84 Notes to and forming part of the Financial Statements 85 NotesFor the year ended to 31 July and 2019 Forming Part of the Financial Statements For the year ended 31 July 2019
7.1 Financial Instruments continued
(d) Liquidity Risk and Interest Rate Exposure
The following table details RWWA'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
Interest Rate Exposure Maturity Dates Weighted Average Effective Carrying Fixed Interest Variable Non Interest Nominal 3 months to 1 More than 5 Interest Rate Amount Rate Interest Rate Bearing Amount Up to 1 month 1-3 months year 1-5 years years % $000 $000 $000 $000 $000 $000 $000 $000 $000 $000
2019 Financial Assets
Cash and cash equivalents 1.87% 72,730 30,000 42,046 684 72,730 22,730 35,000 15,000 - - Other financial assets 11,495 - - 11,495 11,495 10,000 - - - 1,495 (a) Receivables 5,178 - - 5,178 5,178 5,178 - - - - 89,403 3 0,000 42,046 17,357 89,403 37,908 35,000 15,000 - 1,495
Financial Liabilities (a) Payables 40,242 - - 40,242 40,242 39,546 679 17 - - Agent Deposits and property bonds 0.95% 1,120 - 1,120 - 1,120 - - - - 1,120 41,362 - 1,120 40,242 41,362 39,546 679 1 7 - 1,120
2018 Financial Assets
Cash and cash equivalents 2.47% 75,793 37,000 38,156 638 75,793 18,793 50,000 7,000 - - Other financial assets 10,023 - - 10,023 10,023 10,023 - - - - (a) Receivables 3,655 - - 3,655 3,655 3,655 - - - - Investment 455 - - 455 455 - - - - 455 89,926 37,000 38,156 14,771 89,926 32,471 5 0,000 7,000 - 455
Financial Liabilities (a) Payables 43,216 - - 43,216 43,216 43,216 - - - - Agent Deposits and property bonds 1.45% 1,080 - 1,080 - 1,080 - - - - 1,080 44,296 - 1,080 43,216 44,296 43,216 - - - 1,080
(a) The amount of receivables/payables excludes GST recoverable/payable to the ATO (statutory receivable/payable). The amounts disclosed are the contractual undiscounted cash flows of each class of financial liabilities For theyearended31 July2019 the FinancialStatements Notes toandForming Part of 7 For the year ended 31 July 2019 N . 1 o t e s F Fair Values 2 notes. are recognisedat amounts that represent reasonable a approximation of fair value unless otherwise statedin the applicable financialAll assets and liabilitiesrecognised in the Statement ofFinancial Position, whether they arecarried at cost fairor value, Investment inunittrusts F Investment inunittrusts F 2 increased (decreased) RWWA's totalsurplus ofthe period asshown below. Analysis changeA in the market value ofunlisted unittrust investments-/+5%with byall other variables heldconstant wouldhave Sensitivity Price (a) Excludes cash amountsthat earn donot interest or havefixeda interest rate. Agent Deposits andpropertybonds F Cash andcash equivalents F 2 Agent Deposits andpropertybonds F Cash andcash equivalents F 2 held constant throughout the reporting period. the reporting period onthe surplus ofthe period for a1%change ininterest rates.It isassumed that achange ininterest rates is The following tablerepresents asummaryof the interest rate sensitivity ofRWWA's financial assets and liabilities attheof end Interest rate sensitivity analysis T T t i i i i i i i 0 0 0 0 o o n n n n n n n 1 1 1 1 o t t a a a a a a a 8 9 8 9 a a n n n n n n a n l l c c c c c c I I c i i i i i i n n n a a a a a a i a l l l l l l d c c
l A A L A L A r r I
e e i i f s s s s n a a o s s s s a a b b s e e e e s s r t i i t t t t l l e e m r i i s s s s t t u / / i i ( ( e e m i D D n s s e e e g n c c
r r p t e e s a c a a r s s o t (a) (a) e e
n ) ) o t i f n t u h e e d
F i n a n c
i a l C
a S m a $ t r 0 r o a y
0 42,046 38,156 u t i
0 1,080 n e
1,120 n g t m
e n t
s
S $ u
0 r - p 0
1 l 0 u ( 0 ( 3
4 (420) (382) s 0 9 3
(11) (11) b 3 1 a ) ) s i s
p
C o a E i m a $ $
n q r 0 0 t r o u s y 0 0 10,000
10,023 u i i t 0 0 ( n ( n y 3
4 (420) (382) g t 9 3
(11) (11) 3 1 ) )
+
5 S % u $ $
r 0 0 c + p h 0 0
1 l u a 0 0 0 3 4 n (500) s (501)
0 420 382 9 g 3
11 11 3 b e 1 a s i s
-
p 5
o % E i $ $
q n c 0 0 u t h s 0 0
i a t 0 0 y 3 n 4
500 420 382 9 501 g 3
e 3 11 11 1
86
Annual Report 2019 2019 Report Annual
Operations Overview Overview
Legal Compliance Legal 1 2 3
Racing and Wagering Western Australia Western Wagering and Racing
on Report Business Disclosures and and Disclosures Annual Report 2019Annual Report Racing and Wagering Western Australia Notes to and Forming Part of Notes to and Forming Part of theNotes to anFinanciald forming part of the Fina ncStatementsial Statements the Financial Statements For the year ended 31 July 2019 For the year ended 31 July 2019 ForNo thetes yearto an endedd form 31ing July par 2019t of the Financial Statements For the year ended 31 July 2019 2019 2018 $000 $000 7.2 Other Financial Assets 7.3 Notes to the Statement of Cash Flows Current Short term investment in unit trusts at fair value through profit or loss 10,000 10,023 Cash at bank earns interest at floating rates based on daily bank deposit rates. 10,000 1 0,023 Short-term deposits are made for varying periods of between one and six months, depending upon the immediate cash Non-Current requirements of RWWA, and earn interest at the respective short-term deposit rates. 1 Unlisted shares at fair value through other comprehensive income 1,495 - Overview Business Unlisted shares - available for sale financial assets - 455 Reconciliation of cash 1,495 455 Cash at the end of the financial year as shown in the Statement of Cash Flows is reconciled to the related items in the Statement of Financial Position as follows:
Valuation of Investments Investment in unit trusts are measured at fair value through profit and loss. Unlisted shares are measured at fair value through 2019 2018 Other Comprehensive Income. $000 $000 Cash and cash equivalents 2 Operations on Report The approach to measuring the fair value of investments is described below: Cash at bank 17,327 12,656 Cash on hand 44 77 Fixed interest unit trust Short-term deposits 55,000 62,000 Unit trusts are priced using fund managers' quotes of unit prices determined on the basis of market value of the investment 72,371 74,733 portfolio with an adjustment for transaction costs. Restricted cash (a) 359 1,060 72,730 75,793 Unlisted shares 3 Unlisted shares are priced based on share in net assets. Legal Compliance Disclosures and (a) Royalties for Regions fund - unspent funds are committed to Racecourse Infrastructure Grants Program in WA regional areas. Level 1 is the preferred input for valuation and reflects unadjusted quoted prices in active markets for identical assets or liabilities which the economic entity can access at the end of the reporting period. A financial instrument is regarded as quoted in an Reconciliation of profit to net cash flows used in operating activities active market if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing Loss for the period (3,116) (9,097) service or regulatory agency and those prices represent actual and regularly occurring market transactions on an arms length basis. Non cash items: Depreciation and amortisation expense 12,951 12,747 Level 2 is the valuation of assets and liabilities either directly or indirectly based upon market observables other than quoted Net gain on sale of property, plant and equipment (171) (35) prices. For example: Investments with fair values based on broker quotes, investments in unlisted trusts with fair values obtained via fund managers and assets that are valued using the economic entity's own models whereby the majority of Impairment - 920 assumptions are market observable. Income from State Government (89,289) (72,710) Level 3 relates to inputs that are unobservable. Unobservable inputs means that fair values are determined in whole or in part Betting tax income (12,639) - using a valuation technique (model) based on assumptions that are neither supported by prices from observable current market transactions in the same instrument nor are they based on available market data. (Increase)/decrease in assets: Receivables / Accrued Income (1,523) (1,397) Recurring fair value measurements Current inventories (97) 67 Level 1 Level 2 Level 3 Total Prepayments (529) 198 $000 $000 $000 $000 2019 (Increase)/decrease in liabilities: Fixed interest unit trusts - 10,000 - 10,000 Trade creditors (2,322) 5,216 Unlisted shares - - 1,495 1,495 Other creditors (610) 810 Annual leave and long service leave provisions 93 150 2018 Other current provisions 6 5 Fixed interest unit trusts - 10,023 - 10,023 Change in GST Receivables/Payables 192 (299)
There were no significant transfers between Level 1, 2 or 3 during 2019. Net cash used in operating activities (97,054) (63,425) The table below provides information about the valuation technique and inputs utilised in fair value measurement: Accounting policy Valuation Technique Inputs Utilised Cash and cash equivalents Fixed Interest Unit Trusts Quoted prices: Unit price Unit Price, Quantity For the purpose of the Statement of Cash Flows, cash and cash equivalents (and restricted cash and cash equivalents) assets Unlisted shares Share of net assets Financial Statements comprise cash on hand and short term deposits with original maturities of six months or less that are readily convertible to a known amount of cash and which are subject to insignificant risk of changes in value.
87 88 Annual Report 2019Annual Report Racing and Wagering Western Australia Notes to and Forming Part of Notes to and Forming Part of the Financial Statements the Financial Statements
For the year ended 31 July 2019 For the year ended 31 July 2019 Notes to and forming part of the Financial Statements For the year ended 31 July 2019 Notes to and forming part of the Financial Statements For the year ended 31 July 2019 7.4 Commitments Commitments are inclusive of GST 7.5 Contingent (assets)/liabilities Capital Commitments Commitments in relation to capital expenditure contracted for at the reporting date but not recognised in the financial 2019 2018 statements as liabilities, are payable as follows: 1 $000 $000 Overview Business Contract performance guarantees exist over future rental payments on TAB 2019 2018 Agencies 30 30 $000 $000 Approximate amount receivable from Riskcover in future years for performance adjustment in prior years Workers Compensation insurance Within one year 186 504 premiums (169) (2,168) 186 504
The capital commitments include amounts for: 2
Racing Infrastructure 46 - Operations on Report Motor Vehicles 28 - Racewalls rollout 39 52 IT systems 73 415 TAB Radio - 37 186 504 Operating Lease Commitments 3 Commitments in relation to leases contracted for at the reporting date but not recognised in the financial statements as Legal Compliance Disclosures and liabilities, are payable as follows:
Within one year 4,752 4,409 Later than one year but not later than five years 9,535 10,519 Later than five years 425 1,099 14,712 16,027
Representing: Non-cancellable operating leases 14,712 16,027 14,712 16,027
The non-cancellable operating lease commitments include amounts for: Property 14,712 16,027 14,712 16,027
RWWA has entered into a number of property leases which are non-cancellable leases of varying lengths, with rent payable monthly in advance. Contingent rent provisions within the lease agreements allow annual increases and market reviews. In some instances an option exists to extend the leases at the end of the initial term.
Other Expenditure Commitments Other expenditure commitments contracted for at the end of the reporting period but not recognised as liabilities, are payable as follows:
2019 2018 $000 $000 Within one year 13,730 10,349 Later than one year but not later than five years 8,442 16,181 22,172 26,530
Critical accounting estimates and judgements: Operating lease commitments RWWA has entered into a number of leases for buildings for branch agency accommodation. Some of these leases relate to buildings of a temporary nature and it has been determined that the lessor retains substantially all the risks and rewards incidental to ownership. Accordingly, these leases have been classified as operating leases.
89 90 Annual Report 2019Annual Report Racing and Wagering Western Australia Notes to and Forming Part of Notes to and Forming Part of the Financial Statements the Financial Statements Notes to and forming part of the Financial Statements Notes to and forming part of the Financial Statements For the year ended 31 July 2019 ForFor the the year year ended ended 31 31 July July 2019 2019 For the year ended 31 July 2019
8.3 Related Bodies 8 Other disclosures At year end RWWA did not have any related bodies.
This section provides information on other disclosures required to aid the understanding of the financial statements. 8.4 Affiliated Bodies Western Australian Greyhound Racing Association is a government affiliated body that received distributions of $19,367,404 (2018 $18,146,183) and grants and subsidies of $458,886 (2018 $976,572) from RWWA. WAGRA is not subject to operational control by RWWA. 1 8.1 Remuneration of Auditor Overview Business
Remuneration paid or payable to the Auditor General in respect of the audit for the current financial year is as follows: 2019 2018 2019 2018 $000 $000 Supplementary Financial Information Write-offs $000 $000 8.5 (a) Write-offs Auditing the accounts, financial statements and Key Performance Indicators 132 127 During the financial year, $6,000 (2018 $25,000) was written off RWWA's 1 32 127 Receivables under the authority of: 2 The accountable authority (6) (25) Operations on Report (6) (25) 8.2 Related Party Transactions RWWA is a wholly owned and controlled entity of the State of Western Australia. In conducting its activities, RWWA is (b) Losses through theft, defaults and other causes required to pay various taxes and levies based on the standard terms and conditions that apply to all tax and levy payers to Losses of public money and public and other property through theft or the State and entities related to the State. default - - Amounts recovered - - 3 Related parties of RWWA include: - - Legal Compliance Disclosures and
• All Ministers and their close family members, and their controlled or jointly controlled entities; (c) Gifts of public property • All senior officers and their close family members, and their controlled or jointly controlled entities; Gifts of public property provided by the Agency - - • Other departments and public sector entities, including related bodies included in the whole of government - - consolidated financial statements; • Associates and joint ventures, that are included in the whole of government consolidated financial statements; • Government Employees Superannuation Board (GESB). 8.6 Events occurring after the end of the reporting period On 4th September 2019 the TAB (Disposal) Bill 2019 was passed by the WA state parliament. The passing of this Bill provides Significant transactions with government related entities: the appropriate legislative framework to negotiate the sale of the WATAB. On 27th September 2019 Expressions of Interest were sought by WA State Government on Tenders WA. • Royalties for Regions Fund (Note 7.3) • Grants and Subsidies to Western Australian Greyhound Racing Association (Note 3.2) • Distributions to Western Australian Greyhound Racing Association and Department of Sports and Recreation (Note 3.1) 8.7 Special purpose accounts • Insurance payments to the Insurance Commission and Riskcover Fund (Note 4.3) Monies held on trust for apprentice jockeys • Income from State Government (Note 2.2) The purpose of these accounts is for riding fees and winnings held on trust for apprentice jockeys during the period of an • Remuneration for services provided by the Auditor General (Note 8.1) apprenticeship. • Betting tax Point of Consumption (POC) Tax - WA to State Revenue (Note 4.2) • Betting tax income from Treasury (Note 2.3) 2019 Material transactions with other related parties $000
• Superannuation payments to GESB (Note 4.3) Balance at start of period 704 Receipts 554 During the year, RWWA had no material related party transaction with Ministers/senior officers or their close family members Payments (797) or their controlled (or jointly controlled) entities for disclosure. Balance at end of period 461
91 92 Annual Report 2019Annual Report Racing and Wagering Western Australia ) ) -
7 7 7 0 35
2 0 9 2 1 8 3 0 , 2,146
, , , 41,510 14,310 16,697 24,413
Notes to and Forming Part of 84,757 8 84,557 22,625 29,652 1 0 8 58,400 6 9
321,514 146,541
( 2 1 8 0 4 ( 4 0 0 3
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a the Financial Statements t o ) ) T 6 5 9 Notes to and forming part of the Financial Statements 4
171 1 3 9 4 1 , 0 9 0
8,325 2,068 , , For the year ended 31 July 2019 ,
20,175 3 12,639 41,907 15,986 26,237
For the year ended 31 July 2019 89,601 30,037 0 9 80,964 84,068 7 3 5
( 305,581 145,203 1 0 2 3 0 0 0 1 3
4 ( $ 2
2019 2018 ) )
$000 $000 ------
4 4 2 17 8 35
5 5 5 8.8 Equity 9 1 4 4 6 2,146
, , , , 0 29,652 8 7 7 2 9 Contributed Equity: 1 0 2 2 2 ( ( 0 0
Balance at the start of the period 69,045 60,884 $ 2 (a) d e
Contributions 148 8,161 t a
Distributions - - c o l ) ) 1 ------l
1 Overview Overview Business 7 7 Balance at the end of the period 69,193 69,045 7 0 a
171 3 9 9 4 n 7 7 0 2 , , , 2,068 U ,
7 7 0 9 30,037 0 2
Reserves 1 0 2 2 3 ( ( 0 0
$ General reserve: 2 Balance at the start of the period 28,899 37,996
Transfer from Retained Earnings (3,116) (9,097) ------
1 1 1 Balance at the end of the period 25,783 28,899 2 3 1 9 2 1 7 3 0 , , , , 4,567 41,510 14,310 4 12,598 0 84,757 8 5 84,557 8 3 321,514 1
3 1 1 0 Asset revaluation reserve: 3 1 2 3 0 0 1 2
Operations on Report $ Balance at the start of the period 17,111 17,618 2 g
Net revaluation increments/(decrements): n i
r
Land (73) (577) e g ------
7 a 9 4 Buildings (123) 70 6 1 0 8 9 W 3 0 9 1,431 9 ,
8,325 , ,
Balance at the end of the period 16,915 17,111 , 10,415 0 9 41,907 7
89,601 7 84,068 8 5
1 305,581 0 1 0 1 9 0 0 1 2 3
$ Financial assets revaluation reserve: 2 Balance at the start of the period - - 3 Legal Compliance Disclosures and
Changes in accounting policy - other financial assets 847 ) ) ------
4 4 4 Net revaluation increments/(decrements): 0 7 7 1 8 0 6 0 0 , Financial Assets 193 - , , , 0 8 16,697 10,010 24,413
3 58,400 4 3 0
1 141,974
0 1 7 1 Balance at the end of the period 1,040 - 8 0 0 1 1 1
( ( $ 2 g
Balance of reserves at end of the period 43,738 46,010 n i c ) ) ------a
2 5 9 4 R 5 3 3 Retained earnings: 9 7 2 6 9 , , , , 9,759
0 9 9 12,639 15,986 6 26,237 Balance at the start of the period - - 2 5 80,964
143,771 1 0
7 8 8 ( 1 0 0
Result for the period (3,116) (9,097) 1 (
$ 2 Transfer to General Reserve 3,116 9,097
Balance at the end of the period - - s t n
(a) This related to transfer of Mandurah racecourse assets from Western Australian Greyhound Racing Association during e
prior year and related stamp duty current year. m e t a t
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e l c i The purpose of the general reserve is to cushion the effect of turnover fluctuations, or for supplementing payments made to a i v r c
the racing industry; to meet capital commitments, including the repayment of borrowings; to provide for capital e n S development in the long term interests of RWWA; to meet contingent losses; and for the maintenance, repair, improvement a y
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AASB Interpretation 1038 Contributions by Owners Made to Wholly-Owned Public Sector Entities requires transfers in the r m n o i a o r
nature of equity contributions, other than as a result of a restructure of administrative arrangements, to be designated by the a c p e
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Government (the owner) as contributions by owners (at the time of, or prior to transfer) before such transfers can be g m e e n r o h recognised as equity contributions. Capital appropriations have been designated as contributions by owners by TI 955 i t o c
f r n m s Contributions by Owners made to Wholly Owned Public Sector Entities and have been credited directly to Contributed e o r I e b f f e
s t o Equity. ) ) f n n s s o m
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i i e e O E e f f a a v t t h o P The transfers of net assets to/from other agencies, other than as a result of a restructure of administrative arrangements, are v C o o t o e o o c X r r
N I R T E T P G P S designated as contributions by owners where the transfers are non-discretionary and non-reciprocal. Margin revenue Other revenue Interest assets Gain on disposal of non-current salesCosts of Wagering Tax Racing Services Wagering Services ServicesSupport subsidies and Grants Distribution to racing industries sports and RacefieldsWA income TaxBetting income rebate Other s e t o 9 . N 31 July For year the ended 2019 8 Notes to and Forming Part of the Financial Statements Part Notes to and Forming July 2019 the year ended 31 For
93 94 Annual Report 2019Annual Report Racing and Wagering Western Australia Notes to and Forming Part of Certification of Key the Financial Statements Performance Indicators ForNo thetes yearto an endedd form 31in gJuly par 2019t of the Financial Statements For the year ended 31 July 2019
8.10 Explanatory Statement
AASB 1055 Budgetary Reporting standard requires specific budgetary disclosures in the general purpose financial statements of not-for-profit entities within the General Government Sector. RWWA falls within the category of Public Non- Financial Corporation Section. RWWA does not publish annual estimates in the budget papers or the Statement of Corporate Intent.
Therefore, as prescribed under TI 945P, RWWA provides details of any significant variations between the actual results for 1 Overview Overview Business 2018 and 2019. For the year ended 31 July 2019 Significant variations are considered to be those in excess of 10% and $2.5M.
Significant variances between actual results for 2018 and 2019 We hereby certify that the key performance indicators for Racing and Wagering Western Australia (RWWA) are based Comment 2019 2018 on proper records, are relevant and appropriate for assisting users to assess the performance of RWWA and fairly Actual Actual Variance represent the performance of RWWA for the financial year ended 31 July 2019. 2
$000 $000 $000 Operations on Report Revenue Margin 305,581 321,514 (15,933) Other Revenue (1) 20,175 22,625 (2,449) Interest Revenue 2,068 2,146 (78)
Gains Gain on disposal of non-current assets 171 35 136 3 Legal Compliance Disclosures and Expenses Cost of sales 89,601 84,557 5,045 Wagering Tax 41,907 41,510 398 Racing Services 26,237 24,413 1,823 Wagering Services 84,068 84,757 (690) Support Services 30,037 29,652 387 Grants and subsidies to racing 15,986 16,697 (711) Distribution to racing and sports 145,203 146,541 (1,339) Loss on disposal of non-current assets - - -
WA Racefields income (2) 80,964 58,400 22,564 Betting Tax income (3) 12,639 - 12,639 Other rebate (4) 8,325 14,310 (5,985)
Comment (1) The settlement of a contract dispute in 2018 was a one-off increase under this heading. The continued transition from retail to mobile platforms will see a reduction in unclaimed ticket revenue.
(2) WA Racefields income increased from prior financial year primarily due to the benefits of a rate rise on 1 August 2018.
(3) Subsequent to the enactment of the Betting Tax Assessment Act 2018 on 1 January 2019 30% of the tax collected is remitted to RWWA to support the racing industry.
(4) On the introduction of the Betting Tax Assessment Act 2018 on 1 January 2019 the reimbursement of GST ceased.
95 96 97 Performance Management Framework
RelationshipPerformanc eTo M Governmentanagement GoalsFramework Relationship To Government Goals
Results-Based Service Delivery Greater focus on achieving results in key service delivery areas for the benefit of all Western Australians
Desired Outcomes Services Provided Effectiveness Indicators Efficiency Indicators Margin per employee Provision of a betting system which is efficient, reliable, Primary Betting System availability maintainable and capable To provide an efficient, competitive and responsible wagering service for Western Australia Staff (FTE) Profit per employee Provision of services to support wagering Return on Assets (operating profit as a percentage of Number of bets processed total assets) Distribution to Industry Margin
Grants administration, evaluation and distribution To achieve an optimum level of funding to the racing Grants to industry (RWWA funded) Operating Profit (excluding the profit/loss from sale of industry and sports Administration of industry distribution to the clubs assets) before distribution to codes
Grants to industry (State Government funded) Maintain the integrity of the Western Australian racing % of Winners Swabbed / Returned Negative industry To efficiently administer, and to provide effective Guarantee the ongoing welfare and sustainability of the Average number of starters in Western Australian races Racing and Steward expenses per Western Australian leadership in the development, integrity and welfare of Western Australian racing industry race meeting the racing and wagering industry in Western Australia Provision of racing, stewarding, wagering, financial, Annual growth in TAB Turnover on Western Australian marketing, human resources, IT, strategic and other racing services
RWWA's key performance indicators are aligned to the above government goals i.e. Better Places : A quality environment with liveable and affordable communities and vibrant regions.
RWWA's key performance indicators are also reported in the Financials section of this Annual Report.
Results with significant variances of 10% or more compared to the target or to prior year's results have been explained in detail.
Key Performance Indicators For the year ended 31 July 2019
Key Performance Indicators For the year ended 31 July 2019
Outcome: To provide an efficient, competitive and responsible betting service for Western Australia.
2019 2019 2018 2017 2016 Effectiveness Indicators Description Actual Target Actual Actual Actual Result
Primary Betting System The availability of the betting system is paramount % 99.71 99.96 99.98 99.99 99.99 The availability of the betting system during the availability to the TAB's ability to generate revenue. The high year is above RWWA's target and comparable with availability target reflects the importance RWWA prior year ratios. places on this. A service that is reliable is necessary for the TAB to attract and retain customers.
Staff (FTE) With staff employee benefits expense being one of No. 368 370 374 366 366 The number of FTE at the end of 2018/19 was the largest cost categories at RWWA, managing the slightly lower than target and prior year. FTE levels is an important part of ensuring an efficient competitive business.
Number of Bets Processed The number of bets processed is an indicator of the 000's 214,714 222,193 214,790 202,346 197,954 The number of bets for 2019 shows a slight TAB's competitiveness in the wagering and decrease of 3.4% on target and is comparable with gambling marketplace. prior year even though the 2018 actual results include an additional week. An extra week of turnover is required to be included every seventh year to realign with the financial reporting calendar.
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on Report Business Disclosures and and Disclosures 99 Key Performance Indicators For the year ended 31 July 2019
Key Performance Indicators For the year ended 31 July 2019 Key Performance Indicators OForutc theome year: ended 31 TJulyo pr o2019vide an efficient, competitive and responsible betting service for Western Australia.
2020191 9 2021091 9 2021081 8 2021071 7 2021061 6 Effffeicciteivnecnye Isnsd iIcnadtiocarstors DDeessccrripipttioionn AActcutaulal TaTragregtet AcAtcutaulal AcAtcutaulal AcAtcutaulal ReRseusltult
Primary* Margin Betting per employee System The Margin availability per employee of the betting is a measure system of is theparamount $000% 99.71830 99.96 99.98 860 99.99 860 99.99 902 The Margin availability per employee of the betting is down system on priorduring year. the The availability tocompetitiveness the TAB's ability of to the generate business. revenue. The high yeardecrease is above in RWWA's margin istarget due andto a comparabledecrease in turnoverwith availability target reflects the importance RWWA priorand year a reduced ratios. sports margin. Last financial year places on this. A service that is reliable is necessary included one extra week of turnover necessitated for the TAB to attract and retain customers. by the financial calendar. Every seventh year an extra week is required to realign with the financial reporting calendar. Staff (FTE) With staff employee benefits expense being one of No. 368 370 374 366 366 The number of FTE at the end of 2018/19 was the largest cost categories at RWWA, managing the slightly lower than target and prior year. FTE levels is an important part of ensuring an efficient competitive business. * Profit per employee Profit per employee, like margin per employee, is a $000 386 367 365 360 Profit per employee is up on prior years due to measure of the efficiency of the business in continued cost control. Profit excludes the Number of Bets Processed Thedelivering number wagering of bets processed revenue and is an also indicator providing of the 000's 214,714 222,193 214,790 202,346 197,954 Theprofit/loss number offrom bets sale for of2019 assets shows and a distribution slight to TAB'sracing competitiveness and integrity services in the wageringto the industry. and decreasecodes. of 3.4% on target and is comparable with gambling marketplace. prior year even though the 2018 actual results include an additional week. An extra week of turnover is required to be included every seventh Return on assets (Operating Return on assets (ROA) is a widely accepted % 86.1 90.1 81.0 80.9 77.2yearROA to realignis broadly with consistent the financial with reporting target and calendar. up on last profit as a percentage of total indicator of the efficiency in the use of assets. year due to a reduction in deficit. Operating Profit assets) excludes the profit/loss from sale of assets and distribution to codes.
* Targets have not been disclosed due to commercial sensitivity.
Key Performance Indicators ForKey the Pe ryearform endedance I n31di cJulyato r2019s For the year ended 31 July 2019
Outcome: To achieve optimum level of funding to the racing industry and for sports.
2019 2019 2018 2017 2016 Effectiveness Indicators Description Actual Target Actual Actual Actual Result
Distribution to Industry RWWA's primary purpose is to provide a sustainable $000 145,203 143,986 146,541 138,895 140,157 Current year actual result is slightly higher than future for the West Australian racing industry, target. achieved by maintaining the optimum level of funding for the racing industry.
% Change on prior (0.9) (0.6) 5.5 (0.9) 7.3 year
Grants to Industry (RWWA Grants to industry are essential to provide the safest $000 4,254 2,731 4,547 5,821 9,112 Grants to industry were above target due to Funded) possible racing environment and ensure the additional grants paid during the year. The main integrity of the racing product. grant being to Perth Racing - Ascot Super Screen.
Grants to Industry (WA $000 717 742 1,270 1,923 1,284 The results were consistent with target and a Government Funded) reduction on prior years as approved funds are almost expended.
2019 2019 2018 2017 2016 Efficiency Indicators Description Actual Target Actual Actual Actual Result
* Margin Margin is an important indicator of the capacity of $000 305,581 321,514 314,694 330,169 The decrease in margin is due to a decrease in RWWA to fund the racing industry and sports. turnover and a reduced sports margin. Last financial year included one extra week of turnover necessitated by the financial calendar. Every seventh year an extra week is required to realign with the financial reporting calendar.
* Operating Profit excluding Operating Profit excluding the profit/loss from sale $000 141,916 137,410 133,636 131,815 Operating profit is higher than last year due to the profit/loss from sale of of assets before distribution to codes highlights the continued cost control. assets before distribution to amount of revenue that has been generated for codes. distribution to the racing clubs.
* Targets have not been disclosed due to commercial sensitivity.
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on Report Business Disclosures and and Disclosures 101 Key Performance Indicators For the year ended 31 July 2019
Key Performance Indicators For the year ended 31 July 2019
Outcome: To efficiently administer, and to provide effective leadership in the development, integrity and welfare of the racing and wagering industry in Western Australia. 2019 2019 2018 2017 2016 Effectiveness Indicators Description Actual Target Actual Actual Actual Result
* % of Winners Swabbed / A key component in maintaining the integrity of the Thoroughbreds % 99.3 99.2 99.9 99.7 Returned Negative racing industry is an efficient and effective drug testing regime and the "% of winners swabbed / Harness % 99.4 99.0 99.9 99.8 The results are consistent with previous years. returned negative" is a key indicator of the drug testing regime impact on the industry. Greyhounds % 99.8 99.4 100.0 100.0
* Average number of starters The average number of starters in WA races is an Thoroughbreds % 9.8 9.7 10.4 10.4 in WA Races (excluding non- indicator of a healthy population of animals TAB Meetings) available for racing in WA. Harness % 9.6 9.8 9.9 9.5 The results are consistent with previous years.
Greyhounds % 7.4 7.3 7.6 7.6
* Annual Growth in TAB The TAB accepts bets on racing and sports product % (8.6) (0.9) (6.3) (6.9) The reduction in TAB turnover on WA product for Turnover on WA racing from WA, the Eastern States, and International 2018/19 was expected in light of the continued Jurisdictions. The growth in TAB turnover on WA economic climate in WA. Last financial year Racing is an indicator that the WA product is seen included one extra week of turnover necessitated as an attractive proposition, demonstrating a quality by the financial calendar. Every seventh year an product, with high levels of integrity. extra week is required to realign with the financial reporting calendar. Harness and Greyhound decline in WA is consistent with reduction in Harness and Greyhound Australia wide.
* Targets have not been disclosed due to commercial sensitivity.
2019 2019 2018 2017 2016 Efficiency Indicators Description Actual Target Actual Actual Actual Result
Racing and Steward expenses The racing and stewarding functions performed by $000 29.60 31.30 28.20 22.20 23.50 The results are consistent with target and prior per WA race meeting RWWA are paramount to both the development % Change on prior 4.83 10.88 26.99 (5.44) 11.42 year. and integrity of the racing industry. In delivering year these functions, RWWA ensures that the cost of delivery is kept under control, and the cost per meeting is an important indicator of how well RWWA is at controlling the cost of delivery. Image: Western AustralianHarnessDriversChrisVoak andJocelynYoung Other FinancialDisclosures Capital works inprogress duringFY2019: Capital Works RWWA hasdiscretion overpricingfor goodsandservicesrendered. Pricing Policies No Ministerialdirectives were received duringthefinancialyear. Ministerial Directives Support Infrastructure Wagering Infrastructure Racing Infrastructure Project Name Expected Year ofCompletion 19/20 19/20 19/20 $000 Expected CosttoComplete 1,084 $000 797 192 Expected Total CostofProject 21,000 $000 2,404 3,715
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on Report Business Disclosures and and Disclosures Annual Report 2019Annual Report Racing and Wagering Western Australia Other Financial Disclosures Other Financial Disclosures
Contracts with Senior Officers Unauthorised Use of Credit Cards
At the date of reporting, other than contracts of Officers of RWWA hold corporate credit cards where their functions employment or directorship appointment, no warrant usage of this facility. Despite each cardholder being senior officers (directors and executives) or firms reminded of their obligations under RWWA’s credit card policy, of which senior officers are members or entities 13 employees inadvertently utilised their corporate credit card for in which senior officers have substantial interests personal use. One matter was referred for disciplinary action. The 1 had any interests in existing or proposed contracts other 12 matters were not referred for disciplinary action as the Chief Overview Business with RWWA. However, it is noted that some senior Finance Officer noted prompt advice and settlement of the personal officers own (in full and/or part) racehorses and/or use amount and, that the nature of the expenditure was immaterial greyhounds that participate in racing within Western and characteristic of an honest mistake. Australia. 2019 $ Insurance Premiums Paid to Aggregate amount of personal use expenditure for the 2 1,845 Operations on Report Indemnify Members of The reporting period Board Aggregate amount of personal use expenditure settled by An insurance policy is held to indemnify members of 240 the due date (within 5 working days) the Board against any liability incurred under sections Employee Profile Industrial Relations Aggregate amount of personal use expenditure settled 13 or 14 of the Statutory Corporations (Liabilities of 539 after the period (after 5 working days) As at the end of the reporting period the number of people Within the reporting period the RWWA TAB Radio Agreement Directors) Act 1996. The amount of the insurance Aggregate amount of personal use expenditure outstand- 3 employed at RWWA was 490, down from 504 in FY2018. The 2015 and the RWWA General Staff Agreement 2015 were in premium paid for 2019 was $16,943. 1,015 Legal Compliance Disclosures and ing at balance date decrease is attributable to an organisation-wide restructure operation and both of these agreements had nominal expiry that occurred within this reporting period. dates in August 2018. The RWWA TAB Radio Agreement 2015 continued to operate with an administrative salary increase Racing Industry Safety, Health and applied in line with the Western Australian Government State Injury Management Wages Policy, and a replacement for the RWWA General Staff Agreement 2015 was negotiated, culminating in the drafting Throughout FY2019, RWWA has continued to support the of the RWWA General Staff Agreement 2019, accepted by all Western Australian racing industry within the occupational employees in March 2019. health and safety space with regular communication, safety alerts, publications, training, audits and inspections.
The FY2020 will see Worksafe WA implementing changes to the Occupational Safety and Health Act 1984. With new occupational health and safety legislation will necessitat increased support from RWWA to ensure all legal obligations are met and a proactive approach to safety remains.
Full Time Equivalent (FTE)*
Employee Profile FY2018 FY2019
Full Time 240 244
Part Time 33 30
Casuals 62 50
Maximum-Term Contracts 57 44 Image: WA Fashions on the Field State Final at Ascot Racecourse Total 392 368
103 104 Image: Perth Cup at Ascot Racecourse Governance Disclosures 2019Annual Report Racing and Wagering Western Australia
RWWA’s Corporate Governance • Monitor performance: monitor the performance of the Principles organisation and management in achieving its goals; • Financial performance: oversee the allocation of the RWWA’s Board strongly supports the principles of corporate organisation’s finances and resources; governance and is committed to maintaining the highest • Risk management: understand the major risks involved in standards within the organisation. This is particularly important the organisation’s operations; given that RWWA has to balance commercial decisions with • Relationship with the Minister, regulators and other 1 Overview Overview Business the welfare and integrity of the racing industry within a heavily key stakeholders: create a regular flow of information regulated environment. This is to ensure that RWWA and the to and from the Board, public, employees and industry racing industry remain viable and sustainable into the future. stakeholders to contribute to the marketing and maintenance of RWWA’s good reputation; and Board Powers, Structure, Composition and • Social responsibility: consider the social, environmental, Membership financial and ethical impact on RWWA’s stakeholders and The management of the business and affairs of RWWA is the community when making decisions. 2 under the direction of the RWWA Board. Racing and Wagering Operations on Report Western Australia Act 2003 gives RWWA broad powers in Regulatory Disclosure and Stakeholders relation to the management of its affairs and also in the Communications management and regulation of the Western Australian racing A board member who has a notifiable interest in matters industry. involving RWWA must conform to the following: • disclose this interest to the Board; 3 Whilst the Gaming and Wagering Commission of Western • not vote on the matter; and Legal Compliance Disclosures and Australia regulates RWWA’s commercial wagering activities, • must not be present while the matter or resolution is RWWA’s Board is not subject to government direction. Part being considered at the meeting. 2, Division 2 of the Racing and Wagering Western Australia Act 2003 describes how the Board is to be structured, its However, if the Board has passed a resolution that specifies composition and membership. the Board Member, the interest and the matter, and the other board members voting for the resolution are satisfied, The Board comprises: the interest should not disqualify the board member from • One chair appointed by the Minister responsible for considering or voting on the matter (Sections 18 and 19, RWWA; Schedule 1, clause 8(1) of the Racing and Wagering Western • Four members selected for their expertise in Australia Act 2003). management, finance, business, commerce or information technology, one of which has knowledge of RWWA complies with the requirements of disclosure as and experience in regional development; and required by Racing and Wagering Western Australia Act 2003, • Three members representing each of the racing codes, Financial Management Act 2006 and applicable Australian comprising one representative from each code. Accounting Standards.
Boardroom Conduct and Relationships RWWA maintains regular communications with its The roles and delegated authorities of the Board, Board stakeholders through: Committees, Chair, Chief Executive Officer and Executive • Racing Industry Consultative Groups; Members are clearly defined and understood within RWWA. • TAB Agents Advisory Council; • Meetings with the Minister responsible for RWWA; and Key roles of the Board include: • Communications with employees. • Strategy: set goals and objectives for the organisation and the racing industry and provide strategic direction and planning; • Policies and procedures: determine the organisation’s and industry’s policies and priorities; • Leadership and selection: appoint the Chief Executive Officer;
105 106 Annual Report 2019Annual Report Racing and Wagering Western Australia Governance Disclosures Other Legal Requirements
Risk Management and Compliance granted wide-ranging powers in order for them to properly Other Wagering Costs The Board, through its Audit and Risk Committee (ARC), control and regulate their respective racing codes. It is the assesses and monitors the adequacy and effectiveness stewards’ task to ensure that the Rules of Racing are adhered In compliance with section 175ZE of the Electoral Act 1907, RWWA reports that it incurred the following expenditure in relation to of RWWA’s risk management and compliance processes. to and to investigate, determine and where necessary penalise account management, market research, content, direct communications and advertising. The ARC meets four times a year, together with senior any breaches of the rules. The stewards are responsible for the management. conduct of race meetings throughout the State in addition to Total expenditure for FY2019 was $17.5M and was incurred as follows: the conduct of all persons registered in varying capacities in 1 Overview Overview Business RWWA’s risk management framework is established in the various racing codes. accordance with the risk management standard AS/ Supplier $000 NZS ISO 31000:2009 Risk management – principles and Ethical Decision Making Advertising Agencies guidelines. A designated risk manager supports the effective RWWA considers the social, environmental, financial and implementation and application of the framework across the ethical impact on RWWA’s stakeholders and the community Brand Agency Production/ Operations 1,030 organisation. The organisation’s internal audit function, which when making decisions. RWWA has developed a Responsible Brand Agency Media Expenditure 5,330 reports to the ARC, provides assurance over the management Wagering Policy to guide board members, employees and TAB 2 of key organisational operational and strategic risks through agents in the responsible provision of wagering services and Signifi Digital Media 414 Operations on Report implementation of the risk-based internal audit plan. The to ensure that RWWA provides customers with the highest Direct Booked Media plan is compiled with reference to the organisation’s key standard of customer care. risks against which other forms of assurance are mapped to Croc Media 319 ensure targeted and effective internal audit reviews. RWWA’s Strategy, Planning and Monitoring Redwave Media 139 compliance and legal team is responsible for embedding To outline RWWA’s objectives, function, main undertakings Western Sports Media (Sport FM) 33 3 and maturing the organisation’s approach to legislative and performance targets, an annual Statement of Corporate Legal Compliance Disclosures and compliance, including anti-money laundering and counter Intent and a Strategic Development Plan (longer term plan) are The West Australian (TABform) 450 -terrorism financing obligations. The team reports to the ARC developed which documents the plans, direction and vision Sky Channel (not media) 9,295 on legislative compliance on a quarterly basis. for RWWA and the Racing Industry. The Board monitors and evaluates the progress of implementing the Strategic and Market Research Management signs an annual representation letter providing Business Plans of RWWA. Painted Dog 206 the Board with assurance that its operations, including Social & Content financial reports, are based on sound systems of governance, Encouraged Enhanced Performance risk management, legislative compliance and internal control. Annual budgets and business plans are developed to meet Facebook 192 the targets set in the Statement of Corporate Intent and the Twitter 4 Integrity Strategic Development Plan and these are linked into RWWA’s The maintenance of the integrity and fairness of the Western Performance Management System. Direct Mail Australian racing industry is paramount to ensuring the Engage Digital 34 confidence and support of the public and participants who Sustainability support the industry. In an industry dependent on the public RWWA considers sustainability an important issue, not only Telstra SMS Services - wagering upon the outcome of races, it is imperative that for the organisation but also for the Western Australian racing Mobivate SMS 56 racing is conducted on a level playing field and that the industry. RWWA believes that sustainability concentrates Mobivate Blackbook 64 outcome of these races is determined through honest means. on providing a sustainable future; focusing on economic, environmental and social elements. Telstra Blackbook 13 The importance of ensuring the confidence of participants and Total 17,579 supporters is recognised by the Racing and Wagering Western Key initiatives include: Australia Act 2003, by providing an Integrity Assurance • Responsible Wagering Program and Code of Conduct; Committee responsible for the primary oversight of those • Equity and diversity within the workplace; and aspects of RWWA’s functions that relate to stewards, drug • Ensuring the financial viability of the Western Australia Record Keeping testing and control, licensing and registration, handicapping, racing industry through financial practices. In accordance with Section 61 of State Records Act 2000, RWWA provides the following information in support of compliance racing appeals and the Rules of Racing. Critical to the with the State Records Commission’s Standard 2 (Principle 6). To maintain accurate records, a schedule is in place to conduct regulation, control and supervision of racing are the RWWA RWWA is committed to improving its sustainability practices testing of records integrity on an ongoing basis. This schedule is used for checks and cross referencing of records held at offsite stewards. and principles. storage and on RWWA’s digital platforms.
By virtue of the relevant Rules of Racing, the stewards are
107 108 Annual Report 2019Annual Report Racing and Wagering Western Australia Government Policy Requirements
Occupational Safety and Health
As part of its employee experience focus, RWWA values safety highly and as such, the RWWA board and Executive team continue to ensure a proactive and positive approach to safety within the organisation. This includes the pre-emptive management of workplace safety, health and wellbeing throughout all levels of the organisation. This is done by setting measurable key performance indicators and continuous improvement of the Infrastructure, procedures and training within the workplace.
FY2020 will see a change to occupational health and safety legislation designed to modernise and strengthen safety law in Western Australia. RWWA will ensure its safety management system complies with the new changes to the legislation, continue to maintain compliance with the Workers Compensation and Injury Management Act 1981, as well as providing a proactive approach to risks at all RWWA divisions and occupational health and safety support to racing clubs.
Insurance and Lost Time Injury Table
Results Results Results 2015-16(1) 2016-17 2017-18(1) Comments Measure Targets Base Year Prior Year Current Towards Targets Reporting Year
Number of fatalities 0 0 0 0 Target Achieved
Lost time injury and/or disease 0 or 10% reduction 0.79 0.0 0.54 Target Achieved incidence rate in incidence rate
Lost time injury and/or disease 0 or 10% reduction Target not met. 2 0.26 0 0.50 severity rate in severity rate LTI claims in 18/19
Percentage of injured workers Not Actual result to be Target not met. 2 returned to work (I) within 13 100% 50% Applicable stated LTI claims in 18/19. weeks
Percentage of injured workers Not Greater than or returned to work (ii) within 26 100% 100% Target Achieved Applicable equal to 80% weeks
Percentage of managers trained in occupational safety, Greater than or health and injury management 81% 61.76% 68% Target not met equal to 80% responsibilities, including refresher training within 3 years
Note (1) The performance reporting examines a three year trend and as such the comparison base year is to be two years prior to the current reporting year (i.e. current year is FY2019 and comparison year is FY2017).
109 Image: Pinjarra Harness Racing Club110 rwwa.com.au
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