Housing Industry Association Limited includes Concise Financial Report HIA for the year ended 31 December 2016

2 016annual report HIA -- the voice of the industry

HIA’S BOARD OF DIRECTORS

Back row (L–R): Tim Olive, Chief Executive – Business Solutions; James Graham, Director; Stuart Wilson, Past President; Graham Wolfe, Deputy Managing Director; Glenn Simpson, General Counsel; Simon Norris, Director; Brian O’Donnell, Director; Alwyn Even, Director; David Linaker, Director. Front row (L–R): Terry Jenkins, Treasurer; Pino Monaco, Vice President; Ross Lang, President; Shane Goodwin, Managing Director; Ron Dwyer, Immediate Past President. Ian Hazan filled the casual vacancy left by the sad passing of Brian O’Donnell during the year. During the year, more than 230,000 Policy Imperatives that outlined the key Report to Members new homes commenced nationally. areas for government action and policy A record number, exceeding the reform. Housing affordability became previous high of 225,000 during the dominant political issue for the 2015, and eclipsing the decade election, enabling the Association to average by almost 65,000 homes. elevate land and housing supply, 2 016 Incredibly, these new homes will planning delays and taxes on new house almost 500,000 Australians homes as the priority challenges. and their families. But the political and public debate However, building activity wasn’t was not all one way, as HIA lobbied uniform across the country. Members stridently against proposals to in many regions watched on as NSW, change negative gearing and capital Victoria, and to a lesser extent, gains tax arrangements for residential South-Eastern Queensland, property investors. The strength and ‘boomed’. In NSW, commencements depth of the Association’s research were more than double the previous base, economic analysis and policy decade average, while they were up advocacy ensured a positive by more than 30 per cent in Victoria, outcome for members and for the Queensland and the ACT. But at the industry more broadly. other end of the cycle, activity in It was also a successful year for Western Australia, Tasmania and the HIA’s National Conference at THE 2016 FEDERAL ELECTION Northern Territory contracted by Hamilton Island, with the HIA–CSR more than 20 per cent annually, and Australian Housing Awards sold out IN SEPTEMBER PROVIDED THE between 12 per cent and 20 per cent well before members began arriving BACKDROP FOR A NATIONAL against their respective decade at the idyllic island setting. My CAMPAIGN TO ELEVATE averages. South Australia maintained congratulations again go to the AUSTRALIA’S HOUSING momentum at its decade average. winners and finalists. AFFORDABILITY CHALLENGES The record level of building activity During the year we recognised Jill INTO THE FEDERAL SPOTLIGHT nationally, however, placed Lee, the recipient of the 2016 Sir considerable pressure on the Phillip Lynch Award of Excellence, for industry, on our skilled workforce and her enormous individual contributions on our building product supply to our industry. chains. The evolving mix of new On a sad note, the Association lost housing types also challenged the a number of champions. Regrettably industry as predicted, with new multi- Brian O’Donnell, former Victorian residential dwelling commencements President, National Director and Life briefly overtaking detached homes. Member, Alec Fuller, former Victorian Demand for HIA services was and National President, Life Member understandably high during 2016. and inaugural recipient of the Sir The Association received just on Phillip Lynch Award (1981) and Don 6,000 member calls on average per Kennett, former South Australian and week, delivered training and National President and Life Member nationally-accredited building passed away during 2016. Our qualifications to over 5,500 members thoughts are with their families. and their staff across 1,100 courses, On behalf of HIA’s National Board of and provided more than 25,000 hours Directors, my sincere thanks go to all of professional and business support the members who volunteer their time, and advice to members each week. industry knowledge and experience to 2016 was also a strong year for the the Association’s committees and Association’s lobbying achievements. forums. Their invaluable contributions The 2016 Federal Election in provide the strength, credibility and September provided the backdrop for foundation upon which the a national campaign to elevate Association is founded – for which Australia’s housing affordability they should be proud. challenges into the federal spotlight. HIA’s federal election platform, Ross Lang Housing Australians, presented 40 National President

HIA ANNUAL REPORT 2016 | i The operating surplus for 2016 was 109 apprenticeships were National $750,888 compared to a surplus of successfully completed under the HIA $210,637 in 2015. The year saw Group Apprenticeship scheme, which Treasurer’s Report another record in housing starts assisted in the Association’s following on from 2015, with dwelling endeavours to address skill shortages starts rising by 1.1 per cent during in the building trades. During the year, 2016 to reach slightly more than HIA concluded running the federal 230,000 homes. Detached house government funded Apprentice to commencements rose by 0.9 per cent Business (AtoB) Program, under which to 116,000 during the year, while 100 tradespeople undertook small multi-unit starts were up a little more business training and business strongly as well (1.3 per cent), mentoring. reaching 112,000. On the renovations The Home Inspirations Centres in side, the volume of activity is Canberra and the Hunter region estimated to have increased by continued to be well supported by 2.7 per cent to $33.1 billion. industry and consumers, with an Total revenue for the group in increase in space taken up in both 2016 was $68.6 million, representing centres compared with the previous HIA CONTINUES TO MAINTAIN A an increase of 1.7 per cent from the year. HIA Vehicles, the business arm VERY STRONG BALANCE SHEET WITH previous year. Revenue that provides support to members with OVER $65.0 MILLION IN NET ASSETS, improvement was experienced in the their vehicle requirements, saw growth AND FIVE DOLLARS OF ASSET FOR business units of HIA Apprentices, year-on-year; this was mostly through EVERY DOLLAR OF LIABILITY Events, HIA Vehicles, Membership, increase in sales of Toyota vehicles. Economics, Home Inspiration The Australian Construction Insights Centres and Affinity Programs; (ACI) – the commercial arm for HIA however, declines were seen in Economics – also saw growth through Apprenticeship Grants, Australian acquisition of research work from Apprenticeship Centre, Insurance, industry-related bodies. However, the Property, Stationery, Publications continuous funding reductions for and Training Delivery. training and apprenticeships at both The financial statements show net federal and state levels negatively assets at the end of 2016 of impacted our training business. $65.2 million, up from $64.4 million HIA’s loan balance at the end of reported in 2015. Total assets 2016 was $500,000. HIA continues to increased by $776,000 and total maintain a very strong balance sheet liabilities increased by $25,000. The with over $65.0 million in net assets, increase in total assets was mainly and five dollars of asset for every attributed to improvement in cash dollar of liability. balance and the information technology systems redevelopment Terry Jenkins work undertaken during the year. Treasurer

ii | HIA ANNUAL REPORT 2016 9 14 11 12 10 13

National President’s report i HIA’s Major events National Treasurer’s report ii 2016 HIA–CSR Australian contents HIA – working hard for members 2 Housing Awards 12 2016 HIA National Conference 13 HIA – the voice of the industry HIA Building Better Cities Summit 14 Housing Initiatives 4 2016 HIA Australian Economic Overview 4 GreenSmart Awards 14 Economic Research 5 Industry Issues HIA’s strong regional presence – Building 5 New South Wales 16 – Planning and environment 5 Hunter 17 – Workplace relations 6 Queensland 18 – Skills and training 7 North Queensland 19 – OH&S 7 ACT & Southern NSW 20 HIA – help, information, advice Victoria 21 Tasmania 22 All About Trust 8 Western Australia 23 HIA Manifesto 8 South Australia 24 HIA Economics Group 9 Northern Territory 25 HIA Safety 9 Home Inspirations 9 HIA’s committee structure 26 Kitchens & Bathrooms 10 Business Partner Network 10 HIA staff 27 HIA Apprentices 11 NT Skills Centre 11 Concise Financial Report for GreenSmart 11 year ended 31 December 2016 31

HIA ANNUAL REPORT 2016 | 1 working hard for members

Helping members Making the industry every day in their business a better place

£ Every week HIA responds to 6000 calls from £ Employed, supported and skilled 650 young members needing expert help, information and advice Australians through HIA Apprentices

£ Every year HIA provides 25,000 hours of £ Engaged more than 800 member businesses professional business support and advice to members to train HIA apprentices

£ In 2016 HIA delivered 1100 courses throughout £ Promoted apprentice retention and completion Australia, training more than 5500 members and through 2500 pastoral care visits their staff, and awarding thousands of nationally Worked with beyondblue to generate awareness accredited building qualifications £ of mental health issues in our industry £ HIA’s national team of safety experts are on hand Supported members through business advisory to help manage workplace safety £ initiatives, including WHS management, workplace £ Every year HIA, through its staff and Call Centre, advisory and business development programs. makes 60,000 phone calls to members. Delivering tangible Promoting the industry membership benefits

£ 100,000 potential consumers visited HIA Home £ HIA Vehicles – access to a range of vehicle services Inspiration Centres £ HIA Health Plan – save money on private health cover £ More than 200,000 attended an annual HIA through Bupa Home Show in a capital city £ Contracts Online – access to HIA’s selection of online £ 2,300,000 individual page views were recorded contracts and specifications on HIA websites (hia.com.au and housinglocal.com.au) £ HIA Finance – access to financial products and services £ HIA Australian Housing Awards program attracted £ HR Docs – online access to a suite of customisable, 3200 entries from the states, territories and regions legally compliant HR documents £ Nearly 10,000 HIA members, families and staff £ Fuel Discounts – access to fuel discounts through attended Housing Awards events in 2016. Caltex

£ Toyota Fleet – access to Toyota Gold Fleet discounts £ Qantas Club – exclusive access to HIA’s Qantas Club corporate scheme.

2 | HIA ANNUAL REPORT 2016 HIA is the only Australia–wide member organisation that works specifically for the residential building industry. Every day HIA directly helps thousands of members in their businesses and works hard to ensure our industry has the best possible operating environment. Along the way, HIA “ tackles all the important political and regulatory issues, protecting members’ interests at a national, state and local level. The following is a sample of what the Association has been doing over the past 12 months.

Shane Goodwin HIA Managing Director ”

Fighting for the industry Saving members

£ Launched HIA’s federal election housing campaign – Housing real dollars Australians – through HIA’s 40 policy imperatives, with a focus on housing supply and housing affordability £ Putting members into 4500 new vehicles, £ Gave evidence at parliamentary inquiries on tax deductibility, saving a combined $11,500,000 security of payment, the ABCC, housing affordability and £ Saving members hundreds of dollars non-conforming building products per year on the Bupa/HIA Health Plan £ Participated in more than 70 Commonwealth, State and Territory £ Saving money and reducing compliance Government reviews and reform proposals impacting the residential costs for more than 1700 members building industry and member businesses, including planning, building, through HIA fuel cards industrial relations, taxation, affordability, building products, infrastructure and value capture £ Saving members’ money through other affinity programs, such as car hire, safety products, Appeared before the Fair Work Commission advocating changes to £ financing, insurance products and more. industry awards that best reflect the residential building industry

£ Produced 85 economic reports, publications and industry specific surveys covering the state of the industry £ Campaigned regionally and nationally against developer levies, urban Keeping members development boundaries and land zoning delays

£ Presented a united industry voice through 280 media releases on up-to-date housing affordability, taxes and levies on new housing, economic activity and government initiatives and proposals £ Webinars for 9000 members £ 1000 interviews completed for television, radio and newspapers £ Released hundreds of member £ 5000 online media mentions – regionally, nationally and information sheets on technical, legal internationally and compliance matters

£ Elevated campaigns against proposed changes to negative gearing £ Produced 45 issues of Housing and and capital gains tax, higher charges for foreign investors buying Building News magazines new residential property, and new inclusionary zoning levies £ Informed members on local, regional and £ Developed industry policy positions through grassroots member national issues through regular emails committees, engaging 1000 volunteer members and eNews editions. £ Held the 7th Building Better Cities Summit, focusing attention on the challenges for industry and governments in delivering housing towards 2030

£ Advocated the industry’s position in more than 100 technical and policy committees, councils and forums, including the National “Individual support, local Construction Code, Australian Standards, and Planning, Building and Skills Advisory Committees. knowledge, national strength”

HIA ANNUAL REPORT 2016 | 3 the industry’s voice

politics. It was also the title of HIA’s issues such as foreign investment, Housing Initiatives federal election platform, which set security of payment, taxation reform, out 40 Policy Imperatives to address non-conforming building products, National dwelling commencements the bottlenecks and inefficiencies unfair contract terms, infrastructure grew to a record level during 2016, that regulations and taxation inflict on and regulatory impediments to house prices in Sydney and Melbourne the residential building industry. housing supply. grew at double digit rates and, despite Public, media and political attention record low interest rates, many on housing supply, housing affordability commentators described Australia’s and taxation on residential construction Economic Overview housing affordability challenge as a mounted as the election approached. national crisis. The challenges however HIA’s Housing Australians provided the The contribution of the residential were not uniform across the country. policy framework and impetus for an building industry to economic growth Leading into the September 2016 incoming Commonwealth was a key feature of the Australian Federal Election, housing Australians Government to capitalise on the economy in 2016. Residential was elevated to the central residential building industry’s capacity building lived up to the expectations campaigning theme on both sides of to enhance and increase national that it would play a significant role in economic growth, employment, our national economic performance housing supply and affordability. as the inevitable conclusion of the FEDERAL ELECTION Modelling released by HIA on the mining investment boom took its toll. 2016 impact of changes to negative gearing Residential building activity reached and capital gains tax on residential an all-time record level during the investment properties helped shape year, helping the broader economy to the public debate around investors, almost achieve an output growth concluding ultimately with the elected trend and ease unemployment. Coalition Government retaining the With headline rates of residential existing measures. price growth in Melbourne and During the year HIA provided Sydney, ongoing discourse around HOUSING policy responses to critical industry residential taxes (including stamp AUSTRALIANS: duty, infrastructure levies and negative gearing) and the rapid HIA FEDERAL ELECTION POLICY IMPERATIVES growth in multi-residential building activity, housing was the central HOUSING INDUSTRY ASSOCIATION theme for economic and political debate in the lead up to the Federal Election, and beyond. However, activity was not uniform, and some regions did not benefit from record residential building conditions. Western Australia and the northern parts of Queensland both continued to suffer from the mining investment hangover during 2016. The important renovations sector of the industry had moderate growth during the year, after a lengthy post-GFC contraction.

4 | HIA ANNUAL REPORT 2016 With so much national focus on rates reduced twice in 2016. Economic Research housing during the year, HIA’s However, by the end of the year contributions helped shape the concerns about bubbles had debate. The attention on issues moderated. Throughout these relating to housing affordability debates HIA Economics was able to intensified during the Federal Election draw heavily on its significant body of campaign, and HIA’s analysis of the research and analysis. adverse impact of removing negative HIA’s research over many years gearing on rental investments, and has identified the need to address lowering the capital gains tax discount, housing supply bottlenecks as a key was widely referenced. long-term solution to housing HIA’s contributions to other housing affordability. Importantly, the related topics, such as rate of supply, imperative of increasing supply has interest rates, so-called ‘price bubbles’ been accepted by the Reserve Bank, and residential financing, brought as governments look towards policy credibility to an often ill-informed outcomes that generate both supply debate. As events transpired, interest and affordability.

Building Western Australian governments Industry Issues about reforms to their legislation. HIA continued to work closely with the HIA’s leadership in identifying the Australian Building Codes Board in problems associated with non- 2016 as it implemented the new three- conforming building products also year cycle for the national building continued. The Commonwealth code, now provided free online. Government and several states Following this move HIA increased agreed to address the issue in early pressure on Standards Australia to 2016, with a program of work identify ways to reduce the cost of continuing into 2017. mandatory standards relied on by the building code. This is expected to remain a key issue for HIA over the Planning and environment next few years. In 2016 HIA’s planning focus returned HIA’s efforts to allow builders to use to the impact of state and local the code without relying on standards government levies, fees, taxes and also progressed with a number of charges on new housing, with the amendments in the 2016 edition of Queensland, New South Wales and the code. Victorian governments undertaking Additionally, HIA’s National Policy reviews of their levy and charging Congress endorsed a blueprint for the arrangements and fees structures. use of private certification in building Planning reform continued to be approvals, and used this as the basis debated in most states and, while few for discussions with the Tasmanian and changes were introduced in 2016, the >

HIA ANNUAL REPORT 2016 | 5 scene was set for major reforms in building materials. A new national 2017 in New South Wales, Tasmania, construction procurement code for Queensland and South Australia. Commonwealth funded projects was Medium density housing and also introduced. The code importantly apartments emerged as a focus, with includes a ban on clauses in enterprise New South Wales, Victoria and agreements that restrict the Western Australia releasing proposals engagement of contractors or enable for design guides and approval reforms industrial interference with productive aimed at streamlining the delivery of work or practices. multi-residential housing. As the ‘4 yearly review’ of the HIA was involved in consultations on ‘modern’ awards continued into its third reforms to national energy efficiency year, HIA also appeared in a number of requirements in the building code, the matters before the Fair Work potential introduction of a voluntary Commission. HIA lodged claims to vary disclosure scheme for the sale of the Onsite Award and the Joinery Award existing homes, and provided support to include Time Off In Lieu of Overtime for several voluntary NSW government (TOIL) and remove the application of programs established to improve Industry Specific Redundancy Schemes consumer awareness about the to the residential building industry. These benefits of efficient home design. claims will be heard in 2017. Improving security of payments was Workplace relations also a key area of discussion throughout 2016, with a number of HIA’s workplace relations policy and regions conducting reviews into their advocacy in 2016 was marked by a various legislative regimes. In double dissolution federal election and December, the Commonwealth the successful return of the building Government announced that a national industry watchdog, the Australian review will take place in 2017. Building and Construction Commission HIA continued to lobby against (ABCC). proposals for flawed and unworkable With two Royal Commissions in the national security of payment laws and past 15 years detailing unlawful mandated subcontractor trusts on all conduct in the commercial building private construction projects (including industry, and almost daily reports of housing and renovation). Under this, industrial intimidation and coercion on builders would need to hold client building sites, the return of the ABCC payments ‘on trust’ for subcontractors delivers on a long-term strategic and and suppliers – in designated bank policy goal for the Association. accounts – before they can access The restored agency’s powers now funds themselves to pay their employees extend to the transport of building and other site overheads. These materials to site, off-site prefabrication proposals would impose additional red and auditing compliance, with tape, extra costs and restriction on cash performance requirements in relation to flow and working capital.

6 | HIA ANNUAL REPORT 2016 Cash flow and security of payment The Commonwealth Government’s the WHS model legislation – a decision are important issues for industry, but new structure for training product advocated and supported by HIA. addressing the problem requires a development, operated by the Victoria also undertook a review of its sensible solution that deals with the Australian Industry and Skills OHS codes of practice and an entire contractual chain, including Committee, was implemented in 2016. independent review of Work Safe’s client payments. HIA was an active participant in the new compliance and enforcement regimes, HIA also contributed to the review of system, while maintaining links with the to which HIA provided detailed the Australian Consumer Law (ACL) former Construction and Property submissions. provisions of the Competition and Services Industry Skills Council (now HIA lobbied the Western Australian Consumer Act 2010. A key issue, Skills Oz), which remains the only fully Government and provided additional identified by HIA, is the complexity for representative industry-controlled body critique in relation to Western members who invariably operate operating in the construction field. Australia’s decision to adopt the model under a number of state-based Residential building and construction WHS laws. The Western Australian regulations specifically benefiting contributes around $130 billion to the Government decided to adopt the homeowners, in addition to any Australian economy in new housing, model WHS laws but with significant overarching provisions of the ACL. The alterations and additions, and residential changes; however, had not finalised rights and obligations under these land development. It provides the details of the laws, their intersecting regulatory regimes are employment for more than one million implementation and the issues raised often duplicated, imposing unnecessary workers. HIA stressed these important by HIA by year’s end. costs and uncertainty upon industry. factors with governments while lobbying South Australia and New South HIA called an end to the unnecessary in support of a training framework that Wales also commenced reviews of and unworkable extra red tape. reflects the skills needs of our industry, their WHS laws during late 2016. Each rather than a system that benefits of these reviews will extend into 2017. training providers. HIA is well positioned to voice the Skills and training views of industry, and will continue to seek reforms and positive outcomes HIA continued to press governments OH&S for effective measures to reverse the for members. decline in apprenticeship HIA continued to advocate and commencements and completions, influence health and safety matters on arguing for the restoration of employer behalf of members through active incentives together with effective representation in health and safety workforce development programs. regulator forums, Standards Australia Action remains urgent. Over the past committees and through submissions four years the number of on government reviews. apprenticeships has dropped from Several states undertook reviews of 446,000 to 286,500 – the lowest for their health and safety laws, with more than a decade. harmonisation of health and safety During 2016, HIA’s lobbying efforts laws continuing to be an active topic in focused on the removal of duplication the states that have not yet adopted and better alignment of the Workplace Health & Safety (WHS) Commonwealth, state and territory Model laws – Victoria and Western apprenticeship activities, and support Australia. Victoria undertook a for an industry-driven, job-facing comprehensive review of its VET system with an up-to-date Occupational Health and Safety training curriculum. Regulations and resolved not to adopt

HIA ANNUAL REPORT 2016 | 7 help information advice

In 2016 HIA launched our new In our rebranding we identified that All About Trust brand line – you’re in good hands. the HIA logo has immense credibility This is all about trust, and reflects and brand recognition in the the professionalism and quality of marketplace and it was for this reason our members. that we decided to keep the HIA logo. HIA members have a proud history Our new HIA brand line is our of building homes for Australians. For promise to you, reflecting your trust in more than 70 years we have been us. Members and consumers can working together to build the best expect to see more of the brand line homes and foundations for every in 2017 and we encourage all Australian, and building trust. members to display it proudly.

HIA Manifesto

In 1945 we came together to house a growing country. OUR HOME IS To build with integrity and to establish the nation’s foundations. OUR FOUNDATION Since then HIA members have helped millions of Australians build their dream home. Their place of self, security and belonging.

Today we are the only national residential building organisation. Working to build the best home and foundation for every Australian. Supporting our members and giving their customers someone to trust.

It’s why we give our industry a united voice; So our members can focus on building better homes. It’s why we keep our members informed; HIA So they can develop world class design and innovative building techniques. BRAND PURPOSE And it’s why we set superior standards for our members; & BRAND LINE So they will always build with integrity. DEVELOPMENT

We do all of this to give Australians a foundation they can depend upon; 2016 Today and tomorrow. It’s not just why we began, it’s why we exist for the future.

WE ARE THE HIA. WE ARE BUILDING THE NATION’S FOUNDATIONS.

HIA brand purpose & brand line development 2016 P5 8 | HIA ANNUAL REPORT 2016 HIA Economics produced a wide range HIA Economics Group of relevant industry and policy publications, including forecasts on residential construction, land availability, labour supply and new homes sales. HIA’s publications also cover specialised areas of the industry such as the important kitchens, bathrooms and renovations’ sectors. Much of the information is sourced and referenced by the media, providing a platform for substantial membership base, ACI is HIA to prosecute its policies and help uniquely placed to undertake practical, shape the public debate. informed and current research into Member businesses also benefited almost any aspect of the residential from tailor-made presentations from HIA building industry. In 2016 ACI produced Economics over the year. The demand major reports on materials used in for these services continues to grow. residential building and construction, HIA’s research arm, Australian and, importantly, was able to evaluate Construction Insights (ACI), grew its the reasons behind members’ choices research client base during the year. of building materials – an invaluable tool With the ability to draw on HIA’s for manufacturers and suppliers.

HIA Safety continued to provide advice Safety management systems were HIA Safety and assistance to the residential tailored around individual businesses, construction industry. Many based on their nature of work, size and companies engaged HIA Safety in workforce. Outsourcing their ongoing 2016 to provide an independent safety compliance to HIA Safety assessment of their safety compliance, allowed members to focus on what both onsite and off-site. they do best, which is building houses.

Anchored by some of Australia’s in home building, renovating, kitchens Home Inspirations leading brands, HIA Home Inspirations and bathrooms. centres in the Hunter region (Mayfield Home Inspirations’ strong promotional West) and the Australian Capital program, including several building and Territory (Fyshwick) attracted in excess renovation shows throughout 2016, of 100,000 visitors and approximately ensured customers regularly visited 100 exhibitors during 2016. the centres. The centres are the largest home Strategically positioned to maximise building and renovating display passing traffic, the centres are open centres of their kind in New South seven days a week and generate genuine Wales and the Australian Capital customers, who are ready to buy, or Territory, showcasing the latest trends planning to build or renovate, for exhibitors.

HIA ANNUAL REPORT 2016 | 9 HIA AUSTRALIAN BATHROOM OF THE YEAR HIA AUSTRALIAN KITCHEN OF THE YEAR 2016: 2016: DREW MOORE CONSTRUCTIONS ULTRASPACE & STEWART HOMES

OUTDOOR KITCHENS Kitchens & Bathrooms Industry reference CHECKLIST

In 2016, the highly anticipated Guide Following a 12-month research to Bathroom Planning & Design was period, whereby feedback was collated released, featuring 300 pages packed from HIA members Australia-wide, the with brilliant images and everything to Outdoor Kitchen Industry Reference do with planning and designing Checklist was also published. Image courtesy of Sublime Architectural Interiors beautiful bathrooms. HIA designers, Spearheaded from reports and award-winners and bathroom inquiries from members, and questions The checklist provides information renovation experts contributed their about environmental exposure to on a number of topics including: expertise, knowledge, guidance and outdoor kitchens, this practical environmental considerations, budget, experience to present this dynamic checklist was developed to help function and design, and product and reference guide to industry. A identify and prevent potential problems material selections, including fixtures, bathroom design webinar series will arising in the wear, performance and fittings, surface materials, appliances complement the release of this sought- potential failure of products not ‘fit for and the importance of manufacturers’ after publication. purpose’ in outdoor environments. warranties.

Business Partner Network

Throughout 2016, HIA continued to current marketing strategies, complete support business partners with a range a draft marketing action plan, and of free business webinars. Topics define marketing and sales goals for included marketing tips and business their businesses. systems through to trends in kitchen The HIA website library was also and bathroom design, and contracts expanded to further support business administration. partners. The update included a range A workshop consisting of three ‘live’ of new small business guides and webinars and one pre-recorded webinar information sheets to help provide was held in May. members with accessible information The workshop provided attendees that assists them to run and grow 2016 BUSINESS PARTNER OF with tips on how to improve their their business. THE YEAR JAY MANGANO

10 | HIA ANNUAL REPORT 2016 With 530 apprentices by year’s end, one quarter of apprentices being HIA Apprentices HIA increased its overall number of hosted by subcontractors who are apprentices by 100. encouraged by builders to take on an The continued activity levels in the apprentice. Often the builder subsidises residential building industry, especially a portion of the apprentice costs. on the eastern sea board, saw the The program promotes a culture of commencement of 340 new loyalty between the builder and trade apprentices. The year also saw the contractors, while delivering a supply successful completion of more than of skilled and industry-trained 100 HIA apprenticeships. tradespeople into the future. 2016 HIA’s builder and manufacturer was the ninth year that this program program continues to grow with almost has operated.

In 2016, HIA’s Darwin Training Centre recognised as a quality trade NT Skills Centre achieved a high level of growth for the training provider of VET programs second consecutive year. and pathways. The year saw the first group of HIA- HIA’s commitment to, and expertise trained apprentice carpenters, and with in, training was acknowledged with further growth throughout 2016, a invitations to judge the Northern second intake was scheduled for 2017. Territory Training Awards, a seat on the With a practical, industry-minded Northern Territory Training Commission focus on vocational education and and involvement in the Commonwealth training – from Certificate I through to Government’s round table discussions Certificate IV – the facility was surrounding VET training.

The HIA GreenSmart program is now in region, and Southern Highlands Building GreenSmart its sixteenth year of encouraging home Design for the Wilson House in Avoca, builders to deliver practical and affordable NSW. GreenSmart houses epitomise environmental solutions to homeowners. GreenSmart principles and showcase the In 2016, GreenSmart training highest commitment to responsible continued to be offered to members, environmental building practices. FEATURING AUSTRALIA’S TOP GREEN HOMES green smart including the new GreenSmart Kitchen The greensmart magazine – and designing for your climate and Bathroom course, which generated quarterly e-newsletter – has grown fresh interest in the program. More alongside the GreenSmart program than 6,000 building professionals have which was born out of HIA’s commitment now attained GreenSmart credentials to securing Australia’s housing future and since the program began in 1999, leading the way in sustainable building helping to make sustainable home practices. The thirteenth edition of the design more accessible to consumers magazine was released online in December than ever before. 2016, featuring GreenSmart award-winning Several homes in 2016 received HIA projects, green products and building GreenSmart House accreditation, methods, energy-saving tips, and other thirteenth edition sustainability the basics award winners 10 tips for the home what is GreenSmart? australia’s top including Williams Designer Homes for related articles for consumers and trades designers + builders the West Wallsend project in the Hunter about building liveable, sustainable cities.

2016 APPRENTICE OF THE YEAR JAKE LAIDLAW

HIA ANNUAL REPORT 2016 | 11 major events

The 2016 HIA–CSR Australian Developments for a breathtaking 2016 HIA--CSR Housing Awards were announced seven-bedroom, six-storey waterfront on Saturday 21 May in front of a home. Judges were impressed with sellout audience on Hamilton Island. the painstaking level of detail and Australian Housing The spectacular evening was the high-quality finishes included in every grand finale of the 2016 HIA room. The project also won the Awards National Conference. Australian Custom Built Home award. Winners were praised for Members from around Australia exceptionally high standards in enjoyed performances by popular workmanship, design and innovation. entertainer Samantha Jade and the These awards are the ultimate platform humour of master of ceremonies for members to showcase their talents Eddie Perfect. in construction and design. The Australian Housing Awards are The top accolade, the HIA–CSR the culmination of multiple awards’ Australian Home of the Year, was ceremonies held across the country presented to NSW builder Sammut over the previous 12 months.

HIA–CSR AUSTRALIAN HOME OF THE YEAR 2016: SAMMUT DEVELOPMENTS

12 | HIA ANNUAL REPORT 2016 HIA 2016 NATIONAL CONFERENCE 19–21 MAY The 2016 HIA National Conference 2016 HIA National was a huge success, with a sell-out audience of over 640 members Conference attending the three-day event. Held HAMILTON ISLAND on Hamilton Island from 19-21 May, the family-friendly conference provided delegates with the opportunity to network within their industry, hear from keynote speakers, celebrate Australian Housing award- winners and finalists, as well as 2016 further their learning. PROGRAM + REGISTRATION The conference kicked off with a Welcome Beach BBQ on Catseye Beach, while day two was action- digital behaviour guru Danielle Di-Masi, packed with Business Building Sessions, and interior designer Darren Palmer. personal health and fitness classes, Lunch was another success, with HIA 2016 NATIONAL CONFERENCE 19–21 MAY networking forums, lunch engagements influential keynote speakers Lisa and the Marina Street Party. Wilkinson and Peter FitzSimons Guest speakers at the Business offering their career and life stories. Building Sessions included: Victoria Delegates were also given the option Cross recipient Benjamin Roberts- to attend the HIA Charitable Smith, financial expert Mark Bouris, Foundation Golf Day or enjoy recreation time on the island. The round of golf proved popular for PARTNERED BY networking, with the full complement of players enjoying the weather, scenery and atmosphere of the Hamilton Island Golf Course. The conference concluded with the presentation of the 2016 HIA–CSR Australian Housing Awards.

BUSINESS LUNCH

PARTNERED BY

HIA ANNUAL REPORT 2016 | 13 HIA’s seventh Building Better Cities HIA Building Better Summit provided another opportunity SUMMIT to look over the horizon and ask WEDNESDAY 26 OCTOBER 2016 HILTON SYDNEY HOTEL Cities Summit – ourselves what housing in 2030 might look like. 2O16 Housing 2030 was held on 26 Housing 2030 October in Sydney and brought together local and international speakers to share ideas about what HOUSING homes we will build, where we will build them and who we will build Building Better Cities them for over the next 15 years. Accommodating 185,000 additional homes across Australia each year in the right places and for the right long-term is the challenge for the price. The summit highlighted the housing industry. However, equally need for our industry to be open to important is meeting the community’s disruption and consider housing expectations to build the right homes, from new perspectives.

2016 HIA GreenSmart Awards

HIA GreenSmart Awards recognise the best in sustainable new homes, renovation projects and environmentally-responsible new products from around Australia. The awards acknowledge HIA members who are making their mark in sustainable building practices. Once again members entered the awards through HIA’s secure online entry portal with winners announced in an online video on 6 September. The 2016 Australian GreenSmart Home of the Year was awarded to Queensland’s Eco-Essence Homes. The home was applauded for smart design, using the environment for heating and cooling, natural light and rainwater for landscaping.

2016 HIA GREENSMART HOME OF THE YEAR: ECO-ESSENCE HOMES

14 | HIA ANNUAL REPORT 2016 HIA’s strong regional presence

A national voice with regional delivery Darwin

Cairns Townsville

NT Mackay QLD Sunshine Coast WA Brisbane Gold Coast

SA Coffs Harbour Perth NSW Newcastle Bunbury Canberra Sydney Adelaide Bendigo Wodonga Melbourne VIC Traralgon/Gippsland Geelong

Launceston TAS Hobart

HIA ANNUAL REPORT 2016 | 15 New South Wales

CATHY INGLIS The records kept tumbling for the PRESIDENT NSW new home building market during 2016, as multi-unit NEW SOUTH WALES commencements peaked alongside decade-high detached dwelling starts. The year saw more than 75,000 new dwellings being added to the state’s housing stock. Renovations demand also remained strong, ensuring HIA members were kept extremely busy. The HIA team and member volunteers on HIA service committees continued to deal with an ever– increasing number of policy issues that impact our industry. Some of the major areas addressed included: land DAVID BARE supply and registration, lobbying for EXECUTIVE DIRECTOR a medium density housing code and NEW SOUTH WALES a greenfield’s code, complying development reforms, the initiation of the Greater Sydney Commission and draft District Plans, and the impact of council amalgamations. Other major reviews included: strata reforms, warranty insurance, While our members in NSW continued changes to the NSW complaints to reap the rewards of a booming register, the development of the NSW market, the HIA NSW team delivered a Commerce Regulator, a review of broad range of member services and biodiversity legislation, the Lambert events. Our specialist staff responded review and certification reforms, to over 30,000 calls from members in impact of the foreign investor stamp the areas of industrial relations, duty and land tax surcharge, and membership, training, events, reviews of development levies and technical, planning and legal advice, state infrastructure contributions. apprentices and safety. Many of these will continue in 2017 We welcomed more than 700 new however tackling the growing burden members to HIA in 2016 and of red tape for HIA members, and delivered a suite of well attended gaining greater support from the state events, including industry government to work with our industry breakfasts, trade nights, president’s to develop the skilled workforce of luncheons and our annual Building & tomorrow, remain key priorities. Business Workshop. The HIA–CSR NSW Housing and Kitchen & Bathroom Awards was a success with entry numbers up from the previous year. Securing Smart & Skilled funding for 2016 also assured the strength of our training delivery.

16 | HIA ANNUAL REPORT 2016 GREG ELSWORTHY New home and multi-unit building PRESIDENT activity across the Hunter region HUNTER continued to expand in 2016. Pleasingly, at multiple stages throughout the year building approvals hit almost decade-high records, ensuring a strong pipeline of work for members. Very low lending rates, surges in coal prices, and reports of business and consumer confidence growth, provided further support to the sector in the latter half of 2016. In May, the NSW Government announced the forced amalgamation CRAIG JENNION of more than 40 local councils. EXECUTIVE DIRECTOR Locally, Gosford and Wyong councils HUNTER merged as did Gloucester, Great Lakes and Greater Taree councils. Uncertainty about the merger of four remaining councils remained unresolved, as Dungog and Maitland, as well as Newcastle and Port Stephens, awaited a decision by the Throughout 2016, HIA continued NSW Government. to provide information and advice In August, HIA gave written and to members, whether they were verbal evidence about the current just starting out in the building state of play to the NSW Legislative industry or were looking to grow Council inquiry into regional planning their business to new levels. processes in NSW. Following detailed A major highlight was the record HIA submissions, the launch of new number of entries and tickets sold regional plans covering the Hunter for the annual HIA–CSR Hunter and Central Coast were commended Housing and Kitchen & Bathroom by HIA. Awards which were held with Upon review, however, HIA was great success at a new location. alerted to a proposal to introduce a Guest speakers from beyondblue Hunter Special Infrastructure attended several trade nights Contribution Plan. In a further during the year to discuss the submission completed in December, subject of anxiety and depression, HIA stressed that the imposition of an a topic that has been very well upfront levy to fund state received by members. infrastructure was inequitable, HIA’s Building & Renovation inflationary and erodes housing Shows in the Home Inspirations affordability for new home buyers. centre again proved successful in showcasing the very best of the residential building sector.

Hunter

HIA ANNUAL REPORT 2016 | 17 BRUCE ROBB 2016 kicked off with the PRESIDENT Queensland Executive committing QUEENSLAND to the task of convincing the state government to introduce a single state-based house code as its number one priority for the year. To this end, HIA volunteers and staff dedicated significant time and effort toward achieving this goal. Pleasingly, the inclusion of a draft code as part of the Queensland Building Plan, released for consultation late in the year by the Housing and Public Works Minister, confirmed HIA had well WARWICK TEMBY and truly put the issue on the EXECUTIVE DIRECTOR government’s agenda. QUEENSLAND HIA also participated in a range of government reviews as well as initiated discussions with government departments on various topics that impact on the ability of members to remain profitable in their businesses. The rebound in industry activity HIA contributed to a broad in 2016 brought increased range of reviews during the year, demands on HIA services, in particular, the development of including building contracts, the South East Queensland safety services, and technical Regional Plan and the drafting of and legal advice. Importantly, a new Planning Act for it also saw an increase in Queensland. Others included: new demand for HIA Apprentices. requirements around the Higher activity across the installation of smoke alarms, industry also brought a renewed clarifying WorkCover requirements, interest from members across a review into labour hire, changes the board in the HIA–CSR to Home Warranty Insurance, Queensland Housing and Kitchen review of fines associated with & Bathroom Awards, with sediment and erosion control, and increased entries and attendance reducing the impact of the foreign at all four awards events. acquisition tax. Following its successful launch in Looking ahead at the 2015, the Recognition of Women government’s agenda, 2017 may in Industry event grew beyond well be another big year of expectation in 2016. Additionally, government proposals, reviews in partnership with a number of and industry consultation. community groups, HIA was pleased to be able to deliver industry qualifications to groups with a range of disadvantages.

Queensland

18 | HIA ANNUAL REPORT 2016 North Queensland

PETER HOPPER HIA presence in North Queensland PRESIDENT remained strong throughout 2016 NORTH QUEENSLAND despite the difficult economic conditions and modest level of building activity. Committee meetings continued to be well attended and member engagement remained high. The number of calls to HIA increased during 2016, with workplace related inquiries concerning non-payment, and delays in progress claim payments, dominating the list of issues raised by members. ROBERT HARDING Housing award events were held in EXECUTIVE DIRECTOR three regional centres, concluding in Townsville. NORTH QUEENSLAND Lobbying efforts during the year focused on planning reviews and local schemes in Cairns and Townsville, state and Commonwealth incentives and economic support across the region, and investment Queensland has experienced a two- programs targeting infrastructure paced economy over recent years, activity in regional centres, including with Southern Queensland faring Townsville and Mackay. much better than Northern Water security remains a major Queensland. 2016 continued that issue for a number of North trend, particularly across residential Queensland regions, and after construction activity. sustained advocacy, HIA achieved Even within Northern Queensland a sensible solution to level 3 there was significant divergence, restrictions in Townsville through with the Cairns area performing an exemption on construction sites reasonably well, supported by the and display villages. lower Australian dollar and Looking towards 2017, business consequent increase in tourism. confidence and activity will be Other regional centres such as underpinned somewhat by Rockhampton, Mackay and developments in the mining sector, Townsville saw a significant decline tourism and government in approval numbers. infrastructure commitments. Despite the contraction in activity, the HIA–CSR North Queensland Housing and Kitchen & Bathroom Awards in all regions were well attended, while the number and quality of entries exemplified the perseverance and professionalism of the residential building industry.

HIA ANNUAL REPORT 2016 | 19 ACT & Southern NSW

GLENN DOWSE 2016 began with an extensive review PRESIDENT of the Building Act in the ACT, which ACT & SOUTHERN NSW presented a number of threats and opportunities for industry. HIA made numerous representations directly to the government and also through the Building Regulatory Advisory Committee. This work has already seen improvements, with a requirement for applicants to sit a test for building licenses introduced during the year. The first half of 2016 was dominated by HIA’s efforts to reverse the GREG WELLER government’s failed solar access EXECUTIVE DIRECTOR requirements. The housing industry ACT & SOUTHERN NSW scored a major victory with a variation to the Territory Plan concerning new housing estates, while the next priority is to extend these important parameters to existing homes. The annual president’s lunch event was reinstated for 2016, which proved The region contributed to a not only a popular event for number of government reviews attendees, but also an important and working groups in the ACT contributor to HIA’s advocacy during the year. This included the activities. The region also saw a review of the Building Act, the significant increase in both entrants ongoing restructure of the Land and attendees for the HIA–CSR ACT Development Agency, the & Southern NSW Housing and Training Fund Authority’s skills Kitchen & Bathroom Awards. shortage review, managing sound The ACT went to an election and HIA in city centres, land release ensured that the residential building strategies, water sensitive urban industry’s voice was prominent, design and the child safety low regularly making comments in the speed vehicle accident forum. media and releasing a list of priorities Representations were also made to support the sector. on behalf of NSW members in the The standard of HIA training and region on the inland housing mentoring of the next generation of code, regional plans for the builders was also evident in 2016, with Riverina-Murray and South East, a HIA apprentice winning the ACT and the new e-planning portal. Construction Apprentice of the Year. HIA was on hand for the launch of a series of new safety induction videos during the 2016 National Safe Work month in October. The series had its genesis in a project between HIA and the ACT Government, which began as a response to the Getting Home Safely report.

20 | HIA ANNUAL REPORT 2016 ROBERT GRIEK While the housing industry in Victoria PRESIDENT continued in a buoyant manner VICTORIA throughout 2016, signs of weakening activity were emerging late in the year. Leading indicators in the high- rise apartment sector in particular pointed to a slowing trend in commencements. Detached housing indicators however remain strong, as do forecasts for renovation and addition activity, which grew over the course of 2016. New building legislation commenced mid-year and the full effect was yet to be realised by the GIL KING year’s end. Importantly, while there EXECUTIVE DIRECTOR were some teething problems early VICTORIA on, successful lobbying by HIA resulted in improved implementation and communication by the building regulator. Similarly to last year, a further Bill to amend the building legislation was introduced into parliament during the last sitting week During 2016, long anticipated of the year for implementation in 2017. changes to the Building Act The Victorian Government released took place. HIA was successful a discussion paper on value capture in influencing amendments to and their state of play report on the legislation to reduce the managing residential developments, impact on members. which required a significant response Extensive consultation with the from HIA. Victorian Building Authority also There was little yet again in the resulted in improved 2016 State Budget for the housing implementation and procedures industry while the government being adopted by the regulator. focuses on its road and rail The government response to what infrastructure programs. An it calls Better Apartments Design unwelcome amendment to the Standards reached its conclusion Growth Areas Infrastructure late in the year after extensive Contribution levy was masked by consultation with HIA. government as closing a loop-hole, The Association also successfully but instead it will unfortunately secured funding support from the impact on housing affordability. Victorian Government, ensuring cost-effective, quality and practical training could be delivered for HIA members.

Victoria

HIA ANNUAL REPORT 2016 | 21 TONY PARKER 2016 saw continued lobbying of PRESIDENT the state government in relation TASMANIA to the new Building Bills that will commence state-wide operation from 1 January 2017. Dispute resolution, builders licensing, building categories, permit requirements, contracts, contract conditions and variations are some of the areas in which feedback has been provided. Part 1 of the state-wide Planning Scheme progressed through the public consultation stage. HIA was closely involved RICK SASSIN through the process and will EXECUTIVE DIRECTOR continue to be involved with the TASMANIA development of the Local Planning Provisions, which will form Part 2 of the Scheme. During 2016 HIA also secured support for a new YOUTHBUILD program in Tasmania, following determined lobbying of 2016 saw HIA establish a strong government, the Tasmanian position of influence to voice the Building & Construction Industry industry’s views during the Training Board and the development of new building Tasmanian Education legislation to be implemented in Department. The program will be 2017. Training, information and reintroduced into Claremont awareness sessions covering the College in 2017 with the prospect changes were rolled out to of uptake by other colleges in members across the state. subsequent years. HIA also stressed to the Tasmanian Government that it should emphasise to the public that they engage a qualified person to undertake any residential building works. Advocacy also focused on the First Home Builders Boost, red tape reduction, local government adherence to statutory assessment timetables, apprenticeship funding and stamp duty legislation.

Tasmania

22 | HIA ANNUAL REPORT 2016 Western Australia

DEAN O’ROURKE Overall, 2016 was a tough year PRESIDENT for the Western Australian WESTERN AUSTRALIA housing market. The industry’s resilience was tested as activity contracted across the state. Significant wins for HIA however included the retention of the $10,000 First Home Buyers Grant for new homes, stamp duty exemption and concessions, Keystart securitisation and ongoing JOHN GELAVIS discussions promoting EXECUTIVE DIRECTOR ‘Instant Start’. WESTERN AUSTRALIA Other lobbying efforts focused on developing and implementing a full private certification scheme for all residential building work, lifting apprenticeship commencement numbers and reducing the 2016 was an extremely challenging aggregate level of taxation year for HIA members across Western imposed on new housing. Australia, as the end of mining boom During the second half of the coincided with a rapidly declining year, HIA worked with both residential housing market. The parties to ensure positive election contraction in residential commitments for housing were commencements impacted builders, announced in advance of the contractors, manufacturers and March 2017 election. With the suppliers, adding pressure on business election looming, there was a operations and market performance. need to ensure that the incoming On a positive note, the inaugural HIA government did not delay Charity Home in Perth was completed important changes that needed and sold in March 2016, delivering urgent review and a significant contribution to the implementation. HIA Charitable Foundation. HIA advocacy on housing affordability ensured ongoing state government support for first home buyers by maintaining the First Home Buyers Grant at $10,000 and extending stamp duty exemptions. With an eye toward the 2017 State Election in March, HIA developed its 2017 Policy Imperatives election manifesto to be used to advocate on behalf of its members in the lead up to the election and to promote policy solutions to the incoming government.

HIA ANNUAL REPORT 2016 | 23 South Australia

STEPHEN KNIGHT The building market remained weak PRESIDENT in South Australia throughout 2016 in both the new home, and the SOUTH AUSTRALIA & renovation and addition markets. NORTHERN TERRITORY However, signs of recovery appeared late in the year with consumer confidence rising on the back of future Commonwealth defence project announcements, and strong wine and agriculture export market results. A noticeable shift towards a greater proportion of inner Adelaide medium- BRENTON GARDNER and high-rise housing and a EXECUTIVE DIRECTOR commensurate reduction of fringe detached housing is underway, SOUTH AUSTRALIA partially driven by government planning policy and stamp duty reductions for new apartments. HIA has been active in working with the government preparing for a new planning system, after a strong and longstanding lobby effort against It has been another exceptionally the introduction of growth boundaries busy year for the Association’s and infrastructure levies. advocacy efforts, with an array of Other proactive lobby issues planning, legal and industrial undertaken during 2016 included a proposals addressed against a call to license building consultants, backdrop of low building activity. a range of submissions on proposed HIA’s South Australia office changes to security of payment received over 20,000 calls during legislation, the State Budget, EPA 2016. High demand came from waste reform bill, an inquiry into members seeking assistance from TAFE SA, and an illegal dumping on HIA’s workplace and technical building sites Bill. Significant issues for HIA continuing into 2017 include professionals, reflecting the proposed changes to building increasingly complex regulatory supervisor requirements and changes environment within which to home warranty insurance. members operate. Safety services, Attendance at all events was apprentices, events, contracts, excellent throughout the year, insurance and training took up the providing opportunities for member bulk of all other calls. interaction and networking. In Despite state government funding particular, the reintroduction of being withdrawn, HIA remains regional information nights proved South Australia’s leading, most most successful. respected, and best attended, building training organisation, particularly for Certificate IV Builder training. Apprentice numbers began to slowly increase during 2016, with further growth anticipated in 2017. Northern Territory

24 | HIA ANNUAL REPORT 2016 JUSTIN GILL The Northern Territory’s Committee CHAIR expanded its membership during 2016, providing additional industry knowledge NORTHERN TERRITORY and practical experience to HIA’s advocacy efforts. The slow-down in mining infrastructure work, together with the high volume of new units completed over the previous three years, led to a significant fall in new housing activity. Business diversification has been necessary for some HIA members, while NEILIA GINNANE stimulus packages and grants programs EXECUTIVE DIRECTOR provided opportunities for new NORTHERN TERRITORY commercial, remote housing and residential renovations projects. HIA assisted members to gear up for these opportunities, providing information sessions on policy, procurement, legislation and funding. The continuation of the $26,000 first The Northern Territory experienced home buyers grant for new homes (only) significant decline in residential enabled members to work on smaller, building activity during 2016. Urban more affordable housing options to help and remote builders faced a range new home buyers into their first home. New stamp duty concessions for first of challenges, elevated in part by a home buyers purchasing existing homes changing policy landscape, enabled more second and third home indicative of an election year. With buyers to upgrade to new builds. new government however comes HIA Training achieved growth for the new opportunity to inform and second consecutive year, focusing on influence, and HIA effectively vocational education and training to positioned the Association with the Certificate IV level. 2016 also saw the incoming government as the peak first group of HIA-trained apprentice body representing the voice of the carpenters, with a second intake residential building industry. scheduled in 2017. Increased engagement with the HIA represented the industry on government ensured HIA was first several key advisory bodies, including at the table during a range of key the NT Government Work Health and government consultations. Safety Council, NT Training Commission, During the past year HIA has NT Business Council, Building advised on eight land usage plans, Practitioners Board and the Building three area plans, planning scheme Advisory Council. amendments, planning reviews, The 99-year lease of the Darwin Port, indigenous employment, remote and recent increases in foreign contracting and buy local policy and investment into the Northern Territory, government economic summits. provided encouraging signs of positive Following the change in economic growth and employment government, a number of these prospects into 2017. reviews were reactivated. Successful lobbying by HIA resulted in the abandonment of the Cureton Review of the regulatory framework, and the return of first home buyers stamp duty exemptions. Northern Territory

HIA ANNUAL REPORT 2016 | 25 26 |

HIA ANNUAL REPORT2016 HIA’s committee structure

National National Board National Policy Congress Manufacturers’ Council

National National National National National HIA National Training and Industrial Planning and Membership Kitchens & Presidents’ Technical Professional Relations and Environment Services Bathrooms Forum Committee Development Legal Committee Committee Committee Committee Committee

Regional Regional Regional Regional Regional HIA Regional Regional Training and Industrial Regional Regional Planning and Membership Kitchens & Presidents’ Technical Professional Relations and Branch Executive Environment Bathrooms Industry Committee Development Legal Services Committees Committee Committee Committee Forum Committee Committee Committee HIA staff As at 31 December 2016

National Office Finance Marketing & Communications Rosalie Antonio Accounts Officer Jennifer Haling Shane Goodwin Managing Director Communication Coordinator Sharni Doolan Accounts Officer Kristin Brookfield Suzanne Fan Assistant Accountant Chief Executive – Industry Policy Membership Michael Kerr Senior Accountant Jocelyn Martin Elizabeth Hunter Membership Chief Executive – Corporate Services James Ludzioweit Accountant Administration Officer

Timothy Olive Lalit Prasad Chief Financial Officer Lisa Morgan Membership Administration Manager Chief Executive – Business Solutions Logan Smith Accounts Officer

Graham Wolfe Deputy Managing Director Annette Van Wyk Accounts Officer National Publishing

Sarah O’Donovan Contracts & Stationery HIA Apprentices Publishing and Media Coordinator Karmie Watson General Manager Heather Baker Payroll Officer Louise Tigchelaar Managing Editor Haley Pitman Supervisor, Payroll Corporate Services Laura Valic Assistant Editor

Annette Christou Industry Policy Group Operations Manager Training Mike Harding National Manager – Timothy Ferrari General Manager Jelica Ivetic Executive Assistant Building Codes & Standards

Fiona Knight Executive Officer David Humphrey Senior Executive Director Wendy Papas Receptionist – Business, Compliance & Contracting Australian Capital Territory/ Guillermo Risco Business Analyst IT Southern New South Wales Gerrie van Dam Receptionist Glenn Alderton Client Services Officer Greg Weller Executive Director – ACT/Sthn NSW Digital Jeremy Bernabe Applications Support Tahera Afridi Customer Service Officer – Anne Esler Graphic Designer Iwona Bockwinkel .NET/CRM Developer Home Inspirations Centre Jo Hoadley Senior Graphic Designer Chan Dissanyake .NET/CRM Developer Jeffrey Blackburn Shane Dixon Software Solutions Specialist Lindsay Pepper Graphic Designer Business Development Representative Brendan Donovan Kristie Burt Workplace Adviser Economics Chief – Business Improvement Group Thommi Donovan Customer Service Officer Harley Dale Chief Economist Louise Du Toit – Home Inspirations Centre Shane Garrett Senior Economist Business Systems Project Manager Maylene Eccleston Matthew Dudley Resource Developer Diwa Hopkins Economist Receptionist/Stationery Officer Stephen Fowler Client Services Officer Kirsten Lewis Group Coordinator Amy Fowler Customer Service Officer – Geordan Murray Economist Liz Keen Home Inspirations Centre Legal Documents Desktop Publisher Arif Syed Economist Elizabeth Fowler Customer Service Officer Dean Mason Database Developer – Home Inspirations Centre

Employee Services Jo Randles Manager – IT Support Julie Giucci Manager – HIA Apprentices

Angela Donnellan Shane Rogers Allison Hourigan Office Administrator Payroll Administrator Infrastructure Solutions Specialist Jake Mackenzie Customer Service Officer – Tegan Moon Administrative Assistant Vijayakumar Santhanam Home Inspirations Centre Nick Parry Manager .NET/CRM Developer Natalie Mackenzie Julia Smith Employee Services Adviser Kelly Tot General Manager Event & Partnership Officer

HIA ANNUAL REPORT 2016 | 27 Sabine Meyer National Roles based in Hunter Carolyn Sheean Regional Training Co–Ordinator Business Development Representative/Field Angela Schaefer Assistant Accountant Officer – HIA Apprentices Stefan Weiss Manager – Home Inspirations Centre Sulfi Soeleiman New South Wales Deputy Executive Director – NSW Lesley Steel David Bare Executive Director – NSW Gold Coast Office Administration & Facilities Manager Suzanne Barry Administrator – HIA Training Toni Bull Richard Stoker Business Development Executive Director – Gold Coast/Nth Rivers Jennifer Brooks Manager – HIA Training Representative – Coffs Harbour

Penelope Lovett Administrative Assistant Joshua Burns Workplace Adviser Shannon Summers Receptionist

Adam Wright Megan Chase Administration & Member Michelle Todd Business Development Representative Services Assistant – Coffs Harbour Business Development Representative

Suzanne Cole Nicole Wilson National Roles based in Gold Coast Business Development Representative/Field Administration/Customer Service Officer Diane Sebbens Officer – HIA Apprentices Executive Director – Kitchen & Bathrooms Steven Ellery National Roles based Glenn Simpson Business Development Representative – in New South Wales Central West/Blue Mountains Senior Executive Director – Legal & Melissa Adler Corporate Services/General Counsel Andrew Farah Workplace Adviser Executive Director – Workplace Relations

Jane Fayad Shelley Benson Hunter Business Manager – HIA Safety Services Outbound Customer Services Officer Dorothy Frick Belinda Bouverie General Manager – Craig Jennion Executive Director – Hunter Adviser – HIA Safety Services Sales Development Support

Laurence Antcliff Meredith Frohreich Lyndall Cheshire Web Content Writer Coordinator – Home Inspirations Centre Senior Workplace Adviser Emily Clear Bronwyn Carlyle Anthony Georgievski Outbound Customer Services Officer Field Officer – HIA Apprentices Business Development Representative Nadine Finlay Melissa Donnelly Lisa Harris Marketing & Communications Specialist Regional Coordinator – HIA Training Administration & Communications Executive Sharyn Guerin Jack Dunn Customer Service Officer – Annie Hart Event Coordinator Outbound Customer Services Officer Home Inspirations Centre Phil Hayhoe Nikki Hart Kyla Kenney Business Development Representative Outbound Customer Services Officer Regional Coordinator – HIA Training Rachael Hetherington Administration Murray Hooper General Manager – Sales Samantha Kokoulis and Member Services Assistant Receptionist/Stationery Officer Shazia Imran Website Operations Manager Fiona Joynes Jade Lynch Event Coordinator Event & Partnership Coordinator Jodie Leech Outbound Customer Services Officer Jenny McDonald Office Administrator Zuhair Khan Coordinator – HIA Training Catherine Lynch Group Manager – Marilyn Melville Customer Service Officer – Troy Loveday Assistant Director – Marketing & Communications Home Inspirations Centre Residential Development & Planning Allison Marriott Outbound Customer Nicole Mundey Workplace Adviser Dennis Meyn Services Officer Julie O’Hearn Customer Service Officer – Senior Adviser – HIA Safety Services Vanessa Ridley Home Inspirations Centre John Nagle Outbound Customer Services Officer Anthony Quinn Customer Service Officer – Business Development Representative/ Ruth–Anne Simington Home Inspirations Centre Field Officer – HIA Apprentices Outbound Customer Services Officer Sana Rahman Customer Service Officer – Amy Post Event Coordinator Lucy Vicars National Partnership Executive Home Inspirations Centre Stephanie Protheroe Business Dora Vo Website Content Administrator Michael Riordan Customer Service Officer Development Representative (Telesales) – Home Inspirations Centre Anna Rankin Branch Manager Eliza Wager National Event Manager

Ian Tennant Gary Rudnick Sales Manager, Peter Walton Business Development Representative NSW/ACT – HIA Apprentices Technical Course Writer – HIA Training

Samantha Tull Jenny Samyia Donna Williams Receptionist/Stationery Officer Events & Partnership Manager Team Leader – National Sales & Services

28 | HIA ANNUAL REPORT 2016 Kerrie Wilson Josephine Norman Hayley Cole Manager – Business Information Administrative Officer – Sunshine Coast Event & Partnership Coordinator

Phil Read Huan Do Workplace Adviser Business Development Representative/ Kent Hopkins Building Services Manager Northern Territory Field Officer – HIA Apprentices Roger Kuhlmann Sales Manager Neilia Ginnane Laura Regan Executive Director – Northern Territory Manager – Workplace Services Lisa Madrussani Event & Partnership Coordinator Robert Brunsdon Trainer/Assessor Michael Roberts Jessica Promnitz Rachael Lording Assistant Director – Planning Membership/Stationery Sales Coordinator Training and Administration Coordinator Kelly Sarandis Business Development Representative (Telesales) Annie Ratcliff Coordinator – HIA Training North Queensland Doreen Terry Marie Rinaldi Event Manager Membership Services Representative Grant Robinson John Futer Toni Trost Manager – HIA Apprentices Executive Director – North Queensland Senior Coordinator – HIA Training Amanda Scutter Executive Assistant

Tascha Collins Event Coordinator Kelly Woodhouse Processing Officer Carly Sisto Administrative Assistant Vicki Forster Business Services Manager Jessy Wright Building Service Advisor National roles based Kylie Leet Office & Event Administrator Lilian Zhou Manager – Workplace Adviser in South Australia Claire Mitchell Administrator – HIA Training National roles based in Queensland Russell Holtham Ty Moore General Manager Operations Branch Manager – Central Queensland Morgan Blake Information Officer – HIA InfoCentre Sandra Jaffer National Administration Russell Parnicott Branch Manager – Cairns Manager – HIA Apprentices Gabrielle Brady Kim Torrisi Coordinator – HIA Training Information Officer – HIA InfoCentre Amy Kozilek Administrative Assistant – HIA Apprentices Mark Elgood Queensland Chief Executive – Sales & Marketing Richard Little National Safety Product & Process Manager – HIA Safety Services Stuart Lester Warwick Temby Information Officer – HIA InfoCentre Kevin McLoughlin Executive Director – Queensland Group Manager – Strategic Alliances Emma Lewis Debbie Badinski Business Services Information Officer – HIA InfoCentre Laura Tascione Accounts Receivable Coordinator – HIA Training Officer – HIA Apprentices Isobelle Martin Annica Cloete Workplace Adviser Information Officer – HIA InfoCentre Sophie Turtle Administration Coordinator, Kim Coles Events & Partnership Manager Operations – HIA Training Grace Manahan Stuart Collins Information Officer – HIA InfoCentre Wendy Ventura Branch Manager – Sunshine Coast Administration Officer – HIA Apprentices Angela Olsen Kelvin Cuskelly Precedents Manager – Contracts Online Assistant Director – Building Services Chizzie Phiri Tasmania Kurt Ebert Information Officer – HIA InfoCentre Senior Adviser – HIA Safety Services Rick Sassin Executive Director – Tasmania Jasmine Sharie Katrina Edwards Executive Assistant Information Officer – HIA InfoCentre Kelly Allan Reception & Stationery Sales Karen Ellis Receptionist Ross Bebbington Leah Govorko South Australia Branch Manager – Launceston Business Development Representative Sally Bennett Manager – HIA Training

Catherine Hall Brenton Gardner Laura Curtain Events Assistant Receptionist/Administration Officer Executive Director – South Australia Louise Kirkwood Vincent Hammond Denise Agnew Coordinator – HIA Training Events & Partnership Manager Adviser – HIA Safety Services Emma Allen Adam Lacy Brian Johnson Manager – HIA Apprentices Senior Coordinator – HIA Training Business Development Representative

Angela Lamprecht Business Development Lachlan Barry Domonee Rieper Executive Assistant Representative – Sunshine Coast Trainee AdministrativeAssistant Ainslee Short Kerry McLachlan Annette Chipperfield Receptionist & Stationery Sales Event Coordinator/Training Assistant Manager – HIA Training

HIA ANNUAL REPORT 2016 | 29 National Roles based in Tasmania Nick Moshonas Business Safety Manager – Joanna House Event Coordinator HIA Safety Services Marnie Craig Marketing & Communications Howie Hughes Project Manager Emma Payne Partnership Development Executive Rachael Oakley Events & Partnership Manager Edward Martin Receptionist National Operations Manager – HIA Training Donna Rowe Amanda McLennan Office Administrator – Bendigo Business Development Representative Victoria Keith Ryan Manager – Workplace Services Marilyne McPaul Manager – HIA Training Natalia Smith Workplace Adviser Rochelle McSwain Gil King Executive Director – Victoria Geoffrey Soennichsen Business Senior Event Coordinator Emily Alvis Events & Partnership Manager Development Representative – Gippsland Jessica Mills Event Coordinator

Keith Banks Mary–Jane Sotelo Lisa Nicolaou Workplace Adviser Coordinator – HIA Training Deputy Executive Director – Victoria Michael O’Kane Workplace Adviser Shaun Stone Business Development Racheal Beggs Office Manager Jenni Schwann Representative – Bendigo Damien Billman Business Development Membership Stationery Sales Coordinator Bianca Tully Representative – Geelong James Skouros Events & Partnership Coordinator Hailey Bynon Receptionist Business Development Representative/ Inga Vennell Administration Assistant Field Officer – HIA Apprentices Cobi Davies Receptionist & Bookshop Assistant Shane Wellington Business Development Sharon Smith Representative – Albury Wodonga Membership Stationery Sales Coordinator Zak Davies Safety Adviser Crystal Xu Coordinator – HIA Training Kirsty Thorburn Coordinator – HIA Training Anton Didulica Business Development Representative Pina Versace Branch Manager – Bunbury National Roles based in Victoria Meg Diola Oriana Voss Executive Assistant Helen Colla National Audit & Compliance Bookshop & Facilities Coordinator Phoebe Williams Event Coordinator Manager – HIA Training Nicole Fitzgerald Sharmen Wilson Event Manager Lisa Ebert Manager – HIA Apprentices Finance Manager – HIA Apprentices Alfonsa Fuller Administrator – HIA Training National Roles based Clare Fleming in Western Australia Janece Grant RTO Administrator – HIA Training Office Administrator – Albury/Wodonga Diane Blom Systems Administrator Chris Fortune National Business John Dastlik General Manager – Katie Grace Development Manager – HIA Apprentices Business Development Representative/ Data Michelle Harrex Field Officer – HIA Apprentices & Content Management National Product Manager – HIA Training Lisa Grigsby Danielle Grech Tony Lopez Assistant Director – OH&S Administrator – HIA Charitable Foundation Receptionist & Bookshop Assistant Fiona Nield Executive Director – Stephen Greenwood Planning & Development Assistant Director – Building Services Shauna Novacsek Office Administrator Tim Grout Business Development Representative/ Jennifer Sempf Web Content Administrator Field Officer – HIA Apprentices

Rebecca Hall Business Development Representative Western Australia

Zoee Harrison John Gelavis Business Development Representative Executive Director – Western Australia

Michael Hermon David Blom Assistant Director – Planning & Environment Business Development Representative

Kim Johnstone Membership Coordinator Kylie Bronleigh Executive Assistant

Vince Koutsimanis Robin Christensen Building Services Adviser Field Officer – HIA Apprentices

Allie Levine Workplace Adviser Michelle Francis Workplace Adviser Laura Marantz Workplace Adviser Rachelle Gill Irena Melnik Office Administrator – Geelong Assistant Director – Planning & Building

30 | HIA ANNUAL REPORT 2016 2016 financial report

Housing Industry Association Limited ACN 004 631 752

Concise Financial Report for the year ended 31 December 2016

contents

Directors’ Report 32 Auditor’s Independence Declaration under Section 307C of the Corporations Act 2001 36 Discussion and Analysis of the Financial Statements 37 Consolidated Statement of Profit or Loss and Other Comprehensive Income 38 Consolidated Statement of Financial Position 39 Consolidated Statement of Changes in Equity 40 Consolidated Statement of Cash Flows 40 Notes to the Consolidated Financial Statements 41 Directors’ Declaration 41 Independent Auditor’s Report 42

HIA ANNUAL REPORT 2016 | 31 The directors present their report on the consolidated entity (referred to hereafter as Directors’ report the Group) consisting of Housing Industry Association Limited (HIA) and its controlled entities for the financial year ended 31 December 2016.

Directors The following persons held office as directors of HIA during the financial year: Ross Alexander Lang Pino Anthony Monaco Terrence Jenkins Shane Paul Goodwin Alwyn Gerard Even James Charles Graham Yitzhak Arie Hazan (appointed 8 November 2016) David Charles Linaker Simon Gordon Collolo Norris Ronald John Dwyer Stuart Kenneth Wilson Glenn Ives Simpson Graham Erle Wolfe Brian Joseph O’Donnell (ceased 13 September 2016) Timothy John Olive (resigned 6 December 2016) Directors have been in office since the start of the financial year to the date of this report unless otherwise stated.

Principal activities The Group’s principal continuing activity during the year consisted of: • the promotion of industrial resources in Australia’s building industry through associating the members of the residential building, renovation and development industry for purposes of mutual advantage and co-operation; and • the development, maintenance and high appreciation of the objectives and responsibilities of builders, renovators and developers within the building industry in providing the highest standards of professional and commercial conduct. No significant changes in the nature of these activities occurred during the year.

Objectives, strategies and key performance measures HIA’s purpose is to promote the development of the industrial resources of Australia in the building industry. In pursuit of its purpose, HIA has regard to objectives that promote: • the association of members of the residential building industry; • the highest standards of professional and commercial conduct;

Important information about this concise financial report The concise financial report is an extract from the full financial report of Housing Industry Association Limited and controlled entities. The financial statements, specific disclosures and other information included in the concise financial report are derived from, and are consistent with, the full financial report. The concise financial report cannot be expected to provide as detailed an understanding of the financial performance, financial position and financing and investing activities of Housing Industry Association Limited and controlled entities as the full financial report. A copy of the full financial report and auditor’s report will be sent to any member, free of charge, upon request by calling 02 6245 1300. Housing Industry Association Limited is a company limited by guarantee incorporated and domiciled in Australia. Its registered office and principal place of business is: Housing Industry Association Limited, Housing Industry House, 79 Constitution Avenue Campbell, ACT 2612. The financial statements were authorised for issue by the directors on 11 April 2017. The directors have the power to amend and reissue the financial statements.

32 | HIA ANNUAL REPORT 2016 • continual improvement of industry techniques and practices; • excellence in construction; • an adequate supply of industry skills and the availability of appropriate and sufficient industrial resources to the residential building industry for the provision of appropriate housing to all people in Australia; • efficient and equitable employment and contracting arrangements; and • the use of building products, systems and methods that efficiently utilise or ensure the long term viability and sustainability of Australia’s industrial resources. Focused on being “a building practitioner’s indispensable business partner”, the Board’s strategy is directly aligned to HIA’s mission to: “promote policies and provide services which enhance members’ business practices, products and profitability, consistent with the highest standards of professional and commercial conduct”. In pursuing its organisational strategy, specific strategic initiatives and plans have been devised to: • grow membership; • improve and effectively market HIA’s member proposition, business offering and dealings; and • address the political, regulatory and structural capacity of the building industry. Performance measures are aligned with both HIA’s strategic objectives and financial targets. The HIA Board ensures the appropriate governance arrangements, risk management processes, systems and controls are in place to ensure the integrity of reporting arrangements needed to monitor performance of the entity.

Dividends The Constitution of HIA does not permit the distribution of dividends to members. Review of operations The profit of the Group from ordinary activities amounted to $750,888 (2015 profit: $210,637). Significant changes in the state of affairs There have been no significant changes in the state of affairs of the Group during the year. Matters subsequent to the end of the financial year No matter or circumstance has arisen since 31 December 2016 that has significantly affected, or may significantly affect: • the Group’s operations in future financial years, or • the results of those operations in future financial years, or • the Group’s state of affairs in future financial years. Likely developments and expected results of operations Information on likely developments in the operations of the Group and the expected results of operations have not been included in this financial report because the directors believe it would be likely to result in unreasonable prejudice to the Group. Environmental regulation The Group is not affected by any significant environmental regulation in respect of its operations.

HIA ANNUAL REPORT 2016 | 33 Information on directors

NAME TITLE EXPERIENCE Ross Alexander Lang National President Managing Director, Lang Homes Pty Ltd Pino Anthony Monaco National Vice-President Managing Director, GV Lawyers Pty Ltd, Barristers & Solicitors Terrence Jenkins National Treasurer Company Director Shane Paul Goodwin Managing Director Managing Director, Housing Industry Association Limited Alwyn Gerard Even National Director Director, ABN Group James Charles Graham National Director Company Director Yitzhak Arie Hazan National Director Manager, i2 Homes Pty Ltd (appointed 8 November 2016) David Charles Linaker National Director Group Business Development Manager, CSR Limited Simon Gordon Collolo Norris National Director Director, Norrgold Pty Limited Ronald John Dwyer Immediate Past National President Director, Jason Windows Pty Ltd Stuart Kenneth Wilson Past National President Managing Director, Wilson Building Consultants Glenn Ives Simpson General Counsel General Counsel, Housing Industry Association Limited Graham Erle Wolfe Additional National Director Deputy Managing Director, Housing Industry Association Limited Brian Joseph O’Donnell National Director Director, RedHouse Developments Pty Ltd (ceased 13 September 2016) Timothy John Olive Additional National Director Chief Executive – Business Solutions, (resigned 6 December 2016) Housing Industry Association Limited

Company secretary The company secretary is Annette Jayne Christou. Annette holds a Bachelor of Arts degree and is a member of the Australian Institute of Company Directors. Annette was appointed to the position of company secretary in 2004. Company limited by guarantee HIA is incorporated under the Corporations Act 2001 as a company limited by guarantee. If HIA is wound up, the constitution states that each member and each former member who was a member during the year ending on the day of the commencement of the winding up, undertake to contribute to the property of HIA for: • payment of debts and liabilities of HIA; • payment of the costs, charges and expenses of winding up; and • any adjustment of the rights of the contributories among members. The total amount that each member or past member is liable to contribute is $20. Meetings of directors During the financial year, five meetings of directors were held. The number of meetings each director was eligible to attend and attendance by each director during the year were as follows:

34 | HIA ANNUAL REPORT 2016 FULL MEETINGS OF DIRECTORS A B Ross Alexander Lang 5 5 Pino Anthony Monaco 5 5 Terrence Jenkins 5 5 Shane Paul Goodwin 5 5 Alwyn Gerard Even 5 5 James Charles Graham 5 5 Yitzhak Arie Hazan 1 1 David Charles Linaker 5 5 Simon Gordon Collolo Norris 5 5 Ronald John Dwyer 5 5 Stuart Kenneth Wilson 5 5 Glenn Ives Simpson 5 4 Graham Erle Wolfe 5 5 Brian Joseph O’Donnell 3 3 Timothy John Olive 5 5 A = Number of meetings held during the time the director held office during the year B = Number of meetings attended

Insurance of officers During the financial year, Housing Industry Association Limited paid a premium of $44,444 (2015: $44,663) to insure the directors and officers of HIA and its controlled entities. The liabilities insured are legal costs that may be incurred in defending civil or criminal proceedings that may be brought against the officers in their capacity as officers of entities in the Group, and any other payments arising from liabilities incurred by the officers in connection with such proceedings. This does not include such liabilities that arise from conduct involving a wilful breach of duty by the officers or the improper use by the officers of their position or of information to gain advantage for themselves or someone else or to cause detriment to HIA. It is not possible to apportion the premium between amounts relating to the insurance against legal costs and those relating to other liabilities. Proceedings on behalf of the company No person has applied to the Court under Section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf of HIA, or to intervene in any proceedings to which HIA is a party, for the purpose of taking responsibility on behalf of HIA for all or part of those proceedings. Auditor’s Independence Declaration

A copy of the auditor’s independence declaration as required under Section 307C of the Corporations Act 2001 is set out on page 36.

Signed in accordance with a resolution of the Board of Directors:

Ross Alexander Lang Terrence Jenkins Director Director

Canberra ACT 11 April 2017

HIA ANNUAL REPORT 2016 | 35 Auditor’s Independence Declaration to the Directors of Housing Industry Association Limited

36 | HIA ANNUAL REPORT 2016 The HIA Limited group of companies reported a consolidated surplus of Discussion $0.8 million for the year ended 31 December 2016. This compares with a $0.2 million surplus for the 2015 year. and Analysis Statement of Profit or Loss and Other Comprehensive Income The 2016 year saw the residential building industry commencing a record number of new homes across Australia. Much of the increase in activity centered around New South Wales, Victoria and South East Queensland. Whilst year-on-year improvements were seen in building activity, HIA achieved mixed results across the key commercial business units. A brief summary of the financial highlights includes: • An increase in group turnover of 1.7 per cent, from $67.5 million in 2015 to $68.6 million in 2016. • Revenue improvements were seen in the business units of HIA Apprentices, Events, HIA Vehicles, Membership, Economics, Home Inspiration Centres and Affinity Programs; however, declines were seen in Apprenticeship Grants, Australian Apprenticeship Centre, Insurance, Property, Stationery, Publications and Training Delivery. • HIA Group Apprenticeship Scheme assisted in HIA’s endeavours to address skill shortages in the building trade. The apprentice numbers remained stable and the Association successfully completed 109 apprentices during 2016. HIA continued to run the federal government funded Apprentice to Business Owner Program during the year, under which 100 tradespeople undertook small business training and business mentoring. • The Home Inspiration Centres continued to provide a focal point for the regions of ACT and Hunter and remain well supported by industry and consumers. Statement of Financial Position The Association’s financial position improved in 2016, with net assets increasing to $65.2 million, up from $64.4 million in 2015 due to the operating surplus made during the year. The increase in total assets was mainly attributed to improvement in the cash balance and the information technology systems redevelopment work undertaken during the year. HIA continues to maintain a very strong balance sheet with more than $65.0 million in net assets and five dollars of asset for every dollar of liability. Cash Flow HIA concluded the year with a $0.8 million cash balance, an increase of $0.5 million from 2015. The loan balance at the end of 2016 was $0.5 million. The loan was taken out to fund the purchase of capital assets. Net cash inflows from operating activities in 2016 were $2.4 million, an increase on the net inflows in 2015 of $0.2 million. Net cash flows from investing activities saw an outflow of $1.8 million in 2016 which was mainly attributed to investment in the business systems redevelopment program, compared with an inflow of $0.6 million in 2015. Net cash flows from financing activities in 2016 saw an outflow of $0.1 million, compared with an outflow of $3.1 million in 2015.

HIA ANNUAL REPORT 2016 | 37 Consolidated Statement of Profit or Loss and Other Comprehensive Income FOR HOUSING INDUSTRY ASSOCIATION LIMITED ACN 004 631 752 FOR THE YEAR ENDED 31 DECEMBER 2016 2016 2015 $ $

Revenue

Rendering of services 56,579,795 54,850,654

Sale of goods 5,824,868 6,102,121

Operating grants 4,837,313 5,251,406

Rental income 1,392,959 1,299,224

68,634,935 67,503,405

Cost of sales (29,453,911) (27,287,814)

Gross Profit 39,181,024 40,215,591

Finance income 13,484 15,734

Finance costs (57,598) (143,066)

Gain/(loss) on disposal of property, plant and equipment (39,355) 218,911

Depreciation and amortisation expenses (1,936,290) (2,044,746)

Administrative expenses including employee benefits (36,410,377) (38,051,787)

Profit for the year 750,888 210,637

Other comprehensive income

Items that will not be reclassified to profit or loss

Gain on revaluation of land and buildings - 3,280,231

Other comprehensive income for the year - 3,280,231

Total comprehensive income for the year 750,888 3,490,868

38 | HIA ANNUAL REPORT 2016 Consolidated Statement of Financial Position FOR HOUSING INDUSTRY ASSOCIATION LIMITED ACN 004 631 752

AS AT 31 DECEMBER 2016 2016 2015 $ $

ASSETS

Current Assets

Cash and cash equivalents 806,100 293,069

Trade and other receivables 3,741,920 3,657,663

Inventories 466,843 483,742

Other assets 2,411,006 2,064,369

Total Current Assets 7,425,869 6,498,843

Non Current Assets

Trade and other receivables 8,776 8,776

Property, plant and equipment 69,504,382 70,262,231

Intangible assets 4,347,413 3,740,676

Total Non Current Assets 73,860,571 74,011,683

TOTAL ASSETS 81,286,440 80,510,526

LIABILITIES

Current Liabilities

Trade and other payables 4,021,674 3,636,635

Income in advance 6,469,327 6,405,790

Provisions 4,396,344 4,760,858

Total Current Liabilities 14,887,345 14,803,283

Non Current Liabilities

Provisions 743,172 752,208

Borrowings 500,000 550,000

Total Non Current Liabilities 1,243,172 1,302,208

TOTAL LIABILITIES 16,130,517 16,105,491

NET ASSETS 65,155,923 64,405,035

EQUITY

Asset revaluation reserve 17,966,160 17,966,160

Retained earnings 47,189,763 46,438,875

TOTAL EQUITY 65,155,923 64,405,035

HIA ANNUAL REPORT 2016 | 39 Consolidated Statement of Changes in Equity FOR HOUSING INDUSTRY ASSOCIATION LIMITED ACN 004 631 752

FOR THE YEAR ENDED 31 DECEMBER 2016 Retained Asset Total Earnings Revaluation Equity Reserve $ $ $

Balance at 1 January 2016 46,438,875 17,966,160 64,405,035 Profit for the year 750,888 - 750,888 Balance at 31 December 2016 47,189,763 17,966,160 65,155,923

Balance at 1 January 2015 46,228,238 14,685,929 60,914,167 Profit for the year 210,637 - 210,637 Other comprehensive income for the year - 3,280,231 3,280,231 Total comprehensive income for the year 210,637 3,280,231 3,490,868 Balance at 31 December 2015 46,438,875 17,966,160 64,405,035

Consolidated Statement of Cash Flows FOR HOUSING INDUSTRY ASSOCIATION LIMITED ACN 004 631 752

FOR THE YEAR ENDED 31 DECEMBER 2016 2016 2015 $ $

Cash flows from operating activities Receipts from members and customers 74,500,024 60,967,577 Payments to suppliers and employees (72,068,346) (58,803,259) Interest received 13,484 190,636 Interest paid (57,598) (143,066) Net cash provided by/(used in) operating activities 2,387,564 2,211,888 Cash flows from investing activities Purchase of property, plant and equipment (886,338) (1,420,567) Purchase of intangibles (1,038,262) (669,805) Proceeds from sale of property, plant and equipment 100,067 2,659,624 Net cash provided by/(used in) investing activities (1,824,533) 569,252 Cash flows from financing activities Repayment of borrowings (50,000) (3,138,350) Net cash provided by/(used in) financing activities (50,000) (3,138,350) Net increase/(decrease) in cash and cash equivalents held 513,031 (357,210) Cash and cash equivalents at beginning of year 293,069 650,279 Cash and cash equivalents at end of financial year 806,100 293,069

40 | HIA ANNUAL REPORT 2016 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Notes to the Consolidated The concise financial report relates to Housing Industry Association Limited and the entities it controlled during and at the end of the year ended 31 December 2016. Financial Statements The concise financial report has been prepared in accordance withAccounting Standard AASB 1039: Concise Financial Reports and the Corporations Act 2001. FOR HOUSING INDUSTRY ASSOCIATION LIMITED The financial statements are presented in Australian currency and are rounded to ACN 004 631 752 the nearest dollar.

FOR THE YEAR ENDED EVENTS AFTER THE END OF THE REPORTING PERIOD 31 DECEMBER 2016 There are no events after the reporting period which requires amendment of, or further disclosure in, the concise financial report.

In the directors’ opinion: Directors’ Declaration (a) the financial statements and notes set out on pages 38 to 40 are in accordance with the Corporations Act 2001, including: (i) complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory professional reporting requirements, and (ii) giving a true and fair view of the consolidated entity’s financial position as at 31 December 2016 and of its performance for the year ended on that date, and (b) there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable. This declaration is made in accordance with a resolution of directors.

Ross Alexander Lang Terrence Jenkins Director Director

Canberra ACT 11 April 2017

HIA ANNUAL REPORT 2016 | 41 Independent Auditor’s Report to the Members of Housing Industry Association Limited

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