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Annual Report HIA -- the Voice of the Industry

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Annual Report HIA -- the Voice of the Industry 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
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