Creating tomorrow’s communities. Annual and Sustainability Report 2017-18
This report has been prepared in accordance with the GRI Standards: Core option. Contents
01 Introduction and welcome 3
1.0 Welcome 4 1.1 Who we are 4 1.2 About this report 4 1.3 Report structure 5
02 Message from the chairman 6
03 Message from the chief executive 7
04 Performance at a glance 8
05 Purpose 11
5.1 Vision 12 5.2 Values 12 5.3 Key result areas 12 5.4 Projects 13 5.5 Future direction - Land agency reform 14
06 Defining the content of this report 15
6.1 Approach 16 6.2 Value chain 23
07 Performance 26
7.1 Integrated project outcomes 27 7.2 Relationships and partnerships 69 7.3 Market leadership and innovation 74 7.4 Organisational and commercial sustainability 82
08 Corporate governance 94
09 Financial statements 113
10 GRI content index 153
2 SECTION 01
Introduction and welcome
01 Cockburn Central West
INTRODUCTION AND WELCOME 3 SECTION LandCorp is a Government 01 trading entity established under the Western Australian Land Authority Act 1992.
Koombana North foreshore and Bunbury Waterfront vista
1.1 Who we are 1.2 About this report The Western Australian Land This Report presents our 1.0 Welcome Authority, trading as LandCorp, performance for the financial year is a publicly owned State 1 July 2017 to 30 June 2018, and We pay our sincerest Government Trading Enterprise adheres to the requirements set (GTE) established under the out in the Western Australian Land respects to Elders, Western Australian Land Authority Authority Act 1992. Act 1992 (the Act). Governance past and present, and Separate sustainability reports is managed via an independent have been produced since 2013-14. Board of Directors and reporting to commit to working This is our first combined Annual Parliament though the Minister for and Sustainability Report and respectfully together Transport; Planning; Lands who is reflects a commitment to integrate responsible for the Act. so we can move to a sustainability within the business. We are the principal agency of the Information in this report has place of equity, justice State authorised by the Western been prepared in accordance Australian Parliament to deliver with the Core and partnership. Government policy objectives GRI Standards: option. Guidance provided in the with regard to land development. We are committed Government of Western Australia Our Act requires we provide or Public Sector Commission Annual to fostering a long- promote the provision of land, Reporting Framework has also infrastructure, facilities and been used. term relationship services for the social, economic and environmental needs of the with Traditional Land In line with the WALA Act, we take State. We work to realise the account of and balance social, Owners as we create potential of land and infrastructure economic and environmental by developing land for housing, outcomes. Using the GRI Standards new places across business and industry to build social as part of our annual reporting and economic prosperity for all ensures we assess our performance Western Australia. Western Australians. against globally accepted sustainability reporting principles and measures.
INTRODUCTION AND WELCOME 4 SECTION 01
The Quarter, Karratha
1.3 Report structure
Message from the chairman
Message from the chief executive
Performance at a glance
Purpose
Vision Values Projects Future direction
Defining the content of this report
Approach Value chain
Performance
Integrated project outcomes Relationships and partnerships Market leadership and innovation Organisational and corporate sustainability
Corporate governance
Financial statements
GRI content index
INTRODUCTION AND WELCOME 5 SECTION 02
Looking at the full spectrum of land planning and delivery required in the coming years, the scale of Western Australia’s future development agenda cannot be understated.
From the chairman 2017-18 was a year of great significance Marina and a range of infill, industrial for LandCorp. and innovative projects in sites across the Western Australian community. It is now 25 years since the agency was formed and began to play its Establishment (in June) of the crucial role in contributing to Western Industrial Land Authority within Australia’s social and economic LandCorp completed a key electoral prosperity. This year also marked undertaking of Government. the beginning of a profound change The ILA has a simple mandate of land which will see the creation of a new for jobs. land planning and delivery agency for our State. The intent is to work closely with government partners and industry In November, Minister for Lands the to deliver appropriately configured Hon. Rita Saffioti MLA announced land for new projects, industries and period of the land agency the operations of LandCorp and capabilities required to support our reform process. the Metropolitan Redevelopment State’s growth. I am particularly grateful to the Authority would merge to form a new Directors of the Western single agency for government land Looking at the full spectrum of land Australian Land Authority for their development across metropolitan planning and delivery required in the focus and diligence in respect of and regional Western Australia. coming years, the scale of Western the opportunities presented by Board memberships common to Australia’s future development the land agency reform process both organisations took effect from agenda cannot be understated. now underway. January 1, 2018. There are exciting times ahead for The balance of this Annual Report The challenge to the new Directors is Western Australia, with significant provides a very complete account to superintend the process to create new projects on the horizon which of the achievements and efforts of a new organisation that can facilitate can optimise our state’s natural the management team and the men and deliver a range of transformative advantages, infrastructure, transport and women who compromise the outcomes associated with Metronet and freight networks to best effect. LandCorp workforce. It also records – and to meet the continuing It is appropriate to thank and the important contributions of a challenges of a changing city and acknowledge the former Chairman, range of government and business a large state. Inside that vision the Monty House and outgoing members partners who have contributed to the provision of land for jobs, planning of the Board – Peter Cooke, Peter LandCorp story for 2017-18. Thank outcomes for communities and Gibbons and Sue Middleton. They you to all for the role you have played. places for people is a central tenet. can be proud of their achievements Finally, I wish to acknowledge the Our focus is to ensure a streamlined, during their time with LandCorp leadership and engagement of the consistent and efficient approach to and I thank them for their significant Minister for Lands, the Hon. Rita delivering key Government priorities contribution to the State. I also wish Saffioti MLA for her support for the such as METRONET, and to continue to acknowledge the contribution of agency and its purposes. with transformational projects such as Paul Lakey who served on the new the Bunbury Waterfront, Ocean Reef Board during the commencement George McCullagh
MESSAGE FROM THE CHAIRMAN 6 SECTION From the chief executive 03 With a number of significant The successful launch of Alkimos Vista milestones attained, reflecting on has delivered significant sales and 2017-18 has proved a satisfying and builder endorsement, and both stages enjoyable exercise. However, the 1 and 2 at Parkside Walk Jolimont process to single out highlights achieved outstanding sales. At from the volume of impressive work Blackmore Park Estate, Girrawheen, all undertaken by the various teams lots released are now under contract. that brought them to life has been Civil works commenced at Middleton a challenge. Beach in Albany, where we are According to property pundits, the working to deliver a much-anticipated the Water Corporation and Tianqi past financial year saw the property mixed-use hotel, retail and residential formalised a request to expand the market bottom out. However, despite accommodation precinct. lease area for its lithium plant, which an industry-wide slump in sales, Despite challenging climatic conditions, is already under construction and there were some bright lights across the Smart Sun Pilot, a collaboration we entered options to lease for two our residential, commercial and with Horizon Power at Warranyjarri further lithium plants at Kwinana industrial areas, thanks to a delivery Estate in Broome North, is underway. and Kemerton. program designed to withstand Results for the Cool Earth geothermal market fluctuations. energy trial in Craigie have been Future challenges and opportunities Across our State, significant, local, positive. Over a nine-month period, the include delivering the next generation national and international investment geo-exchange system has delivered of economic and employment is visibly changing the development remarkable energy saving achieving land through the ILA. During landscape and we’re moving to meet up to 75 per cent greater efficiency 2018-19, we will consolidate our new challenges and opportunities. when cooling the home in summer and operations with the Metropolitan Innovation-led planning and design 35 per cent improved efficiency when Redevelopment Authority under a over the past 12 months has resulted heating the home in winter. These unified operating model and progress in confirmation of WA’s first medi- results equate to a saving of up to Government priorities. hotel, at the Murdoch Health and $900 per year in electricity costs. Throughout this process, our focus will Knowledge Precinct, being delivered I am proud to say that we were remain firmly on project delivery and by the Fini Group and best-practice a signatory to the Kariyarra ILUA continued support for communities multi-generational living, at Claremont Signing Ceremony, an important across Western Australia. on the Park. event marking the State’s In closing, I would like to acknowledge Waterfront redevelopment at Ocean commitment to the Kariyarra people the LandCorp Board, my Executive, Reef, Bunbury and Albany will make and their claim to country. their teams and the many the most of our celebrated coast and Strategic EOI processes for land Government and private sector create world-class destinations for in Karratha’s Tambrey Shopping stakeholders who work with us to the future. Precinct and City Centre attracted deliver the best outcomes for the Montario Quarter, on the site keen interest from local and national State and for all Western Australians. of the former Shenton Park investors and developers, with Without their support, none of what Rehabilitation Hospital, will become negotiations progressing. we have achieved would be possible. a connected, vibrant, urban retail and residential village. At Kwinana Strategic Industrial Area, Thank you all. a significant parcel of land sold to Frank Marra
Across our State, significant, local, national and international investment is visibly changing the development landscape and we’re moving to meet new challenges and opportunities.
MESSAGE FROM THE CHIEF EXECUTIVE 7 SECTION 04
Performance at a glance
04 Newman Town Centre
PERFORMANCE AT A GLANCE 8 SECTION 4.1 Integrated project outcomes 04
Metropolitan highlights Regional highlights Industry and infrastructure highlights 1,045 20 residential dwelling unit equivalents 315 general industrial created, with another residential dwelling unit lots were created, 203 lots with 396 equivalents created, with and another 112 dwelling unit another 1,571 dwelling developed industrial equivalents available unit equivalents available lots available across the State 84% 914 of residential lots available for consumers land created was to immediately purchase in all regions within WA, with in urban infill a combined market value of developments over $320 million 32 industrial and commercial lots (42.6 hectares) sold which will result in 67.8% 73.6 businesses of lots sold across 739 jobs metropolitan 85.7% Perth sold at an of lots sold across regional WA $390.17 million in affordable price sold at an affordable price economic output
4.2 Relationships and partnerships
Purchaser satisfaction rating of 7 90% active partnering projects
New stretch $1.1m 66.2% Reconciliation Action spent on Aboriginal procurement budget Plan endorsed by enterprise procurement spent on local suppliers Reconciliation Australia
PERFORMANCE AT A GLANCE 9 SECTION 4.3 Organisational and commercial sustainability 04
Sold 14 properties on behalf of Government grossing $108m $303.6m in payments to in $18.3m Government revenue
Qualified for a 23.5 WorkSafe Plan 165 hours Platinum Certificate of FTW employees at of learning and development Achievement 30 June 2018 training per employee
4.4 Market leadership and innovation
We ran our Planning Institute of Australia (WA) Award Winners
1st Innovation • The Goods Shed @ Claremont on week for staff with the Park for Community Investment • Claremont on the Park @ • 7 external presenters Claremont for Best Planning Ideas – Small Project • 6 LandCorp presenters • Montario Quarter @ Shenton Park • 68% of staff participating in an 6 projects with an active for Improving Planning Processes initiative to ‘hack’ our culture industry accreditation and Practices Property Council of Australia National Innovation and A new Australian Institute Excellence Awards IDEAS SPACE of Landscape Alkimos Beach for Best Master was launched - convertIng Planned Community Award an underutilised office into a Architects brainstormIng group work space. State Arts and Culture (WA) Awards Partnership Honours Award
• Baynton West Karratha for Parks Collaboration with FORM on the Urban Development and Open Space Excellence Goods Shed community hub @ Claremont on the Park Institute of Australia • Koombana North Bunbury (National) Awards – WA Medal and Civic Landscape Excellence Urban Development Institute of Alkimos Beach for Australia (WA) Awards Best Residential Australian Water • WGC @ White Gum Valley for Urban Association Awards Water Excellence and Sustainable Development Urban Development • WGC @ White Gum Valley for • The Playground @ Coolbellup in Australia Sensitive Urban Design for Best Residential Development under 250 lots
PERFORMANCE AT A GLANCE 10 SECTION 05
Purpose 05
PURPOSE 11 SECTION 5.1 Vision 05 To realise the potential of land and property across Western Australia by delivering excellence in new and revitalised residential and economic centres.
We operate to realise the potential of land, Government assets and infrastructure by providing balanced environmental, social and economic outcomes for the benefit of all Western Australians. With projects spanning metropolitan, regional, industrial, tourism and commercial developments, we create large and small developments, adopt an integrated approach and act commercially, Disrupt ’17 providing a return to Government for reinvestment. 5.3 Key result areas 5.2 Values Corporate strategy is focussed Promote and provide Values underpin the way we work on four key result areas to drive our property and project and guide our relationships with priorities and actions. management expertise each other and with our partners, to achieve outcomes on • Integrated project outcomes: stakeholders and customers. Government priorities. Be agile and responsive. Adopt Our values are colloquially known • an integrated view across Market leadership and as ‘CARA’: the whole State, a region, innovation: Commit to sustainable development and Collaborate Be supportive and a town or market segment. leading industry initiatives responsive to others. Deliver excellent projects and outcomes consistent with by Innovation through Achieve Adopt a positive Government commitments Demonstration to accelerate attitude and and policy. Meet customer and the adoption of new concepts encourage effective communities’ needs. Maximise in urban, regional and industrial outcomes. internal efficiencies. development sectors. • Relationships and partnerships: • Organisational and commercial Respect Act with integrity Create value for Government by sustainability: Build a highly and listen. building on our track record of skilled, engaged and values Adapt Be innovative and delivering social and economic driven workforce and robust open to change. outcomes aligned to Government systems to support our efforts policy, and solving problems to deliver balanced triple for Government. Continue to bottom line outcomes. Focus build on strong relationships on being market responsive, and partnerships with other self-funded, investing capital for Government departments and the future, delivering significant agencies, private sector suppliers, value projects and delivering communities and stakeholders. targeted financial returns to the State Government.
PURPOSE 12 SECTION 05 5.4 Projects This map highlights LandCorp’s key projects across Western Australia Kimberley Ord-East Kimberley Residential –– Mixed Use Expansion Project Broome North Industrial Head Office Waranyjarri Estate Broome North Gurjarra LIA: Light Industrial Area Regional Office Broome Haze Industrial Broome Road Industrial Kununurra, Lakeside Park SIA: Strategic Industrial Area Kununurra, Coolibah Estate Broome Weaber Plain Light Industrial, Kununurra Halls Creek Moonamang Road Extension
Gascoyne Port Hedland Carnarvon NorthWater Carnarvon Cornish Street Light Industrial Karratha Pilbara –– Exmouth Marina Village Gap Ridge Industrial Estate Karratha City Centre South Hedland Exmouth Nimitz Estate Gap Ridge Homemaker Centre Baynton West Town Centre Hedland Junction Madigan at Baynton West Boodarie SIA Wedgefield Industrial Estate Newman Town Centre Burrup SIA Newman LIA Newman Horizons Ashburton North SIA Former Port Hedland Anketell SIA Hospital site Perth and Peel Karnup Parkside Walk, Jolimont WGV at White Gum Valley Mid West –– Montario Quarter, Geraldton, Batavia Coast Marina Shenton Park Oakajee SIA Allara, Eglinton Narngulu Industrial Estate –– Alkimos Central Various RDAP projects, including: –– Cockburn Central West Green Head –– Cockburn Central Leeman Alkimos Beach Kalbarri Alkimos Vista Mt Magnet LIA –– Claremont on the Park Mabawa –– Rockingham City Centre Morawa Western Trade Coast, Cue including: Australian Marine Complex Latitude 32- Industry Zone Latitude 32- Flinders Precinct Goldfields-Esperance Rockingham Industry Zone GreenView at Karlkurla Kwinana SIA Karlkurla Rise Forrestdale Business Anzac Drive Industrial Estate Park - Crossroads Industrial Anzac Drive West –– Shoreline, North Coogee –– Cockburn Commercial Park Wheatbelt Knutsford Precinct Avon Industrial Park Meridian Park, Neerabup Various RDAP projects, including: Mandurah Junction Cervantes Mandurah Ocean Marina Dalwallinu Peel Business Park, Nambeelup Darkan Pinjarra Industrial Estate Dowerin –– Forrestfield Airport Link PERTH Hyden –– Murdoch Health and Knowledge Precinct Moora –– Ocean Reef Marina Narrogin –– Subi East Williams LIA Kensington Knowledge Precinct Beverley LIA Kwinana Education Precinct Bunbury Kellerberrin
Yerriminup Industrial Great Southern Area –– Albany Waterfront Various RDAP projects, –– Albany Middleton Beach including: South West Emu Point Gnowangerup Katanning Woodanilling Shotts SIA Kemerton SIA Denmark LIA Wagin Buckingham Way McLarty site Mount Barker –– Bunbury Koombana North (South West) Mirambeena –– Bunbury Waterfront Picton Enterprise Park Industrial Estate Collie LIA PURPOSE 13 SECTION 5.5 Future direction – Land agency reform 05 After acknowledging our 25-year The ILA is supported by a new Part of a commitment to deliver anniversary in July 2017, the second Industrial Land Steering Committee upon Government priority projects, half of the 2017-18 year focused on that includes the directors general LandCorp will assume a greater role in enacting land agency reform changes and chief executives of the supporting the delivery of METRONET and planning to merge the operations departments of Jobs, Science, through land use planning, land of LandCorp and the Metropolitan Technology and Innovation; Planning, amalgamation and sales activity. Redevelopment Authority under a Lands and Heritage; Transport; Consolidating and maximising land single operating model. Primary Industries and Regional use in and around METRONET Development and LandCorp. station precincts will ensure a good A common chairman and directors, This new, whole-of-government, return on investment and establish led by former Deputy Chair, George statewide approach to industrial land high levels of amenity and activity to McCullagh, oversee the land agency development provides a focus on: support existing businesses within the reform process. • A single point of contact METRONET roll-out. to promote investment Part of this reform process resulted The development of Ocean Reef opportunities in existing and new in the creation of the Industrial Marina has progressed in the technology parks. Lands Authority (ILA), a dedicated past year with the appointment body that will initially sit within the • Delivering new industrial land of a core team to deliver the LandCorp business. for emerging sectors of our project. The Memorandum of economy such as agribusiness The ILA will take responsibility for Understanding between LandCorp, and renewables such as wind or existing general industrial projects the State Government and the City of solar power. and strategic industrial areas across Joondalup was signed in March 2018. WA, including, among others, the • Streamlining approval processes This sets out the collaborative working Western Trade Coast, Gap Ridge in to stimulate further private sector relationship, roles and responsibilities Karratha, Kemerton in Bunbury and investment. For example, exploring between the parties to guide the Peel Business Park in Nambeelup. with the Department of Planning, delivery of a world-class waterfront Lands and Heritage the possibility precinct in Perth’s northern suburbs Over the course of our 25-year history, of an Industrial Development and deliver more than 500 boat the delivery of long-term sustainable Assessment Panel. The aim for the pens, land for tourism and 1,000 new industrial estates has represented panel would be for more consistent homes in a diverse coastal village. a significant part of our business and faster decision making on LandCorp’s $250 million investment and has enabled the creation of industrial applications. over the life of the Ocean Reef Marina 3,000 businesses employing 50,000 • Attracting new and innovative project in public and local infrastructure people. Current and future estates will industries such as data centres, will allow for forward works and open provide a home for 2,500 businesses, robotics and automation. employ a further 42,000 people and the door for future private sector deliver an annual economic impact of investment expected to be worth more $14.7 billion. than $500 million and result in the creation of approximately 900 jobs.
Significant investment is also well-advanced with regard to the transformation of Bunbury’s iconic waterfront precinct to prepare the Greater Bunbury Region for its inevitable generational and economic growth as WA’s ‘second city’. Overseen by the recently formed Bunbury Development Committee, the rejuvenation and delivery of this iconic area is a collaboration with the City of Bunbury, South West Development Commission and Department of Transport to drive investment and sustain the south west of our State.
PURPOSE 14 Disrupt ‘17 launch SECTION 06
Defining the content of this report
06 Highland Range, Jane Brook
[GRI Standards 102-46] DEFINING THE CONTENT OF THIS REPORT 15 SECTION 6.1 Approach 06 Content for this report is directed • Government (Federal, State • Suppliers (consultants, by the GRI Standard’s materiality and local government): we are contractors, architects and process which identified the most accountable to the Minister for selling agents): we engage with significant and important issues to Transport; Planning; Lands. We our suppliers formally through develop strategies, work towards and engage frequently with all levels our procurement and contract report performance against. Material of Government, formally through management processes and issues reflect significant economic, various committees, taskforces, informally through meetings and environmental and social impacts. Memorandums of Understanding industry forums. They are important to our business or partnership agreements and • Universities and research institutes: and stakeholders and help prioritise informally, through strategic and we engage with universities and the report content and communicate project oriented meetings and research institutions formally to stakeholders in a meaningful way. events. The State Government to work together on research, and Metropolitan and Regional pilots, trials and initiatives to The following section outlines our Local Government Stakeholder address common industry and approach to refresh our existing Engagement Schedules are community challenges. materiality and respond to the reviewed every six months and • Employees: we have quarterly four principles for defining report updated as required. content within the GRI Standards. briefings for all staff to share • Customers: we engage with This involves considering our knowledge and organisational potential customers through organisational activities, impacts, milestones. There is also a program of community engagement and and the expectations and interests ‘101 knowledge sharing sessions’ by customers through the purchasing of our stakeholders. staff for staff, a culture group of staff process. We survey residential representatives who seek to improve Principle one: customers to monitor performance workplace culture, and a regular Stakeholder inclusiveness during the purchase process. update and online opportunity for • Private sector (development conversations with the CEO. We This principle involves responding industry, builders, peak bodies regularly undertake internal surveys to the reasonable expectations and and the mining and resource to understand staff views. interests of our stakeholders. We sector): we review private sector identify stakeholders by using a variety We have more than 140 active stakeholder engagement schedules of methods and tools that include land development projects. Our every six months and engage analysis of power, interest and risk. Customer Relationship Management with the private sector frequently, system helps monitor, manage and We engage regularly with six key formally through initatives such as capture stakeholder and relationship stakeholder groups: EOIs and tenders and joint venture interactions, interest areas and public partnerships for the delivery of feedback. The following table outlines specific projects and informally our seven key stakeholder groups through strategic and project and key topics and concerns raised oriented meetings and industry by them throughout our regular forums. We also hold memberships engagement processes. We have with key industry and business not undertaken specific stakeholder associations, with staff represented research for the preparation of this on several industry committees. report. Stakeholder interests and concerns informed the identification of material issues for this report.
[GRI Standards 102-40; 102-42; 102-43; 102-44; 102-46]
Mandurah Junction DEFINING THE CONTENT OF THIS REPORT 16 SECTION
Table 1: Stakeholder interests and concerns by stakeholder group 06
Government (Federal, State and Local Government) • Land agency reform changes to deliver a single operating • Integrated land and transport planning creating model by 2019. hubs of activity, and specifically supporting the • The development and supply of land and infrastructure for Government of Western Australia’s METRONET jobs and housing. plan to deliver rail projects, connect suburbs, reduce road congestion and meet Perth’s future • Economic development – jobs, infrastructure, industry planning needs. investment and expansion. • Management of social, economic and • Collaboration to achieve land, planning, infrastructure and environmental impacts, delivering outcomes transport outcomes. acceptable to the community of Western • Good governance and transparency, efficient commercial and Australia and demonstrating innovation. operational management. • Payments to Government. • Land for jobs through the Industrial Lands Authority (ILA) which sits within LandCorp.
Private sector (development industry, builders, peak bodies and the mining and resource sector) • The development and supply of land and infrastructure that • Working together on project delivery with de-risks and addresses market failure for commerce, industry, common goals including safety, financial return, employment and housing across Western Australia. efficiency and flexibility in optimising benefits, • Changes as a result of the State Government’s Land risk management and transparency. Agency Reform. • Demonstration of leadership in innovation that de-risks ideas and technology to encourage and facilitate replication.
Suppliers (consultants, contractors, architects and selling agents) • Working together on joint projects and programs with • Transparency and good governance. common goals. • Changes as a result of the State Government’s • Transparent processes and effective communication through Land Agency Reform. the procurement process.
Alkimos Beach
[GRI Standards 102-40; 102-42; 102-43; 102-44; 102-46] DEFINING THE CONTENT OF THIS REPORT 17 SECTION
Table 1: Stakeholder interests and concerns by stakeholder group cont. 06
Communities • Economic, environmental and social impacts and outcomes • Key themes from community consultation from land and infrastructure development. include environmental impacts, design quality, • Transparency and good governance. access and connection to amenities, public transport, traffic and parking impacts, and • Community engagement processes that demonstrate construction impacts such as dust and noise. listening and balancing competing interests fairly to achieve positive outcomes.
Customers • Land for housing and business opportunities. • Well located land for industry and business that • Excellent community infrastructure and outcomes including: is close to markets, suppliers and labour with affordability; nearby schools; attractive parks and playgrounds; excellent transport and service infrastructure. a choice of lot sizes; well-maintained footpaths and cycle • A smooth and simple purchase process. ways; and effective design guidelines.
Universities and research institutes • Working together on research, pilots, trials, and initiatives to • Innovative economic, environmental and social address common industry and community challenges. outcomes in land development projects.
Employees • Working on interesting and challenging projects that achieve • Leading by example in sustainable development positive outcomes. and innovation. • Providing a safe, fair and productive environment with a • Adopting changes as a result of the State supportive culture. Government’s Land Agency Reform process. • Providing opportunities for learning, development and career progression.
For the development of our next report, we will undertake stakeholder engagement as part of the materiality process to direct the content of our report, and to understand any changes in the views, expectations and information requirements of our key stakeholders.
[GRI Standards 102-40; 102-42; 102-43; 102-44; 102-46] DEFINING THE CONTENT OF THIS REPORT 18 SECTION 06
Sustainable Development Goals seek to end poverty, protect the planet and ensure prosperity for all.
Principle two: Sustainability context
This principle requires that we compromising the ability of future 17 Sustainable Development Goals consider reporting performance in the generations to meet their own needs. (SDGs) in September 2015. The SDGs wider context of sustainability. The seek to end poverty, protect the planet most widely accepted definition for The United Nations Sustainable and ensure prosperity for all. Each sustainable development is from Our Development Goals are a universal goal has a series of actions and targets Common Future (1987), by Harlem and international consensus on to achieve over the next 15 years. For Brundtland who defined sustainable sustainable development. The the first time the United Nations set development as development that Australian Government became an urban goal ‘sustainable cities and meets the needs of the present, without a signatory to the United Nations communities’ as part of the SDGs.
A number of industry frameworks The Urban Development Institute of to live like the average Australian, we define, promote and assess Australia’s (UDIA) EnviroDevelopment would need more than four planets to sustainability performance across national compliance based rating tool, support the current world population. various focus areas. The Green consists of six elements or ‘leaves’: It includes the following 10 principles Building Council of Australia’s (GBCA) Ecosystem, Waste, Energy, Materials, or aims: Zero Carbon, Zero Waste, Green Star Communities rating Water and Community. Bioregional’s Sustainable Water, Sustainable tool, a precinct scale tool covers six One Planet Living (OPL) Sustainability Materials, Sustainable Transport, Local categories: Environment, Economic Framework encourages communities and Sustainable Food, Land Use and Prosperity, Liveability, Design, to live within the limits of our planet’s Wildlife, Equity and Local Economy, Governance and Innovation. natural resources. It is based on the Health and Happiness, and Culture premise that if everyone continued and Community.
[GRI Standards 102-46] DEFINING THE CONTENT OF THIS REPORT 19 SECTION 06
Since 2008, we have defined Excellence, and Economic Health. and make the most of opportunities ‘sustainable development’ through These elements provide a for positive impact. Our framework four Sustainability Elements: framework for thinking, planning is robust as it aligns closely with the Environmental Responsibility, and designing to manage land and focus areas in the United Nations Community Wellbeing, Design infrastructure development impacts SDGs and industry frameworks.
Community wellbeing Environmental Design excellence Economic health responsibility Creating communities Protecting and managing Developing a built Maximising economic that are safe, healthy natural systems, habitat environment that ensures development opportunity, and enjoyable places and biodiversity, and attractive, accessible and while optimising the to live and work, with efficiently and innovatively adaptable places that environmental, social access to appropriate and managing energy, water, contribute to a distinctive and economic benefits affordable housing and resources and materials. identity and sense in accordance with State creating opportunities of place. Government strategies. to foster active local communities.
Principle three: Materiality
This principle requires that we • sustainability context, future The criteria for ‘significance of report on significant economic, challenges, opportunities economic, environmental and social environmental and social impacts and trends; impact’ were: and on topics that substantially • media and press; • degree of existing active influence the assessment and • relevant topics and issues within management through policies decisions of stakeholders. We the GRI Standards; and and processes; undertook a process to identify, • our understanding of stakeholder • reasonable estimates of financial prioritise and validate a list of expectations and interests and other risk; reportable topics for inclusion in raised through our normal • reasonable estimates of this report. engagement activities. the extent of economic, Identification environmental and social Prioritisation We undertook a desktop analysis impact; and The list of material topics were including the following to identify a • potential opportunity for positive assessed to determine relative list of material topics: impact, including innovation. priority. The assessment involved • previous materiality assessments; scoring the topics against the two The criteria for ‘influence on • social, economic and materiality principle parameters: stakeholder assessment and environmental impacts; significance of economic, decisions’ were: • government regulation, policy environmental, and social impact; • level of peer response; and priorities; and influence on stakeholder • level of internal stakeholder assessment and decisions. • LandCorp policy, procedures, interests and expectations; risks, strategy and past material Each parameter had four equally • level of external stakeholder topics and issues; weighted criteria. Higher scores interest and expectation; and • material topics and issues represented higher significance and • level of media and advocacy of peers; importance. While scoring involved group interest. • sustainability context including a level of subjectivity the scoring sustainability topics covered in criteria were designed to ensure the United Nations SDGs and consistency. This scoring resulted in accreditation tools adopted by a materiality matrix. the development industry;
[GRI Standards 102-46] DEFINING THE CONTENT OF THIS REPORT 20 SECTION
Validation 06 The prioritised materiality matrix and matrix for inclusion in this equal importance – the content was presented to our Strategy report. The resulting materiality of this report attempts to reflect and Innovation team who sense matrix is shown in Figure 1. Not all the relative priority outlined in this checked and validated the scoring material issues and topics are of materiality matrix.
Figure 1: Materiality matrix
Higher
9. 10.
8. 11. 1. 4. 7. 2,3. 5. 1. 1. 1. 6. 2. 2. 4.
3. 3. Influence on stakeholder assessment and decisions assessment stakeholder on Influence
Lower Lower Significance of economic, environmental, and social impacts Higher
Key
Integrated project outcomes Organisational and Relationships and partnerships commercial sustainability 1. Economic development 1. Supply chain 1. Staff diversity Waste Stakeholder and 2. and wellbeing 2. customer satisfaction 3. Culture and heritage 2. OSH 3. Property services 4. Energy 3. Anti-corruption . 5. Equity and inclusion 4. Financial resilience 6. Water
7. Biodiversity Market leadership and 8. Engaging and building innovation local communities 1.1. Innovation through 9. Land for jobs Demonstration
10. Land for housing and community
11. Design quality
[GRI Standards 102-44; 102-46; 102-47] DEFINING THE CONTENT OF THIS REPORT 21 SECTION Principle four: Completeness 06 This principle requires we sufficiently above reflect significant economic, The table below outlines the cover significant economic, environmental and or social impacts, alignment between LandCorp’s environmental and social impacts. and will enable stakeholders to material issues and the United The material issues identified assess performance. Nations SDGs.
1. No poverty 2. Zero hunger 3. Good health and well-being • Equity and inclusion • Equity and inclusion • Equity and inclusion • Engaging and building local communities • Staff diversity and wellbeing • Occupational Safety and Health
4. Quality education 5. Gender equality 6. Clean water and sanitation • Engaging and building • Staff diversity and • Water local communities wellbeing • Land for jobs • Culture and heritage • Land for housing and community
7. Affordable and 8. Decent work and economic 9. Industry, innovation clean energy growth and infrastructure • Energy • Land for jobs • Land for jobs • Equity and inclusion • Economic development • Economic development
10. Reduced inequalities 11. Sustainable cities and communities • Equity and inclusion • Land for jobs • Engaging and • Waste • Staff diversity and • Land for housing building local • Water wellbeing and community communities • Economic • Design quality • Equity and inclusion development • Culture and heritage • Biodiversity • Innovation through • Energy demonstration
12. Responsible consumption 13. Climate action 14. Life below water and production • Energy • Water • Supply chain • Water • Biodiversity • Waste • Biodiversity • Waste
15. Life on land 16. Peace, justice and 17. Partnerships for the goals • Water strong institutions • Engaging and building • Biodiversity • Anti-corruption local communities • Stakeholder and customer satisfaction
Topic boundaries for each A topic boundary is a description As part of our commitment to the material issue are outlined in the of where the impacts occur and our GRI Standards we disclose our performance section of this report. involvement with those impacts. management approach for material issues which can be found online.
[GRI Standards 102-46] DEFINING THE CONTENT OF THIS REPORT 22 SECTION 06
6.2 Value chain on the lifecycle stage and specific project needs, we tailor our approach We are involved in each stage of and apply our diverse skill sets to a land and infrastructure project, deliver a wide-range of small and from initial identification of land large development projects to needs through to detailed planning, add value to Government and the construction and sales. Depending Western Australian community.
Our value chain, illustrates how we add value to realise the potential of land, identifies our key impacts, competencies and how our supply chain assists throughout the lifecycle of a project.
DEFINING THE CONTENT OF THIS REPORT 23 SECTION 01 Project start up 06 Ideas, opportunity and initiation.
How we add value to realise the potential of land Our core competencies We consider opportunities for strategic land • Project management - business development. supply in consultation with Government • Due diligence, feasibility, challenges and stakeholders, and in line with Government policy. opportunity analysis. We decide which projects to undertake and we • Property advisory services. look for opportunities to work together with • Stakeholder engagement. other parts of Government and the private sector. • Sustainability and innovation Our impacts – the effect we have on the opportunity identification. economy, environment and society We undertake due diligence and analysis to How our supply chain helps us understand any potential positive and negative Specialist advice on due diligence topics social, environmental and economic impacts with including environmental, contamination, a potential project. Based on this understanding heritage, and engineering. we identify the high-level aspiration, objectives and approach, appropriate for each project.
02 Definition Detailed level business case planning.
How we add value to realise the potential of land Our core competencies We define the detailed scope of projects and • Project management – contamination the opportunity projects have to influence remediation, and planning and approvals. our material issues and achieve Government • Stakeholder and community engagement. policy goals. We formalise Government and • Property advisory services. private sector partnerships and investment. We • Risk and OSH management. create detailed plans in collaboration with local communities and stakeholders that are then • Sustainability and innovation planning. lodged for planning approval. How our supply chain helps us Our impacts – the effect we have on the Specialist skills including geotechnical engineers, economy, environment and society probity auditors, environmental auditors, A planned approach which details how negative and project risk facilitators. Consultants for social, environmental and economic impacts planning and urban design, safety, surveying, will be avoided, mitigated or managed and how sustainability, bushfire planning, stakeholder positive impacts will be optimised. and community engagement, heritage and community development. Private sector partnerships may result in private sector investment in development project/s. Consultant jobs are created and we develop detailed concepts and plans and achieve planning approval. An impact resulting directly from the planning process includes the strength of stakeholder and community relationships.
DEFINING THE CONTENT OF THIS REPORT 24 SECTION 03 Execution 06 Civil works and construction.
How we add value to realise the potential of land construction impacts also include noise, dust, Value is created at this stage through the and change to traffic and parking. implementation of our plans and the creation of Positive impacts include construction jobs and construction jobs required to deliver projects, the physical creation of developed land and leading to the physical establishment of social, infrastructure (upgrading power, water and economic and environmental infrastructure to other infrastructure, improving traffic flows and support land delivery. parking, beautifying streetscapes and town Our impacts – the effect we have on the centres, and providing new community facilities). economy, environment and society Our core competencies Land delivery for housing and jobs has an impact • Project management – implementation. on the pre-existing environment. Impacts may include vegetation clearing, disturbance of habitat, • Risk and OSH management. soil and natural hydrology. Positive impacts • Stakeholder and community engagement. include land decontamination and remediation, • Marketing and communications. rehabilitation, landscaping and replanting. How our supply chain helps us Indirect impacts of construction activities Consultants for planning, urban design, include emissions associated with vehicle engineering and landscape architecture. movement and waste generation from Contractors for demolition and site remediation, demolition and construction. Short term civil works, earth works and landscaping.
04 Creating communities Sale of land, construction of buildings and creating places for living and jobs.
How we add value to realise the potential of land Impacts associated with new communities At this stage, financial and reputational value is include nutrient run-off, litter pollution, created through the sale of land and creation introduction of feral/invasive species, changes to of places for living and jobs. Value is created for end-user traffic/parking behaviour, and end-user our customers through their purchase of land energy and water use and waste generation, and and for the local community through their access ongoing maintenance for local government. to amenities, infrastructure, public space and Positive impacts associated with new communities jobs. As a land developer we are not always include the establishment of a new community of involved in built form, however we add value by businesses, customers, workers and households. influencing the built form through procurement practices, design reviews and design guidelines. Our core competencies • Project management – sales and conveyancing. Our impacts – the effect we have on the economy, environment and society • Risk and OSH management. Land and infrastructure is delivered and ready for • Marketing and communications. sale, facilitating housing and business. Changes • Stakeholder, community and facilitated through land delivery may include customer engagement. increases in density, affordable and social housing, • Asset management. heritage and culture recognition, liveability, built form quality, biodiversity and public open space. How our supply chain helps us Selling agents and consultants for community Customer behaviour determines water and engagement, community development and place energy use, waste and transport choice. We activation, as well as architects and building have little direct control over these impacts, designers if we are involved in delivering built form. however we do seek to create the infrastructure to support reductions in water and energy use and waste, and improved transport choices.
DEFINING THE CONTENT OF THIS REPORT 25 SECTION 07
Performance
07 Gap Ridge Industrial, Karratha
PERFORMANCE 26 SECTION 07
Performance for 2017-18 is organised by our four key result areas.
7.1 Integrated project outcomes
Objective Material issues
We will be agile and responsive, • Land for jobs • Waste adopting an integrated view across • Land for housing and community • Engaging and building the whole State, a region, a town or local communities market segment to deliver excellent • Economic development • Design quality projects and outcomes consistent • Biodiversity with Government commitments and • Water • Equity and inclusion policy, which meet customer and • Energy • Culture and heritage community needs and maximise internal efficiencies.
Land for jobs Land for industry and a diversified economy with a wider business delivery Topic boundary range of industries including science, 20 general industrial lots were We plan, design and deliver technology, medicine, manufacturing, released across Western Australia strategically located infrastructure tourism, agriculture, defence and others. during the year, including six and industrial land for commercial, Performance lots at Flinders Estate, six lots at light and heavy industrial uses across Karratha Gap Ridge and eight lots the State. By creating economic Establishment of the Industrial Lands and employment land we promote Authority (ILA) at Crossroads Industrial Estate in and facilitate investment, trade, job In November 2017, Government Forrestdale (table 2). opportunities and business expansion approved the establishment of the In addition to the lots released to drive economic growth. Industrial Lands Authority (ILA) during 2017-18, there are currently – an election commitment of the Future challenges and opportunities 112 developed industrial lots available Government. The ILA has since been include delivering the next generation across the State. Lots are available established within LandCorp and of economic and employment land. This at several estates, including Broome presents the opportunity to continue process is underway with developments Road General Industrial, Crossroads to drive industrial land delivery like Meridian Park at Neerabup, and Peel at Forrestdale, Narngulu at Geraldton, through existing projects and also Business Park in Nambeelup, part of the Karratha Gap Ridge, Port Hedland to work more closely with broader Transform Peel initiative. This will involve Wedgefield, Rockingham Industrial, Government and industry to deliver bringing a stronger focus on industry Pinjarra Industrial, Avon Industrial new projects and outcomes aligned investment and expansion, including Park and Meridian Park Neerabup. through technology parks, to create to Government priorities – more jobs jobs and drive projects to support and business investment.
Table 2: General industrial lots created in 2017-18 (based on land released)
Target Actual Developed lots available (excluding lots created in 2017-18)
20 general industrial lots. 20 general industrial lots. 112 developed lots available at 30 June 2018.
PERFORMANCE 27 SECTION 07
Key projects Western Trade Coast – strategic industrial area The Western Trade Coast is a strategic cluster of WA’s most important industrial areas between Woodman Point and Rockingham. Strategically clustered industrial estates within the WTC cover 3,900 hectares and currently generate 11,000 jobs.
The Australian Marine Complex (AMC) on Cockburn Sound has gained an international reputation as the nation’s leading industrial facility for defence, marine, technology, resource and related industries. Home to over 150 businesses, the AMC includes four precincts for fabrication, ship building, technology and support.
Kwinana SIA a strategic industrial precinct providing access to land in WA’s premier heavy industrial zone. Key tenants include Tianqi Lithium, BP Refinery, BOC Gases, Tronox, Coogee Chemicals and CSBP Limited.
Latitude 32 Industry Zone provides Australian Marine Complex for a range of general and transport industrial uses to support the the first non-residential development RIZ also includes an Innovation continued growth of industry. in Western Australia to achieve through Demonstration biodiversity this status. initiative through re-establishing a Comprising a number of industry threatened ecological community. precincts designed to provide synergies with surrounding areas. The Rockingham Industry Zone (RIZ) Project area: 3,900 hectares Expected year of completion: builds on the Western Trade Coast’s including Australian Marine 20+ years industrial capacity. Complex, Kwinana SIA, Latitude Target industries: 32 Industry Zone, Rockingham - strategic heavy industry RIZ was first certified with Industry Zone. Envirodevelopment in 2015 for - general and transport Lifecycle phase: sales the four elements of ecosystems, - manufacturing community, water and energy and re- Jobs currently being generated: - commercial 11,000 jobs - resource recovery certified in 2016 and 2017. Expected workers: there is - warehousing/storgage RIZ was the first industrial estate in the potential to generate - transport Western Australia to achieve this 22,000 indirect jobs contributing accreditation. In addition, the Water $28 billion per year towards Gross Corporation has endorsed RIZ as a State Product. WaterWise Development which is
PERFORMANCE 28 SECTION
Project area: 400 hectares 07 Lifecycle phase: built form construction Expected jobs: 20,000 indirect jobs in broader Neerabup Industrial Area Expected year of completion: 2079 Meridian Park, Neerabup
Meridian Park, Neerabup
Meridian Park comprises 400 growing North West corridor for the hectares of industrial land which is next 20 – 30 years. It is located within being developed collaboratively by the broader Neerabup Industrial Area LandCorp and the City of Wanneroo. expected to generate up to 20,000 Meridian Park is expected to meet the new employment opportunities. industrial land needs of Perth’s rapidly
Peel Business Park, Nambeelup
We are developing Lot 600, a 290 hectare industrial zoned development which forms the first precinct of the larger 1,000 hectare Peel Business Park.
Providing a major new focus of economic activity, employment growth and service delivery for the Peel region. Peel Business Park, part of the multi-million-dollar Transform Peel project, has been influenced by WA’s industrial growth trends. Five interconnected precincts will facilitate economic clustering of Agri-innovation, Peel Business Park, Nambeelup Renewable Energy, general industrial, Artist impression for illustrative purposes only light industrial, and commercial enterprises as the foundation for the overall success of Transform Peel. Project area: 1,000 hectares The agri-innovation precinct will Dwelling unit equivalents: around 160 business are expected to operate cater for innovative technologies from the first precinct in Peel Business Park associated with the agricultural Expected workers: approximately 2,000 indirect jobs sector. The Renewable Energy Expected commercial/ retail space: 290 hectares zoned industrial precinct will consolidate innovative technologies and new approaches Expected year of completion: Transform Peel integrated program is for energy solutions within the 35 years Business Park and the precincts for Innovation through Demonstration: new, innovative and sustainable General Industrial, Light Industrial, infrastructure with leading power provides is underway to deliver and Commercial enterprises further affordable and renewable energy options. The focus on sustainability support the economic development will continue with estate design, landscaping and efficiency measures to and growth of Western Australia reduce water consumption.
PERFORMANCE 29 SECTION 07
Alkimos Central Artist impression for illustrative purposes only
Alkimos Central Project area: 212 hectares Alkimos Central our new transit As a transit and pedestrian Expected dwelling unit orientated Activity Centre is located orientated development, the equivalents: 1,900 – 3,300 at the heart of the northern coastal centrally located Alkimos dwellings corridor between the Joondalup and METRONET station, expected to 13,500 Yanchep centres. be complete by early 2022, will Expected workers: indirect jobs be the centrepiece in maximising Alkimos Central has been planned the use of public transport. Expected commercial/ to provide the required key services, retail space: 67,000sqm an employment focus, a social place, Initial earthworks for the retail, 60,000sqm bulky a living community offering new METRONET station are expected goods retail and 140,000sqm residential options, a transport hub to commence in late 2018. commercial floor space together with the health, education Expected year of completion: and recreational amenities for Fully developed in 50 years. the circa 60,000 residents of the Alkimos-Eglinton District.
PERFORMANCE 30 SECTION 07
Land for housing and community Topic boundary Performance
Land and infrastructure for housing an opportunity to transition Metropolitan land for living and community is critical to support Perth into a connected city. In 2017-18, we released land for the future growth and development We will be working with the 1,045 dwelling unit equivalents of Western Australia. In regional METRONET Taskforce which (DUEs) in the metropolitan area. Western Australia, land for housing includes representatives from the DUEs provide an indication of how and community helps build and Department of Transport, Western many dwellings can be catered for support more permanent populations Australian Planning Commission, on the lots we create. Key releases and attract new residents. Department Planning, Lands in the metropolitan area included: and Heritage and individual local In the metropolitan area, • land for 70 dwellings at Parkside governments to deliver whole- Walk at Jolimont; development is focused on urban of-Government outcomes and • land for 325 dwellings at regeneration and revitalisation unlock infill precincts for future Murdoch mixed use precinct; where opportunities for development. While urban development are otherwise regeneration projects are complex, • a lot catering for 269 dwellings at constrained. New and revitalised requiring more resources and Montario Quarter in Shenton Park; hubs of activity are created that specialist skills, METRONET linked • land for 104 dwellings at Alkimos integrate planning and transport projects presents an important Beach; outcomes to optimise public opportunity to improve the • land for 25 dwellings at Alkimos transport infrastructure, community development of Perth as a denser, Vista (first release); outcomes and help the State more connected city. achieve infill targets. LandCorp • land for 42 dwellings at Allara have significant projects which will In the regions, our future challenge in Eglinton; contribute to the States METRONET will relate to facilitating the next • land for 35 dwellings at Shoreline delivery in key centres across Perth. wave of investment, industry in North Coogee, and development, jobs and tourism • a lot catering for 175 dwellings at Government investment in to deliver enduring benefits to Claremont on the Park. METRONET – a transport, land local communities, the Western use and infrastructure plan to Australian economy and the State. In addition to the DUEs created connect Perth suburban centres during 2017-18, LandCorp has 203 and create activated metropolitan developed lots (396 DUEs) available hubs for jobs and housing – offers as at 30 June 2018 (table 3).
Table 3: Metropolitan residential dwelling unit equivalents created in 2017-18
Target Actual Lots and DUEs available (excluding DUEs created in 2017-18)
800 DUEs 1,045 DUEs created (based on land released) 203 lots with 396 DUEs available as of 30 June 2018
PERFORMANCE 31 SECTION Key projects 07
Montario Quarter, Shenton Park Artist impression for illustrative purposes only
Montario Quarter, Shenton Park Project area: 15.8 hectares Lifecycle phase: civil works The redevelopment of the former Montario Quarter is located 400m construction from Shenton Park Train Station and Shenton Park Hospital site offers the Expected dwelling unit is the first operating Improvement next evolution of inner city living - equivalents: 1,100+ Scheme in the Perth Metropolitan area. an urban village within a landscape Expected residents: 2,000+ setting. It will include different housing Expected commercial space: It was recognised at the 2017 types to suit a variety of lifestyles, as 5,500sqm Planning Institute of Australia (WA) well as space for commercial, grocery Expected jobs: 850 direct and awards in the ‘Improving Planning and retail. More than 25 per cent of the indirect jobs Processes and Practices’ category site will be public open space, including Sustainability focus: a for innovatively adopting a planning retained bushland, walking trails and submission for Green Star scheme to deliver a redevelopment exercise and playground equipment. vision that was not possible under the Communities rating has been existing planning framework. lodged Innovation through Demonstration: culture and heritage, health and wellbeing.
Ocean Reef Marina
In collaboration with the City of Joondalup, Ocean Reef Marina will become an iconic waterfront precinct providing a range of recreational, tourist, residential, and boating facilities, as well as significant employment opportunities
On 3 September 2017 the Premier formally announced a commitment of Ocean Reef Marina Artist impression for illustrative purposes only $120 million from Consolidated Fund for the development of the Ocean Reef Marina project. A Memorandum Project area: 79 hectares (land and Expected private sector of Understanding between LandCorp sea area) investment: $500 million and the City of Joondalup has also Lifecycle phase: planning Expected retail and commercial been signed, reinforcing both parties’ Expected dwelling unit space: 12,000sqm commitment to the project. equivalents: 1000+ Expected jobs: 900 direct and A Government Steering Committee Expected facilities: capacity for indirect jobs is in place, including the local 550 boat pens, 200+ boat stackers Sustainability focus: investigating member, to oversee the planning Expected public open space: 8+ the use of ISCA (Infrastructure and environmental approvals and hectares Sustainability Council of Australia tool). project implementation.
PERFORMANCE 32 SECTION 07
Parkside Walk, Jolimont Artist impression for illustrative purposes only
Parkside Walk, Jolimont Project area: 3.6 hectares In partnership with the Town of through certification as a Multi-Unit Lifecycle phase: Built form Cambridge, the former Salvado Road Residential EnviroDevelopment construction nursery site is being redeveloped estate – the first in Western Australia Expected dwelling unit into a vibrant inner city community. to receive this accreditation. Parkside equivalents: 350 residential Featuring a mix of single residential Walk was recognized for achievement houses (with 24 lots for homes and apartment sites, across five elements – water, energy, single and 7 multiple dwelling Parkside Walk is a prime example waste, ecosystems and community. apartment lots) of inner city living. Sustainability focus: The sustainability features throughout EnviroDevelopment accreditation the estate have been recognized – water, energy, waste, ecosystems and community.
Project area: 9.4 hectares Lifecycle phase: Built form construction Expected dwelling unit equivalents: 750 Expected residents: 850+ Expected commercial/ retail space: 2,600sqm retail, 11,700sqm commercial. Expected jobs: 795 direct and indirect Expected year of completion: 2023 Claremont on the Park Innovation through Demonstration: The Goods Shed Claremont on the Park, Claremont and multi-generational living. Located on the northern side of multi-generational facilities including the Claremont Train Station the aged care, support services and 9.4 hectare development will be child care. a contemporary Activity Centre The area is interconnected by a offering a variety of transport, variety of public realm experiences employment and housing choices surrounding the Claremont Oval and with a unique sense of place around already includes the Goods Shed, a the Claremont Oval. culture and community hub operated Once complete the development will by FORM and owned by LandCorp, include apartments, terraced homes and the new Claremont Football and mixed use options, as well as Club facilities
PERFORMANCE 33 SECTION Shoreline, North Coogee 07 The first precinct in the Cockburn Coast Redevelopment Area will be transformed into a thriving residential and commercial community.
Set to be home to 2,500 people in 5,000 houses, this new coastal community will include medium to high density buildings supported by high quality public and community infrastructure. This includes ‘main’ street shopping, a variety of parks Shoreline, North Coogee and public plazas. Artist impression for illustrative purposes only
Shoreline was accredited for five EnvrioDevelopment elements: water, Project area: 40 hectares energy, waste, ecosystems and Lifecycle phase: Sales community. Expected dwelling unit equivalents: 5,000 Expected residents: 2,500 Expected jobs: 3000 indirect jobs Expected year of completion: 2035 Sustainability focus: EnviroDevelopment certification for water, energy, waste, ecosystems and community. Innovation through Demonstration: Step-up Design Competition and Salt Lane medium density precinct.
Project area: 9.6 hectares Lifecycle phase: built form Murdoch Health and Knowledge Precinct construction Artist impression for illustrative purposes only Expected dwelling unit equivalents: 900 – 1,200 Murdoch Health and Knowledge Precinct (MHKP) Expected residents: 1,800 – 2,400 A new mixed use residential and of God Hospitals, Murdoch University Expected commercial/ commercial area that will be a and South Metropolitan TAFE. retail space: 5,300sqm retail; milestone project in the development MHKP will become home to 33,120sqm commercial. of a nationally significant health and commercial, health and research 35,000 indirect knowledge precinct south of Perth. Expected jobs: facilities, residential, retail, short-stay jobs (as part of the Murdoch Located next to the Murdoch train and student accommodation, and Activity Centre). stations it’s the first precinct within WA’s first medihotel. the Murdoch Activity Centre that will connect Fiona Stanley and St John
PERFORMANCE 34 SECTION Alkimos Beach 07 The multi-award winning community of Alkimos Beach, developed in partnership with Lendlease, is located 15km north of Joondalup, opposite the future Alkimos Central city development.
Awarded 2018 best residential development in Australia by the Urban Development Institute of Australia, Alkimos Beach was the first Australian community to achieve a 6 Star Green Star certification by the Green Building Council of Australia and become Australia’s first BeachSAFE community through a partnership with Surf Life Saving WA which gives residents free access Alkimos Beach to BeachSAFE programs including Nippers and First Aid training. The information and assistance Project area: 224 hectares The Gateway Shopping Precinct at provided to Alkimos Beach Alkimos Beach includes a shopping residents about how to reduce their Lifecycle phase: 10 – 15 years centre, City of Wanneroo pop-up library, environmental impact from the Expected dwelling unit gym, childcare centre and play centre, time they move in is building one of equivalents: 2,000 Australia’s most ecologically-aware medical centre, food outlets and tapas Expected residents: 6,000 restaurant, with a tavern opening soon. communities. Sustainability focus: UDIA A comprehensive education program EnviroDevelopment certificatIon Alkimos Beach Primary School and has been developed, while a simple across six elements of St James Anglican schools are both home user guide with energy, water ecosystem, waste, materials, open and conveniently located in and waste management tips is energy and community and the community. provided to each new home. Green Building Council of Alkimos Beach is also the first Every home receives an Energy Smart Australia 6 Star Green Star community to participate in a Home Package with exclusive access AccreditatIon to a unique eco-coaching program four year project to trial solar and Innovation focus: Solar and that aims to save residents up to community battery storage. Community Battery Storage trial 50per cent on energy bills. Beachside communities are Acknowledging the Nyoongah increasingly subject to the impacts traditional owners LandCorp and of climate change, with dune erosion Lendlease have collaborated with and water pollution posing major elders Prof. Len Collard, Elder Theresa threats to coastal ecology, residents Walley, Rosemary Walley and Danny and property. Ford to educate the community To mitigate these issues, smart and students on the history of water initiatives have been planned Alkimos through development of throughout Alkimos Beach, including the ‘Alkimos – Land by the ocean’ stormwater retention, bore water book, storytelling under the stars irrigation and the installation of water- events and incorporating stories into efficient appliances in each home. public open spaces such as Graceful Public spaces are designed to be Park and the interpretive signage water-smart, while a front yard educational walking trail. landscaping package can help residents select drought-tolerant native species.
PERFORMANCE 35 SECTION Regional land for living 07 Land for 315 DUEs was created in dwellings have been offered to the At 30 June 2018 land for 1,571 DUEs 2017-18. Key releases included lots market via an expression of interest was available across our regional at Albany Middleton Beach with and five multi residential lots at projects, in addition to the DUEs dwelling unit equivalents of up to 295 Mandurah Junction (20 DUEs). created during 2017-18 (table 4).
Table 4: Regional residential dwelling unit equivalents created in 2017-18
Target Actual Lots and DUEs available (excluding DUEs created in 2017-18)
108 DUEs 315 DUEs created (based on land released) Land for 1,571 DUEs available at 30 June 2018
Key projects
Middleton Beach, Albany
Middleton Beach is an iconic seaside Following the State Government’s ultimately provide enhanced public location which has been a favourite purchase of the 13.1 hectare site, work open space on the foreshore area, destination in Albany since the 1890s. is progressing to get the site ready for while at the same time enabling the private development. The site offers development of a hotel site with After years of community speculation potential for a mix of uses including absolute beach frontage. surrounding a parcel of privately a hotel, retail and commercial In February 2018, we opened a owned land at Middleton Beach, premises, as well as permanent Hotel Operator Expressions of which remained vacant for years, the residential accommodation. State Government intervened, paving Interest, which saw submissions the way for private developers to In early 2018, the first stage of from internationally recognised hotel create a vibrant mixed-use precinct works was completed which saw chains. The Hotel Operator EOI was and visitor destination with an a realignment of Flinders Parade the precursor for a Hotel Developer active beachfront. (the main thoroughfare along EOI in mid-2018, expected to Middleton Beach foreshore) to conclude by late 2018.
Project area: 13.1 hectares, offering four mixed use sites, including hotel Lifecycle phase: in development with the hotel site currently on the market Expected dwelling unit equivalents: up to 295 Expected residents: 400-600 Expected jobs: 120 during construction Sustainability focus: Economic and Social: underpinning Albany’s future growth
Middleton Beach, Albany Artist impression for illustrative purposes only
PERFORMANCE 36 SECTION 07
Koombana North, Bunbury Waterfront
Bunbury Waterfront
The jewel in the crown for Bunbury Bunbury Waterfront initiative as well has access to fantastic landscaped is its unique waterfront, surrounded as our Koombana North development public open space with barbecue by the Indian Ocean to the West, (only 2 sites remain available) and the facilities, seating and viewing the magnificent Koombana Bay to future Marlston North development, is platforms over the magnificent the north, and Leschenault Inlet to already providing better connectivity Koombana Bay. the east. for all precincts within the waterfront Development has already introduced area, and when completed will more choice of cafes and restaurants, Recognising the enormous potential seamlessly link the CBD to its retail and commercial offerings, of the waterfront, the State amazing foreshore. Government and local authorities tourism accommodation, and of have been investing heavily in the Popular family beaches have had a course residential housing diversity rejuvenation of the area, transforming facelift including Koombana Beach through apartment living. it into a highly desirable destination as part of Stage 1 of the Transforming Bunbury Waterfront is set to attract and community hub. Bunbury Waterfront Iniaitive, and the substantial investment for Bunbury Ski Beach with wheelchair access over the next 30 years and generate Ongoing planning and development as part of our Koombana North significant employment. through the $65 million Transforming development. The community now
Project area: 12.9 hectares Expected residents: 217 Lifecycle phase: sales Expected commercial/ Expected dwelling unit retail space: 4,015sqm equivalents: 121 Expected year of completion: 2025
PERFORMANCE 37 SECTION Broome North 07 Broome North, developed in Waranyjarri Estate, the first of program. The Smart Sun package consultation with the Shire of three residential estates planned in has been offered to residents in stage Broome, traditional owners and Broome North is now home to over 10 of Waranyjarri Estate for a heavily the local community is planned to 300 families who benefit from the discounted fixed price of $5,000 which cater for the ongoing growth in local Broome North primary school, includes the supply and installation population in Broome supporting parks, playgrounds and pedestrian of solar panels, a storage battery, and education, tourism, commercial and friendly design. an inverter combined with “smart” retail opportunities. appliances including air-conditioning Broome North is home to a ground- and hot water systems. Together each The development will effectively breaking solar pilot program that will package is valued between $20,000 double the size of the existing give participating residents greater and $35,000 depending on the home. township and when complete will access to renewable energy, more feature two local centres. control over their energy use and Residents will be able to track and significant reductions in power bills. manage their power consumption The development will also see through an energy management an expansion of the current light LandCorp has partnered with Horizon system mobile app, which can lead to industrial estate Blue Haze. Power to launch the Smart Sun pilot significant reductions in living costs.
Project area: 700 hectares Lifecycle phase: Based on demand Expected dwelling unit equivalents: 5,000 Expected residents: 14,500 Sustainability focus: Through climate-sensitive design Broome North estate has become a market leader in energy and water efficiency. Due to the design guidelines in place, and their emphasis on sustainability principles, Broome North residents already save
Waranyjarri Estate, Broome North on average between $700- $800 per year on energy bills compared to homes in other parts of Broome. An environmental cultural corridor and open space links habitats across the Broome peninsula. Parks and open space are located throughout the estate. Innovation through Demonstration: Smart Sun
Waranyjarri Estate, Broome North
PERFORMANCE 38 SECTION Economic development 07 Topic boundary Performance
The provision of land and Partnering projects infrastructure for business and industry provides opportunity Engaging closely with Government, for industry investment, business private sector investors and growth, trade and jobs. A significant businesses, we seek to enable number of jobs are created in private investment through our initial design and construction partnership program. Our current phases of development projects, active partnership projects are with a smaller more permanent outlined in table 5. operational workforce established over subsequent decades.
Table 5: Current active partnering projects
Partner Project Partnership summary and status
Lendlease Alkimos Beach Partnership started in July 2010 to deliver Alkimos Beach, a 224 hectare residential precinct. To date 913 lots have been sold, including 908 residential lots, three commercial zoned lots (Gateway Commercial Precinct) and two school sites.
Alkimos Central Partnership forms part of the same partner agreement as Alkimos Beach with the agreement for Alkimos Central requiring Structure Plan and environmental approvals being progressed. The project is in its planning stage, with the Structure Plan expected to be approved June/July 2018.
Alkimos Vista The Development Agreement was executed on 12 July 2016, which was effectively the commencement of the partnership. 26 lots are Under Contract, which consists of 11 Unconditional sales (all Stage 1) and 15 Conditional Sales (11 in Stage 1 & 3 in Stage 2). Certificate of titles issued on 22 May for Stage 1.
Water Alkimos Coastal Partnership began in June 2001 to deliver Alkimos Coastal Node a 57 hectare Corporation Node development adjoining the Alkimos Beach project. The project is in its planning stage with planning approvals anticipated by end of 2018.
Satterley Allara, Eglinton Partnership started in December 2010 to deliver Allara a 240 hectare site for Property Group approximately 3,400 dwellings. To date 299 lots have been sold.
Cedar Woods Mangles Bay, Partnership started in 2009 to deliver Mangles Bay Marina Based Tourist Precinct Rockingham which was planned to include a marina at Point Peron. The Western Australian Planning Commission recommended the plans be withdrawn, followed by the Minister for Transport; Planning; Lands announcement on 1 March 2018 that the project would cease.
South Hedland The Development Agreement was executed on 12 July 2016, which was effectively Western Edge the commencement of the partnership. 26 lots are Under Contract, which consists of 11 Unconditional sales (all Stage 1) and 15 Conditional Sales (11 in Stage 1 & 3 in Stage 2). Certificate of titles issued on 22 May for Stage 1.
Town of Parkside Walk, Partnership began in August 2013 to transform a former nursery site into Cambridge Jolimont approximately 350 new dwellings. Planning approvals were obtained in 2015 and civil construction completed December 2018. All 24 single residential lots were sold in 2017-18 and four of the seven apartment sites have sold, with the remaining three to be marketed in 2018-19.
PERFORMANCE 39 SECTION Infrastructure and town centre development projects 07 The revitalisation of town centres facilitates and supports economic growth through infrastructure upgrades, the creation of mixed use lots, opportunities for business investment and creation of public spaces for community use and events. Table 6 identifies active (under construction) infrastructure and town centre development projects undertaken during 2017-18.
Table 6: Active infrastructure and town centre development projects
Project and status Economic outcomes
Cockburn Central Town • Project area: 32 hectares Centre, and Cockburn • Dwellings: 1,100 apartments and town houses (all within 800m walk of the Central West, Cockburn Cockburn Central Train/Bus Station) (maximising the activation of • Expected population: 2,000 people LandCorp’s Cockburn Town • Commercial and retail space: 0.7 hectares Centre development) • Expected ongoing employment: more than 1,800 people To date, 40 per cent of • Activity centre foot traffic: 5,500 commuters use the nearby bus and train Cockburn Central Town interchange daily Centre has been developed • secondary playing field for the general public and used by with apartments, retail and Infrastructure delivery: the Fremantle Dockers Football Club, a rejuvenated wetland, a nature play area, office space. landscaping and streetscape works Cockburn Central West, the • Public open space: 4.8 hectares next phase of the Cockburn • Expected build-out period: 10 years (to 2025) Central Activity Centre, completed the first stage of landscape works in April 2017.
Newman Town Centre • Project area: 3,356sqm Revitalisation “The Square” • Funding: $7 million from the State Government’s Royalties for Regions fund
The Square was handed over • Commercial and retail space: 300sqm to the Shire of East Pilbara • Short term local employment: $2 million of contracted works across the project at a public launch event for local Newman businesses in July 2017. LandCorp is • Infrastructure delivery: commercial kitchen, two business incubator facilities, civic continuing to assist the Shire gathering place, landscaping, public art and media screen. A pop-up retail space to deliver the key economic • Expected built out period: practical completion reached on 27 July 2017 and social outcomes for the space, including community activation.
PERFORMANCE 40 Hedland Junction SECTION
Project and status Economic outcomes 07
The Karratha Quarter • Project area: 77 hectares precinct and Karratha • Funding: 66.7 million from the State Government’s Royalties for Regions funding City Centre and supported by $9 million from LandCorp
The Quarter precinct opened • Dwellings: 46 service-worker apartments for business in June 2016. • Commercial and retail space: 6,000sqm • Short term local employment: $22 million in contracts for local jobs Significant landscape works are in the design phase. • Infrastructure delivery: road and pedestrian network, servicing with sewer, power and water • Built form investment: land delivery is sporting the delivery of significant built form projects. The following have now been completed: Quarter Commercial Building ($20 million built form investment), The Quarter Hotel ($20 million built form investment), Pelago Apartments, Red Earth Arts Centre ($55 million built form investment), and GP Super Clinic. The Karratha Health Campus is due to open in October 2018 ($207 million built form investment) • Expected build-out period: 2025
South Hedland Town Centre • Project area: 90 hectares Revitalisation • Funding: Stage 1 $23.3 million and Stage 2 $53.94 million from the State Government’s Royalties for Regions fund Stages 1, 2 and 3 of the South Hedland Town Centre are now • Dwelling unit equivalents: 650 dwellings complete. • Commercial and retail space: 22 fully serviced lots capable of mixed use with the potential for retail, commercial or residential • Infrastructure delivery: 22 mixed use lots, central park, grassed outdoor amphitheatre, shaded marketplace and water play area, interactive sculptures and landscaped open spaces. It also included upgrades to street drainage and the re- alignment of major roads
South Hedland
PERFORMANCE 41 SECTION Economic and employment land economic impacts 07 We have updated our Industrial Land output of industrial and commercial once fully developed and occupied, Outputs Modelling Tool to estimate land. Using this model, 2017-18 sales are expected to help generate the the employment and economic of industrial and commercial lots, economic benefits outlined in table 7.
Table 7: Forecasted ongoing economic benefit of industrial and commercial lots sold in 2017-18
Lot type Number of lots sold Employment Number of Economic output/per and area (indirect) Businesses year (value of goods and services)
Low density and/or heavy/special 4 lots 60 2 $48.97 million Industrial estates 152,096sqm (15.2 hectares)
Medium density and general 27 lots 401 50 $232.04 million industry estates 211,216sqm (21.1 hectares)
High density and service industry 1 lot 278 22 $109.16 million 63,441sqm (6.3 hectares)
Note: All results are based on LandCorp/Pracsys “Rule of Thumb” Study (RoT) from 2018. The type of Industrial land is based on benchmarked estates across the Perth Metropolitan area. Employment refers to jobs created in the permanent workforce where businesses are operating on our lots. It does not include jobs created during civil or land development construction works which is additional. Output per year contribution is to Gross State Product. Data includes Light Industrial Areas in Regional WA.
Urban regeneration economic impacts Delivery of activity centres and Importantly, this Policy seeks to metropolitan infill areas. Our work in urban regeneration supports the reduce urban sprawl, maximise the infill projects has increased over the State Government’s Directions 2031 use of existing infrastructure and past five years with more than 80 and Beyond target for Perth and reduce travel times and costs. Table 8 per cent of land for new dwellings Peel to deliver 47 per cent of new sets out the number and percentage delivered on infill projects. dwellings via urban infill development. of LandCorp lots created within the
Table 8: Lots created within metropolitan infill areas
Measure 2013-14 2014-15 2015-16 2016-17 2017-18
Number of dwelling unit equivalents created 753 931 1,547 777 874 in the Metropolitan region via urban infill developments*
Percentage of dwelling unit equivalents 69% 63% 89.6% 88% 84% created in the Metropolitan region via urban infill developments*
*Note: Urban infill projects are defined as those within the existing urban footprint of the metropolitan area.
Regional revitalisation economic impacts Infrastructure and land development us to develop land and make it in all regions within Western Australia, costs in regional Western Australia available for residential, commercial with a combined market value of over can often be significantly higher than and industrial purposes, which assists $320 million. Over the past decade, in the metropolitan area. This can local governments to facilitate growth the State and Regional component of make private sector land development in areas where this would otherwise be RDAP has successfully delivered land unviable and can restrict land supply difficult to achieve. across the State to support economic for economic and community growth. activity, with normalised markets RDAP has 181 projects covering the Availability of developed land is now existing in the larger centres length and breadth of the State and recognised as a significant factor in and towns. The program received providing for a range of land uses. In enabling social and economic growth reduced enquiries during 2017-18, with 2017-18 an additional 27 dwelling unit in regional areas. no applications received during the equivalents were created as part of 2018 application round reflecting the The Regional Development Assistance RDAP. We now hold developed land amount of work undertaken over the Program (RDAP), partially funded stock of 914 lots which are available for past few years to satisfy demand. by the State Government, enables consumers to immediately purchase
PERFORMANCE 42 SECTION
Improving the understanding of our economic impact 07
A new modelling tool with a broader range of project types is under development. This will be a tailored assessment of representative past project cases studies. The stages of development measured will also be broadened to include the economic impact of: • the creation of vacant lots. • the construction of buildings on the vacant lots; and • the ongoing activity occurring on the land and in the buildings.
The model is expected to provide a more robust measure of the total economic impact of our projects. The modelling tool will be ready for use in 2019 and will be used in future Montario Quarter, Shenton park Artist impression for illustrative purposes only annual reporting.
Biodiversity Topic boundary The variety of all life forms on earth environmental impact through We seek to minimise impacts, are contributes to the healthy functioning the removal and fragmentation of transparent about the impacts we of the water, soil, air and climate upon habitats, and associated impacts on do have and seek to manage and which all life depends. Development waterways. Protecting and improving improve outcomes through protecting of land for industry, business, housing biodiversity is important for both and enhancing biodiversity and the and community has an inherent current and future generations. tree canopy wherever possible.
Performance Biodiversity impacts Rehabilitation programs Fauna relocation programs We seek to minimise impacts on the We seek to manage and improve During 2017-18 a fauna relocation natural environment. During 2017-18, outcomes through rehabilitation program was completed at Montario 41.68 hectares of native vegetation programs. During 2017-18 the Quarter in Shenton Park and Allara was cleared on three projects: following rehabilitation programs in Eglinton. At Montario Quarter this Alkimos Vista in Alkimos (22.78 were undertaken: involved deployment of traps by a hectares), Highland Range in Jane • 1,900 Tuart seedlings planted at licensed fauna re-locator for three Brook (10.3 hectares), and Montario Rockingham Industrial Estate as nights in November 2017, nine bobtail Quarter in Shenton Park (55 Native part of ongoing rehabilitation lizards were relocated into suitable and 18 exotic plants). works in the Conservation Area. habitat nearby but far enough away from the project area that they will • Weed control program at Montario The Broome North Industrial Estate is not return in accordance with the Quarter in Shenton Park, a summer adjacent to an area of high biodiversity relocation license conditions. At Allara weed control event knocked down value (outside of a protected area) 40 traps were deployed for 10 nights 99 per cent of germinating castor called Roebuck Bay. Management in March 2018. 40 individual animals oil plants. No new regeneration strategies include an on-going surface were trapped; 29 lizards and 11 snakes. is present. Prickly Pear (an water monitoring program to ensure Trapped animals were relocated to invasive plant) is showing effects excess sediment does not leave the Yanchep National Park, Burns Beach of herbicide which will reduce site via storm water. and Yellagonga National Park. numbers of plants and any regeneration. Seed collection also completed at Montario Quarter in Shenton Park and adjacent bushlands to supplement the future
rehabilitation of this precinct. PERFORMANCE 43 SECTION
Compliance Water 07 Compliant with all State and Topic boundary Performance Commonwealth environmental Water is a fundamental need for all approvals during 2017-18, Water Sensitive Urban Design life. The total water cycle makes a Offsets significant contribution to ecosystems, Since 2008 all projects within Western Australia must comply In 2012, in consultation with the quality of life, landscapes and with the State’s Better Urban Water Western Australian Department of economic development. Integrated Management policy. It requires the Parks and Wildlife we purchased land and water planning is based preparation of a strategy which aims 4,402 hectares of Black Cockatoo on total water cycle management to achieve a holistic understanding foraging habitat as an Advanced which holistically considers all aspects of a site’s water balance and issues Offset which was subsequently of water including potable water, impacting stormwater recharge and approved under the Environment groundwater, stormwater run-off, quality. This involves an integrated Protection and Biodiversity wastewater, natural surface water, water cycle management and Water Conservation Act 1999. The Advanced waterway health and water reuse. Sensitive Urban Design (WSUD) Offset is protected as Regional From a land and infrastructure approach. Where projects have Open Space under the management development perspective in the drying demonstrated innovative or non- of the Department of Parks and climate of Western Australia, this typical initiatives to WSUD they have Wildlife section of the Department involves water sensitive urban design, been included in table 9. of Biodiversity and Conservation. techniques to improve potable water This land has provided offsets for use efficiency and reduce demand, the Allara Eglinton and Alkimos and recycling water (e.g. third pipe, Beach residential development areas stormwater harvesting, sewer mining, and the Flinders and Neerabup and managed aquifer recharge). Industrial Areas.
Re-establishing a Threatened Ecological Community at Rockingham Industry Zone The trial is part of the Environment Protection and Biodiversity Conservation Act 1999 Controlled action requiring an Offsets Management Plan with a Threatened Ecological Community Re- establishment Trial. The trial is the first of its kind in Australia and involves the planting of approximately 20,000 threatened ecological community species within six large basins across a two hectare area. In August 2016, the trial works were completed.
The trial is about two years into the five year trial period and is going to plan. The trial involves ongoing monitoring and research. Monitoring shows the plants are continuing to grow. Annual monitoring is required for five years after planting with the last monitoring to occur in 2021. Reports need to be forwarded to the Department of Biodiversity Conservation and Attractions and City of Rockingham.
PERFORMANCE 44 SECTION Water reduction 07 We disclose our water initiatives a land developer we influence Of the 306 lots sold across 44 for projects with sales during the buildings through mandatory and projects, 86 per cent of lots had reporting period. The sales period recommended criteria in our design water management initiatives beyond of our projects is the point in time guidelines (DGs), or by providing compliance in place. These projects where the water initiatives are closest incentives such as rebate packages are outlined in Table X. Often our to being realised as most water that include non-potable water DGs also contain best practice water initiatives (beyond compliance) sources or water efficiency measures. recommendations for purchasers are realised at the building stage. to consider, this information is not While we are predominately captured in the table below.
Table 9: Project with sales in 2017-18 and water initiatives
Project Water initiatives
Alkimos Beach, • Potable water use of residential buildings and private open space to be less than or equal to Alkimos 100 Kilolitres per person per year. Overall there will be a 20 per cent reduction of potable water use. • DGs (Design Guidelines) mandate water efficient fittings and fixtures for homes. Contractual requirements mandate water efficient fixtures for non-residential. • Free installation of water wise front garden (at least 85 per cent native/drought-resistant plants). • End user education to ‘softly’ stimulate water efficient behavior. • Target to achieve alternative water use for public open space (POS), or no irrigation. Where required bore water is being used to irrigate POS and a feasibility study is underway for a recycled water plant to irrigate POS.
Alkimos Vista, • A complimentary Front Landscaping Package is provided that includes at least 20 percent of Alkimos the area to allow for infiltration, turf for no more than 80 per cent of the area, native plants, and mature trees.
Allara, Eglinton • DGs require water efficient fittings. Front landscaping rebate package (approximately $3,500). • POS is supplied by a bore system with drip irrigation, water wise plants/turf.
Anzac Drive • DGs require water efficient fixtures and fittings, and low flow trickle irrigation. Industrial Estate, • DGs encourage the installation of rainwater tanks and best practice stormwater management Kalgoorlie practices such as detention basins, vegetated swales and/or gross pollutant traps to retain the first flush of storm events and where appropriate, direct retained water to landscape areas.
Avon Industrial • DGs require the submission of a stormwater design plan and statement on water Park management, landscaping and irrigation initiatives. • DGs require water efficient hot water system, fittings and fixtures.
Januburu Six • DGs require water efficient fixtures and fittings. Seasons, Broome • $5,000 sustainability (energy and water) rebate including greywater treatment/ reuse Cable Beach systems and sub-surface irrigation to landscaping.
Champion Lakes, • Front landscaping rebate of $3,000 comprising native gardens and no turf. Armadale • All domestic stormwater runoff to be piped into the constructed wetland, where it is stripped of nutrients before discharging into the rowing course lake.
Cockburn Central • DGs require water efficient irrigation and fittings (exceeding NCC* required WELS^ star West ratings by one star per fixture). • DGs require an irrigation plan be included as part of the Landscape Plan for Building Approval.
Coolbellup, • DGs promote water efficiency through ‘Your Guide to Smart Home’ checklist. The Assembly • Front landscaping package available ($1,500) to encourage reduced water consumption.
Waranyjarri Estate, • DGs require water efficient fittings and appliances. Broome North • Waterwise front landscaping rebate available ($6,000 - $7,000).
PERFORMANCE 45 SECTION Table 9: Project with sales in 2017-18 and water initiatives con’t. 07 Project Water initiatives
Crossroads • DGs require buildings achieve reduced water use compared to BCA** base compliant building, Industrial, Anstey including fittings, fixture and appliances that exceed minimum WELS^ star ratings. Road, Forrestdale • DGs require the development of an Environmental Sustainable Design report and water wise Business Park Landscape Plan for each lot and verge that includes drainage swales allowing for WSUD~.
Blackmore Park, • Water reduction targets identified in the Local Water Management Strategy of 1,000 litres per Girrawheen person per annum. • House and land packages with the Builder (covering approximately 80 per cent of the estate) include installation of water efficient appliances and fixtures. • DGs require all landscaped areas to be compliant with the Water Corporation’s Water Wise planting list. • Water efficient landscaping rebate available for households ($3,000 per lot). • WSUD~ used on site to treat stormwater, improving the water quality.
Montario Quarter • DGs require single residential dwellings to install water efficient fittings and fixtures, and water wise irrigation with lawn to be limited to a maximum of 50 per cent of the landscaped area of the site. • DGs require multiple dwellings to install water efficient fittings, fixtures and irrigation.
Shoreline, North • Target for 20 per cent reduction in potable water use on statutory compliance. Coogee • DGs require installation of fittings, fixtures and appliances that exceed minimum WELS^ ratings and sub-metering of each apartment and commercial space. • 80 per cent of residential landscaping to use water wise species (60 per cent indigenous plants) and for multiple dwelling developments water wise irrigation controlled by automated timers with electronic controllers and moisture sensors.
Parkside Walk, • Target for 20 per cent reduction in water use on statutory compliance. Jolimont • Built Form Guide request water efficient fittings and dishwashers, all apartments to be sub- metered, and water wise landscaping through local/native planting, electronic automated irrigation with moisture sensors.
Greenview • DGs require water efficient fittings. at Karlkurla, Kalgoorlie
Flinders Precinct • Target for 80 per cent target reduction in potable water use. (Hope Valley • DGs require a Water Supply and Efficiency Plan be developed, including non-potable water Wattleup saving initiatives, controlled drip irrigation with moisture sensors, approved water wise Development planting, and on selected sites, water wise fixtures and appliances and on-site rainwater tanks. Cell 1)
Meridian Park, • DGs require water efficient fittings, appliances, landscaping irrigation from harvested water Neerabup and submission of a landscape plan.
Murdoch Health • DGs require a Landscape and Irrigation Plan to be provided as part of the Landscape Plan for and Knowledge Building Approval to assess suitability and water efficiency. Precinct • DGs require water efficient in-line drip irrigation for all garden beds.
Newman Light • DGs require suitable species of shade tree to be planted evenly through the car parking area. Industrial Area • DGs recommend water wise planting, installation of timed/controlled irrigation system, and hard surface runoff be directed to garden beds and other landscaped areas.
PERFORMANCE 46 SECTION Table 9: Project with sales in 2017-18 and water initiatives con’t. 07 Project Water initiatives
Pinjarra Industrial • DGs require retention of stormwater runoff equivalent to a one year ARI`. • DGs require water efficient low flow trickle irrigation with a programmable timed/controller water system. • DGs require installation of fixtures and fittings consistent with BCA** Five Star Plus energy and water efficiency measures.
Rockingham • DGs require a Water Supply and Efficiency Plan and Landscaping Plan for each lot that Industry Zone specifies requirement for 20 per cent reduction in water use below statutory compliance, including fittings, appliances and landscape. • An 80 per cent reduction in non-potable water compared to a standard industrial development must be achieved by every tenant with the installation of rainwater tanks mandatory for irrigation and toilet flushing.
Enterprise Park, • DGs require water efficient fittings and appliances, and water wise Landscaping Plan be Wangara developed consistent with the Water Corporation’s Waterwise program and City of Wanneroo requirements for water wise plants.
WGV, White Gum • 60 to 70 per cent reduction in mains water. DGs require community bore, rain water tanks Valley plumbed to toilets and washing machine taps, water wise gardens and installation of water efficient fixtures and fittings.
* NCC – National Construction Code; ^ WELS – Water Efficiency Labelling Standards; ~ WSUD – Water Sensitive Urban Design; `ARI – Average Recurrence Interval and **BCA – Building Code of Australia
WaterWise Development Endorsement
This Water Corporation program LandCorp projects to have achieved provides water sensitive benchmarks Waterwise Development for developments and recognises recognition are: the exceptional water efficiency • WGV, White Gum Valley, received outcomes of new water sensitive in 2016; developments. • Allara, Eglinton, received in 2017; The benchmark for achieving • Parkside Walk, Jolimont, received the Waterwise Development in 2017; Endorsement is the • Rockingham Industry Zone, EnviroDevelopment Water Element received in 2018, and Standard of a 20 per cent reduction • Shoreline, North Coogee, received in potable water use on statutory in 2018. compliance.
PERFORMANCE 47 SECTION Energy 07 Topic boundary energy use from fossil fuels and we influence buildings through increase the uptake of renewable mandatory and recommended/ Energy is critical to modern life and energy is an important carbon best practice criteria in our design maintaining a basic standard of living. emissions mitigation strategy. guidelines (DGs), or by providing However, the production of energy incentives such as rebate packages using fossil fuels poses a significant Performance that include renewable energy risk to our climate. Compounded by or energy efficiency measures. emissions from agriculture and land Energy initiatives Even when we facilitate a climate clearing, the global environment is We disclose our energy initiatives responsive subdivision lot layout, the under threat from climate change for projects with sales during the potential benefit is only experienced related impacts such as more extreme reporting period as this is the point once buildings are constructed. Of weather events, droughts, sea level in time where the energy initiatives the 306 lots sold across 44 projects, rise and flooding and coral reef are closest to being realised. Most 86 per cent of lots had energy bleaching. These events have human, energy initiatives are realised at the management initiatives beyond financial and environmental impacts. building stage and whilst we are compliance. These projects are From a land and infrastructure predominately a land developer outlined in the table below. perspective, finding ways to reduce
Research of our 2017 residential land purchasers identified that 45 out of 100 purchasers received a sustainability package and 76 per cent of them believed that it was very or extremely important in their decision to purchase a block.
Table 10: Project with sales in 2017-18 and energy initiatives
Project Climate responsive design (CRD) and Renewable energy or greenhouse gas (GHG) energy efficiency emissions reduction strategies
Alkimos Beach, DGs require CRD subdivision layout and More than 30 per cent of electricity generation Alkimos encourage CRD buildings. Mandatory and met through on-site power generation, involving voluntary initiatives as per contract target savings community energy storage trial and an energy of more than 50 per cent on home electricity rebate mandating minimum 1.5KW solar panels. bills. DGs and contract mandate energy efficient For non-residential, solar panels are mandated hot water and cooling/heating. The Energy through contracts. 20 per cent reductions for Smart Home Package provides rebates for the GHG emissions through embodied energy mandatory components of the contract. Portion initiatives (i.e. cement replacement in civil works, of households receive a rebate if energy efficient transport and waste reduction initiatives). End appliances are purchased. Free monitoring user behaviour program to stimulate energy devices are offered to all households. For efficient behaviour. non-residential buildings efficient fixtures and cooling/heating are mandated through contracts.
Alkimos Vista, DGs require CRD buildings. DGs require that all homes be connected to Alkimos DGs require all homes to meet the minimum a solar PV system, a approx. $2,500 rebate is 6 star thermal energy rating as stated in the provided for solar PV systems. NCC of Australia. Higher energy ratings are encouraged.
Allara, Eglinton DGs require CRD subdivision layout and CRD A rebate package ($3,800) to help pay for buildings. DGs encourage minimum 4 star rating mandatory initiatives including 1.5kW solar electrical appliances, and timed sensor outdoor panels, energy monitors, smart meter and lighting. thermostat, energy efficient heating/cooling and lighting. POS solar lighting provides lighting to Kinkuna Park.
PERFORMANCE 48 SECTION Table 10: Project with sales in 2017-18 and energy initiatives con’t. 07 Project Climate responsive design (CRD) and Renewable energy or greenhouse gas (GHG) energy efficiency emissions reduction strategies
Anzac Drive DGs require CRD for buildings. Industrial Estate, DGs require energy efficient and sensor Kalgoorlie controlled lighting, and the installation of solar hot water systems.
Avon Industrial DGs require CRD for buildings. Park DGs require the submission of a statement on energy management initiatives with the application for planning approval.
Januburu DGs require CRD for buildings. DGs require energy efficient water heating Six Seasons, systems (solar or heat exchange) and inverter Broome split system air conditioning. LandCorp offering Cable Beach a maximum $5,000 sustainability (energy and water) rebate on design measures (louvre windows - $1,500) and energy management (low energy water heating system $1,000 and inverter split air conditioning systems $1,000).
Champion Lakes, DGs require CRD for subdivision layout, and Armadale encourages CRD buildings.
Cockburn DGs require CRD for buildings and for building DGs encourage developers to produce a Central West to achieve average 5 star NatHERS*. Minimum ‘Building/Dwelling Management Manual’ to help 5 star air conditioner and appliances, and high occupants understand building requirements efficiency hot water system. and performance.
Coolbellup, Promotion of energy efficiency through ‘Your $1,000 rebate to install 1kW solar panel. The Assembly Guide to Smart Home’ checklist within DGs.
Waranyjarri DGs require CRD for buildings and encourage The Smart Sun Pilot at Waranyjarri offered six Estate, Broome minimum 4 star appliances, air conditioners established and six new houses an opportunity North to use inverter condenser units, solar power to purchase a solar powered micro-grid (or other renewable energy systems), energy package for $5,000 (with approximately efficient lighting, solar hot water (or a 5 star $40,000 value), including solar panels, storage gas or heat pump hot water system). External battery, an inverter, hot water systems, and a solar lighting is to be controlled by timers or demand management system. motion sensors.
Crossroads DGs require CRD for buildings, and require Industrial, reduced energy use when compared to Anstey Road, BCA*. At least 70 per cent of lighting in Forrestdale buildings to be highly efficient. Environmental Business Park Sustainable Design report to be submitted with development applications.
Blackmore Park, DGs require CRD subdivision layout and CRD Girrawheen buildings.
PERFORMANCE 49 SECTION Table 10: Project with sales in 2017-18 and energy initiatives con’t. 07 Project Climate responsive design (CRD) and Renewable energy or greenhouse gas (GHG) energy efficiency emissions reduction strategies
Montario DGs require single residential dwellings to: DGs require single residential dwellings have a Quarter achieve 7 star NatHERS rating, undertaken by photovoltaic system or alternative renewable an accredited energy assessor with NatHERS energy system providing minimum 1.5kW per Software; install reflective under roof insulation dwelling to be installed. (minimum R1.5) for all outdoor living areas, and install a minimum rating of 5 stars for the hot water system. DGs require multiple dwelling developments to: achieve a minimum 4 Star Greenstar demonstrated at development application stage by a certified Green Building Council of Australia (GBCA) professional; install energy efficient hot water and air conditioning.
Murdoch Health DGs and Local Planning Policy require CRD and Knowledge buildings. The Local Planning Policy requires Precinct that developments achieve a minimum ‘Australian Excellence Green Star rating’.
Shoreline, North DGs require CRD for buildings and require 5 star Single and grouped residential buildings require Coogee rated air-conditioners, efficient lighting, motion minimum 1.5kW solar panel or solar water sensors for lighting, and high energy rated heater installed. appliances. Apartments are required to meet Multiple dwellings require solar water heating, 7 star NatHERS* for thermal performance. heat pump or gas water heating, and solar panels in residential (1kW per apartment) and commercial (1kW per 100sqm ground floor area). Target to reduce GHG emissions by at least 20 per cent more than regulatory requirements.
Parkside Walk, Built Form Guide (BFG) requires CRD for BFG requires single dwellings to install a Jolimont buildings. BFG requires 7 star NatHERS* (with minimum of 1.5kW solar panels, grouped an average of 7 stars for multi residential), dwellings a minimum of 1kW (per dwelling). efficient lighting, water heating and air BFG requires a reduction in GHG emissions conditioning. Apartments require sub-metering by at least 20 per cent more than regulatory and energy efficient lifts. requirements.
Greenview DGs require CRD for buildings and minimum 5 star at Karlkurla, energy efficiency. DGs recommend installing low Kalgoorlie energy lighting with timers.
Flinders Precinct DGs require a minimum 30 per cent improvement (Hope Valley against the reference case including CRD for Wattleup buildings. Development DGs require minimum of 80 per cent of lights to Cell 1) be energy efficient and energy efficient hot water, fittings and fixtures.
Meridian Park, DGs require CRD for buildings and require Neerabup energy efficient lighting, minimum 4 star solar hot water or 5 star gas or heat pump system
Newman Light DGs require CRD for buildings. Industrial
PERFORMANCE 50 SECTION Table 10: Project with sales in 2017-18 and energy initiatives con’t. 07 Project Climate responsive design (CRD) and Renewable energy or greenhouse gas (GHG) energy efficiency emissions reduction strategies
Pinjarra DGs require CRD for site layout and buildings. Industrial DGs require energy efficient internal and external lighting with timed, senor/occupancy control systems.
Rockingham DGs require CRD for buildings. Overall projected Industry Zone energy consumption is 52 per cent less than a standard industrial development, with every development/ tenant required to achieve a minimum 30 per cent improvement (against a reference case). An energy study needs to be submitted to LandCorp as part of the Building License process.
Enterprise Park, DGs provide guidance on CRD for buildings and Wangara improved energy management.
WGV, White DGs require CRD subdivision layout and CRD 60 per cent reduction of grid consumption for Gum Valley buildings. DGs set a minimum requirement for 7 WGV as a whole. Single residential lots achieve star NatHERS and require builders to install solar 100 per cent (zero net annual energy) if they hot water or heat pump technology and energy adopt the Sustainability Package ($10,000 efficient appliances and lighting. including an upgrade from the mandatory 1.5Kw to 3.5Kw solar panel). Shared solar and battery- storage micro-grid trial, and ‘Living Laboratory’ innovation projects.
*NatHERS – Nationwide House Energy Rating Scheme, rating for energy efficiency and thermal performance. ** Climate Responsive Design incorporates solar passive design and ventilation principles.
Climate responsive design at Waranyjarri Estate
Findings of a post-development layout that maintained and channel investigation into the Climate the movement of seasonal breezes, Responsive Design (CRD) approach Waranyjarri estate features large in Broome North have found open spaces to maintain the speed of Waranyjarri Estate residents spend an the breeze and lots with large back average of 24 per cent less on their and side setbacks facilitating wind power bills (source: Horizon Power movement. Building design guidelines energy use data) compared to similar also optimised permeability and cross households in Old Broome, as they ventilation. benefit from a subdivision design The Climate Responsive design that maintains and channels the validation study demonstrates the movement of seasonal breezes. existence of the wind permeability Mini weather stations installed prior within the Waranyjarri Estate. to the development of Broome Confirmation of the effectiveness North measured the wind speed of this approach will inform further and direction at ground level. The development at future Broome North results informed planning and precincts and projects across the design strategies to maintain wind Kimberley and Pilbara region with permeability after development. similar weather patterns In addition to a subdivision design
PERFORMANCE 51 SECTION 07
Batavia Coast, Geraldton
Waste Topic boundary human health and the environment, LandCorp does not have any direct enabling land development control over these impacts we We investigate land for through decontamination. seek to encourage the efficient use contamination, identify hazardous of materials. waste and undertake remediation Land, infrastructure and property and removal of waste or soil to development involve demolition and Performance enable the proposed land-use, or construction activities that result in Land contamination and mitigate potential risk to human waste to landfill with subsequent remediation health or the environment. LandCorp environmental and financial (landfill has expertise in the investigation, levy) impacts. LandCorp seeks to During our due diligence process management and remediation of encourage and work with contractors we investigate all sites for potential sites contaminated by historic land and consultants to use resources contamination. Any property which uses. We also assist Government with efficiently and reduce, reuse and may be contaminated, is assessed the management of contaminated recycle materials during demolition to determine if it poses a risk to sites, providing advice and at and construction. The behavior of the environment or human health. times managing the investigation residential and business customers Remediation is completed where and remediation process. The determines the ongoing waste required. Table 11 outlines the projects mitigation and management of management practices associated investigated for contamination these impacts ensures we protect with living and working. While during 2017-18.
Table 11: Projects investigated for contamination during 2017-18
Project name and location Project area investigated Intended future use (hectares)
LandCorp projects
Batavia Coast, Geraldton. 0.87 Commercial and residential
Former Shenton Park Hospital. 15.8 Commercial and residential
Lot 167 Moylan Road, Hope Valley. 1.84 Commercial and industrial
Projects managed for other Agencies
20 x Department of Fire and Emergency 7.59 Continued DFES Use Services (DFES) Metro and Regional stations.
Former Maratha Senior High School (for the 9.5 Unknown Department of Planning Lands and Heritage).
Total 35.6 hectares
PERFORMANCE 52 SECTION Table 12 outlines our projects remediated for contamination during 2017-18. 07 Table 12: Projects remediated for contamination during 2017-18
Project name and location Total land area decontaminated/ Intended future land use remediated during 2017-18 (hectares)
LandCorp projects
Former Port Hedland Hospital 3.5 Unknown
Montario Quarter, former Shenton Park Hospital 15.8 Residential and commercial
Projects managed for other Agencies
Northam TAFE (for Department of Training and 0.6 Future TAFE use Workforce development) Department of Primary Industries and Regional 0.1 Agriculture Development Mount Barker Depot
Total 20
Hazardous waste Table 13 identifies asbestos infrastructure sites. Asbestos or disposed of through landfills licensed contaminated soil and asbestos- asbestos contaminated soil is to receive asbestos, no hazardous containing building materials which excavated from sites by appropriately waste was exported, imported or were removed from several infill qualified asbestos removal treated by LandCorp. development sites and government contractors. The asbestos waste is
Table 13: Asbestos contaminated soil removed during 2017-18
Project and location Source of hazardous waste Total waste* Total hazardous waste disposed of to landfill
Northam TAFE Asbestos fragments in soil. 3.2kg 3.2kg
Montario Quarter, Former Asbestos and pesticides in soil. 1,340m3 1,340m3 Shenton Park Hospital Site
Port Hedland Hospital Asbestos contaminated soil. 2,097 tonnes 2,097 tonnes
Port Hedland Hospital Asbestos containing building materials. 821 tonnes 821 tonnes
DAFWA Mount Barker Depot Asbestos contaminated soil. 328m3 328m3
DAFWA Mount Barker Depot Liquid waste – pesticides, fuels. 28m3 28m3
*The dual mode of measurement is due to the variety of material disposed.
PERFORMANCE 53 Port Hedland Hospital Site SECTION 07
Allara, Eglinton
Demolition and construction waste We had 15 projects with demolition or construction activities in 2017-18. Of these projects, 13 had waste management initiatives for demolition or construction activities, these projects are outlined in Table 14 and 15.
Table 14: Projects with demolition during 2017-18 and waste initiatives
Project and location Waste management initiatives and performance
Former Hamilton • Demolition of over 10,150sqm of buildings at the former Hamilton Hill High School site Hill High School commenced in June 2018 and is anticipated to be completed in April 2019. • Target to recycle and reuse onsite approximately 6,000m3 or 90 per cent of material from existing buildings and infrastructure, subject to licence approval for on-site crushing. • The Material Retention Schedule requires materials to be reused or recycled where possible, including all timber greater than 300mm in diameter to be used in nature playgrounds, furniture and decking. All other timber to be mulched for use in landscaping.
Former Port • Demolition of over 16,000sqm of buildings at, and remediation of, the former Port Hedland Hedland Hospital Hospital site commenced in October 2016 and were completed in October 2017. Site • A contractor environmental management plan includes practices to minimize health and environmental impacts and waste segregation for recycling/reuse in the project (e.g. in landscaping) where practicable. • Total material removed in 2017-18 was 12,425 tonnes, of which 8,702 tonnes (70 per cent) was recycled and 3,723 tonnes (30 per cent) were taken to landfill at South Hedland.
PERFORMANCE 54 SECTION Table 15: Projects with construction during 2017-18 and waste initiatives 07 Project and location Waste management initiatives and performance
Alkimos Beach, • Civil contractor required to divert a minimum of 60 per cent (by mass) of civil waste from Alkimos landfill. To date a 89% waste diversion has been achieved • Target to recycle/reuse at least 60 per cent of civil and built form construction waste (by mass). Builders waste recycling program delivered by Earthcare Recycling achieved above industry recycling rates at 91 per cent (based on data from July 2017 to December 2018).
Albany Middleton • Albany Middleton Beach Stage 1 civil and landscaping works to realign Flinders parade are Beach Activity complete and officially opened on 31 January 2018. Centre • Waste was sorted and contained onsite during construction works. Where possible waste has been recycled as well as product reused offsite by contractor.
Claremont on • Design guidelines require the preparation of a waste management strategy in consultation the Park with the Town of Claremont.
Denmark Light • All landfill material removed from this site has been reused as fill on a neighbouring site Industrial Area previously used for sand excavation. Suitable excavated rock is stored on site for reuse in pavement construction.
Eglinton North, • Allara is a Master Builders Smart Waste Zone which requires the development of a waste Allara management plan including initiatives to reduce, reuse and recycle. • Target in place to recycle or reuse a minimum of 60 per cent of demolition, land clearing or civil works materials/products on site. 95 per cent of waste during the construction of lots (in 2017-18) has been recycled/reused, surpassing the target. • Design guidelines encourage builders to recycle construction materials, as well as consider prefabrication to reduce waste. • An onsite Recycling Centre is to be trialled for the residents of Allara for use on their dwellings within the estate. All materials provided such as rock, boulders, sand, mulch, top soil, etc. are to come directly from the Allara site.
Jane Brook, • Civil works construction commenced end January 2018 and will achieve practical completion Highland Range by August 2018. • Civil contractor is required to recycle rocks retrieved during earthworks into drainage basins incorporating POS within the estate.
Parkside Walk, • Civil contractor required to prepare and implement a waste management plan to achieve a Jolimont minimum of 70 per cent waste recycled or re-used. • Built form guide requires 80 per cent of built form construction waste be recycled or re-used. • Only minor finishing works were undertaken in 2017-18 and no material was removed from site.
McLarty Explosives • Construction of the McLarty Explosives Reserve project commenced in August 2017 and is Reserve scheduled to be completed in August 2018. • Remnant vegetation was mulched, and sand and rock removed during civil works, were reused on site.
PERFORMANCE 55 SECTION Table 15: Projects with construction during 2017-18 and waste initiatives con’t. 07 Project and location Waste management initiatives and performance
Murdoch Health • Waste management is included as part of the contractors Environmental Management Plan. and Knowledge • Stage 1 construction works commenced in October 2017, with Stage 1A (three lots) practical Precinct completion achieved in December 2017. As at May 31, 92 percent of waste from construction works was recycled. This included re-use of fill on another project, and using material in reconstituted blocks and road base.
Montario Quarter, • Construction commenced in February 2018 and practical completion is expected for Shenton Park October 2018. • Waste Reduction Plan target that at least 60 per cent of the construction and demolition waste will be recycled or reused. Material that will be re-purposed will be used for landscaping works.
Flinders Precinct, • Design Guidelines require a waste management plan to be lodged with a Building Licence Latitude 32 application to minimize waste to landfill, ensure dedicated recycling storage areas are incorporated into building design and outline the management of any toxic materials to be used on site.
Demolition and construction waste
Smart Waste The Master Builders WA has set up the Smart Waste Zone initiative to help Details for Allara, Eglinton and Alkimos builders and house buyers to reduce the amount of building waste that goes Beach are outlined in table 15. into landfill. Keen to reduce waste and to reduce the levy they pay on landfill, At WGV a Smart Waste Information leading builders are now: Guide was produced for all lot • reducing waste through clever The following three projects have purchasers, this helped explain the design and ordering adopted the Master Builders Smart benefits of adopting waste avoidance and recycling measures in their home • reusing spare materials Waste guide: construction. A smartwaste and • Alkimos Beach • sorting waste on site to improve recycling compound was established by recycling rates, and • Allara, Eglinton; and the Earth Care Recycling who offered • engaging specialist waste service • WGV at White Gum Valley. separate bins for recycling metal, timber, providers to sort and recover masonry and paper at a competitive waste materials rate to single skips for all builders at WGV. In addition, on site signage indicated WGV as a Smart Waste Zone.
PERFORMANCE 56 SECTION Engaging and building local communities 07 Topic boundary Engaging with the community opportunities to positively influence establish engagement in such a is a key success factor, it helps development outcomes. way that it becomes ‘the way we do us identify needs, aspirations, things around here’. This is a two- ‘Building an engaging organisation’ expectations and concerns that fold process of 1) creating a culture is an important risk management will assist us to deliver a place that of engagement and 2) integrating consideration. However, to fully maximises community benefit. It also engagement into organisational realise the value and benefits of provides the local community with systems and processes. engagement we are aiming to
Performance
Strategic Engagement Review awareness, commitment and buy-in engagement into the organisation As we strive towards consistent to engagement). It is designed to as well as supporting consideration best practice in stakeholder and provide high-level metrics across of engagement approaches and community engagement, it does so unsatisfactory, satisfactory and leading associated costs earlier in the project within a shifting socio-political and practice, to benchmark and track the lifecycle, while also differentiating economic environment. Coupled organisation’s engagement approach. the level of involvement for projects with a forthcoming and significant with a higher or lower number of More than 50 percent of the change management program, as social risks. organisation participated in the we merge with the Metropolitan assessment through interviews and The assessment will inform the Redevelopment Authority, remaining focus groups. Overall there was a development of a strategy for 2018 agile and proactive in preparing high level of awareness about the onwards, providing recommendations for and delivering stakeholder and value of engagement and staff to guide how we continue to improve. community engagement will become believed LandCorp was committed increasingly challenging but also to engagement but would like to increasingly important. build on existing practices, systems A strategic engagement assessment and processes and improve internal has been undertaken to provide capacity to increase the organisation’s insights about how engagement commitment to better engaging is undertaken at a structural level stakeholders and community. (the managerial/tactical and Recommendations include reviewing operational levels) and embedded the focus of the community within the culture (level of relations team in both embedding
[GRI Standards 102-43; 102-44]
PERFORMANCE 57 Pretty Pool, Port Hedland SECTION Improving metropolitan Aboriginal engagement 07 In preparation for the merger with development whilst ensuring a to influence the urban renewal design the Metropolitan Redevelopment sense of place is established for all process. Essentially the template Authority (MRA), we have become Western Australians. provides a common language that party to the Cultural Compact enables many different elements to The Cultural Compact aligns Agreement with the Whadjuk people be integrated without losing their conventional project delivery with the that has been established by the MRA. identity, guiding everything from Noongar Six Season calendar providing architecture; landscape design public Kaart Koort Waarnginy (Head, Heart, a framework and tools to guide people art; connectivity; to procurement Talking) has been developed as through the Kaart Koort Waarnginy and provides a ‘sense of place’ an authentic cultural engagement (Head, Heart, Talking) process and that ultimately reflects tangible process with the Noongar foster a shared understanding with the community outcomes. community, to set a benchmark for Noongar community. participation and to foster strong In integrating and evolving Kaart Through the use of a creative template, collaborative partnerships and Koort Waarnginy, to meet business as a project progresses through its involvement of Aboriginal people in model and objectives, two pilot lifecycle, the stories that different projects that are being developed on projects will be initially implemented communities tell about a place are Country – Whadjuk Noongar boodja. across Ocean Reef Marina and collated and those that can be visible in The framework also helps to identify Subiaco East Redevelopment. the built and natural environment start opportunities for shared economic
Community consultation and engagement
All of our projects have a level of This allows for a considered, social risk assessment, stakeholder tailored approach depending on analysis or the development each project, ranging from inform, of stakeholder and community consult, involve, collaborate to engagement plans which outline the empower, ensuring a foundation of appropriate level of engagement. trust and transparency. The below image outlines the spectrum of our engagement approach.
Engagement approach
Inform We will keep you informed.
Consult We will keep you informed, listen to and acknowledge concerns and provide feedback on how public input influences the decision.
Involve We will work with you to ensure that your concerns and issues are directly reflected in the alternatives developed and provide feedback on how public input influences the decision.
Collaborate We will look to you for direct advice and innovation in formulating solutions and incorporate your advice and recommendations into the decisions to the maximum extent possible.
Empower We will implement what you decide.
PERFORMANCE 58 SECTION During 2017-18 we undertook the following key engagement activities: 07
Montario Quarter in Shenton Park • Through a range of communication channels we have provided project updates including the first land sales, which will bring new amenity to the local area, which was a key aspiration of the community during the consultation period. • We have also continued to meet directly with key stakeholder and community groups with significant interests or concerns regarding Artist impression for illustrative purposes only the project.
• We also continue to manage the natural tension between balancing different community values associated with environmental, economic and social outcomes with ongoing opposition to perceived environmental impacts at Montario Quarter.
• For more information on our approach visit website.
Ocean Reef Marina Hamilton Senior High School Subiaco East • Through the project’s governance • 70 people attended a community • Early engagement with model, we have established regular information session to provide primary stakeholders through a meetings with key stakeholders feedback on concept plans to Precinct Liaison Committee has across state and local government, inform the structure planning commenced to input into the working together to achieve the process for the project. development of a business case. necessary statutory approvals and • Engagement with local Whadjuk • An initial workshop with the guide the planning and design. people and the local Council’s Whadjuk Working Party has • Working with our partners, the Aboriginal Reference Group has occurred as part of the broader City of Joondalup, we continue seen input in to the concept cultural engagement process. to keep the community informed development phase. through traditional and digital • Largely we have kept the Peel Business Park, Nambeelup communication channels. community updated about the • A landowners group established to • Key community groups have been project’s progress through our discuss the long term planning and engaged as we review the concept online engagement platform, development of Peel Business Park plan to ensure it reflects feedback with 2,000 visitors seeking out continues to regularly meet. from previous consultation, it is information or participating in appropriate for the location, is activities online. environmentally responsible and opportunities for community infrastructure are optimised.
[GRI Standards 102-43; 102-44] PERFORMANCE 59 SECTION 07 Transforming Bunbury Waterfront • As the planning and design for Stages 2 and 3 have been underway, we have worked collaboratively with our partners the South West Development Commission and Department of Transport to keep key stakeholders and local community informed of the completion of Stage 1 and progress being made on the next phase of project planning.
Bunbury Waterfront, artist impression for illustrative purposes only
Ascot, Fauntleroy Avenue support the amendment for final • As part of our due diligence we approval. This was followed by the completed significant consultation Minister for Transport; Planning’ to identify and understand the Lands announcement on 1 March needs of the community, the 2018 that the project would cease. potential environmental impacts The Commission’s reasons and the commercial viability of the for withdrawal the proposal project. After detailed investigation included the proposed scale of it was determined that the the development being large challenges of the site would make compared to the overall Point the project unviable. The land Peron reserve; and the Rockingham has been transferred back to the Lakes Regional Park, including Lake State of Western Australia to be Richmond, is an important link in a amalgamated with the adjoining series of reserves. Garvey Park Reserve. A total of 496 submissions were Albany Middleton Beach, artist Mangles Bay, Rockingham received, with 403 from nearby impression for illustrative purposes only • Managed by Cedar Woods suburbs objecting the proposed Property Group the proposed Albany Middleton Beach amendment. Non-supportive amendment sought to rezone parts • As part of the extensive submissions raised issues with the of Point Peron reserve in the City stakeholder engagement program environment, loss of recreational of Rockingham to facilitate the for this project, in collaboration space, non-compliance with WAPC development of a marina as well as with the City of Albany, two policies, regional road impacts, the tourism, commercial, public open Community Information Sessions scale and mix of land uses, and space and residential land uses. Key were initiated to support the land tenure arrangements. environmental approvals for the statutory planning process for the proposal had been granted at both Design Guidelines and Foreshore State and Federal levels. Management Plan. • In September 2017, the Western • For more information on our Australian Planning Commission approach visit our website. considered the MRS amendment for the Mangles Bay Marina. proposal, and resolved to not
[GRI Standards 102-43; 102-44] PERFORMANCE 60 SECTION
What we are hearing from local communities This past year we have been With a growing level of distrust of Land delivery for housing and jobs 07 operating in a shifting socio-political traditional mainstream institutions, will always have an impact on the and economic environment and these there has been an increasing level of pre-existing enviornment. We seek differences are also reflected in the opposition to development projects, to mitigate, reduce and manage response from communities about where the public has called for impacts to achieve balanced perceived changes to their way of more timely information and earlier social, environmental and ecominic life, which they believe will result from engagement. outcomes that resond to community urban consolidation. This has involved needs and aspirations. some community resistance to infill development, posing a significant challenge for Perth in reaching planned infill targets.
Community development The multisensory playground is Newman Town Square launch Alkimos beach located in Kinkuna Park. It also The Newman Town Square reached The Sprout Community Hub is an involves Playground Centre’s Smart practical completion with a formal integral part of the Alkmos Beach Playground technology, the BIBA opening event held on 28 July 2017. community and will continue to App. The ‘Biba Adventures’ mobile A full weekend of events took place, operate in its current location until phone application encourages which were well attended by the December 2018. In 2019 the Hub will children to use parks interactively, Newman community followed by a relocate to the new development at with games specifically designed six-month event scheduled to ensure Alkimos Vista. The Sprout Community to get children active and playing the Square is fully activated. The park Hub is a temporary community space for longer, while also increasing space is supported with built form, located in the Escarpment Park at engagement between children and containing a business incubator, a full Alkimos Beach. It includes a kiosk, their families. Every BIBA game is commercial kitchen that caters for the and space that can cater for co- developed with a unique activity different cooking styles of the local working, events, and training sessions profile and follows a strict “90/10” population and a mezzanine function with built in multimedia. rule. Kids must be physically active for space that is utilised for community at least 90 per cent of the game, with events. The town square is regularly The Goods Shed, Claremont on only 10 per cent of their attention used for sporting and community the Park ever spent with the screen. events and has provided a welcoming Claremont on the Park is home green public open space on what was Parents and carers can download to the Goods Shed, a culture and previously an uninviting carpark. community hub operated by FORM a free smartphone app that reacts and launched in 2016. The Goods to markers attached to playground Housing for artists and creatives at Shed has been made possible equipment. The markers send WGV, White Gum Valley through LandCorp leasing the instructions for playground games In August 2017 the Minister for restored State heritage railway to the smartphone, creating an Housing officially opened the building to FORM a not-for-profit engaging imaginary scenario Sustainable Housing for Artists and organisation that is delivering combined with outdoor play. The Creatives (SHAC) development program of community building and parent or carer remains in control at WGV, White Gum Valley. The collaboration; artistic and intellectual of the smartphone at all times while project was an affordable housing excellence and skill development, their children enjoy the imaginative partnership between Access Housing, exchange and lifelong learning. play. Markers do not prevent children LandCorp and the SHAC artists from using the playground without group. The affordable housing of Allara at Eglinton the app. The Smart Playground app 12 apartments is for professional Allara at Eglinton, developed by remembers which activities children artists working in the Fremantle LandCorp and Satterley, is the first did previously and provides new area who have been priced out of estate in Australia to have a ‘smart challenges for each visit, effectively the local housing market. LandCorp playground’ as part of a trial with the reinventing the park. The technology also provided half the cost of the City of Wanneroo to combine digital also collects data to help the City solar PVs and batteries installed in and physical play for children. decide the best locations for new the SHAC building which enabled it playgrounds and what types of to participate in the ARENA funded equipment would be best suited. WGV micro grid research.
[GRI Standards 102-43; 102-44] PERFORMANCE 61 SECTION
Urban Health Check Supporting the Heart Foundation - In partnership with the University of encouraged excellent discussion Healthy and Active By Design 07 Western Australia (UWA), we trialled and feedback, whilst also allowing This research explored how to make a new GIS software tool to investigate community members to better Australian cities and towns more areas of opportunity for improved understand the constraints and active and healthy. Producing a tool community health and broader considerations the project team were to assist with planning and designing benefits associated with infill renewal. working with. communities to encourage healthy Through a collaborative approach, Subsequently some of the key and active lifestyles. The planning tool the Urban Health Check planning benefits of this trial included: is completed and training is underway tool was trialled on a LandCorp infill • defining scientifically proven to promote the use of the tool. project, enabling UWA to measure benefits of a development to the We have several projects featured as the base scenario (current situation broader community as a result of case studies for healthy and active of a site) as well as for each of the an urban regeneration project; design. The projects are Sprout proposed development concept • demonstrating the tangible Alkimos Beach, Karratha Vernacular options and their projected benefits benefits of a range of different Design Principles, Knutsford to the surrounding community. development options with Fremantle, WGV at White Gum Valley; The tool measured elements of street a community; and Newman Town Square. connectivity, residential density, Community Investment amount of and access to public open • supporting innovation and Our sponsorship program helps to space, access to public transport, leadership within the Western build awareness for the key role we provision of and access to local Australian property industry play in realising Western Australia’s shops and services, tree canopy to define the benefits of potential. Sponsorships which cover, community facilities and urban regeneration; walkability. The spatial layers were support community groups allow • mitigating some of the usual issues then integrated into the mapping tool us to contribute to the growth and raised by the community during and used as part of our community development of the communities in consultation exercises; and consultation process. which we are active. By supporting • increasing trust and building events and programs which appeal Feedback from the community our relationships with key and matter to our stakeholders and involved was positive suggesting stakeholders and the community the communities in which we operate, that the interactive tool was highly who participated. we are able to increase brand engaging, allowing people to loyalty and reinforce key messages, This research project has the potential make suggestions regarding the values and objectives. In 2017-18 we to demonstrate innovative guidance possible relocation, removal or delivered $180,222 in sponsorship and tools that will assist us and our inclusion of certain elements and the to support community and industry industry partners in improving and resultant impact on the proposed groups across the State. demonstrating community wellbeing concept plan. These changes were outcomes. demonstrated in real time and this
PERFORMANCE 62 Onslow SECTION Design quality 07 Topic boundary Having a good design process each location. Our planning and To ensure the best possible outcomes helps us understand the intrinsic urban design decision-making and on the ground we employ a qualities of a place and build on procurement directly impacts the range of internal design tools and the opportunities it offers, making quality of the built environment and processes which help us guide and the most of the investment in its responsiveness to environmental monitor outcomes. the development and creating a and community needs. strong place based response for
Performance
Design reviews for felt they contributed to better quality The Urban Design Research continuous improvement building and design outcomes in their Committee (UDRC), comprising Our design review process helps us neighbourhood, 67 per cent felt they representatives from each agency monitor and review how each project contributed a lot to better outcomes. has been set up to identify and is tracking against the original project co-ordinate research priorities for We have been working closely with objectives and in particular, how well it 2018. Two priority research projects the Department of Planning, The is responding to the site’s context and were identified for immediate City of Albany and the Office of community. This helps us tailor the commencement with additional the Government Architect for the design to the opportunities of the site research projects to be selected past 12 months to ensure that any and allows for continuous evaluation at a later stage. The two research proposed development in Middleton and improvement. projects selected are: innovative Beach, Albany achieves high quality tools for community engagement, This year we have undertaken design built-form outcomes that respond to the communications and collaborative reviews for two infill projects, the local context. The development of the design; and overcoming the barriers former Hamilton Hill Senior High Middleton Beach Design Guidelines has to medium density development. School and Shoreline in Cockburn been based on the State Planning Policy Coast. Comments centred on the 7 (SPP7) Design WA and will require The first project is to develop and provision of diversity of lot and that all development proposals go refine innovative tools for community housing types to address changing through an appropriate design review engagement to assist with the demographic trends and affordability, process suitable for this iconic location. communication of key policy initiatives and the provision of amenity and to a variety of stakeholders in The content of the guidelines has been landscape in public spaces. Two particular those with potentially limited informed by detailed planning and reviews were also undertaken for spatial and/or design knowledge. design including site analysis to ensure greenfield developments Highland an appropriate approach to enhance The second project is to address the Range in Jane Brook and Alkimos the local character and address the ‘missing middle’ in current dwelling Vista in Alkimos. Comments focused significant climatic challenges of the provision. For this project, the ‘missing on provision of public transport links, exposed coastal site. This trial will middle’ is defined as residential pedestrian and cycle connections and inform the content to be included development with a maximum height access to amenity and jobs. in future LandCorp mixed-use and of five storeys and a net density of Design guidelines medium density design guidelines in 40-260 dwellings per hectare. This Design guidelines help establish activity centres and infill areas. typically includes two to three storey consistency and high quality design compact housing: terrace, maisonette Collaborative research relationship outcomes in the built environment (manor), dual occupancy housing, A three-year collaborative research for a range of projects in different townhouses, and low-rise apartments. agreement between the Australian contexts across the State. Of the 306 The aim of this project is to better Urban Design Research Centre, lots sold across 44 projects 87 per understand the barriers mid-tier the Western Australian Planning cent of lots had design guidelines developers/builders experience in Commission, the Department of in place. Research of our 2017 delivering medium density on infill Communities and LandCorp to residential land customers identified sites in Perth, and where possible support a more coordinated approach that 90 per cent of buyers who were develop strategies to mitigate barriers. to urban design research came into familiar with the design guidelines effect in July 2017.
PERFORMANCE 63 SECTION Equity and inclusion 07 Topic boundary We consider equity and inclusion providing access to affordable mental health and wellbeing, and fundamental to creating strong, land for housing, business and creating inclusive networks for travel. healthy and diverse communities. In employment, creating equitable Everyone in the community should land and infrastructure development and safe public spaces, providing have the opportunity to enjoy places equity and inclusion includes places that support physical and that are equitable and inclusive.
Performance
Affordable land and housing outcomes Access to affordable land and Strategy 2010- 2020: Opening Doors dedicate at least 15 per cent of our housing for Western Australians is to Affordable Housing which seeks land and housing to supply affordable an important area of focus when we to improve access to affordable housing outcomes. Table 16 outlines consider our role in improving equity housing by delivering a range of LandCorp’s affordability performance and inclusion. We support the State housing options for people on low to across several measures. Government’s Affordable Housing moderate incomes. Our target is to
Table 16: Affordability measures and performance
Measures Metropolitan performance Regional performance
Percentage of lots sold in 2017-18 67.8 per cent of lots sold across 85.7 per cent of lots sold across at an affordable price using the metropolitan Perth in 2017-18 sold at regional WA in 2017-18 sold at an Department of Communities an affordable price. affordable price. affordability price points for the sub regions of the metropolitan area and regional WA.
Percentage of lots sold in 2017-18 78.9 per cent of LandCorp lots 47.7 per cent of LandCorp lots were at or below the REIWA median were sold at or below the REIWA sold at or below the REIWA regional lot price. metropolitan median lot price of median lot price of $165,000. $285,000.
Percentage of lots sold in 2017-18 at 46 per cent of LandCorp lots 33.4 per cent of LandCorp lots were or below the REIWA lower quartile were sold at or below the REIWA sold at or below the REIWA regional lot price. metropolitan lower quartile lot price lower quartile lot price of $99,200. of $215,000.
Note: Real Estate Institute of Western Australia (REIWA) December 2017 (mid-point) data sourced directly from REIWA on 12 July 2018.
The key metropolitan projects to deliver affordable outcomes in 2017- 18 included Alkimos, Champion Lakes, Allara at Eglington, Blackmore Park at Girrawheen and Seville Grove at Armadale. Regionally, projects delivering affordability outcomes were Cervantes, Denmark, Dalwallinu, Gnowangerup and Leonora.
Blackmore Park, Girrawheen
PERFORMANCE 64 SECTION
Multi-residential lot sales In May 2018, community housing Community hardship affordability provider Access Housing won The Hope Valley Wattleup 07 In line with a review of our the Property Council of Australia Redevelopment Act 2000 was Affordability Policy completed in Award for Best Affordable established for the creation of the 2016, we have sought to measure Housing Development for Haven Hope Valley Wattleup Redevelopment our affordability performance in at Rockingham. This project was Area. Under the powers of the Act, relation to multi-residential lot sales. a collaborative effort with Access and under specific principles and We calculate multi-residential land Housing, delivering 32 properties over criteria LandCorp can undertake sales affordability by determining two complexes, including affordable to purchase rural properties where the predicted land value for each accommodation for seniors, families owners can provide evidence of dwelling by dividing the gross lot sale and couples on the social housing genuine hardship. During 2017-18, price by the predicted number of waiting list, as well as apartments for two voluntary hardship cases were dwellings constructed on the lot. This sale on the open market. settled in our Latitude 32 Industry is measured against the Affordable Zone development. Working with others to support Land Price Point for metropolitan an aging population and regional sub-regions provided by The Big Issue – homelessness In March 2018, Oryx Communities was Department of Communities. Using and disadvantage selected as the preferred proponent this calculation, we sold 15 multi The Big Issue CEO Selling campaign to develop a $107 million multi- residential lots in 2017-18 of which is to celebrate International Vendor generational facility at LandCorp’s 93.4 per cent were affordable. These Week and shine a spotlight on Claremont on the Park. Known as affordable multi-residential sales were homeless and disadvantaged The Queenslea, the development located in Alkimos, Hamilton Hill and vendors, who are working to proposes to provide aged care for Jolimont. improve their lives. This year our about 115 residents and offer a variety CEO again participated in the Working with others to facilitate of housing options and support campaign – receiving the chance affordable outcomes services. It will include in the order to walk a short while in a Big Issue In 2017-18, we sold six lots to the of 60 fully serviced independent and vendor’s shoes, and raising awareness Department of Communities. All assisted living units with the capacity among staff of the very real issues five lots in the metropolitan area to respond to Western Australia’s of homelessness and disadvantage were located in Alkimos, including demand for accommodation for within our community. two multi-residential. One single National Disability Insurance Scheme residential lot was also sold in supported residents. Residents will Workplace Giving Program Broome. These sales support the also have access to residential respite Our program for 2017 supported the Department to provide housing for care, memory support day care and not-for-profit group Edmund Rice some of the most vulnerable people a range of health care services at the Camps for Kids WA Inc. (ERC). ERC in WA, including those on the social development’s community care hub. provide recreation and developmental housing waiting list. activities for disadvantaged children Multi-generational living aged 7–16 and their families, who In August 2017, Housing Minister A prominent corner of our Claremont would otherwise not have such Peter Tinley, officially opened the on the Park project will deliver opportunities. Approximately 45 Sustainable Housing for Artists and Perth’s first Multi-Age Precinct, staff participated in the workplace Creatives (SHAC) development in a 140-apartment development with giving program and contributed White Gum Valley. The development high quality activated retail on the over $15,000 in 2017. In addition to is a partnership with Access Housing ground floor along with commercial the financial contribution from staff, and the Fremantle-based SHAC space for Amana Living, who will several also volunteered at ERC artistic co-operative, accommodating become an onsite service provider fundraising events and camps. professional artists and creative to support multi-generational living individuals who are priced out of the (including hospitality and lifestyle, Edmund Rice Camps for Kids WA housing market. The development cleaning and laundry, and personal Inc. was again chosen as our work has achieved a ‘seven-star’ energy care and clinical services). place giving recipient for 2018. We efficiency rating and is one of the are aiming to raise over $12,000 few residential strata complexes to from workplace giving and other offer community-based solar energy fundraising during the year, as well as capture, storage and shared usage continue to volunteer at ERC events infrastructure for its residents. and camps.
PERFORMANCE 65 SECTION 07
Culture and heritage Topic boundary The unique culture, heritage, history, means that our work disturbs story and characteristics of a place or changes the built and natural underpin its ‘sense of place’. This environment and as a result, impacts could include Indigenous and culture and heritage. Understanding European culture and range from the intrinsic qualities of a site through architectural built form, to the the planning and design process, character of the landscape and provides the best opportunity to Aboriginal song lines. The nature of recognise culture and heritage and being a land development agency builds on its uniqueness.
Performance
Native Title Agreements Reconciliation action plan We have entered into a number of Our vision for a reconciled Western Native Title Agreements which have Australia is one in which the Traditional enabled development to proceed Owners and Custodians of our State on land which has been subject to are recognised and celebrated, and Native Title. Generally, agreements the inequities and unacceptable create obligations, which among gaps that exist between Aboriginal other things require five per cent of and Torres Strait Islander peoples developed lots sales payments to and other Western Australians are the respective Traditional Owners closed, and our various cultures can via the Aboriginal corporation or live in harmony. Through our work, trustee associated with the Native we aim to address these inequities Title agreement. by building strong relationships, increasing recognition of traditional These payments are made after the culture within our developments land is developed and sold to its new and by improving employment and owner. In 2017-18, payments to Native economic development opportunities Title claimant bodies corporate, in for Aboriginal and Torres Strait accordance with over 20 different Islander peoples. Agreements, totalled $3,628,790.75. In March 2017, our Reconciliation Action In addition, $8,292.44 was paid to Plan (RAP) (1 January 2017 to 30 June a Government Trust for a recipient 2018) was endorsed by Reconciliation group covered by the South West Australia and is available on our Settlement Agreement. We hold in website. Our RAP includes actions trust accounts a further $1,615,180.30 and targets for relationships, respect for Native Title claimants that have and opportunities. Each target is a not as yet established the required small contribution towards closing the recipient Body Corporates. substantial gap between Aboriginal and Torres Strait Islanders and the rest of the Western Australian community. In recent years, we have found like- minded partners in our reconciliation journey and will continue to find others so we may collectively make a bigger difference. We are currently preparing our new RAP plan for 2018- 2020 using the ‘stretch’ template from Reconciliation Australia WA.
PERFORMANCE 66 SECTION Recognising Aboriginal heritage, culture and history 07 Corporately we played a role in During 2017-18, the following projects Art is a central part of Aboriginal many ways: had local Aboriginal heritage, culture culture, connecting the past and • acknowledgement of Country or history recognised: present, and the land with the people. and Elders at internal and • The Quarter and Baynton West Through Aboriginal designed public external events; in Karratha; art, we can promote Aboriginal culture in our estates to the wider • ensured recognition during • Waranyjarri Estate and Broome public and enable the economic communications with stakeholders; Road Industrial Estate in Broome; participation of Aboriginal artists. • supported the initiatives of • Newman Town Centre in Newman; During 2017-18 the following projects other organisations including • Blackmore Park Estate in Girrawheen; had indigenous artists or public art Reconciliation Western Australia; • Allara in Eglington; and initiatives: • working collaboratively with • Alkimos Beach and Alkimos Vista Aboriginal and Torres Strait Islander • at The Quarter and Baynton West in in Alkimos. staff on the development and Karratha artwork designed by the implementation of the RAP; Initiatives included providing Welcome Roebourne Art Group was installed; • engaging with Aboriginal Packs from the Yawuru peoples to • in Newman we worked with the Reference Groups on our projects; land purchasers and new residents in Nyiyaparli and Martu people on the Waranjarri Estate in Broome. implementation of the Newman • liaising with major Aboriginal Town Centre Cloud Rock and organisations on the most Also in Broome we held an Illumination Rainmaker artwork and stories. appropriate ways to engage with Ceremony with the Yawuru artists The Town Centre was launched in Aboriginal people; Maxine Charlie and Martha Lee and July 2017. • compiling a register of Aboriginal local dignitaries to celebrate the • we launched the Broome Road owned contractors for engagement installation of the Broome Road Industrial Entry Statement on LandCorp projects; Industrial estate gateway artwork. sculptures by Yawuru Artists. • undertaking pre-qualifications The artworks create a stunning entry • at Allara in Eglington we activities with identified Aboriginal statement to not just the industrial recognised the aboriginal heritage consultants and contractor estate but the town of Broome itself. at the opening of the Water Park, businesses; and A smoking ceremony was held followed by Dreamtime Klub Kinkuna • actively participating in on site for Alkimos Vista in August Collective Canvas workshop where Reconciliation Week and 2017, with Lendlease and LandCorp traditional art was taught to the NAIDOC Week activities. representatives in attendance. community, with the completed canvas now on public display. The ceremony was led by Senior • at Alkimos Beach LandCorp and Whadjuk Noongar elder Danny Ford, its development partner Lendlease accompanied by a didgeridoo player. held public events displaying the artwork created by the Alkimos ‘Land by the Ocean’ book. A public art and interpretative pedestrian walkway and cycle path commenced to identify and embed Aboriginal culture and sense of place. Welcome Packs and the Alkimos Land by the Ocean book were also provided to all purchasers.
PERFORMANCE 67 Blue Haze Industrial Estate, Broome SECTION
Cultural awareness and competence Recognising European Corporately, our focus in 2017-18 cultural heritage 07 has been on improving our cultural In Montario Quarter, Shenton Park, capacity by offering a variety of our vision is to create a sense of place opportunities, experiences and with a strong focus on accessibility training for staff to improve their and rehabilitation through understanding, engagement practice interpretation of the site’s heritage. and cultural competence. This included: To acknowledge the European • 96 per cent of staff (employed cultural heritage a multitude of more than six months) having initiatives are to be implemented: completed face to face cultural • streets have been named after awareness training involving a full important doctors and nurses to day of general cultural awareness; honour the impact they made on • 100 per cent of staff (employed more the health and wellbeing of patients than six months) having completed at the former hospital; the mandatory online closing the gap • two heritage buildings, including cultural awareness course; Victoria House, have been • 16 staff are enrolled in an online retained on site due to their Cultural Competence course; historical significance; • nine staff attended a cultural • the site contains a number of experience at Elizabeth Quay; heritage listed trees framing the entry to Victoria House and there • staff attended a Reconciliation Week are a number of areas of vegetation event which featured a presentation and remnant native trees that have by Noongar woman Brianne Yarran been identified as significant; and on the Stolen Generation titled Owning Your History; • in recognition of the heritage on site, an e-Book has been made • two staff completed a Murujuga available to the public called “The Aboriginal Corporation Cultural story of Shenton Park”, to capture Awareness Induction and Welcome the site’s rich European heritage. to Country in Karratha in April 2018; • one staff member completed a Claremont on the Park’s partnership Murujuga Aboriginal Corporation with FORM at The Goods Shed Cultural Awareness Induction and has delivered ongoing community Welcome to Country during a site activation programs from the State visit to Karratha in May 2018; Heritage listed building. The cultural • Sorry Day was acknowledged program of events continues to create and information communicated a hub of community interaction and to staff by email on the history of helps bridge the divide between the day; and the Claremont Town Centre and the Claremont on the Park project. The • LandCorp placed an Goods Shed was recognised with a Acknowledgement of Traditional commendation at the 2018 Western Owners in its Perth office Australian Heritage Awards in the reception area. category ‘Adaptive Reuse of a State Registered Place’ for its influence on the Claremont Railway Station.
Corporately, our focus in 2017-18 has been on improving our cultural capacity by offering a variety of opportunities, experiences and training for staff to improve their understanding, engagement practice and cultural competence.
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7.2 Relationships and partnerships
Objective Material issues
We will create value for Government Government. We will also continue • Property services by building on our track record to develop our strong relationships • Stakeholder and customer of delivering social and economic and partnerships with other satisfaction outcomes aligned to Government Government departments and policy, and solving problems for agencies, private sector suppliers, • Supply chain communities and stakeholders.
Property services Topic boundary Property advice and services to Government through the optimisation State and local government agencies of surplus Government assets. can provide significant value to
Performance
Our property services to Government This program of work resulted in the Our aim is to provide property advice following outcomes: that optimise the benefits of surplus • sold 14 properties for Government Government assets and provide grossing $18,344,353. In addition, significant value to State and local 7-9 Field Street Mt Lawley is government agencies. We do this by currently under negotiations helping to carry out due diligence, subject to rezoning being finalised; acquire, develop and market individual sites, as well as providing • the program currently has 23 property and project management Government properties, with an services that include rezoning and the estimated value of $40.4 million, remediation of contaminated sites. on the market; • at the end of June the program had As part of our Government Asset 28 Government properties, worth Services Program, we provide approximately $29 million, being services to the Land Asset progressed towards disposal; and Management Unit within the • through our GAS program, we Department of Lands. The unit is managed the investigation responsible for the identification of contamination issues and and sale of surplus Government land remediation of seven sites for the assets. LandCorp assists and adds Department of Planning, Lands value to the Program by providing the and Heritage, the Department of sale/divestment component. Education and the Department of In 2017-18 we provided a broad Primary Industires and Regional range of property services to Development. Government, at cost recovery rates.
PERFORMANCE 69 SECTION Stakeholder and customer satisfaction 07 Topic boundary Stakeholder and customer management creates positive establish common understanding satisfaction is essential for our relationships, builds mutual and creates opportunities for business success. Effective respect, improves communication corporation and collaboration. stakeholder and customer and knowledge sharing, helps
Performance
Residential land purchaser research Since 2012, a quarterly purchaser and has improved since 2012. In design guidelines the majority satisfaction survey has been 2017 LandCorp achieved an overall believe that these guidelines commissioned to monitor purchaser satisfaction rating contributed to better build quality performance in meeting residential of 90 per cent. The majority of and design outcomes in the area. customers’ needs and expectations purchasers were highly satisfied Although overall satisfaction of the purchasing process. The with the overall purchase process across all areas remains high, we research is conducted with and say they are highly likely to have identified that we can further customers who signed a contract recommend purchasing land improve satisfaction with marketing to purchase land in one of our with LandCorp. High satisfaction materials and design guidelines. estates, typically within the three was also observed across all We are also using this research to months prior to being contacted. touchpoints including sales offices, ensure that the purchase process sales agents and conveyancing. remains as transparent as possible Results are compared across Residential purchasers were also for customers. year and across estates to happy with LandCorp service identify drivers of satisfaction and overall, in terms of being helpful, Target > than 80 per cent dissatisfaction. resolving issues, making customers residential customers feel valued, keeping promises and satisfied with overall In 2017, the sample consisted of purchase process 100 customers. The 2017 findings minimising delays. The majority of show that satisfaction through purchasers were highly satisfied Result 90 per cent residential the purchase process was high with marketing information and customers satisfied with of those familiar with our estate overall purchase process
Customer Relationship Management We have a Customer Relationship Public feedback and complaints these were of a ‘normal’ priority Management (CRM) system that captured in our CRM system link with one being considered ‘high’ helps us to monitor, manage to the relevant project. We aim to priority and one ‘low’ priority. and capture public feedback respond in a timely and appropriate Reasons for complaints were varied and stakeholder and relationship manner as reflected in our Handling however dust was the main issue, interactions. The system helps us Public Feedback Policy. with boundary fencing, vehicle to improve our understanding of movement and safety issues also The expected response time to stakeholders and their interests being referenced. resolve a complaint is five working and the interactions that are days. CRM provides visibility and occurring across the business. reporting mechanisms to monitor Through this understanding and complaints logged and report management, we hope to plan to Executive. and record successful stakeholder During 2017-18, 57 complaints engagement and target our were logged. The majority of communication appropriately.
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Membership of associations Memberships are currently held 07 with a number of key industry and business associations. These are the Green Building Council of Australia, Urban Development Institute of Australia (UDIA), Property Council Australia, the Master Builders Association (MBA), Housing Institute of Australia (HIA), Real Estate Institute of Western Australia (REIWA), and the Chamber of Commerce and Industry (CCI), BioRegional Australia, Australian Institute of Company Directors, Karratha and Districts Chamber of Commerce and Industry, Port Hedland Chamber of Commerce, Onslow Chamber of Commerce and Industry, Bunbury Onslow Geographe Chamber of Commerce and Industry, Joondalup Business Supply chain Association, Australian Institute of Conveyancers, Civil Contractors Topic boundary We seek to achieve sustainable procurement by selecting goods Federation, Melville Cockburn We rely on a network of diverse and/or services with no or lower Chamber of Commerce, Committee suppliers to help us realise our vision negative environmental, social and for Economic Development of and objectives. We are committed economic impacts, and we require Australia, Rockingham Kwinana to using the influence we have and encouraging suppliers to adopt Chamber of Commerce, Collie within our supply chain to achieve responsible practices that optimise Chamber of Commerce and Industry, best practice procurement for all positive environmental, social and Peel Chamber of Commerce and goods and services so that we can economic impacts. Industry, Diversity Council Australia, enhance social, environmental and Australian Marketing Institute, Albany economic outcomes. Chamber of Commerce and Industry, International Association for Public Participation, Australian Institute Performance of Management. Prequalification of our suppliers To achieve balanced social, economic Our staff also participate on the We are committed to ethical, and environmental outcomes we rely following industry committees: accountable and transparent on our network of diverse and multi- UDIA’s Urban Planning; Infrastructure; procurement that maintains probity disciplinary suppliers. and Environmental committees; and and fairness. To manage the supply The panels, registers and preferred the Property Council’s Industrial chain we pre-screen suppliers and supplier lists in place in 2017-18 are Lands and Infrastructure; Sustainable establish panels, preferred supplier outlined in table 17. More than 40 per Development; and Planning lists, or registers via a public cent of our procurement (based on committees; CCI’s Infrastructure process. Pre-screening is based on contracts) occurred via our panels, Forum, MBA’s Housing Committee, expertise, accreditations in quality, registers or preferred supplier lists. and the Green Building Council’s safety, environment and indigenous We also engage Independent Probity State Industry Group. engagement. By procuring from Advisors for high value, complex, panels, registers and preferred unusual or highly contentious supplier lists we seek to mitigate tenders to provide oversight for the potential negative labour, social and tendering and evaluation processes environmental impacts. ensuring compliance.
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Port Hedland Community Centre
Table 17: Panels, preferred supplier lists and registers in place in 2017-18
Panels Registers Preferred supplier lists
• Legal • Aboriginal businesses • Geotechnical engineers • Engineering consultants • Civil works contractors • External project managers • Environmental consultants • Earthworks contractors • Probity auditors • Marketing consultants • Landscaping contractors • Safety consultants • Environmental auditors • Demolition and site • Surveying consultants • Tax and GST consulting remediation contractors • Sustainability consultants services/accounting • Landscape architects • Bushfire planning consultants • Financial advisory services • Planning consultants • Stakeholder/community • Signage engagement consultants • Project risk facilitators • Economists
To support sustainable procurement, in our procurement tendering, overhaul the approach to local we review and update standard selection and contract content in Government procurement procurement documentation, policy, management processes. to promote diversification and growth procedures, checklists, scoring of the Western Australian economy. In 2017-18, 66.2 per cent of our system, and our evaluation decision budget was spent on suppliers Under the policy, prospective suppliers matrix on a regular basis to ensure local to that operation. This was will be required to submit local sustainability considerations are determined by identifying three zones participation plans when participating included in our procurement process. and purchases obtained in those in tenders above proposed thresholds Procuring locally zones. In previous years this report and outline local economic benefits Our procurement approach was distributed to the Department of supply. includes supporting the economic of Finance. Future reporting of local procurement development of local Western However, for the upcoming year achievements will be aligned to Australian business through we will be implementing the State the policy and provided to the implementation of local Government’s ‘Plan for Jobs, and on Department of Jobs, Tourism, Science participation strategies embedded 1 October 2018, the policy will and Innovation.
PERFORMANCE 72 SECTION 07 We are committed to maintaining a diverse supply chain and inclusion of diverse companies in procurement to benefit our business and the wider community.
Participation of Aboriginal Business Table 18: Aboriginal business procurement for 2017-18 We continue to develop strategies Administration, goods and Number of Number of 2017-18 amount for effectively engaging with the services, project consultants business contracts (excluding GST) Aboriginal business sector through and works implementation of procurement strategies, policies, and guidelines Consultants 4 4 $ 34,047 in line with Government policy and working closely with potential Landscaping Contractors 3 6 $ 1,074,184 suppliers to support and engage with local Aboriginal businesses. Site Works and Repairs 1 1 $ 4,005 Contractors Table 18 outlines our Aboriginal business procurement for 2017-18. Total 8 11 $ 1,112,236
*Does not include in kind contribution, for example facilitation work to assist with development opportunities.
The Western Australian State including not-for-profit organisations. of suppliers internally as part of a Government’s Aboriginal A business must be registered on supplier diversity program. The main Procurement Policy implemented the Aboriginal Business Directory objective of this program is focused on 1 July 2018 with the objective Western Australia and Supply on raising awareness and promoting of developing entrepreneurship Nation’s Indigenous Business benefits of supplier diversity, as and business opportunities for the Directory as suitable directories for well as providing an opportunity Aboriginal community. The Policy the first year of the policy (1 July 2018 for companies (e.g. Aboriginal aims to support positive change and to 30 June 2019). businesses and disability enterprises) increased economic participation of to promote their capability, recent Aboriginal people throughout the Achieving efficiency in our projects, achievements and areas State and set targets for the number supply chain of specialisation. of government contracts awarded to We continue to use a fully interactive registered Aboriginal businesses. eTender system to enhance the E-learning module overall quality, timeliness, cost- In March 2018, we launched a new Under the policy the targets effectiveness and transparency module on ELMO, our e-learning established for the first year detail of the tender process for both program on procurement guidelines. one per cent of contracts valued at LandCorp and suppliers. In 2017-18, This module was developed to $50,000 and above are aimed to 69 tender notices (including public increase awareness and applied be awarded to registered Aboriginal and private notices) were advertised understanding of purchasing for businesses when purchasing goods, on TenderLink. staff who are responsible for the services and community services. procurement process. The module This target increases to two per cent Supplier diversity also promotes the importance of on 1 July 2019 and three per cent on We are committed to maintaining a incorporating sustainable thinking 1 July 2020. diverse supply chain and inclusion of into procurement decisions. As at diverse companies in procurement 30 June 2018, 12 staff have enrolled in Under the Policy an Aboriginal to benefit our business and the the non-compulsory program. business is considered to be any wider community. In 2017-18, we organisation or entity that is owned continued to showcase a selection or run by an Aboriginal interest,
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We are committed to sustainable development and leading industry with a program of Innovation through Demonstration initiatives.
7.3 Market leadership and innovation
Objective We are committed to sustainable development and Material issue leading industry with a program of innovation through demonstration initiatives to accelerate the adoption • Innovation through Demonstration of new concepts in urban, regional and industrial development sectors.
Innovation through Demonstration program We are operating at a time of We define innovation as any change Our innovation approach involves significant technological and that unlocks new value. This may following a cyclical learning process demographic change with the potential be change to process, systems, as outlined below. Our Executive to cause disruption to the way we products or services. The focus of team provide strategic oversight over work and how we deliver land and our innovation program is on our our pipeline of innovation projects infrastructure appropriate for current land development projects - we seek though quarterly Innovation Project and future generations. We believe it to demonstrate innovation in the Control Group meetings where they is important to anticipate change as land development industry in order review and approve new ideas and much as possible and we believe it is to provide leadership in overcoming monitor the pipeline. As at 30 June important to continually seek new and development challenges, achieve 2018, the pipeline had eight ideas improved ways of working. development and Government policy in the idea phase, nine ideas in the goals in new ways and to introduce planning phase and 12 ideas in the efficiencies and improved outcomes. delivery phase.
LandCorp Innovation and learning process
Generating ideas and Identifying challenges Prioritising proposals developing proposals
Diffusing and communicating Evaluating projects Implementing projects
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Innovation through Demonstration - projects in the delivery phase
This section outlines key projects that are in the delivery phase of the innovation project pipeline.
Solar and Community Battery Research is also being undertaken monitoring and assessing how Storage Trial at Alkimos Beach to help identifying strategies to energy and water efficient design, The trial launched in April 2016 improve participation. technology performance and and is thought to be the first of occupant behaviour impact on the The trial is a collaboration between its kind in Australia. The Australian carbon footprint of the precinct. Synergy, the WA government owned Renewable Energy Agency (ARENA) This Living Laboratory project is electricity generator and retailer, and has provided part-funding of $3.3 ongoing following the development Alkimos Beach development partners million towards the trial. The trial will process at WGV from construction, LandCorp, and Lend Lease provide insights into the benefits of to completion, through to occupancy. Research findings will be openly integrating renewable generation Shared solar and battery- shared with the public to improve and energy storage and dispatch storage micro-grid trial at WGV, education and sustainable design in into a traditional electricity network, White Gum Valley with a view to setting new standards the future. WGV at White Gum Valley is home in future infrastructure design, to Australia’s first shared solar One Planet Living Accreditation management of peak demand, and battery storage micro grid at WGV help consumers save money and trial as part of the site’s Gen Y drive long-term behavioural shift in Demonstration Housing Project and WGV is Western Australia’s first energy usage. three other apartment sites. The trial residential project to achieve national recognition for its adoption of the The four year, $6.7 million trial is a partnership with Curtin University, One Planet Living Framework. It is includes installation of a 1.1MWh City of Fremantle, Cooperative also the second project nationally energy storage device at Alkimos Research Centre for Low Carbon and the eleventh worldwide to Beach and will offer participating Living, Solar Balance, Power Ledger achieve International Endorsement residents virtual energy storage, and Western Power and is part as a One Planet Community. The rebates for solar panels, solar hot funded by the Australian Renewable WGV project has been recognised water system and other energy Energy Agency (ARENA committed as a case study demonstrating efficient appliances; an in-home $900,000 with the total project the Paris Agreement 1.5 degree energy display unit monitoring valued at $2.6 million). agenda and for achieving multiple generation and usage; variable The innovative trial allows strata Sustainable Development Goals. price plan with reduced rates properties on site to store power in The Curtin University Sustainability for network electricity; and, an batteries, reducing demand from Policy Institute (CUSP) paper educational program to help residents the grid. Smart metering and the was published in Urban Planning maximise their energy and money development of a governance model (ISSN:2183-7635) 2018, Volume 3, saving potential. enables people in strata properties Issue 2, Pages 64-81. The multiple Out of a trial target of 100 there to equitably share the energy and sustainable development initiatives are currently more than 50 savings produced by their shared such as water sensitive design, energy households that are signed up to (owned by the strata company) efficient, social housing, heritage the Peak Demand Saver plan, a solar panels. Demonstration of this retention, landscape and community new product that was created by technology and governance model involvement were assessed under Synergy specifically for the trial. has the potential to unlock renewable the United Nations Sustainable Participating households have been energy options for thousands of Development Goals Framework. saving on average $15/ month Australians living in strata properties. Of the 17, 12 were achieved in a between the launch and December major way and five in a minor way Living Laboratory at WGV, 2016. It is Synergy’s and the project suggesting that a significant urban White Gum Valley partners aim to secure more than development demonstration has A four year research project we have 100 households as the Synergy been achieved at WGV. Recently the undertaken with the Cooperative data shows that a high number of Federal Government has requested Research Centre for Low Carbon households would benefit from a case study on WGV as part of its Living and Curtin University, City the tariff. Community participation 2018 national review against the of Fremantle, Josh Byrne and has been lower than expected but Sustainable Development Goals. Associates and individual developers has increased in recent months has resulted in WGV at White Gum since participants of the trial are Valley becoming a ‘living laboratory’, sharing their positive experiences.
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Cool Earth, Craigie
Cool Earth at Craigie We partnered with Horizon Power to We submitted a letter of support The Cool Earth Project measures the launch the Smart Sun pilot program for the Power Ledger block chain temperature and energy usage of two in November 2017. The Smart Sun trial to the Australian Renewable houses built at The Vive in Craigie, package has been offered to six Energy Agency. In November 2017, which could revolutionise the way we existing residents at Broome North the Australian Government awarded heat and cool our homes in WA. and six new residents purchasing in a Smart Cities grant of $2.57 million stage 10 of Waranyjarri Estate by 30 to an $8 million project in the City One home was fitted with a ground- June 2018, for a heavily discounted of Fremantle, which will use the source heat pump known as a fixed price of $5,000 which includes Power Ledger platform. $5.68 million geoexchange system while the other the supply and installation of solar will be expended through project was fitted with standard reverse cycle panels, a storage battery, and an partners including Curtin University, air conditioning. inverter combined with “smart” Murdoch University, Curtin Institute appliances including air-conditioning of Computation, LandCorp, CSIRO/ Over a nine-month period, the and hot water systems. Together each Data61, CISCO and Power Ledger. geoexchange system has seen package is valued between $20,000 remarkable energy saving results, The Museum site in Knutsford, is and $35,000 depending on the home. with the system achieving up to building on the learning of WGV, 75 per cent greater efficiency when Residents will be able to track and and through the strong research cooling the home in summer, and manage their power consumption relationships mentioned are exploring 35 per cent improved efficiency when through an energy management innovative, integrated and resilient heating the home in winter. system mobile app, which can lead to energy and water systems. The project significant reductions in living costs. team are exploring the feasibility of These results equate to a saving of up different initiatives and technologies. to $900 per year in electricity costs. The Smart Sun pilot will allow Horizon Power and LandCorp to investigate In addition to these existing The data comparison between and test an integrated energy solution research partnerships, in March the two homes has provided real and work towards solving key grid 2018, researchers from the CRC for time results on the performance and land development challenges for Water Sensitive Cities (CRC WSC) of both systems, highlighting the projects of the future. had a site visit and workshop on the geoexchange system’s potential Knutsford precinct with the objective to provide a more affordable and Museum site Knutsford ‘Beyond of exploring urban infill development environmentally friendly heating and WGV’ - CRC Low Carbon Living and typologies and infrastructure that cooling option for WA households. CRC Water Sensitive Cities can achieve water sensitive city The Cool Earth Project is a collaboration We are participating in a ‘Beyond outcomes. The Museum site and the between LandCorp, the ABN Group, WGV’ Cooperative Research broader Knutsford precinct are being GeoExchange Australia, The University Centre for Low Carbon Living considered as a national case study of Western Australia and Carbonomics. research project. The work builds for research on infill development by on the research into zero energy the CRC WSC. Solar battery trial at Broome North development and micro-grid battery Broome North is home to a ground storage and photovoltaics at WGV breaking solar pilot program that will at White Gum Valley. The project give participating residents greater agreement was signed by LandCorp access to renewable energy, more in January 2018. An outcome of the control over their energy use and project will be a manual for the future significant reductions in power bills. developers of the Knutsford Precinct.
PERFORMANCE 76 SECTION 07 The Baugruppen development model supports the delivery of
affordable housing. Step-Up medium density apartments, artist impression for Gen Y apartments at WGV illustrative purposes only
Housing for Gen Y at WGV, Step Up Design Competition White Gum Valley The final stage of the Step-Up The Gen Y project completed this Competition concluded in June 2017 year with the sale of one apartment with the assessments of the Stage 3 in June 2017 and the other two in submissions. The winning submission, November 2017. The Gen Y project is by David Barr Architects, was involved in the ‘Living Laboratories’ highly regarded by the assessment research being undertaken by Curtin panel as it provided a high degree University and is being monitored of affordability and diversity as for energy and water efficiency well as high design quality overall. along with other developments in The concept provides for a range Baugruppen at WGV, artist impression for WGV. Residents are able to access of dwelling sizes and a number of illustrative purposes only day-to-day information regarding features are included to promote the performance of their building social inclusion and affordable living. Baugruppen at WGV, including energy and water use White Gum Valley The proposed design provides a through monitors in the homes. A partnership with the University mix of apartments including studios, of Western Australia Faculty of The ‘Living Laboratories’ research and 1, 2 and 3 bedroom apartments Architecture, Landscape and project includes the monitoring of that range from 37 to 83 square Visual Arts is underway to deliver a different dwelling types to assess meters. The concept includes a medium density apartment delivered design performance, as well as the communal laundry, rooftop terrace, via the ‘Baugruppen’ (building impact of technology choice and BBQ area, internal space and a guest groups) process. The Baugruppen occupant behaviour on energy use and bedroom which can be booked development model supports the carbon emissions. The project will also out by residents. A lift, bike parking delivery of affordable housing as explore the inter-relationships between and storage for residents are also the building group members, the developers, local government, builders provided. The construction system future owner-occupiers, join together and purchasers in regards to low proposed includes a prefabricated to become their own developer, carbon aspirations and outcomes, wall system and modular avoiding typical developer costs. A and how these can better align. concreate flooring. WGV lot has been set aside for this innovative project. Concept designs The research findings from the WGV Considering the current slow market have been created and the project Living Laboratory will be shared via conditions, a range of delivery options team is now assembling the building videos, publications and events to are now being tested to ensure group members. help foster a national conversation viability of the project in the longer about the future of low carbon term. Opportunities for funding and residential developments in Australia. grants will also be considered as part of the development of a business case later in 2018.
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Demonstration Medium Density Precinct at Shoreline, North Coogee 07 This year we have been heavily and housing design were undertaken involved in tackling the issues of simultaneously so that each could diversity and affordability with inform the other. This intensive the aim of providing a wide range design led process resulted in the of lots to suit different housing development of a precinct design typologies in our infill developments. where pedestrian safety and comfort Working closely and collaboratively takes precedence over vehicles. with stakeholders, local and State Subdivision The plan was then rigorously Government, developers and builders, Concept Design assessed to ensure that the we have undertaken a series of drainage, parking, services and design workshops to investigate the access requirements could be potential for medium density housing accommodated without losing the at Shoreline. original vision for high quality housing The process involved the and public space amenity. Further development of a number of concept testing and detailed design is required options, testing a range of urban to ensure that the proposed housing design themes and principles before typologies meet desired price-points refining the subdivision layout to a and market demand, as well as all preferred option. Subdivision planning statutory requirements. 3D Massing Model
Disrupt ‘17’ Innovation Week In November 2017, we ran our first Below is a brief summary of the outputs of the ‘Disrupt ‘17’ innovation week: innovation week for LandCorp staff • seven external presenters over four • during the week, we ran a game called ‘Disrupt ‘17’. The key objectives sessions with 35-40 attendees on designed to challenge our habits of Innovation Week were to: average at each session. Session and ‘hack’ our culture by rewarding • disrupt business as usual thinking, topics ranged from smart cities and micro behaviours and actions that behaviours and approaches; and precincts, the future of transport, are aligned with our values and • to raise staff awareness of innovation in the start-up sector, innovative behaviour. The game innovation, this included awareness and corporate approach to was an acknowledgement of the of the importance of innovation innovation practices and culture. ease in which we rely on habit and and the role we all have in seeking • six LandCorp presenters shared do things in the usual way – while improvement and awareness of their experiences and lessons habit and routine can be useful the innovation that is occurring at with innovation at LandCorp. The to get things done we may miss LandCorp and elsewhere. projects covered included WGV the opportunity to focus on doing at White Gum Valley, Rockingham the right things or identifying Industry Zone (RIZ), Gen Y at WGV, new opportunities. 68 per cent of Cool Earth at Craigie, Smart Sun at staff participated in the game. On Broome and the IT upgrade roll out average staff completed 3.7 actions, at LandCorp. each aimed at disrupting behaviour. These ranged from discussing a • four virtual reality painting sessions new idea with a peer, watching a using cutting edge technology. TED talk on creativity, to drafting • a new ideas space was launched an innovation proposal that could – an underutilized office was be pitched to our Executive team. converted to an ideas space that was designed to support brainstorming and group work. We plan to hold another • a new innovation page was innovation week in 2019. launched on our LandCorp intranet which included innovation thinking tools and resources.
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Industry assessment and accreditation We use industry accreditation tools across some of our projects to help us achieve improved outcomes beyond a 07 business as usual approach. Table 19 outlines our use of industry assessment and accreditation tools over the past seven years.
Table 19: LandCorp’s use of industry assessment and accreditation tools between 2012-17
2012 2013 2014 2015 2016 2017 2018
GBCA 4 Star Green Star Interiors Rating achieved for LandCorp’s office refurbishment.
Through the Lendlease and LandCorp partnership, Alkimos Beach was first certified for EnviroDevelopment across six elements of ecosystems, waste, water, materials, energy and community in February 2013 - the first WA project to have been certified for all six ‘leaves’.
Through the Lendlease and LandCorp partnership, Alkimos Beach was awarded six star Green Star Communities rating - the first project in Australia to be awarded six stars - equivalent to World Leadership.
Through the Satterley Property Group and LandCorp partnership, Evermore Heights, Baldivis was first certified for the energy, water and community elements of EnviroDevelopment in January 2012.
Through the Cedar Woods and LandCorp partnership, Carine Rise, Carine was first granted EnviroDevelopment certification in November 2013 for four elements: ecosystems, energy, water and community.
WGV at White Gum Valley achieved national recognition in May 2015, and international endorsement as a One Planet Community in November 2015 for its application of the One Planet Living framework - a first in WA, second in Australia and 11th in the world.
Rockingham Industry Zone was first certified with EnviroDevelopment in September 2015 for the four elements of ecosystems, community, water and energy and recertified in 2016.
Parkside Walk, Jolimont was certified with Multi-Unit Residential EnviroDevelopment for five elements of water, energy, waste, ecosystems and We are currently investigating the use of an industry accreditation community - the first multi- tool for the following projects: Ocean Reef Marina, Peel Business Park, unit residential development to Kensington Mixed-Use Innovation Precinct, Knutsford, and Subiaco East. receive this certification. For Montario Quarter, Shenton Park we have lodged a submission for Allara, Eglinton in partnership Green Star Communities rating targeting 5 Stars. with the Satterley Property Group was certified with EnviroDevelopment for six elements - the second residential development in WA to achieve this, with Alkimos Beach being the first.
Shoreline, North Coogee was accredited for five EnviroDevelopment elements: water, energy, waste, ecosystems and community.
Shoreline, North Coogee PERFORMANCE 79 Artist impression for illustrative purposes only SECTION 07
Baynton West Pump Track
Recognition
During 2017-18 we received the Australian Water Association The following projects won their following recognition. WA Water Awards in October 2017 categories at the 2017 Planning • WGV at White Gum Valley won Institute of Australia (WA) Awards 2017 Australian Institute of - Water Sensitive Urban Design of Excellence in November 2017: Landscape Architects’ (AILA) WA award Landscape Architecture Awards in • The Goods Shed, Claremont on the July 2017: Australian Property Institute National Park – Community Investment; • Baynton West won - Parks and Excellence in Property Awards • Claremont on the Park – Best Open Space Award of Excellence Environmental Development Award Planning Ideas-Small Project. • Koombana North won - WA Medal • WGV at White Gum Valley was a • Montario Quarter, Shenton Park and the Civic Landscape Award finalist – Improving Planning Processes for Excellence and Practices. State Arts and Culture Partnership At the 2017 UDIA WA Awards for Honours Awards 2018 Property Council of Excellence in September 2017 • LandCorp - Community Investment Australian National Innovation LandCorp won the following: Partnerships for our collaboration and Excellence awards, announced • WGV at White Gum Valley - with FORM on the Goods Shed in May 2018 Urban Water Excellence; community hub at Claremont on • Alkimos Beach won the - Best • WGV at White Gum Valley - the Park Master Planned Community award Sustainable Urban Development; • The Goods Shed, Claremont on Australian Institute of Architects’ the Park was a finalist in the Best • The Playground at Coolbellup - National Architecture Awards in Heritage Development category. Residential Development Under November 2017 250 lots; and • Gen Y Demonstration Housing • Alkimos Beach - Residential project at WGV received a national Development Over 250 Lots commendation.
PERFORMANCE 80 SECTION 07
The Goods Shed, Claremont on the Park
At the national Urban Development Institute of Australia Awards for Excellence in March 2018, LandCorp and Lendlease won the award for Best Residential Development in Australia at Alkimos Beach.
Claremont Railway Station (The Goods Shed) received a commendation at the 2018 WA State Heritage Awards, in March 2018, in the Adaptive Reuse of a State Registered Place category.
PERFORMANCE 81 SECTION 07
Shoreline, North Coogee
7.4 Organisational and commercial sustainability
Objective Material issues
We will build a highly skilled, engaged and values driven workforce • Financial resilience as well as robust systems to support our efforts to deliver balanced • Anti-corruption social, environmental and economic outcomes. We will focus on being market responsive, self-funded and investing capital for the future, • OSH while delivering significant value projects and targeted financial • Staff diversity and wellbeing returns to the State Government.
Financial resilience Topic boundary Our financial performance is and address Government priorities functions in a cost efficient manner, critical to our success, viability and across Western Australia. endeavouring to achieve or surpass future sustainability as it enables financial targets and ensure that A key priority and requirement us to continue to deliver essential no project undertaken fails to of our legislation is to act in land supply for the residential, meet the expected internal rate of accordance with commercial commercial and industrial sectors, return defined annually through our principles by performing our meet infrastructure requirements Strategic Development Plan.
We will focus on being market responsive, self-funded and investing capital for the future, while delivering significant value projects and targeted financial returns to the State Government.
PERFORMANCE 82 SECTION Performance 07 Direct economic value generated contributed $54.5 million in land out $16.2 million for land acquisitions and distributed sales whilst regional sales equated to and $92.5 million in development In 2017-18 we achieved sales revenue $3.8 million highlighting the diversity expenditure to deliver future land of $194.6 million (2016-17 $164.6 of product mix we provide across supply. million) and despite the challenging the State. In 2017-18 we returned to the economic and property market Driven by solid revenue growth and State finances a total of $108.0 conditions, recorded 18 per cent containment of expenditure we million in relation to payments in growth over the prior year. The delivered a profit after tax position to the Government for dividends majority of sales revenue was from of $6.8 million. Prudent management ($53.8 million) and land tax, stamp the metropolitan program with sales of cash flow resulted in us remaining duty, income tax equivalents and of $136.3 million (70 per cent). The within approved net debt limits with local government rate equivalents remaining two portfolios made up borrowings being $219 million at 30 ($54.2 million). the balance with industrial lands June 2018. During 2017-18 we paid
2015-16 ($ million) 2016-17 ($ million) 2017-18 ($ million)
Direct economic value 481.1 325.0 302.2 generated (Revenues)
Other costs of operation 331.6 212.7 209.4
Land tax, stamp duty, income tax equivalents and local government 81.6 61.5 54.2 rate equivalents
Dividend to Government 31.7 43.2 53.8
Saleries and on-costs 27.8 25.8 24
Interest charges on loans 5.4 6.5 5.5
Native title payments 1.7 0.4 3.6
Sponsorships 0.2 0.1 0.2
Economic value retained/(utilised) 1.1 -25.2 -48.4
Note: Direct economic value generated includes land sales revenue, Government operating subsidies paid to LandCorp to undertake various land development projects, rental income received and various other income.
Operating Subsidy Arrangements We continue to undertake select land In 2017-18 we received $56.2 million remaining $47.2 million, $29 million development projects on behalf of in grant funding which was directed related to holding costs for strategic the Government that either address across the State in the delivery of land and infrastructure that we market failure or require “top up” a range of projects from Karratha hold on behalf of the State with the funding to ensure that a minimum through to Albany. Of this funding, majority of funding returned to the internal rate of return is met as $9.0 million came from Royalties for State by way of tax equivalents and articulated in Section 25A(3) of our Regions including cost recoupments dividends. The balance of funding enabling legislation. Such projects and “fee for service” projects such as relates to projects where we are receive appropriations in the form of Karratha City Centre Infrastructure addressing market failure within operating subsidies. Works, Port Hedland Waterfront regional towns or we require a “top Revitalisation, Bunbury Waterfront up” to achieve the minimum internal Transformation, and Newman rate of return required under the Act Town Centre Revitalisation. Of the for a given project.
PERFORMANCE 83 Onslow SECTION Anti-corruption 07 Topic boundary Fraud and corruption can cause significant harm, including undermining public trust in the integrity of an organisation and reputational damage. This underscores the importance of implementing effective prevention strategies at all levels of the organisation and maintaining a culture of integrity. Newman Senior High School
Performance Managing risks related to corruption and data, due diligence in human act accountably and ethically in all LandCorp has zero tolerance for fraud resourcing and falsifying financial decisions and actions, providing staff and corruption and adopts a risk-based, reporting. While these risks have been with an understanding of the Western precautionary and proactive approach identified there are very strong controls Australian Public Sector’s Accountability based on prevention. LandCorp in place to mitigate occurrence. Framework. At 30 June 2018, 100 per manages risk related to corruption cent of staff had completed the ‘Fraud Our Board is committed to the highest across all of its operations. This involves and Corruption Awareness’ module standards of corporate governance and a system of procedures and policies that and 100 per cent of staff completed use a range of benchmarks to guide its include: Fraud and Corruption Control the ‘Accountable and Ethical Decision practices, including the Public Sector Framework, Fraud and Corruption Making’ within the last two years. Management Act 1994, the Principles Risk Register, Code of Ethics and Code of Good Corporate Governance as Internal audit for continuous of Conduct, fraud audits, director’s determined by the Australian Stock improvement and officers’ liability insurance risk Exchange (to the extent they can assessments, corporate risk register In the 2016-17 Fraud and Corruption be applied to the organisation), and (strategic and operational), project risk Risk management policies and the Australian Institute of Company management, Conflict of Interest Policy, practices were reviewed as part of Directors’ Code of Conduct. In and communication and training. the internal audit program. Several addition, LandCorp’s Board received steps were taken in response to the The Fraud and Corruption Control presentations from the Corruption audit recommendations over 2017- Framework has been developed in and Crime Commission around fraud 18, including updating the Fraud line with the Standards Australia and corruption behaviour. and Corruption Control Framework, AS 8001-2008 Fraud and Corruption development of an additional training Communication and training Control best practice principles to module on fraud and corruption develop a robust approach to fraud We are committed to the highest awareness for staff, Police Clearance and corruption control. possible standards of openness, has been embedded within human probity and accountability in all our resources recruitment process, and Our Enterprise Risk Management undertakings. Through our induction promotion of the Public Interest Framework embeds fraud and process all staff members are made Disclosure process and officers to all corruption risk management to aware of policies and procedures staff via presentations and posters. proactively mitigate risks posed by applying to fraud and corruption. A follow-up audit was conducted fraud and corruption before they in April and May 2018. It included a occur. In addition to the Framework, An online eLearning centre delivers follow-up survey with staff, collecting a detailed Fraud and Corruption training courses to staff. Two modules, information about staff experiences Risk Register has been developed, the ‘Fraud and Corruption Awareness’ in the past 12 months in regards to identifying risks, potential causes, module and ‘Accountable and fraud and corruption. The findings consequences and key controls in Ethical Decision Making’ module, are were presented to the Audit and Risk place. The Register is updated and mandatory for all staff to complete Management Committee in June reviewed every six months, and every two years. The ‘Fraud and 2018 and recommendations to be reported through to the Executive Corruption Awareness’ module has implemented in 2018-19. and the Board’s Audit and Risk been designed to raise awareness of and educate staff of their roles Management Committee. The key risks Incidents and responsibilities around fraud identified in the Fraud and Corruption During the financial year no and corruption. The ‘Accountable Risk Register are around procurement corruption incidents were identified and Ethical Decision Making’ module probity, misuse of LandCorp systems and recorded. aims to highlight what it means to
PERFORMANCE 84 SECTION Occupational Safety and Health 07 Topic boundary Fundamental business success is work places is underpinned by safety promoting a culture where health due to a healthy, safety conscious obligations within the Occupational and safety become essential aspects workforce who ensure work places Safety and Health Act 1984 (WA). of day-to-day business practice. We protect people, which in turn yield engage and communicate with clients Our occupational health and productive work environments with and external stakeholders to further safety commitment focuses on high quality standards and outcomes. drive our commitment to a culture of the wellbeing of internal staff by The safety and health of staff and safety, compliance and performance. providing health and safety programs
Performance
Occupational safety and health an organisation can achieve. The root cause investigation training (OSH) management systems accreditation is administered by the was undertaken by LandCorp’s LandCorp operates within the Department of Commerce’s WorkSafe Operational Business Managers. guidance of AS/NZS 4801:2001 Division, and is specifically for Throughout 2017-18, all managers Occupational Health and Safety organisations under the jurisdiction of had been trained in OSH and injury Management Systems. Our internal Western Australian safety and health management responsibilities, with OSH management system is legislation. Gold accreditation has all project-related staff trained and monitored and audited on a cyclical been held since June 2015. issued with a Construction Induction basis. LandCorp’s Safety Management Card (White Card). OSH training Plan is in accordance with ISO 45001 A compulsory online OSH training OSH committee Standard, which has become the module is completed and assessed Our OSH committee meets quarterly internationally accepted standard for every two years by all staff. In 2017- to discuss health and safety issues small, medium or large companies. 18, 100 per cent of staff met this providing a systematic and proactive Aligning to this standard demonstrates requirement. In addition, all new staff way to address issues and discuss OSH best practice governance to members and contractors received a matters. It consists of representatives stakeholders, shareholders, regulators face to face OSH orientation session. from all divisions, as well as managers and the public. and an Executive General Manager. In response to newly identified risks, Worksafe accreditation 10 per cent of our total workforce procedures and training sessions In July 2017, we qualified for a is represented on the committee. focusing on the management of WorkSafe Plan Platinum Certificate Committee members commit to a OSH risks on Vacant Land were of Achievement, the highest level 12-month minimum tenure before completed in 2017-18. In addition, nominating a new member.
OSH performance Table 20 outlines our performance against key OSH measures for employees.
Table 20: Occupational safety and health incidents
Target 2012-13 2013-14 2015-16 2016-17 2017-18
Number of fatalities 0 0 0 0 0 0
Lost time injury and/or disease incidence rate 0 0 0 0 0 0
Lost time injury and/or disease severity rate 0 0 0 0 0 0
Percentage of injured workers returned to work:
(i) within 13 weeks 0% 0% 0% 0% 0% 0%
(ii) within 26 weeks 0% 0% 0% 0% 0% 0%
Note: minor first-aid injuries have not been included in the injury rates.
PERFORMANCE 85 SECTION 07
As part of our corporate health and wellbeing program, an external support and counselling service is provided on a commercial basis to Onslow assist employees in times of distress, loss or personal problems.
Statement of compliance to Our Compliance and Risk Manager During 2017-18 our staff wellbeing injury management attended the two day Applied initiatives resulted in: A commitment is in place to Suicide Intervention Skills Training • 64 staff accessing skin cancer provide injury management (ASIST) preceding the launch. checks, and 97 staff electing to support to all workers who sustain ASIST training is evidence based take the flu vaccination; training equipping individuals to a work related injury or illness, with • seven adjustable standing work become an ASIST worker. These a focus on safe and early returns to station ‘hot desks’ in place across workers can be compared to the meaningful work and in accordance all floors; with the Worker’s Compensation first aid officer on site or in an • 221 registrations across all and Injury Management Act 1981. office. ASIST workers will talk to initiatives during ‘Health and a person contemplating suicide Safety Month’ October 2017; Mates in Construction program with the object of making this On the 20th March 2018, in person “safe”. • 125 staff accessing the fitness conjunction with RJ Vincent, we subsidy which seeks to launched the inaugural “Mates The findings from the Shenton Park encourage regular physical in Construction” (MIC) program pilot program will be assessed by activity, and the OSH Committee to determine at our Shenton Park site. Staff • 87 staff attending quarterly the best way to work with MIC on members from LandCorp, RJ pre-work ‘walk, run, ride’ future projects. Vincent and Pritchard Francis met wellness breakfasts. at the Shenton Park Para-quad Employee wellbeing Centre to attend general awareness Employee assistance As part of our continued training (GAT), which aims to raise As part of our corporate health commitment to mental health awareness of mental health issues and wellbeing program, an external awareness in the workplace, 22 and the high suicide rate in the support and counselling service is staff participated in Mental Health construction industry. provided on a commercial basis First Aid Training in 2017. We to assist employees in times of recently became a Mental Health This is a first time MIC has distress, loss or personal problems. worked with a land development First Aid Skilled Workplace: Silver organisation. Shenton Park will be level (10 per cent of workplace the pilot site with ‘basic’ raw data trained). To maintain this being collected for post project accreditation, we must maintain our analysis. Initial feedback from the numbers every year (Mental Health RJ Vincent staff in attendance has First Aid Training expires after been overwhelmingly positive. two years).
PERFORMANCE 86 SECTION Staff diversity and wellbeing 07 Topic boundary Deploying a diverse workforce complementary range of skills to our environment that ensures a diverse, with the right skills, expertise and corporate and operational projects engaged and healthy workforce leadership to deliver our corporate which provide us with our point of positively impacting staff wellbeing strategy is critical to our success. Our difference. We are committed to and the delivery of our strategy multi-disciplinary team of staff bring a building a culture, workplace and and projects.
Performance Table 21: Employees by contract and gender Contract type Total number of employees (as of 30 June 2018) Our workforce At 30 June 2018, we had 165 Female Male Total employees by head count and 156.6 Full Time Equivalent employees Full-time (permanent term) 55 78 133 (FTE), a reduction from 180 Part-time (permanent term) 23 1 24 employees (as at 30 June 2017). The following tables illustrate the key Full-time (limited term) 2 2 4 characteristics of our workforce. Part-time (limited term) 3 1 4
Total 83 82 165
Note: Total number of employees, excluding Board members, based on headcount.
Table 22: Governing body and employees by job classification and gender
Job classification Total number of employees (as of 30 June 2018)
Female Male Total
Board 4 2 6
Senior management 9 13 22
Middle management 11 33 44
Professional 27 27 54
Other 36 9 45
Total 87 84 171
Note: Total number of employees, including Board members, based on headcount.
Table 23: Governing body and employees by job classification and age
Job classification Total number of employees (as of 30 June 2018)
<30 30-50 >50 Total
Board 0 4 2 6
Senior management 0 11 11 22
Middle management 0 26 18 44
Professional 5 41 8 54
Other 13 21 11 45
Total 18 103 50 171
Note: Total number of employees, including Board members, based on headcount.
PERFORMANCE 87 SECTION
Skills and expertise sustainability, business development, The skills and expertise of LandCorp’s and information technology 07 workforce is diverse. In our core professionals. area of operations we have project Employee turnover and retention managers and development During 2017-18, our staff retention managers with backgrounds in rate was 89.5 per cent (87.9 per cent valuation, commerce, planning and in 2016-17) (table 24). property. In corporate areas we have finance, human resources, marketing,
Table 24: Staff retention rate target and performance
Target (%) 2013-14 (%) 2014-15 (%) 2015-16 (%) 2016-17 (%) 2017-18 (%)
90.0 92.3 86.6 92.6 87.9 89.5
Our voluntary staff turnover cases where employees were rate was 8 per cent (11.5 per supported in their exit from the cent in 2016-17 and 7.4 per cent organisation. This is still lower than in 2015-16). The total turnover the average turnover rate reported rate was 10 per cent, including by the Australian Human Resources involuntary turnover (dismissal Institute of Australia of 16 per cent, and redundancies) of 2 per cent with the property industry typically (table x). Career outplacement experiencing higher than average services were provided in some rates of turnover.
Table 25: Total number and rate of employee turnover by age and gender
Number (as at 30 June 2018) Rate (%) (as at 30 June 2018)
Age Male Female Male Female
Under 30 0 0 0 0
30-50 7 8 12.7 16.7
Over 50 1 1 4.2 3.8
Total 8 9 9.8 10.8
Note: calculation for rate of employee turnover is number of employees terminated/ average headcount for 2017-2018; voluntary and involuntary terminations were included in the calculation. Absenteeism, the average unplanned/ New employment hire personal leave taken, was 9.3 days In 2017-18, a total of six new in 2017-18; this is an increase on days employees were hired (13 new taken in 2016-17 (7.3 days) and 2015-16 employees in 2016-17), the (7.2 days) and made up 20.2 per cent breakup by age and gender is of all leave taken. shown in table 26.
Table 26: New employment hires in 2017-18 by age and gender
Female Male Total
Under 30 1 2 3
30-50 2 1 3
Over 50 0 0 0
Total 3 3 6
PERFORMANCE 88 SECTION
Graduate program Diversity targets have been defined LandCorp continues to build A graduate program is in place to and incorporated into our EEO relationships with diversity-focused 07 support and develop project and Management Plan and Reconciliation recruitment to actively seek corporate skills and experience. In Action Plan with specific focus diversity candidates and partner 2017-18, we continued the graduate on employment of Indigenous with disability support groups to employment program for 2 Australians, people with disabilities determine the needs and approaches graduates, which included rotation and females in senior roles. To to best support and retain diversity across the business. achieve this, policies and strategies candidates in the workplace. There are in place to create awareness has been significant improvement Diversity and eliminate discrimination and in two of the targets (which have Diversity and Equal Employment harassment, particularly on grounds been exceeded) with the other target Opportunity (EEO) for all employees covered by EEO legislation. Our forecast to improve in early 2018-2019 and prospective employees is diversity targets and performance are (table 27). promoted in the workplace. monitored and reported to the Board.
Table 27: Diversity targets and performance
Target (%) Actual at June Actual at June Actual at June Actual at June 2015 (%) 2016 (%) 2017 (%) 2018 (%)
Women in management* 32.0 32.1 32.5 40.0 40.9
Aboriginal Australians 3.0 1.6 1.6 2.8 1.8
People with disabilities 3.0 2.1 2.1 3.9 4.2
*Women in management is the percentage of females in the senior leadership group.
Gender equality We are committed to ensuring that We are committed to ensuring all human resource processes are free from discrimination or gender that all human resource bias. Women and men are paid similar amounts for similar level work processes are free from on average (table 28). We focus on recruiting and supporting discrimination or gender basis. females in project development and leadership positions.
Table 28: Female salaries as a percentage of male salaries by job classification
Job value level* Actual at 30 Actual at 30 Actual at 30 Actual at 30 Actual at 30 2014 (%) 2015 (%) 2016 (%) 2017 (%) 2018 (%)
Senior Exectutive 94 92 94 94 88
Business Manager 99 99 98 97 97
Senior Development Manager equivalent 91 95 94 97 97
Development Manager equivalent 102 101 99 95 99
Administration 104 99 101 98 99
*Using Full Time equivalent salary.
PERFORMANCE 89 SECTION
Parental leave return to work from parental leave. Of All staff who have at least 12 months these, five returned to work. 07 service have access to parental The return to work rate, that is the leave. LandCorp provides 14 weeks total number of employees that paid parental leave for the primary did return to work after parental caregiver and unpaid leave of up to leave, divided by the total number 52 weeks in total. This is in excess of of employees due to return to work the minimum legislated. LandCorp after taking parental leave for 2017-18 also tries to accommodate requests was 100 per cent (table 29). Due to for flexible work arrangements the low number involved, the return on return from parental leave to to work rate is quite variable and encourage retention of valuable depends heavily on the individual skills and knowledge. In 2017-18, circumstance of the people involved. two females and one male took This year LandCorp introduced a parental leave. transition back to work program for In 2017-18, two females and one male high performers to help facilitate were due to return to work from effective returns. The program parental leave. Of these, all returned was offered to the two females to work after their parental leave on extended leave and feedback ended. In the previous financial year was positive. eight female employees were due to
Table 29: Return to work rate following parental leave
2013-14 (%) 2014-15 (%) 2015-16 (%) 2016-17 (%) 2017-18 (%)
57.1 50.0 75.0 62.5 100
The retention rate, that is the total Over the last 5 reporting periods number of employees retained 12 there were 23 people due to return months after returning to work from parental leave (3 of these following a period of parental people had two separate periods of leave, divided by total number of parental leave). Of these 23, 35 per employees returning from parental cent did not return to work; another leave in the prior reporting period, 9 per cent left within 12 months; and for 2017-18 was 100 per cent (all 56 percent are still employed. females) (table 30). Generally, if people are able to return to work they are retained but, again, the numbers involved are too small to draw definitive conclusions.
Table 30: 12 month retention rate following parental leave
2013-14 (%) 2014-15 (%) 2015-16 (%) 2016-17 (%) 2017-18 (%)
100 100 100 100 100
PERFORMANCE 90 SECTION 07
Onslow
Flexible work practices Currently, 23 staff work part-time On average our employees received We recognise the value of flexible hours (two male, 21 female) and 23.51 hours of work time in training work arrangements as a benefit two staff work from home for one during 2017-18 (table 31), this is in attracting and retaining quality or two days per week. down from last year and close to employees. Research shows that the previous year (26.9 hours in Learning and development improving workplace flexibility 2016-17, 18.7 hours in 2015-16, and During 2017-18, we had six has positive effects on employee 28.72 hours in 2014-15). employees access the study engagement, job satisfaction, assistance program (16 employees We aim to maintain a learning and productivity, efficiency, staff in 2016-17) which is designed to development budget at two per turnover and attendance. support employees who undertake cent of payroll, despite tightening Employees can apply for various advanced level development fiscal conditions. In 2017-18, 1.14 arrangements including variable including tertiary or post per cent of payroll was invested in work schedules, working from graduate study. learning and development course home or work reduced hours. fees and 2.28 per cent if we include the cost of an employees’ time. Again this is down on the previous year where the figures were 1.5 per cent and 3.2 per cent respectively.
Table 31: Average hours of employee training (by employee category and gender)
Job classification Male (average Female (average Total (average training training hours) training hours) hours)
Senior management 23.0 24.9 24.2
Middle management 17.0 29.7 23.3
Professional 25.54 23.9 24.7
Other 24.4 19.2 21.8
Total 22.6 24.4 23.5
PERFORMANCE 91 SECTION
Building knowledge and skills • Driving Value Through Business • Mental Health First Aid: 12 To build capability across the Acumen: an intensive seven- employees completed this 07 business LandCorp has a Learning week online course conducted training designed to develop and Development Framework. by INSEAD designed to give key skills in recognising the signs The objectives are: to improve tools and perspectives to help and symptoms of mental health the learning culture; integrate the understand how a company’s problems, provide knowledge of corporate offering for employees with strategic agenda can evolve, possible causes and treatments business objectives and performance and how that understanding available, develop skills in how to management; provide consistent can be used to better identify give appropriate initial help and learning and messages; increase opportunities for profitable take appropriate action if a crisis self-driven learning; and provide differentiation, formulating situation arises. a framework that captures and an execution plan, driving • Smart Seeds Program: 2 staff shares knowledge. organisational alignment and participated in the Smart Seeds The framework is built on a ultimately improve financial innovation program run by GHD number of tiers: ‘top’ for elite performance. Four senior staff in 2018. It focuses on generating development opportunities for high participated in online learning, fresh ideas to tackle complex performers; ‘mid’ for development coaching activities and an action infrastructure challenges, of specialised skills - generally learning project. involving interdisciplinary and accredited and recognised; and • The New Manager: all new intergenerational collaboration, ‘base’ for the development of core/ people managers are provided capacity building of young compliance skills. with foundation training and professionals, and delivering industry led innovation. During 2017-18 a number of training orientation to our human resources courses were offered, including: management policies and • Women in Property Mentoring procedures. This year there was Program: LandCorp participated in • Core/compliance skills: there are only one new manager and they the Property Council of Australia’s a number of mandatory training undertook the three day, nationally Women in Property Mentoring modules all staff are required accredited program aimed at Program. The mentoring program to complete online. These are: developing skills in emotional brings together women who are Orientation; Records Management; intelligence, team building, aspiring to a senior leadership Diversity at LandCorp, Equal performance management, culture position and senior leaders, men Opportunity; Accountable and development, motivation and and women who can help build Ethical Decision Making; Closing managing conflict. a culture of diversity within the the Gap (between socio-economic/ property industry. The six month health outcomes experienced by • Estate Master Development: 29 program includes: interactive Aboriginal and Torres Strait Islander people received training over 2 workshops for mentees; facilitated peoples, and non-Aboriginal or sessions. Estate Master is software group discussions with mentors; non-Torres Strait Islander people); for inputting, interpreting and and a matching process for Fraud and Corruption Awareness consulting on development mentees and mentors who are and Occupational Safety, Health feasibilities and appraisals. expected to meet six to eight times and Environment Induction. This Participants were provided with on a one-to-one basis. During 2017- training was completed by 100 per an understanding on the basic 18, two LandCorp staff participated cent of staff required to do so. concepts of development feasibility analysis followed by hands-on as mentees and two LandCorp • Single Operating Environment software training using case managers volunteered as mentors. upgrade and training: a number studies to put the theory learnt of sessions were rolled out to into practice. better prepare staff for the new operating environment and • ORANGES Resilience: 24 people applications, including use of new participated in a program designed tablets, Acrobat, OneNote, Project to support overall wellbeing. and Visio.
PERFORMANCE 92 SECTION 07
Gen Y apartments at WGV
Performance management
All employees (100 per cent) received superannuation contributions from employees is: Western Australian at least two regular performance and employers. We adhere to these Land Authority and Community career development reviews during requirements. and Public Sector Union Enterprise 2017-18 as part of the performance Agreement 2011. 46 staff are management process. Collective bargaining agreements covered by the collective bargaining Union membership is optional agreement which represents 27.7 per Superannuation contributions and employees may elect to join cent by headcount and 13.6 per cent We operate in Western Australia, the Community and Public Sector by payroll. and as such Australian law defines Union, the Union agreement for
[GRI Standards 102-41] PERFORMANCE 93 SECTION 08
Corporate governance 08
CORPORATE GOVERNANCE 94 SECTION 08
Onslow
Commitment Corporate governance is the system This section includes a description standards set out in the Western and process adopted to direct and of LandCorp’s main corporate Australian Land Authority Act 1992 manage our business and affairs and governance practices, which form a and the Statutory Corporations has been at the core of the Board’s framework to ensure we act with high (Liability of Directors) Act 1996 deliberations since the establishment standards of corporate behaviour. are achieved. of LandCorp in 1992. We use a range of benchmarks to The Minister for Lands has portfolio guide our practices, including the responsibility for LandCorp. LandCorp’s approach to corporate Public Sector Management Act 1994, governance is based on a set of values Public Sector Commission Principles The legislation sets the foundation for and behaviours that underpin our of Good Governance for Boards the corporate governance framework culture and business practices. This and Committees and the Principles and structure to be given effect by approach includes a commitment to of Good Corporate Governance as the Board of directors and defines robust governance standards that are determined by the Australian Stock reporting requirements. fundamental to the sustainability of Exchange (ASX) (to the extent they our operations and performance, and can be applied). The Western Australian Auditor foster a culture of compliance which General conducts annual audits values ethical behaviour, personal and A comprehensive system of of LandCorp. corporate integrity, accountability and governance practices, developed over respect for others. many years, ensures, at a minimum,
Performance Board of directors
Board role and responsibilities • maintaining communication with • satisfying itself that appropriate The Board of directors recognises the Minister and Government; internal control mechanisms are in accountability to the Government and • maintaining working relationships place and are being implemented; the Minister for Lands. with management; • determining the scope of authority (and any limits on authority) which is This requires the Board to deliver the • evaluating Board performance; delegated to the Chief Executive or objectives and functions set out in the • evaluating performance of the any other officer; Western Australian Land Authority Chief Executive; • monitoring appropriate Act 1992. • planning for Board and resources are available to senior management succession; The Board is accountable to the management; and • recommending director Government for our performance • maintaining an emphasis on audit remuneration to the Minister; with responsibility for: activities. • setting out corporate directions, • monitoring financial and corporate submitting the annual Statement performance; The Board has worked throughout of Corporate Intent and five-year • considering and approving half- the year to ensure our vision, future Strategic Development Plan, yearly and annual reports; directions and strategies is well understood and achieved. including financial targets, • assessing social, economic and to the Minister; environmental performance; • providing strategic direction and • reviewing, ratifying and monitoring approving significant strategic appropriate systems of risk corporate objectives; management and legal compliance;
CORPORATE GOVERNANCE 95 SECTION
Board composition The Board comprises independent 08 directors appointed by the Minister for Lands in accordance with relevant provisions of the Western Australian Land Authority Act 1992.
At least four of the directors are required to have relevant experience in housing, industry, commerce, finance, land development, town planning or engineering to provide a set of relevant experiences and knowledge. The skills and experiences of directors on the Board during the reporting period are set out in the Directors’ Report.
The Chairperson and Deputy Chairperson are appointed by the Minister for Lands.
In accordance with Schedule 1A, Clause 1 of the Western Australian Karratha Land Authority Act 1992, directors may be appointed for a term of It is expected directors undertake Board committees up to three years. There is also professional development to provision in the Act to enable the The Board has three committees to maintain skills required to discharge Minister to reappoint directors for focus on specific areas: their duties. This may include a further term. The Chief Executive • Audit and Risk Management; approved industry seminars and may not be appointed as a director. • Governance and education courses. Remuneration; and The Board does not believe The Board and the Chief Executive any director has served on the • Statutory Planning (formerly Board for a period which could The Board is responsible for the Planning, Development and materially interfere, or reasonably appointment and employment Communications). be perceived to interfere, with the contract of the Chief Executive Each committee reviews its Terms director’s ability to act in the best subject to obtaining the of Reference and membership interests of LandCorp. Minister’s approval. annually, with any proposed changes In addition, it is considered Day-to-day oversight and submitted to the Board for approval. each director is independent of management of operations are Minutes of all committee meetings are management and any business the responsibility of the Chief provided to the next Board meeting. or other relationship that could Executive who reports to the A director may attend committee materially interfere with exercising Board on issues including: meetings even if he or she is not a objective, unfettered or independent • corporate strategies; member of the committee. judgement by the director or the • human resources; director’s ability to act in the best • annual budgeting; interests of LandCorp. • managing day-to-day operations; The induction process includes • risk management; briefings with the Chief Executive • operations and major project and senior management, provision challenges and milestones; and of information on key corporate • strategic marketing and and Board policies, strategic plans communications. and relevant project site visits.
CORPORATE GOVERNANCE 96 SECTION
Audit and Risk Management • Board and executive succession • redevelopment plan development, Committee and remuneration; and reviews and amendments; 08 This committee provides advice to • Human resources standards • providing statutory advice the Board, which assists the Board oversight. on planning, development to fulfil its responsibilities relating to applications, subdivision financial reporting, risk management The committee comprises a minimum applications and masterplan and compliance with internal systems three Board directors appointed by standards to other approval bodies, and control mechanisms. the Board and a charter sets out its including matters referred to the responsibilities and key activities. State Administrative Tribunal; The committee has direct access to • preparation of planning and external auditors, internal auditors In accordance with the Western development policies; and senior management. The Australian Land Authority Act 1992, committee meets regularly, meeting disclosures relating to director, Chief • administration of officer external auditors at least twice a year Executive and Executive remuneration delegations; and internal auditors more frequently. are included in the Directors’ Report. • preparation and administration of External auditors are appointed in development contribution plans; Statutory Planning Committee accordance with Schedule 3A Clause The Board has established this • consideration of landowner 14 of the Act. committee as the decision making agreements; and The committee comprises a minimum body for the Western Australian • review of development guidelines. of three Board directors (not including Land Authority’s statutory planning Improvement plan and schemes the Board Chairperson) appointed responsibilities in relation to: • Provide strategic advice to the by the Board. The committee has a Redevelopment Acts Board on the use of improvement charter setting out its responsibilities • Make decisions in accordance with, plans and improvement schemes and key activities covering: and provide advice to the Board as an appropriate statutory • Financial reporting; with regard to, the Authority’s planning delivery mechanism for • Internal audit; statutory planning responsibilities redevelopment areas. • External audit; and as defined in the: The committee comprises a minimum • Risk management (including • Hope Valley-Wattleup of three Board directors appointed by internal controls). Redevelopment Act 2000; and the Board and a charter sets out its • Perry Lakes Redevelopment Governance and Remuneration responsibilities and key activities. Act 2005; Committee • Perform duties and execute Prior to 1 January 2018, this The Board has established this powers delegated to the committee, known as the Planning, committee to assist the Board committee and staff; Development and Communications in ensuring that appropriate and Committee, assisted the Board in • Administer the Authority’s effective policies, plans and practices monitoring and providing advice redevelopment Act roles and are in place in relation to: on market leadership, innovation responsibilities, including: • corporate governance; initiatives, strategic engagement • preparation of project concept • Board, committee and Chief and communication policies and plans, master plans and structure Executive performance activities, which all underpin effective plans and variations; management; relationships with key stakeholders.
CORPORATE GOVERNANCE 97
Newman Town Centre, Public Art SECTION
Board meetings Each committee reviews its where a director would disclose an Board meetings are held at such times performance annually against interest in any item on the Board 08 and places as the Board determines. its chartered roles, which is then meeting agenda. Disclosures are reported to the Governance and recorded in the meeting minutes, with The Chairperson sets the agenda for Remuneration Committee. a copy placed into a Declarations of each meeting in consultation with the Interest Register. Chief Executive. Any director may The performance evaluation of the request to have a matter added to Chief Executive is undertaken by the Any director who considers he or she the agenda. Board though the Chairperson. A has a conflict of interest is required to performance agreement and targets give other directors immediate notice. Comprehensive papers on matters are set and reviews are undertaken a These interests are recorded in the for consideration by the Board are minimum of twice annually. Declarations of Interest Register. provided to the directors. Executive performance evaluation is Where a director makes a declaration Members of the Office of the Chief undertaken by the Chief Executive of a conflict, the Board may allow Executive and other members of the in line with agreed performance the director to partially participate in senior management group attend parts agreements and targets which are discussion of the agenda item, make a of the Board meetings by invitation. reviewed twice annually. statement to the Board prior to leaving the meeting room or request the Board Access to information and LandCorp has a strong culture director leave the meeting immediately. professional advice of achievement via performance Directors have access to information agreements for all staff which clarify The Conflict of Interest Policy also via Executive. roles and responsibilities, goals applies to staff and contractors and targets (aligned to the annual who, when conflicted, are required The directors, Board and committees, business plan) as well as specific to make a formal disclosure to the in carrying out their duties, may seek development plans. Chief Executive who determines the external legal and expert advice at management action required. These LandCorp’s expense. They may seek Conflicts of Interest interests are also recorded in the this advice after consultation with A Conflict of Interest Policy is in Declarations of Interest Register. the Chairperson. place detailing management of such matters. This policy accords Performance evaluation with standards set by the Western The Board Chairperson is responsible Australian Public Sector Commissioner. for reviewing Board performance, monitoring the contribution of New directors appointed to the Board individual directors and counselling are required to declare financial them on areas that may improve and pecuniary interests at their first Board performance. meeting. A standing protocol dictates
CORPORATE GOVERNANCE 98
Hedland Community Centre SECTION 08
We adopt a risk-based, precautionary and proactive approach to our operations, with zero tolerance to fraud and corruption.
Ethical standards The Board is required to establish system and supported by training A series of policies and protocols are minimum standards to apply to and awareness-raising sessions. maintained to strengthen and affirm employees, management and the the approach to corporate governance. LandCorp adopts a risk-based, Board of Directors with regard to These address the key areas of: precautionary and proactive merit, equity and probity, reflected • values and ethics; approach to our operations, with in a Code of Conduct developed in zero tolerance to fraud and • trade practices; consultation with the Commissioner corruption. LandCorp manages • procurement and tendering; of Public Sector Standards. risk related to corruption across all • gifts; The Code of Conduct provides operations at a corporate level. This • occupational health and safety; guidance on a set of principles that involves a system of procedures that • equal employment opportunity; reflects its approach to business and include: Code of Ethics and Code of applies to anyone working for or on Conduct; fraud audits and training • continuous disclosure of conflicts behalf of LandCorp including Board, (including accountable and ethical of interest; and Executive, staff and internal contractors decision making training); directors • personal duties and responsibilities. and consultants. The Code of Conduct and officers liability insurance risk is part of the onboarding process, assessments; corporate risk register, The Governance and Remuneration available to staff at all times via the and a series of policies. Committee reviews the Code intranet and document management of Conduct as part of a regular review process.
The Board adopted a new Code of Conduct prepared jointly with the Metropolitan Redevelopment Authority effective January 2018 following the Machinery of Government announcement.
CORPORATE GOVERNANCE 99 SECTION 08
Shareholder This commitment is achieved by Ministerial approvals The Minister for Lands has portfolio provision of information and advice The Western Australian Land responsibility for LandCorp. to the Minister for Lands, as well as Authority Act 1992 requires LandCorp agencies such as the Department obtain the Minister’s approval Ministerial Reporting of Treasury and the Department for transactions in which the Governing legislation sets out of Finance. reports which are to be provided consideration is equal to or exceeds to the Minister. Information provided includes, but five percent of the value of total is not limited to, annual reports, half reported assets as set out in the most The governing legislation and year reports and budget submissions recent annual report. There have been regulations prescribes the matters to as well as responses to specific two transactions approved by the address in the Strategic Development requests from Parliament, Members of Minister in 2017-18. Plan and Statement of Corporate Parliament, agencies and the public Intent. These documents provide the Ministerial Review Minister with details on activities, key Ministerial direction Section 48 of the Act requires the objectives, strategies and operational Minister to carry out a review of the The Minister may give directions in targets. Both are submitted to the operation and effectiveness of the writing to the Board of directors Minister for approval annually, with Act within six months after every fifth with respect to the performance the consent of the Treasurer. The anniversary of the commencement of the functions prescribed under Minister tables the annual Statement of the Western Australian Land the legislation. Any such directions of Corporate Intent in the Parliament. Authority Act Amendment 2004. In must be laid before both Houses of The Minister was provided with all the course of this review the Minister Parliament within 14 days. the documents within the timeframes must have regard to: prescribed in the Western Australian The Board has maintained a policy (a) effectiveness of the operations of Land Authority Act 1992. with respect to responding to a the Authority; Ministerial direction. This policy Beyond the legislative requirements, (b) need for the continuation of the enables the Board to comply with the there is a commitment to functions of the WALA; and Western Australian Land Authority ensuring the Government is fully (c) other matters as appear to the Act 1992 and Statutory Corporations informed on significant activities Minister to be relevant to the (Liability of Directors) Act 1996. and developments. operation and effectiveness of No Ministerial directions were this Act. received from the Minister during The next review is due mid-2020. the reporting period.
CORPORATE GOVERNANCE 100 SECTION Corporate compliance disclosures 08 Freedom of Information Access applications received 3 The provisions of the Freedom of Information (FOI) Act 1992 apply Applications transferred to another agency 0 to LandCorp and statistics relating to applications received for this Applications withdrawn 1 reporting period are shown below. We work with applicants to facilitate Applications processed 2 full disclosure of documents where Access in full 0 appropriate. Edited access 1 An Information Statement in Documents not found/do not exist 1 accordance with the FOI Act, Access refused 0 providing information about Access deferred 0 LandCorp and how to make an Access given (s.28) 0 FOI request is available at landcorp.com.au. Applications carried over from previous years 0
FOI Statistics 2017-18 External reviews received 0
Record keeping compliance including information on employees’ Environmental regulation In accordance with Section 61 of the roles and responsibilities and how and management State Records Act 2000 and the they comply with the approved Day-to-day operations are State Records Commission Standards Recordkeeping Plan. Completion of the subject to regulation under (Standard 2 - Principle 6), LandCorp course is monitored and documented both Commonwealth and State has an approved Recordkeeping Plan. and there is an opportunity to provide environmental legislation applicable In accordance with s.28 (5) of the feedback on course content. to any Australian commercial entity. Act, an updated Plan was submitted These include: Public interest disclosure to the State Records Commission for • Wildlife Conservation Act approval June 2017 with the updated The Public Interest Disclosures Act (WA) 1950; plan being approved October 2017. 2003 facilitates the disclosure of • Waterways Conservation Act The Plan describes how records public interest information and (WA) 1976; are created, maintained, managed provides protection for those who • Environmental Protection Act and disposed of in accordance with make disclosures and those who are (WA) 1986; LandCorp’s standards and principles. the subject of disclosures. Regular reviews of recordkeeping • Environment Protection and practices and systems are LandCorp has three officers who can Biodiversity Conservation Act conducted and any opportunities for assist with enquiries and implement (Commonwealth) 1999; and improvement addressed. internal procedures developed to • Contaminated Sites Act ensure compliance with obligations (WA) 2003. The LandCorp onboarding process under the Act. for all staff and contractors includes online records management training, No disclosures were received this year.
CORPORATE GOVERNANCE 101 SECTION
Reportable expenditure The Electoral Act 1907 (Section 175 the organisations contracted and the 08 ZE) requires the disclosure of certain amounts paid for the financial year categories of expenditure. Details of are as follows:
Advertising $ 1,334,211 The Brand Agency
Media Advertising $ 554,920 Carat Australia Media Services Pty Ltd Adcorp Australia Limited
Market Research $ 20,375 Research Solutions
Direct mail $ 0
Polling $ 0
Total Expenditure $ 1,899,506
Risk management A Risk Management Framework Political, economic, stakeholder and outcomes. In general, we have a outlines the methodology, approach regulatory legislative factors are ‘low’ risk appetite, with exception and responsibility for the effective considered when assessing strategic in areas of safety and health, fraud, management and oversight of risk risks, while corporate objectives and corruption, misconduct and wilful within our business. The Framework organisational structures are considered breaches of confidentiality, where aligns to ISO 31000:2009 Risk for operational and corporate risk risk appetite is “zero”. ‘Moderate’ and Management Principles and analysis. Strategic risks are considered ‘high’ risk is only tolerated in specific Guidelines, the international ‘high level’ and are associated with areas subject to a full understanding standard for risk management and achieving corporate objectives and of the potential benefits and risks, the provides a consistent approach threats to the long-term sustainability of required authorisation being obtained to the recognition, measurement the business. Operational risks impact and effective controls being fully in and evaluation of risks across LandCorp as a whole and are associated place. This approach was reviewed our business. It also supports with threats to our overall business plan and agreed in 2017. Executive Management and the and business functions. Our Corporate The Board has delegated the Board in meeting their corporate Risk Register contains strategic and responsibility for oversight of risk governance responsibilities. operational risks. management to the Audit and Risk The primary focus of our risk All projects have a lifecycle from Management Committee. The role of management governance structure initiation through to planning, the committee is to assist the Board in and internal control systems is to contracting, design, construction and its oversight responsibilities related to identify, assess and mitigate material sales and require risk identification financial management and reporting, business risks with the aim of and management to ensure external audit, internal audit and enhancing value to our shareholder successful completion. The project risk management of LandCorp. The and protecting assets. risks are contained within the committee monitors enterprise risk risk module in Clarity, our project management activity incorporating Risk management assessments management system. If common its impact on mitigating material risks are undertaken at strategic, themes arise during the review of to the business through oversight of operational and project level. Our project risks, they are escalated to the Corporate Risk Register (tabled risk assessment system cascades the Operational Risk Register. four times a year to the committee from the strategic plan through to and bi-annually to the Board) and the operational and project plans and Another key ingredient in having a Risk Management Framework (tabled integrate into key performance positive and proactive risk culture is biennially to the committee). indicators and individual having a well-defined organisational performance plans. risk appetite to drive behaviour and
CORPORATE GOVERNANCE 102 SECTION 08
Directors’ Report Director Date First Appointed Appointment Term
The LandCorp Board of Directors George McCullagh 28 September 2010 31 December 2019 presents its report for the financial (Chairperson) 1 January 2018 year ended 30 June 2018. (Deputy Chairperson) 22 June 2015
Directors Simon Read 27 April 2010 31 December 2019
The Western Australian Land Kylee Schoonens 1 September 2016 30 June 2020 Authority Act 1992 (the Act) Jane Bennett 1 January 2018 31 December 2020 prescribes that the Board is to comprise between five and Rebecca Field 1 January 2018 31 December 2020 seven directors at any one time, Dale Page 1 January 2018 30 June 2020 with the Minister for Lands being responsible for Board Paul Lakey 1 January 2018 16 April 2018 appointments. Monty House 6 April 2009 31 December 2017 (former Chairperson) Persons who held the office of director during the course of the Peter Cooke 6 April 2009* 31 December 2017 year were as follows: Peter Gibbons 1 January 2013 31 December 2017
Sue Middleton 1 July 2015 31 December 2017
* First appointed 6 April 2009 to 9 June 2010. Reappointed 14 February 2011. The qualifications, experience and particular responsibilities of each director are set out below.
CORPORATE GOVERNANCE 103 SECTION 08 Current directors: Architects WA Emerging Architect Rebecca Field was appointed Award and the 2014 WA Business to the Board on 1 January 2018, George McCullagh was initially News 40under40 Award. Kylee is a Rebecca chairs the Governance appointed director of the LandCorp non-Executive Director for Bethanie, and Remuneration Committee and Board on 28 September 2010, George WA’s largest not-for-profit aged care is a member of the Audit and Risk became Deputy Chairperson in June provider and a council member for Management Committee. Rebecca 2015 and as of 1 January 2018, chairs a number of industry Boards and is also a partner at Corrs Chambers both the LandCorp and Metropolitan committees including the Property Westgarth. Known for her combination Redevelopment Authority Boards. Council of Australia (WA Division) of excellent technical ability, good George was previously a Partner commercial sense and strategic Divisional Council and the Australian with the international consulting thinking, Rebecca advises clients on the Institute of Architects Chapter Council. firm Deloitte. Over the past 15 years, legal, strategic and risk management She is a Graduate of the Australian he has worked as a consultant in issues associated with property Institute of Company Directors. independent practice providing development and redevelopment commercial and advisory services to Jane Bennett was appointed to the projects and the sale, acquisition and a range of planning, infrastructure, Board on 1 January 2018, Jane is a leasing of large commercial, retail, transport and redevelopment member of the Board’s Statutory industrial, pastoral, agricultural and organisations in Western Australia. Planning Committee. As an owner tourism assets. Rebecca also has many years’ experience in property George is a member of the Australian and Director at CLE Town Planning and development finance. Rebecca is Institute of Company Directors. and Design, her experience spans on Corrs’ Audit and Risk Management town planning in local government Simon Read was appointed to Committee and is a director of and private practice. Jane has the Board on 27 April 2010 and Corrs Support Services Pty Ltd, been instrumental in the planning currently chairs the Board’s Audit Corrs Enterprises Pty Ltd and Corrs and delivery of major residential, and Risk Management Committee. Enterprises Holdings Pty Ltd. commercial and industrial projects He has honed his hands-on skill set in Western Australia as well as spanning 25 years working with Government and institutional projects. Australia’s leading corporate recovery She is a strong advocate for, and specialists where he has specialised in actively involved in, the planning corporate reconstruction, turnaround reform agenda. Memberships include and business improvement. He the Western Australian Planning currently consults, specialising in Commission. She is a Graduate of the complex area of the Personal the Australian Institute of Company Property Securities Act 2009. Simon Directors, holds an MBA and planning has significant experience working qualifications. Jane was made a Fellow across a number of sectors including of the Planning Institute of Australia in forestry, mining, engineering, finance 2015 for her contribution to planning. and property. He is a Graduate of the Australian Institute of Company Directors and a Chartered Accountant.
Kylee Schoonens was appointed to the Board on 1 September 2016. She chairs the Board’s Statutory Planning Committee and is a member of the Governance and Remuneration Committee. As experienced Architect and Director of her own architectural practice, Kylee has led the design and delivery of many aged care, multi- residential, retirement and community projects across Western Australia. Her work within the architectural profession resulted in her receiving the 2015 Australian Institute of
CORPORATE GOVERNANCE 104 SECTION
Dale Page was appointed to the Peter Cooke was initially appointed Sue Middleton was appointed on Board on 1 January 2018 and is a 6 April 2009. Peter was Chairperson 1 July 2015. Sue was a member of 08 member of the Board’s Statutory of the Planning, Development and the Audit and Risk Management Planning Committee, Governance and Communications Committee and Committee. Sue helps to manage a Remuneration Committee and Audit a member of the Governance and diverse agribusiness operation and and Risk Management Committee. As Remuneration Committee. He has a has wide ranging and deep change Director of Planning and Community varied and extensive background in management experience across Development at the City of Joondalup agriculture, agribusiness, marketing, business, commodity groups and since 2010, Dale is responsible for strategic planning and communications. sectors and regional and local rural statutory and strategic urban planning, For the past 20 years he has been communities. Sue was formerly building approvals, environmental the principal of AgKnowledge, a the Chairperson for the Western health (including immunisation), small agribusiness firm specialising Australian Regional Development Trust planning and building compliance in providing strategic business and was the Rural Industries Research (including swimming pools), community development to a range of companies, and Development Corporation’s Rural development activities and the City government departments and Woman of the Year 2010. Sue has of Joondalup’s four libraries. Dale has enterprises across Australia. Peter is held extensive Board and Leadership considerable experience in delivering currently an Independent Director of the roles across all levels of industry land development projects throughout Western Rock Lobster Council, he was and government, including Regional Western Australia, previously working a Director of Landgate (2007-12), and Women’s Advisory Council, the in senior roles at the East Perth and Chief Executive Officer of the Kondinin National Rural Advisory Council and Subiaco Redevelopment Authorities Group (1988-1997). Peter is a Fellow a Commissioner on the Agricultural and LandCorp. of the Australian Institute of Company Produce Commission for Western Directors, and currently an Independent Australia. Sue’s term of appointment Directors who resigned or whose Chairperson for four Family Businesses. ended 31 December 2017. term ended during the period Until the London Olympics Peter Monty House was appointed chaired the National Selection Panel for Paul Lakey was appointed to the Chairperson on 6 April 2009. Australia’s Equestrian Olympic team. Board on 1 January 2018 and was a Monty has enjoyed a distinguished Peter’s term of appointment ended member of the Board’s Audit and 40-year career of public service, 31 December 2017. Risk Management Committee. Paul commencing as a Shire Councillor is also past president of the Urban and Shire President at Gnowangerup. Peter Gibbons was appointed on Development Institute of Australia As a former Member of Parliament 1 January 2013. Peter was a member (WA); former member of the Urban representing the Stirling electorate, of the Audit and Risk Management Development Institute’s National Monty also served as Minister for Committee and Governance and Board and is currently Regional Primary Industry and Fisheries as well Remuneration Committee. Peter has General Manager - West (WA,SA,NT) as Deputy Leader of the National extensive experience in property for listed national property developer, Party. Monty is the owner/manager investment banking, property Peet Limited. Paul has almost of an extensive grain and sheep development and property financing 30 years’ experience in the property farming business in WA. Monty has and funds management. Peter is has and development industry and has been Chairman, and a Board member, strong knowledge and understanding worked on many facets of property of a number of private and publicly of the issues and challenges of development across Australia, listed companies both in Australia regional development in Western Europe and the Middle East, with and overseas. He is a Member of Australia. He has previously held a professional qualifications in civil/ the Australian Institute of Company number of senior Board positions structural engineering. Paul resigned Directors and a serving Justice of the including the Board of the Silver Chain from the Board effective 16 April 2018. Peace. Monty’s term of appointment Group and Commissioner of the West ended on 31 December 2017. Australian Football Commission. Peter is also a non-Executive director of not-for-profit aged care and retirement group Bethanie, and chairs its Property Development Committee. Peter is also highly involved in developing new technologies for the property sector, and is Managing Director of Openn, a digital real estate negotiation platform. Peter’s term of appointment ended 31 December 2017.
CORPORATE GOVERNANCE 105 SECTION
Directors’ Meetings Details of attendance by Directors at Board meetings and Board committee meetings is set out below: 08
Audit and Risk Governance and Statutory Planning Director Board Management Remuneration Committe3 Committee Committee
Meetings Eligible to Meetings Eligible to Meetings Eligible to Meetings Eligible to Attended Attend1 Attended Attend1 Attended Attend1 Attended Attend1
George McCullagh 13 13 42 - 32 2 2 2
Simon Read 13 13 4 4 - - - -
Kylee Schoonens 10 13 - - 22 1 1 2
Jane Bennett 6 6 ------
Rebecca Field 6 6 2 2 1 1 - -
Dale Page 6 6 1 1 1 1 - -
Paul Lakey 2 4 1 1 - - - -
Monty House 7 7 22 - 22 - 22 -
Peter Cooke 6 7 22 - 2 2 2 2
Peter Gibbons 7 7 2 2 2 2 - -
Sue Middleton 7 7 2 2 - - - -
1 Indicates the number of meetings held during the period of each Director’s tenure. 2 Directors may attend committee meetings as an observer where they are not members. 3 The committee was formerly known as the Planning, Development and Communications Committee until 31 December 2017.
Principal Activities The Western Australian Land • to be an agency through which the its powers to bring about the Authority, trading as LandCorp, is Crown and public authorities may provision or improvement of land, a Government trading enterprise dispose of land; infrastructure, facilities or services established under the provisions • to be an agency through which for the same. of the Western Australian Land local governments and regional There have been no significant Authority Act 1992. local governments may dispose of changes to the nature of principal land in accordance with the Local The Act sets out a clear role for activities during the financial year. Government Act 1995; LandCorp to ensure the State’s future However in November 2017 the land needs are met in a commercially • to complete the development Government announced land agency responsible manner and establishes of the Joondalup Centre, in reform changes including the creation lines of accountability with the accordance with the plan referred of the Industrial Land Authority State Government. to in Section 18 on the land and the merger of LandCorp and described in Schedule 2; and the Metropolitan Redevelopment The functions are: • to identify other potential centres Authority (effective 1 January 2019) • to be an agency which provides, or of population, including those in . Section 5.5 of the Annual Report promotes, the provision of land for need of urban renewal, and use provides further details on this. the social and economic needs of the State;
CORPORATE GOVERNANCE 106 SECTION Financial Highlights 08 In line with our commercial principles specified in Section 19 Operating results 2017-18 2016-17 2015-16 2014-15 2013-14 of the Western Australian Land ($M) ($M) ($M) ($M) ($M) Authority Act 1992, development Profit Before Income 9.648 22.915 46.789 57.562 54.413 work was undertaken against the Tax Equivalents following Framework:
• to act in accordance with Income Tax 2.874 5.002 14.073 17.271 16.320 commercial principles; Equivalents Expense • perform functions in a cost- efficient manner; Net Profit 6.774 17.913 32.716 40.291 38.093 • endeavour to surpass long-term financial targets specified in its • ensure no new project had an LandCorp and Government have Strategic Development Plan; and expected rate of return below a agreed to set the hurdle rate of minimum hurdle rate specified in return as Weighted Average Cost the Strategic Development Plan. of Capital.
Returns to the State As specified in section 32 of the Western Australian Land Authority Operating results 2017-18 2016-17 2015-16 2014-15 2013-14 Act 1992, LandCorp pays rates and ($M) ($M) ($M) ($M) ($M) taxes. The following table outlines Dividends Paid 53.779 43.219 31.653 32.442 31.946 payments to Government in the last five years in respect of rates, taxes Land Tax 42.969 47.357 54.257 49.863 46.682 and dividends. Income Tax Expense 2.874 5.002 14.073 17.272 16.320 The Western Australian Land Authority Act 1992 specifies Local Government 7.009 8.147 7.412 6.805 7.967 determination of the dividend by Rate Equivalents the Board and Minister. The Board of directors is required to make Stamp Duty 1.336 0.785 5.891 4.088 2.915 a dividend recommendation to the responsible Minister as soon Total Returns 107.967 104.510 113.286 110.469 105.830 as practicable after the end of to Government each financial year. The Minister is required to consult with the Treasurer and either accept the recommendation or otherwise determine the dividend payable by LandCorp.
The Treasurer determines the date the dividend is paid.
Kununurra
CORPORATE GOVERNANCE 107 SECTION 08
Events subsequent to balance date Remuneration report Sales Revenue ($M) In the interval between the end of Remuneration arrangements for key (GST exclusive) 238.9 the financial year and the date of this personnel refers to non-Executive report, there has not arisen any item, Sundry Revenue 80.2 directors of the Board and Executives transaction or event of a material or responsible for planning, directing unusual nature likely, in the opinion Cost of Land Sold (150.0) and controlling operations. of the Directors, to significantly Policy for determining the nature affect operations, the result of those Estate Costs (46.9) operations, or the State of affairs in and amount of emoluments for key future financial years. Operating Costs (84.1) personnel is designed to attract, retain and engage appropriately qualified and Likely developments and Profit before Interest 38.1 experienced directors and executives. future results and Tax A Board committee, the Governance and Remuneration Committee, assists We will continue to work with Net Interest Expense (8.3) the Board by ensuring that appropriate Government, stakeholders and and effective policies, plans and customers to deliver the functions Income Tax Expense (8.8) practices are in place in relation to set out in the Western Australian remuneration arrangements and meets Land Authority Act 1992. Profit after Income Tax 21.0 regularly to consider relevant matters. Expected future trading results, as Payments to Government (through set out in its 2018-19 Statement of the Consolidated Fund) are expected Corporate Intent: to total around $97.75 million from 2017-18 operations. This includes tax equivalents, stamp duty on land acquisitions and expected dividends.
CORPORATE GOVERNANCE 108 SECTION Emoluments 08 Directors’ emoluments The remuneration of directors is Director Period of Membership during Fees $ determined following independent Reporting Period advice from remuneration consultants and the Public Sector Commission George McCullagh 1 July 2017 to 30 June 2018 91,193 and approved by the Minister. Simon Read 1 July 2017 to 30 June 2018 53,129 Remuneration is in the form of salary and superannuation contributions. Kylee Schoonens 1 July 2017 to 30 June 2018 53,129 No further post-employment benefits are paid to directors. Jane Bennett 1 January to 30 June 2018 26,360
In accordance with Section 13(c) Rebecca Field 1 January to 30 June 2018 26,360 of Schedule 3A of the Western Australian Land Authority Act 1992, Dale Page 1 January to 30 June 2018 26,360 the following table shows the nature Paul Lakey 1 January to 16 April 2018 15,428 and amount of each element for each director. Monty House 1 July to 31 December 2017 55,502 * Director remuneration covers fees for attendance at Board and Peter Cooke 1 July to 31 December 2017 26,769 committee meetings. ** Superannuation, at the required Peter Gibbons 1 July to 31 December 2017 26,769 amount (9.5 per cent), is paid on fees as is required under the Superannuation Sue Middleton 1 July to 31 December 2017 23,769 Guarantee Administration Act 1992.
Director Superannuation $
George McCullagh 8,663
Simon Read 5,047
Kylee Schoonens 5,047
Jane Bennett 5,047
Rebecca Field 2,504
Dale Page 2,504
Paul Lakey 1,466
Monty House 5,272
Peter Cooke 2,543
Peter Gibbons 2,543
Sue Middleton 2,724
Karratha, The Quarter
Directors’ Benefits No Directors have received benefits, or are entitled to receive any benefit, (other than included in the total amount of emoluments received or due and receivable by directors) by way of a contract made by LandCorp with the director, a firm of which the director is a member or with an entity in which the director has a substantial interest.
CORPORATE GOVERNANCE 109 SECTION
Executive Emoluments subject to organisational policy and Performance of the Chief Executive The Chief Executive and Executives eligibility requirements. and Executives is monitored against 08 receive a salary and superannuation agreed criteria. Staff remuneration is reviewed contributions in line with Government annually. The Board is responsible In accordance with Section 13(c) entitlements. Where eligible, the for the remuneration of the Chief of Schedule 3A of the Western private use component of a vehicle is Executive which is also reviewed Australian Land Authority Act 1992, provided. Decisions are made within the annually (in line with Minister-approved the details of emoluments provided context of organisational and individual contract of employment). The Chief to the five named officers receiving performance, and consistent with Executive, in line with the policy set the highest emoluments are provided equivalent bodies, industry benchmarks, by the Governance and Remuneration for the financial year by element existing Government policy and the Committee and the Board, sets of remuneration: industrial relations system. executive remuneration based on A total fixed remuneration (TFR) annual salary survey data and advice approach applies with flexible from independent remuneration Salary element remuneration packaging arrangements, consultants as well as a range of other factors including performance in line with industry best practice. This Executives Salary Paid $ means that, although the components and the public sector context. of the TFR or package may vary Frank Marra 519,681 Employees in management roles, between remuneration reviews, the including executives, are employed on Dean Mudford 385,151 total amount remains constant. individual, market-based contracts. Kerry Fijac 340,486 Superannuation paid is according No short or long-term incentives, loans, John Hackett 333,800 to legislation and availability of grant options, rights or shares to key other benefits (e.g. vehicles) is management personnel are provided. Fiona Barclay 325,109
Springs, Rivervale CORPORATE GOVERNANCE 110 SECTION
Superannuation element Executives are paid superannuation in 08 accordance with the Superannuation Guarantee Administration Act 1992. Currently the prescribed level is 9.5% of salary. Two Executives (Frank Marra and Kerry Fijac) are members of the Gold State Fund and receive approximately 15 per cent of their salary in contributions. Gold State Super was a defined benefit super scheme open to WA public sector employees until 1995. It is now closed to new members.
Executives Super Paid $
Frank Marra 75,722
Kerry Fijac 49,263
Dean Mudford 36,589
John Hackett 31,711
Fiona Barclay 30,885 Alkimos Beach
Other benefits (motor vehicle) element Other benefits cover the private use component of a vehicle, for those eligible. The value of the car to the remuneration package is based on private use component of the lease and operating costs plus Fringe Benefits Tax (FBT). All LandCorp vehicles attract a contribution from the employee to reduce FBT.
Executives Vehicle benefit $
Frank Marra 10,691
Dean Mudford 8,539
Fiona Barclay 8,539
Kerry Fijac 7,537
John Hackett 6,690
Waranyjarri Estate, Broome North
CORPORATE GOVERNANCE 111 SECTION 08
Onslow community centre
Indemnification and insurance of directors and officers Rounding of amounts During the reporting period, The Authority has entered into Amounts are rounded to the directors’ and officers’ liability deeds of indemnity with each nearest thousand dollars in the insurance was maintained to director and officer to indemnify Directors’ Report and financial ensure directors and officers are the director and officer in relation statements, unless otherwise adequately covered. The policy to certain liabilities incurred whilst a shown or indicated. indemnifies directors and officers director or officer of the Authority. This Report is made in accordance from loss which he/she becomes At the date of this report, no with a resolution of the Board. legally obligated to pay on account claims have been made against of any claim first made against the directors’ and officers’ him/her during the policy period insurance policy. for an insured act committed before or during the policy period.
George McCullagh Simon Read Chairperson Director
31 August 2018
CORPORATE GOVERNANCE 112 SECTION 09
Financial statements 09
FINANCIAL STATEMENTS 113 Directors’ declaration for the year ended 30 June 2018
The Directors declare that: a) in the Directors’ opinion, the attached financial statements and notes thereto are in accordance with the Western Australian Land Authority Act 1992, including compliance with Australian Accounting Standards and giving a true and fair view of the financial position and performance of the Western Australian Land Authority (LandCorp); b) in the Directors’ opinion, there are reasonable grounds to believe that LandCorp will be able to pay its debts as and when they become due and payable.
Signed in accordance with a resolution of the Directors made pursuant to Western Australian Land Authority Act 1992.
On behalf of the Directors
George McCullagh Simon Read Chairperson Director
31 August 2018
FINANCIAL STATEMENTS - DIRECTORS’ DECLARATION | 114 FINANCIAL STATEMENTS - AUDITORS’ GENERAL LETTER | 115 FINANCIAL STATEMENTS - AUDITORS’ GENERAL LETTER | 116 Statement of profit or loss and other comprehensive income
for the year ended 30 June 2018
2018 2017
Note $'000 $'000
Continuing Operations Operating revenue 2(a) 297,738 290,152 Operating expenses 2(b) (194,419) (196,633) Gross Profit 103,319 93,519 Other revenue 2(a) 4,415 33,912 Estate holding expenses (39,299) (45,166)
Employee benefit expenses (23,776) (25,787)
Consultant expenses (2,214) (3,305)
Advertising, public relations and sponsorship (4,213) (4,806) Other expenses 2(b) (24,406) (19,903) Results from operating activities 13,826 28,464
Finance income 2(a) 1,455 946 Finance costs (5,633) (6,495)
Net finance costs (4,178) (5,549)
Profit before income tax 9,648 22,915
Income tax expense 3 (2,874) (5,002) Profit for the year 6,774 17,913
Total comprehensive income for the year 6,774 17,913
The Statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes.
[GRI Standards 102-45] FINANCIAL STATEMENTS - COMPREHENSIVE INCOME | 117 Statement of financial position
as at 30 June 2018
2018 2017
Note $'000 $'000 CURRENT ASSETS Cash and cash equivalents 16(a),17 10,213 25,545 Receivables 4,17 80,280 23,541 Inventories 5 424,560 410,055 Current tax assets 11 3,026 - Other assets 9 6,117 22,130 Total current assets 524,196 481,271
NON-CURRENT ASSETS Receivables 4,17 12,405 27,926 Inventories 5 320,764 369,383 Property, plant and equipment 6 281,334 289,718 Intangibles 7 - 6 Deferred tax assets 8 24,798 27,992 Other assets 9 31,603 19,006 Total non-current assets 670,904 734,031 TOTAL ASSETS 1,195,100 1,215,302
CURRENT LIABILITIES Payables 10,17 31,392 32,442 Borrowings 14,17 78,500 35,250 Current tax liabilities 11 - 2,897 Provisions 12 7,627 6,673 Other liabilities 13 10,667 6,450 Total current liabilities 128,186 83,712
NON-CURRENT LIABILITIES Provisions 12 2,241 2,642 Borrowings 14,17 140,500 149,750 Other liabilities 13 34,668 42,880 Total non-current liabilities 177,409 195,272 TOTAL LIABILITIES 305,595 278,984
NET ASSETS 889,505 936,318
EQUITY Contributed equity 15 409,015 408,823 Retained earnings 480,490 527,495 TOTAL EQUITY 889,505 936,318
The Statement of financial position should be read in conjunction with the accompanying notes.
[GRI Standards 102-45] FINANCIAL STATEMENTS - FINANCIAL POSITION | 118 Statement of changes in equity
for the year ended 30 June 2018
$’000 $'000 $'000 Contributed Retained Total Equity Earnings Balance at 1 July 2016 408,823 552,801 961,624 Total comprehensive income for the year Profit for the year - 17,913 17,913 Other comprehensive income - - - Total other comprehensive income - - - Total comprehensive income for the year - 17,913 17,913 Transactions with owners recorded directly in equity Dividends (note 23) - (43,219) (43,219) Contributions of equity (note 15) - - - Balance at 30 June 2017 408,823 527,495 936,318
Balance at 1 July 2017 408,823 527,495 936,318 Total comprehensive income for the year Profit for the year - 6,774 6,774 Other comprehensive income - - - Total other comprehensive income - - - Total comprehensive income for the year - 6,774 6,774 Transactions with owners recorded directly in equity - Dividends (note 23) - (53,779) (53,779) Contributions of equity (note 15) 192 - 192 Balance at 30 June 2018 409,015 480,490 889,505
The Statement of changes in equity should be read in conjunction with the accompanying notes.
[GRI Standards 102-45] FINANCIAL STATEMENTS - CHANGES IN EQUITY | 119 Statement of cash flows
for the year ended 30 June 2018
2018 2017
Note $'000 $'000
CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers 214,062 246,006 Operating subsidies received 56,194 75,729 Payments to suppliers and employees (255,810) (311,341) Interest received 982 946 Income tax paid (5,603) (12,013) Net cash (used by)/from operating activities 16(b) 9,825 (673)
CASH FLOWS FROM INVESTING ACTIVITIES Payments for property, plant and equipment (55) (947) Proceeds from sale of property, plant and equipment 17 20,000 Net cash (used in)/from investing activities (38) 19,053
CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from equity contribution 192 - Proceeds from borrowings 60,000 76,250 Repayment of borrowings (26,000) (41,250) Payment of dividends (53,779) (43,219) Finance interest paid (5,532) (6,323) Net cash (used in)/from financing activities (25,119) (14,542)
Net (decrease)/increase in cash and cash equivalents (15,332) 3,838 Cash and cash equivalents at 1 July 25,545 21,707 Cash and cash equivalents at 30 June 16(a) 10,213 25,545
The Statement of cash flows should be read in conjunction with the accompanying notes.
[GRI Standards 102-45] FINANCIAL STATEMENTS - CASH FLOWS | 120 Notes to the financial statements
for the year ended 30 June 2018
Western Australian Land Authority Fair value b) Functional and (LandCorp) is the Western Australian Fair value is the price that would presentation currency Government’s land and property be received to sell an asset or The financial statements are development agency with its o§ce paid to transfer a liability in an presented in Australian dollars, and principal place of business orderly transaction between arm’s which is both the functional as follows: length market participants at the and presentation currency Level 6 measurement date, or estimated of LandCorp. All values are 40 The Esplanade using another valuation technique. rounded to the nearest thousand PERTH, WA 6000 dollars ($’000). In estimating the fair value of an LandCorp is a Not for Profit (NFP) asset or a liability, LandCorp takes c) Use of estimates and entity that is controlled by the State into account the characteristics judgements Government of Western Australia. of the asset or liability if market participants would take those The preparation of financial Note 1 Summary of significant characteristics into account when statements in conformity with accounting policies pricing the asset or liability at the Australian Accounting Standards requires management to make The following accounting policies measurement date. judgements, estimates and have been adopted in the preparation Fair value for measurement or assumptions that a®ect the of the financial statements. Unless disclosure purposes in these application of accounting policies otherwise stated these policies are financial statements is determined and the reported amounts of consistent with those adopted in the on such a basis, except for assets, liabilities, income and previous year. leasing transactions that are expenses. Actual results may di®er The financial statements were within the scope of AASB 117, and from the estimate. authorised for issue by the Board of measurements that have some Estimates and underlying Directors on 27 August 2018. similarities to fair value but are not fair value, such as net realisable assumptions are reviewed on an ongoing basis. Revisions a) Basis of preparation value in AASB 2 or value in use in AASB 136. to accounting estimates are The financial statements recognised in the period in constitute a general purpose All assets and liabilities for which which the estimate is revised financial report which has fair value is measured or disclosed and in any a®ected future been prepared in accordance in the financial statements are periods. In particular, information with the Western Australian categorised within their fair value about significant areas of Land Authority Act 1992, hierarchy based on the lowest estimation uncertainty and Australian Accounting Standards level input that is significant to critical judgements in applying (AASB) (including Australian the fair value measurement as accounting policies that have the Interpretations) adopted by the a whole: most significant e®ect on the Australian Accounting Standards • Level 1 – Quoted (unadjusted) amount recognised in the financial Board (AASB). The financial market prices in active markets statements are described in the statements do not apply AASB 8: for identical assets or liabilities following notes: Operating Segments, and AASB 120: Accounting for Government • Level 2 – Valuation techniques • Note 4 Receivables, Grants and Disclosure of for which the lowest level input with reference to Note 17 Government Assistance. that is significant to the fair Financial Instruments value measurement is directly or • Note 5 Inventories The statements have been indirectly observable • Note 8 Deferred tax prepared on the accrual basis of assets and liabilities accounting using the historical • Level 3 – Valuation techniques • Note 12 Provisions cost convention. Accounting for which the lowest level input • Note 24 Leasing arrangements policies have been applied in that is significant to the fair value a manner which ensures the measurement is unobservable resulting financial information satisfies the concepts of relevance and reliability.
[GRI Standards 102-45] FINANCIAL STATEMENTS - NOTES TO THE FINANCIAL STATEMENTS | 121 Note 1 Summary of significant accounting policies (continued)
d) Application of new and revised Accounting Standards Standards and Interpretations a®ecting amounts reported in the current period (or prior periods).
In the current year, LandCorp has reviewed all new and revised accounting standards issued by the Australian Accounting Standards Board (AASB) that are mandatorily e®ective for the accounting period that begins on or after 1 January 2018 thus, relevant to this financial year end.
These Standards and Amendments did not have a material impact on the financial performance or position of LandCorp.
AASB 1048 Interpretation of Standards AASB 1048 has been amended to have the same status as the International standard issued by IFRS. This includes updated references to the Framework in AASB 108: Accounting Policies, Changes in Accounting Estimates and Errors to comply with IAS 8. This standard is an administrative standard and does not impact on accounting application. AASB 2016-1 Amendments to Australian Accounting Standards - Recognition of Deferred Tax Assets for Unrealised Losses The amendment provides clarity to AASB 112: Income Taxes regarding deferred tax treatment for unrealised losses on debt instruments measured at fair value. AASB 2016-2 Amendments to Australian Accounting Standards - Disclosure Initiative AASB 107: Cash Flows has been amended to include an additional disclosure requirement in the notes to the financial statements. A reconciliation is required to report the changes in the liabilities arising from financing activities, including both changes arising from cash flows and non-cash flows such as FX gains and losses. AASB 2016-4 Amendments to Australian Accounting Standards - Recoverable Amount of Non-Cash Generating Specialised Assets of Not for Profit Entities The amendment removes reference to depreciated replacement cost as a measure of value in use for Not for Profit entities. Further, it clarifies application for Not for Profit entities holding non-cash generating specialised assets at fair value in accordance with AASB 13: Fair Value Measurement. Not for Profit entities holding such assets at cost may determine recoverable amounts using current replacement cost in AASB 13 as a measure of fair value as per AASB 136: Impairment of Assets.
[GRI Standards 102-45] FINANCIAL STATEMENTS - NOTES TO THE FINANCIAL STATEMENTS | 122 Note 1 Summary of significant accounting policies (continued)
e) Standards and Interpretations in issue not yet adopted At the date of authorisation of the financial statements, the Standards and Amendments listed below were in issue but not yet e®ective.
Operative for reporting periods beginning on or after AASB 9 Financial Instruments 1 January 2018 This Standard supersedes AASB 139: Financial Instruments: Recognition and Measurement, introducing changes to classification, measurement and derecognition of financial assets and financial liabilities. Entities are required to value financial assets and financial liabilities considering expected credit loss at each reporting date. LandCorp has performed a detailed assessment of the financial impact of implementation of AASB 9. Based on the financial position as at 31 March 2018 it was determined that the statement of financial position would be impaired by $370,000. This represents 1% reduction of the financial assets of which the majority is made up of the fair valuation of the assets reported as fair value through profit and loss. There is no significant expected credit loss. Changes to hedge accounting do not impact the LandCorp position or performance. AASB 15 Revenue from Contracts with Customers 1 January 2019 This Standard makes significant changes to the revenue recognition principles regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. A preliminary assessment of AASB 15 on sales revenue has indicated the majority of sales revenue is recognised at the settlement of land title which equates to the transfer of assets. LandCorp expects that the transition will not have a material impact on current revenue recognition of these transactions. LandCorp’s income is principally derived from sales to customers and from appropriations from the State Government. Appropriations will be assessed under AASB 1058: Income of Not for Profit entities and will be una®ected by the change to AASB 15. AASB 2016-7 Amendments to Australian Accounting Standards - Deferral of AASB 15 for 1 January 2018 Not for Profit entities AASB 15: Revenue is mandatory for all entities. The amendment modified the deadline for implementation to the financial year ended 30 June 2019 for Not for Profit entities.
[GRI Standards 102-45] FINANCIAL STATEMENTS - NOTES TO THE FINANCIAL STATEMENTS | 123 Note 1 Summary of significant accounting policies (continued)
AASB 16 Leases 1 January 2019 AASB 16 replaces AASB 117: Leases for all entities for reporting periods on or after 1 January 2019. This Standard introduces a single lease definition for lessee accounting. Leases previously reported as operating leases will be reported on the statement of position as a Right of Use asset and corresponding lease liability. An expedience exception is available for short term or low value leases. Depreciation of the Right of Use asset is charged over the life of the lease. The lease liability is calculated as the present value of the lease repayments. Repayments are allocated as principal and interest expense for the time value of money in the same manner as financial leases treatment under AASB 117. The treatment will a®ect the statement of position, statement of profit and loss EBITDA and the classifications of these transactions on the statement of cash flow. Whilst the Impact of AASB 16 has not been quantified, LandCorp currently has commitments for $15,204,829 worth of non -cancellable operating leases, of which most will be brought onto the Statement of Financial Position. LandCorp also holds peppercorn leases which require valuations to be brought to account on the Statement of Financial Position. These valuations will be performed by Landgate prior to 30 June 2019 implementation. A reconciliation of the operating lease commitments to the lease liability position will be disclosed in the notes to the financial statements as at 30 June 2019. AASB 1058 Income of Not for Profit Entities 1 January 2019 This Standard clarifies and simplifies the income recognition requirements applicable to Not for Profit entities to more closely reflect the economic reality of Not for Profit transactions that do not contract with customers. The timing of income recognition is dependent on whether such a transaction gives rise to a liability, a performance obligation or an obligation to acquire an asset. LandCorp’s revenue from operating subsidies, that are not capital contributions, are considered under AASB 1058. On initial assessment the non- enforceability of the funding would exclude the application of AASB 1058. LandCorp anticipates that the application of AASB 1058 will not materially impact operating subsidy income. AASB 1059 Service Concession Arrangements: Grantors 1 January 2019 AASB 1059 is a public sector specific standard relating to the concession arrangements between government departments and private sector organisations. Commonly referred to as Public-Private Partnerships, the government entity is required to recognise a service concession asset and corresponding liability in a similar way to leases. LandCorp has not yet determined the application or the potential impact of the Standard. AASB 2016-8 Amendments to Australian Accounting Standards - Australian Implementation 1 January 2019 Guidance for Not for Profit entities The amendment provides more clarification on AASB 9 and AASB 15 for Not for Profit entities. Transfer of financial assets (cash) to contract or acquire a nonfinancial asset (development) is not within the scope of AASB 15. For Not for Profit entities; contracts enforceability and specificity will determine the treatment under either AASB 15 or AASB 1058. Under AASB 9 the initial recognition and measurement requirements for non- contract receivables are the same as if the asset is a financial instrument.
[GRI Standards 102-45] FINANCIAL STATEMENTS - NOTES TO THE FINANCIAL STATEMENTS | 124 Note 1 Summary of significant accounting policies (continued)
f) Payables Depreciation h) Intangible assets Payables, including accruals not Depreciation is based on the Computer software has a limited yet billed, are recognised when cost of an asset less its residual useful life and is carried at cost LandCorp becomes obliged to value. No depreciation is charged less accumulated amortisation make future payments as a result on freehold land. Property, plant and impairment. Amortisation of a purchase of assets or services. and equipment having a limited is charged on a straight line Payables have terms of 30 days. useful life, are systematically basis over an estimated useful Payables are measured initially depreciated over their useful life of four years, which is at fair value and subsequently at lives in a manner which reflects reviewed annually, with the amortised cost using the e®ective the consumption of their future e®ect of any changes in estimate interest method. economic benefits. Depreciation being accounted for on a is provided for on the straight prospective basis. g) Property, plant and line basis to write o® the net cost equipment of each asset over its expected i) Employee benefits useful life to its estimated residual Recognition and measurement Wages, salaries, annual leave value. LandCorp reviews the Items of property, plant and depreciation rates annually. Liabilities for wages and salaries, equipment are stated at cost less including non-monetary benefits, The following estimated useful accumulated depreciation and and annual leave expected to be lives are used in the calculation impairment losses. Cost includes settled within 12 months of the of depreciation for each class of expenditure that is directly reporting date are recognised depreciable asset unless another attributable to the acquisition of in the provision for employee method provides a better estimate the asset. benefits in respect of employees’ of useful life: services up to the reporting An item of property, plant and Buildings 25 - 40 years date. They are calculated at equipment may be gifted or undiscounted amounts based contributed to LandCorp. Under Infrastructure 22 years on the wage and salary rates, these circumstances, the deemed Listed under equipment category including related on-costs such as cost of the item is its market value workers compensation insurance Furniture & O§ce as at the date it was gifted or and payroll tax that LandCorp Equipment 4 - 10 years contributed. expects to pay as at reporting Subsequent costs Computer Equipment 3 years date. Non-accumulating non- monetary benefits such as medical The costs of replacing part of Leasehold care and cars are expensed an item of property, plant and Improvements 3 years based on the net marginal cost equipment are recognised in the Plant & Equipment 10 years to LandCorp as the benefits are carrying amount of the item if it is taken by employees. probable that the future economic The assets’ residual values and benefits embodied within the part useful lives are reviewed, and Long service leave will flow to LandCorp and the cost adjusted if appropriate, at each The liability for long service leave can be measured reliably. The balance sheet date. is recognised in the provision for carrying amount of the replaced Items of property, plant and employee benefits and measured part is derecognised. The costs equipment costing less than as the present value of expected of day-to-day maintenance and $1,000 are expensed in the year future payments to be made in servicing of property, plant and of acquisition (other than where respect of services provided by equipment are recognised in profit they form part of a group of similar the employees up to the reporting or loss as incurred. items which are significant in total). date plus related on-costs. Consideration is given to expected Capital Works in Progress includes future wage and salary levels, and expenditure on assets which periods of service. are under construction but not substantially complete at the reporting date.
[GRI Standards 102-45] FINANCIAL STATEMENTS - NOTES TO THE FINANCIAL STATEMENTS | 125 Note 1 Summary of significant accounting policies (continued)
i) Employee benefits (cont’d) j) Contributed equity m) Income tax Unconditional long service leave Capital contributions have been LandCorp entered into the provisions and pre-conditional designated as contributions National Tax Equivalent Regime leave entitled within 12 months by owners and have been (NTER) in 2001/02 whereby an are classified as current liabilities credited directly to Contributed equivalent amount in respect as LandCorp does not have an Equity in the Statement of of income tax is payable to the unconditional right to defer the Financial Position only when Department of Treasury. The settlement of the liability for at such contributions have been calculation of the liability in least 12 months after the end of designated by the Department of respect of income tax is governed the reporting period. The provision Treasury as a contribution by the by NTER guidelines agreed by the for conditional long service leave owner at the time of or prior to State Government. The Australian entitled later than 12 months is the transfer. Taxation O§ce administers classified as a non-current liability, the NTER. as LandCorp has an unconditional k) Foreign currency As a consequence of participation right to defer the settlement of All foreign currency transactions in the NTER, LandCorp is required the liability until the employee during the year are brought to to comply with Accounting has completed the requisite years account using the exchange Standard AASB 112: Income Taxes. of service. rate in e®ect at the date of the Current tax An actuarial assessment of transaction. Foreign currency monetary items at the reporting long service leave undertaken Current tax is the expected tax date are translated at the by Actuaries at 30 June 2016 payable or receivable on the exchange rate existing at that determined that the liability taxable income or loss for the date. Exchange di®erences are measured using the short- year, using tax rates enacted recognised in profit or loss in the hand measurement technique, or subsequently enacted at period in which they arise. mentioned above, was not the reporting date, and any materially di®erent from the l) Goods and services tax adjustment to tax payable in liability determined using the respect of previous years. Current actuarial cost method. An Revenues, expenses, assets and tax is calculated by reference actuarial assessment will be liabilities, are recognised net of the to the amount of income taxes conducted at regular intervals to amount of goods and services tax payable or recoverable based on ensure the shorthand method is (GST), except: the taxable profit or loss for the still appropriate. • where the amount of GST period. It is calculated using tax rates and tax laws that have been Superannuation incurred is not recoverable from the taxation authority, enacted or substantively enacted • Defined contribution it is recognised as part of by the reporting date. Current superannuation funds: the cost of acquisition of an tax for current and prior periods is recognised as a liability (or Obligations for contributions asset or as part of an item of asset) to the extent it is unpaid (or to defined contribution expense or refundable). superannuation funds are • for receivables and payables recognised as an expense in profit which are recognised inclusive Deferred tax or loss when they are due. of GST. Deferred tax is accounted for The net amount of GST using the balance sheet liability recoverable from, or payable to, method. Deferred tax assets the taxation authority is included and liabilities are recognised for as part of receivables or payables. temporary di®erences at the tax rates expected to apply when the Cash flows are included in assets are recovered, or liabilities the Statement of Cash Flows are settled. on a gross basis. The GST component of cash flows arising from investing and financing activities which are recoverable from, or payable to, the taxation authority is classified as operating cash flows.
[GRI Standards 102-45] FINANCIAL STATEMENTS - NOTES TO THE FINANCIAL STATEMENTS | 126 Note 1 Summary of significant accounting policies (continued)
m) Income tax (cont’d) di®erent tax entities, but they equipment or inventory. Refer intend to settle current tax to Note 1(g) and Note 1(n) for The relevant tax rates are liabilities and assets on a basis or accounting treatment. applied to the cumulative their tax assets, and liabilities will amounts of deductible and be realised simultaneously. p) Lease payments taxable temporary di®erences to LandCorp is a lessee in a number measure the deferred tax asset n) Inventory – land held for sale of operating leases. Payments or liability. Deferred tax assets Land held for sale comprising made under operating leases and liabilities are not recognised development properties are are recognised in profit or loss if the temporary di®erences carried at the lower of cost or on a straight-line basis over giving rise to them arise from the net realisable value (based on the term of the lease. Lease initial recognition of assets and undiscounted cash flows). Cost incentives received are recognised liabilities (other than as a result includes the cost of acquisition as an integral part of the total of a business combination) which and development. Amounts are lease expense, over the term of a®ects neither taxable income nor disclosed as current where it accounting profit. Furthermore, the lease. is anticipated that land will be a deferred tax liability is not developed ready for sale within q) Provisions recognised in relation to taxable twelve months after reporting temporary di®erences arising from Provisions are recognised when date. The net realisable value the recognition of goodwill. LandCorp has a present obligation represents the estimated selling (legal or constructive) as a result Deferred tax assets are recognised price less all estimated costs of of a past event, and it is probable for deductible temporary completion and costs necessary that an outflow of resources di®erences only if it is probable to make the sale. embodying economic benefits that future taxable amounts will be required to settle the will be available to utilise those o) Lease arrangements obligation and a reliable estimate temporary di®erences. Leases are classified at their can be made of the amount of the In determining the amount inception as either operating obligation. of current and deferred tax, or finance leases based on the Provisions are measured at the LandCorp takes into account the economic substance of the present value of management’s impact of uncertain tax positions agreement to reflect the risks and best estimate of the expenditure and whether additional taxes and benefits incidental to ownership. required to settle the present interest may be due. LandCorp Leases where LandCorp (as a obligation at the reporting date. believes that its accruals for tax lessee) assumes substantially all of If the e®ect of the time value of liabilities are adequate for all open the risks and rewards of ownership money is material, provisions are tax years based on its assessment are classified as finance leases. determined by discounting the of many factors, including Upon initial recognition, the leased expected future cash flows at a interpretations of tax law and prior asset is measured at an amount pre-tax rate that reflects current experience. This assessment relies equal to the lower of its fair value market assessments of the time on estimates and assumptions and the present value of the value of money and, where and may involve a series of minimum lease payments. After appropriate, the risks specific to judgements about future events. initial recognition, the asset is the liability. The increase in the New information may become accounted for in accordance with provision due to the passage available that causes LandCorp to the accounting policy applicable of time is recognised as a change its judgement regarding to that asset. finance cost. the adequacy of existing tax liabilities; such changes to Leases other than finance leases When some or all of the economic tax liabilities will impact tax are operating leases and where benefits required to settle a expense in the period of such a LandCorp is the lessee in an provision are expected to be determination. operating lease arrangement, recovered from a third party, the leased assets are not recognised receivable is recognised as an Deferred tax assets and liabilities on the balance sheet. asset if it is virtually certain that are o®set if there is a legally recovery will be received and the enforceable right to o®set current LandCorp is a lessor in a number amount of the receivable can be tax liabilities and assets. This of operating leases of industrial, measured reliably. occurs when the transactions grazing and residential property. relate to income taxes levied These assets are recognised on by the same tax authority on the statement of financial position the same taxable entity, or on as items of property, plant and
[GRI Standards 102-45] FINANCIAL STATEMENTS - NOTES TO THE FINANCIAL STATEMENTS | 127 Note 1 Summary of significant accounting policies (continued)
q) Provisions (cont’d) Income is recognised on an the financial asset and also e®ective interest basis for debt recognises a collateralised Onerous Contracts instruments other than those borrowing for the proceeds Present obligations arising under financial assets classified as at fair received. On derecognition of a onerous contracts are recognised value through profit or loss. financial asset in its entirety, the di®erence between the asset’s and measured as a provision. An Held-to-maturity investments onerous contract is considered carrying amount and the sum of to exist where LandCorp has Commercial bills and term the consideration received and a contract under which the deposits with fixed or receivable and the cumulative gain unavoidable costs of meeting the determinable payments and fixed or loss that had been recognised obligations under the contract maturity dates that LandCorp in other comprehensive income exceed the economic benefits has the positive intent and ability and accumulated in equity is expected to be received under it. to hold to maturity are classified recognised in profit or loss. as held-to-maturity investments. r) Financial Assets Held-to-maturity investments are s) Receivables Financial assets are classified measured at amortised cost using Trade receivables and other into the following specified the e®ective interest method less receivables are recognised categories: financial assets at any impairment. at amortised cost, less any fair value through profit or loss, Loans and receivables impairment losses. held-to-maturity investments, t) Impairment of assets available-for-sale financial assets Trade receivables, loans, and and loans and receivables. other receivables that have Non-financial assets The classification depends on fixed or determinable payments The carrying amounts of the nature and purpose of the that are not quoted in an active LandCorp’s assets, other than financial assets and is determined market are classified as ‘loans and deferred tax assets, are reviewed at the time of initial recognition. receivables’. Loans and receivables at each reporting date to All regular way purchases or sales are measured at amortised determine whether there are any of financial assets are recognised cost using the e®ective interest indicators of impairment. If any and derecognised on a trade date method, less any impairment. such indicators of impairment basis. Regular way purchases Interest income is recognised by exists then, the asset’s recoverable or sales are purchases or sales applying the e®ective interest rate, amount is estimated. For of financial assets that require except for short-term receivables intangible assets that have an delivery of assets within the time when the e®ect of discounting indefinite life or are not yet frame established by regulation or is immaterial. available for use, the recoverable convention in the marketplace. Derecognition of amount is estimated annually and Eective interest method financial assets whenever there is an indication of impairment. The e®ective interest method LandCorp derecognises a financial is a method of calculating asset only when the contractual An impairment loss is recognised the amortised cost of a debt rights to the cash flows from if the carrying amount of an asset instrument and of allocating the asset expire, or when it exceeds its recoverable amount. interest income over the relevant transfers the financial asset and Impairment losses are recognised period. The e®ective interest rate substantially all the risks and in profit or loss. The recoverable is the rate that exactly discounts rewards of ownership of the asset amount of an asset is the greater estimated future cash receipts to another party. of its value in use and its fair value (including all fees on points If LandCorp neither transfers less costs to sell. In assessing the paid or received that form an nor retains substantially all the value in use, the estimated future integral part of the e®ective risks and rewards of ownership cash flows are discounted to their interest rate, transaction costs and continues to control the present value using a pre-tax and other premiums or discounts) transferred asset, LandCorp discount rate that reflects current through the expected life of recognises its retained interest market assessments of the time the debt instrument, or (where in the asset and an associated value of money and the risks appropriate) a shorter period, liability for amounts it may specific to the asset. to the net carrying amount on have to pay. If LandCorp retains initial recognition. all the risks and rewards of ownership of a transferred financial asset substantially, LandCorp continues to recognise
[GRI Standards 102-45] FINANCIAL STATEMENTS - NOTES TO THE FINANCIAL STATEMENTS | 128 Note 1 Summary of significant accounting policies (continued)
t) Impairment of assets (cont’d) u) Revenue recognition Services received free of charge are recognised as revenue when Impairment losses recognised in Revenue from land sales is and only when a fair value can prior periods are assessed at each recognised when all the following be reliably determined, and reporting date for any indications conditions are satisfied: the services would have been that a loss has decreased or no LandCorp has transferred to the purchased if they had not been longer exists. An impairment buyer the significant risks and donated. Consequently, use of loss is reversed if there has been rewards of ownership of the land. those resources is recognised as a change in the estimates used The transfer of e®ective control an expense. to determine the recoverable either occurs with the transfer amount. An impairment loss is Unearned revenue comprises of title (registration of a transfer reversed only to the extent that prepaid rental income, upfront document); or through special the asset’s carrying amount does capital lease payments clauses added to a sales contract not exceed the amount that and partnering agreement giving the buyer early access would have been determined, net participation fees received but not with all the rewards and risks of depreciation or amortisation, yet earned. Unearned revenue is associated with ownership, in had no impairment loss been released to income as and when conjunction with an unconditional recognised in prior periods. the services for which it was paid contract of sale; are delivered. Financial assets • LandCorp retains neither v) Operating subsidy Financial assets, other than those the continuing managerial at fair value through profit or involvement to the degree project funding loss, are assessed for indicators usually associated with LandCorp receives operating of impairment at each reporting ownership nor e®ective control subsidy funding for certain date. Financial assets are impaired over the land; projects from the Department of where there is objective evidence • the amount of revenue can Treasury and other Government that as a result of one or more be reliably measured; agencies as a contribution events that occurred after the towards either holding costs, land initial recognition of the financial • it is probable that the acquisitions or land development asset the estimated future cash economic benefits associated and associated costs. This flows of the investment have been with the transaction will flow funding is required to ensure impacted. For financial assets to LandCorp and LandCorp achieves its hurdle rate carried at amortised cost, the • the costs incurred or to be of return on these projects and amount of the impairment is the incurred in respect of the is recognised as revenue in the di®erence between the asset’s transaction can be measured statement of profit or loss and carrying amount and the present reliably. other comprehensive income value of estimated future cash when received by LandCorp. flows, discounted at the original Rent revenue from operating At 30 June 2018 LandCorp had e®ective interest rate. leases is recognised as income $40,092,511 (2017 $31,516,515) in on a straight line basis over the unspent grant funding that had The carrying amount of the rental term. financial asset is reduced by the been received and not yet spent. impairment loss directly for all Royalty revenue is recognised on Unspent grant funding can only financial assets with the exception an accruals basis in accordance be used for Royalty for Regions of trade receivables where the with the substance of the projects or projects that receive carrying amount is reduced relevant agreement. operating subsidy funding. through the use of an allowance Interest revenue is recognised on w) Cash and cash equivalents account. When a trade receivable a time proportionate basis that is uncollectible, it is written o® takes into account the e®ective Cash comprises cash on hand against the allowance account. yield on the principal sum of the and demand deposits. Cash Subsequent recoveries of amounts financial asset. equivalents are highly liquid previously written o® are credited investments with short periods against the allowance account. Project management revenue to maturity which is readily Changes in the carrying amount is recognised in profit or loss convertible to cash and are of the allowance account are in proportion to the stage of subject to an insignificant risk recognised in profit or loss. completion of the transaction of changes in value, net of at the reporting date. The outstanding bank overdrafts. stage of completion is assessed by reference to surveys of work performed.
[GRI Standards 102-45] FINANCIAL STATEMENTS - NOTES TO THE FINANCIAL STATEMENTS | 129 Note 1 Summary of significant accounting policies (continued)
x) Rounding All amounts in the financial report have been rounded to the nearest thousand dollars unless otherwise indicated.
y) Comparative amounts When the presentation or classification of items in the financial report is amended, comparative amounts are reclassified unless the reclassification is impracticable. When comparative amounts are reclassified, LandCorp discloses
• the nature of the classification
• the amount of each item or class of items that is reclassified
• the reason for the reclassification.
z) Change in accounting policy LandCorp made no changes to its accounting policies during the year.
[GRI Standards 102-45] FINANCIAL STATEMENTS - NOTES TO THE FINANCIAL STATEMENTS | 130 Notes to the financial statements
for the year ended 30 June 2018
2018 2017
$'000 $'000 Note 2 Profit before income tax Profit before income tax includes the following items of revenue and expense
a) Revenue Operating revenue Land sales 194,570 164,686 Grants to fund operating subsidy projects 27,179 46,882 Property rent revenue 36,952 36,839 Property expenses recovery 6,746 8,160 Grants to fund operating subsidy projects - holding costs 29,015 28,847 Royalties 1,473 1,685 Project management revenue 1,803 3,053 Total operating revenue 297,738 290,152
Other revenue Participation fees 396 1,473 Other 4,019 32,439 Total other operating revenue 4,415 33,912 Non-operating revenue Finance revenue 1,455 946 Total non-operating revenue 1,455 946
Total other revenue 5,870 34,858
b) Expenses from ordinary activities Operating expenses Cost of sales (140,779) (113,418) Operating subsidy project expenditure (18,398) (45,075) Property management expenses (35,242) (38,140) Total operating expenses (194,419) (196,633)
Other expenses from operating activities Administration expenses (3,884) (4,402) Accommodation expenses (2,801) (2,788) Land study expenses (7,721) (1,365) Loss on sale of property, plant and equipment (51) (2) Depreciation and amortisation (9,646) (11,338) Doubtful debts expenses (303) - Other expenses - (8) Total other expenses from operating activities (24,406) (19,903)
[GRI Standards 102-45] FINANCIAL STATEMENTS - NOTES TO THE FINANCIAL STATEMENTS | 131 2018 2017
$'000 $'000 Note 3 Income tax expense
Current tax expense Current year - 8,430
Deferred tax expense Origination and reversal of temporary di®erences 2,928 (1,537)
Under provision in respect to prior years (54) (1,891) 2,874 (3,428) Total income tax expense 2,874 5,002
Numerical reconciliation between tax expense and pre-tax accounting profit Total comprehensive income for the year 6,774 17,913 Total income tax expense 2,874 5,002 Profit excluding income tax 9,648 22,915
Income tax using LandCorp’s domestic rate of 30% (2017: 30%) 2,894 6,875 Non-deductible expenses 34 18 Under provision in respect of prior years (54) (1,891) Tax incentives - - Total income tax expense 2,874 5,002
[GRI Standards 102-45] FINANCIAL STATEMENTS - NOTES TO THE FINANCIAL STATEMENTS | 132 2018 2017
$'000 $'000 Note 4 Receivables Current Trade receivables 77,716 21,078 Less allowance for doubtful debts (303) - 77,413 21,078 GST receivable 2,867 2,463 Total current receivables 80,280 23,541
Non-current Trade receivables 12,405 27,926
Total receivables 92,685 51,467
Refer to Note 17 for discussion of financial risks associated with receivables.
Note 5 Inventories Current - land under development and developed land at cost 382,331 374,285 at net realisable value 42,229 35,770 Total current inventories 424,560 410,055
Non-current - undeveloped land and developed land at cost 305,843 351,776 at net realisable value 14,921 17,607 Total non-current inventories 320,764 369,383
Total inventories 745,324 779,438
Land held for sale comprises Cost of acquisition 368,700 383,570 Development costs 376,624 395,868 Total inventories 745,324 779,438
The valuations of developed land held for sale have been determined based on advice from independent valuers and real estate agents in accordance with LandCorp’s list price and valuation policies. List prices are reviewed twice a year (depending on the type of land) except during static market conditions whereby prices may be reviewed less frequently under the instruction of a relevant delegated authority. The most recent valuations for undeveloped land were performed on land held at 1 January 2018. For land in the Perth metropolitan area, valuations were provided by the Western Australian Land Information Authority (Landgate) while, regional undeveloped land valuations were provided by Opteon Property Group. Market value of developed land and undeveloped land held at 30 June 2018 amounted to $1,470,910,909 (2017: $1,598,931,037). At 30 June 2018 the write-down of inventories to net realisable value amounted to $5,070,175 (2017: $6,399,674) and were included in the cost of sales. There was no reversal of previously written down land assets.
[GRI Standards 102-45] FINANCIAL STATEMENTS - NOTES TO THE FINANCIAL STATEMENTS | 133 Note 6 Property, plant and equipment Non-Current Freehold Infra- land Buildings structure Equipment Total $'000 $'000 $’000 $’000 $’000 Cost or deemed cost Balance at 30 June 2016 90,551 51,216 27,191 216,943 385,901 Additions 541 - - 953 1,494 Cost revisions - 948 - - 948 Reclassification - 2,537 - (2,537) - Disposals - (9,407) - (173) (9,580) Balance at 30 June 2017 91,092 45,294 27,191 215,186 378,763 Additions 17,190 - - 55 17,245 Cost revisions - 72 - - 72 Reclassification - - - - - Disposals (16,005) - - (388) (16,393) Balance at 30 June 2018 92,277 45,366 27,191 214,853 379,687
Accumulated depreciation Balance at 30 June 2016 (12,659) (12,292) (54,361) (79,312) Disposals 730 - 165 895 Reclassification - - - - Depreciation expense (2,063) (1,581) (6,984) (10,628) Balance at 30 June 2017 (13,992) (13,873) (61,180) (89,045) Disposals - - 332 332 Reclassification - - - - Depreciation expense (1,364) (1,298) (6,978) (9,640) Balance at 30 June 2018 (15,356) (15,171) (67,826) (98,353)
Carrying amounts at 30 June 2017 91,092 31,302 13,318 154,006 289,718 at 30 June 2018 92,277 30,010 12,020 147,027 281,334
To support the carrying value included in property, plant and equipment, LandCorp obtained valuations from Western Australian Land Information Authority (Landgate) for metropolitan freehold land and McGees Property for regional freehold land. Based on their estimated market value at 1 January 2018, market value of freehold land at 30 June 2018 was $518,686,000 (2017: $545,768,000).
[GRI Standards 102-45] FINANCIAL STATEMENTS - NOTES TO THE FINANCIAL STATEMENTS | 134 Note 7 Intangible assets Non-current Computer software $’000
Cost Balance at 30 June 2016 14,329 Additions - Cost revisions - Disposals (83) Balance at 30 June 2017 14,246 Additions - Cost revisions - Disposals - Balance at 30 June 2018 14,246
Accumulated amortisation Balance at 30 June 2016 (13,615) Disposals 83 Amortisation expense (708) Balance at 30 June 2017 (14,240) Disposals - Amortisation expense (6) Balance at 30 June 2018 (14,246)
Carrying amounts at 30 June 2017 6 at 30 June 2018 0
[GRI Standards 102-45] FINANCIAL STATEMENTS - NOTES TO THE FINANCIAL STATEMENTS | 135 2018 2017
$'000 $'000 Note 8 Deferred tax assets and liabilities
Non-current Deferred tax asset 24,798 27,992
Unrecognised deferred tax assets Deferred tax assets have not been recognised in respect of the following items: Deductible temporary di®erences 10,823 10,823
The deductible temporary di®erences do not expire under current tax legislation. Deferred tax assets have not been recognised in respect of these items as they will become available contingent on the event that the underlying assets are held until utilisation of all capital works deductions.
Recognised deferred tax assets and liabilities and movement in temporary di®erences during the year are attributable to the following:
Recognised Under (over) Recognised Opening in profit provision in directly in Closing 2018 balance or loss prior year equity balance Temporary dierences $'000 $'000 $’000 $’000 $’000
Inventories 18,184 (1,512) (1,260) - 15,412 Intangible assets - 6 4 10 Property, plant and equipment 2,732 (1,149) 256 - 1,839 Accrued expenses 793 135 - - 928 Provision for superannuation 25 (1) 2 - 26 Provision for annual leave 695 (38) - - 657 Provision for long service leave 1,349 69 - - 1,418 Provision for doubtful debts (1) 91 - - 90 Provision for Fringe Benefit Tax - - - - - Provision for future development 12,749 - 661 - 13,410 obligation Accrued interest income (1,474) 586 - - (888) Income received in advance 5,270 (115) - - 5,155 Recognition of long leases (9,455) (2,573) - - (12,028) Prepayments 76 (74) 71 - 73 Partner development costs (2,951) (64) - - (3,015) Tax losses - 1,711 - - 1,711 27,992 (2,928) (266) - 24,798
[GRI Standards 102-45] FINANCIAL STATEMENTS - NOTES TO THE FINANCIAL STATEMENTS | 136 Note 8 Deferred tax assets and liabilities (continued)
Recognised Under (over) Recognised Opening in profit provision in directly in Closing 2017 balance or loss prior year equity balance Temporary dierences $'000 $'000 $’000 $’000 $’000
Inventories 18,602 - (418) - 18,184 Property, plant and equipment 3,906 (1,058) (116) - 2,732 Accrued expenses 42 751 - - 793 Provision for superannuation - 25 - - 25 Provision for annual leave 673 22 - - 695 Provision for long service leave 1,374 (25) - - 1,349 Provision for doubtful debts (1) - - - (1) Provision for Fringe Benefit Tax 4 (4) - - - Provision for future development obligation 6,312 - 6,437 - 12,749 Accrued interest income (44) 2,184 (3,614) - (1,474) Income received in advance 5,384 (114) - - 5,270 Recognition of long leases (9,244) (211) - - (9,455) Prepayments - - 76 - 76 Partner development costs (2,843) (33) (75) - (2,951) 24,165 1,537 2,290 - 27,992
Movement in unrecognised deferred tax assets and liabilities during the year
Balance Balance Balance 1 July 16 Recognised 1 July 17 Recognised 30 June 18 $'000 $'000 $’000 $’000 $’000
Deductible temporary di®erences 10,823 - 10,823 - 10,823
[GRI Standards 102-45] FINANCIAL STATEMENTS - NOTES TO THE FINANCIAL STATEMENTS | 137 2018 2017
$'000 $'000 Note 9 Other assets Current Deposit bonds 721 694 Deposits for land acquisitions 2,318 8,799 Prepayments 3,078 12,637 Total current other assets 6,117 22,130
Non-current Deposits for land acquisitions 22,120 19,006 Prepayments 9,483 - Total non-current other assets 31,603 19,006
Note 10 Payables Current Trade payables 6,761 6,478 Accrued expenses 15,392 23,025 GST payable 9,239 2,939 Total current payables 31,392 32,442
Note 11 Tax liabilities/(assets) Current Income tax payable/(receivable) (3,026) 2,897 Total current tax liabilities/(assets) (3,026) 2,897
Note 12 Provisions Current Employee benefits (i) 4,676 4,173 Provision for remediation 2,951 1,000 Other provisions - 1,500 Total current provisions 7,627 6,673 Non-current Employee benefits (i) 2,241 2,642 Total non-current provisions 2,241 2,642
(i) The main assumptions used to determine the provision for employee benefits are provided in note 1 (i)
Note 13 Other liabilities Current Deposits (i) 1,142 719 Unearned revenue 9,525 5,731 Total current other liabilities 10,667 6,450 Non-current Unearned revenue 24,668 27,880 Other 10,000 15,000 Total non-current other liabilities 34,668 42,880
(i) Deposits include deposits received on sale of land.
[GRI Standards 102-45] FINANCIAL STATEMENTS - NOTES TO THE FINANCIAL STATEMENTS | 138 2018 2017
$'000 $'000
Note 14 Borrowings
Current Liquidity Advance 41,500 - Debt Portolio Manager 37,000 35,250 Total current borrowings 78,500 35,250
Non-Current Debt Portolio Manager 140,500 149,750 Total non-current borrowings 140,500 149,750 Total Loans and Borrowings 219,000 185,000
LandCorp currently holds two debt facilities with the Western Australian Treasury Corporation (WATC); a five year rolling Debt Portfolio Manager (DPM) facility and a Liquidity Advance (LPM) facility for short-term lending. Under the Debt Portfolio Manager facility LandCorp has the ability to repay a maximum of 20% of the balance per year. The Liquidity Advance facility is repayable on the 16th of each month. Rollover of the Liquidity Advance facility is optional.
Financing facilities Unsecured bank overdraft facility, reviewed annually and payable at call: Amount used - - Amount unused 2,000 2,000 2,000 2,000 Secured loan facilities with Western Australian Treasury Corporation (WATC) Amount used 219,000 185,000 Amount unused 34,507 115,000 253,507 300,000
As part of the State Budget Government has approved LandCorp’s borrowing projections based on cash flow estimates. The limits are as follows:
Borrowing limit at 30 June 262,200 195,461 "Intra-year" peak borrowings 354,400 370,504
Note 15 Equity
Contributed equity Capital contributed on formation 113,957 113,957 Capital contributed by State Government 294,866 294,866 Capital contributed by State Government during the year 192 - Total contributed equity 409,015 408,823
Department of Treasury funding 192 - Royalties for Regions funding - - Total capital contributed by State Government during the year 192 -
[GRI Standards 102-45] FINANCIAL STATEMENTS - NOTES TO THE FINANCIAL STATEMENTS | 139 2018 2017
$'000 $'000 Note 16 Notes to the statement of cash flows
(a) Reconciliation of cash For the purposes of the statement of cash flows, cash includes cash on hand and in banks, net of outstanding bank overdrafts. Cash and cash equivalents at the end of the financial year as shown in the statement of cash flows is reconciled to the related items in the statement of financial position as follows:
Cash and cash equivalents 10,213 25,545
(b) Reconciliation of cash flows from operating activities Profit for the year 6,774 17,913 Adjustments for: Accrued Income (25,833) (39,354) Loss on sale of property, plant and equipment 51 - Employee benefits expense 977 (168) Depreciation and amortisation of non-current assets 9,646 11,338 Doubtful debts written o® 303 - Finance interest paid 5,633 6,495 Income tax expense 2,874 5,002 425 1,226 Assets (increase)/ decrease Receivables (17,018) 17,971 Inventories 32,896 (2,793) Other assets 3,416 (3,189)
Liabilities increase/ (decrease) Payables (268) (6,368) Provisions (424) 2,659 Other liabilities (3,599) 1,834 Cash generated from operating activities 15,428 11,340 Net income tax paid (5,603) (12,013) Net cash from operating activities 9,825 (673)
(c) Extract from the Statement of cash flows Cash Flows from Financing Activities (34,000) (35,000) Proceeds from borrowings 60,000 76,250 Repayment of borrowings 26,000 41,250
(d) Net Debt Cash and cash equivalents 10,213 25,545 Loans and borrowings (current) (78,500) (35,250) Loans and borrowings (non-current) (140,500) (149,750) (208,787) (159,455)
Cash and cash equivalents 10,213 25,545 Gross debt - fixed interest rate (219,000) (185,000) (208,787) (159,455)
[GRI Standards 102-45] FINANCIAL STATEMENTS - NOTES TO THE FINANCIAL STATEMENTS | 140 Note 16 Notes to the statement of cash flows (continued) (e) Reconciliation of liabilites arising from financing activities
Opening Non-cash flow Closing balance balance
2018 Cash Flow Acquisition FX movement FV changes Temporary dierence $’000 $'000 $’000 $’000 $’000 $’000
Short-term borrowings 35,250 43,250 - - - 78,500 Long-term borrowings 149,750 (9,250) - - - 140,500 Total liabilities from financing activities 185,000 34,000 - - - 219,000
Note 17 Financial instruments (a) Financial risk management
LandCorp has exposure to the following risks from its use of financial instruments: • credit risk • liquidity risk • market risk
This note presents information about LandCorp’s exposure to each of the above risks, its objectives, policies and processes for measuring and managing risk, and the management of capital.
The Board has overall responsibility for the establishment and oversight of the risk management framework. The Board has established the Audit and Risk Management Committee, which is responsible for developing and monitoring risk management policies. The Committee reports regularly to the Board.
The Audit and Risk Management Committee oversees how management monitors compliance with LandCorp’s risk management policies and procedures and reviews the adequacy of the risk management framework in relation to the risks faced by LandCorp.
Risk management policies are established to identify and analyse the risks faced by LandCorp, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and LandCorp’s activities. LandCorp, through its training and management standards and procedures, aim to develop a disciplined and constructive control environment in which all employees understand their roles and obligations.
The Audit and Risk Management Committee is assisted in its oversight role by Internal Audit. Internal Audit undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the Audit and Risk Management Committee.
(b) Credit risk
Credit risk is the risk of financial loss to LandCorp if a customer or counterparty to a financial instrument fails to meet its contractural obligations. Credit risk arises principally from LandCorp’s receivables from customers and investments.
Exposure to credit risk
The carrying amount of LandCorp’s financial assets represents the maximum credit exposure. LandCorp’s maximum exposure to credit risk at the reporting date: Carrying amount
2018 2017 $'000 $'000 Loans and receivables 89,818 49,004 Cash and cash equivalents 10,213 25,545 100,031 74,549
[GRI Standards 102-45] FINANCIAL STATEMENTS - NOTES TO THE FINANCIAL STATEMENTS | 141 Note 17 Financial instruments (continued) Investments
LandCorp limits its exposure to credit risk by only investing in liquid securities and only with counterparties that have a Standard & Poors credit rating of AA- or above. Given these high credit ratings, management does not expect any counterparty to fail to meet its obligations.
Trade and other receivables
LandCorp’s exposure to credit risk is influenced mainly by the nature of each debtor portfolio and the risk management approach taken. Approximately 18% (2017: 28%) comprises debt from other Government agencies to be paid over time and is considered to be low risk.
It should be noted that due to the nature of LandCorp’s business the vast majority of LandCorp’s revenue is received and recognised at the time of settlement of the sale of land, hence debtors make up a small proportion of LandCorp’s overall customer base.
New non-Government debtors are analysed individually for creditworthiness before LandCorp’s standard payment and delivery terms and conditions are o®ered.
Given the one-o® nature of land sales with LandCorp, less than 22% (2017: less than 13%) of LandCorp’s customers have transacted with LandCorp previously, and losses occur infrequently. In monitoring debtor credit risk, debtors are grouped into portfolios according to their credit characteristics including whether they are a Government or non-Government debtor. Debtors that are graded as higher risk are monitored for late payment and may be subject to legal action.
LandCorp has an allowance for doubtful debts that represents their estimate of incurred losses in respect of trade and other receivables. The allowance is a specific loss component that relates to individual exposure.
LandCorp’s maximum exposure to credit risk for trade receivables at the reporting date by geographic region:
Carrying amount
2018 2017 $'000 $'000 Australia 89,818 49,004
LandCorp’s maximum exposure to credit risk for trade receivables at the reporting date by type of debtor: Carrying amount
2018 2017 $'000 $'000 Government debtors 16,877 13,648 Non-Government debtors 72,941 35,356
[GRI Standards 102-45] FINANCIAL STATEMENTS - NOTES TO THE FINANCIAL STATEMENTS | 142 Note 17 Financial instruments (continued) Impairment losses
LandCorp has $1,568,613 (2017: $2,024,801) accounts receivables which are past their due date. Below is the aging of said receivables at reporting date: Trade receivables Gross Impairment
2018 2017 2018 2017 $'000 $'000 $'000 $'000 Not past due 88,249 46,979 - - Past due 1-30 days 1,084 426 - - Past due 31-60 days 31 131 - - Past due 61-90 days 108 1,207 - - Past due 91-180 days 153 261 - - Past due more than 181 days 193 - - - 89,818 49,004 - -
The movement in the allowance for doubtful debts during the year was as follows:
2018 2017 $'000 $'000
Balance at 1 July - - Movement 303 - Balance 30 June 303 -
LandCorp believes no impairment allowance is necessary in respect of trade receivables not past due or past due by up to 60 days. LandCorp does however, make a provision for doubtful debts for all receivables greater than 181 days and any other debtors that are deemed unrecoverable. For the year ended 30 June 2018, LandCorp provided for two doubtful debtors, to the total of $303,147 (2017: $0).
[GRI Standards 102-45] FINANCIAL STATEMENTS - NOTES TO THE FINANCIAL STATEMENTS | 143 Note 17 Financial instruments (continued)
(c) Liquidity risk
Liquidity risk is the risk that LandCorp will not be able to meet its financial obligations as they fall due. LandCorp’s approach to managing liquidity is to ensure, as far as possible, that it will always have su§cient liquidity to meet its liabilities when due, under both normal and adverse conditions, without incurring unacceptable losses or risking damage to LandCorp’s reputation.
LandCorp uses market value to value the land holdings which ensures monitoring cash flow requirements and optimising its cash return on investments. Typically LandCorp ensures that it has su§cient cash on demand to meet expected operational expenses for a period of 30 days, including the servicing of financial obligations. This excludes the potential impact of extreme circumstances that cannot reasonably be predicted, such as natural disasters.
In addition, LandCorp maintains the following lines of credit:
• $2 million unsecured bank overdraft facility. Interest is payable at the bank’s published Corporate Overdraft Reference Rate less 100 basis points.
• $253.5 million (2017: $300 million) provided by Western Australian Treasury Corporation (WATC) that can be drawn down to meet short and long-term financing needs. The facilities have a flexible maturity that is renewable at the option of LandCorp. Interest is payable at the WATC lending rate for this structure on the day the funds are advanced plus or minus 100 basis points. A Guarantee fee is payable at 0.7% on loan balances.
• Guarantees established in favour of Commonwealth Bank of Australia for guarantees issued to various Government entities for satisfactory contract performance, amounting to $20 million (2017 : $20 million). These guarantees are secured by underlying land assets.
The contractual maturities of financial liabilities, including estimated interest payments and excluding the impact of netting agreements:
Weighted average eective Carrying Contractual 6 months 6-12 More than interest rate amount cash flows or less months 1 year 2018 % $'000 $’000 $’000 $’000 $’000 Trade and other payables 31,392 (31,392) (23,488) (7,000) (904) WATC loans/Borrowings 2.38% 219,000 (237,377) (21,638) (21,399) (194,340) 250,392 (268,769) (45,126) (28,399) (195,244) 2017 Trade and other payables 32,442 (32,442) (21,226) (11,210) (6) WATC loans/Borrowings 2.09% 185,000 (197,711) (19,190) (20,656) (157,865) 217,442 (230,153) (40,416) (31,866) (157,871)
[GRI Standards 102-45] FINANCIAL STATEMENTS - NOTES TO THE FINANCIAL STATEMENTS | 144 Note 17 Financial instruments (continued)
(d) Market risk
Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates, will a®ect LandCorp’s income or the value of its financial instruments holdings. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.
LandCorp currently has no derivative arrangements.
Interest rate risk
At the reporting date the interest rate profile of LandCorp’s interest-bearing financial assets and liabilities were:
2018 2017 $’000 $’000
Variable rate instruments Financial assets 10,213 25,545 Financial liabilities (219,000) (185,000)
Cash flow sensitivity analysis for variable rate instruments:
A change of 100 basis points in interest rates at the reporting date would have increased (decreased) equity and profit or loss by the amounts shown below.
Profit or Loss
2018 100 bp 100 bp $'000 increase decrease
Financial assets 102 (102) Financial liabilities (2,190) 2,190
2017 $'000
Financial assets 255 (255) Financial liabilities (1,850) 1,850
[GRI Standards 102-45] FINANCIAL STATEMENTS - NOTES TO THE FINANCIAL STATEMENTS | 145 Note 17 Financial Instruments (continued) Fair values
Fair values versus carrying amounts
The fair values and carrying amounts of financial assets and liabilities, shown in the Statement of financial position are as follows:
30 June 2018 30 June 2017
Carrying Fair Carrying Fair $’000 amount value amount value
Loans and receivables 89,818 89,818 49,004 49,004 Cash and cash equivalents 10,213 10,213 25,545 25,545 Trade and other payables (31,392) (31,392) (32,442) (32,442) WATC loan (219,000) (219,000) (185,000) (185,000) (150,361) (150,361) (142,893) (142,893)
Capital Management
Under Section 19 of the Western Australian Land Authority Act 1992, the Board’s policy is to maintain a strong capital base so as to maintain shareholder, creditor and market confidence and to sustain the future development of the business.
LandCorp has agreed a dividend policy with its shareholder, the State Government, based on a set formula. LandCorp retain the cash balance as a source of capital funding for ongoing activities.
There were no changes to LandCorp’s approach to capital management during the year.
2018 2017 $'000 $'000 Note 18 Land sales contracts
Unsettled sales contracts excluding GST (i) 48,118 39,060 Total unsettled sales contracts 48,118 39,060
(i) Unsettled sales contracts have not been included in revenue since neither title nor possession has been transferred. This treatment is in accordance with the Accounting Policy explained in note 1(u).
Note 19 Commitments
(a) Capital commitments expenditure Development of land 57,134 84,617 Operating subsidy (project funding received in advance) 40,093 31,517 97,227 116,134
[GRI Standards 102-45] FINANCIAL STATEMENTS - NOTES TO THE FINANCIAL STATEMENTS | 146 Note 20 Related party disclosures
LandCorp is a wholly-owned public sector entity that is controlled by the State of Western Australia.
Related parties of LandCorp include: • State Government Cabinet Ministers, their close family members, and their controlled or jointly controlled entities;
• All directors and senior o§cers of LandCorp, their close family members, and their controlled or jointly controlled entities;
• Other departments and statutory authorities, including their related bodies, that are included in the whole of government consolidated financial statements;
• Associates and joint ventures of an entity that are included in the whole of government consolidated financial statements; and
• the Government Employees Superannuation Board (GESB).
Material Transactions with Ministers, Senior O¥cers and their Related Parties
Under the State Government Land Agency reform, a common Board was appointed to LandCorp and the Metropolitan Redevelopment Authority in January 2018. Current LandCorp Non-Executive Directors: George McCullagh, Kylee Schoonens, Simon Read, Jane Bennett, Dale Page and Rebecca Field are all Non-Executive Directors of the Metropolitan Redevelopment Authority. Paul Lakey was a LandCorp Non-Executive Director during the year for the period 1 January 2018 to 16 April 2018. He is currently a Non-Executive Director of the Metropolitan Redevelopment Authority.
During the year, LandCorp recognised interest income of $292,721 and project income of $1,735,622 from the Metropolitan Redevelopment Authority. At 30 June 2018 the receivable balance of the Metropolitan Redevelopment Authority is $13,824,779.
The Department of Planning, Land and Heritage, is the WA State Government department that encompasses the Western Australian Planning Commission. Jane Bennett, a Non-Executive Director of LandCorp, is a member of the Western Australian Planning Commission.
During the year LandCorp incurred $4,009,831 in land acquisition costs, and received $2,809,807 in project income from the Department of Planning, Land and Heritage. At 30 June 2018 LandCorp held a deposit for land balance of $20,589,893 and a receivable for project costs of $339,897 in the name of the department.
Sponsorship fees totalling $89,138 were paid during the year to Urban Development Institute of Australia. Jane Bennett is the Vice President of the Council, in the Urban Development Institute of Australia, and is currently on a leave of absence from this positon for the period of 1 January to 30 June 2018.
Dale Page is a Non-Executive Director of LandCorp, and is a Director of Planning and Community Development in the City of Joondalup. During the year LandCorp paid the City of Joondalup $500,000 in relation to the Ocean Reef Marina business case. LandCorp has several active projects that fall within the City of Joondalup’s authority.
Compensation of Key Management Personnel
LandCorp has determined that the Key Management Personnel of LandCorp includes all Cabinet Ministers, the directors and senior o§cers of LandCorp.
LandCorp is not responsible for Cabinet Ministers compensation, disclosures of the Minister’s compensation may be found in the Annual Report on State Finances.
2018 2017 $’000 $’000
Short-term employee benefits 2,678 2,637 Post-employment benefits 297 292 Other long-term benefits 77 77 Termination benefits - - Total compensation of key management personnel 3,052 3,006 (excluding Ministers)
[GRI Standards 102-45] FINANCIAL STATEMENTS - NOTES TO THE FINANCIAL STATEMENTS | 147 Note 20 Related party disclosures (continued)
Significant transactions with Government - Related Entities
LandCorp transacts with a number of Western Australian State Government authorities, agencies and government trading enterprises. Total annual transactions that are deemed significant include:
2018 2017 $’000 $’000
Receipts Entity Nature Project management and Department of Education 3,044 - consultancy fees Contaminated sites management grant Department of Fire and Emergency Services 264 -
Department of Water and Environment Contaminated sites management grant 187 110 Regulation Department of Communities Secondment of LandCorp sta® 69 - Department of Jobs, Tourism, Science and Project management and 110 - Innovation consultancy fees Project management and Department of Planning, Lands and Heritage 2,810 4,325 consultancy fees Department of Premier and Cabinet Secondment of LandCorp sta® 155 - Department of Primary Industries and Project management and 164 - Regional Development consultancy fees Project management and Department of State Development - 600 consultancy fees Grants to fund Operating subsidy projects Department of Treasury 56,992 75,729 (recurrent) Grants to fund Operating subsidy projects Department of Treasury 192 - (capital) Fremantle Port Authority Property lease and on costs 121 - Project management and Great Southern Development Commission - 88 consultancy fees Project management and Kimberley Development Commission - 118 consultancy fees Metropolitan Redevelopment Authority Interest 293 356 South Metropolitan TAFE Property lease and on costs 411 - Water Corporation of WA Rent - 1,261 Western Australian Treasury Corporation Borrowings 60,000 76,250 Western Power Corporation Refund of fees and costs paid 238 -
[GRI Standards 102-45] FINANCIAL STATEMENTS - NOTES TO THE FINANCIAL STATEMENTS | 148 2018 2017 $’000 $’000
Note 20 Related party disclosures (continued)
Payments Entity Nature Commissioner of State Revenue Stamp Duty (371) (3,800) Department of Biodiversity, Conservation and Provision of landscaping consultancy and (97) - Attractions services Department of Biodiversity, Conservation and ROS management fees (EPBC conditions) (136) - Attractions Department of Communities Return of surplus funding (1,688) - Department of Finance Land Tax (42,970) (47,476) Department of Finance (State Fleet) Motor Vehicle Fleet (186) (215) Department of Fire and Emergency Services Emergency Services Levy (637) (698) Department of Planning, Lands and Heritage Acquisition of land (4,010) (15,196) Department of Primary Industries and Return of surplus project funding received (1,765) - Regional Development and rent Project management and Department of Sport and Recreation - (95) consultancy fees Department of Treasury Dividends (53,779) (43,219) Local Government Rates Equivalent Tax Department of Treasury (12,912) (22,940) and Income Tax Government Employees Superannuation Superannuation (1,905) (1,811) Board (GESB) Insurance Commission of Western Australia Insurance Fees (841) (720) (Riskcover) O§ce of Auditor General Auditing costs (195) (182) Public Transport Authority Fitout related to redevelopment project (161) - Regional Power Corporation (Horizon Power) Electricity Services (91) (388) Synergy Electricity Services (54) (162) Water Corporation of WA Water Services and Rates (2,707) (2,400) Western Australian Land Information Valuation services and licencing fees (243) (84) Authority (Landgate) Western Australian Treasury Corporation Repayment of Borrowings (26,000) (41,250) Western Australian Treasury Corporation Interest and fees on borrowings (4,951) (4,729) Western Power Corporation Electrical Connections and Services (1,490) (1,042)
[GRI Standards 102-45] FINANCIAL STATEMENTS - NOTES TO THE FINANCIAL STATEMENTS | 149 2018 2017 $’000 $’000
Note 20 Related party disclosures (continued)
Balances outstanding at the year end: Assets Entity Nature Department of Biodiversity, Conservation Prepayment for Environmental o®set land 847 1,369 and Attractions Project management and Department of Education 286 - Consultancy fees Department of Planning, Lands and Heritage Deposit for Land 21,173 21,173 Department of Planning, Lands and Heritage Receivable for Project costs 340 1,023 Metropolitan Redevelopment Authority Receivable for Project costs 13,825 11,610 Deposit for Land Acquisiton based on WA Country Health Service 2,318 2,318 land exchange Construction of road to access Water Water Corporation of WA 475 - Corporation asset
Liabilities Accrued payment for profit share in Department of Education (4,499) (4,499) Projects Government Employees Superannuation Accrued Superannuation (76) (69) Board (GESB) O§ce of Auditor General Accrued payment for Audit Fee (137) (144) Project works on LandCorp Water Corporation of WA (80) - development site Western Australian Treasury Corporation Accrued interest & Borrowings (220,206) (185,951)
[GRI Standards 102-45] FINANCIAL STATEMENTS - NOTES TO THE FINANCIAL STATEMENTS | 150 Note 21 Remuneration of auditors
Remuneration paid or payable to the Auditor General in respect of the Audit fees during the year:
2018 2017 $’000 $’000 Audit of the financial report 149 144 Audit of Royalty for Regions reports 29 24 178 168
Note 22 Contingent liabilities
The directors are of the opinion that LandCorp has no contingent liabilities.
Note 23 Dividends
Recognised amounts Normal dividend 17,250 17,250 Special dividends: - AMC Common User Facility 15,400 13,290 - 5% E§ciency saving 1,049 1,049 - Additional e§ciency saving 780 780 - Reduction due to interest expense from additional borrowings for (1,300) (1,300) the 2012-13 special dividend - Special Dividend paid in relation to VenuesWest contribution 2,800 1,400 - Special Dividend paid in relation to St John’s Wood Claremont (Area G) 17,800 - - Special Dividend paid in relation to Mungari Industrial Estate and - 10,750 WAPC land swap) 53,779 43,219
On 1 May 2017 the LandCorp Board recommended to the Minister a final dividend payment of $2,800,000 as a VenuesWest Contribution. This was paid in September 2017.
On 26 June 2017 the LandCorp Board recommended the payment of a special dividend totalling $17,800,000 for the Town of Cambridge in relation to the St John’s Wood Project in Mount Claremont (Area G). This dividend was paid in September 2017.
At the August 2017 Board meeting, the Board approved the recommendation to the Minister of a final dividend for 2016/17 financial year to be paid in 2017/18 of $33,179,000. This dividend was paid in June 2018.
[GRI Standards 102-45] FINANCIAL STATEMENTS - NOTES TO THE FINANCIAL STATEMENTS | 151 2018 2017 $'000 $'000 Note 24 Leasing arrangements
(a) Operating lease commitments
LandCorp has its o§ce premises and its motor vehicle fleet under non-cancellable operating leases. Total commitments for future lease payments not provided for in the accounts are as follows:
No later than 1 year 2,968 2,863 Later than 1 year and not later than 5 years 12,181 11,588 Later than 5 years 56 4,460 15,205 18,911
(b) Operating lease receivables
LandCorp holds certain land and buildings for strategic purposes only. Such holdings are rentable properties and are treated as operating lease receivables. Total future lease receivables are as follows:
No later than 1 year 21,442 20,242 Later than 1 year and not later than 5 years 77,399 78,216 Later than 5 years 326,857 355,842 425,698 454,300
Leases are negotiated with terms between two to five years with the exception of a number of contracts with terms of 50 years. Rental income is subject to future assessment based on the terms of the lease arrangements. Outstanding operating leases are based on existing rates and do not include the extension periods under option.
Note 25 - Subsequent events
Western Australia’s two land development agencies, LandCorp and the Metropolitan Redevelopment Authority (MRA), will be merged progressively over two years as part of the State Government’s ongoing bid to drive e§ciencies and improve outcomes for land development and housing a®ordability. State Cabinet approved the Minister for Transport, Planning, Lands Rita Sa§oti initiating the major land development agency reform process. The new land agency will assume responsibility for metropolitan planning activities and have a sharper focus on delivering economic opportunities in regional WA. Across the metropolitan area and regions, the new agency will aim to strengthen communities through increased housing choice, better transport connectivity and enhancing the built and natural environment. The new land development agency will also include the creation of the Industrial Lands Authority arm to streamline job- creating projects that will strengthen the WA economy. The Industrial Lands Authority is a McGowan Government election commitment aimed at removing barriers to investment and identifying new opportunities for industry innovation and expansion. An administrative merger is set to be finalised by 2019 and will involve the following elements: • The appointment of common directors to both boards beginning 1 January 2018; • The creation of a standing subcommittee of the joint Board to manage the transition of the two organisations into a single entity; • The appointment of a single CEO to take e®ect on or before 1 January 2019; and • A review of all projects, assets and liabilities to enable an optimisation of organisational and project e§ciencies. Future tranches of the land agency reform process will investigate how the Department of Communities housing development arm could potentially be integrated. Any necessary legislative changes will follow.
[GRI Standards 102-45] FINANCIAL STATEMENTS - NOTES TO THE FINANCIAL STATEMENTS | 152 SECTION 10
GRI content index 10
GRI CONTENT INDEX 153 SECTION 10
GRI content index LandCorp has not undertaken assurance for the non-financial The Global Reporting Initiative information within this report. Once (GRI) is an international non-profit we have an improved process organisation that pioneered and and system in place for capturing developed a globally adopted information we will seek assurance for sustainability reporting standards. our sustainability performance. We have chosen to develop our Sustainability Report using the GRI Standards (‘in accordance’ – core) to report on our social, environmental and economic performance. This report has been produced using the GRI Standards and Construction and Real Estate Sector Supplement.
GRI CONTENT INDEX 154 SECTION HOLDING PLACE FOR GRI GRI Content Index MATERIALITHY CHECK 10 GENERAL STANDARD DISCLOSURES
General standard External disclosure Disclosure title Page number or link Assurance GRI 102 Statement from senior 02 Message from the chairman p. 6; 03 Message from the chief executive p.7. – decision-maker 102-1 Name of the organisation 1.1 Who we are p. 4 – 102-2 Activities, brands, products, 01 Welcome p. 4; 1.1 Who we are p. 4; 5.4 Projects p. 13. – and services 102-3 Location of headquarters 5.4 Projects p. 13. – 102-4 Location of operations 5.4 Projects p. 13. – 102-5 Ownership and legal form 1.1 Who we are p. 4 – 102-6 Markets served 1.1 Who we are p. 4; 5.1 Vision p. 12; 6.2 Value chain p. 23-25; 7.1 Integrated project outcomes p. 27-38. – 102-7 Scale of the organisation 7.1 Integrated project outcomes p. 27-38; Economic development p. 39-42; Staff diversity and wellbeing - our workforce p. 87 – 102-8 Information on employees and Staff diversity and wellbeing - our workforce p. 87 – other workers 102-41 Collective bargaining agreements Staff diversity and wellbeing - Collective bargaining agreements p. 93 – 102-9 Supply chain 6.2 Value chain p. 23-25 – 102-10 Significant changes to the No significant changes to the organisation and its supply chain. – organisation and its supply chain 102-11 Precautionary Principle LandCorp website - our approach - sustainable development and climate change: https://www.landcorp.com.au/Our-Work/our-approach/Sustainable- – or approach Development/ 102-12 External initiatives Stakeholder and customer satisfaction p. 71; Industry assessment and accreditation p. 79 – 102-13 Membership of associations Membership of associations p. 79; Waterwise Development Program p. 47; Smart waste p. 56. – 102-45 Entities included in the 09 Financial statements p. 117 - 152. – consolidated financial statements 102-46 Defining report content and 06 Defining the content of this report p. 15-22 – topic Boundaries 102-47 List of material topics Materiality matrix p. 21 – 103-1 Explanation of the material Materiality matrix p. 21, Value chain p. 23-25, Information on each material issue is defined thorughout the report and on LandCorp's website: https://www. – topic and its Boundary landcorp.com.au/Our-Work/our-approach/ 102-48 Restatements of information No restatements of information. – 102-49 Changes in reporting No significant changes in reporting. – 102-40 List of stakeholder groups 6.1 Approach - Principle one stakeholder inclusiveness p. 16-18, Stakeholder interests and concerns p. 17-18 – 102-42 Identifying and selecting 6.1 Approach - Principle one stakeholder inclusiveness p. 16-18 – stakeholders 102-43 Approach to stakeholder 6.1 Approach - Principle one stakeholder inclusiveness p. 16-18; Engaging and building local communities p. 57-61 – engagement 102-44 Key topics and concerns raised 6.1 Approach - Principle one stakeholder inclusiveness p. 16-18; Materiality matrix p. 21; Engaging and building local communities p. 57-61 – 102-50 Reporting period 1.2 About this report p. 4 – 102-51 Date of most recent report 1.2 About this report p. 4; LandCorp website publications page - annual reports and sustainability reports: https://www.landcorp.com.au/News/Publications/ – 102-52 Reporting cycle 1.2 About this report p. 4 – 102-53 Contact point for questions Feedback or questions on our Annual Report p. 164 – regarding the report 102-54 Claims of reporting in accordance Cover - Creating tomorrows communities p.1; 1.2 About this report p. 4; Global Reporting Initiative Contnt Index p. 154 with the GRI Standards
GRI CONTENT INDEX 155 SECTION GENERAL STANDARD DISCLOSURES 10 General standard External disclosure Disclosure title Page number or link Assurance 102-55 GRI content index GRI Contnt Index p. 154-162 – 102-56 External assurance GRI Contnt Index p. 154-162 – 102-18 Governance structure 08 Corporate governance p. 94-112 – 102-16 Values, principles, standards, and 5.2 Values p. 12, 08 Corporate governance p. 94-112, Anti-corruption p.84 norms of behavior SPECIFIC STANDARD DISCLOSURES
Specific standard Identified Reason(s) for Explanation for External disclosure Disclosure title Page number or link omissions omissions omissions(s) Assurance
Category: Economic
Aspect: Economic Performance 103-1 Explanation of the material topic 06 Defining the content of this report p. 15-24; Value chain p. 23-25, Integrated – and its Boundary project delivery p. 27-38, Economic development p. 39-43, LandCorp website - our approach - sustainable development - economic development: https://www.landcorp. com.au/Our-Work/our-approach/Sustainable-Development/ 103-2 The management approach and its 06 Defining the content of this report p. 15-24; Value chain p. 23-25, Integrated – components project delivery p. 27-38, Economic development p. 39-43, LandCorp website - our approach - sustainable development - economic development: https://www. landcorp.com.au/Our-Work/our-approach/Sustainable-Development/ 103-3 Evaluation of the 06 Defining the content of this report p. 15-24; Value chain p. 23-25, Integrated – management approach project delivery p. 27-38, Economic development p. 39-43, LandCorp website - our approach - sustainable development - economic development: https://www. landcorp.com.au/Our-Work/our-approach/Sustainable-Development/ 201-1 Direct economic value generated Financial resilience p. 82-83 – and distributed 201-2 Financial implications and other LandCorp website - our approach - sustainable development - climate change: – risks and opportunities due to https://www.landcorp.com.au/Our-Work/our-approach/Sustainable-Development/ climate change 201-3 Defined benefit plan obligations Staff diversity and wellbeing - Superannuation contributions p. 93 – and other retirement plans 201-4 Financial assistance received from Financial resilience - Operating subsidy arrangements p. 83 – government Aspect: indirect economic impacts 103-1 Explanation of the material topic 06 Defining the content of this report p. 15-24; Value chain p. 23-25; Economic – and its Boundary development p. 39-43; LandCorp website - our approach - sustainable development - economic development: https://www.landcorp.com.au/Our-Work/ our-approach/Sustainable-Development/ 103-2 The management approach and its 06 Defining the content of this report p. 15-24; Value chain p. 23-25; Economic – components development p. 39-43; LandCorp website - our approach - sustainable development - economic development: https://www.landcorp.com.au/Our-Work/ our-approach/Sustainable-Development/ 103-3 Evaluation of the management Economic development p. 39-43; LandCorp website - our approach - sustainable – approach development - economic development: https://www.landcorp.com.au/Our-Work/our- approach/Sustainable-Development/ 203-1 Infrastructure investments and Economic development p. 39-43 – services supported 203-2 Significant indirect economic impacts Economic development p. 39-43 –
GRI CONTENT INDEX 156 SECTION
SPECIFIC STANDARD DISCLOSURES 10 Specific standard Identified Reason(s) for Explanation for External disclosure Disclosure title Page number or link omissions omissions omissions(s) Assurance
Category: Economic
Aspect: Procurement Practices 103-1 Explanation of the material topic 06 Defining the content of this report p. 15-24; Value chain p. 23-25, Supply chain – and its Boundary p. 71-73; LandCorp website - our approach - relationships and partnerships - supply chain sustainability: https://www.landcorp.com.au/Our-Work/our-approach/ Relationships-and-Partnerships/ 103-2 The management approach and its 06 Defining the content of this report p. 15-24; Value chain p. 23-25, Supply chain – components p. 71-73; LandCorp website - our approach - relationships and partnerships - supply chain sustainability: https://www.landcorp.com.au/Our-Work/our-approach/ Relationships-and-Partnerships/ 103-3 Evaluation of the management Supply chain p. 71-73; LandCorp website - our approach - relationships and – approach partnerships - supply chain sustainability: https://www.landcorp.com.au/Our-Work/ our-approach/Relationships-and-Partnerships/ 204-1 Proportion of spending on Supply chain - procuring locally p. 72 – local suppliers Category: Environmental
Aspect: Energy 103-1 Explanation of the material topic Approach - defining the content of our report p. 15-24; Value chain p. 23-25; – and its Boundary Energy p. 48-51, LandCorp website - our approach - sustainable development - energy: https://www.landcorp.com.au/Our-Work/our-approach/Sustainable- Development/ 103-2 The management approach and its Approach - defining the content of our report p. 15-24; Value chain p. 23-25; – components Energy p. 48-51, LandCorp website - our approach - sustainable development - energy: https://www.landcorp.com.au/Our-Work/our-approach/Sustainable- Development/ 103-3 Evaluation of the management Energy p. 48-51, LandCorp website - our approach - sustainable development – approach - energy: https://www.landcorp.com.au/Our-Work/our-approach/Sustainable- Development/ 302-5 Reductions in energy requirements Energy p. 48-51 – of products and services Category: Environmental
Aspect: Water 103-1 Explanation of the material topic 06 Defining the content of this report p. 15-24, Value chain p. 23-25; Water p. 44- – and its Boundary 47, LandCorp website - our approach - sustainable development - water: https:// www.landcorp.com.au/Our-Work/our-approach/Sustainable-Development/ 103-2 The management approach and 06 Defining the content of this report p. 15-24; Value chain p. 23-25, Environmental – its components impact - water p. 44-47, LandCorp website - our approach - sustainable development - energy: https://www.landcorp.com.au/Our-Work/our-approach/Sustainable- Development/ 103-3 Evaluation of the management Environmental impact - water p. 44-47, LandCorp website - our approach - – approach sustainable development - water: https://www.landcorp.com.au/Our-Work/our- approach/Sustainable-Development/ 303-3 Water recycled and reused Environmental impact - water p. 44-47 – Aspect: Biodiversity 103-1 Explanation of the material topic 06 Defining the content of this report p. 15-24, Value chain p. 23-25, Biodiversity – and its Boundary p. 43-44, LandCorp website - our approach - sustainable development - biodiversity: https://www.landcorp.com.au/Our-Work/our-approach/Sustainable- Development/
GRI CONTENT INDEX 157 SECTION 10 SPECIFIC STANDARD DISCLOSURES
Specific standard Identified Reason(s) for Explanation for External disclosure Disclosure title Page number or link omissions omissions omissions(s) Assurance
Category: Environmental
Aspect: Biodiversity 103-2 The management approach and 06 Defining the content of this report p. 15-24, Value chain p. 23-25, Biodiversity p. – its components 43-44, LandCorp website - our approach - sustainable development - biodiversity: https://www.landcorp.com.au/Our-Work/our-approach/Sustainable-Development/ 103-3 Evaluation of the management Biodiversity p. 43-44, LandCorp website - our approach - sustainable development – approach - biodiversity: https://www.landcorp.com.au/Our-Work/our-approach/Sustainable- Development/ 304-1 Operational sites owned, leased, Biodiversity p. 43-44 – managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas 304-2 Significant impacts of activities, Biodiversity p. 43-44; LandCorp website - our approach - sustainable development – products, and services - biodiversity: https://www.landcorp.com.au/Our-Work/our-approach/Sustainable- on biodiversity Development/ 304-3 Habitats protected or restored Biodiversity p. 43-44 – 304-4 IUCN Red List species and Biodiversity p. 43-44 – national conservation list species with habitats in areas affected by operations Aspect: Emissions 103-1 Explanation of the material topic 06 Defining the content of this report p. 15-24; Value chain p. 23-25, Energy p. – and its Boundary 48-51, LandCorp website - our approach - sustainable development - energy and climate change: https://www.landcorp.com.au/Our-Work/our-approach/Sustainable- Development/ 103-2 The management approach and 06 Defining the content of this report p. 15-24; Value chain p. 23-25, Energy p. – its components 48-51, LandCorp website - our approach - sustainable development - energy and climate change: https://www.landcorp.com.au/Our-Work/our-approach/ Sustainable-Development/ 103-3 Evaluation of the management Energy p. 48-51, LandCorp website - our approach - sustainable development – approach - energy and climate change: https://www.landcorp.com.au/Our-Work/our- approach/Sustainable-Development/ 305-5 Reduction of GHG emissions Energy p. 48-51 This has been reported Some Currently information is not – for some projects, information readily available or collected however energy reduction is currently across all of our projects. strategies are not always unavailable LandCorp is working towards communicated in terms of standardising measures across GHG emission reduction projects. equivalents. Aspect: Effluents And Waste 103-1 Explanation of the material topic 06 Defining the content of this report p. 15-24; Value chain p. 23-25, Waste p. 52-56, – and its Boundary LandCorp website - our approach - sustainable development - waste: https://www. landcorp.com.au/Our-Work/our-approach/Sustainable-Development/ 103-2 The management approach and 06 Defining the content of this report p. 15-24; Value chain p. 23-25, Waste p. 52-56, – its components LandCorp website - our approach - sustainable development - waste: https://www. landcorp.com.au/Our-Work/our-approach/Sustainable-Development/ 103-3 Evaluation of the management Waste p. 52-56, LandCorp website - our approach - sustainable development – approach - waste: https://www.landcorp.com.au/Our-Work/our-approach/Sustainable- Development/
GRI CONTENT INDEX 158 SECTION
SPECIFIC STANDARD DISCLOSURES 10 Specific standard Identified Reason(s) for Explanation for External disclosure Disclosure title Page number or link omissions omissions omissions(s) Assurance
Category: Environmental
Aspect: Effluents And Waste 306-2 Waste by type and Waste p. 52-56 This has been reported Some Currently information is not – disposal method for some projects information is readily available or collected currently across all of our projects unavailable for total weight of waste by type and disposal method. Information is provided for asbestos contaminated soil waste. Future project Waste Management Strategies will address this gap with project demolition and construction waste and recycling targets to capture information. 306-4 Transport of hazardous waste No hazardouc waste was exported, imported, or treated by LandCorp. – Waste p. 53 Aspect: Compliance 103-1 Explanation of the material topic 06 Defining the content of this report p. 15-24, Value chain p. 23-25, Biodiversity p. – and its Boundary 43-44, LandCorp website - our approach - sustainable development - biodiversity: https://www.landcorp.com.au/Our-Work/our-approach/Sustainable-Development/ 103-2 The management approach and 06 Defining the content of this report p. 15-24, Value chain p. 23-25, Biodiversity – its components p. 43-44, LandCorp website - our approach - sustainable development - biodiversity: https://www.landcorp.com.au/Our-Work/our-approach/Sustainable-Development/ 103-3 Evaluation of the management Biodiversity p. 43-44, LandCorp website - our approach - sustainable development – approach - biodiversity: https://www.landcorp.com.au/Our-Work/our-approach/Sustainable- Development/ 307-1 Non-compliance with Biodiversity p. 43-44 – environmental laws and regulations Aspect: Supplier Environmental Assessment 103-1 Explanation of the material topic 06 Defining the content of this report p. 15-24; Value chain p. 23-25, Supply chain – and its Boundary p. 71-73; LandCorp website - our approach - relationships and partnerships - supply chain sustainability: https://www.landcorp.com.au/Our-Work/our-approach/ Relationships-and-Partnerships/ Category: Environmental
Aspect: Supplier Environmental Assessment 103-2 The management approach and 06 Defining the content of this report p. 15-24; Value chain p. 23-25, Supply chain – its components p. 71-73; LandCorp website - our approach - relationships and partnerships - supply chain sustainability: https://www.landcorp.com.au/Our-Work/our-approach/ Relationships-and-Partnerships/ 103-3 Evaluation of the management Supply chain p. 71-73, LandCorp website - our approach - relationships and – approach partnerships - supply chain: https://www.landcorp.com.au/Our-Work/our-approach/ Relationships-and-Partnerships/ 308-1 New suppliers that were screened Supply chain p. 71-73 – using environmental criteria
GRI CONTENT INDEX 159 SECTION
SPECIFIC STANDARD DISCLOSURES 10 Specific standard Identified Reason(s) for Explanation for External disclosure Disclosure title Page number or link omissions omissions omissions(s) Assurance
Category: Social
Sub-Category: Labor Practices And Decent Work
Aspect: Employment 103-1 Explanation of the material topic 06 Defining the content of this report p. 15-24; Value chain p. 23-25, Staff diversity – and its Boundary and wellbeing p. 87-93, LandCorp website - our approach - people: https://www. landcorp.com.au/Our-Work/our-approach/People/ 103-2 The management approach and 06 Defining the content of this report p. 15-24; Value chain p. 23-25, Staff diversity – its components and wellbeing p. 87-93, LandCorp website - our approach - people: https://www. landcorp.com.au/Our-Work/our-approach/People/ 103-3 Evaluation of the management Staff diversity and wellbeing p. 87-93, LandCorp website - our approach - people: – approach https://www.landcorp.com.au/Our-Work/our-approach/People/ 401-1 New employee hires and Staff diversity and wellbeing - employee turnover and retention p. 88; and New – employee turnover employment hire p. 88 401-3 Parental leave Staff diversity and wellbeing - parental leave p. 90 – Aspect: Occupational Health And Safety 103-1 Explanation of the material topic 06 Defining the content of this report p. 15-24; Value chain p. 23-25; Staff diversity – and its Boundary and wellbeing - learning and development p. 91-92; LandCorp website - our approach - people: https://www.landcorp.com.au/Our-Work/our-approach/People/ 103-2 The management approach and 06 Defining the content of this report p. 15-24; Value chain p. 23-25; Staff diversity – its components and wellbeing - learning and development p. 91-92; LandCorp website - our approach - people: https://www.landcorp.com.au/Our-Work/our-approach/People/ 103-3 Evaluation of the management Staff diversity and wellbeing - learning and development p. 91-92; LandCorp – approach website - our approach - people: https://www.landcorp.com.au/Our-Work/our- approach/People/ 403-1 kers representation in formal joint Staff diversity and wellbeing - learning and development p. 91-92 – management–worker health and safety committees 403-2 Types of injury and rates of injury, Staff diversity and wellbeing - learning and development p. 91-92 – occupational diseases, lost days, and absenteeism, and number of work-related fatalities Aspect: Training And Education 103-1 Explanation of the material topic 06 Defining the content of this report p. 15-24; Value chain p. 23-25, Staff diversity – and its Boundary and wellbeing - Diversity and Gender Diversity p. 89, LandCorp website - our approach - people: https://www.landcorp.com.au/Our-Work/our-approach/People/ 103-2 The management approach and its 06 Defining the content of this report p. 15-24; Value chain p. 23-25, Staff diversity – components and wellbeing - Diversity and Gender Diversity p. 89, LandCorp website - our approach - people: https://www.landcorp.com.au/Our-Work/our-approach/People/ 103-3 Evaluation of the management Staff diversity and wellbeing - Diversity and Gender Diversity p. 89, LandCorp – approach website - our approach - people: https://www.landcorp.com.au/Our-Work/our- approach/People/ 404-1 Average hours of training per year Staff diversity and wellbeing - Diversity and Gender Diversity p. 89 – per employee 404-2 Programs for upgrading Staff diversity and wellbeing - Diversity and Gender Diversity p. 89 – employee skills and transition assistance programs 404-3 Percentage of employees Staff diversity and wellbeing - Performance Management - p.93 – receiving regular performance and career development reviews
GRI CONTENT INDEX 160 SECTION
SPECIFIC STANDARD DISCLOSURES 10 Specific standard Identified Reason(s) for Explanation for External disclosure Disclosure title Page number or link omissions omissions omissions(s) Assurance
Category: Social
Sub-Category: Labor Practices And Decent Work
Aspect: Diversity And Equal Opportunity 103-1 Explanation of the material topic 06 Defining the content of this report p. 15-24; Value chain p. 23-25, Staff diversity – and its Boundary and wellbeing - Diversity and Gender Equality p. 89, LandCorp website - our approach - people: https://www.landcorp.com.au/Our-Work/our-approach/People/ 103-2 The management approach and 06 Defining the content of this report p. 15-24; Value chain p. 23-25, Staff diversity – its components and wellbeing - Diversity and Gender Equality p. 89, LandCorp website - our approach - people: https://www.landcorp.com.au/Our-Work/our-approach/People/ 103-3 Evaluation of the management Staff diversity and wellbeing - Diversity and Gender Equality p. 89, LandCorp website – approach - our approach - people: https://www.landcorp.com.au/Our-Work/our-approach/ People/ 405-1 Diversity of governance bodies Staff diversity and wellbeing - Diversity and Gender Equality p. 89 – and employees 405-2 Ratio of basic salary and SStaff diversity and wellbeing - Diversity and Gender Equality p. 89 – remuneration of women to men Aspect: Supplier Social Assessment 103-1 Explanation of the material topic 06 Defining the content of this report p. 15-24; Value chain p. 23-25; Supply chain – and its Boundary p. 71-73; LandCorp website - our approach - relationships and partnerships - supply chain: https://www.landcorp.com.au/Our-Work/our-approach/Relationships-and- Partnerships/ 103-2 The management approach and 06 Defining the content of this report p. 15-24; Value chain p. 23-25; Supply chain p. – its components 71-73; LandCorp website - our approach - relationships and partnerships - supply chain: https://www.landcorp.com.au/Our-Work/our-approach/Relationships-and- Partnerships/ 103-3 Evaluation of the management Supply chain p. 71-73; LandCorp website - our approach - relationships and – approach partnerships - supply chain: https://www.landcorp.com.au/Our-Work/our-approach/ Relationships-and-Partnerships/ 414-1 New suppliers that were screened Supply chain p. 71-73 – using social criteria Sub-Category: Society "
Aspect: Local Communities 103-1 Explanation of the material topic 06 Defining the content of this report p. 15-24; Value chain p. 23-25; Engaging and – and its Boundary building local communities p. 57-62; LandCorp website - our approach - sustainable development - community wellbeing: https://www.landcorp.com.au/Our-Work/our- approach/Sustainable-Development/ 103-2 The management approach and its 06 Defining the content of this report p. 15-24; Value chain p. 23-25; Engaging and – components building local communities p. 57-62; LandCorp website - our approach - sustainable development - community wellbeing: https://www.landcorp.com.au/Our-Work/our- approach/Sustainable-Development/ 103-3 Evaluation of the Engaging and building local communities p. 57-62, LandCorp website - our – management approach approach - sustainable development - community wellbeing: https://www.landcorp. com.au/Our-Work/our-approach/Sustainable-Development/ 413-1 Operations with local community Engaging and building local communities p. 57-62 – engagement, impact assessments, and development programs 413-2 Operations with significant actual Value chain p. 23-25; Engaging and building local communities p. 57-62 – and potential negative impacts on local communities
GRI CONTENT INDEX 161 SECTION
SPECIFIC STANDARD DISCLOSURES 10 Specific standard Identified Reason(s) for Explanation for External disclosure Disclosure title Page number or link omissions omissions omissions(s) Assurance
Category: Social
Sub-Category: Society
Aspect: Anti-Corruption 103-1 Explanation of the material topic 06 Defining the content of this report p. 15-24, Value chain p. 23-25, Anti-corruption – and its Boundary - p. 84, LandCorp website - our approach - governance: https://www.landcorp. com.au/Our-Work/our-approach/Governance/ 103-2 The management approach and 06 Defining the content of this report p. 15-24, Value chain p. 23-25, Anti-corruption – its components - p. 84, LandCorp website - our approach - governance: https://www.landcorp. com.au/Our-Work/our-approach/Governance/ 103-3 Evaluation of the Anti-corruption - p. 84, LandCorp website - our approach - governance: https:// – management approach www.landcorp.com.au/Our-Work/our-approach/Governance/ 205-1 Operations assessed for risks Anti-corruption - p. 84 – related to corruption 205-2 Communication and training Anti-corruption - p. 84 – about anti-corruption policies and procedures 205-3 Confirmed incidents of corruption No confirmed incidents of corruption in 2017-18 - p. 84 – and actions taken Sector Supplement:
Construction and real estate sector supplement G4-CRE5 Land remediation and land in need Waste - Land contamination and remediation p. 52-53 – of remediation G4-CRE6 Compliance with internationally Occupational safety and health p. 85-86 – recognised health and safety management system G4-CRE7 Number of persons voluntarily and Engaging and building local communities - community hardship p. 65 – inoluntarily displaced or resettled G4-CRE8 Type and number of sustainability Industry assessment and accreditation p. 79 – certification, rating and labeling schemes G4-SO1 Engagement approach Engaging and building local communities p. 58, LandCorp website - our approach – throughout lifecycle - sustainable development - community wellbeing: https://www.landcorp.com.au/ Our-Work/our-approach/Sustainable-Development/ LandCorp website - Stakeholder and community engagement: https://www.landcorp.com.au/Our-Work/Stakeholder-Community-Engagement/
GRI CONTENT INDEX 162 GRI CONTENT INDEX 163 Feedback or questions on our Annual and Sustainability Report?
We invite your feedback and queries on any aspect of our Annual and Sustainability Report and performance. To provide your comments or ask a question, please contact us:
Sustainability Strategy Coordinator Phone: 9482 7559 Email: [email protected]
Disclaimer: The information contained in this document is in good faith; however, neither LandCorp nor any of its directors, agents or employees give any warranty of accuracy nor accepts any liability as a result of a reliance upon the information, advice, statement or opinion contained in this document. This disclaimer is subject to any contrary legislative provisions. © LandCorp 2018. LC 4728 09/18