SHAPING OUR STATE’S FUTURE
Annual and Sustainability Report 2019-2020
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 1 CONTENTS
ACKNOWLEDGEMENT OF COUNTRY DevelopmentWA acknowledges the Traditional Custodians throughout Western Australia and their continuing connection to land, water and culture. We pay our respects to all members of Aboriginal communities and cultures throughout the State, to the communities we work with, and to their Elders past and present.
Cover: Australian Marine Complex, Henderson
2 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 SECTION ONE – INTRODUCTION AND WELCOME 4 SECTION FOUR - PERFORMANCE 34 1.1 ABOUT DEVELOPMENTWA 5 4.1 SUSTAINABLE COMMUNITIES 1.2 ABOUT THIS REPORT 6 – METROPOLITAN CITIES AND CENTRES 35 1.3 MESSAGE FROM THE CHAIRPERSON 8 4.2 PROSPEROUS INDUSTRY 44 1.4 MESSAGE FROM THE CHIEF EXECUTIVE 10 4.3 RESILIENT REGIONS 50 1.5 PERFORMANCE HIGHLIGHTS 12 4.4 A HIGHLY CAPABLE, INNOVATIVE ORGANISATION 58
SECTION TWO – PURPOSE 14 SECTION FIVE – GOVERNANCE 114 2.1 VISION AND VALUES 15 2.2 OPERATING ENVIRONMENT 16 SECTION SIX – FINANCIAL STATEMENTS 132 2.3 GOVERNMENT PRIORITIES AND STRATEGIC DIRECTION 17 SECTION SEVEN – METROPOLITAN REDEVELOPMENT 2.4 AREAS OF ACTIVITY 19 AUTHORITY COMPLIANCE REPORT 176 2.5 HOW WE DELIVER OUR PROJECTS 21 SECTION EIGHT – GRI CONTENT INDEX 242 SECTION THREE – SIGNIFICANT ISSUES 24 3.1 PROCESS FOR IDENTIFYING SIGNIFICANT ISSUES 25
Yagan Square, Perth CBD
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 3 SECTION ONE INTRODUCTION AND WELCOME
Bunuru Festival, Yagan Square, Perth CBD
4 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 1.1 ABOUT DEVELOPMENTWA
On 23 September 2019, the Western Australian Land Authority (WALA – formerly trading as LandCorp) and the Metropolitan Redevelopment Authority (MRA) merged to become DevelopmentWA.
The Western Australian Land approach to developing plans for the The MRA was created with the Authority (WALA), is a publicly owned future to set the new entity up for purpose of delivering redevelopment State Government Trading Enterprise success. DevelopmentWA is managed projects of strategic significance in (GTE) established under the Western via an independent Board of Directors the Perth metropolitan area. A key Australian Land Authority Act 1992. and reports to Parliament though requirement of the MRA legislation The Metropolitan Redevelopment the Minister for Finance; Aboriginal is to plan, undertake, promote and Authority (MRA) was established Affairs; Lands. coordinate the development of pursuant to the Metropolitan land in Redevelopment Areas in A key requirement of the WALA Redevelopment Authority Act 2011, the metropolitan region. The MRA legislation is to act in accordance beginning operations in January 2012 Act specifies Redevelopment Area with commercial principles: which as an amalgamation of four existing objectives, being: to build a sense requires being cost efficient, redevelopment authorities across of place; to promote economic endeavouring to achieve or surpass metropolitan Perth. wellbeing; to promote urban financial targets and ensuring that efficiency; to enhance connectivity; As part of the merger, the no project undertaken is expected to to promote social inclusion; and to Government determined that WALA achieve less than the hurdle rate of enhance environmental integrity. will provide activities and services for return. The WALA Act requires WALA DevelopmentWA, including servicing to provide or promote the provision the MRA functions. Both sets of of land, infrastructure, facilities and legislation (WALA Act and MRA Act) services for the social, economic and are currently still applicable, and this environmental needs of the State. has required a flexible and responsive
Meridian Park, Neerabup
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 5 1.2 ABOUT THIS REPORT
This report presents our performance for the financial year This report has been prepared in accordance with the GRI 1 July 2019 to 30 June 2020 and adheres to the requirements Standards: Core option. Using the GRI Standards as part of set out in the Western Australian Land Authority Act 1992 our annual reporting ensures we assess our performance (WALA Act) and Metropolitan Redevelopment Authority against globally accepted sustainability reporting Act 2011 (MRA Act). In this report, we have reported principles and measures. our performance based on DevelopmentWA, MRA and Guidance provided in the Government of Western Australia LandCorp activities. Where relevant, we have identified the Public Sector Commission Annual Reporting Framework has appropriate organisation to which the activities relate. also been used, particularly in the preparation of Section Five ‘Governance’ and Section Six ‘Financial Statements’.
6 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 Scarborough Beach
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 7 1.3 MESSAGE FROM THE CHAIRPERSON
New ways of working were quickly established, and our technology and systems adapted to the challenges of working from home.
What was especially pleasing was the way in which The Annual Report for 2019-20 tells the story of a colleagues at DevelopmentWA looked out for each remarkable year defined by the challenges of the COVID other and shared the highs and lows of the new pandemic. It is also the first time that DevelopmentWA working environment. provides a consolidated report on its role and contribution The Board is deeply appreciative of the professional and to the Western Australian community. personal challenges faced by staff at DevelopmentWA At the mid-year it seemed likely that our year end narrative during the past few months and is especially grateful for would be principally about our response to difficult trading the commitment and focus shown by all to the job we do on conditions and would provide an outline our progress on behalf of Government. the task of bringing LandCorp and the MRA together to And while COVID-19 took us all on a journey of discovery like form DevelopmentWA. At that time, we were making good no other, it was business as usual behind the scenes. We progress with a range of key projects and were seeing moved swiftly to guarantee our project commitments to some encouraging, if early, signs of economic recovery. Government remained on track. Our workforce had co-located just prior to Christmas, a This 2019-20 report provides a very complete account of new corporate identity had been launched and Government progress and achievements to date including milestones had approved a process for consolidation of the met at Subi East, the East Perth Power Station, Ocean two organisations. Reef Marina, Metronet East, and across the more than Then, from late January the pandemic and its effects 150 state-wide projects which are either in planning or on the global and Australian community increasingly development phase. During the year and notwithstanding dominated the focus of all. Unprecedented public health, the challenges of COVID-19, work on these state-shaping safety and wellbeing measures were implemented. Within projects continued. a few short weeks the pandemic’s consequential effects The report also highlights the appetite the Board has on the economy, business, employment and work practices for innovation in all that we do and celebrates awards were felt by all. and achievements from across the year. It also gives At DevelopmentWA our initial focus was to ensure the appropriate emphasis to the importance we place on safety and wellbeing of the men and women who worked our continuing role with Reconciliation Australia noting for us and to ensure that our roles with our Government the creation of the first DevelopmentWA consolidated and business partners, our tenants, and a very broad range Reconciliation Action Plan. We were assisted in no of community stakeholders adapted to the challenges of small part in this initiative by collaboration with other social distancing and regulated business activity. Government agencies, and the private sector, including many Aboriginal run and managed organisations.
8 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 Despite the challenged economic times, DevelopmentWA Looking forward, we are now deeply engaged with has delivered a financial dividend to Government. the responsibilities that attach to the continuing role Performance this year has been anchored this year by DevelopmentWA will play in recovery projects and stimulus a focus on land for jobs through the Industrial Lands initiatives across the state. Authority (ILA), a specialist division operating within In 2020-21 we will continue our work with Government DevelopmentWA. The ILA now operates more than 90 to support initiatives across renewal, residential and projects across WA and in the past year has unlocked 393 industrial programs as we create brilliant places for hectares of land for future development. people to live, work, visit and do business. We look forward I also wish to acknowledge the role Government has played to working with all of our partners to leverage private in retiring legacy debt from the former MRA. The MRA sector investment as the recovery effort from COVID-19 received a total of $78 million in support from Government gains momentum. in 2019-20, comprising $21.3 million in recurrent funding To close, I would like to acknowledge and sincerely thank for the MRA’s regulatory functions and for project our Minister the Hon. Ben Wyatt in his role as Minister for expenditures and $56.7 million in equity injected to repay Lands and Minister the Hon. Rita Saffioti as Minister for debt. Government has also supported, as part of the Planning and Transport, for their leadership and support for balance sheet consolidation and asset transfer process, a the work of DevelopmentWA. further provision of $211.5 million in 2020-21 for retirement of MRA debt associated with specific land assets. This My personal thanks go to my fellow directors and the latter debt retirement was progressed subsequent to the DevelopmentWA executive, staff and our many private and financial year end and represents substantial progress on a public stakeholders for their support, engagement and foundation element of the Land Agency Reform process. contribution across an unprecedented year.
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 9 1.4 MESSAGE FROM THE CHIEF EXECUTIVE
What a changed world we live and work in as we navigate the Industrial Lands Authority, a specialised industrial focus area challenges arising from the Pandemic. Protecting the health within DevelopmentWA. and safety of our friends and family, and the viability of our At the Australian Marine Complex (AMC), the release of a draft businesses, employment and investments has taken on a Strategic Infrastructure and Land Use Plan for comment whole new level of importance. by the resources, marine and defence industries will serve Having largely escaped the intensity of bushfires to unlock more opportunities to develop and strengthen experienced by Victoria, New South Wales, Queensland our economy. and South Australia, our local market was showing signs of The Plan, a key action of the Western Australian Defence resilience and we were beginning, albeit slowly, to look ahead and Defence Industries Strategic Plan, will guide the AMC’s with cautious optimism. ongoing development as a nationally significant industrial Like many others, we allowed ourselves to believe the area for the defence, marine and resources industries. challenging economic times of the past two years were The AMC has an outstanding record of supporting major behind us. And like many others, we watched and waited as projects across these sectors and we look forward to the biggest pandemic since the 1920’s progressively made its building on that success in the future, to create more jobs for way across the world. Western Australians.
Our approach was always going to be business as usual albeit At Nambeelup near Mandurah, the Peel Business Park will with an altered mindset which required everyone from the house a thriving agri-innovation precinct, powered by its own Board down to be flexible and adapt as quickly as possible. In renewable energy microgrid. hindsight, we are grateful to be located in Western Australia, In the South West, a business register, established ahead a luxury that allowed us to quickly re-focus on the job at hand. of the release of the Bunbury Waterfront Stage Two And while we still had a bit of work to do to finalise merging development tender, will allow local businesses to register the former LandCorp with the Metropolitan Redevelopment their interest in working on this multi-million-dollar project. Authority, we were on the home stretch with the transfer Importantly, it will enable prospective contractors to of people, assets and systems either completed or fast-track the engagement of local workers and material nearing completion. suppliers to complete the foreshore work which involves comprehensive landscaping and site works within Casuarina Many of the benefits of a merged organisation are already Harbour and along Casuarina Drive. being realised as we collaborate on our shared projects and work at a state and local government level, and often As we move into a new reporting year, substantial stimulus in partnership with the private development industry, in packages are being rolled out to generate new opportunities ensuring land for jobs and great places to live, visit and enjoy. for business and homebuyers to take advantage of new housing choices, complemented by commercial and retail As recovery at a state and national level gets underway, I amenity to build thriving communities. am reminded of the important role DevelopmentWA has to play in the WA’s economic recovery efforts and our State State and Federal incentives have already had a positive government and stakeholders will be looking to us to help impact on our metropolitan projects, particularly the create jobs and stimulate growth through our pipeline northern corridor. At the end of this financial year, more than of projects. 130 sales were achieved on the back of the housing stimulus and we anticipate the HomeBuilder National Partnership, to In an already challenged economy, the need for our projects which Western Australia is now a signatory, to provide a good to generate employment and economic recovery outcomes kick-start to financial year 21. has never been more important. Throughout the suburbs of inner metropolitan Perth Close collaboration with the Department of Jobs, Tourism, we are providing a more diverse range of alternative Science and Innovation forms a large part of our commitment housing opportunities in thoughtfully-designed urban to promote and attract business and investment opportunity villages, making the most of our existing infrastructure in in Western Australia. This work is largely undertaken by the established locations.
10 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 The redevelopment of the Subi East precinct serves as one The new building is expected to create an estimated 684 important example. Its revitalisation encompasses the construction jobs, and ultimately contribute to more than 600 former Subiaco Oval and Princess Margaret Hospital sites, research jobs across the Murdoch Activity Centre. is on track and shaping as a fully integrated, mixed-use Stage 1A at Murdoch, being delivered by the Fini Group, environment for communities and residents of all ages. will house Western Australia’s first medihotel, along with It is expected to generate 2,700 jobs during construction an aged care facility, super medical clinic and residential and more than 660 ongoing jobs once fully developed. The accommodation in a precinct featuring commercial, retail, project, which will take shape over the coming 20 years, is food and beverage spaces. also expected to attract some $1 billion in private sector investment with early works beginning in 2021. As an inner- Projects of this calibre will ultimately provide a new level city village, housing will be offered through apartment living of choice and diversity in land for residential housing and and ultimately accommodate more than 4,000 residents business throughout the state. across more than 2,000 dwellings. Pleasingly, Bob Hawke A constant in our support of Western Australia’s residential College welcomed its first students to herald the start of the and business population, and high on our development 2020 school year, utilising Subiaco Oval as its playing fields. agenda, is a commitment to trial and demonstrate different A little further to the east of our city, Australian Capital ways of working. Our Innovation Through Demonstration Equity and Minderoo Group will progress the $218 million program brings industry, research, government and the transformation of the East Perth Power Station precinct, a community sectors together to collaboratively trial and project which will return a premier community destination demonstrate a number of sustainable housing and industry on the banks of the Swan River to the people of Western development innovations. Australia and importantly, support 1,900 much-needed For example, close working relationships with government construction jobs and 1,300 jobs on completion. and the private sector have set new standards at Hamilton At Ocean Reef Marina we reached another significant Hill, White Gum Valley and Fremantle, Alkimos, Broome and milestone with the announcement of the rezoning of 65 Peel Business Park where energy and water saving initiatives hectares of land which will support harbour expansion and are underway to help to preserve our natural resources and generate hundreds of direct jobs when construction begins reduce household and business operating costs. this year. This important project will ultimately feature world- Also important to our development agenda focus is the work class recreation and tourism facilities, cafes and restaurants, we are undertaking to support the Government’s METRONET parks and beaches. precincts in either an advisory or a delivery capacity to help The new urban village at Montario Quarter in Shenton Park deliver good transport links and community connections. will house more than 2,000 residents and at Riverside in We are hands-on in developing the planning framework over the city, 7,000 residents will live in hi-tech, energy efficient METRONET East which encompasses Midland, Bayswater apartments with the river at their doorstep. and Forrestfield project areas. Our planning team has not South of the CBD, residents at Shoreline in North Coogee only led the way in developing these frameworks, but has will soon be living in apartments and townhomes with ocean also approved 180 development applications, expecting views near shopping strips in a community which features to facilitate $184million in private investment. Other key more than 8,000 square metres of landscaped parkland. achievements include adoption of Perth Girls School Design Guidelines and final approval of amendments to Land delivery to help shape our state is well advanced at the Metropolitan Region Scheme to support stage one the emerging Murdoch Health and Knowledge Precinct. On normalisation of project areas in Central Perth, Subiaco completion, the broader Murdoch Activity Centre, comprising and Armadale. Murdoch University, Fiona Stanley and St John of God hospitals, the Harry Perkins Institute of Medical Research There is no denying our world has changed from the one and South Metropolitan TAFE is set to become WA’s next hub we all knew. By embracing the challenge that comes with for jobs and growth and is predicted to deliver up to 35,000 change, I am confident our State will not only respond jobs, homes for 22,000 residents and facilities for up to and rebound, but also lead the way in discovering new and 44,000 students. exciting ways of living and working.
This includes a 9.6 hectare gateway site to house Phase With the support of Ministers Saffioti and Wyatt, the 2 of the Australian National Phenome Centre (ANPC), an DevelopmentWA Board, my Executive team and staff, I can international centre of expertise in metabolic phenotyping, assure our stakeholders that we will be front and centre in ‘One Health’ focussed research laboratories and allied health our commitment to assist this recovery and help shape the clinical placement among other related uses. future of Western Australia.
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 11 1.5 PERFORMANCE HIGHLIGHTS
SUSTAINABLE COMMUNITIES PROSPEROUS INDUSTRY
292.6 68.7% lots sold across hectares under 107 metropolitan Perth developed industrial lots available DevelopmentWA planning sold at an affordable across the State, with 20 general in METRONET precincts. price. industrial lots created.
Secured two leases at Strategic Industrial Areas 68% where industry is expected of lots created in Perth $93 to contribute $446.5M in construction investment and metro area were created in infill developments. 105 permanent jobs during million operations. expected to be invested in built form on lots sold, delivering Launched the 245 full time job equivalents. sustainability 47.2 hectares of general precinct, industrial land sold across the East Village 293 State, predicted to deliver 625 at Knutsford residential dwelling unit jobs during built form construction in Fremantle. equivalents created. and 1,575 jobs ongoing.
RESILIENT REGIONS
lots available for immediate purchase in $ all regions within WA. 6.7 million 1,048 worth of light industrial and commercial lots sold, estimated to support 63.6% $ of lots sold across 45 million Significantly progressed regional WA sold at an in private investment in the Casuarina Drive affordable price. built form, 160 construction redevelopment at jobs and 375 ongoing jobs. Bunbury Waterfront.
12 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 HIGHLY CAPABLE AND INNOVATIVE ORGANISATION Development LAUNCHED Applications DevelopmentWA 180 approved, to a value of $184million 92% residential purchaser satisfaction rating. AWARDS
— WGV won the Community Contribution category in the Five active partnering projects. Australian Business Awards, announced 26 July 2019. — WGV won the Sustainability category in the Australian Business Awards, announced 26 July 2019.
$60.13 million — Scarborough Foreshore (TCL and UDLA) received an in payments to Government. Award for Excellence at the July 2019 Australian Institute of Landscape Architects (WA) awards for parks and $273.6 million open space. in revenue generated. — Yagan Square (Doric Group) won the following awards at the Master Builders Association Awards in July 2019:
• Best Government Building $50-$100 million Two new projects achieved an industry accreditation. • Best Public Building $50 - $100 million • Excellence in Concrete Construction
projects with an active — Allara in Eglinton, won the EnviroDevelopment industry sustainability category in the UDIA Awards for Excellence, announced accreditation. 21 September 2019. 11 — Yagan Square (Aspect Studios, Lyons Architecture and Iredale Pedersen Hook) won the 2019 National % Landscape Architecture Awards for Yagan Square in 89 staff retention. September 2019. — Cool Earth won Excellence in Heating, Ventilation, Cooling & Refrigeration Research award at the Australian projects in Institute of Refrigeration, Air conditioning and Heating our innovation Awards in November 2019. 41 pipeline.
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 13 SECTION TWO PURPOSE
Highland Range, Jane Brook, Stage 1B
14 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 2.1 VISION AND VALUES
2.1.1 VISION DevelopmentWA is “Shaping our State’s Future” HO WE ARE W te Governme he Sta nt’s de is t e have vel A t WA w a uniqu opm ntW hou e ca e e oug nable developmen pa nt pm hr stai ts fo cit ag lo g t su r to y t e e in te m o s nc ev at ea o h y D r cr rro a . pe d w pe O an .
OUR PEOPLE Experienced, highly-skilled and results-focused.
COMPLEX PROJECTS COMMUNITY Plan and deliver FOCUS long-term, challenging Best practice developments. engagement.
SUSTAINABLE COMMUNITIES Developing high quality major projects, transport oriented development, urban regeneration projects and rail station precincts. PROSPEROUS INDUSTRY COLLABORATION COMMERCIALITY Across Government Facilitating economic diversification and jobs growth Act commercially and industry. without compromising W in industrial areas throughout Western Australia. social outcomes.
e
b s O r t RESILIENT REGIONS u i e l l r i r a n c Working with stakeholders across the State n o A to deliver projects which support regional t m g u d economic development and job creation. n p n s p i l a a t r h r t c e a W y e e l h r v i T i s a e INNOVATION ECONOMIC GROWTH I e t f n H v a o is s Through demonstration Creating investment e v . i n r fi v A as a catalyst for and jobs. O f o p e industry change. o n io r t e m d T D t in o r a l e a , s p y v W E e e i l p e GOVERNMENT l n e l h b a t o o E POLICY e a o s p W h p g it m Supporting and t a r li i D delivering Government t o v o e W a c d e n n O policies. ly e , e t O le h s w d po H p g u o fo r eo hi c rk r tfo p a o , g li ur e -f vi ro o e o ar s si wt ns ith e on t a h a ures W , w ti nd s w do olu d e c we s o b reat usin e ess.
2.1.2 VALUES Values are central to our culture, underpinning the way we work, and guiding our relationships with each other and with our partners, stakeholders and customers. Our current values are a combination of the previous values of LandCorp and the MRA, as below:
COLLABORATE ACHIEVE RESPECT ADAPT
LISTEN LEAD COMMUNICATE INNOVATE
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 15 2.2 OPERATING ENVIRONMENT
The 2019-20 financial year has been challenging for individuals, businesses and communities across the globe. The outbreak of COVID-19, and the steps taken to slow the spread of the virus, has resulted in a deteriorated global economic conditions. Compared to Global Financial Crisis when recovery was focused on encouraging people to go out and spend more, with COVID-19 recovery, the task is to keep people at home, pausing economic activity in many industries to keep people safe, while also minimising the job and businesses impact.
Education, tourism and retail sectors have been heavily impacted in WA. Travel restrictions (including intrastate), border closures (international students), and weak consumer confidence being the key factors. Manufacturing activity has slowed, although some manufacturers have been able to readjust their operations to produce personal protective equipment.
The pipeline of residential and commercial construction work has been impacted, driven by a drop in consumer, business confidence and financial difficulties. While schedules for public works are largely unaffected as the State plans to go ahead with committed construction projects (e.g. METRONET and road projects), other private Tree planting at Montario Quarter, sector works have been reduced. Federal and State Shenton Park Government have committed to future projects that will assist in creating jobs for those displaced by the downturn.
The most significant driver of new residential dwelling construction, population growth, remained low over 2019- 20 and is expected to be low into 2020-21. Migration to Australia has been significantly reduced due to COVID-19, and is unlikely to recover for at least 12 months. In the short to medium term, State and Federal Government incentives will work to bring forward new housing demand stimulating residential construction.
16 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 2.3 GOVERNMENT PRIORITIES AND STRATEGIC DIRECTION 2.3.1 STRATEGIC OBJECTIVES Our corporate strategy is focused on achieving outcomes The below table shows how our strategy is aligned to against four Strategic Objectives which drive operational the focus areas outlined in the Government of Western priorities and activities across the business in the Australia’s ‘Our Priorities’ which was released in February short to medium term, to build a unique contribution to 2019. The performance section (section four) of this report Western Australia. also identifies where our performance aligns to the priority areas outlined by the Government of Western Australia.
ALIGNMENT TO GOVERNMENT OF WESTERN DEVELOPMENTWA’S STRATEGIC OBJECTIVES AUSTRALIA ‘OUR PRIORITIES’
WHAT WE DELIVER FOR WESTERN AUSTRALIA
1. Sustainable Communities A strong economy • Developing high quality major projects, transport oriented development, urban regeneration projects and rail station precincts. A bright future
2. Prosperous Industry A liveable environment • Facilitating economic diversification and jobs growth in industrial areas throughout Western Australia. A safer community 3. Resilient Regions • Working with stakeholders across the State to deliver Aboriginal wellbeing projects which support regional economic development and job creation. Regional prosperity
SUPPORTING AND ENABLING OUR DELIVERY
4. A highly capable and innovative organisation A strong economy • High capability and capacity through solid planning, commercial and financial disciplines, an excellent workforce, robust systems, and strong stakeholder and A bright future community support. A liveable environment • Creating a culture of innovation that is creative, collaborative, solutions-focused and pursues continuous improvement. A safer community
• Demonstrating innovative outcomes in our developments that provide leadership in overcoming industry challenges Aboriginal wellbeing and pursuing new opportunities. Regional prosperity
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 17 2.3.2 FUTURE DIRECTION – GOVERNMENT REFORM With the formation of DevelopmentWA, a number of To achieve its commitment to efficient and effective outcomes have been realised including: service delivery, in November 2017 the Western Australian • Strengthened Board, governance model (including Government approved a number of Government land consolidation of internal audit functions). agency reforms that included the merger of LandCorp and the Metropolitan Redevelopment Authority (MRA). • Application of a single project Business Case methodology (and delivery governance). In 2019-20 the land agency reforms achieved a number of significant milestones including LandCorp and the • Integration of major project planning and delivery. Metropolitan Redevelopment Authority coming together to • Streamlined procurement approach. form DevelopmentWA in September 2019, and the agencies • Coordinated release of strategic sites to the market. co-locating in one head office in December 2019. • Refinement of contract negotiation and administration The formation of DevelopmentWA builds on the strengths processes. of its predecessors, LandCorp and the Metropolitan Redevelopment Authority. It has enabled the integration • Improving customer service delivery and facilitation of of planning and project delivery on major Government development proposals. priority major projects including Subiaco East, METRONET • Formation of a single executive team to strategically East, Alkimos City Centre and other Central Perth projects, lead and manage business units. including the redevelopment of the East Perth Power Station site. It also facilitated the establishment of the • Consolidating fiscal management, Budget submissions Industrial Land Authority within the corporate structure of and Treasury engagement. DevelopmentWA. • Restructuring of Balance Sheets and approach to debt parameters.
• Integration of business systems and processes.
• Unifying the approach to staff training and development.
• Activating Industry and stakeholder engagement.
• Consolidated approach to marketing and communications.
In November 2019, the Government announced its intention to structurally separate the functions of the Housing Authority, with social housing and other non- commercial functions remaining within the Department of Communities, and the land development and related commercial functions being merged with DevelopmentWA.
A Steering Committee and Working Group were immediately formed and work began on identifying relevant projects and commercial functions and undertaking planning and due diligence. In March 2020, this work was deferred as the Government focused resources on responding to the COVID-19 pandemic.
Premier Mark McGowan and Patrick Gorman MP at East Perth Power Station
18 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 2.4 AREAS OF ACTIVITY
2.4.1 SUSTAINABLE COMMUNITIES 2.4.2 PROSPEROUS INDUSTRY – METROPOLITAN CITIES AND CENTRES Commitment Commitment Our commitment across all our metropolitan, regional and Our projects contribute to the delivery of METRONET industrial portfolios is to deliver projects that support precincts, while also supporting job creation throughout the State Government policy objectives of growing the Perth. Our commitment in metropolitan Perth is to State’s economy, attracting and facilitating new business deliver residential land supply, urban regeneration and investment in the State, and creating new jobs for WA’s revitalisation where opportunities for development are growing population. We do this through the land and constrained. New and revitalised spaces are created infrastructure development planning, construction and next to existing infrastructure to enrich metropolitan release. We also do this by supporting and encouraging the communities and help the State achieve infill targets. creation and growth of business on our land. Our industrial program has the most significant focus on job creation. The Alignment to Government priorities Industrial Lands Authority (ILA) runs this program and takes Our metropolitan activities support the Government’s a long term and strategic approach to meeting Western priority for a liveable environment where people can Australia’s industrial land supply needs. easily connect to where they live, work and play and Alignment to Government priorities where the natural environment is sustained to support quality of life for future generations. We do this through Encouraging and facilitating job creation through our the delivery of quality transport oriented development, projects supports the State Government’s plan for jobs, urban regeneration and infill projects, and through our especially during COVID-19 recovery. The creation of the commitment to biodiversity and waste reduction. ILA was a State Government commitment and it plays an important role in removing barriers to investment and Challenges and opportunities facilitating innovation, economic diversification and In metropolitan Perth, DevelopmentWA faced significant jobs growth in industrial areas and technology precincts challenges during 2019-20. The most significant throughout Western Australia. constraints on performance included the impact of Challenges and opportunities COVID-19, but also weak economic conditions, low consumer confidence, tighter lending conditions and low During 2019-20, DevelopmentWA’s performance was population growth. Opportunities in the metropolitan area challenged by the impact of COVID-19, and generally included supporting the delivery of METRONET precincts, weak economic and business conditions, and therefore redevelopment projects, delivering greater density in infill a comparatively low demand for land generally. development precincts and leveraging innovation projects Opportunities included developing strong relationships to improve cost of living outcomes for customers. In with Government and private sector stakeholders and 2020-21, we will remain focused on delivering METRONET establishing strategic priorities and a program of work to precincts and more transit-oriented housing in line with the achieve its objectives, in particular for the ILA. Economic Government’s “Our Priorities” initiative. conditions in the coming year are likely to remain subdued. The ILA will focus on preparing general and strategic industrial land to meet future requirements, supporting the management of WA’s Technology Parks, and understanding and delivering opportunities for economic diversification and growth. As part of this, DevelopmentWA will support the development of Defence industries at the Australian Marine Complex. More broadly, DevelopmentWA will focus on delivering further jobs and business investment across all projects, including through regional areas, the metropolitan region and in activity centres.
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 19 2.4.3 RESILIENT REGIONS Commitment Our commitment in WA’s regions is to grow and revitalise cities and towns through the supply of residential land and infrastructure. We also help strengthen communities by creating vibrant places for people to live and socialise, while also investing in new spaces for economic activity, job creation and growth. Our projects help keep regional communities strong and thriving through the strategic development of great places for business and people.
Alignment to Government priorities DevelopmentWA has been active in the Regions for many years. Over that time, the Government has asked DevelopmentWA to undertake a range of priorities, initially town land supply, followed by Super Towns and Regional Cities, Pilbara Cities, and large-scale infrastructure projects such as the Ord Expansion Project.
Our projects can be found right across the State, from the Kimberley region to the Great Southern. We work in partnership with regional development commissions, communities and other stakeholders to make Western Australia’s regional towns and cities great places to live and work.
Challenges and opportunities Throughout 2019-20, DevelopmentWA’s regional performance remained challenged by weak conditions across almost all regional land markets in Australia. Regional opportunities included the delivery of Government priority transformational projects including Bunbury Waterfront and Peel Business Park, Nambeelup. For 2020-21, it remains unclear what the level of regional activity will be post COVID-19, but it is likely to continue to remain subdued. DevelopmentWA will focus on continuing the delivery of priority projects and on ensuring that we are in a strong position to respond to new demand and support the growth of regional industries and communities.
Artist impressions for illustrative purposes only.
Western Australia’s Food Innovation Precinct, Peel Business Park. Image courtesy of Shire of Murray.
20 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 2.5 HOW WE DELIVER OUR PROJECTS
2.5.1 SUSTAINABLE DEVELOPMENT APPROACH Social inclusion The Western Australian Land Authority Act requires • To engage with the community to provide opportunities DevelopmentWA to take account of and balance social, for them to positively influence development outcomes. economic and environmental outcomes. Formerly LandCorp • To create communities that are safe, healthy and had adopted four elements (design excellence, community enjoyable places to visit, live and work, with access to wellbeing, economic health and environmental responsibility) diverse and affordable housing. as its framework for achieving sustainability outcomes. • To support community infrastructure and activities and The Metropolitan Redevelopment Authority Act & Regulations opportunities for visitors and residents to socialise. prescribe six Redevelopment Area objectives (economic wellbeing, environmental integrity, social inclusion, sense • To work with Aboriginal people, communities and other of place, urban efficiency, and connectivity) which must stakeholders toward reconciliation efforts. be taken into account for Redevelopment Areas and has Design excellence helped drive the achievement of sustainability outcomes. • To build a sense of place by supporting high-quality Strategically DevelopmentWA is well placed to continue urban design, heritage protection, public art and cultural its efforts to deliver sustainability, with both former activities that respond to the environment, climate and agencies focusing on and achieving positive sustainability lifestyle. outcomes. In the second half of 2019, the former • To promote urban efficiency through infrastructure and sustainability framework and requirements were combined buildings, the mix of land use and facilitating a critical into a new ‘DevelopmentWA Sustainable Development mass of population and employment. Outcomes’ framework. This framework is applicable to all of DevelopmentWA’s projects and has been included in the • To enhance connectivity and reduce the need to travel Strategic Development Plan for 2020-21 to 2024-25. by supporting development aimed at well-developed places that support walking, cycling and public transit. DevelopmentWA Sustainable Development Outcomes • Deliver a wide-range of small and large development Economic wellbeing projects to add value to Government and the Western • To promote economic prosperity and wellbeing by Australian community. supporting development that facilitates investment and provides opportunity for local businesses and emerging industries to satisfy market demand.
Environmental integrity • To encourage ecologically sustainable design.
• To protect and manage natural systems, habitat and biodiversity.
• To respond to climate change and efficiently and innovatively manage energy, water, resources and materials.
Shenton Park students working on Montario Quarter mural
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 21 2.5.2 VALUE CHAIN 02 Definition We are involved in each stage of a land and infrastructure Detailed level business case planning. project, from initial identification of land needs through We define the detailed scope and the opportunity to detailed planning, construction and sales. We tailor projects have to influence our material issues and achieve our approach to deliver a wide-range of small and large Government policy goals. We create detailed plans in development projects to add value to Government and the collaboration with local communities and stakeholders, Western Australian community. In Redevelopment Areas and formalise Government and private sector partnerships we facilitate further value add through the use of strategic and investment. and statutory planning functions. We also add value through We use the expert knowledge of our staff and private our innovation activities. Through our internal focus on sector consultants to refine how we are going to scope and innovation and our Innovation through Demonstration deliver optimal project outcomes. We plan an approach program, we develop new ways of working to provide the which details how negative social, environmental and best projects we can for the Western Australian community. economic impacts will be avoided, mitigated or managed, 01 Project Start up and how positive impacts will be optimised. Ideas, opportunity and initiation. In working with the private sector, we form partnerships that We develop opportunities for strategic projects in often result in further investment in development projects. consultation with Government stakeholders, and in line When we develop detailed concepts and plans, we engage the with Government policy. Working with Government, private sector (and create jobs for consulting professionals). decisions are made on which projects to undertake and we look for opportunities to work together with other parts of 03 Execution Government and the private sector. Civil works and construction. Value is created at this stage through the implementation We undertake due diligence and analysis to understand of our plans and the creation of construction jobs required any potential social, environmental and economic impacts to deliver projects, leading to the physical establishment with a potential project. Based on this understanding we of social, economic and environmental infrastructure to identify the high-level aspiration, objectives and approach, support land delivery. appropriate for each project. We use the expert knowledge of our staff and private sector consultants to identify how Construction activities often include installing power, our projects can deliver optimal social, environmental and water, drainage, road networks, and other infrastructure, economic outcomes. In Redevelopment Areas, we also improving traffic flows and parking, beautifying develop planning frameworks and strategies that help streetscapes and town centres, and providing new facilitate these aspirations and objectives. community facilities.
Land delivery for housing and jobs has an impact on the pre-existing environment. Impacts may include vegetation clearing, disturbance of habitat, soil and natural hydrology. Positive impacts include land decontamination and remediation, rehabilitation, landscaping and replanting. Indirect impacts of construction activities include emissions associated with vehicle movement and waste generation from demolition and construction.
22 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 04 Creating communities Sale and leasing of land, construction of buildings and creating places for living and jobs. At this stage, financial and reputational value is created through the sale and leasing of land and creation of housing, businesses, places for living and jobs. Value is created for our customers through their purchase of land and for the local community through their access to amenities, infrastructure, public space and jobs.
While we are not always involved in built form, we add value by influencing built form outcomes through administration of our planning frameworks, procurement practices, design reviews and design guidelines.
Through our land delivery and planning functions, we influence outcomes related to housing density, affordable and social housing, heritage and cultural recognition, liveability, built form quality, biodiversity and public open space.
Our customers can further affect project outcomes through their own actions. Where we can, we seek to inform and educate customers on sustainable water and energy use, waste avoidance, and sustainable transport choices.
Shoreline, North Coogee
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 23 SECTION THREE SIGNIFICANT ISSUES
Alkimos Beach
24 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 [GRI Disclosures 102-46] 3.1 PROCESS FOR IDENTIFYING SIGNIFICANT ISSUES
Content for this report was directed by the GRI Standard’s materiality process which identified the most significant and important issues to develop strategies, work towards and report performance against. Material issues reflect significant economic, environmental and social impacts. They are important to our business and stakeholders and help prioritise the content of the report. This assists us to communicate our performance to stakeholders in a meaningful way.
The following section outlines our approach to review and develop our material issues for this financial year, and how we responded to the four principles for defining report content within the GRI Standards. In 2019-20 DevelopmentWA undertook specific research to inform the material issues process, including to validate and prioritise the issues. Claisebrook Village, East Perth
[GRI Disclosures 102-46] DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 25 3.1.1 PRINCIPLE ONE – STAKEHOLDER INCLUSIVENESS The stakeholder Inclusiveness principle involves responding to the reasonable expectations and interests of our stakeholders. DevelopmentWA has seven key stakeholder groups, and the key topics and concerns raised by them are tracked through our regular engagement processes. In 2019-20 DevelopmentWA also conducted Stakeholder and Developer Satisfaction Research that has informed our understanding of key topics and concerns of key stakeholders.
Table 1 outlines our seven key stakeholder groups and the key topics and concerns raised by them. The following stakeholder interests and concerns informed the identification of material issues for this report.
Table 1: Stakeholder interests and concerns by stakeholder group Stakeholder interests and concerns by stakeholder group Government (Federal, State and Local government) • Creating jobs, infrastructure and industry investment to assist economic recovery due to the impact of COVID-19.
• Land agency reform to deliver LandCorp and the MRA under a single operating model, and the upcoming merge of the development arm of the Department of Communities with DevelopmentWA.
• Aboriginal Culture, Engagement and Participation.
• The development and supply of land and infrastructure for jobs and housing, including in regional areas with stagnating growth or in decline.
• Collaboration to achieve the Government of Western Australia’s Priorities ‘Sharing Prosperity’.
• Collaboration to achieve land, planning, infrastructure and transport outcomes.
• Good governance and transparency, and efficient commercial and operational management.
• Land for jobs through the Industrial Lands Authority (ILA), which sits within DevelopmentWA.
• Integrated land and transport planning to increase homes close to public transport, and specifically supporting the Government of Western Australia’s METRONET plan to deliver rail projects, connect suburbs, reduce road congestion and meet Perth’s future planning needs.
• Management of social, economic and environmental impacts, delivering outcomes acceptable to the community of Western Australia and demonstrating innovation.
• Streamlining of planning processes and timeframes to support household and business activity and growth.
• Payments to Government. Customers • Land for housing and business opportunities.
• Excellent community infrastructure and outcomes including: affordability; nearby schools; attractive parks and playgrounds; a choice of lot sizes; well-maintained footpaths and cycle ways; and effective design guidelines.
• Well located land for industry and business that is close to markets, suppliers and labour with excellent transport and service infrastructure.
• Streamlining of planning processes and timeframes to support household and business activity and growth.
• A smooth and simple purchase process.
26 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 [GRI Disclosures 102-40, 102-43, 102-44, 102-46] Private sector (development industry, builders, peak bodies and the mining and resource sector) • Lead and assisting in the development of new Government projects to assist economic recovery due to the impact of COVID-19. • The development and supply of land and infrastructure that de-risks and addresses market failure for commerce, industry, employment and housing across Western Australia. • Creation of industrial land supply in areas that are experiencing industrial land supply issues. • Changes as a result of the State Government’s Land Agency Reform. • Streamlining of planning processes and timeframes to support household and business activity and growth. • Working together on project delivery with common goals including safety, financial return, efficiency and flexibility in optimising benefits, risk management and transparency. • Demonstration of leadership in innovation that de-risks ideas and technology to encourage and facilitate replication. Suppliers (consultants, contractors, architects and selling agents) • Lead and assisting in the development of new Government projects to assist economic recovery due to the impact of COVID-19. • Continuation of existing contacts to support business continuity. • Working together on joint projects and programs with common goals. • Transparent processes and effective communication through the procurement process. • Transparency and good governance. • Changes as a result of the State Government’s Land Agency Reform. Communities (local community) • Economic, environmental and social impacts and outcomes from land and infrastructure development. • Transparency and good governance. • Community engagement processes that demonstrate listening and balancing competing interests fairly to achieve positive outcomes. • Addressing impacts of our projects, including environmental impacts, access and connection to amenities, public transport, traffic and parking, and construction impacts such as dust, noise, and heavy vehicle movements. Universities and research institutes • Working together on research, pilots, trials, and initiatives to address common industry and community challenges. • Innovative economic, environmental and social outcomes in land development projects. Employees • Workplace changes due to the impact of COVID-19. • Organisational structural changes that impact job security. • Working on interesting and challenging projects that achieve positive outcomes. • Providing a safe, fair and productive environment with a supportive culture. • Aboriginal Culture, Community and Engagement. • Providing opportunities for learning, development and career progression. • Leading by example in sustainable development and innovation. • Changes due to the State Government’s Land Agency Reform process.
[GRI Disclosures 102-40, 102-43, 102-44, 102-46] DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 27 3.1.2 PRINCIPLE TWO – SUSTAINABILITY CONTEXT • our understanding of stakeholder expectations and The sustainability context principle requires that we interests raised through our normal engagement activities. consider reporting performance in the wider context of Input was also obtained from twenty-seven staff across sustainability. the business. Staff provided advice on the top five The most widely accepted definition for sustainable sustainability topics or issues (social, environmental and development is from Our Common Future (1987), by Harlem economic) that were most important for DevelopmentWA Brundtland who defined sustainable development as to develop strategies for, work towards and monitor development that meets the needs of the present, without its performance against. All responses were reviewed, compromising the ability of future generations to meet grouped, refined to the list of material issues in Table 2. their own needs. DevelopmentWA adopts this definition and DevelopmentWA Executive and Board validated the issues is committed to being a leader in the delivery of land and selected. infrastructure developments that shape the future for all Prioritisation Western Australians. To assist in prioritising the material issues for this financial The United Nations Sustainable Development Goals are year, DevelopmentWA undertook specific stakeholder a universal and international consensus on sustainable research to ensure it accounted for stakeholders development. The Australian Government became a issues and concerns. This research consisted of an signatory to the United Nations 17 Sustainable Development online quantitative survey completed by approximately Goals (SDGs) in September 2015. Table 2 outlines the 100 stakeholders across all our stakeholder groups. alignment of our material issues, discussed in the following Stakeholder were asked to rate how important it is for section, against the SDGs and the WA State Government’s DevelopmentWA to develop strategies for, work towards, ‘Our Priorities’ framework, released in 2019. and report its performance on each of the material topics 3.1.3 PRINCIPLE THREE – MATERIALITY defined in the identification process. The stakeholder The materiality principle requires that we report on significant research provided a rating for the ‘influence of stakeholder economic, environmental and social issues that have the assessment and decisions’ (one of the two materiality potential to impact on our business, and on topics that influence principles). Higher scored (max of 10) represented higher the assessment and decisions of stakeholders. The following significance and importance. section outlines the process we undertook to identify, prioritise The list of material topics were also assessed by a range of and validate a list of material topics to report on in this report. staff from DevelopmentWA’s Strategy and Innovation team to determine relative priority in relation to the ‘significance Identification of economic, environmental, and social impact’ (second A number of activities were undertaken to identify our material of the two materiality principles). Each staff member topics. This included ongoing analysis of the following: undertook a multi-criteria analysis which three equally • social, economic and environmental impacts; weighted criteria. Higher scores (max of 9) represented higher significance and importance. The Strategy and • government regulation, policy and priorities; Innovation staff came together to determine a consensus • DevelopmentWA policy, procedures, risks, strategy and score, which has been utilised in this report. past material topics; The criteria for ‘significance of economic, environmental • material topics and issues of peers; and social impact’ were: • sustainability context including sustainability topics • degree of existing active management through policies covered in the United Nations SDGs and accreditation and processes; tools adopted by the development industry; • reasonable estimates of financial and other risk; and • sustainability context, future challenges, opportunities • reasonable estimates of the extent of economic, and trends; environmental and social impact; • media and press; These stakeholder research and internal assessment • relevant topics and issues within the GRI Standards; and processes resulted in a materiality matrix which plots the relative priority of the material topics, noted in Figure 1.
28 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 [GRI Disclosures 102-43, 102-46] Figure 1: Materiality Matrix
9
4 1 4 2 3 3 1 1 5 2 1 4 3
8 3 4 2
1 2 Influence on stakeholder assessment and decisions and assessment stakeholder on Influence 7 3 4 5 6 7 8 9
Significance of economic, environmental and social impacts
Environmental Integrity Social Inclusion Design Excellence
1 Energy transition 1 Community engagement 1 Design quality
2 Waterwise development 2 Reconciliation
3 Environmental asset protection 3 Affordable housing and living Governance and enhancement 4 Community development and 1 Cohesive culture 4 Waste avoidance and resource activation 2 Staff health and wellbeing recovery 3 Excellent stakeholder 5 Climate Change resilience Economic Wellbeing relationships and partnerships
1 Economic prosperity 4 Ethical and accountable decision making 2 Fiscal reponsibility
3 Sustainable supply chains
4 Innovation
Validation All of the material issues were rated highly. They are all important. The materiality matrix simply illustrates relative priority based on the scoring criteria, and provides an indicative view at a point in time. It must be noted that this research was undertaken during the COVID-19 pandemic, which may have had an influence on results.
The materiality matrix was presented to our Executive team who validated and approved the prioritised materiality matrix for inclusion in this report.
The content of this report attempts to reflect the relative priority outlined in this materiality matrix.
[GRI Disclosures 102-43, 102-44, 102-46, 102-47] DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 29 3.1.4 PRINCIPLE FOUR – COMPLETENESS The completeness principle requires we sufficiently cover our significant economic, environmental and social impacts, and will enable stakeholders to assess our performance
Our performance against each material issue is outlined in section four of this report. For each material issue, we outline a ‘topic boundary’ which described where the impacts occur and our involvement with those impacts. We also identify the alignment to the United Nations Sustainable Development Goals (SDGs) and the focus areas from the Western Australian Government “Our Priorities”.
Table 2: Material issues, alignment to SDGs and WA Government Priorities Alignment to SDGs and Material issue Topic boundary description WA Government Priorities Energy transition Identifying strategies to reduce energy use from fossil fuels and increase the uptake of renewable energy as an important carbon emissions mitigation strategy.
A liveable environment
Waterwise Managing the total water cycle, holistically development considering all aspects of water including water as a shared resource, management of water discharge related impacts, water withdrawal and water consumption. This involves consideration of the use of groundwater for construction purposes, stormwater and drainage management, water sensitive urban design, groundwater for landscape irrigation and techniques to improve potable water use efficiency and reduce demand in built form and encourage alternative sources e.g. stormwater A liveable environment harvesting, greywater and wastewater recycling. Environmental Seeking to minimise negative impacts on the natural asset protection environment, being transparent about the impacts and enhancement we do have and managing and improving outcomes by undertaking remediation of any contamination and seeking to protect and enhance biodiversity and tree canopy wherever possible.
A liveable environment
30 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 [GRI Disclosures 102-46] Waste avoidance Managing demolition and construction impacts and resource to minimise waste to landfill with subsequent recovery environmental and financial (landfill levy) impacts. This involves encouraging or requiring contractors and consultants to use resources efficiently and reduce, reuse and recycle materials during A liveable environment demolition and construction. In some instances we seek to influence the behaviour of residential and business customers to improve operational waste management practices. Climate change Implementation of mitigation strategies to reduce resilience the release of emissions and adaptation strategies to strengthen the resilience of the built environment to respond to future climate change impacts.
A liveable environment
Community Engaging with the community to identify needs, engagement aspirations, expectations and concerns to provide the local community with opportunities to positively influence project outcomes, and to ensure we deliver places that maximise community benefit.
Aboriginal wellbeing
Reconciliation Working with Aboriginal people and communities, and other stakeholders, towards reconciliation efforts that will provide benefit to all and close the gaps that currently exist between Aboriginal and non-Aboriginal peoples.
Aboriginal wellbeing
[GRI Disclosures 102-46] DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 31 Affordable housing Working with others to create opportunities for low and living to moderate income households by supplying land in areas of market failure, delivering affordable land and housing options and implementing affordable living initiatives.
A safer community
Aboriginal wellbeing
Community Creating safe and healthy communities by providing development and places that support physical and mental health activation and wellbeing, creating equitable and inclusive places, and investing in and supporting community development.
A safer community
Aboriginal wellbeing
Design quality Ensuring our planning and urban design decision- making leads to a high quality liveable built environment that is responsive to the environment and community needs.
A liveable environment
Economic The planning and provision of land and prosperity infrastructure to enable industry investment, business growth, trade and job creation.
A strong economy
Regional prosperity
Fiscal Operating in accordance with commercial principles A strong economy responsibility and performing functions in a responsible and cost efficient manner, ensuring we conform to Government approved budgets and targets.
32 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 [GRI Disclosures 102-46] Sustainable supply Using the influence within our supply chains to chains achieve best practice procurement for all goods and services. This involves selecting goods and services that encourage or require suppliers to adopt responsible practices that optimise positive environmental, social and economic outcomes.
Aboriginal wellbeing
Innovation Seeking to demonstrate innovative outcomes, providing leadership in overcoming industry challenges, introducing efficiencies and pursuing new opportunities. This involves creating a culture of innovation and working collaboratively with other parts of Government, private sector businesses and universities or research organisations.
A liveable environment
Cohesive culture Building a cohesive culture, workforce and environment that supports employee health and wellbeing and the delivery of the organisation’s vision and purpose. This involves ensuring the workforce is diverse, inclusive, engaged and has the right skills, expertise and leadership. A safer community
Staff health and Ensuring a healthy and safety conscious workplace wellbeing that protects people and creates productive work environments with high quality standards and outcomes.
A safer community
Excellent Ensuring excellent stakeholder relationships and stakeholder partnerships that are mutually beneficial, establish relationships and respect and common understanding to create partnerships opportunities for co-operation and collaboration.
Aboriginal wellbeing
Ethical and Maintaining a culture of compliance which values accountable ethical behaviour, personal and corporate integrity, decision making accountability, transparency and respect for others.
A strong economy
As part of our commitment to the GRI Standards we disclose our management approach for material issues. These can be found on the DevelopmentWA website (https://developmentwa.com.au/news/publications).
[GRI Disclosures 102-46] DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 33 SECTION FOUR PERFORMANCE
Elizabeth Quay, Perth
34 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 4.1 SUSTAINABLE COMMUNITIES –METROPOLITAN CITIES AND CENTRES
4.1.1 OUR FOCUS DevelopmentWA plays a unique role in the metropolitan area to deliver Government priorities through a diverse range of projects and services. These include key projects such as METRONET station precincts and Redevelopment Areas, such as Subiaco East. DevelopmentWA often partners with the private sector, so its portfolio of existing and future projects delivers high quality metropolitan communities and places. Within the Redevelopment Areas, DevelopmentWA utilises its land use planning function to support delivery of sustainable communities. Due to COVID-19 and the current economic environment, DevelopmentWA has heightened its focus on major urban development and job creation through our metropolitan activities. Parkside Walk, Jolimont
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 35 South Yanchep PERTH METROPOLITAN PROJECTS LEGEND Allara, Eglinton Residential Al imos Vista Al imos each Industrial
Meridian Par , Neerabup
oondalup C D Ocean Reef Marina The uadrangle
lac more Par Estate, Girra heen
Highland Range, ane roo Scarborough ellevue Midland ushmead Subi Centro Subi East Par side Wal , olimont Montario uarter, Shenton Par Waterban Claremont on the Par East Perth Po er Station Springs, Rivervale Eli abeth uay Airport Lin , Forrestfield Perth City Lin Access Par , Forrestfield
nutsford Precinct ensington Mi ed Use Precinct entley Tech Precinct WGV White Gum Valley Coolbellup Coc burn Commercial Par Shoreline, Coc burn Coast Murdoch Health and no ledge Precinct Coc burn Central West Australian Marine Comple Latitude 32 Orion Precinct Forrestdale, usiness Par West Latitude 32 Industry one Crossroads Latitude 32 Flinders Precinct Industrial Seville Grove inana Education Precinct Champion La es elmscott inana Industrial Area Armadale
Roc ingham Industry one Wungong
Roc ingham City Centre
Port ennedy arnup
This plan shows some of the projects in which DevelopmentWA is constructing, planning or investigating future land Mandurah unction releases as of July 2020.
Not all projects have been committed to. Pin arra Industrial Peel usiness Par , Nambeelup
36 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 4.1.2 PERFORMANCE Our Priorities In February 2019, the State Government announced six priority areas for action. One of the targets was to increase the number of homes near public transport by 45 per cent by 2031 from 2018. DevelopmentWA projects that have so far contributed this target, include Claremont on the Park, Cockburn Central, Cockburn Coast, Girrawheen, Jolimont Nursery, Knutsford, Montario Quarter and The Springs.
Land delivery In 2019-20, DevelopmentWA released land for 293 dwelling unit equivalents (DUEs) within the metropolitan area. DUEs provide an indication of how many dwellings can be catered for on the lots we create. Table 3 shows the number of DUEs created from 2015-16 to 2019-20. Key releases included:
• Fremantle Knutsford Precinct (86 DUEs) • Alkimos (95 DUEs)
• Montario Quarter (73 DUEs) • Hamilton Hill (39 DUEs)
Table 3: Metropolitan residential dwelling unit equivalents created from 2015-16 to 2019-20 2019-20 2018-19 2017-18 2016-17 2015-16 293 590 615 887 1726
Economic Impact DevelopmentWA estimates the economic activity created through our metropolitan program activities using the DevelopmentWA / Pracsys Economic Impact model. Economic activity refers to the number of jobs and direct investment at three stages of project delivery – land (lot) development, built form construction and the ongoing activity (applicable to commercial lots). In 2019-20, it is estimated that 245 Full Time Job equivalents will be created during the construction of residential, mixed-use and commercial buildings on lots sold, with expected direct investment of $98 M. The on-going economic activity on the commercial lots, is expected to result in 227 Full Time Job equivalents and annual economic output of $63 M.
DevelopmentWA continues to prepare future mixed use and commercial precincts, METRONET station precincts, and activity centres, where over 20,000 future jobs will be located. These precincts include Subiaco East, Ocean Reef Marina, Forrestfield, Alkimos City Centre, Murdoch Health and Knowledge Precinct, Cockburn Central, Cockburn Central West.
Urban regeneration impacts DevelopmentWA’s delivery of activity centres and urban regeneration supports the State Government’s Directions 2031 and Beyond target for Perth and Peel to deliver 47 per cent of new dwellings via urban infill development. Importantly, this Policy seeks to reduce urban sprawl, maximise the use of existing infrastructure and reduce travel times and costs. Table 4 shows the number and percentage of DevelopmentWA lots created within the metropolitan infill areas.
Table 4: Number and percentage of dwelling unit equivalents created in urban regeneration areas 2019-20 Measure 2019-20 2018-19 2017-18 2016-17 2015-16 Number and percentage of 198 446 874 777 1,547 dwelling unit equivalents created by DevelopmentWA in the Metropolitan region via urban 68% 76% 84% 88% 90% infill developments*
*Note: DevelopmentWA defines urban infill projects as those within the existing urban footprint of the metropolitan area.
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 37 4.1.3 KEY PROJECTS Environmental and geotechnical investigations also Ocean Reef Marina commenced at the Princess Margaret Hospital site ahead of demolition, which is expected to commence in late 2020. Ocean Reef Marina is set to become a world-class waterfront precinct providing recreational, tourism, Alkimos Central residential and boating facilities for local residents and The largest and most significant coastal development visitors alike. DevelopmentWA is developing Ocean Reef north of Perth in 50 years, Alkimos Central has the potential Marina in collaboration with the City of Joondalup. to deliver over 7,000 dwellings and create up to 13,500 jobs. Following approval of the Metropolitan Region Scheme As a transit and pedestrian orientated development, the (MRS) amendment and Gazettal of an Improvement Plan centrally located Alkimos METRONET rail and bus station, late last year, the WA Planning Commission (WAPC) has expected to be complete in 2021, has been a key driver prepared an Improvement Scheme to facilitate delivery of in planning design of Alkimos Central, maximising the the long-awaited Ocean Reef Marina. The Ocean Reef Marina potential use of public transport. Improvement Scheme was released for public comment on The adjacent DevelopmentWA residential communities 19 March 2020, following gazettal of the Improvement Plan of Alkimos Beach and Alkimos Vista will be connected to in December 2019. This public comment period closed on Alkimos Central and METRONET railway station via public 26 June 2020. Construction is expected to begin in the transport links, roads and a series of interconnected bike second half of 2020 and create more than 900 jobs for the and pedestrian pathways. Alkimos Central will deliver an local community. urban coastal community close to recreation, retail and Subiaco East commercial opportunities. The vision for the Subiaco East Project Area is a connected Montario Quarter city village that honours place and living memories; whole Montario Quarter is the redevelopment of the former of life living for all. The Project Area will seek to maximise Shenton Park Rehabilitation Hospital; a 15.8ha site located its highly prominent and accessible location adjacent to within 6km to the Perth Central Business District and 6km West Leederville Train Station, and recognise the area can from the Indian Ocean. The redevelopment includes a support, and not compete with, the traditional Subiaco medium to high-density residential precinct with elements town centre. It is expected that 2,000 new dwellings will be of mixed retail and commercial uses, as well as high delivered at Subiaco East, with 2,700 jobs created during quality community infrastructure. Montario Quarter is a construction and 650 new ongoing jobs in Subiaco once the significant infill development site located strategically project is fully developed and occupied. within the western suburbs of Perth and within 400m of Between July and December 2019, all above ground demolition the Shenton Park train station. Delivering at least 1,100 works at Subiaco Oval were completed, with restoration of the dwellings along a key public transport corridor it supports Subiaco Oval heritage gates due for completion in mid-2020. the Government’s METRONET agenda. The project is Subiaco Oval re-opened to the public on 4 June 2020, with key expected to create 500 ongoing jobs once the project is stakeholders attending the event. fully developed and occupied.
The development of the Subiaco East Master Plan In 2019-20, Montario Quarter opened to the public for the progressed throughout late 2019 into 2020 with a strong first time since the hospitals closure in 2014. As of 2019- focus on engaging the community and key stakeholders 20, all single residential lots in the development have to gather input. DevelopmentWA also set up a pop up been sold. A Landscape Rehabilitation Management Plan information centre placed near Subiaco train station has been approved and two key public art pieces have for residents with questions about the master planning been completed, with planning for the third underway. process. The Draft Master Plan for the Subi East An Expression of Interest has also been released for a Redevelopment Area was released in mid-2020. Community Centre which is intended to open in late 2020.
38 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 METRONET East The Midland Redevelopment Area has been expanded to include METRONET Bayswater and High Wycombe stations to assist the activation of the Forrestfield Airport Line. DevelopmentWA has prepared planning strategies and frameworks for each project area and progressed stakeholder consultation and preparation of the planning framework. Structure planning for each project area has also been progressed with each local authority. A business case is being prepared for the development of Government owned land in Forrestfield.
East Perth Power Station The East Perth Power Station Precinct covers an area of approximately 8.5 hectares bounded by East Parade, Summers Street, the Swan River and Graham Farmer Freeway. The vision for the precinct is for it to become a world-class, contemporary waterfront destination, with an initial focus on the adaptive re-use of the heritage listed Power Station building, and high quality public spaces taking advantage of the natural setting, assets of the site and broader precinct.
In April 2020, on the back of a funding commitment towards site de-constraining works (by Western Power and ATCO Gas), the Government announced the appointment of a Preferred Proponent (Australian Capital Equity and Tattarang) to redevelop the Power Station precinct, including a Priority Development Commitment for the adaptive re-use of the Power Station building and adjoining riverfront land. This long-awaited project is anticipated to create up to 1,900 jobs during construction and more than 1,300 jobs once fully developed and occupied.
East Perth Power Station
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 39 4.1.4 REDEVELOPMENT AREAS DevelopmentWA (previously MRA) has five Redevelopment Areas; Central Perth, Subiaco, Scarborough, Midland and Armadale, created under the Metropolitan Redevelopment Authority Act 2011 (MRA Act). DevelopmentWA is able to utilise its land use planning function to support delivery of sustainable communities in Redevelopment Areas.
DevelopmentWA prepares and administers redevelopment schemes and associated land use planning documents (e.g. Redevelopment Strategy, policies and design guidelines) to facilitate sustainable community outcomes through development undertaken by State and private developers.
Redevelopment Area objectives Sustainable communities are defined within Redevelopment Areas by the Redevelopment Area objectives (as outlined in Metropolitan Redevelopment Authority Regulations 2011 (MRA Regulations));
• to build a sense of place by supporting high-quality urban design, heritage protection, public art and cultural activities that respond to Perth’s environment, climate and lifestyle;
• to promote economic wellbeing by supporting, where appropriate, development that facilitates investment and provides opportunity for local businesses and emerging industries to satisfy market demand;
• to promote urban efficiency through infrastructure and buildings, the mix of land use and facilitating a critical mass of population and employment;
• to enhance connectivity and reduce the need to travel by supporting development aimed at well-designed places that support walking, cycling and public transit;
• to promote social inclusion by encouraging, where appropriate, a diverse range of housing and by supporting community infrastructure and activities and opportunities for visitors and residents to socialise; and
• to enhance environmental integrity by encouraging ecologically sustainable design, resource efficiency, WGV at White Gum Valley recycling, renewable energy and protection of the local ecology.
40 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 Albany Foreshore
Planning services DevelopmentWA (previously MRA) assesses development applications across its Redevelopment Areas. The performance of our land use planning function is assessed via median determination timeframes. In 2019-20, the median determination timeframes for standard development applications were less than the target 90 days in all areas, maintaining efficient processing of these more minor developments. The longer timeframes for major development applications in Central Perth and Subiaco were a result of extensive design review, amendments to plans, and additional information being required. No major development applications were received in Midland or Scarborough in 2019-20. The median determination timeframes are shown in Table 5.
Table 5: Median determination timeframes in Redevelopment Areas 2019-20 Redevelopment Area projects
Statutory Planning Central Perth Subiaco Scarborough Midland Armadale Control Redevelopment Redevelopment Redevelopment Redevelopment Redevelopment Area Area Area Area Area
2019-20 Actual 2019-20 Actual 2019-20 Actual 2019-20 Actual 2019-20 Actual Median determination Standard: 62 Standard: 66 Standard: 67 Standard: 60 Standard: 45 timeframe in days for development applications (standard and major), Major: 203 Major: 154 Major: N/A Major: N/A Major: 88 subdivision applications and structure plans
Urban Efficiency In Redevelopment Areas, DevelopmentWA (previously MRA) seeks to promote urban efficiency through infrastructure and buildings, the mix of land use and facilitating a critical mass of population and employment. A critical mass of population is best measured through the capacity of buildings produced through the Redevelopment Area. DevelopmentWA measures the mix of land use – residential, commercial, retail and industrial in Redevelopment Areas. The land use volume and mix in Redevelopment Areas is shown in Table 6. Slow market conditions and COVID-19 has impacted on approvals across all Redevelopment Areas in 2019-20.
Table 6: Land use volume and mix in Redevelopment Areas 2019-20 Redevelopment Area projects
Land use volume Central Perth Subiaco Scarborough Midland Armadale and mix Redevelopment Redevelopment Redevelopment Redevelopment Redevelopment Area Area Area Area Area
2019-20 Actual 2019-20 Actual 2019-20 Actual 2019-20 Actual 2019-20 Actual Number of approved 83 units 23 units 18 units 0 units 214 units Development Application residential units Square meter of approved 523m² 96m² 0m² 0m² 11,062m² commercial, retail and industrial space
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 41 Social Inclusion In Redevelopment Areas, DevelopmentWA (previously MRA) promotes social inclusion for various demographical groups in Redevelopment Area through diverse and affordable housing and supporting community infrastructure, activities and opportunities for visitors and residents to socialise. A mixture of housing sizes in a Redevelopment Area ensures the needs of various demographic groups of an area are catered. DevelopmentWA uses the diversity of the housing stock delivered in the Redevelopment Area as the best measure to gauge social inclusion. This housing stock diversity is shown in Table 7. As there were no new development approvals in Midland in 2019-20, there are no figures to report.
Table 7: Housing stock diversity in Redevelopment Areas 2019-20 Redevelopment Area projects Housing stock diversity Central Perth Subiaco Scarborough Midland Armadale
Redevelopment Redevelopment Redevelopment Redevelopment Redevelopment Area Area Area Area Area
2019-20 Actual 2019-20 Actual 2019-20 Actual 2019-20 Actual 2019-20 Actual Percentage of approved 1 bed: 4% 1 bed: 26% 1 bed: 16% 1 bed: 0% diverse residential dwellings according to number of bedrooms 2 bed: 65% 2 bed: 30% 2 bed: 67% Nil 2 bed: 0% (1, 2, and 3 bedroom)
3+ bed: 31% 3+ bed: 44% 3+ bed: 17% 3+ bed: 100%
Economic Wellbeing DevelopmentWA (previously MRA) promotes economic wellbeing by supporting, where appropriate, development that facilitates investment and provides opportunities for local businesses and emerging industries to satisfy market demand. DevelopmentWA invests money into Redevelopment Areas to stimulate the investment by other parties into the area. The investment made by private industry and/or non-DevelopmentWA Government bodies into the Redevelopment Area is an indicative measure of the economic activity that has been produced from our investment. DevelopmentWA and non- DevelopmentWA investment into Redevelopment Areas is shown in Table 8.
Table 8: Investment attraction in Redevelopment Areas 2019-20 Redevelopment Area DevelopmentWA investment Investment attraction Total Central Perth $13,895,422 $71,000,000 $84,895,422 Subiaco $0 $8,000,000 $8,000,000 Scarborough $144,294 $4,409,065 $4,553,359 Midland $531,362 $0 $531,362 Armadale $1,546,079 $49,419,598 $50,965,677
* Actual non-DevelopmentWA (MRA) investment utilises investment detailed in the development applications received during 2019-20. DevelopmentWA (MRA) investment is identified via the Development Contribution Plan (DCP). Expenditure on DCPs is dependent on landowner input.
42 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 Connectivity In Redevelopment Areas, DevelopmentWA (previously MRA) seeks to enhance connectivity by supporting development providing well-designed places that support walking, cycling and public transit. DevelopmentWA measures access to public transport options for residents, workers and visitors an important gauge of connectivity within a Redevelopment Area. The number of approved dwellings within a walkable catchment of public transport in Redevelopment Areas is shown in Table 9.
Table 9: Public transit access in Redevelopment Areas 2019-20 Redevelopment Area projects Public transit access Central Perth Subiaco Scarborough Midland Armadale
Redevelopment Redevelopment Redevelopment Redevelopment Redevelopment Area Area Area Area Area
2019-20 Actual 2019-20 Actual 2019-20 Actual 2019-20 Actual 2019-20 Actual Number of approved 83 dwellings 23 dwellings 18 dwellings Nil 25 dwellings dwellings within walkable (100%) (100%) (100%) (11.7%) catchment of public transport nodes/ stops
Environmental Integrity In Redevelopment Areas, DevelopmentWA (previously MRA) seeks to enhance environmental integrity by encouraging ecologically sustainable design, resource efficiency, recycling, renewable energy and protection of the local ecology. DevelopmentWA utilises the Green Star Rating system as a measure of the environmental integrity and efficiency of the built form developed with Redevelopment Areas. The number of development applications received for Green Star rated building in Redevelopment Areas is shown in Table 10.
Table 10: Number of development application received for (4-6) Green star rated (or equivalent) buildings in 2019-20 Redevelopment Area projects Green Star Rating Central Perth Subiaco Scarborough Midland Armadale
Redevelopment Redevelopment Redevelopment Redevelopment Redevelopment Area Area Area Area Area
2019-20 Actual 2019-20 Actual 2019-20 Actual 2019-20 Actual 2019-20 Actual Number of development 4 Star: 0 4 Star: 1 4 Star: 2 4 Star: 0 4 Star: 6 application received for 5 Star: 1 5 Star: 0 5 Star: 0 4 Star: 0 5 Star: 0 (4-6) Green star rated (or equivalent) buildings. 6 Star: 0 6 Star: 0 6 Star: 0 4 Star: 0 6 Star: 0
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 43 4.2 PROSPEROUS INDUSTRY
4.2.1 OUR FOCUS The Committee has four key objectives:
The Industrial Lands Authority (ILA) takes a long term and • remove barriers to industrial land development and strategic approach to meeting Western Australia’s industry investment; land supply needs. This strategic approach will support growing the State’s economy, attracting and facilitating • streamline development approval processes for new business investment and creating new jobs for WA’s industrial land; growing population. Due to COVID-19 and the current • coordinate industry attraction and case management; economic environment, DevelopmentWA has focused on job and creation through our metropolitan and regional programs • provide lead agency collaboration on industrial land as a Government priority. The ILA provides a significant delivery and management. contribution to job creation, and DevelopmentWA is seeking to maximise COVID-19 recovery opportunities through the ILA. The key focus areas over 2019-20 included: 4.2.2 PERFORMANCE • identifying and prioritising infrastructure for unlocking potential of industrial areas across WA; ECONOMIC PROSPERITY The following section outlines our performance for the • developing a Strategic Infrastructure and Land Use Plan, provision of land and infrastructure and redevelopment to and progressing infrastructure upgrades and a Facility enable industry investment, business growth, trade and job Governance and Management Review for the Australian creation. Marine Complex;
Industrial Land Steering Committee • undertaking a strategic assessment and developing a proposal for Kemerton SIA; Recognising the importance of a whole of Government approach to industrial land, in 2018, the Government • undertaking research to identify and unlock industrial established the Industrial Lands Steering Committee (ILSC). land at Collie and support transition of industry; The Committee provides strategic advice and guidance to the • working with City of Kalgoorlie and Goldfields Esperance governing Board and staff of the ILA and reports biannually to Development Commission to unlock industrial land for the Jobs and Economic Diversification Committee of Cabinet. proponents Kalgoorlie Industrial Area; The purpose of the ILSC is to provide improved • monitored the supply and availability of industrial land coordination, advice and action between Government across WA; agencies with industrial development responsibilities, to deliver the Government’s industrial land development • engagement with other parts of Government and the objectives. The ILSC comprises of the Directors General private sector, including receiving deputations from from the Department of Jobs, Tourism, Science and City of Rockingham, City of Kwinana, Western Power, Innovation (Chair); Department of Transport; Department of Infrastructure WA, National Broadband Network, WA Primary Industries and Regional Development; Department Chamber of Commerce and Industry and Kwinana of Planning, Lands and Heritage; and DevelopmentWA staff Industries Council; and (incorporating the ILA). • holding the first regional ILSC meeting in Bunbury in Industrial Lands Authority March 2020. The meeting included an ILSC Strategic Planning session, Stakeholder event and a regular ILSC The Industrial Lands Authority (ILA) was created in 2017 meeting. The ILSC Stakeholder event was attended by as part of a State Government commitment and it plays the Greater Bunbury Local Governments, South-West an important role in removing barriers to investment business associations and other stakeholders from the and facilitating innovation, economic diversification South West Region. and jobs growth in industrial areas and technology parks throughout WA.
44 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 General Industrial Land delivery DevelopmentWA released 20 general industrial lots across Western Australia during 2019-20, as shown in Table 11, and from 2015-16 to 2019-20 in Table 12.
Table 11: General industrial lots created in 2019-20 Project Number of Lots Lot Area Rockingham Lodge Road 9 10.5 Ha Forrestdale BPW 1 11.9 Ha Hope Valley Wattleup 2 4.5 Ha Meridian Park 7 13.0 Ha AMC 1 8.6 Ha TOTAL 20 48.5 Ha
In addition to the lots released during 2019-20, at 30 June 2020 DevelopmentWA had 107 developed industrial lots available across the State. Lots are available at several estates, including Broome Road Industrial, Port Hedland Wedgefield, Karratha Gap Ridge, Geraldton Narngulu, Meridian Park at Neerabup, Flinders Precinct, Crossroads at Forrestdale, Rockingham Industry Zone, Pinjarra Industrial, Peel Business Park and Picton Industrial.
Table 12: General industrial lots created from 2015-16 to 2019-20 General industrial lots created based on land released 2019-20 2018-19 2017-18 2016-17 2015-16 20 35 20 9 36
Strategic Industrial Areas Led by the Department of Jobs, Tourism, Science and Innovation and delivered by the ILA, Strategic Industrial Areas (SIAs) are industrial land areas designed for investment in downstream processing and other heavy or strategic industrial activities.
During 2019-20, two new leases were secured in Strategic Industrial Areas (SIAs). These leases were for East Rockingham Resource Recovery Facility at the Rockingham Industry Zone, and Civmec Holdings (expansion) at the Australian Marine Complex. These are expected to contribute $446.5 million in construction investment, 340 jobs during construction, and 105 permanent jobs during operations.
Kwinana Industrial Area
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 45 ILA economic impacts DevelopmentWA’s Economic Impact Tool has been used for many years to consistently estimate the employment and economic output of industrial and commercial land taken up by the private sector. Using this model, the economic impact of industrial and commercial lots sold can be estimated. The economic impact is measured during the creation of lots, construction of the buildings, and the ongoing activity on the land (operations).
In 2019-20, DevelopmentWA sold 47.2 hectares of general industrial land across its estates. The economic impact is summarised in Table 13.
Table 13: Forecasted ongoing economic impact of general industrial lots sold* in 2019-20 Stage 1 – Creation of vacant lots Direct employment 41 jobs (FTE’s)~ Direct expenditure on lot creation $23.5 M Stage 2 – Construction of Direct employment 625 jobs (FTE’s)~ buildings on the vacant land Construction expenditure (private sector) $178.5 M Stage 3 – Ongoing activity on land Ongoing employment with fully developed 1,575 jobs (FTE’s)~ Average worker productivity (annual)” $345,637 Output when fully developed (annual contribution to GSP) $544M
*Analysis includes ILA general industrial sales, and excludes Strategic Industrial Areas (see Table 14 below).
~FTE’s Full Time Equivalents
“Worker productivity is calculated as a weighted average of the number of employees and average industry output. Average industry output is estimated from the ABS Input-Output Tables. Analysis assumptions are based on 1) 100 per cent of land sold is developable; 2) ‘Employment floor-space ratio’ and ‘floor-space by planning land use category’ and breakdown of building types are all based on ‘Typical Perth Metro Industrial Estate’.
The economic impact of leases initiated in 2019-20 within our Strategic Industrial Areas is outlined in Table 14.
Table 14: Forecast economic impact of strategic industrial lots sold in 2019-20 East Rockingham Resource Civmec Holdings at AMC - Submarine Recovery Facility Project Co Pty Ltd Rescue Services (SRS) facility Number of jobs created – construction 300 40 Number of jobs created – operation 50 55 Project value (construction) $434 M $12.5 M
Note: Data presented is based on information provided by the proponents in their business cases.
46 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 Industry trends research 5. Create flexible common use spaces and infrastructure As part of its research and innovation program, for businesses and industries in the sharing economy. DevelopmentWA identified the need to better understand This will be where business and people can co-locate, the impact of global ‘megatrends’ on industry and industrial form partnerships, and deliver specific projects or land in WA. These global forces of change that impact services. business, economy, society, cultures and individual 6. Increase Western Australian industry areas readiness lives, therefore defining our future world. By improving for greater resource processing, specifically recycling our understanding of future scenarios and their impact and extraction of materials into base products, on industry, DevelopmentWA can improve the strategic commodities and resources ready for reuse as raw direction, project delivery and innovation activities of the material inputs for new locally based industries and industrial program. To guide this research, DevelopmentWA businesses. formed a Peer Review Group which included both Government and private sector organisations. To ensure the research findings and recommendations are embedded, a research implementation ‘framework’ will The research, ‘Global trends and the impact on industry be developed. This framework will assist the ILA team in and industrial land in Western Australia 2020-2040’, was embedding the research, and related opportunities, into finalised in February 2020. The research identified and ILA strategies, project delivery, and innovation through explored eight trends, those being: Transport redefined; demonstration activities. Empowered consumers; Industry 4.0; Sustainable and smart cities; Responsible resource use; Feeding changing 10 Year Industrial Land Strategy appetites; Rise of Asia; and Reimagined future of work. The Industrial Land Steering Committee identified that advising State Government on funding priorities for The research found that in the future, industrial areas industrial land matters should be the key focus for ILSC would need to undergo major change to meet business, for the remainder of 2020. To support Infrastructure industry, and consumer requirements. The future WA’s first State Infrastructure Strategy, currently under requirements of industrial land were found to be: development, the ILSC, through DevelopmentWA, is 1. The future general and light industrial land created to be preparing a 10 Year Industrial Land Strategy. The ILSC’s flexible, blended and intensified with other residential, 10 Year Industrial Land Strategy will inform Infrastructure commercial and industrial land uses, supported by agile WA about the role industrial land plays in delivering planning, infrastructure and delivery systems. jobs and economic growth across the state and, more importantly, key infrastructure requirements for industrial 2. Ensure WA’s Strategic Industrial Areas are able to land state-wide. The Strategy will focus on medium to support economic growth and be competitive in an long term recommendations, and will include four year international marketplace by ensuring they have actions (deliverables) to enable industrial land delivery. adequate land use separation from other sensitive uses. Development WA will lead the preparation of the 10-year 3. Prepare Western Australia’s future workforce by Industrial Land Strategy, with input from all ILSC agencies. increasing the integration of tertiary education and The strategy is expected to be finalised and presented to technical skills training centres within industry areas. Infrastructure WA by the end of 2020. This will support the transition to new industries and new ways businesses will work.
4. Position Western Australian industrial areas as ethical, clean and green through business operations and production. Marketing and communication of industry area estate brands will create providence and marks for Western Australian industrial areas.
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 47 4.2.3 KEY PROJECTS Meridian Park at Neerabup Australian Marine Complex Meridian Park is situated off Flynn Drive within the 1,000ha The Australian Marine Complex (AMC) on Cockburn Sound has Neerabup Industrial Area (NIA), north of Wanneroo, comprising an international reputation as the nation’s leading industrial of 370ha of industrial land. To be developed collaboratively by facility for marine, defence, technology, resource and related the ILA and the City of Wanneroo, Meridian Park is expected to industries. meet the industrial land needs of Perth’s rapidly growing North West Corridor for the next 30 to 50 years. Home to over 150 businesses, the AMC is arranged into four adjoining precincts for fabrication, ship-building, technology In June 2020, the ILA released the next stage of development, and support. Stage 5A, comprising of six service industrial lots. In addition, a 10 Ha general industrial lot within the estate is also being Over 2019-20, the ILA worked closely with the Department released to market. The new land release has unlocked of Jobs, Tourism, Science and Innovation (JTSI) and Defence further employment opportunities during construction, West in support of the Western Australian Defence and creating an expected 149 jobs during the construction of Defence industries Strategic Plan at the AMC. The Strategic buildings and facilities, and 299 ongoing jobs once businesses Plan provides direction across six key strategies to ensure are fully operational. Western Australia is capable of being a key player in the national and international defence industry and a major Forrestdale Business Park contributor to the requirements of Australian Defence. Forrestdale Business Park West (FBPW) is located JTSI and the ILA are also delivering the AMC Strategic approximately 21kms south-east of Perth CBD and 6kms west Infrastructure and Land Use Plan (SILUP). of Armadale Strategic Metropolitan Activity Centre within the City of Armadale. The ILA owns 41ha within the northern In addition to the delivery of the SILUP, three business portion of the FBPW Structure Plan area, called ‘Crossroads cases were prepared by DevelopmentWA for urgent priority Industrial’. infrastructure upgrades. These include: In 2019, the ILA received approval for $27 million to • Three new priority berths for Defence; strategically assemble land holdings, deliver infrastructure, • Vessel transfer path to accommodate Hunter class frigate; and finalise the Development Contribution Scheme (DCP). and Land assembly has commenced, and the DCP has been • Intersection upgrades within AMC. forwarded to the Western Australian Planning Commission (WAPC) for determination. Peel Business Park Nambeelup In May 2020, Western Power purchased a 12ha site from the The Peel Business Park (PBP) will be a modern industrial ILA to construct its new South Metropolitan Depot facility at estate with 1,000 hectares of industrial land, situated about Forrestdale Business Park West. When completed, the depot 9km north-east of the Mandurah city centre and 14km north- is expected to provide employment for over 700 workers. west of the Pinjarra townsite. The PBP provides the Peel Other businesses are expected to collocate in the Park to Region with the capacity to significantly expand the range and support Western Power operations. quality of economic activity within the area. Rockingham Industry Zone An eleven lot first stage was released for pre-sales in December 2018 and trunk infrastructure construction started The Rockingham Industry Zone (RIZ) is situated 40km south in early 2019. The construction of the lots in stage 1 is due to of Perth within the Western Trade Coast. The estate consists be finalised in 2020. In mid-2020, 9 out of 11 lots were under of four zones covering a total area of 450ha. Each zone is offer, and planning for Stage 2 had commenced. designed for specific industrial uses clustered in precincts to allow for the development of synergies within the RIZ and with the world renowned Kwinana Strategic Industrial Area to the North. Precincts are zoned for Environmentally Acceptable Heavy Industry, General Industry, Service Commercial and Light Industry.
48 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 Crossroads Industrial, Forrestdale
In mid-2020, the ILA launched a new precinct, Lodge Road, Technology Precincts at the Rockingham Industry Zone. Nine new fully serviced In the WA State Government ‘Plan for Jobs’ election industrial lots, ranging from 0.4ha to 2.6ha, were released commitments, the State committed to: for pre-sale. The new land release is expected to create 11 new jobs during land and road development, 154 jobs during • Establishing the Industrial Land Authority to remove the construction of buildings and facilities and 310 ongoing barriers to investment and drive development of jobs. Technology Precincts; and • Bringing the WA (Bentley) and Australian Marine Complex Latitude 32 Technology Precincts under the auspices of the Latitude 32 is located 27km south of Perth, between Industrial Land Authority. Fremantle and Rockingham. The zone is considered to be the most strategic general industrial land within the Perth Over 2019-20 the ILA worked closely with the Department and Peel Region. It encompasses an area of approximately of Jobs, Tourism, Science and Innovation to transfer 24 1,400 hectares, with development expected to occur over lots (16 hectares) in Bentley/Kensington and Munster (AMC) the next 50 years. Latitude 32 is part of both the City of into the ILA’s portfolio. The transfer was finalised on 30 Cockburn and the City of Kwinana, and is anticipated it June 2020. As Technology Precincts are a new business will create up to 20,000 jobs and be home to hundreds of for DevelopmentWA, a strategic business approach businesses. Development WA is the largest land holder will be planned and implemented. DevelopmentWA will within the precinct. lead the renewal of Bentley/Kensington, with built form redevelopment of the transferred assets, complemented Latitude 32 provides critical industrial land catering for by 2,000 dwellings and a mixed-use redevelopment of the light and general industries and is expected to be location former Kensington agricultural site (22.7 hectares). Further that support industries for following areas: industry attraction and partnerships will also be central to • Australian Marine Complex – Defence, Oil & Gas, ship expanding DevelopmentWA’s role in Technology Precincts. building; Cockburn Commercial Park • Kwinana and Rockingham Strategic Industrial Areas; In 2019-20, the ILA sold its final lots at Cockburn Commercial and Park in Bibra Lake, completing its 18 year involvement • New Outer-harbour port planned for Cockburn Sound. in the project. Situated only nine kilometers south-east of Fremantle, Cockburn Commercial Park is a landmark Latitude 32 is made up of 6 development cells. The ILA has industrial development. It has played a central role in progressed development at Development Cell 1 (Flinders ensuring an adequate supply of industrial land in Perth’s Precinct) and Development Cell 6A (Orion). Remaining rapidly growing southern corridor. The delivery of the development cells require resource extraction (sand Cockburn Commercial Park unlocked $400million in private and limestone) before development can occur. Resource investment into the construction of industrial buildings, extraction will occur in line with a site levels and contours created approximately 2,619 full time on-going jobs, with strategy created by DevelopmentWA. businesses located there currently having an estimated At Flinders Precinct, the ILA released the last stage via annual output of $841million. pre-sales in late 2019. At Development Cell 6A, Orion, Cockburn Commercial Park includes innovative Design planning has progressed during the 2019-20, with the final Guidelines incorporating mandatory and best practice approval from the WAPC expected in mid-2020. The release sustainability initiatives to ensure the estate is attractive, of the first stage and development works are expected to vibrant, efficient and environmentally sustainable. A variety commence by the end of 2020. of lot sizes has allowed for a rich mix of business types, from large commercial to light and general industrial - creating a diverse business community. A 22ha conservation area of the estate represents approximately 25 per cent of the total land area.
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 49 4.3 RESILIENT REGIONS
4.3.1 OUR FOCUS DevelopmentWA’s regional focus is in line with Government priorities towards servicing of regional cities/centres, divesting surplus inventory, monitoring sub-markets for changes in demand and maintaining capacity to respond to any land supply gaps. DevelopmentWA’s regional presence aims to facilitating regional land development solutions that drive economic growth outcomes.
Lakeside Park, Kununurra
50 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 Areas of operation STATEWIDE OPERATION Kimberley Kimberley Ord-East Kimberley Expansion Project Broome North Waranyjarri Estate Broome North Gurjarra Broome Haze Industrial Broome Road Industrial Port Hedland Kununurra, Lakeside Park Kununurra, Coolibah Estate Karratha Weaber Plain Light Industrial, Kununurra Halls Creek Pilbara
Pilbara Gap Ridge Industrial Estate Gap Ridge Homemaker Centre Hedland Junction Wedgefield Industrial Estate Newman LIA Ashburton North SIA Anketell SIA Gascoyne Karratha City Centre Baynton West Madigan at Baynton West Mid West Newman Town Centre Newman Horizons South Hedland Town Centre Boodarie SIA Burrup SIA Gascoyne Carnarvon NorthWater Goldfields-Esperance Carnarvon Cornish Street Light Industrial – Exmouth Marina Village Exmouth Nimitz Estate Mid West Geraldton, Batavia Coast Marina Wheatbelt Oakajee SIA Narngulu Industrial Estate Various RDAP projects, including: PERTH Green Head Leeman Kalbarri Bunbury Mt Magnet LIA Wheatbelt Nabawa Avon Industrial Park Morawa Various RDAP projects, Cue including: Great Southern Cervantes South West Dalwallinu Goldfields-Esperance Darkan GreenView at Karlkurla Dowerin Karlkurla Rise Hyden Anzac Drive Industrial Estate aMoor Anzac Drive West Narrogin Williams LIA Beverley LIA South West Kellerberrin Shotts SIA Buckingham Way Great Southern LEGEND – Bunbury Koombana North – Bunbury Waterfront – Albany Waterfront – Albany Middleton Beach Residential Collie LIA Emu Point Industrial Kemerton SIA Katanning McLarty site Denmark LIA LIA: Light Industrial Area (South West) Mount Barker Picton Enterprise Park Mirambeena Industrial Estate SIA: Strategic Industrial Area Yerriminup Industrial Area Various RDAP projects, including: – Mixed Use Gnowangerup Head Office Woodanilling Wagin Regional Office
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 51 4.3.2 PERFORMANCE Economic prosperity The following section outlines our performance for the provision of land and infrastructure and redevelopment to create housing and enable industry investment, business growth, trade and job creation.
Land delivery DevelopmentWA estimates the number of jobs created through our regional program based on the number and value of sales. In 2019-20, Development WA sold light industrial and commercial land worth $6.7 million across regional WA. It is estimated that during the construction stage of the built-form on these lots, the development will support 160 construction jobs through $45 million of private investment into built form. In addition, it is estimated that this land will support 375 on going full time jobs once businesses are operational.
There were no new residential lots released in 2019-20 across regional WA with significant residential land stock available on the market (over 1,000 lots available). At 30 June 2020, DevelopmentWA had 1,048 lots available across our regional projects with a market value of over $181 million. The number of regional dwelling unit equivalents (DUEs) created from 2015-16 to 2019-20 are identified in the Table 15 below.
Table 15: Regional residential dwelling unit equivalents created from 2015-16 to 2019-20 Regional residential dwelling unit equivalents created from new land releases 2019-20 2018-19 2017-18 2016-17 2015-16 0 0 315 85 199
Town centre revitalisation The revitalisation of town centres facilitates and supports economic growth through infrastructure upgrades, the creation of a lots, opportunities for business investment and creation of public spaces for community use and events. Table 16 identifies active infrastructure and town centre development projects, where construction activity occurred during 2019-20.
Karratha CBD
52 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 Table 16: Active infrastructure and town centre development projects Project and status Economic outcomes The Karratha City Centre • Project area: 77 hectares.
The project included the creation of an iconic four level • Funding: (a) Karratha City of the North (The Quarter): $66.7 mixed commercial, residential and hotel development with million from the State Government’s Royalties for Regions decked car park (The Quarter) and extensive upgrading of fund and supported by $9 million from DevelopmentWA. (b) city infrastructure in the form of roads, drainage, power Karratha City Centre Infrastructure Project, Stage 1: $74.6 and sewer and provision of development sites for both million from the State Government’s Royalties for Regions residential, commercial and public amenity and the Karratha fund. (c) Karratha City Centre Infrastructure Project, Health Campus. The Quarter precinct opened for business Stage 2: $78.1 million from the State Government’s in June 2016. Stage 1 of the infrastructure project was Royalties for Regions fund. completed in 2018 and Stage 2 completed in March 2019. • Expected population: 50,000 people by 2030+. DevelopmentWA has closed out Stage 1 and 2 with the Department of Primary Industry and Regional Development. • Infrastructure delivery: Realigning road and pedestrian network, upgrading of essential infrastructure services including undergrounding of power supply and delivery of development ready sites for: Karratha Health Campus (opened in September 2018); The Quarter Commercial Building (opened in June 2016); Hotel (construction anticipated to commence in September 2019); Pelago Apartments (opened in 2013); Red Earth Arts Centre (opened in 2018); GP Super Clinic (opened in 2018); City Park (anticipated to be completed in September 2019); Commercial Development (two lots sold and two lots under option).
• Public open space: 1.12 hectares for ‘Welcome Park’ and 1.31 hectares for ‘Red Earth Arts Centre’.
• Dwellings: 46 service-worker apartments at The Quarter.
• Commercial and retail space: 6,056sqm at The Quarter and a further 20,592sqm in the CBD.
• Short term local employment: $22 million in contracts for local jobs.
• Expected ongoing employment: more than 450 people.
• Expected build-out period: 2025-30
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 53 Middleton Beach, Albany
Tambrey Neighbourhood Centre in Karratha • Project area: 9.4 hectares.
A neighbourhood shopping precinct supporting • Funding: $14.7 million funded by DevelopmentWA. the surrounding established residential area and • Infrastructure delivery: delivery of land and infrastructure complementing services and infrastructure provided in the to facilitate a medium density mixed use neighbourhood City Centre. Civil works on the first stage of the Tambrey precinct. Neighbourhood Centre were completed in early June 2019. The shopping centre site settled in November 2019. The • Public open space: upgrades to the drainage reserve Hungry Jacks and Liberty Fuel station construction was (west of the site) are proposed. completed in early 2020. Construction of the shopping • Dwellings and expected population: approximately 165 centre is anticipated to be completed in October 2020. residential dwellings to accommodate up to 410 people.
• Commercial and retail space: 8,500sqm of retail space and 3,000sqm of commercial space (catering to a range of land uses, such as small supermarket, medical centre, specialty shops, food and beverage).
• Expected ongoing employment: 350 (as per Structure Plan) or 150 (as per the Shopping Centre developers forecast for the centre).
• Expected build-out period: 10 years (to 2029). Middleton Beach, infrastructure upgrades, Albany • Project scope: Acquire the land and re-align Flinders Parade; electrical infrastructure upgrades, parking The aim of this part of the project is to complete provision and a contribution to the foreshore infrastructure works that will help support a potential future improvement. activity centre. Land acquisition and Stage 1 (realignment of Flinders Parade) was funded by Government and completed • Funding: State funded (a) $4.8 million for the acquisition early in 2018. Work is progressing to deliver additional State and road realignment, (b) $3.6 million infrastructure funded electrical infrastructure upgrades, parking provision upgrades (electrical infrastructure upgrades, parking and and a contribution to the foreshore improvement, which is a contribution to the foreshore improvement). part of the City of Albany’s Foreshore Upgrade Project. • Infrastructure delivery: Expected to be rolled out in 2020- 2021.
• Potential future economic impact: These infrastructure upgrades will help support a potential future activity centre, comprising 12,926sqm. The site could offer a mix of uses including a hotel, retail, commercial and residential.
54 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 Transforming Bunbury’s Waterfront • Project area: Casuarina Drive, Jetty Road, Casuarina Harbour and Marina. A program of public works, delivered over three stages to convert underutilised waterfront land in Bunbury’s CBD • Funding: Stage 2: $20.7 million from the State into a new precinct that delivers jobs and a wide range of Government Royalties for Regions fund for Stage 2, commercial and tourism opportunities. including Jetty Road ($9.88 million) and Casuarina Drive construction ($10.85 million). Stage 3: $4.25 million from The project is a Government priority, overseen by the the State Government’s Royalties for Regions fund for Bunbury Development Committee, a non-statutory Casuarina Boat Harbour Business Case. committee of the Western Australian Planning Commission until Department of Finance Gateway Review had been • Infrastructure delivery: Stage 2, Jetty Road: Involving performed on the project’s Stage 3 Business case in road reconstruction, increased parking with 164 August 2019. Following this process, the Premier appointed bays, introduction of shared paths and landscaping, Alannah MacTiernan MLA, Minister for Regional construction of a multipurpose building incorporating Development; Agriculture and Food; Ports as responsible public toilets, and improvements to utility services. Stage Minister on 31 October 2019. Minister MacTiernan in turn 2, Casuarina Drive: upgrade involving road reconstruction appointed South West Development Commission as Lead and landscaping. Stage 3, Casuarina Boat Harbour: Agency. business case preparation for the development of the Harbour, which will comprise new breakwaters, marine A Governance Group, chaired by South West Development facilities and a mixed use precinct. The business case Commission and consisting of the CEO South West will confirm what can be achieved including number of Development Commission, the DG of the Department of dwellings, space for commercial/ retail and associated Transport and the CEO DevelopmentWA, was established. ongoing employment. The Group has the authority to resolve any issues and make decisions for the project. The Group nominated • Expected build-out period: Jetty Road 2019-20; Casuarina DevelopmentWA as Project Director for Stage 2B and the Drive 2020-21; Stage 3, marine facilities subject to current scope of Stage 3 of the project. business case.
DevelopmentWA’s role is as Project Director and has no equity in the project.
• Stage 2A, Jetty Road Redevelopment, managed by the Department of Transport: Revetment works (improved causeway rock protection) has been completed. Contract for the remainder of works was awarded in July 2019 and due for completion in October 2020.
• Stage 2B, Casuarina Drive Redevelopment: The project has been divided into 3 phases, prioritising the redevelopment of Casuarina Harbour South with works scheduled to commence in August 2020 and be completed by December 2020. Phases 2 and 3, roadworks and servicer updates and the remaining landscaping, will follow the completion of the first phase.
• Stage 3 Business Case: Business case preparation for the modified scope is scheduled for completion and submission to the Governance Group in October 2020. Koombana Bay, Bunbury
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 55 Regional revitalisation economic impacts Port Hedland Voluntary Buyback Scheme Infrastructure and land development costs in regional In June 2020, the Minister for Regional Development has Western Australia can often be significantly higher than announced the State Government’s in-principle support for in the metropolitan area. This can make private sector the Port Hedland Voluntary Buyback Scheme. The Scheme land development unviable and can restrict land supply for is designed to provide options to property owners in Port economic and community growth. Availability of developed Hedland’s West End whose land is subject to rezoning to land is recognised as a significant factor in enabling social limit residential use. The scheme will be administered by and economic growth in regional areas. the Pilbara Ports Authority and governed by a board of Directors that will include representatives from the Pilbara The Regional Development Assistance Program (RDAP), Development Commission, DevelopmentWA, and the partially funded by the State Government, enables us Department of Planning, Lands and Heritage. It is proposed to develop land and make it available for residential, the scheme would become available in the second half of commercial and industrial purposes, which assists local 2020 and remain open for at least three years. Governments to facilitate growth in areas where this would otherwise be difficult to achieve. Assisting Nyamab Buru Yawuru in Broome
RDAP has 92 projects in 80 towns, covering the length In 2019-20 DevelopmentWA has been assisting the Nyamab and breadth of the State and providing for a range of Buru Yawuru traditional owners in Broome to realise the land uses. In 2019-20, the RDAP program did not add any development potential of their Broome land holdings additional dwelling unit equivalents. At 30 June 2020, 872 through preparing the land (planning and servicing) to for lots are available for immediate purchase in all regions future commercial development. within Western Australia. Over the past decade, RDAP has Karratha Buyers and Occupiers Research successfully delivered land across the State to support In 2020, DevelopmentWA sought to stimulate the Karratha economic activity, with normalised markets emerging in residential building industry in line with the State the larger centres and towns. In 2019-20 the program has Government priorities of economy and jobs, regional received no new applications for development, though prosperity and liveable environments. DevelopmentWA some initial pre-application enquiries have been made. commissioned buyers and occupiers research to Yamatji Nation Southern Regional Agreement understand the number and type of buyers in the market DevelopmentWA assisted with the development of the in Karratha; housing design and locational preferences; draft Geraldton Alternative Settlement Agreement which cost and trade-off preferences. This first phase of this was later finalised as the Yamatji Nation Southern Regional research included an online survey, which was completed Agreement. The Agreement resolves the State Government’s by 305 Karratha residents. The research found that overall native title compensation liability in relation to 48,000 square there was not a significant buyer market in Karratha; that kilometres of land in and around Geraldton. It provides the stakeholders were satisfied with DevelopmentWA’s land Yamatji Nation with a $442 million package of benefits, plus offerings; and that for specific purchaser groups there was approximately 100,000ha of land, that will ensure sustainable potential appetite for smaller housing product. The second social and economic development and self-determination phase of this research was postponed due to the impact of for current and future generations. The innovative package COVID-19, and is due to be completed in 2020-21. includes funding for business development, the transfer of commercial land, joint ventures, tourism opportunities and access to housing properties for sale, leasing or development. Additionally, there are revenue streams from mining, and from leasing or sale of land in DevelopmentWA’s Oakajee Industrial Estate, as well as a Strategic Aboriginal Water Reserve for use or trade.
56 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 4.3.3 KEY PROJECTS Albany Middleton Beach Demonstration Terrace Housing DevelopmentWA has been progressing the creation of an iconic and active beach precinct, offering integrated community, commercial, tourist and civic amenity. The Albany Middleton Beach project has progressed to a detailed design phase and has received Board approval for the construction of six terrace homes to support initial activation. These terrace homes will set a new standard for urban living and introduce a missing housing typology into Albany. The terrace housing will create a sense of density and boulevard style within a village setting while providing for shop top, duel key or expanded living opportunities on the ground floor.
Karratha House & Land Packages DevelopmentWA is working with experienced Pilbara builders on a range of new house and land packages designed specifically for the Madigan estate. Following an Expressions of Interest process conducted in late 2019, six builders are now offering House and Land packages at Madigan estate – Fleetwood, Timik Development, Thomas Building, CWD, Modular WA and H&M Tracey. DevelopmentWA is also preparing an investment product to deliver a Government officers housing solution for Karratha, Pretty Pool, Port Hedland which would be replicable in other regional areas.
The Quarter Apartments, Karratha
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 57 4.4 A HIGHLY CAPABLE, INNOVATIVE ORGANISATION
4.4.1 EXCELLENT STAKEHOLDER engage with the private sector trials and initiatives to address RELATIONSHIPS AND PARTNERSHIPS frequently. This occurs formally common industry and community through initiatives such as challenges. Our focus Expressions of Interest, tenders • Employees: we have quarterly Ensuring excellent stakeholder and joint venture partnerships for briefings for all staff to share relationships and partnerships that the delivery of specific projects, knowledge and organisational are mutually beneficial, establish and informally through strategic milestones, a culture group of respect and common understanding and project oriented meetings staff representatives who seek to create opportunities for co- and industry forums. We also hold to improve workplace culture, operation and collaboration. memberships with key industry and and a regular update and online business associations, with staff Performance opportunity for conversations with represented on several industry the CEO. We also undertake internal Stakeholder engagement committees. surveys to understand staff views. We identify stakeholders by using • Suppliers (consultants, contractors, a variety of methods and tools that • Tenants (Elizabeth Quay and Yagan architects, selling agents): we include analysis of power, interest and Square): we engage tenants engage with our suppliers formally risk. We engage regularly with eight formally through lease management through our procurement and key stakeholder groups as follows: agreements/processes, and contract management processes informally through place activation, • Government (Federal, State and and informally through meetings meetings and site visits. We are also Local Government): we engage and industry forums. working to assist tenants through frequently with all levels of • Communities (local community): in the difficult COVID-19 time and post Government, formally through the locations in which we operate, business recovery. various committees, taskforces, we regularly engage with the local Memorandums of Understanding Customer Relationship Management community through community or partnership agreements and We have a Customer Relationship consultation and engagement informally through strategic and Management (CRM) system that helps tailored to the local community, project oriented meetings and us monitor, manage and capture and through community events. We have State Government public feedback and stakeholder development programs, including and Local Government Stakeholder interactions. It also assists us with events and initiatives that respond Engagement Schedules that are managing several administrative to community needs. We engage reviewed every six months and functions, such as corporate with Aboriginal communities, updated as required. membership, sponsorship, external Traditional Owners and Aboriginal invitations, and representation on • Customers: we engage with Corporations about our projects external industry/ project committees. potential customers through our and to support the development The system helps us to improve our community engagement program and implementation of our understanding of stakeholders and and customers through the Reconciliation Action Plan. We their interests, networks, connections, purchasing process. We survey also engage with the broader and the interactions that are occurring residential customers to monitor community through general across the business. performance during the purchase communication that include process. media releases and promotional The majority of key stakeholders (State information about our projects. and Local Government, private sector • Private sector (development developers and peak bodies) between industry, builders, peak bodies • Universities and research the former agencies of LandCorp and and the mining and resource institutes: we engage with MRA are common to both agencies and sector): we review our private universities and research therefore already in CRM. sector stakeholder engagement institutions formally to work schedules every six months and together on research, pilots,
58 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 [GRI Disclosures 102-40, 102-42, 102-43, 102-44] Scarborough Beach Pool
Stakeholders specific to the former MRA redevelopment projects (tenants, place activation and some developers) have been, and will continue to be, entered into CRM.
Through this understanding and management, we hope to plan and record successful stakeholder engagement and target our communication appropriately. Public feedback and complaints are captured in our CRM system and are linked to the relevant project. We aim to respond in a timely and appropriate manner as reflected in DevelopmentWA Handling Public Feedback Policy. Complaints related to former MRA Redevelopment Areas are now also being captured in CRM.
The expected response time to resolve a complaint is five working days. CRM provides visibility and reporting mechanisms to monitor complaints logged and report these to Executive. Table 17 outlines our response time to resolve complaints from 2017-18 to 2019-20.
Table 17: Response time to resolve complaints 2017-18 to 2019-20 Target expected response Average response time time to resolve complaint (days) to resolve complaint (days) 2019-20 5 6.03 2018-19 5 2.86 2017-18 5 2.55
During 2019-20, there were 79 recorded complaints as shown in Table 18. Of those complaints, 48 were of a ‘normal’ priority with 28 being considered ‘high’ priority and three ‘low’ priority. The reasons for complaints were varied, however the impact of demolition works at Subiaco Oval on surrounding properties was a key issue; along with dust, noise, trespassers on DevelopmentWA land, fire breaks, safety issues, antisocial behaviour from neighbouring properties, fence/boundary wall repairs all being referenced.1
Table 18: Number of complaints, and priority 2017-18 to 2019-20 COMPLAINTS COMPLAINTS COMPLAINTS – High priority – Normal priority – Low priority Total 2019-20 28 48 3 79 2018-19 - 42 - 42 2017-18 1 55 1 57
1 Note: one complaint relating to a boundary wall was open for just over 12 months. This was due to the requirement of an engineering structural report, and a subsequent claim being made to our insurance providers. It has not been included in the above average response time equation.
[GRI Disclosures 102-43, 102-44] DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 59 Membership of associations • Supply Nation
DevelopmentWA holds memberships with the following • the Green Building Council of Australia industry and business associations: • the Master Builders Association (MBA) • Albany Chamber of Commerce and Industry • Urban Development Institute of Australia (UDIA) • Australian Institute of Company Directors • Wanneroo Business Association • Australian Institute of Conveyancers Industry committee participation • Australian Institute of Management Our staff participate on several industry committees, as • BioRegional Australia outlined below:
• Broome Chamber of Commerce • Chamber of Commerce and Industry Infrastructure Forum; • Bunbury Geographe Chamber of Commerce and Industry • Green Building Council’s State Industry Group; • Carnarvon Chamber of Commerce and Industry • Master Builders Association Housing Committee; • Chamber of Commerce and Industry (CCI) • Property Council’s Industrial Lands and Infrastructure; • Civil Contractors Federation Sustainable Development; Urban Planning; Residential • Collie Chamber of Commerce and Industry and Diversity committees; and
• Committee for Economic Development of Australia • Urban Development Institute of Australia (UDIA) Land • Committee for Perth Use Planning; Infrastructure; Urban Water; Outlook and Environmental committees. • Diversity Council Australia External initiatives • East Kimberley Chamber of Commerce and Industry DevelopmentWA utilises a number of external accreditation • Housing Institute of Australia (HIA) tools, and other frameworks, in undertaking our work. These include: • Institute of Public Administration Australia WA • The Green Building Council of Australia’s (GBCA) Green • International Association for Public Participation Star Communities rating tool, a precinct scale tool • Joondalup Business Association that covers six categories: Environment, Economic • Kalgoorlie-Boulder Chamber of Commerce and Industry Prosperity, Liveability, Design, Governance, Innovation.
• Karratha and Districts Chamber of Commerce and • The Urban Development Institute of Australia’s (UDIA) Industry EnviroDevelopment national compliance based rating tool that consists of six elements or ‘leaves’: Ecosystem, • Melville Cockburn Chamber of Commerce Waste, Energy, Materials, Water, Community.
• Newman Chamber of Commerce and Industry • Bioregional’s One Planet Living (OPL) Sustainability • Noongar Chamber of Commerce and Industry Framework encourages communities to live within the limits of our planet’s natural resources. It is based • Onslow Chamber of Commerce and Industry on the premise that if everyone continued to live like • Peel Chamber of Commerce and Industry the average Australian, we would need more than four planets to support the current world population. It • Port Hedland Chamber of Commerce includes 10 principles or aims. Zero Carbon, Zero Waste, • Property Council Australia Sustainable Water, Sustainable Materials, Sustainable • Real Estate Institute of Western Australia (REIWA) Transport, Local and Sustainable Food, Land Use and Wildlife, Equity and Local Economy, Health and • Rockingham Kwinana Chamber of Commerce Happiness, Culture and Community.
60 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 [GRI Disclosures 102-43] • The Infrastructure Sustainability Council of Australia’s Infrastructure Sustainability (IS) is a rating scheme for planning, design, construction and operation of infrastructure assets. It includes four focus areas. Governance, Economic, Environment, Social.
• United Nations Sustainable Development Goals are the blueprint to achieve a better and more sustainable future for all. The seventeen goals address the global challenges we face, including those related to poverty, inequality, climate change, environmental degradation, peace and justice.
Residential land purchaser research Since 2012, DevelopmentWA (previously LandCorp) has undertaken quarterly purchaser satisfaction research to monitor performance in meeting residential customers’ needs and expectations of the purchasing process. In 2019, the research was conducted with 92 DevelopmentWA customers. The results from the research are used to measure performance across years and across estates to identify drivers of satisfaction, dissatisfaction, and areas of improvement.
In 2019, we achieved an excellent overall purchaser satisfaction rating of 92 per cent, as shown in Table 19. The majority of purchasers were highly satisfied with our processes and highly likely to recommend purchasing land with DevelopmentWA. The research found high levels of satisfaction across all touchpoints including engagement with sales offices, sales agents and conveyancing. Residential purchasers were also happy with our service, in terms of being helpful, resolving issues, making customers feel valued, keeping promises and minimising delays. The research also found that of those who were familiar with estate design guidelines, the majority believe that these guidelines contributed to better build quality and design outcomes in the area.
Table 19: Residential land purchaser satisfaction 2015 to 2019 Residential land purchaser Residential land purchaser satisfaction with overall satisfaction with overall purchase process (target) purchase process (outcome) 2019 >80% 92% 2018 >80% 92% 2017 >80% 90% 2016 >80% 93% 2015 >80% 92%
[GRI Disclosures 102-43] DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 61 East Perth Power Station
Developer Satisfaction Research 4.4.2 PROPERTY SERVICES In 2019-20, DevelopmentWA commenced Developer Our focus Satisfaction Research to understand satisfaction Property advice and services to State and Local with residential, mixed-use and commercial land Government agencies can provide significant value to opportunities provided to builders and developers over Government through the optimisation of Government the last three years. This included opportunities provided property assets. by DevelopmentWA, but also LandCorp and the MRA. Through this research, feedback was sought on levels of Performance satisfaction with the current processes, the strengths and Our property services to Government weaknesses of the processes, and areas for improvement. Our aim is to provide property advice that optimise the The first phase of the research (qualitative) was completed benefits of surplus government assets and provide in early 2020, with approximately 50 builders and significant value to State and local government agencies. developers interviewed. The second phase of the research We do this by carrying out in depth due diligence, develop (quantitative) was delayed due to the impact of COVID-19, and market individual sites, as well as providing property but this phase of the research is due to be progressed and and project management services that includes rezoning, completed by late 2020. DevelopmentWA will develop and demolition and the remediation of contaminated sites. implement a plan to address the wide-ranging feedback gathered through this research upon project completion. As part of DevelopmentWA’s Government Asset Services Program, DevelopmentWA provides its services to various Stakeholder Research Government Agencies as requested. In 2020, DevelopmentWA procured Stakeholder Research to understand perceptions towards DevelopmentWA; In 2019-20, DevelopmentWA provided a broad range of perspectives on the overall performance; strengths and property services to Government, at cost recovery rates. weaknesses; areas for improvement; and the key future Some examples of this work include: priorities for DevelopmentWA. Given DevelopmentWA • King Edward Memorial Hospital (KEMH) site investigation was only recently formed; the research also explored and due diligence to undertake to excision of Harvey perceptions and performance of LandCorp and MRA. This House from the KEMH site. research also sought to determine the relative importance • Advice to the Department of Primary Industries and of social, economic and environmental issues among Regional Development on the demolition of agricultural stakeholders and importance for DevelopmentWA. The buildings at their Medina Research Station site. first phase of the research (qualitative) was completed in mid-2020, with approximately 50 stakeholders from state, • Advice and support to the Fremantle Port Authority local government, industry and non-profit interviewed. The (FPA) to investigate land development opportunities second phase of the research (quantitative) was delayed on surplus land at Victoria Quay. DevelopmentWA due to the impact of COVID-19, but is due to be completed also assisted the FPA with an Expression of Interest by late 2020. The initial findings of the indicated that to develop the ‘A Shed’ through involvement on the overall satisfaction with DevelopmentWA was high, but that selection panel and negotiations. there was some areas for improvement, including planning • Providing development advice to the Government on the and industrial activities. DevelopmentWA will develop establishment of a University into the CBD. and implement a plan to address the feedback gathered through this research project upon project completion. • Delivered strategic planning, development and delivery advice to Forrestfield, Bayswater, Belmont and other METRONET precincts.
62 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 [GRI Disclosures 102-43] 4.4.3 PARTNERING PROJECTS Our focus Engaging closely with Government, private sector investors and businesses, we seek to enable private investment through our partnership program. Our current active partnership projects are outlined in Table 20.
Table 20: 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, 1,006 lots have sold and settled, including five commercial sites in the Gateway Commercial Precinct and two schools. Alkimos Vista The Development Agreement was executed on 12 July 2016, which was effectively the commencement of the partnership. In 2018-19, Stage 2 was constructed and titled, and the Sales and Information Centre, Display Village and Picasso Park were delivered. The second stage of bulk earthworks were completed in 2019-20. 14 lots settled in 2019-20. Water Corporation Alkimos Coastal Partnership began in June 2001 to deliver Alkimos Coastal Node, a 57 hectare development adjoining the Alkimos Beach project. The project is in its planning stage with final adoption of the Local Structure Plan anticipated in first quarter 2020-21. Satterley Property Allara, Eglinton Partnership commenced in 2014 to deliver the northern 120 hectares of Group Allara, delivering on affordable living, urban design and environmental leadership. Once complete, the entire Allara estate will be 240 hectares with approximately 3,400 dwellings. To date, over 380 lots have been sold and settled. Town of Cambridge Parkside Walk, Partnership began in August 2013 to transform a former nursery Jolimont site into approximately 350 new dwellings. Planning approvals were obtained in 2015 and civil construction completed in December 2018. In 2017-18, all 24 single residential lots and four of the seven apartment sites were sold. Two apartment lots were sold in 2018-19, and the last in 2019-20.
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 63 4.4.4 FISCAL RESPONSIBILITY Metropolitan program contributing $54.3 million in land Our focus sales, and the Regional Program $11 million. Operating in accordance with commercial principles and Despite subdued market conditions and with containment performing functions in a responsible and cost efficient of expenditure we delivered a ‘profit after tax’ position of manner. $2.3 million. Prudent management of cash flow resulted in us remaining within approved net debt limits with borrowings Performance being $235.5 million at 30 June 2020. During 2019-20 we paid Economic value generated (WALA) out $20.5 million for land acquisitions and $124.8 million in In 2019-20, we achieved sales revenue of $140.2 million, development expenditure to deliver future land supply. on the back of challenging economic and property market In 2019-20, we returned to the State finances a total conditions. The most prevalent portfolio that delivered the of $60.1 million, comprising dividend payments to the majority of sales revenue was from the Industrial Lands Government ($8.4 million) and land tax, stamp duty, Authority program with sales of $74.9 million (53 per cent). income tax equivalents and local government rate The remaining two portfolios made up the balance with the equivalents ($51.7 million).
Figure 2: Economic value generated 2017-18 to 2019-20 (WALA)
2017-18 ($m) 2018-19 ($m) 2019-20 ($m) Direct economic value generated 302.2 261.3 273.6 (Revenues)* Other costs of operation 209.4 171.1 194.8 Land tax, stamp duty, income tax equivalents and Local Government 54.2 52 51.7 rate equivalents Salaries and on-costs 23.8 22.5 22.4
Dividend to Government 53.8 37.9 8.4
Interest charges on loans 5.5 6.7 4.1
Native title payments 3.6 2.3 0.1
Sponsorships 0.2 0.3 0.1
Economic value retained/utilised -48.4 -31.4 -8.0
Note: *Direct economic value generated includes land sales revenue, Government operating subsidies paid to WALA to undertake various land development projects, rental income received and various other income.
Operating Subsidy Arrangements Business Park at Nambeelup. Of the remaining $59.9 million, We continue to undertake select land development $20.9 million was for Subiaco Demolition, $5.0 million for projects on behalf of the Government that either address Ocean Reef Marina, and $4.6 million for East Perth Power market failure or require ‘top up’ funding to ensure that a Station, all three State committed large Infrastructure minimum internal rate of return is met, as articulated in Projects. $25.3 million related to holding costs for strategic Section 25A(3) of the WALA Act. Such projects receive land and infrastructure that we hold on behalf of the State appropriations in the form of operating subsidies. with the majority of funding returned to the State by way of tax equivalents and dividends. The balance of funding In 2019-20, we received $73.8 million in grant funding which relates to projects where we are addressing market failure was directed across the State for the delivery of a range within regional towns or we require a ‘top up’ to achieve the of projects from Broome through to Peel. Of this funding, minimum internal rate of return required under the WALA $13.9 million came from Royalties for Regions including cost Act for a given project. recoupments and ‘fee for service’ projects such as Peel
64 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 4.4.5 SUSTAINABLE SUPPLY CHAINS seek to mitigate potential negative labour, social and Our focus environmental impacts by procuring from our panels and registers. DevelopmentWA uses the influence within our supply chains to achieve best practice procurement for all goods To achieve balanced environmental, social and economic and services. This involves selecting goods and services outcomes, we rely on our network of diverse and that encourage or require suppliers to adopt responsible multidisciplinary suppliers. Our suppliers are required practices that optimise positive environmental, social and to identify and respond to the relevant sustainable economic outcomes. development opportunities through their engagements. When delivering our projects, suppliers are required to Performance deliver cost effective and balanced outcomes across all Prequalification of our suppliers elements of sustainable development. We are committed to ethical, accountable and transparent The panels and registers in place in 2019-20 are outlined procurement that maintains probity and fairness. To in Table 21. Over 49 per cent of our procurement (based on manage the supply chain, we regularly pre-screen our contracts) occurred through DevelopmentWA preferred suppliers by establishing preferred supplier panels and supplier panel agreements. We also engage Independent registers using a rigorous public market process. Pre- Probity Advisors for high value, complex, unusual or highly screening is based on expertise, accreditations in quality, contentious tenders to provide oversight for the tendering safety, environment and aboriginal engagement. We and evaluation processes ensuring probity and compliance.
Table 21: DevelopmentWA panels and registers Professional and Consultancy Services Construction Services • Legal Services • Civil Works Contractors • Engineering Consulting Services • Earthworks Contractors • Environmental Consultants • Landscaping Contractors • Landscape Architects • Demolition and Site Remediation Contractors • Planning Consultants • Contaminated Site Auditors • Internal Audit Services • Architecture and Design • Strategic Branding, Campaign & Digital Marketing Services • Public Relations • Signage Services • Insurance Brokerage Services • Tax and GST Consulting Services • Financial Advisory Services • Surveying Services • Project Management Services • Stakeholder & Community Engagement Consultants • Safety Consultants
To support sustainable procurement, we review and update standard procurement documentation, policy, procedures, checklists, scoring system, and our evaluation decision matrix on a regular basis to ensure sustainability considerations are included in our procurement process.
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 65 Procuring locally Our procurement approach includes supporting the economic development of local Western Australian business through implementation of local participation strategies embedded in our procurement tendering, selection and contract management processes. The Western Australian Jobs Act 2017 (the Jobs Act) sets the State’s approach to local content in Government procurement to promote diversification and growth of the Western Australian economy.
Under the policy, prospective suppliers submit local industry participation plans when participating in tenders above thresholds defined in Table 22. These plans outline local economic benefits of supply. DevelopmentWA began implementation of the Jobs Act’s requirements from 1 October 2018. Reporting of local procurement achievements are aligned to the policy and provided to the Department of Jobs, Tourism, Science and Innovation annually.
Table 22: Participation plan thresholds Contract value threshold at which Form of Procurement Region a local industry participation plan is required Goods and services Metropolitan Area $1 million and above Goods and services Regional Area $500,000 and above Housing and works Metropolitan Area $3 million and above Housing and works Regional Area $500,000 and above
During 2019-20 local industry participation plans were Participation of Aboriginal Business applied to the following construction projects: We are committed to establishing sustainable and • Nambeelup Trunk Water and Sewer mutually beneficial relationships with Aboriginal People and Communities by identifying and creating cultural • Rockingham Industry Zone Patterson Road Extension and economic opportunities for Aboriginal people on • Australian Marine Complex Hardstand Re-location for DevelopmentWA’s projects. Civmec Site The State Government’s Aboriginal Procurement Policy was • East Perth Power Station ATCO Gas Decommissioning implemented on 1 July 2018 with the objective of developing Works entrepreneurship and business opportunities for the Aboriginal community. This policy supports positive change and increased • Ocean Reef Marina Forward Works economic participation of Aboriginal people throughout the • Nambeelup Landscaping Works State and sets targets for the number of government contracts awarded to registered Aboriginal businesses. • Bunbury Waterfront Landscaping We continue to achieve the yearly target (1 per cent for • Hamilton Hill Civil Works Financial Year 2018-19 and 2 per cent for Financial Year • Roe Street Upgrades 2019-20) as set out in accordance with the Policy. In • Forrestdale Business Park West - Water Main Lowering 2019-20, we achieved 3.03 per cent of contracts awarded to Aboriginal businesses. • Forrestdale Business Park West - Intersection Works In accordance with DevelopmentWA’s direct appointment • Forrestdale Business Park West - DCS Works procurement protocol, for all procurements below $250,000, DevelopmentWA employees are encouraged to directly engage and procure from Aboriginal business for the provision of goods or services, without following the ordinary procurement processes. This may involve identifying packages of works that can be isolated so that the project can opt to award directly to an Aboriginal business.
66 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 Albany Entertainment Centre
During 2019-20, 36 contracts with a total value of $1,977,999 were awarded to Aboriginal businesses. Table 23 outlines our Aboriginal business procurement for 2019-20.
Table 23: Aboriginal business procurement for 2019-20 Administration, goods and services, 2019-20 amount* project consultants and works Number of contracts (excluding GST) Administration Purchases 3 $18,994 Community Consultation and Facilitation Services 6 $343,970 Heritage Consultancy Services 6 $60,937 Landscaping Contractors 7 $1,020,661 Marketing Consultants 3 $7,450 Place Making 1 $3,000 Property Management Contractors 1 $70,000 Public Art Consultants 2 $65,000 Security Contractors 1 $140,000 Site Works and Repairs Contractors 6 $247,987 Total 36 $1,977,999
*Does not include in kind contribution, for example facilitation work to assist with development opportunities.
Table 24 below shows DevelopmentWA, and previously LandCorp’s, direct Aboriginal business procurement between 2015-16 to 2019-20.
Table 24: Aboriginal business procurement between 2015-16 to 2019-20 Value of contracts* Number of businesses Number of contracts (excluding GST) 2019-20 17 36 $1,977,999 2018-19 8 14 $340,715 2017-18 8 11 $1,112,236 2016-17 8 17 $3,937,051 2015-16 10 13 $1,002,140
*Does not include in kind contribution, for example facilitation work to assist with development opportunities.
In order to continue to achieve the established Aboriginal participation target, we are currently reviewing and updating our Aboriginal business procurement strategy. We aim to adopt a continuous improvement approach to support the economic development of Aboriginal communities and to increase participation levels of DevelopmentWA employees and contractors in the immediate and longer term.
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 67 Collaboration with key government stakeholders DevelopmentWA has a zero-tolerance approach and Aboriginal community and prohibits all forms of Modern Slavery within its We are working collaboratively with key government business and supply chain. DevelopmentWA employees, stakeholders and Aboriginal business advocacy groups to contractors, subcontractors, vendors, suppliers, partners, explore, investigate and develop ideas and opportunities representatives, agents and others through whom for the engagement of Aboriginal contractors and suppliers DevelopmentWA conducts business must not engage in any by sharing strategic initiatives, trial models, case studies practice that constitutes any form of Modern Slavery. of success and lessons learned. Our Board is committed to the Policy and is diligently DevelopmentWA has adopted a Kaart Koort Waarnginy putting measures in place that are designed to prevent (KKW) “head, heart and talking” model for our projects, and detect Modern Slavery in our business and supply decribed further in our Reconciliation Action Plan. As chain. DevelopmentWA’s approach includes the following part of KKW we have engaged an Aboriginal Development elements: Manager (ADM) and Aboriginal Development Officer (ADO) • A Policy was developed and endorsed by Board in 2019 to work alongside project teams on Ocean Reef, Subiaco articulating DevelopmentWA’s commitment to prevent East and Alkimos City Centre to develop cultural heritage violations of the Modern Slavery Act and the Modern input, cross-cultural relationships and provide input into Slavery offences within the Criminal Code 1995 (Cth) potential economic elements of major projects across the within our operations and supply chain. State. • Communication of the Policy and all relevant elements The KKW model developed, initially through the MRA, is a of the approach has been provided to employees framework in which Whadjuk people can participate in a throughout DevelopmentWA and to our business cultural engagement process that collaborates with the partners. nominated representatives for a project. The ADM model, which forms part of the evolution of the approved KKW • Ongoing assessment of Modern Slavery risks within model, enables DevelopmentWA to procure culturally DevelopmentWA’s operations and its supply chain and appropriate custodians to assist with cultural and the development of effective, efficient and transparent economic elements on major projects across the State. controls to reduce exposure to those risks. • The adoption of anti-slavery requirement clauses has Modern Slavery Act been embedded in tendering documents and standard The Commonwealth Government’s Modern Slavery Act and general condition contracts. 2018 passed Parliament on 10 December 2018, requiring organisations and entities operating in Australia to publish • Ongoing due diligence on business partners, agents, annual Modern Slavery Statements. contractors, consultants, subcontractors and suppliers has been coupled with a requirement that they The Modern Slavery Act 2018 requires commercial implement procedures which incorporate the principles organisations including government agencies, charities, of the Modern Slavery Act. not for profit organisations and universities conducting business in Australia with a minimum annual consolidated • Training of all relevant individuals at all levels throughout revenue of $100 million, to publish annual modern DevelopmentWA. Training to ensure compliance with slavery statements, setting out steps taken to minimise the Policy, and allow individuals to recognise and avoid modern slavery in business operations and supply chains. Modern Slavery practices. DevelopmentWA submitted its first Modern Slavery DevelopmentWA is committed to ensuring there is statement in January 2020. transparency in our business operations and in our DevelopmentWA is committed to acting ethically and with approach to tackling Modern Slavery throughout our supply integrity in all its business dealings and relationships, and chains, consistent with our disclosure obligations under to implement and enforce effective systems and controls the Modern Slavery Act. to ensure Modern Slavery is not taking place in its own business or in any of its supply chains.
68 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 In addition, DevelopmentWA provides safe and fair working To assist business cash flow during COVID-19 economic conditions for all its employees and ensures that no recovery, DevelopmentWA reduced standard accounts child labour is employed, in line with minimum age laws. payable terms from 30 days to 20 days. We are aligning our DevelopmentWA expects the same standards from all of procurement policies with the State Government, which its contractors, suppliers and other business partners encourage the direct engagement of local business during and as part of its contracting processes, includes specific the COVID-19 pandemic economic recovery phase. prohibitions against the use of forced, compulsory or DevelopmentWA has developed a standard procurement trafficked labour or anyone held in slavery or servitude, and legal approach to contracts and procurement process whether adults or children and we expect that our suppliers and supplies impacted by COVID-19. An example of this will hold their own suppliers to the same standards. is the inclusion of force majeure clauses in our standard A forensic review on DevelopmentWA’s Tier 1 contractors contract and procurement documents. was completed in 2019. The results of this review We have an active and important role to play in stimulating concluded the majority of procurement is services (not the Western Australian economy by fast tracking projects goods) and at a lower risk of Modern Slavery. The risk of and continuing to deliver projects in the recovery phase of Modern Slavery in DevelopmentWA’s first tier supply chain COVID-19 to support Western Australian businesses and is rated in the low category. the wider economy. Impact of COVID-19 Achieving efficiency in our supply chain COVID-19 has had a significant impact on the global and We continue to use a fully interactive eTender system Western Australian economies and the businesses and to enhance the overall quality, timeliness, cost- supply chains that operate within these economies. effectiveness and transparency of the tender process The impact of COVID-19 has resulted in some minor delays for both DevelopmentWA and suppliers. In 2019-20, 92 of our suppliers ability to perform and meet contractual tender notices (including public and private notices) were obligations. DevelopmentWA has been fortunate that the advertised via TenderLink. impacts of COVID-19 on construction projects and the wider construction industry and our supply chain has been limited so far.
An exemption letter was granted to enable our suppliers to cross regional borders established by State Government during the COVID-19 pandemic to enable suppliers to undertake essential services and maintain key industry or business related functions. This encouraged business to continue operating where possible.
WGV at White Gum Valley
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 69 Digital Tower, Yagan Square, Perth CBD
4.4.6 CLIMATE CHANGE RESILIENCE At the master-planning stage we plan for inclusions of Our focus climate responsive urban and landscape design, design guidelines that include energy and water efficiency Implementation of mitigation strategies to reduce measures and urban planning that considers future climate the release of emissions and adaptation strategies to change impacts. strengthen the resilience of the built environment to respond to future climate change impacts. During construction of our developments we implement strategies and practices expressed in the masterplan. Performance These include the retention of vegetation where possible, Climate Change Policy revegetation, application of offsets reduction and recycling of demolition and construction waste, application A review of the Climate Change Policy was undertaken in of efficiency measures to reduce potable and non-potable 2019, comparing DevelopmentWA’s approach against other water use, and incorporation of renewable energy sources comparable organisations and ensuring an alignment with such as solar energy. State Government direction. Following this review, a new policy was developed and adopted in February 2020. The An Environmental Management audit of DevelopmentWA’s Policy commits to mitigation and adaptation strategies for Environmental and Sustainability Services was undertaken all DevelopmentWA projects. by Ernst and Young in April 2020. This recommended that formal requirements for climate change modelling be DevelopmentWA develops yearly strategies that guide included in engineering scope of works. DevelopmentWA activities in our metropolitan, regional and industrial will implement this in 2020. programs. The metropolitan, regional and industrial programs developed for 2020 commit all programs DevelopmentWA’s preparedness and response to climate to support the delivery of climate change resilience change is monitored by our corporate risk assessment initiatives. and management process. DevelopmentWA’s corporate operations team manages this process, with oversight by Climate Change Risk Management Executive and Board. Climate change risk is considered Climate change has the potential to impact on and tracked at both a strategic and operational level. DevelopmentWA through its physical impact on our projects across Western Australia. Each project delivered Green House Gas Reduction – Electric Vehicles by DevelopmentWA is unique and our potential action on This year, electric vehicle (EV) charging infrastructure climate varies according to our delivery role, as well as the was installed at East Village, Knutsford. DevelopmentWA’s nature and specific needs of each particular project. design guidelines are also being amended in 2020-21 to ensure provisions for the conversion to electric vehicles We seek to address climate change by working with our (commercial and personal) in our commercial, mixed use stakeholders to implement mitigation strategies to reduce and industrial developments. the release of emissions, as well as adaptation strategies to strengthen the resilience of the built environment to In 2019, DevelopmentWA placed an EV in its fleet. respond to future climate change impacts. DevelopmentWA also installed a fast charger to support the adoption and reduce potential negative perceptions of We adopt a precautionary approach to climate change. using the EV. This project was undertaken to support the Where there are serious or irreversible threats and safe transition of government fleet vehicles to the more impacts, lack of information or full scientific certainty environmentally sustainable EVs, as well as supporting a is not used as a reason for postponing cost-effective reduction in greenhouse gas emissions through our fleet. measures to prevent environmental degradation.
During development of our business cases, we investigate cost considerations of both potential climate change impacts, and potential urban design and development opportunities to mitigate those impacts.
70 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 4.4.7 ENVIRONMENTAL ASSET PROTECTION AND ENHANCEMENT Our focus Seeking to minimise negative impacts on the natural environment, being transparent about the impacts we do have and managing and improving outcomes by undertaking remediation of any contamination and seeking to protect and enhancing biodiversity and tree canopy wherever possible. Performance Land contamination and remediation During our due diligence process we investigate all sites for potential contamination. Any property that may be contaminated is assessed to determine if it poses a risk to the environment or human health. Remediation is completed where required. Table 25 outlines the projects investigated for contamination during 2019-20.
Table 25: Projects investigated for contamination during 2019-20 Project area Project name and location investigated (hectares) Intended future use DevelopmentWA projects Lots 171 & 172 Hope Valley Road, Hope Valley 4.5 Road reserve Bunbury Waterfront, Bunbury 37 Residential, Commercial Subiaco Oval, Subiaco 6.3 Sports oval Princess Margaret Hospital, Subiaco 3.6 Residential, Commercial East Perth Power Station 8.5 Residential, Commercial Projects managed for other Agencies DFES Forrestfield 27.5 DFES Facility DFES Belmont 1 DFES Facility DFES Claremont 0.38 DFES Facility DFES Fremantle 0.3 DFES Facility DFES Joondalup 0.3 DFES Facility DFES Albany 0.5 DFES Facility DFES Denmark 0.5 DFES Facility DFES Bunbury 0.34 DFES Facility DFES Margaret River 0.34 DFES Facility DFES O’Connor 0.49 DFES Facility Dept. Communities Stoneville 19 Horse-riding centre Fmr Waste Control site, Bellevue 5.1 General Industrial Lexia Liquid Waste Disposal Ponds 8 Pine plantation Total 123.65
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 71 Table 26 outlines our projects remediated for contamination during 2019-20.
Table 26: DevelopmentWA projects remediated for contamination during 2019-20 Total land area decontaminated/ remediated during Intended future Project name and location 2019-20 (hectares) land use DevelopmentWA projects Cockburn Coast, Cockburn 2.65 Sports oval Subiaco Oval, Subiaco 6.34 Sports oval Kelmscott Town Centre, Kelmscott 0.57 Unrestricted Total 9.56
Unfortunately, illegal dumping is a regular occurrence across DevelopmentWA’s land holdings. Regular site inspections are completed to identify the waste and arrangements made for its removal and disposal at appropriately licenced landfill facilities.
DevelopmentWA also received notification of contamination from two tenants in 2019-20:
• In August 2019, at the Wheatstone LNG Plant and Condensate facility at the Ashburton North Strategic Industrial Area, notified us of a release of PFAS (Perfluorooctanesulfonic)-containing fire-fighting water to storm water system. The impacted soil and concrete were excavated and disposed of offsite to a licenced landfill facility.
• In November 2019, the Alcoa Australia Pipeline corridor in the Kwinana Industrial Area notified DevelopmentWA of a minor spill. The contaminated soils were remediated by Alcoa.
Hazardous waste Table 27 identifies hazardous waste which was removed from several infill development sites and government infrastructure sites. Asbestos or asbestos contaminated soil is excavated from sites by appropriately qualified asbestos removal contractors. The asbestos waste is disposed of at landfills licensed to receive asbestos, no hazardous waste was exported, imported or treated by DevelopmentWA.
Table 27: Hazardous waste materials removed during 2019-20 Total hazardous waste Project and location Source of hazardous waste Total waste* disposed of to landfill* Hope Valley Wattleup Asbestos fragments in soils 150m3 150m3 Subiaco Oval, Subiaco Hazardous and 4,639 tonnes 4,639 tonnes contaminated material Armadale West of Rail Asbestos materials 15.66 tonnes 15.66 tonnes in buildings
* Note: The different modes of measurement is due to the variety of materials disposed.
72 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 Development adjacent to areas of high biodiversity value • Weed management in the drainage basin at Forrestdale The following DevelopmentWA sites are adjacent to areas of Business Park to prevent weed incursion into the high biodiversity value (outside of protected areas) and have adjacent Bush Forever site. had impacts or management strategies within 2019-20: • One-night rabbit shooting program to reduce rabbit • 15.9 square metre of native vegetation cleared at numbers to protect rehabilitation areas and habitat at Montario Quarter Shenton Park to facilitate installation Rockingham Industrial Zone. of an electrical transformer. • Installation of Phosphorus Retentive Media into drainage • 53 hectares of native vegetation cleared in Neerabup to basins at Peel Business Park to minimise migration of construct a General Industrial Area. phosphorus into the environment. Re-use of felled trees as habitat/refuge areas within the estate. • 0.21 hectares of native vegetation cleared at Eglinton West as part of roundabout works. • Eight seed collection events at Ocean Reef Marina to collect seed to be used in rehabilitation works within the • 4.1 hectares of native vegetation cleared at Rockingham adjacent Bush Forever area. Industrial Zone to construct Strategic and General Industrial Areas. The following fauna activities or programs occurred during 2019-20: • 0.18 hectares of native vegetation cleared at Eglinton for residential development. • 67,000 abalone (approx. ten tonnes of biomass) were translocated from Ocean Reef Marina prior to • 1 hectare of native vegetation cleared at Peel Business marina construction and held at the Department of Park for road upgrades. Primary Industries and Regional Development (DPIRD) • 6 hectares of native vegetation cleared in Rockingham laboratories. for Latitude32 General Industrial project. • A Black Cockatoo nesting box was installed at Peel • 30.55 hectares of native vegetation cleared at Business Park by LandCare SJ Inc. to offset the future Alkimos Central for residential development and rail removal of a mature jarrah tree. This allowed for sewer infrastructure. and water service installation.
Rehabilitation and fauna relocation programs • Prior to vegetation clearing, thirty-three mammals and We seek to manage and improve outcomes through nine reptiles were trapped and relocated from Neerabup protecting and enhancing biodiversity and tree canopy Industrial Area. wherever possible. During 2019-20 the following • Mulch and topsoil were removed, but no animals rehabilitation programs were undertaken: observed or trapped at Montario Quarter, Shenton Park.
• At Collie Shotts Strategic Industrial Area, 12,710 • Four fauna relocation programs were undertaken in the tubestock and thirty coir logs were installed into Rockingham Industrial Zone, including: drainage channels to direct and slow stormwater flows. – Charles Street Site – four reptiles trapped and relocated. Weed control, rabbit control, fence maintenance, and vegetation monitoring was also undertaken. – Alumina/Alloy Road extension - active native bee hives, 24 Quenda, and 38 reptiles were trapped and relocated. • Relocation of 20 Grass Trees and 5 Cycads from Neerabup Industrial Area to a private property in – Patterson Road – one reptile trapped and relocated. Bullsbrook, in consultation with traditional owners. – Alloy Road/Patterson Road – one reptile trapped and • Weed control and grass tree relocation as a part of a relocated. rehabilitation program at Montario Quarter, Shenton Park.
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 73 Compliance DevelopmentWA was compliant with State and Commonwealth environmental approvals during 2019-20. The following Table 28 outlines the environmental approvals or referrals received during 2019-20.
Table 28: State and Commonwealth environmental approvals or referrals received during 2019-20 State • Ashburton North Strategic Industrial Area Amendment 1 – EPA advised “not assessed” August 2019 • Native Vegetation Clearing Permit granted by Department of Water and Environmental Regulation (DWER) for Broome Road Industrial Area. • Native Vegetation Clearing Permit granted for Broome Motorplex • Native vegetation Clearing Permit granted for Neerabup Industrial Area • Ocean Reef Marina s45C amendments to marina configuration approved by EPA January 2020 • Albany Waterfront, EPA agreement to close-out monitoring programs August 2019 • Ocean Reef Marina – 2 x Native Vegetation Clearing Permits granted by the Department of Water and Environmental Regulation • Joondalup Rail Bridge – Native Vegetation Clearing permit granted by the Department of Water and Environmental Regulation • Lot 108 Kwinana Beach reclassified by the Department of Water and Environmental Regulation as Decontaminated • Lot 605 Kwinana Beach – reclassified by the Department of Water and Environmental Regulationas Contaminated Restricted Use Commonwealth • Latitude 32 – Lot 4 Sayer Road referred – not a controlled action under Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act) • Lots 100-101 Sayer Rd Hope Valley – not a controlled action under EPBC Act
Offsets assets that should be preserved and enhanced. Specific In 2012, in consultation with the Western Australian assets may warrant reservation under the scheme, or require Department of Parks and Wildlife, DevelopmentWA specific setbacks be achieved via design guidelines. We also (previously LandCorp) purchased 4,402 hectares of Black have due regard for the standard State planning framework Cockatoo foraging habitat as an Advanced Offset which was and uphold the environmental protection it includes. subsequently approved under the Environment Protection Through administration of Wungong Urban under Armadale and Biodiversity Conservation Act 1999. 66.5 per cent (2,929 Redevelopment Scheme 2, DevelopmentWA has coordinated hectares) of the Advanced Offset has been allocated providing the development of a project area wide Urban Water an offset for Allara in Eglinton and Alkimos residential Management approach to protect and enhance the existing development areas and Neerabup Industrial Area. The wetland assets. Advanced Offset is protected as Regional Open Space under the management of the Department of Parks and Wildlife. Preparation of METRONET East Bayswater and Forrestfield planning framework has identified the environmental assets Approximately 26 hectares of Lot 51 Walding Road, Carabooda, that DevelopmentWA should seek to maintain and enhance. acquired by the Western Australian Planning Commission in Within Forrestfield specific assets will be identified and March 2019, has been set aside for the conservation offsets protected through the planning framework and water required for the Ocean Reef Marina project. management is considered key to enhancing environmental Redevelopment Areas assets. Within Bayswater, the planning framework aims protect established trees to maintain urban tree canopy. In DevelopmentWA managed Redevelopment Areas, we DevelopmentWA is engaging with key stakeholders, including have additional control and influence over protection and environmental agencies and local government, to determine enhancement of environmental assets. Though a Planning if these are the best approaches to protecting and enhancing Scheme and associated Strategy we identify environmental environmental assets for each project area.
74 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 Montario Quarter, Shenton Park
4.4.8 WATERWISE DEVELOPMENT • Include good-practice Waterwise outcomes as standard Our focus into the design of government led urban development in Perth and Peel. Managing the total water cycle, holistically considering all aspects of water including water as a shared resource, DevelopmentWA has identified its Hamilton Hill, Subi East management of water discharge related impacts, and East Village at Knutsford as projects to report against water withdrawal and water consumption. This involves the Waterwise Perth Action Plan. Quarterly update reports consideration of the use of groundwater for construction are provided by way of a Government Steering Committee purposes, stormwater and drainage management, water comprising of Director Generals and CEOs of eight sensitive urban design, groundwater for landscape government agencies reporting to the Minister for Water. irrigation and techniques to improve potable water use Waterwise Partnership efficiency and reduce demand in built form and encourage DevelopmentWA has been working collaboratively with alternative sources, e.g. stormwater harvesting, greywater the Water Corporation across a number of its Waterwise and wastewater recycling. programs. The Water Corporation has a range of Waterwise Performance programs to reduce demand on water sources and embed liveable and sustainable water sensitive concepts. Water Sensitive Urban Design All projects within Western Australia must comply with DevelopmentWA (previously LandCorp) was officially State Planning Policies for water resources and Better recognised as a Waterwise Partner at the Waterwise forum Urban Water Management guidelines. They require the on 17 October 2018. The Waterwise Partners program preparation of a strategy, which accompanies the land recognises organisations for promoting water efficiency use plan to achieve a holistic understanding of an urban within the community. development project’s water balance and issues impacting Waterwise Development Program stormwater recharge and water quality. Detailed design This Water Corporation program provides water sensitive is informed by the Best Management Practices in the benchmarks for developments and recognises the Stormwater Manual for WA. Together these policies and exceptional water efficiency outcomes of new water guidelines require an integrated water cycle management sensitive developments. and Water Sensitive Urban Design (WSUD) approach. The initial benchmark for achieving the Waterwise Alignment to WA Government Waterwise Perth Action Development Endorsement was achievement of the Plan EnviroDevelopment Water Element Standard of a 20 per cent DevelopmentWA is a participant in the Waterwise Perth reduction in potable water use from statutory compliance as Action Plan. This two-year action plan released by the well as achievement of the Aquatic Ecosystems criteria. This Minister for Water in October 2019, sets the direction for benchmark was expanded in 2019 to include the following transitioning Perth to a leading Waterwise city by 2030. sustainability rating tools: Green Star, One Planet Living and The Action Plan contains 38 actions across four key themes Living Building and Living Community Challenge. of: Household and Buildings, Precinct and Suburb, City and Our projects that have achieved Waterwise Development Urban and Government Leading by Example. recognition are: DevelopmentWA shares responsibility for the actions • Broome North, received in 2019. identified below: • Shoreline, North Coogee, received in 2018. • Showcase innovative Waterwise outcomes in key government development to evaluate, share and inspire • Rockingham Industry Zone, received in 2018. adoption in the private sector. • Allara, Eglinton, received in 2017. • Embed Waterwise outcomea into the design of • WGV @ White Gum Valley, received in 2016. METRONET Precincts. • Alkimos Beach, received in 2015.
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 75 Water Initiatives for Built Form In 2019-20, DevelopmentWA’s IRP 4 the Knutsford Precinct Groundwater is used during construction and for dust in Fremantle was a CRC case study for the development of suppression purposes in line with State and Local an infill typologies catalogue and a performance evaluation government regulation. Groundwater bores are not framework to achieve more water sensitive urban infill required to be metered in Western Australia and therefore development incorporating water sensitive urban form, DevelopmentWA does not report on its groundwater use. water efficiency and urban greening to enhance cooling and livability. Bore water from artesian aquifers for irrigation of parks and open space is used under license in WA, primarily DevelopmentWA’s Ocean Reef Marina was the subject of by Local Government authorities. The Department of a CRC Research Synthesis Workshop in September 2019. Environment and Water Regulation manage groundwater This workshop was attended by DevelopmentWA and allocations. Licensing is not required for temporary uses key stakeholders with the aim to overcome challenges such as dewatering. and identify opportunities for a more water sensitive development. The resulting ideas for Ocean Reef Marina Cooperative Research Centre (CRC) for Water Sensitive report can be found online. Cities DevelopmentWA’s WGV at White Gum Valley has set a new DevelopmentWA (previously LandCorp) has been a partner standard for waterwise development in Western Australia in the CRC for Water Sensitive Cities since its inception in and has been used as a case study for the CRC for Water 2012. The CRC brings together interdisciplinary research Sensitive Cities. The case study, which can be accessed expertise and thought-leadership to undertake research online, outlines the project context, drivers, innovations, that will revolutionise water management in Australia and outcomes, challenges and lessons for transitioning to a overseas. waterwise development. DevelopmentWA is involved in the development and implementation of the research program through its involvement in the governance of the CRC, through the Regional Advisory Panel, the Water Sensitive Transition Network and membership on a Research Project Steering Committee.
76 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 4.4.9 ENERGY TRANSITION Solar panel initiatives Our focus During 2019-20, the following projects had solar panel initiatives: Identifying strategies to reduce energy use from fossil fuels and increase the uptake of renewable energy as an • Alkimos Beach, Alkimos: The Energy Smart Home important carbon emissions mitigation strategy. Package provides a rebate and mandates a minimum 1.5kW solar panel. For non-residential buildings, solar Performance panels are mandated through contracts. Reduction in energy across the project lifecycle • Alkimos Vista, Alkimos: A $2,500 rebate is provided to Reductions in energy use are often not in our direct help pay for a mandatory 1.5kW solar panel. influence and are often controlled by our suppliers, contractors and customers. As a land developer, we see the • Allara, Eglinton: A rebate package of $3,800 is provided most significant opportunity for impact through supporting to help pay for the mandatory energy initiatives, energy initiatives through built form on our land. We including the 1.5kW solar panel. disclose our energy initiatives for projects with sales during • Broome North, Broome: A rebate of between $25,000 and the reporting period, as this is the point in time where the $30,000 is available for up to 17 residents that engage in energy initiatives are closest to being realised. Most energy the Smart Sun trial program, initially launched in 2017. initiatives are realised at the building stage and whilst we • East Village, Kuntsford: The 36 architectually designed are predominately a land developer, we influence buildings town homes within the project are powered by 100 per through mandatory and recommended/ best practice cent renewable energy, using individual 6.6kW PV solar criteria in our design guidelines, or by providing incentives systems. such as rebate packages that include renewable energy or energy efficiency measures. Even when we facilitate • Montario Quarter, Shenton Park: Design Guidelines a climate responsive subdivision lot layout, the potential require single residential dwellings to install a solar benefit is only experienced once buildings are constructed. system with a minimum 1.5kW or an alternative Given this is our focus, we do not directly report on our renewable energy system. energy reduction performance. • Parkside Walk, Jolimont: The Built Form Guide requires Built form energy initiatives single dwellings install a minimum 1.5kW solar panel, and During 2019-20, of the 224 lots sold across 35 projects, 88 grouped dwellings a minimum of 1kW per dwelling. per cent of lots had energy management initiatives beyond • Shoreline, Cockburn Coast: Single and grouped compliance. Total projects and total lot sales figures do not residential buildings are required to install a minimum include land transfers for land that will only house servicing 1.5kW solar panel or solar water heater. Apartments are infrastructure or where there is no opportunity for built required to install solar panels in residential (1kW per form outcomes as Design Guidelines are not applicable. apartment) and commercial (1kW per 100sqm ground Research of our 2019 residential land purchasers identified floor area). that 52 out of 93 purchasers reported that they received Renewable energy investigations a sustainability package and 54 per cent of them believed As of mid-2020, DevelopmentWA will undertake 12 that it was very or extremely important in their decision to months of wind and solar monitoring data in the Oakajee purchase a block. Strategic Industrial Area (SIA) buffer to provide potential proponents with reliable data for potential renewable energy projects. DevelopmentWA is considering renewable energy production possibilities in the buffer, or just outside the buffer, at a range of SIAs. This will be important in the future as industry try to shift to green power to decarbonise and market their products as such.
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 77 Crushing of materials from the former Hamilton Senior High School for reuse within the new development
4.4.10 WASTE AVOIDANCE AND RESOURCE RECOVERY • To develop targets and review our approach to waste Our focus avoidance and resource recovery in consultation with the Department of Water and Environment Regulation. Managing demolition and construction impacts to minimize waste to landfill with subsequent environmental and This new commitment will be realised, for example, through financial (landfill levy) impacts. This involves encouraging the upcoming demolition activities at Princess Margaret or requiring contractors and consultants to use resources Hospital in 2020-21. efficiently and reduce, reuse and recycle materials during Waste and recycling research demolition and construction. In some instances we seek DevelopmentWA supported a successful funding to influence the behaviour of residential and business application led by Active Sustainability to the Waste customers to improve operational waste management Authority’s Community and Industry Engagement program, practices. focused on Increased supply of recycled construction Performance materials. As part of this research, the project partners, including Foundations Research and Earth Care Recycling, We consider the use of industry accreditation tools to will undertake research and industry engagement activities guide our project planning and monitor and assess project with a report expected in late 2020. performance, including waste and resource management. At a master plan and subdivision scale the Urban Development Institute of Australia’s EnviroDevelopment, Green Building Council of Australia’s Green Star Communities rating tool and Bioregional’s One Planet Living are considered. At a building level, builder waste recycling programs are considered to reduce construction waste by builders. The approach advocates for the development of a waste management plan and the measurement of waste reduction.
Alignment to State Government Waste Avoidance and Resource Recovery Strategy 2030 In February 2020, DevelopmentWA committed to new waste avoidance and resource recovery targets set out in the Department of Water and Environmental Regulation Waste Avoidance and Resource Recovery Strategy 2030, Action Plan 2020-2021. This included:
• At least 75% avoidance and or recovery target for all projects with significant demolition and construction waste generation potential, to be identified in business cases.
78 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 Demolition waste management We had four projects with demolition activities in 2019-20. All of these projects had waste management initiatives. All projects are outlined in Table 29. Information in this table was provided by our contractors and DevelopmentWA’s project teams, unless otherwise stated.
Table 29: Projects with demolition activities and waste initiatives during 2019-20 Project and location Waste management initiatives and performance Subi East – Demolition of the Subiaco Oval grandstands and site infrastructure commenced in July 2019, Subiaco Oval, with all above ground demolition works completed in December 2019. The Waste Management Subiaco Plan for the demolition targeted 96 per cent reuse / recycling of materials from the site. Total demolition material was 99,191 tonnes, of which 4,639 tonnes was hazardous / contaminated material. Excluding the hazardous / contaminated materials, the Subiaco Oval Demolition achieved 99.97 per cent recycle and reuse of materials from the site.
The Subiaco Oval demolition contributed towards the Roads to Reuse pilot which aimed to use up to 25,000 tonnes of recycled construction and demolition waste in the Kwinana Freeway widening project. Hope Valley – Demolition of three single residential buildings in Sayer Road, Hope Valley occurred throughout Wattleup December 2019, January 2020 and May 2020. 100 per cent of concrete, bricks and steel were Redevelopment recycled. Hazardous materials were sent to landfill. Project Armadale Two houses and associated external structures (fences) were demolished and land was cleared, West of Rail commencing in September 2019 and reached practical completion in October 2019. 100 per cent of concrete/bricks (320 cubic metres) and steel (5.17 tonnes) were recycled, as well as 85 per cent of mixed waste (606 cubic metres). Excluding hazardous materials and demolition rubble, this project achieved 90.18 per cent of total waste recycled from the site. Forrestdale - Demolition of buildings and infrastructure at Lots 305 and 306 Anstey Road Forrestdale Anstey Road commenced in October 2019 and was completed in December 2019. The contractor recycled the majority of materials with 100 per cent of concrete, bricks and steel, and 85 per cent of mixed waste recycled.
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 79 Construction waste management We had eleven projects with construction activities in 2019-20. All of these projects had waste management initiatives. All projects are outlined in Table 30. Information in this table was provided by our contractors and DevelopmentWA’s project teams, unless otherwise stated.
Table 30: Projects with construction activities and waste initiatives during 2019-20 Project and location Waste management initiatives and performance Hamilton Hill Senior Between April 2019 and July 2019, a total of 398 Tonnes of metal was recycled including steel, High School aluminum and lead. Over 90,000 tonnes of crushed material (mainly bricks and concrete) was recovered from demolition and stockpiled onsite for reuse in construction. Further detail on this project is available in LandCorp’s 2018-19 Annual Report. Research and learnings from activities were captured by a Murdoch University Honors Student to quantify findings. Financial performance and material end-use analysis will be reported in the 2020-21 FY. Perth City Link Civil works construction for Stage 6 commenced in May 2019 and achieved practical completion in August 2019. All excavated fill was reused on site as backfill. Waterbank Civil works completed include a temporary access road to allow the closure of Trinity Avenue (January 2020), pedestrian and cyclist path connectivity around the Waterbank site (February 2020), main drain infrastructure (April 2020) and Ground Improvement Piling Platforms (May 2020). As part of these works, approximately 1,200 cubic metres of class 1 classified waste and 1,750 cubic metres of contaminated waste was removed to a certified waste handling facility. 100 per cent of redundant PVC power/communications conduits, reticulation pipes, concrete asphalt, steel reinforcement, scrap metal, electrical wiring, batteries, metal fencing, star pickets, cardboard and wooden pallets were recycled at a certified recycling facility. Broome North Civil works commenced in relation to the motocross relocation in February 2020 with practical completion anticipated for end July 2020. The project consists of civil works for track construction and minor built form works for club facilities. All excavated fill was reused on site. Flinders Precinct – Civil works commenced in October 2019 and reached practical completion April 2020. All Latitude 32 vegetation stripped and mulched was stored on site for reuse, and the earthworks was a cut and fill balance on site. Kemerton Strategic Construction of Kemerton Road commenced in April 2019 and reached practical completion Industrial Area in September 2019. A contractor Waste Management Plan was in place, with an 85 per cent waste recycle target. This project recycled a total of 39 cubic metres (or 32.6 tonnes) of metal, concrete/sand, wood, paper and cardboard, achieving recycle rates of 95 per cent (volume) or 99.39 per cent recycle rate (weight).
80 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 Peel Business Park, Trunk Power civil works construction (February and July 2019) and Stage 1 bulk earthworks Nambeelup (March to August 2019) had waste management plans in place with targets to recycle at least 80 per cent of civil works construction waste (by mass) and 100 per cent of controlled waste sent to an approved facility.
The main civil works contract (stage 1 civil, lakes and Gull road upgrades, arterial drainage, freeway crossing drainage) commenced in October 2019 and is anticipated to reach practical completion in October 2020. A Waste Management Plan is in place with targets to recycle at least 85 per cent of civil works construction waste (by mass) and 100 per cent of controlled waste sent to an approved facility.
In 2019-20, these three projects achieved a combined total of 96.25 per cent civil construction waste recycled and 100 percent controlled waste was sent to an approved facility.
In addition to the main civil works contract, this project has other current works underway that will reach practical completion in the first half of 2020-21, including landscaping construction activities and trunk water and sewer civil works construction. These works will report performance data in 2020-21. Pinjarra Industrial Area Civil construction commenced in March 2019 and reached practical completion in September 2019. A Water Management Plan was in place for the civil contractor to manage acid sulphate soil conditions and to prevent downstream effects from the dewatering program. Clay soils excavated from the site were directed to a site for mixing and were reused to stabilise soils elsewhere in the region. Rockingham Heavy / Two civil works projects were undertaken in 2019-20, at Alloy Avenue/Alumina Road from Special (Rockingham January to April 2020 and at Patterson Road/Charles Street/Alloy Avenue intersection from April Industry Zone) to June 2020.
Approximately 50 tonnes of asphaltic concrete and approximately 20 tonnes of demolished concrete works were recycled at the recycling centre. Approximately 1,400 cubic metres was earthworks fill cut to stockpile, with 50 per cent reused in the permanent contracted works, with the rest stockpiled onsite for future use. Montario Quarter, Civil construction associated with the development of Orton Road commenced in late January Shenton Park 2020 and is anticipated to reach practical completion in August 2020. A project specific Construction Environmental Management Plan was implemented onsite with a waste target of 60 per cent of waste to be recycled or reused, aligned with Green Star Communities requirements. To date 96.6 per cent (339 tonnes) of material (rubble and asphalt) has been recycled with only 3.4 per cent (12 tonnes) of general waste sent to landfill, surpassing the project target.
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 81 4.4.11 COMMUNITY ENGAGEMENT Improving our metropolitan Aboriginal engagement Our focus DevelopmentWA is committed to continually improving on the way we engage with Aboriginal people within Engaging with the community to identify needs, our projects. In 2019-20, the Community Relations aspirations, expectations and concerns to provide the Team worked closely with the strategy team to local community with opportunities to positively influence develop and deliver a pilot program to improve the way development outcomes, and to ensure we deliver places DevelopmentWA incorporate Aboriginal engagement that maximise community benefit. within a project. The pilot program involved the Performance procurement of an Aboriginal Development Manager (ADM) and Aboriginal Development Officer (ADO) to work Strategic Engagement Strategy alongside the DevelopmentWA Project Teams to develop In 2018, DevelopmentWA (previously LandCorp) began a cultural heritage input, cross-cultural relationships and strategic assessment to understand how engagement is provide input into potential economic elements of major undertaken and embedded within the organisation. The projects across the State. assessment helped to define our current and future goals, including: increase resources within the engagement The key objectives of the pilot are to: team; become a recognised industry leader in engagement; • Create a replicable approach for key projects that deliver engagement training for staff; and ensure social risk take into account local knowledge from across both assessments are undertaken earlier in the project lifecycle. Aboriginal representative bodies and local aboriginal Community consultation and engagement people. We undertake assessments to understand the • Achieve a greater shared understanding of culture stakeholders and communities that may have an interest, across the organisation through an embedded ADM who or may be impacted by our projects. We seek to understand works with the teams and shares cultural knowledge. what matters to our stakeholders and the community, so • Offer training and business support for Aboriginal we can design fit-for-purpose engagement strategies, consultants through the employment of ADM and a manage social risks and involve stakeholders and mentee (ADO) who can work across the local community communities in our decision-making processes, providing and provide input into major projects. a foundation of trust and transparency. In 2019-2020, we finalised a suite of templates to assist in delivering This pilot is being undertaken on DevelopmentWA’s Subi consistent and best practice engagement across the East, Ocean Reef and Alkimos projects. business. We also prepared strategic engagement Ocean Reef Marina community engagement strategies for some of our key projects, including Subi We have continued to engage with stakeholders and the East, Ocean Reef and Alkimos. community regarding preparation of the detailed design, as This year has also provided an opportunity to be agile well as project implementation, for the Ocean Reef Marina. in the way we engaged with communities because of Key engagement activities have included: COVID-19, particularly in relation to adapting to an online • An online webinar to inform the community of the Ocean environment. Due to social distancing restrictions, Reef Marina Improvement Scheme. We had over 160 DevelopmentWA adapted several key project engagement registrations for the webinar, 125 questions submitted methods to an online format. Both Ocean Reef and Subi and over 340 views of the recorded webinar on YouTube East hosted webinars for the broader community on the following the session. relevant areas of each of the projects. DevelopmentWA also hosted Online Reference Group meetings for the first • Regular meetings with key stakeholders across State time in 2020. The use of online engagement techniques and Local Government, working together to achieve the is likely to become a key component for engaging with necessary statutory approvals and guide the planning communities into the future. and detailed design phase.
82 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 [GRI Disclosures 102-43, 102-44] Greenview at Karlkurla, Kalgoorlie
• Ongoing meetings with key stakeholders regarding • Community Hub established at Station Square Subiaco environmental impacts including beach impacts, in February 2020 to enable community to speak to staff abalone, surfing breaks and the protection of Bush with any queries. The Hub was temporarily closed due Forever sites. to COVID-19 In April and reopened in May 2020 once restrictions eased. • Construction Working Group established to proactively identify and manage any issues and opportunities with • 24/7 project information line established for the project. the early works and breakwater construction for the Alkimos Central city centre project. DevelopmentWA is finalising amendments to the local • Engagement with ADM and ADO to provide input to structure plan for the Alkimos Central city centre. The the Landscaping Masterplan and identify potential Alkimos train station and bus interchange, located in the economic development opportunities. heart of the city centre, are due to open in 2022 as part of Subi East Redevelopment community engagement the METRONET Yanchep Rail Extension. Key engagement activities in 2019-2020 include: In July 2018, DevelopmentWA (then LandCorp), commissioned qualitative and quantitative research with • Have Your Say community online survey to understand residents and businesses in the City of Subiaco, as well as what amenities and features the community would value neighbouring areas and visitors. 1,524 participants were regarding the future city centre. involved in the research, with the results informing the • Pop up engagement was held at Alkimos Gateway Fair on business case and associated visioning and high-level 25 October 2019, to help boost the survey responses and concept planning. This feedback has since been built upon further understand community sentiment. throughout 2019-20 as part of the master planning process. • A focus group was facilitated with 10 community leaders at Key engagement activities in 2019-20 have included: the Alkimos Beach pop up library to provide further insight • Meeting held for a cross-government agency on what features should be explored for the city centre. Communications Working Group to ensure shared • Community engagement findings, distilled into six key understanding of the project. themes, being: Connectivity, Public Amenity, Community, • Demolition Community Reference Group established for Entertainment, Design Quality and Employment were demolition of Subiaco Oval grandstands. promoted through project partner communication channels to the Alkimos – Eglinton region. • Dedicated engagement personnel assigned to the demolition phase to assist in proactively identifying and • Engagement of Aboriginal Development Managers to minimising impact on immediate residents, businesses assist in engagement with Aboriginal Elders through the and stakeholders. structure planning process.
• Capturing and refining memories and stories of Subi • Future engagement regarding early activation of the city East area to understand the importance of place, centre was developed. undertaken through a new research trial known as Strategic relationships with the Australian Urban Design ‘Sensemaker’. Research Centre • Engagement of Aboriginal Development Managers to The Community Relations Team has continued to work assist in engagement with Aboriginal Elders through closely with the Australian Urban Design and Research the master planning process. This group will continue to Centre (AUDRC) on community engagement. AUDRC is provide input through the detailed design phase. a research arm of the University of Western Australia • Community Reference Group established February 2020 dedicated to improving knowledge on urban challenges. to provide input into the master planning process. DevelopmentWA’s work undertaken with AUDRC in 2020 builds on previous innovative engagement activities for • Online page established for the master planning process infill developments to communicate and understand the with a dedicated page for the stories of Subi East. benefits and direct impacts on local communities.
[GRI Disclosures 102-43, 102-44] DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 83 As part of the Subi East project, DevelopmentWA hosted Small Business Development Corporation – a guide for five small group online sessions with the Community State agencies during works Reference Group (CRG) in partnership with AUDRC. In late 2018, the Small Business Development Corporation A second project with AUDRC involves a successful (SBDC) produced a set of guidelines to assist Small joint research application to directly engage with the Business, Local and State Governments to better community through the development of an innovative work together on projects that have an impact on local public participatory mapping tool (“Map My Say”). This businesses. DevelopmentWA (previously LandCorp) project will seek to evaluate community experiences of reviewed the guide, which was endorsed by State infill development and to identify the determinants of Government in September 2018. community support for, or resistance to, densification in In March 2019, DevelopmentWA (previously LandCorp) urban development sites associated with public transport. formed a working group with WaterCorp, Western What we are hearing from local communities Power, Main Roads and the SBDC to discuss the guide and its implications on Government agency engagement Over the past 12 months, there has been a significant practices. This resulted in a knowledge sharing session amount of feedback sought from the community in May 2019, attended by 10 Government agencies. through our projects. Throughout the course of the year, The session included discussion of agency good communities have typically provided feedback across the practice examples, and opportunities for improvement. following areas: environmental impacts associated with DevelopmentWA used the SBDC guidelines for the Subi the proposed development; type and level of amenity that East Redevelopment to ensure best practices during the will be delivered by a proposed development; resistance to demolition of the grandstands commencing in July 2019. infill development, and short term construction impacts. In 2019-20, DevelopmentWA conducted a short survey of Some of the reoccurring concerns around environmental key stakeholders and held a workshop to gain a further impacts include the removal or relocation of established understanding of stakeholder perceptions of the guides trees, changes to existing open space and the potential usefulness, and to discuss further strategies, to manage impact on flora and fauna. The community has also small business impacts during works. provided considerable feedback around the impacts likely to be experienced by existing residents during the construction phase, including dust, noise, roadworks, traffic and reduced privacy. Lastly, infill development has typically been met with some resistance by members of existing communities with a key focus on retaining existing heritage values within new developments.
The ability to provide feedback through digital platforms has increased in 2020 as a result of COVID-19 social restrictions. This has resulted in an increase in participation with online surveys and a notable interest in Webinar materials placed online.
The importance of indigenous heritage has also been noted a number of times through engagement on various projects, signifying an increased public awareness to pre-European history within project areas.
84 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 4.4.12 DESIGN QUALITY consultants and stakeholders, ensuring that we can inform Our focus our design guidelines and achieve good design outcomes whilst maintaining a level of flexibility for projects that will Ensuring our planning and urban design decision-making span many decades. and procurement leads to a high quality built environment responsive to environmental and community needs. Design guidelines Our design guidelines help establish consistency and high Performance quality design outcomes in the built environment. This year Design reviews for master planning the focus has been on the development of comprehensive Our design review process during master planning helps us design guidelines for some of our major activity centres monitor how each project is tracking against the original including Alkimos Central and Ocean Reef Marina. project objectives and how well the design responds to the Over 2019-20, DevelopmentWA has undertaken a review of site’s context and community. We have developed a tiered our Industrial Design Guidelines to inform the development system of design review which helps us tailor the process of a new Industrial Design Guideline template. The to the context and enables us to provide the appropriate aim is to provide a common document structure and level of engagement with stakeholders depending on promote best practice and innovation requirements for the scale, complexity and significance of the project. DevelopmentWA’s industrial projects. Additionally, it provides the flexibility required to meet our commitments, making sure that we follow the appropriate Within the Central Perth Redevelopment Area site specific terms of reference required for sustainability accreditation statutory design guidelines have been developed for the including, for example, Green Star Communities. Perth Girls School and the Chemistry Centre sites in East Perth. The development of these design guidelines are Review types: important to facilitate future activity in inner Perth.
1. State Design Review Panel (Significant and/or Complex Design Reviews for development proposals Projects). We also undertake design review for built form projects 2. Independent Design Review Panel (Major Projects in our developments to ensure that the proposal and projects requiring alignment with Sustainability complies with the relevant design guidelines. These Frameworks – i.e. Green star Communities, One Planet reviews are undertaken prior to the lodgement of a Living). development application and often in collaboration with our appointed Estate Architect and a design review panel 3. Informal Design Reviews undertaken by internal design comprising members of the Local Government Authority, review panel (All other projects). DevelopmentWA and the Office of the Government Focus areas for design reviews include urban design, Architect. landscape design, and built form design. Each of these Within Redevelopment Areas, where the statutory areas are considered in relation to the context and unique planning powers sit within DevelopmentWA, a similar characteristics of each site. The review includes how the multidisciplinary design review panel process is embedded proposed design responds to the culture and heritage of to ensure a high quality of development. Advice from the area, the surrounding neighbourhood and the physical the panel contributes to assessment and determination. attributes of the locality, the aspirations of the local Selected significant projects are reviewed by the State community, and the amenity and liveability of the new Design Review Panel. development.
This year, we have undertaken a high level of design interrogation and design review during the planning and design phase including detailed 3D modelling to test a variety of scenarios and development outcomes in our major projects. This detailed work has provided valuable information and allowed for robust discussion with
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 85 Champion Lakes, Armadale
Demonstration built form projects Our involvement in the delivery of built form is increasing and we ensure the delivery of high quality demonstration projects through engagement with Local Government Authorities, the Department of Planning, Lands and Heritage, and the Office of the Government Architect. This collaborative approach allows us to address all significant issues during the planning, design and delivery phases, often pushing the boundaries and delivering new and innovative design solutions in our development projects.
Table 31: Design reviews and demonstration projects undertaken in 2019-20 Design review type Project and location
Masterplan and Ocean Reef Marina concept design Alkimos Central
Subiaco East Built form development Montario Quarter, Shenton Park proposal Cockburn Central West, Cockburn
Murdoch Health and Knowledge Precinct
Koombana North Development Elizabeth Quay applications and East Perth statutory matters within Redevelopment Scarborough Areas Subiaco
Champion Lakes
Kelmscott
Midland Demonstration built Salt Lane, Shoreline form project Moonlight Street, Shoreline
Hamilton Hill
East Village, Knutsford
86 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 Collaborative research with the Australian Urban Design Medium density publication Research Centre We have been working collaboratively with the Office of In 2019-20, DevelopmentWA extended a collaborative the Government Architect and the University of Western research agreement with the Australian Urban Design Australia to compile a record of the evolution of medium Research Centre (AUDRC), the Western Australian Planning density housing in Perth. The proposed publication will Commission, and the Department of Communities include a number of DevelopmentWA’s design competitions (Housing) for a further three years. This urban design and built form projects undertaken over the last ten years. research partnership has been focusing on the challenges Alternative Materials and Construction Methods for to delivering medium density housing and on community Housing in WA engagement in urban design. Research partners UDIA, DevelopmentWA, Cedar Woods, the DevelopmentWA also supported AUDRC successful Housing Authority, Lendlease, Perron Group, and Stockland research grant application to the Australian Research appointed Ernst and Young (EY) in July 2018 to undertake a Council during 2019-20. The grant will lead to the research project analysing the economic costs and benefits development of the The Map My Say tool, an innovative tool of greater use of alternative materials and construction that builds an understanding of community experiences methods for housing in Western Australia. The final report of transit-orientated development (TOD) and activity for this research was released in early 2020, finding that centre developments, and identifies the determinants of modern construction methods can be cheaper than double community acceptance of or resistance to densification in brick builds, however, this was not always translating to Perth TOD sites. The tool will help inform planning policy for cheaper prices for consumers as the Perth market generally future METRONET and other activity centre developments. utilised higher pricing margins to cover a perceived higher The following research projects are also currently underway: level of risk associated with such builds. The research found that construction costs for traditional builds are likely to - Healthways Grant (Highlife) – Mental Health and continue to increase. The future supply of land for housing Apartment Design: this project will provide evidence development is also likely to require greater volumes of fill, informed data on the design of apartments on resident’s which itself is likely to more expensive as the supply of basic health and wellbeing. raw materials diminishes. DevelopmentWA will continue - Urban Performance Planning and Design Support to support progress towards alternative materials and System: this tool will provide evidence-based, methods of construction given the positive sustainability quantifiable information about how planning decisions outcomes and costs for customers possible through this might affect design outcomes and community health. form of construction.
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 87 4.4.13 AFFORDABLE HOUSING AND LIVING Our focus Working with others to develop and implement opportunities for people with low to moderate incomes by supplying land in areas of market failure, delivering affordable land and housing options and implementing affordable living initiatives. Performance Affordability policy review DevelopmentWA is currently reviewing its affordability policy to consolidate the former LandCorp and Metropolitan Redevelopment Authority policies. The review will align the policies with the Government’s housing strategy and to respond to stakeholder feedback on the policies.
Affordable land and housing outcomes Access to affordable land and housing for Western Australians is an important area of focus when we consider our role in improving equity and inclusion. We support the State Government’s ‘Affordable Housing Strategy 2010- 2020: Opening Doors to Affordable Housing’ which seeks to improve access to affordable housing by delivering a range of housing options for people on low to moderate incomes. Our target is to dedicate at least 15 per cent of our land and housing to supply affordable housing outcomes. Table 32 outlines DevelopmentWA’s affordability performance across several measures for single residential lot sales.
Table 32: Affordability measures and performance Measures Metropolitan performance Regional performance Percentage of lots sold in 2019- 68.7 per cent of lots sold across 63.6 per cent of lots sold across 20 at an affordable price using metropolitan Perth in 2019-20 sold at regional WA in 2019-20 sold at an the 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 2019-20 at or 56.8 per cent of DevelopmentWA 50.0 per cent of DevelopmentWA below the REIWA median lot price. lots were sold at or below the REIWA lots were sold at or below the REIWA metropolitan median lot price of regional median lot price of $148,000. $240,000. Percentage of lots sold in 2019-20 at 34.2 per cent of DevelopmentWA 9.1 per cent of DevelopmentWA lots or below the REIWA lower quartile lot lots were sold at or below the REIWA were sold at or below the REIWA price. metropolitan lower quartile lot price of regional lower quartile lot price of $185,000. $79,000. Percentage of multi residential lots 100 per cent of multi residential lots 100 per cent of multi residential lots sold at an affordable price using were sold at or below the affordable sold across regional WA sold at or the Department of Communities price points across different below an affordable price point of affordability price points for metropolitan sub-regions. $216,413. metropolitan and regional WA.
Note: Real Estate Institute of Western Australia (REIWA) December 2019 (mid-point) data sourced directly from REIWA on 14 July 2020.
88 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 The metropolitan projects that delivered affordable Homelessness working group outcomes in 2019-20 included: In 2019-20, DevelopmentWA continued to work with the • Single residential - Alkimos Beach and Alkimos Vista Department of Communities on the Housing Supporting in Alkimos; Allara, Eglinton; Champion Lakes and Communities Forum Homelessness Working Group. In Seville Grove. October 2019 the work of the Group culminated in the launch of the ‘All Paths Lead to a Home’, Western Australia’s 10-year • Multi residential – Parkside Walk, Jolimont and strategy on homelessness 2020-2030. Knutsford. The Big Issue – homelessness and disadvantage Regionally the projects delivering affordable outcomes The Big Issue CEO Selling campaign is to celebrate were: Badgingarra, Beverley, Buckingham Way in Collie, International Vendor Week and shine a spotlight on Dalwallinu, Halls Creek and Baynton West in Karratha. homeless and disadvantaged vendors, who are working to During the year, DevelopmentWA sold 10 lots to the Housing improve their lives. In the 2019/20 financial year our CEO Authority for social and affordable housing outcomes. again participated in the campaign – receiving the chance This included five single residential lots and five multi- to walk a short while in a Big Issue vendor’s shoes, and residential lots, delivering 25 dwellings. raising awareness among staff of the very real issues of Redevelopment Area affordability outcomes homelessness and disadvantage within our community. Within the Armadale, Central Perth, Scarborough and Affordable living initiatives Subiaco East Redevelopment Areas, a statutory planning Affordability includes the costs of living in a dwelling after policy, Development Policy 9 Affordable and Diverse purchase or rental and DevelopmentWA has introduced a Housing, is applied to control the delivery of affordable range of initiatives to reduce the ongoing living costs of housing outcomes. The Policy requires multiple dwelling residents in its estates. These include sustainable climate or group dwelling developments to provide a minimum responsive design, renewable energy packages and water of 12 per cent of dwellings as affordable housing for either saving initiatives. Key projects offering affordable living social housing or affordable owner-occupier housing. initiatives include: Alkimos Beach; Alkimos Vista, Allara Under this policy, five affordable dwellings reached in Eglinton; Janebrook, Montario Quarter, Shenton Park; practical completion and were purchased by the Housing Parkside Walk, Jolimont; and Shoreline, Cockburn Coast. Authority for inclusion in its Keystart Shared Ownership Program in 2019-20.
Working with others to facilitate affordable outcomes DevelopmentWA has agreed to trial the implementation of the Homes for Homes initiative at its Montario Quarter, Shenton Park project. Homes for Homes is an initiative established by a not for profit social enterprise to generate additional ongoing funding for affordable housing projects across Australia. Homes for Homes uses caveats on property titles to encourage tax deductible donations, of 0.1 per cent of the sale price, to Homes for Homes, each time the property is sold. DevelopmentWA will encourage built form developers to implement the Homes for Homes initiative as it works through the multi-residential lot sales process.
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 89 4.4.14 RECONCILIATION • Entered into a 12 month membership with Noongar Our focus Chamber of Commerce and Industry. As a land development agency, DevelopmentWA’s work can • Completed four year membership of Reconciliation WA. disturb or change the natural environment and as a result, • Continued annual sponsorship with Supply Nation. can impact Aboriginal heritage and cultural links to land. • Met with other RAP organisations to discuss RAP DevelopmentWA addresses these impacts by working with learnings and challenges, including private and Aboriginal people and communities and other stakeholders government organisations. toward reconciliation efforts that will provide benefit to Respect all and the closing of gaps that currently exist between Aboriginal and non-Aboriginal peoples. • $111,800 was paid to four Traditional Owner groups pursuant to Native Title Agreements, via respective Performance Aboriginal corporations or trustees associated with the Reconciliation Journey agreements; and $279,855.97 is held in trust for Native DevelopmentWA works toward improving our reconciliation Title Claimants that have not as yet established the performance and mitigating our impacts on Aboriginal required Body Corporates. people and communities in a number of ways that are • Continued to meet regularly with South West Aboriginal captured in the DevelopmentWA Reconciliation Action Land and Sea Council to ensure our Heritage and Native Plan (RAP). Both former agencies had formalised their Title obligations on projects in the South West are commitments to reconciliation through the development of being met. RAPs, with LandCorp first developing a RAP in 2009 and the • 100 per cent of staff employed for six months or more MRA in 2012. undertook cultural learning activities.
Over 2019-20, DevelopmentWA continued the development • Delivered Acknowledgement of Country at events both of a new RAP. While this was in development, reconciliation internal and external. activities continued to take place through LandCorp, MRA, • Acknowledged key dates of cultural significance. and as DevelopmentWA (following the merger in September 2019). A key milestone for the DevelopmentWA RAP will be Opportunities when Reconciliation Australia formally endorse the Stretch Development WA continues to demonstrate commitment to RAP, which is expected to occur in 2020. the application of our Aboriginal Engagement Framework The DevelopmentWA RAP framework provides four areas ‘Kaart Koort Waarnginy’ – Head, Heart, Talking (KKW) of activity: relationships, respect, opportunity (including through the engagement of five Aboriginal Development major projects) and governance. Managers and Aboriginal Development Officers to assist on three major projects, Subiaco East, Ocean Reef Marina Key achievements during 2019-20, across these five areas and Alkimos, to build cultural narrative to influence design, are outlined in the following sections: theme and explore and develop economic opportunities. Relationships The KKW is an innovative Aboriginal engagement • Actively engaged with NAIDOC Week in July 2019 by framework developed by the MRA to guide collaboration hosting, attending and supporting events during the with the Whadjuk Noongar Traditional Custodians of week that reflected the theme “Voice. Treaty. Truth. the Country (Boodja) to deliver projects and places with Let’s work together for a shared future.” The majority of authentic Aboriginal participation. The KKW is a living tool staff attended an event. with the ability to adapt and grow as we grow. Our small steps today are helping to build strong relationships that • Actively engaged with National Reconciliation Week will ensure better outcomes for tomorrow. in May 2020 by hosting, attending and supporting events during the week that reflected the theme “In this together”. The majority of staff attended an event.
90 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 Bunuru Festival, Yagan Square, Perth CBD
Other commitments we achieved in our RAP: • Elizabeth Quay - Ensured all events held in the precinct adhere to the Elizabeth Quay Civic & Cultural Charter, • Exceeded the State’s Aboriginal Procurement Policy which promotes consideration of Aboriginal heritage target for 2019-20 of one per cent of contracts to be in programming and activation activities. Promotion awarded to registered Aboriginal Businesses. of the Noongar six seasons in activations to ensure the • Direct engagement of seventeen Aboriginal businesses celebration and support of each season. Installation of to a value of $1,977,999, including but not limited to blade walls containing indigenous public art works. site and repairs works throughout the metropolitan, • Ocean Reef – Procurement of an Aboriginal Business industrial and regional area, project consultancy Development Manager and an Aboriginal Business services, and place activation activities. Development Officer to facilitate cultural contribution • Developed commercial relationships with five Aboriginal through the areas of community engagement, economic businesses in line with WA Government’s Aboriginal and employment opportunities, art and design. Procurement Policy Target. • Subi East – The demolition of Subiaco Oval and • Aboriginal participation plans that facilitated grandstands saw the appointment of Boodjah employment, training and sub-contracting opportunities Contracting, a Western Australian owned and operated for Aboriginal businesses was successfully implemented Aboriginal company, as a sub-contractor through RJ at the Princess Margaret Hospital Demolition and Peel Vincent & Co (RJV). An Aboriginal Business Development Business Park. Manager and an Aboriginal Business Development • Princess Margaret Hospital Demolition: The Officer were also procured to assist with building a local head contractor committed to awarding cultural narrative into the project plan influencing 7 per cent of the contract value as subcontracted design and theme of the masterplan as well as providing requirements to Aboriginal businesses totalling input into economic and employment opportunities and $1.33million, directly employing 30-35 Aboriginal assist with KKW framework implementation. people on site. • Broome – in collaboration with Yawuru, Shire of Broome • Peel Business Park: The local contractor on site and Kimberley Development Commission to celebrate increased its rate of Aboriginal employment to and recognise the cultural history of Broome (including over 10 per cent. Yawuru culture) by developing a viable business model and preparing a Business Case for the proposed Opportunities (Major Projects) Kimberley Centre. We achieved a number of RAP commitments across our Governance project areas throughout 2019-20. Many of these were achieved on our Major Projects, as detailed below: • Established the DevelopmentWA RAP Working Group, governance framework and Terms of Reference. • Yagan Square - All events and digital tower content adhered to the Yagan Square Civic & Cultural Charter, • Liaised with Reconciliation Australia multiple times to which promotes consideration of Aboriginal heritage, progress RAP development and endorsement. and fostering of the relationship with the Whadjuk • Completed and submitted the annual RAP Impact Noongar, people in all events, activities and operations. Measurement Questionnaire to Reconciliation Australia. Planning of the activation calendar centred around the Noongar six seasons. DevelopmentWA engaged Aboriginal contractors for Yagan Square operations and event management, and Aboriginal Artist in Residence, Kevin Bynder.
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 91 4.4.15 COMMUNITY DEVELOPMENT AND ACTIVATION Both Elizabeth Quay and Yagan Square support community Our focus and not for profit organisations through a lighting program that celebrates and acknowledges awareness days, Creating safe and healthy communities by providing places including Guide Dogs WA, Volunteering WA and Breast that support physical and mental health and wellbeing, Cancer WA. creating equitable and inclusive places, and investing in and supporting community development. Allara at Eglinton In November 2019, DevelopmentWA supported the third Performance annual Allara Planting Day. This annual event was well DevelopmentWA tailors its community development attended, with community members planting 494 trees in approach to meet the needs of the local community. Our Dazzle Park. approach involves considering what will ensure quality of Facilitated through the Allara Community Grants Program a place and quality of life for residents and the community. cultural festival in celebration of Waitangi Day was held, for Where appropriate we develop Community Development a second year. Over 700 people attended making this event Plans to guide our activities in our developments. We seek one of the biggest Waitangi Day celebrations in Perth. to build community capacity by establishing community groups, business networks and facilitating community Allara estate and Alkimos Ball Club entered into a three connection through local activities. year community partnership, facilitated through the Allara Community Grants Program. This community partnership DevelopmentWA held a range of community development helps connect residents with low cost sport and activities across our projects over 2019 and into 2020. entertainment, promotes an active lifestyle, and provides a A number of the planned activities during 2020 were safe and friendly meeting environment for the community. impacted by restrictions related to COVID-19. While DevelopmentWA was unable to undertake in-person Due to COVID-19 a substitute community program, Virtually activities due to the impact of COVID-19, where possible, Together, was initiated in Allara, with the intent to continue we shifted activities to other formats, including online and to foster a sense of togetherness amongst residents in the video content, to engage stakeholders and the community. face of increasing social isolation and economic uncertainty. New initiatives were released each week using a mix of social Community development initiatives media, email and letterbox deliveries. Activities ranged from Elizabeth Quay in-home movie nights, kindness cards to facilitate support During 2019-20, there were 44 events and activities at for the vulnerable, collective kite flying and a driveway disco Elizabeth Quay. These included multicultural, music and based on a community-collated soundtrack. family events, including the Japan Festival, Cosy at the Montario Quarter Quay, and the Christmas Lights Trail. With COVID-19 limiting programming of events, a number of activations moved In July 2019, interactive hoarding was installed around online including Reconciliation Week and ANZAC Day. the heritage-listed G-Block building at Montario Quarter, Shenton Park. The hoarding features 3D games, Instagram Yagan Square walls and linkages to the estate landscaping, alongside At Yagan Square numerous activities and community panels providing information on the site’s history and celebrations were hosted over 2019-20, including Fringe future vision. World, Perth Fashion Festival and Christmas Lights Trail. During 2019-20, DevelopmentWA also sought Expressions A significant partnership with City of Perth and Tourism of Interest for an operator for the MQ Block Community WA saw Yagan Square host Nyumbi, a weekly Aboriginal Centre at Montario Quarter. DevelopmentWA is still in the performance of song and dance, providing locals and tourists process of selecting a preferred proponent. an enriching cultural experience in the heart of the city.
92 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 Champion Lakes Healthy Active by Design Prior to the impact of COVID-19, DevelopmentWA This research explored how to make Australian cities and sponsored Live Life Get Active free fitness classes in towns more active and healthy, producing a tool to assist Champion Lakes. Held on Joe Saunders Reserve for with planning and designing communities. The planning residents and the surrounding community, the classes tool is now complete and training is underway to promote were led by track and field gold medallist Jane Flemming. the use of the tool. The following projects are featured as case studies for healthy and active design: Sprout Alkimos Over 2019-20, DevelopmentWA has also been working Beach, Karratha Vernacular Design Principles, Knutsford with the local residents association to transition to a Town Fremantle, WGV at White Gum Valley and Newman Town Team. Town Teams bring together local residents and land Square. In 2019-20, case studies for Allara, Eglinton and owners to work collaboratively with their local government Montario Quarter, Shenton Park were added to the website - to improve areas within the community. https://www.healthyactivebydesign.com.au/case-studies/ Alkimos Vista Ageing with choice Throughout 2019-20, DevelopmentWA’s Sprout Hub held The Department of Communities Seniors Housing community events, including Alkimos Boomerang Bags, Strategy entitled ‘Ageing with choice: future directions Little Sprouts meet-ups, and Meet the local artists. The for seniors housing 2019-2024’ was released in June Alkimos Seedling Fund is also run via Sprout. 10 cents from 2019. DevelopmentWA committed to a number of actions, every dollar spent at Sprout Hub Alkimos Vista goes into including: trailling innovative and affordable housing the Seedling Fund. This fund supports local groups and the options; delivering mixed-use developments that enable community to host events and activities in the local area. interaction between people of all generations; engaging A Christmas outdoor movie was held in Picasso Park with with aged care providers to identify opportunities to support from the Fund. integrate aged care into developments. Broome North Notably in August 2019, the Minister for Seniors and Ageing In November 2019, DevelopmentWA and Ray White announced the start of construction of The Queenslea, a supported the Broome North Primary School P&C, to hold multi-generational care facility featuring 39 assisted living the annual Waranyjarri Goes Troppo event on the Broome apartments co-located with 120 residential aged care suites North Primary school grounds. The community event and 100 intergenerational childcare places developed by featured family entertainment and raised funds for the Oryx Communities and Multiplex at Lot 506, Claremont on school improvements. the Park. It is due for completion in early 2021.
Community hardship Workplace Giving Program and volunteering The Hope Valley Wattleup Redevelopment Act 2000 was DevelopmentWA aims to raise over $10,000 from workplace established for the creation of the Hope Valley Wattleup giving and other fundraising per year, as well as participating Redevelopment Area. Under the powers of the Act, and in other workplace giving and volunteering activities. under specific principles and criteria DevelopmentWA can undertake to purchase rural properties where owners During 2019, our Workplace Giving Program supported the can provide evidence of genuine hardship. During 2019- not-for-profit group, HOPE. HOPE is a community services 20, seven voluntary hardship cases were settled in our organisation supporting people from all demographics and Latitude 32 Industry Zone development. from all suburbs across Perth who are in crisis or at risk of homelessness. Approximately 41 staff participated in the Workplace Giving Program over 2019. DevelopmentWA staff also contributed over $11,200 to HOPE. In addition to the financial contribution from staff, other useful items were donated, and staff time volunteered.
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 93 John Clifton, Manager Strategy and Innovation, DevelopmentWA Thomas Braunl, Professor, University of Western Australia Alison Morley, Head of Business Development, Western Power Louis Bettini, Principal Advisor Sustainability, Main Roads WA Nigel Malcolm, Founder and CEO, Fleetcare
Community investment Our innovation approach involves following a cyclical Our sponsorship program helps to build awareness for the learning process. Our Executive team provide strategic key role we play shaping the State’s future. Sponsorships oversight over our pipeline of innovation projects though a that support community groups allow us to contribute dedicated quarterly Executive Group meetings where they to the growth and development of the communities in review and approve new ideas and monitor the pipeline. which we are active. By supporting events and programs Innovation through demonstration pipeline which appeal to and matter to our stakeholders and the In 2020, DevelopmentWA’s Board resolved that there be an communities in which we operate, we are able to reinforce increased focus on innovation efforts, including through key messages, values and objectives. In 2019-20, we the innovation project pipeline, which addressed industry delivered over $163,000 in sponsorships to support challenges in areas of energy, water, waste and climate community and industry groups across the State. change.
A selection of our innovation through demonstration 4.4.16 INNOVATION projects can be found online. To ensure we continue Our focus to deliver innovation projects in the future, we work to Seeking to demonstrate innovative outcomes, providing maintain a healthy pipeline of innovation projects, knowing leadership in overcoming industry challenges, introducing that not all projects will be successful. efficiencies and pursuing new opportunities. This involves As at 30 June 2020, we had 41 innovation ideas in the creating a culture of innovation and working collaboratively pipeline; 9 ideas in the early idea phase; 11 ideas in the with other parts of government, private sector businesses planning phase; 16 innovation ideas in the delivery phase and universities or research organisations. and 5 in the monitoring and evaluation phase. Innovation projects that have substantially progressed during the year Performance are featured below. Innovation process COLLIDE innovation fortnight We understand Western Australia’s unique environment Over July and August 2019, DevelopmentWA held ‘COLLIDE’, and the pressures that are placed on our natural resources a fortnight of innovation activities and events to encourage as our population continues to grow. The challenge is to staff to explore skillsets, toolsets and mindsets for create new, smarter ways to live, to save water and energy innovation through the theme of ‘test. fail. learn. deliver.’ and reduce the pressure on our natural environment. Key events during the fortnight included: For developers, this means creating sustainable communities that balance resource efficient design • ‘Mini-Hack training sessions’, where staff used and quality of life for residents. By investing in and innovation tools and frameworks to explore and address demonstrating new technologies, we take on the potential real-world challenges. risks of these technologies so industry can confidently • ‘Pitch like a shark’ workshops where staff got to practice implement sustainable practices. pitching their ideas.
We define innovation as any change that unlocks new • ‘Future is Electric’ electric vehicle panel session. value. This may be change to process, systems, products • ‘Unchartered Territory’, where staff shared their stories or services. The focus of our innovation program is on of ‘test. fail. learn. deliver.’ our land development projects – as we see this as the area where we can have the most impact. We seek to • ‘Smart Cities’ guest presentation demonstrate innovation in the land development industry • ‘Precinct Scale of Sustainability Infrastructure’ in order to provide leadership in overcoming development presentation. challenges, to pursue opportunities, achieve development and Government policy goals in new ways, and to introduce • ‘Innovation Award’ staff nomination and award event. efficiencies and improved outcomes.
94 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 Following COLLIDE, DevelopmentWA conducted a staff The project will result in 100 per cent renewable energy survey to understand the impact and perceptions of the and 80 per cent saving on scheme water. Other features fortnight. The survey found: will include electric vehicle fast charging, provision for an electric vehicle car share scheme, waterwise homes • 90 per cent of staff believed that COLLIDE met their and private and public gardens. The project has led to the expectations; development of Australia’s first blockchain ready homes, • 97 per cent of staff agreed or strongly agreed that you with new residents participating in leading trials of this new had the opportunity to learn through doing. technology.
• 98 per cent of staff would like to see DevelopmentWA There is also a physical ‘Legacy Living Laboratory’ run another similar event in the future. onsite through a partnership with Curtin University. The Strategic Research Relationships Laboratory features a learning space, commercial kitchen, meeting spaces and real time data display. The data display DevelopmentWA has a number of long-standing research will feature WGV ‘Living Lab’ research and East Village partnerships that have and are generating new ideas data. and supporting innovation activities across a number of our projects. Since 2017, DevelopmentWA (previously East Village at Knutsford – Water Sensitive Development LandCorp) has partnered with the Australian Urban Design DevelopmentWA’s East Village at Knutsford is set to Research Centre (AUDRC) to support a more coordinated become part of a network of sustainable communities approach to urban design research. Over this time, AUDRC demonstrating how to plan and deliver water sensitive has influenced our urban design approach across a urban developments. The project is targeting 80 per cent number of projects, and has assisted us in developing new reduction in mains water consumption compared to the innovative community engagement practices. Since 2012, Perth average on a per person basis. The project retains DevelopmentWA (previously LandCorp) has partnered in 100 per cent of stormwater on site through permeable the Cooperative Research Centre (CRC) for Water Sensitive paving and rain gardens, as well as infiltration galleries Cities. As noted previously, the CRC has been supporting located under roads. our understanding of innovative water activities at WGV, A sustainably managed, shared strata bore will supply and also in the Knutsford Precinct, Fremantle, which all irrigation needs, significantly reducing mains water includes DevelopmentWA’s East Village project. In 2019- consumption and designed to be replenished through 20, DevelopmentWA committed to partnering in Reliable rainfall onsite. The landscape design will be an exemplar Affordable and Clean Energy (RACE) CRC with a range of of urban greening, using appropriate species to create a other government and industry partners. comfortable micro-climate with optimal water use. In 2019-20, DevelopmentWA led an Industrial Megatrends Learning from DevelopmentWA’s multi-award winning WGV Research project that engaged a Peer Review Group Innovation through Demonstration project at White Gum including cross-government stakeholders and industry Valley, the East Village design includes non-potable water bodies. This research assisted the Industrial Lands systems with 7 kilolitre tanks plumbed to each household’s Authority (ILA) in narrowing its innovation focus, and in hot water system, toilets and washing machines. These identifying future innovation partnerships. non-potable systems will see precious rainwater harvested East Village at Knutsford – Energy Transition and re-used, reducing the need to draw water from the East Village is a 1.5 hectare section of a former industrial traditional mains supply. area that is being redeveloped into a sustainable precinct The project will be home to the Curtin University and that will include residential and mixed use dwellings. The DevelopmentWA Legacy Living Laboratory, L3. L3 has project was launched in April 2019 and includes a 670kWh been selected as the location of the national iHUB project, on-site battery, provided by Power Ledger and funding supporting a network of national research collaboration from the Fremantle Smart Cities and Suburbs. The battery for smarter urban planning, design and management – will store energy from 36 town homes, collecting energy encompassing the responsible and sustainable use of from the homes 5kW solar systems. water. The East Village built form typologies are included
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 95 in the CRC for Water Sensitive Cities’ ‘Water Sensitive • UDIA EnviroDevelopment accreditation and Water Outcomes for Infill Developments’ research, with the Corporation Waterwise Development certification. research outcomes to provide real-life insights to inform As part of the project, DevelopmentWA is developing the Waterwise design of future urban infill developments. resources that can be used by Local Government and Former Senior High School Redevelopment in Hamilton Hill developers to implement water sensitive urban design. – Water Sensitive Partnership Project WGV at White Gum Valley – Waterwise Development DevelopmentWA’s Hamilton Hill Senior High School Exemplar redevelopment project is a Water Sensitive Partnership WGV is a Waterwise Development Exemplar, with various with the Water Corporation. The Project will test and water initiatives and savings being monitored into the demonstrate a range of water sensitive initiatives at large occupation phase across all built-form typologies funded scale, over time and across various stages of development. by the Water Corporation. Water initiatives implemented at The importance of water at the site is key to achieving a WGV included: number of objectives of the Masterplan including: • Community groundwater bore for all public and private • A minimum of 60 per cent reduction in mains water external irrigation. consumption compared to a statutory compliant, business as usual approach. • Rain water tanks plumbed to toilet and cold water washing on detached dwellings and townhouses. • A network of green spaces for livability and wellbeing. • Waterwise fixtures and fittings. • Preservation of the existing canopy for shade, ecosystem functioning , green corridors and • Waterwise front verge landscapes. enhancement of suburban character. • Water sensitive stormwater sump as a habitat park.
• Ecosystem functioning via regenerative landscape The CRC for Low Carbon Living, of which DevelopmentWA approaches. is a partner, undertook household water usage research • Improved amenity for community cohesion and creating a WGV. The CRC released its final report on the project in a sense of place. September 2019, when 70 per cent of dwellings were built and occupied. The report confirmed significant mains • Managed urban heat island effect via increased tree water reduction across all housing typologies in WGV when canopy coverage (from 16 per cent to 30 per cent). compared to the ‘average Perth home’ (106 kL per person • Implementation of Water Sensitive Urban Design per year) (Table 33). Through Curtin University, we are about infrastructure to enable at source infiltration, treatment to commence further research to inform our One Planet of stormwater and local replenishment of groundwater. Living review at WGV. Through this research, we will gain This includes tree pits, biofilters, and vegetated swales. a further understanding of household water and energy use at WGV. • Maximizing onsite retention and infiltration of stormwater in this manner will enhance soil moisture content, plant health, tree growth, and substantially contribute to urban cooling via a greener landscape.
96 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 Table 33: WGV mains water consumption and reduction compared to average Perth home Mains water consumption Reduction on average Dwelling typology (kL/person) Perth home resident (%) Detached 55 48% Attached 21 80% Apartments 32 70% Average 37 63%
Microgrid for Peel Business Park, Nambeelup The home fitted with the Open Loop GSHP, utilises the The Peel Business Park is a large scale agri-business based naturally occurring groundwater aquifer as a heat source industrial estate deploying a microgrid to service the and heat sink via a production/ injection bore. A GSHP electrical power needs of its customers. This innovation is needs less energy to operate than an ASHP as it utilises the the first of its kind in WA. The microgrid will deliver reliable earth’s relatively constant temperature as a source for heat and low cost energy, by harnessing the cost savings of exchange making it an environmentally friendly alternative local renewable energy generation, with excess energy to heat and cool a home. being discharged into the Western Power network via a grid Between July 2017 and when the project completed in connection. October 2019, the GSHP saw remarkable energy saving To create the microgrid solution, DevelopmentWA results, achieving up to 100 per cent greater efficiency appointed the Enwave Consortium (Enwave Australia, when cooling the home in summer, and up to 80 per cent Synergy and Sunrise Energy Group) to operate and to improved efficiency when heating the home in winter. expand the microgrid as the development grows. Enwave These results highlight the potential for GSHP to provide a WA has secured its electricity distribution and retail more affordable and environmentally friendly heating and licenses from the Economic Regulation Authority (ERA) and cooling option for WA households. is establishing electrical connections to the Peel Business With heating and cooling of dwellings forming up to 40 Park’s first customers. per cent of a household’s energy use, this equates to a The Peel Business Park microgrid demonstrates how significant saving of up to $1000 per year in electricity hi-tech renewable solutions can avoid significant costs. The capital cost of the GSHP is greater than distribution grid upgrade costs, whilst offering new and the ASHP, making the payback approximately 19 years exciting servicing platform opportunities for innovative for the Cool Earth Project home in Craigie, which has and forward-thinking businesses to partner with land a water table of around 35 metres, as it is located on developers for a better future. elevated ground. However, the estimated payback period for a GSHP would be less at other sites in the Cool Earth trial Perth Metropolitan Area where shallower water tables The Cool Earth Project is a collaboration between would result in reduced installation costs, particularly LandCorp, the ABN Group, GeoExchange Australia, the for households intending to invest in a bore water for University of Western Australia and Carbonomics. The irrigation due to savings in scheme water use. Project explored the potential for Ground Source Heat Pumps (GSHP), currently limited to use in space heating and cooling in some commercial buildings, to revolutionise how we heat and cool our homes in WA. Over a two year period, the Project analysed the heating and cooling efficiency of an Open Loop GSHP fitted in a home built at The Vive in Craigie compared to the performance of the standard reverse-cycle air conditioning system or Air Source Heat Pump (ASHP) fitted to the home next door.
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 97 Smart Sun trial at Broome North, Warranyjarri Estate Every property in Alkimos Beach has a solar PV system size Broome North solar pilot program called ‘Smart Sun’ was of 1.5kW or higher, achieved through DevelopmentWA’s launched in November 2017. The pilot is a partnership Alkimos Beach Design Guidelines and Energy Smart between DevelopmentWA and Horizon Power, the WA Package. Alkimos Beach also has a 1.1 MWh community Government owned electricity generator and retailer for scale lithium ion energy storage device located on-site regional and remote WA. which has been running since April 2016. People living in Alkimos Beach can opt into the trial, where they are The Smart Sun pilot will allow us to investigate and test an charged for their electricity based on the time of day they integrated energy solution that aims to: use it (known as time-of-use pricing). This ‘Peak Demand • Understand how to integrate higher levels of solar Saver plan’ (created specifically for the trial) allows energy generation into the electricity network while residents to make the most of their solar panel system by also reducing the amount of high cost infrastructure ‘virtually’ storing the excess energy generated in the energy required in new housing developments. storage device, and the solar credits they accrue on a daily basis are deducted from their power bill leading to saving • Understand how to make the network stable and stop money on energy bills. intermittency that arises from high levels of solar generation. Waste reuse from Subiaco Oval
• Provide participating residents greater access to The iconic Subiaco Oval was demolished to make way renewable energy, more control over their energy use for DevelopmentWA’s Subi East rejuvenation project. and significant reductions in power bills. The demolition of the West Coast Eagles and Fremantle Dockers’ former home ground was one of the biggest In 2019, Horizon Power completed the installation and demolitions of its kind in Western Australia. Almost 100,000 commissioning of the final Smart Sun packages to all 17 tonnes of demolition material was removed from the site, homes that are participating in the trial. It is anticipated 95 per cent of which is being reused or recycled. participants will save on average around $2,000 every year on energy bills based on Horizon Power consumption This project contributed 20,000 tonnes of concrete to research. Research to assess the effectiveness and cost the Main Roads WA’s Roads to Reuse pilot which aimed savings to participants is being carried out between 2019 to use up to 25,000 tonnes of recycled construction and and 2021 in partnership with the CSIRO. This pilot will demolition product as road base for the Kwinana Freeway help Horizon Power and DevelopmentWA work toward widening project. Another 3,000 tonnes of material has solving electrical grid and land development challenges for been used in the construction of the Murdoch Drive projects in the future. Connection project. Crushed recycled concrete is also proposed to be used on the Karel Avenue Duplication Alkimos Beach Energy Storage Trial project. The Subiaco Oval material was recycled, processed The Alkimos Beach Energy Storage Trial is a collaboration and tested to ensure it meets environmental and health between Synergy, the WA government owned electricity standards set by the Waste Authority, with support from generator and retailer, and Alkimos Beach development the Department of Water and Environmental Regulation partners DevelopmentWA and Lend Lease. The trial is through its Roads to Reuse program. thought to be the first of its kind in Australia, setting new The gradual dismantling and demolition of the grandstands standards in future infrastructure design, management allowed the retention of the Subiaco Oval Gates, 67 mature of ‘peak demand’ (where people are using more power at trees surrounding the site, the reuse of 50,000 bricks and certain times), and to help consumers save money and pavers, 3,000 lineal metres of timber seating. 250 seats drive long-term behavioural changes in energy usage. The have been reinstated using the recycled timber, and other trial also provides insight into the benefits of integrating timber seating is being reused at parks throughout Perth, renewable generation, energy storage and dispatch into a including one in South Perth. The retained heritage gates traditional electricity network. will provide an iconic gateway into the new precinct.
98 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 Karlkurla Rise, Kalgoorlie
Waste reuse from Hamilton Hill SHS demolition Industry accreditation The demolition of the former school was completed mid- We use industry accreditation tools to ensure our key 2019, with artwork, brick, timber, steel and architectural projects achieve industry recognised sustainability elements recovered from the site for reuse. A total of standards. DevelopmentWA’s use of industry accreditation 10,625 tonnes, equating to 95 per cent of the former school tools over the past nine years is shown in Table 35 on the buildings and infrastructure was recycled. More than 85 per following page. cent of the waste was crushed on-site and will be reused in the new development. Material sent off-site, including timber and scrap steel will be recycled for other uses. All hazardous material was removed and carefully disposed of in accordance with health and safety requirements.
This innovative on-site waste management approach avoided the need to truck raw material in and out of the site. This has meant 1,000 less heavy truck movements through local streets. While recycling levels of 95 per cent are now common place in major demolition works, materials usually end up in stock piles rather than being reused on site. Missing Middle at Salt Lane The focus for demonstration this year has been on the delivery of a range of medium density housing typologies addressing the ‘Missing Middle’. DevelopmentWA has worked with a number of key stakeholders to create a high quality medium density precinct at Salt Lane, Shoreline. This project demonstrates how a high level of amenity can be achieved, on smaller lots, through good design. Construction on the first tranche of medium density housing in Salt Lane will commence in August 2020, providing a benchmark for medium density housing that can be replicated across the State.
Subiaco Oval demolition, Subi East
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 99 DEVWA 0183 07/2020 0183 DEVWA in the world. WGV also WGV world. in the th Beach Alkimos for Green Recertified Star Communities of all six Elements and EnviroDevelopment. 2020 Village Knutsford East International achieved as a one endorsement community. planet 2019 achieved four four North achieved Broome Estate, Warranyarri Energy, Water, EnviroDevelopment; of Elements Ecosystems. Community and rating Star Communities Green Vista Alkimos Australian to – equivalent 5 Stars achieving Excellence. 2018 achieved a achieved Area Redevelopment Perth Central Quay, Elizabeth in Sustainability rating IS Infrastructure as built v1.0 “Commended’ March 2018. achieving rating Star Communities Green Park Shenton Montario Quarter, Leadership. World to – equivalent six stars 2017 was certified was Jolimont Residential with Multi-Unit Walk, Parkside energy, water, elements five for Standard EnviroDevelopment residential multi-unit first - the community and ecosystems waste, this certification. receive to development for certified was Group with EnviroDevelopment Satterley in partnership with The Eglinton Allara, being Beach this, with Alkimos achieve to in WA development residential second - the six elements first. the energy, water, elements: EnviroDevelopment five for accredited North was Coogee Shoreline, community. and ecosystems waste, 2016 was awarded six star Green Star Communities Star Communities six star Green awarded was partnership Beach Alkimos DevelopmentWA and Lendlease the Through was Beach Alkimos World Leadership. to - equivalent six stars awarded be to in Australia project first - the in 2016 rating in 2020. for six stars recertified achieved National Recognition for One Planet Living in May 2015, and International Endorsement as a One Planet Planet as a One Endorsement International and 2015, Living in May Planet One for Recognition National achieved Gum Valley White at WGV 11 and in Australia WA, second in - a first Living framework Planet One the of its application for 2015 Community in November 2015 has Water Corporation’s Waterwise Development Endorsement. Development Waterwise Corporation’s has Water water community, ecosystems, of four elements the for 2015 in September certified first IndustryEnviroDevelopment was Zone Rockingham with recertified and annually. energy and GBCA 4 Star Green Star Interiors Rating achieved for DevelopmentWA office refurbishment office DevelopmentWA for achieved Rating Star Interiors GBCA 4 Star Green 2014 was first first was Carine Rise, partnership Carine DevelopmentWA and Cedar Woods the Through ecosystems, four elements: for 2013 certification in November EnviroDevelopment granted community. and water energy, 2013 EnviroDevelopment for certified first was partnership Beach Alkimos DevelopmentWA and Lendlease the Through WA first - the 2013 in February community and energy materials, water, waste, ecosystems, of six elements across for all six ‘leaves’. certified been have to project 2012 Through the Satterley Property Group and DevelopmentWA partnership DevelopmentWA Property and Group Satterley the Through water energy, the for certified first was Heights, Baldivis Evermore in January 2012. EnviroDevelopment of elements community and Table 35: DevelopmentWA’s use 35: Table of industry assessment and accreditation tools between 2012 and 2020
100 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 DEVWA 0183 07/2020 0183 DEVWA in the world. WGV also WGV world. in the th Beach Alkimos for Green Recertified Star Communities of all six Elements and EnviroDevelopment. 2020 Village Knutsford East International achieved as a one endorsement community. planet 2019 achieved four four North achieved Broome Estate, Warranyarri Energy, Water, EnviroDevelopment; of Elements Ecosystems. Community and rating Star Communities Green Vista Alkimos Australian to – equivalent 5 Stars achieving Excellence. 2018 achieved a achieved Area Redevelopment Perth Central Quay, Elizabeth in Sustainability rating IS Infrastructure as built v1.0 “Commended’ March 2018. achieving rating Star Communities Green Park Shenton Montario Quarter, Leadership. World to – equivalent six stars 2017 was certified was Jolimont Residential with Multi-Unit Walk, Parkside energy, water, elements five for Standard EnviroDevelopment residential multi-unit first - the community and ecosystems waste, this certification. receive to development for certified was Group with EnviroDevelopment Satterley in partnership with The Eglinton Allara, being Beach this, with Alkimos achieve to in WA development residential second - the six elements first. the energy, water, elements: EnviroDevelopment five for accredited North was Coogee Shoreline, community. and ecosystems waste, 2016 was awarded six star Green Star Communities Star Communities six star Green awarded was partnership Beach Alkimos DevelopmentWA and Lendlease the Through was Beach Alkimos World Leadership. to - equivalent six stars awarded be to in Australia project first - the in 2016 rating in 2020. for six stars recertified achieved National Recognition for One Planet Living in May 2015, and International Endorsement as a One Planet Planet as a One Endorsement International and 2015, Living in May Planet One for Recognition National achieved Gum Valley White at WGV 11 and in Australia WA, second in - a first Living framework Planet One the of its application for 2015 Community in November 2015 has Water Corporation’s Waterwise Development Endorsement. Development Waterwise Corporation’s has Water water community, ecosystems, of four elements the for 2015 in September certified first IndustryEnviroDevelopment was Zone Rockingham with recertified and annually. energy and GBCA 4 Star Green Star Interiors Rating achieved for DevelopmentWA office refurbishment office DevelopmentWA for achieved Rating Star Interiors GBCA 4 Star Green 2014 was first first was Carine Rise, partnership Carine DevelopmentWA and Cedar Woods the Through ecosystems, four elements: for 2013 certification in November EnviroDevelopment granted community. and water energy, 2013 EnviroDevelopment for certified first was partnership Beach Alkimos DevelopmentWA and Lendlease the Through WA first - the 2013 in February community and energy materials, water, waste, ecosystems, of six elements across for all six ‘leaves’. certified been have to project Ocean Reef Marina is registered for the IS Infrastructure Sustainability Planning rating, and has been submitted ISCA to targeting a Gold rating. Peel Business Park is registered for EnviroDevelopment targeting 4 Elements. Former Senior High School in Hamilton Hill is registered for UDIA EnviroDevelopment, targeting all six leaves. Subi East Redevelopment is registered for Green Star Communities targeting 6 Stars. Waterbank, our partner project with Lend lease, is registered for Green Star Communities targeting 5 Stars.
• • • • • 2012 Through the Satterley Property Group and DevelopmentWA partnership DevelopmentWA Property and Group Satterley the Through water energy, the for certified first was Heights, Baldivis Evermore in January 2012. EnviroDevelopment of elements community and DevelopmentWA is currently in the process of applying industry accreditation or investigating the use of accreditation for the following projects:
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 101 4.4.17 COHESIVE CULTURE integrated organisation that has one seamless value chain Our focus for delivery. Building a cohesive culture, workforce and environment Skills and expertise of our workforce that supports employee health and wellbeing and the The skills and expertise of DevelopmentWA’s workforce delivery of the organisations vision and purpose. This is diverse. In our core area of operations we have involves ensuring the workforce is diverse, inclusive, development managers with backgrounds in valuation, engaged and has the right skills, expertise and leadership. commerce, planning and property as well as planning professionals. In corporate areas, we have finance, Performance human resources, marketing, sustainability, community DevelopmentWA was formed through a merger of the engagement, business development, and information Metropolitan Redevelopment Authority (MRA) and the technology professionals. Western Australian Land Authority (WALA) in September Our workforce 2019. Data provided in this section covers both entities. At 30 June 2020, we had 256 employees (excluding Culture strategy development Board Members) by head count and 240.7 Full Time The merging of two organisations requires development Equivalent employees (FTE). This is made up of 137 WALA of a new culture alongside change management to ensure employees and 93 MRA employees. The following Tables that individuals embrace and adopt the new culture. (Table 36 – Table 38) illustrate the key characteristics of The first part of this change is to undertake a cultural our workforce. WALA and the MRA each have a Board. development plan to establish a new culture aligned to Although these Boards are made up of the same people, business strategy. The objective of this work is to enable they are legislatively separate and therefore have been a constructive, adaptive and unified culture, supporting counted separately. There are also a number of Land high performance in DevelopmentWA, in the shortest Redevelopment Committees. possible time. Ultimately the goal is for a unified and fully
Table 36: Employees by contract and gender Contract type Total number of employees (as of 30 June 2020) Female Male Total Full-time (permanent term) 84 101 185 Part-time (permanent term) 37 6 43 Full-time (limited term) 11 8 19 Part-time (limited term) 5 4 9 Total 137 119 256
Note: Total number of employees, excluding Board members, based on headcount.
102 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 Table 37: Governing body and employees by job classification and gender Job classification Total number of employees (as of 30 June 2020) Female Male Total Board* 11 12 23 Senior management 10 19 29 Middle management 16 29 45 Professional 57 54 111 Other 54 17 71 Total 148 131 279
Note: Total number of employees, including Board members, based on headcount. *Board includes MRA Land Redevelopment Committee members and WALA Board members.
Table 38: Governing body and employees by job classification and age Job classification Total number of employees (as of 30 June 2019) <30 30-50 >50 Total Board* 1 8 14 23 Senior management 0 13 16 29 Middle management 0 24 21 45 Professional 10 82 19 111 Other 15 34 22 71 Total 26 161 92 279
Note: Total number of employees, including Board members, based on headcount. *Board includes MRA Land Redevelopment Committee members and WALA Board members.
Employee retention and turnover During 2019-20, our staff retention rate was 89 per cent which is marginally lower than the target of 90 per cent, as shown in Table 39. As a consequence of the merger, a number of people looked for opportunities to remain in the public sector or opted to take voluntary redundancy. Outplacement services were also offered.
Table 39: Staff retention rate target and performance for 2019-20 Target (%) 2019-20 (%) 90.0 89
Table 40: Total turnover rate for 2019-20 Total turnover rate (voluntary and involuntary) 2019-20 (%) 11
The total turnover rate in 2019-20 was 11 per cent, as shown in Table 40. Career outplacement services were provided in some cases where employees were supported in their exit from the organisation. The turnover rate is lower than the average turnover rate reported by the Australian Human Resources Institute of Australia of 18 per cent, with the property industry historically experiencing higher than average rates of turnover.
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 103 Baynton West Primary School, Karratha
Table 41: Total number and rate of employee turnover by age and gender Number (as at 30 June 2020 Rate (%) (as at 30 June 2020) Age Female Male Female Male Under 30 6 0 38 0 30-50 3 3 8 8 Over 50 9 7 11 10 Total 18 10 13 8
Note: calculation for rate of employee turnover is number of employees terminated/ average headcount for 2019-20; voluntary and involuntary terminations were included in the calculation.
DevelopmentWA’s absenteeism, that is the average unplanned/personal leave taken, was 6.4 days in 2019-20. Absenteeism in 2019-20 comprised 19.4 per cent of all leave taken.
New employment hire In 2019-20, DevelopmentWA hired a total of 19 new employees, the breakup by age and gender is shown in Table 42.
Table 42: New employment hires in 2019-20 by age and gender Female Male Total Under 30 3 1 4 30-50 1 0 1 Over 50 8 6 14 Total 12 7 19
Graduate program An internal graduate program is in place to support and develop project management skills and experience. In 2019-20, DevelopmentWA continued the graduate employment program for two graduates, which included rotation across the business.
Diversity Diversity and Equal Employment Opportunity (EEO) for all employees and prospective employees is promoted in the workplace. Diversity targets have been defined and incorporated into our EEO Management Plan and Reconciliation Action Plan with specific focus on employment of Aboriginal Australians, people with disabilities and females in senior roles. To achieve this, policies and strategies are in place to create awareness and eliminate discrimination and harassment, particularly on grounds covered by EEO legislation. Our diversity targets and performance are monitored and reported to the Board annually. DevelopmentWA continues to build relationships with diversity-focused recruitment to actively seek diversity candidates and partner with disability support groups to determine the needs and approaches to best support and retain diversity candidates in the workplace. Limited recruitment activity constrained opportunities to influence diversity outcomes. However, women in management and people from culturally diverse backgrounds targets were exceeded. Diversity targets and performance are shown in Table 43.
104 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 Table 43: Diversity targets and performance Target (%) Actual at June 2020 (%) Women in management* 32.0 48.0 People from culturally diverse backgrounds 17.0 18.6 Youth 15.0 2.7 Aboriginal Australians 3.0 1.6 People with disabilities 3.0 2.3
*Women in management is the percentage of females in the senior leadership group.
Gender equality We are committed to ensuring that all human resource processes are free from discrimination or gender bias. Women and men are paid similar amounts for similar level work on average, as shown in Table 44. We focus on recruiting and supporting females in project development and leadership positions.
Table 44: Female salaries as a percentage of male salaries by job classification Job value level* Actual at June 2020 (%) Executive 104 Senior Management 88 Middle Management 94 Professional 97 Other 101
*Using Full Time Equivalent salary.
Parental leave DevelopmentWA provides 14 weeks paid parental leave and unpaid leave up to 52 weeks in total which is in excess of the minimum legislated. This is in addition to the benefits available through the Government. DevelopmentWA also tries to accommodate requests for flexible work arrangements on return from parental leave to encourage retention of valuable skills and knowledge.
In 2019-20, nine females were due to return to work from parental leave. Of these, all returned to work after their parental leave ended. No men took parental leave.
The return to work rate, that is the total number of employees that did return to work after parental leave, divided by the total number of employees due to return to work after taking parental leave for 2019-20 was 100 per cent (Table 45).
In 2017-18, a transition back to work program was introduced at DevelopmentWA (previously LandCorp) to help facilitate effective returns. The program is designed to support and encourage employees who may be undertaking a career transition through online learning and coaching to ensure employees are provided the greatest opportunity to accelerate performance within their new or returning role. In 2019-20 the program was offered to three females on extended leave who all took advantage of the offer.
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 105 Table 45: Return to work rate following parental leave Year 2019-20 (%) Return to work rate following parental leave 100
The retention rate, that is the total number of employees (WALA and MRA) retained 12 months after returning to work following a period of parental leave, divided by total number of employees returning from parental leave in the prior reporting period, for 2019-20 was 100 per cent (all females) (Table 46).
Table 46: 12 month retention rate following parental leave Year 2019-20 (%) 12 month retention rate following parental leave 100
As at 30 June 2020, there was no-one that left the organisation (including via redundancy) 12–24 months after returning from parental leave. As at 30 June 2020, there were four females, but no males, who had continued employment for 24 months after returning from parental leave, and two females who were still employed after 36 months.
Flexible work practices We recognise the value of flexible work arrangements as a benefit in attracting and retaining quality employees. Research shows that improving workplace flexibility has positive effects on employee engagement, job satisfaction, productivity, efficiency, staff turnover and attendance.
Employees can apply for various arrangements including variable work schedules, working from home or to work reduced hours. Currently, all staff have access to flexible start and finish times; 52 staff work part-time hours (9 male, 43 female) and all staff have worked days from home, in particular due to COVID-19.
Learning and development During 2019-20, we had seven employees access the study assistance program which is designed to support employees who undertake advanced level development including tertiary or post graduate study.
On average our employees received 11.2 hours of work time in training during 2019-20, as shown in Table 47.
Table 47: Average hours of learning and development for 2019-20 Year 2019-20 Average hours of learning and development 11.2
Table 48: Average hours of employee training, by employee category and gender Female (average Male (average Total (average Job classification training hours) training hours) training hours) Senior management 13.8 14.8 14.3 Middle management 8.6 11.4 10.4 Professional 11.8 15.5 13.6 Other 7.8 3.2 6.7 Total 10.0 13.6 11.2
106 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 Allara, Eglinton
We aim to maintain a learning and development budget • Built Form Workshop – a three day workshop was of two per cent of total salaries, despite tightening fiscal attended by 36 people. conditions. In 2019-20, 0.5 per cent of total salaries were • Census Training – Australian Bureau of Statistics ran invested in learning and development course fees and 1.0 two sessions: Introduction to ABS Data and Delving per cent if we include the cost of an employees’ time. This Deeper into the Census for 27 people. is significantly lower than previous years mainly due to disruption caused by office move, merger and COVID-19. • Microsoft Project 2016 – 16 people attended a Level 1 In fact a total of 23 courses (285 hours and $18,830) were introduction. cancelled or postponed specifically due to COVID-19. • Mental Health: 18 employees completed this training Building knowledge and skills designed to develop skills in recognising the signs To build capability across the business DevelopmentWA and symptoms of mental health problems, provide has a Learning and Development Framework. knowledge of possible causes and treatments available, develop skills in how to give appropriate The objectives are: to improve the learning culture; initial help and take appropriate action if a crisis integrate the corporate offering for employees with situation arises. Brain Ambulance ran two sessions business objectives and performance management; - CALM Suicide Prevention (Connect, Ask, Listen, provide consistent learning and messages; increase self- Monitor) and Mental Health First Aid. driven learning; and provide a framework that captures and shares knowledge. • Study Assistance Program was accessed by 7 staff.
During 2019-20 a number of training courses were offered, Performance management including: All WALA employees (100 per cent) received at least two regular performance and career development reviews • Onboarding program for MRA employees during 2019-20 as part of the performance management • Core/compliance skills: there are a number of process. Not all previous MRA employees participated mandatory training modules all staff are required to in the performance management system due to the complete online. These are: Orientation; Records transition. It is expected that all employees will be covered Management; Diversity at DevelopmentWA; Equal by the system in 2020-21. Opportunity; Cyber Security Awareness; Accountable Superannuation contributions and Ethical Decision Making; Closing the Gap We operate in Western Australia, and as such Australian WA (between socio-economic/ health outcomes law defines superannuation contributions from employers. experienced by Aboriginal and Torres Strait Islander DevelopmentWA adheres to these requirements. peoples, and non-Aboriginal or non-Torres Strait Islander people); Fraud and Corruption Awareness; and Collective bargaining agreements Occupational Safety, Health and Environment Induction. Union membership is optional and employees may elect This training was completed by 95-100 per cent of staff to join the Community and Public Sector Union. The Union required to do so. A new mandatory module, COVID-19 agreement for employees is the Western Australian Awareness, was introduced in June 2020. At 30 June Land Authority and Community and Public Sector Union 65 per cent of staff had completed the module. Enterprise Agreement 2011. DevelopmentWA have 130 • Aboriginal Engagement – Building Relationships and staff covered by the collective bargaining agreement, this Developing Mentors: 18 people participated in series represents 50.6 per cent by headcount and 39.6 per cent of sessions run in-house by Nudge. This program is by payroll. intended to provide a basic understanding of cultural protocols to facilitate effective and respectful communication and engagement with Aboriginal people and communities.
[GRI Disclosures 102-41] DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 107 Moonlight St, Shoreline. Artist impressions are for illustrative purposes only.
4.4.18 STAFF HEALTH AND WELLBEING • Contractor management, including the extension of Our focus contracts/panels, the inclusion of contractually relevant clauses in agreements and the verification of contractor Ensuring a healthy and safety conscious workplace that solvency/liquidity. protects people and creates productive work environments with high quality standards and outcomes. • Managing financial impacts including cash flow modelling and future scenario analysis. Performance • IT Infrastructure to ensure the appropriate sufficiency COVID-19 pandemic response of licenses, hardware, and support services. Since the declaration of the global pandemic, • Sufficiency and quality of communications to internal DevelopmentWA has held regular Crisis Management Team and external stakeholders. A COVID-19 Intranet page meetings, initially weekly, then fortnightly from early to was established and updated. This included links to the mid-2020. A pandemic Plan & checklist were developed latest information including state and federal health after the initial meeting on 3 March 2020, as well as a websites. It also included information on working from Pandemic action status report which focused on: home, and mental and physical health. • Continuity of services. DevelopmentWA has continued • Event management and place activation including event to focus on the continued provision of key services/ cancellation and protection/security of relevant sites. activities and with the mandate of ‘Business as Usual’. As of mid-2020, the Crisis Management team has focused • Education and awareness to ensure staff are cognisant on COVID-19 pandemic recovery strategies, lessons learnt, of current hygiene practices (e.g. social distancing), and the organisations preparedness for a second outbreak. privacy and data security (e.g. approvals) and the A Recovery Action Status Report has been developed to alignment of the Agency with the Sector guidance focus on a return to business in the ‘new normal’. issued. Occupational safety and health (OSH) management • Infrastructure / building management, including liaison systems and agreed mitigations with the Building Manager (e.g. increased cleaning regimes, access and lift protocols) DevelopmentWA operates within the guidance of and changes to internal processes (e.g. changes to AS/NZS 4801:2001 Occupational Health and Safety reception and meeting room protocols). Management Systems. Our internal OSH management system is monitored and audited on a cyclical basis. • Workplace health and safety including identifying and DevelopmentWA’s Occupational Safety and Health addressing the current needs of those personnel who Management System provides the foundations for continued to work in the office, those who worked designing, implementing, monitoring, reviewing and remotely at home and those who were required to adopt continually improving the safety and health of its people a blended model. and business. The overall objective of the management • Workforce planning and management. DevelopmentWA system is to instil the appropriate behaviours and adopted a model which sought to ‘keep our shape’ in processes within the organisation to drive consistent and terms of an office presence and respect the travel and effective application of OSH management at an enterprise, health/hygiene restrictions from both a corporate and project and operational level. project location perspective.
108 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 This Occupational Safety and Health Management Plan OSH training (OSHMP) describes the policies and processes that A compulsory online OSH training module is completed DevelopmentWA will implement at DevelopmentWA’s Perth and assessed every two years by all staff. In 2019-20, 100 Head Office and sites throughout Western Australia. The per cent of staff met this requirement. In addition, all new Plan is intended as a practical document for reference by staff members and contractors receive a face-to-face OSH management, employees and contractors to understand orientation session. and achieve DevelopmentWA’s Occupational Safety and In addition to this all project-related staff are trained Health objectives. The Plan was developed in reference and issued with a Construction Induction Card (White to the following Legislations, Standards, Acts and Card). This course is mandatory for anyone who works on Regulations: a construction site in Australia. OSH training in specific • Western Australian Occupational Safety and Health Act areas such as; 4WD training, Performance Driver training, 1984; First Aid training and Mental Health First Aid training is • Western Australian Occupational Safety and Health available to staff subject to Manager approval and/or job Regulations 1996; requirements.
• AS/NZ 4801:2001; OSH committee DevelpmentWA’s OSH Committee meets quarterly to • ISO 45001; and discuss health and safety issues providing a systematic • Other relevant workplace HSEQ legislation, Codes of and proactive way to address issues and discuss OSH Practice and industry standards. matters. It consists of representatives from all divisions, DevelopmentWA’s OSHMP was updated in June 2020. as well as managers and an Executive General Manager. Four new members joined in 2019-20 with seven per cent of Worksafe accreditation DevelopmentWA’s total workforce represented on the OSH In accordance with the Public Sector Commissioner’s Committee. Committee members commit to a 12-month Circular 2018−20 Code of Practice: Occupational Safety minimum tenure before nominating a new member. and Health in the Western Australian Public Sector, CEOs in Western Australia are required to ensure that an assessment of their agency’s occupational safety and Shenton Quarter at Montario Quarter. Image health management system has been completed within the courtesy of Iris Residential. past five years, using a recognised assessment tool such as the WorkSafe Plan. DevelopmentWA currently holds Platinum WorkSafe Plan Accreditation, which is the highest an agency can achieve. Recertification is due in July 2021.
Artist impressions are for illustrative purposes only.
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 109 OSH performance Table 49 outlines our performance against key OSH measures for DevelopmentWA’s employees.
Table 49: Occupational safety and health incidents Target 2019-20 2018-19 2017-18 2016-17 2015-16 Number of fatalities 0 0 0 0 0 0 Lost time injury 0 0 0 0 0 0 and/or disease incidence rate Lost time injury 0 0 0 0 0 0 and/or disease severity rate Percentage of 0% 0% 0% 0% 0% 0% injured workers returned 0% 0% 0% 0% 0% 0% to work:
(i) within 13 weeks
(ii) within 26 weeks
Note: minor first-aid injuries have not been included in the injury rates.
Statement of compliance to injury management A commitment is in place to provide injury management support to all workers who sustain a work related injury or illness, with a focus on safe and early returns to meaningful work and in accordance with the Worker’s Compensation and Injury Management Act 1981.
Mates in construction program In 2019, DevelopmentWA continued its support of Mates in Construction, an organisation which aims to raise awareness of mental health issues and the high suicide rate in the construction industry. Projects at Shoreline, Nambeelup and Subi East engaged in the program. DevelopmentWA’s Manager of Strategy and Innovation, was nominated for an individual award in the inaugural “Mates Helping Mates” Annual Awards for leadership in improving mental health outcomes for workers and their families in the West Australian Building and Construction Industry. The awards formed part of the annual Mates in Construction WA fundraiser Lunch, an event sponsored by DevelopmentWA.
Mental Health First Aid Skilled Workplace As part of DevelopmentWA’s continued commitment to mental health awareness in the workplace, nine DevelopmentWA staff participated in Mental Health First Aid Training and thirteen staff participated in CALM Lifesaving Suicide Prevention in late 2019. DevelopmentWA maintains its status as a Mental Health First Aid Skilled Workplace: Silver level (10 per cent of workplace trained). To keep the accreditation, DevelopmentWA must maintain our numbers every year. Mental Health First Aid Training expires after two years.
110 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 Employee wellbeing Employee assistance
During 2019-20 our staff wellbeing initiatives resulted in: As part of our corporate health and wellbeing program, an external support and counselling service is provided on a • 92 staff accessing skin cancer checks. commercial basis to assist employees in times of distress, • Over 100 staff electing to take the flu vaccination. loss or personal problems.
• Over 300 registrations across 20 classes, workshops Staff training, engagement, working from home surveys and lectures during ‘Health and Safety Month’ November During 2019-20, DevelopmentWA undertook a number of 2019. internal surveys to inform business improvement activities • 76 staff accessing the fitness subsidy, which seeks to in a variety of areas. This included: a Working from Home encourage regular physical activity. survey that looked at the benefits and drawbacks of working from home due to COVID-19; a Social Club Survey • 105 staff attending quarterly pre-work ‘walk, run, ride’ informed improvements to activities through the Social wellness breakfasts. Club; COLLIDE Innovation survey gathered feedback Annual Health & Safety Month 2019 on the activities during DevelopmentWA’s Innovation Fortnight; and an Electric Vehicle Survey which gauged The largest and most successful Health & Safety Month to the perceptions towards DevelopmentWA’s adoption date concluded on 7 December 2019. It comprised of two of an EV into our fleet. All these internal survey have opening events, eleven seminars, eight exercise classes, assisted in the progression of internal activities to benefit employee health checks, employee hearing checks, a walk, DevelopmentWA and its staff. ride, run breakfast, CALM suicide prevention course and Mental Health First Aid course.
DevelopmentWA Launch at East Perth Power Station
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 111 Kwinana Industrial Estate
4.4.19 ETHICAL AND ACCOUNTABLE DECISION MAKING • Reviews the Framework every two years (or following a Our focus significant change within DevelopmentWA). Maintaining a culture of compliance which values ethical • Undertakes fraud and corruption risk assessments to behaviour, personal and corporate integrity, accountability ensure fraud and corruption risks are captured and and respect for others. managed. Performance • Reviews individual fraud and corruption cases to identify the cause, areas of control weakness, where possible Managing risks related to corruption measures the loss or cost of fraud, and identifies DevelopmentWA has zero tolerance for fraud and lessons learned. corruption and adopts a risk-based, precautionary and • Implements internal audit findings and recommendations proactive approach to ethical and accountable decision to strengthen policies and procedures. making based on prevention. DevelopmentWA manages risk related to corruption across all of its operations. This DevelopmentWA’s Enterprise Risk Management Framework involves a system of procedures and policies that include embeds fraud and corruption risk management to proactively a Fraud and Corruption Control Framework, Code of Ethics mitigate risks posed by fraud and corruption before they and Code of Conduct, fraud audits, directors’ and officers’ occur. The Corporate Risk Register captures strategic and liability insurance risk assessments, corporate risk register operational risks including fraud and corruption, specific (strategic and operational), project risk management, to DevelopmentWA and the environment it operates within. Conflict of Interest Policy, and communication and training. Risks are reviewed and validated quarterly and reported through to the Executive and the Board’s Audit and Risk Our Board is committed to the highest standards of Management Committee. The key risks identified are around corporate governance and uses a range of benchmarks to procurement probity, misuse of DevelopmentWA systems guide its practices, including the Public Sector Management and data, due diligence in human resourcing and falsifying Act 1994, the Corporate Governance principles and financial reporting. While these risks have been identified recommendations as determined by the ASX Corporate there are very strong controls in place to mitigate occurrence. Governance Council (to the extent they can be applied to the organisation), and the Australian Institute of Company Prior to commencement employees must provide certified Directors’ Code of Conduct. DevelopmentWA has its own identification, certified evidence of date of birth, certified Code of Conduct, which is reviewed every two years. evidence of permanent residency in Australia, and if required, evidence of qualifications or medical clearance. A series of policies and protocols are maintained to A National Police Clearance/Certificate is required for all new strengthen and affirm the approach to corporate staff involved in positions of trust, including procurement, governance. These address the key areas of values and finance and executive roles. Previous LandCorp and MRA ethics; trade practices; procurement and tendering; staff were not required to provide a new police clearance as gifts; occupational health and safety; equal employment part of the merger process. One police clearance, and ten opportunity; continuous disclosure of conflicts of interest; identity checks were conducted in 2019-20. and personal duties and responsibilities. Contracts entered into by DevelopmentWA for goods DevelopmentWA’s Fraud and Corruption Control or services are awarded in accordance with the Framework has been developed in line with the Standards DevelopmentWA’s Delegation Schedule. All preferred Australia AS 8001-2008 Fraud and Corruption Control best providers are subject to a stringent assessment process. practice principles to develop a robust approach to fraud Contracts are subject to a rigorous assessment process, and corruption control. To ensure that the Framework which requires submission of a written offer; evaluation is current and relevant for the prevailing operating by a panel, including review of disclosures, compliance environment, DevelopmentWA: and qualitative assessment; and verification of the company’s ABN.
112 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 Communication and training Continuous improvement DevelopmentWA is committed to the openness, probity and In 2019-20, DevelopmentWA made further enhancements accountability in all its undertakings. Through our induction to its transactional processes to further reduce the risk of process, all staff members are made aware of policies and fraud and corruption, including: procedures applying to accountable and ethical decision • The segregation of duties to ensure no single officer making, fraud and corruption awareness. would be able to control all aspects of the payment DevelopmentWA has an online eLearning centre to deliver authorisation process. training courses to staff. Two modules, the ‘Fraud and • Review and validate ‘low value’ purchasing each quarter. Corruption Awareness’ module and ‘Accountable and Ethical Decision Making’ module, are mandatory for all staff • Using live dashboard statistics to increase transactional to complete every two years. The ‘Fraud and Corruption transparency. Awareness’ module aims to raise awareness of and educate • Appointed a new agency to undertake an Internal Audit staff of their fraud and corruption roles and responsibilities. program. The ‘Accountable and Ethical Decision Making’ module aims to highlight what it means to act accountably and Incidents ethically in all decisions and actions, providing staff with No corruption incidents were identified or recorded during an understanding of the Western Australian Public Sector’s the financial year. Accountability Framework.
DevelopmentWA’s intranet is a permanent source of information regarding expected standards of behaviour, policies and procedures. New or revised information and reminders are sent to staff via email. DevelopmentWA promotes its Fraud and Corruption Policy by publishing the Fraud and Corruption Control Framework and procedures on the intranet. DevelopmentWA’s Risk and Compliance Analyst conducts annual presentations promoting the organisations approach and policies in fraud and corruption. Additional training is delivered to staff by external providers, such as the Public Sector Commission, when required.
At 30 June 2020, 100 per cent of staff had completed the ‘Fraud and Corruption Awareness’ module and 100 per cent of staff completed the ‘Accountable and Ethical Decision Making’ within the last two years.
Scarborough Beach shade
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 113 SECTION FIVE GOVERNANCE
Cockburn ARC, Cockburn Central West
114 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 COMMITMENT
Bunuru Festival, Yagan Square, Perth CBD
DevelopmentWA’s approach to We use a range of benchmarks to The Minister for Lands has portfolio corporate governance is based on guide our practices, including the responsibility for DevelopmentWA. a set of values and behaviours that Public Sector Management Act 1994, The legislation sets the foundation for underpin our culture and business Public Sector Commission Principles the corporate governance framework practices. This approach includes a of Good Governance for Boards and and structure to be given effect by commitment to robust governance Committees and the Principles of the Board of directors and defines standards that are fundamental to Good Corporate Governance as reporting requirements. the sustainability of our operations determined by the Australian Stock and performance, and foster a culture Exchange (ASX) (to the extent they of compliance which values ethical can be applied). behaviour, personal and corporate A comprehensive system of integrity, accountability and respect governance practices, developed for others. over many years, ensures, at a This section includes a description minimum, standards set out in the of DevelopmentWA’s main corporate Western Australian Land Authority governance practices, which form a Act 1992, the Statutory Corporations framework to ensure we act with high (Liability of Directors) Act 1996, and the standards of corporate behaviour. Metropolitan Redevelopment Authority Act 2011 are achieved.
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 115 PERFORMANCE
Board of Directors • determining the scope of authority (and any limits on In September 2019 the Western Australian Land Authority authority) which is delegated to the Chief Executive or and Metropolitan Redevelopment Land Authority came any other officer; together to become DevelopmentWA. The Boards of both • ensuring appropriate resources are available to senior entities have common Directors appointed. In this report management; and a reference to the Board includes both Boards unless stated otherwise. • maintaining an emphasis on audit activities. The Board has worked throughout the year to ensure our Board role and responsibilities vision, future directions and strategies are well understood The Board of directors recognises accountability to the and achieved. Following the merger of the Western Government and Minister for Lands. Australian Land Authority and Metropolitan Redevelopment This requires the Board to deliver the objectives and Authority in September 2019, the Board has dedicated functions set out in the Western Australian Land Authority significant time into developing the strategic direction for Act 1992 and Metropolitan Redevelopment Authority Act 2011. DevelopmentWA moving forward.
The Board is accountable to the Government for WALA Board composition DevelopmentWA’s performance with responsibility for: The Board comprises seven independent Directors • setting out corporate directions, submitting the annual appointed by the Minister for Lands in accordance with Statement of Corporate Intent and five-year Strategic relevant provisions of the Western Australian Land Authority Development Plan, including financial targets, to the Act 1992. MRA Board appointed requirements are set out in Minister; Section Seven of this report.
• providing strategic direction and approving significant At least four of the Directors are required to have relevant strategic corporate objectives; experience in housing, industry, commerce, finance, land development, town planning or engineering to provide a • maintaining communication with the Minister and set of relevant experiences and knowledge. The skills and Government; experiences of Directors on the Board during the reporting • maintaining working relationships with Management; period are set out in the Directors’ Report.
• developing and maintaining relationships with key The Chairperson and Deputy Chairperson are appointed by stakeholders, including Government and business partners; the Minister for Lands.
• evaluating Board performance; In accordance with Schedule 1A, Clause 1 of the Western Australian Land Authority Act 1992, Directors may be • evaluating performance of the Chief Executive; appointed for a term of up to three years. The Minister may • planning for Board and Management succession; reappoint Directors for a further term. The Chief Executive may not be appointed as a Director. • monitoring financial and corporate performance; The induction process includes briefings with the • considering and approving half-yearly and annual reports; Chief Executive and senior management, provision of • assessing social, economic and environmental information on key corporate and Board policies, strategic performance; plans and relevant project site visits.
• reviewing, ratifying and monitoring appropriate systems It is expected Directors undertake professional of risk management and legal compliance; development to maintain skills required to discharge their • satisfying itself that appropriate internal control duties. This may include approved industry seminars and mechanisms are in place and are being implemented; education courses.
116 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 The Board and the Chief Executive twice a year and internal auditors more frequently. The Board is responsible for the appointment and External auditors are appointed in accordance with employment contract of the DevelopmentWA Chief DevelopmentWA’s governing legislation. Executive subject to obtaining the Minister’s approval. The Committee comprises a minimum of three Board Day-to-day oversight and management of operations are Directors (not including the Board Chairperson) appointed the responsibility of the Chief Executive who reports to the by the Board. The Committee has a charter setting out Board on issues including: its responsibilities and key activities covering Financial reporting; Internal audit; External audit; and Risk • corporate strategies; management (including internal controls). • human resources; • annual budgeting; Governance and Remuneration Committee • managing day to day operations; • risk management; The Board has established this Committee to assist the Board • operations and major project challenges and in ensuring that appropriate and effective policies, plans and milestones; and practices are in place in relation to: corporate governance; • strategic marketing and communications. Board, Committee and Chief Executive Officer performance management; Board and Executive succession and The role of the Acting Chief Executive Officer remuneration; and Human Resources standards oversight. under the Metropolitan Redevelopment Authority Act 2011 is maintained as an executive position The committee comprises a minimum three Board within DevelopmentWA. Directors appointed by the Board and a charter sets out its responsibilities and key activities. It meets at least Board committees twice a year. The Board has three committees to focus on specific areas: Statutory Planning Committee • Audit and Risk Management (WALA and MRA); The Board has established this Committee as the decision • Governance and Remuneration (WALA); and making body for the Western Australian Land Authority’s • Statutory Planning (WALA). statutory planning responsibilities as defined in the Hope Details on the MRA Land Development Committees can be Valley-Wattleup Redevelopment Act 2000; and Perry Lakes found in the MRA Compliance Report on page 181-182. Redevelopment Act 2005.
Each committee reviews its Terms of Reference and The committee comprises a minimum of three Board membership annually, with any proposed changes directors appointed by the Board and a charter sets out its submitted to the Board for approval. Minutes of all responsibilities and key activities. It meets at least twice a year. committee meetings are provided to the next Board Board Meetings meeting. A director may attend committee meetings even if he or she is not a member of the committee. Board meetings are held at such times and places as the Board determines. Following the merger of the WALA and Audit and Risk Management Committee MRA in September 2019, joint Board meetings have been The Board has established this Committee to assist the held. The Chairperson sets the agenda for each meeting Board to fulfil its corporate governance and oversight in consultation with the Chief Executive. Any Director responsibilities in relation to accounting policies, financial may request to have a matter added to the agenda. reporting, internal controls systems, risk management Comprehensive papers on matters for consideration by systems and the internal and external audit functions. the Board are provided to the Directors.
The Committee has direct access to external auditors, Members of the Office of the Chief Executive and other internal auditors and senior management. The Committee members of the senior management group attend parts of meets regularly, meeting external auditors at least the Board meetings by invitation.
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 117 Board Access to Information and professional advice Where a Director makes a declaration of a conflict, the Directors have access to information via Executive. Board may allow the Director to partially participate in discussion of the agenda item, make a statement to the The Directors, Board and Committees, in carrying out Board prior to leaving the meeting room or request the their duties, may seek external legal and expert advice at Director leave the meeting immediately. Agenda papers DevelopmentWA’s expense. They may seek this advice after are also redacted for Directors where a conflict of interest consultation with the Chairperson. is identified.
Performance evaluation The Conflict of Interest Policy also applies to staff and The Board Chairperson is responsible for reviewing Board contractors who, when conflicted, are required to make a performance, monitoring the contribution of individual formal disclosure to the Chief Executive who determines Directors and counselling them on areas that may improve the management action required. These interests are also Board performance. recorded in the Declarations of Interest Register.
Each Board committee reviews its performance annually Ethical standards against its chartered roles, which is then reported to the DevelopmentWA is governed by the Public Sector Governance and Remuneration Committee. Management (PSM) Act 2004, the Western Australian The performance evaluation of the Chief Executive Land Authority (WALA) Act 1992 and the Metropolitan is undertaken by the Board though the Chairperson. Redevelopment Authority Act 2011. A performance agreement and targets are set and reviews Between them, these Acts require DevelopmentWA and its are undertaken a minimum of twice annually. employees to comply with
Executive performance evaluation is undertaken by • any Acts governing their conduct (including those the Chief Executive in line with agreed performance mentioned above); agreements and targets which are reviewed twice annually. • Public Sector Commissioner’s instructions; DevelopmentWA has a strong culture of achievement via • applicable human resource management standards and performance agreements for all staff which clarify roles principles; and and responsibilities, goals and targets (aligned to the annual business plan) as well as specific development plans. • applicable codes of ethics and conduct. Conflicts of interest Employees are also required to: A Conflict of Interest policy is in place detailing management • act with integrity in the performance of official of such matters. This policy accords with standards set by duties and are to be scrupulous in the use of official the Western Australian Public Sector Commissioner. information, equipment and facilities; and
New Directors appointed to the Board are required to • exercise proper courtesy, consideration and sensitivity in declare financial and pecuniary interests at their first their dealings with members of the public and employees. meeting. A standing protocol dictates where a Director The DevelopmentWA Code of Conduct incorporates all these would disclose an interest in any item on the Board meeting requirements and provides guidance on a set of principles agenda. Disclosures are recorded in the meeting minutes, that reflects its approach to business and applies to anyone with a copy placed into a Declarations of Interest Register. working for or on behalf of DevelopmentWA including Board, Any Director who considers he or she has a conflict of interest executive, staff and internal contractors and consultants. is required to give other Directors immediate notice. These The Code of Conduct is part of the onboarding process, interests are recorded in the Declarations of Interest Register. available to staff at all times via the intranet and document management system and supported by training and awareness-raising sessions.
118 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 DevelopmentWA adopts a risk-based, precautionary and The Minister tables the annual Statement of Corporate proactive approach to our operations, with zero tolerance Intent and Operational Plan in the Parliament. The Minister to fraud and corruption. DevelopmentWA manages risk was provided with all the documents within the timeframes related to corruption across all operations at a corporate prescribed in the WALA Act and MRA Act. level. This involves a system of procedures that include: Beyond the legislative requirements, there is a commitment a Code of Conduct; fraud audits and training (including to ensuring the Government is fully informed on significant accountable and ethical decision making training); activities and developments. This commitment is achieved directors and officers liability insurance risk assessments; by provision of information and advice to the Minister for corporate risk register, and a series of policies. Lands, and includes, but is not limited to, annual reports, A series of policies and protocols are maintained to half-year reports and budget submissions as well as strengthen and affirm the approach to corporate responses to specific requests from Parliament, Members of governance. These address the key areas of: Parliament, agencies and the public. • values and ethics; Ministerial direction • trade practices; The Minister may give directions in writing to the Board of directors with respect to the performance of the functions • procurement and tendering; prescribed under the legislation. The Board has maintained • gifts; a procedure with respect to responding to Ministerial • occupational health and safety; direction. This procedure enables the Board to comply with the Metropolitan Redevelopment Authority Act 2011, • equal employment opportunity; Western Australian Land Authority Act 1992 and Statutory • continuous disclosure of conflicts of interest; and Corporations (Liability of Directors) Act 1996.
• personal duties and responsibilities. There were no Ministerial directions during the reporting period. The Governance and Remuneration Committee reviews the Code of Conduct as part of a regular review process, prior to approval by the Board. Shareholder
The Minister for Lands has portfolio responsibility for DevelopmentWA. The Minister for Planning is also engaged on projects and planning as required by relevant legislation. Ministerial Reporting Governing legislation sets out reports which are to be provided to the Minister.
The Strategic Development Plan and Statement of Corporate Intent provide the Minister with details on activities, key objectives, strategies and operational targets. Both are submitted to the Minister for approval annually, with the consent of the Treasurer.
The MRA Operational Plan for the 2019/20 financial year was submitted by the MRA for approval of the Minister subject to the Minister having obtained the Treasurer’s prior approval, in compliance with the provisions of section 113 of the Parkside Walk, Jolimont MRA Act.
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 119 Ministerial approvals The WALA Act requires DevelopmentWA to obtain the Minister’s approval for transactions in which the consideration is equal to or exceeds five percent of the value of total reported assets as set out in the most recent annual report. There have been two transactions of this nature approved by the Minister in 2019-20. Ministerial Review Section 48 of the WALA Act requires the Minister to carry out a review of the operation and effectiveness of the WALA Act within six months after every fifth anniversary of the commencement of the Western Australian Land Authority Act Amendment 2004. In the course of this review the Minister must have regard to:
(a) effectiveness of the operations of the Authority;
(b) need for the continuation of the functions of the Authority; and
(c) other matters as appear to the Minister to be relevant to the operation and effectiveness of this Act.
The next Review commenced in mid-2020 with the Report due to be submitted to the Minister by the end of 2020.
Section 133 of the MRA Act requires that the Minister must carry out a review of the operation and effectiveness of the MRA Act as soon as is practicable after the fifth anniversary of section 133 (the Review). The Review must have regard to: a) the need for the continuation of the MRA Act; and b) any other matters that appear to the Minister for Lands to be relevant to the operation and effectiveness of the MRA Act.
The Review was undertaken in conjunction with the Land Agency Reform Process seeking to amalgamate MRA and LandCorp, with a focus on the learnings from the first six years of the MRA’s operations. The Review was tabled in Parliament on 18 February 2020. The recommendations of the Metropolitan Redevelopment Authority Legislative Review are to be considered as part of the WALA Act Legislative Review to ensure DevelopmentWA achieves the Government’s development objectives
120 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 CORPORATE COMPLIANCE DISCLOSURES
Freedom of Information The DevelopmentWA onboarding process for all staff The provisions of the Freedom of Information (FOI) Act and contractors includes on-line records management 1992 apply to DevelopmentWA and statistics relating to training, including information on employees’ roles and applications received for this reporting period are shown responsibilities and how they comply with the approved below. We work with applicants to facilitate full disclosure Recordkeeping Plan. Completion of the course is monitored of documents where appropriate. and documented and there is an opportunity to provide feedback on course content. An Information Statement in accordance with the FOI Act, providing information about DevelopmentWA Public interest disclosure and how to make an FOI request is available at The Public Interest Disclosures Act 2003 facilitates the http://www.developmentwa.com.au. disclosure of public interest information and provides protection for those who make disclosures and those who FOI Statistics 2019-2020 are the subject of disclosures. Access applications received 8 DevelopmentWA has three officers who can assist with Applications transferred to another agency 1 enquiries and implement internal procedures developed to Applications withdrawn 0 ensure compliance with obligations under the Act.
Applications processed 7 No disclosures were received this year. Access in full 1 Environmental regulation and management Edited access 6 Day-to-day operations are subject to regulation under Documents not found/do not exist 1 both Commonwealth and State environmental legislation Access refused applicable to any Australian commercial entity. These include: Access deferred 0 • Waterways Conservation Act (WA) 1976; Access given (s.28) 0 • Environmental Protection Act (WA) 1986;
Applications carried over from previous years 0 • Environment Protection and Biodiversity Conservation Internal reviews received 1 Act (Commonwealth) 1999; External reviews received 0 • Contaminated Sites Act (WA) 2003; and • Biodiversity Conservation Act 2019. Record keeping compliance In accordance with Section 61 of the State Records Act 2000 and the State Records Commission Standards (Standard 2 – Principle 6), DevelopmentWA has an approved Recordkeeping Plan. The Plan describes how records are created, maintained, managed and disposed of in accordance with DevelopmentWA’s standards and principles. Regular reviews of recordkeeping practices and systems are conducted and any opportunities for improvement addressed.
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 121 WALA Reportable expenditure Risk management The Electoral Act 1907 (Section 175 ZE) requires the DevelopmentWA’s Risk Management Framework aligns disclosure of certain categories of expenditure. Details of to ISO 31000:2018 Risk Management Guidelines, the the organisations contracted and the amounts paid for the international standard for risk management and provides financial year are as follows: a consistent approach to the recognition, measurement and evaluation of risks across our business. It also Advertising $ 1,294,366 supports Executive Management and the Board in meeting The Brand Agency their corporate governance responsibilities. Media Advertising $ 351,446 The primary focus of our risk management governance Carat Australia Media Services structure and internal control systems is to identify, assess and mitigate material business risks with the aim of Adcorp Australia Limited Initiative Media enhancing value to our shareholder and protecting assets. Market Research $ 74,781 Risk management assessments are undertaken at strategic, Research Solutions operational and project level. Our risk assessment system Thinkfield cascades from the strategic plan through to operational and Painted Dog project plans and integrate into key performance indicators and individual performance plans. Our Corporate Risk Direct mail $ 0 Register contains strategic and operational risks. Polling $ 0 Another key ingredient in having a positive and proactive risk Total Expenditure $ 1,720,593 culture is having a well-defined organisational risk appetite to drive behaviour and outcomes. In general, we have a ‘low’ risk appetite, with exception in areas of safety and health, fraud, corruption, misconduct and willful breaches of confidentiality, where risk appetite is “zero”. ‘Moderate’ and ‘high’ risk is only tolerated in specific areas subject to a full understanding of the potential benefits and risks, the required authorisation being obtained and effective controls being fully in place.
The framework and approach were reassessed and authorised in November 2019.
The Board has established the Audit and Risk Management Committee to assist it to carry out its corporate governance and oversight responsibilities in relation to risk management.
122 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 DIRECTORS’ REPORT
The Western Australian Land Authority Board of Directors presents its report for the financial year ended 30 June 2020. Directors The Western Australian Land Authority Act 1992 prescribes that the Board is to comprise between five and seven Directors at any one time with the Minister for Lands being responsible for Board appointments.
Persons who held the office of Director during the course of the year were as follows:
Director Date First Appointed Appointment Term George McCullagh (Chairperson) 28 September 2010* 31 December 2020 Simon Read 27 April 2010 31 December 2020 Kylee Schoonens 1 September 2016 30 June 2020 Jane Bennett 1 January 2018 31 December 2020 Rebecca Field (Deputy) 1 January 2018** 31 December 2020 Dale Page 1 January 2018 30 June 2020 Simon Reed 16 October 2019 31 December 2021
* Director G McCullagh was subsequently appointed WALA Deputy Chairperson 22 June 2015 and Chairperson 1 January 2018. ** Director R Field was subsequently appointed Deputy Chairperson 16 October 2019
The qualifications, experience and particular responsibilities of each Director are set out below. Current Directors: George McCullagh was initially appointed clients on the legal, strategic and risk management issues Director of the WALA Board in September 2010, associated with property development and redevelopment George became Deputy Chairperson in June projects and the sale, acquisition and leasing of large 2015 and as of 1 January 2018 chairs the Western commercial, retail, industrial, pastoral, agricultural and Australian Land Authority and Metropolitan Redevelopment tourism assets. Rebecca also has many years’ experience Authority Boards. George was previously a Partner in property and development finance. with the international consulting firm Deloitte. He has worked as a consultant in independent practice providing Simon Read was appointed to the WALA Board commercial and advisory services to a range of planning, on 27 April 2010, as of 1 January 2018 was infrastructure, transport and redevelopment organisations appointed to the Metropolitan Redevelopment in Western Australia. George is a Member of the Australian Authority Board, and currently chairs the joint Institute of Company Directors. WALA and MRA Audit and Risk Management Committee. His hands-on skill set has been honed over 25 years of working Rebecca Field was appointed to the WALA with Australia’s leading corporate recovery specialists. He and MRA Boards on 1 January 2018 and was has specialised in corporate reconstruction, turnaround appointed Deputy Chairperson on 16 October and business improvement. Simon currently runs a 2019. Rebecca is the Chairperson of the WALA consulting business specialising in the complex area of Board’s Governance and Remuneration Committee security and the role of the Personal Property Securities and a member of the joint WALA and MRA Audit and Act. He has worked across many industries with significant Risk Management Committee. Rebecca is a graduate experience in forestry, mining, engineering, finance and of the Australian Institute of Company Directors. She property. Simon is a Graduate of the Australian Institute of is also a partner at Corrs Chambers Westgarth. Known Company Directors and a Chartered Accountant. for her combination of excellent technical ability, good commercial sense and strategic thinking, Rebecca advises
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 123 Kylee Schoonens was appointed to the WALA Dale Page was appointed to the WALA and MRA Board on 1 September 2016, as of 1 January Boards on 1 January 2018 and is a member of the 2018 was appointed to the Metropolitan WALA Board’s Statutory Planning Committee, Redevelopment Authority Board. She chairs the WALA Governance and Remuneration WALA Board’s Statutory Planning Committee, is a member Committee, and is also Chairperson of the Armadale and of the WALA Governance and Remuneration Committee, Subiaco Land Redevelopment Committees. As Director and is Chairperson of the Midland and Scarborough Land of Planning and Community Development at the City of Redevelopment Committees. As experienced Architect Joondalup since 2010, Dale is responsible for statutory and and Director of her own architectural practice, Kylee has strategic urban planning, building approvals, environmental led the design and delivery of many aged care, multi- health (including immunisation), planning and building residential, retirement and community projects across compliance (including swimming pools), community Western Australia. She was the recipient of the 2015 development activities and the City of Joondalup’s four Australian Institute of Architects WA Emerging Architect libraries. Dale has considerable experience in delivering Award and the 2014 40under40 Award for her work within land development projects throughout Western Australia, the architectural profession. Kylee is also a Non-Executive previously working in senior roles at the East Perth and Director for Bethanie, WA’s largest not-for-profit aged Subiaco Redevelopment Authorities and LandCorp. care provider and a Residential committee member for the Property Council of Australia (WA Division). She previously Simon Reed was appointed to the WALA held roles as a Division Councillor for the Property Council Board on 16 October 2019, and MRA Board on and a Chapter Councillor for the Australian Institute of 1 January 2020, and is a member of the joint Architects. Kylee is a Graduate of the Australian Institute of WALA and MRA Audit and Risk Management Company Directors. Committee. Simon is also head of the Perth Corporate Jane Bennett was appointed to the WALA Group for law firm Herbert Smith Freehills. Simon has over and MRA Boards on 1 January 2018 and is 20 years of experience as a corporate lawyer, advising a member of the WALA Board’s Statutory both listed and private companies as well as government Planning Committee and Chairperson of the and statutory bodies. Simon specialises in governance Central Perth Land Redevelopment Committee. With matters, mergers and acquisitions, capital markets and extensive experience as a practising town planner in corporate re-constructions. He has acted for clients in local government and private practice, she has been a range of sectors including mining, energy, financial instrumental in the planning and delivery of major services, manufacturing and property. Simon has strong residential, commercial and industrial projects in Western relationships with all key stakeholders in the Australian Australia, as well as major government and institutional corporate regulatory landscape. projects. Jane is a strong advocate for, and actively Simon holds a Bachelor of Laws with honours and a involved in the planning reform agenda. She holds a Bachelor of Economics. Simon also holds a Graduate Bachelor of Arts in Urban and Regional Planning, a Masters Diploma of Applied Finance and Investment (corporate in Business Administration and is a graduate of the finance major) from FINSIA. He was previously a board Australian Institute of Company Directors. Jane was made member for WA Music. a Fellow of the Planning Institute of Australia in 2015 for her contribution to planning. Jane is an owner and Director at CLE Town Planning and Design and is a member of the Western Australian Planning Commission. Jane is a Urban Development Institute of Australia WA Councillor and Chair of the Planning Committee.
124 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 Directors’ Meetings Details of attendance by Directors at Board meetings and Board Committee meetings is set out below:
Audit and Risk Governance and Statutory Management Remuneration Planning Director WALA Board Committee Committee Committee Meetings Eligible to Meetings Eligible to Meetings Eligible to Meetings Eligible to Attended Attend1 Attended Attend1 Attended Attend1 Attended Attend1 George McCullagh 12 12 42 - 22 - 12 - Simon Read 11 12 4 4 - - - - Kylee Schoonens 12 12 - - - - 1 1 Jane Bennett 11 12 - - 2 2 1 1 Rebecca Field 12 12 4 4 2 2 - - Dale Page 10 12 2 2 2 2 1 1 Simon Reed3 8 8 32 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 Director appointed to the WALA Board 16 October 2019
Principal Activities (e) to identify other potential centres of population, including those in need of urban renewal, and use its The Western Australian Land Authority, trading as powers to bring about the provision or improvement of DevelopmentWA, is a Government trading enterprise land, infrastructure, facilities or services for the same. established under the provisions of the Western Australian Land Authority Act 1992. There have been changes to the nature of principal activities during the financial year. The Western The Act sets out a clear role for DevelopmentWA to ensure Australian Government’s land agency reform changes the State’s future land needs are met in a commercially announced in November 2017, included the merger of the responsible manner and establishes lines of accountability Western Australian Land Authority and the Metropolitan with the State Government. Redevelopment Authority. In September 2019 both The functions are: Authorities came together to become DevelopmentWA. (a) to be an agency which provides, or promotes, the A new Executive and leadership team was formed and the provision of land for the social and economic needs of Authorities co-located to one head office in December the State; 2019. The merger has enabled the integration of planning and project delivery on major Government priority projects (b) to be an agency through which the Crown and public and a balance sheet restructuring project has been authorities may dispose of land; undertaken to strengthen DevelopmentWA’s capacity for (c) to be an agency through which local governments and future project delivery. (Further information can be found regional local governments may dispose of land in in Section 2.3.2 Future direction –Government Reform of accordance with the Local Government Act 1995; the Annual Report).
(d) to complete the development of the Joondalup Centre, in accordance with the plan referred to in Section 18 on the land described in Schedule 2; and
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 125 Financial Highlights In line with commercial principles specified in Section 19 of the Western Australian Land Authority Act 1992, development work was undertaken against the following Framework:
• to act in accordance with commercial principles;
• perform functions in a cost-efficient manner;
• endeavour to surpass long-term financial targets specified in its Strategic Development Plan; and
• ensure no new project had an expected rate of return below a minimum hurdle rate specified in the Strategic Development Plan. DevelopmentWA and Government have agreed to set the hurdle rate of return as Weighted Average Cost of Capital.
2019-20 2018-19 2017-18 2016-17 2015-16 Operating Results ($M) ($M) ($M) ($M) ($M) Profit Before Income Tax Equivalents 3.532 9.742 9.648 22.915 46.789 Income Tax Equivalents Expense 1.201 2.988 2.874 5.002 14.073 Net Profit 2.331 6.754 6.774 17.913 32.716
Returns to the state As specified in section 32 of the Western Australian Land Authority Act 1992, DevelopmentWA pays rates and taxes. The following table outlines payments to Government in the last five years in respect of rates, taxes and dividends.
The Western Australian Land Authority Act 1992 specifies determination of the dividend by the Board and Minister. The Board of Directors is required to make a dividend recommendation to the responsible Minister as soon as practicable after the end of each financial year. The Minister is required to consult with the Treasurer and either accept the recommendation or otherwise determine the dividend payable by DevelopmentWA.
The Treasurer determines the date the dividend is paid.
2019-20 2018-19 2017-18 2016-17 2015-16 Operating Results ($M) ($M) ($M) ($M) ($M) Dividends Paid 8.443 37.869 53.779 43.219 31.653 Land Tax 41.815 40.626 42.969 47.357 54.257 Income Tax Expense 1.201 2.988 2.874 5.002 14.073 Local Government Rate Equivalents 7.510 7.780 7.009 8.147 7.412 Stamp Duty 1.163 0.590 1.336 0.785 5.891 Total Returns to Government 60.132 89.853 107.967 104.510 113.286
126 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 Events subsequent to balance date In the interval between the end of the financial year and the date of this report, there has not arisen any item, transaction or event of a material or unusual nature likely, in the opinion of the Directors, to significantly affect operations, the result of those operations, or the state of affairs in future financial years. Likely developments and future results We will continue to work with Government, stakeholders and customers to deliver the functions set out in the Western Australian Land Authority Act 1992.
Expected future trading results, as set out in its 2020-21 Statement of Corporate Intent:
($M) Sales Revenue (GST exclusive) 210.4 Sundry Revenue 136.3 Cost of Land Sold (134.8) Estate Costs (56.5) Operating Costs (134.4) Profit before Interest and Tax 21.0 Net Interest Expense (6.1) Income Tax Expense (4.1) Profit after Income Tax 10.8
Payments to Government (through the Consolidated Fund) are expected to total around $71.4 million from 2020-21 operations. This includes tax equivalents, stamp duty on land acquisitions and expected dividends.
East Perth Power Station
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 127 REMUNERATION REPORT
Remuneration arrangements for key personnel refers to non-executive Directors of the WALA Board and Executives responsible for planning, directing and controlling operations.
Policy for determining the nature and amount of emoluments for key personnel is designed to attract, retain and engage appropriately qualified and experienced Directors and Executives. A Board committee, the Governance and Remuneration Committee, assists the Board by ensuring that appropriate and effective policies, plans and practices are in place in relation to remuneration arrangements and meets regularly to consider relevant matters.
Emoluments Directors’ emoluments In accordance with Section 13(c) of Schedule 3A of the Western Australian Land Authority Act 1992, the following table shows the nature and amount of each element for each director.
The remuneration of directors is determined following independent advice from remuneration consultants and the Public Sector Commission and approved by the Minister. Remuneration is in the form of salary and superannuation contributions. No further post-employment benefits are paid to Directors.
Director remuneration covers fees for attendance at Board and committee meetings. Directors are not remunerated separately for Board and committee attendance.
Period of Membership during Reporting WALA Fees Director Period $ George McCullagh (Chairperson) 1 July 2019 to 30 June 2020 110,157 Rebecca Field (Deputy Chair) 1 July 2019 to 30 June 2020 67,110 Simon Read 1 July 2019 to 30 June 2020 53,129 Kylee Schoonens 1 July 2019 to 30 June 2020 53,129 Jane Bennett 1 July 2019 to 30 June 2020 53,129 Dale Page 1 July 2019 to 30 June 2020 53,129 Simon Reed 16 October 2019 to 30 June 2020 37,190
Superannuation, at the required amount (9.5 per cent), is paid on fees as is required under the Superannuation Guarantee Administration Act 1992.
WALA Superannuation Director $ George McCullagh (Chairperson) 10,465 Rebecca Field (Deputy Chair) 6,375 Simon Read 5,047 Kylee Schoonens 5,047 Jane Bennett 5,047 Dale Page 5,047 Simon Reed 3,533
128 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 Directors’ Benefits In accordance with Section 13(c) of Schedule 3A of the No Directors have received benefits, or are entitled to Western Australian Land Authority Act 1992, the details of receive any benefit, (other than included in the total amount emoluments provided to the five named officers receiving of emoluments received or due and receivable by Directors) the highest emoluments are provided for the financial year by way of a contract made by DevelopmentWA with the by element of remuneration: Director, a firm of which the Director is a member or with an Salary element entity in which the Director has a substantial interest. Salary Paid Executive Emoluments Executives $ The Chief Executive and Executives receive a salary and Frank Marra 516,046 superannuation contributions in line with Government Dean Mudford 404,577 entitlements. Where eligible, the private use component of a vehicle is provided. Decisions are made within the Kerry Fijac 336,919 context of organisational and individual performance, and John Hackett 332,342 consistent with equivalent bodies, industry benchmarks, Fiona Barclay 327,597 existing government policy and the industrial relations system. Superannuation element A total fixed remuneration (TFR) approach applies with flexible remuneration packaging arrangements, in line Executives are paid superannuation in accordance with with industry best practice. This means that, although the Superannuation Guarantee Administration Act 1992 the components of the TFR or package may vary between and the State Superannuation Act 2000. Currently the remuneration reviews, the total amount remains constant. prescribed level under the Superannuation Guarantee Administration Act 1992 is 9.5% of salary. Two Executives Superannuation paid is according to legislation and (Frank Marra and Kerry Fijac) are members of both the Gold availability of other benefits (e.g. vehicles) is subject to State and West State funds administered by GESB and organisational policy and eligibility requirements. receive approximately 15% of their salary in contributions Staff remuneration is reviewed annually. The Board is to superannuation. Gold State Super was a defined benefit responsible for the remuneration of the Chief Executive super scheme open to WA public sector employees until which is also reviewed annually (in line with Minister- 1995. West State was an accumulation fund and closed to approved contract of employment). The Chief Executive, new members in 2007. in line with the policy set by the Governance and Super Paid Remuneration Committee and the Board, sets executive Executives $ remuneration based on annual salary survey data and advice from independent remuneration consultants as well Frank Marra 77,235 as a range of other factors including performance and the Dean Mudford 38,435 public sector context. Kerry Fijac 50,472 Employees in management roles, including executives, John Hackett 31,572 are employed on individual, market-based contracts. No Fiona Barclay 31,122 short or long term incentives, loans, grant options, rights or shares to key management personnel are provided.
Performance of the Chief Executive and Executives is monitored against agreed criteria.
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 129 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 DevelopmentWA vehicles attract a contribution from the employee to reduce FBT.
Vehicle benefit Executives $ Frank Marra 15,482 Fiona Barclay 8,539 Kerry Fijac 7,537 John Hackett 6,555 Dean Mudford 6,503
Indemnification and insurance of Directors and Officers During the reporting period, Directors’ and Officers’ liability insurance was maintained to ensure directors and officers are adequately covered. The policy indemnifies directors and officers from loss which he/she becomes legally obligated to pay on account of any claim first made against him/her during the policy period for an insured act committed before or during the policy period.
The Authority has entered into deeds of indemnity with each Director and Officer to indemnify the Director and Officer in relation to certain liabilities incurred whilst a Director or Officer of the Authority.
At the date of this report, no claims have been made against the Directors’ and Officers’ insurance policy. Rounding of amounts Amounts are rounded to the nearest thousand dollars in the Directors’ Report and financial statements, unless otherwise shown or indicated.
This Report is made in accordance with a resolution of the Board.
George McCullagh Simon Read Board Chairperson Audit and Risk Management Committee Chairperson
14 September 2020 14 September 2020
130 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 Elizabeth Quay, Perth CBD
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 131 SECTION SIX FINANCIAL STATEMENTS
Shoreline, North Coogee
132 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 DIRECTORS’ DECLARATION
FOR THE YEAR ENDED 30 JUNE 2020
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:
(i) giving a true and fair view of the Western Australian Land Authority’s financial position as at 30 June 2020 and of its performance, for the financial year ended on that date; and
(ii) complying with Australian Accounting Standards and the Corporations Regulations 2001. b) in the Directors’ opinion, there are reasonable grounds to believe that the Western Australian Land Authority (“WALA”) 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 Board Chairperson Audit and Risk Management Committee Chairperson
14 September 2020 14 September 2020
[GRI Disclosures 102-45] DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 133 134 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 135 WESTERN AUSTRALIAN LAND AUTHORITY WESTERN AUSTRALIAN LAND AUTHORITY STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2020
2020 2019 Note $’000 $’000 Continuing Operations
Operating revenue 2(a) 267,510 256,675
Operating expenses 2(b) (177,680) (158,895)
Gross Profit 89,830 97,780
Other revenue 2(a) 4,209 4,586
Estate holding expenses (37,872) (36,164)
Employee benefit expenses (22,351) (22,492)
Consultant expenses (3,153) (4,041)
Advertising, public relations and sponsorship (4,265) (4,781)
Impairment loss on trade receivables (2,345) (94)
Other expenses 2(b) (18,312) (19,357)
Results from operating activities 5,741 15,437
Finance income 2(a) 2,071 477
Finance costs (4,280) (6,172)
Net finance costs (2,209) (5,695)
Profit before income tax 3,532 9,742
Income tax expense 3 (1,201) (2,988)
Profit for the year 2,331 6,754
Total comprehensive income for the year 2,331 6,754
The Statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes.
136 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 WESTERN AUSTRALIAN LAND AUTHORITY WESTERN AUSTRALIAN LAND AUTHORITY STATEMENT OF FINANCIAL POSITION
FOR THE YEAR ENDED 30 JUNE 2020
2020 2019 Note $’000 $’000 CURRENT ASSETS Cash and cash equivalents 16(a) 19,483 19,074 Receivables 4,17 52,812 60,427 Inventories 5 301,404 272,845 Other assets 9 6,870 6,790 Total current assets 380,569 359,136
NON-CURRENT ASSETS Receivables 4,17 8,691 605 Inventories 5 565,169 492,120 Infrastructure, property, plant and equipment 6 302,559 265,130 Right of Use Assets 7 7,023 - Deferred tax assets 8 27,669 28,636 Other assets 9 28,282 30,638 Total non-current assets 939,393 817,129
TOTAL ASSETS 1,319,962 1,176,265
CURRENT LIABILITIES Payables 10,17 23,582 29,470 Borrowings 14 46,100 85,000 Current tax liabilities 11 657 679 Provisions 12 10,878 9,817 Lease liabilities 7 2,311 - Other liabilities 13 10,985 8,139 Total current liabilities 94,513 133,105
NON-CURRENT LIABILITIES Provisions 12 2,156 4,170 Loans and borrowings 14 189,400 140,500 Lease liabilities 7 5,043 - Other liabilities 13 36,810 35,745 Total non-current liabilities 233,409 180,415
TOTAL LIABILITIES 327,922 313,520
NET ASSETS 992,040 862,745
EQUITY Contributed equity 15 551,787 413,370 Retained earnings 440,253 449,375 TOTAL EQUITY 992,040 862,745
The Statement of financial position should be read in conjunction with the accompanying notes.
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 137 WESTERN AUSTRALIAN LAND AUTHORITY WESTERN AUSTRALIAN LAND AUTHORITY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2020
$’000 $'000 $'000 Contributed Retained Total Equity Earnings
Balance at 1 July 2018 409,015 480,490 889,505
Total comprehensive income for the year
Profit for the year - 6,754 6,754
Total comprehensive income for the year - 6,754 6,754
Transactions with owners recorded directly in equity
Dividends (note 23) - (37,869) (37,869)
Contributions of equity (note 15) 4,355 - 4,355
Balance at 30 June 2019 413,370 449,375 862,745
Balance at 1 July 2019 as previously stated 413,370 449,375 862,745
Opening balance adjustment on application of AASB15 note 1(e) - (3,010) (3,010)
Balance at 1 July 2019 as restated 413,370 446,365 859,735
Total comprehensive income for the year
Profit for the year - 2,331 2,331
Other comprehensive income - - -
Total comprehensive income for the year - 2,331 2,331
Transactions with owners recorded directly in equity -
Dividends (note 23) - (8,443) (8,443)
Contributions of equity (note 15) 138,417 - 138,417
Balance at 30 June 2020 551,787 440,253 992,040
The Statement of changes in equity should be read in conjunction with the accompanying notes.
138 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 WESTERN AUSTRALIAN LAND AUTHORITY WESTERN AUSTRALIAN LAND AUTHORITY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2020
2020 2019 Note $'000 $’000 CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers 224,194 253,675 Operating subsidies received 73,839 56,238 Payments to suppliers and employees (287,217) (264,533) Interest received 212 498 Income tax paid (1,982) (3,121) Net cash from operating activities 16(b) 9,046 42,757
CASH FLOWS FROM INVESTING ACTIVITIES Payments for infrastructure, property, plant and equipment (3,165) (96) Proceeds from sale of infrastructure, property, plant and equipment - 3 Net cash (used in) investing activities (3,165) (93)
CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from equity contribution - 4,355 Proceeds from borrowings 58,500 68,000 Repayment of borrowings (48,500) (61,500) Payment of dividends (8,443) (37,869) Payment of lease liabilities (2,306) - Finance interest paid (4,723) (6,789) Net cash (used in) financing activities (5,472) (33,803)
Net increase in cash and cash equivalents 409 8,861 Cash and cash equivalents at 1 July 19,074 10,213 Cash and cash equivalents at 30 June 16(a) 19,483 19,074
The Statement of cash flows should be read in conjunction with the accompanying notes.
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 139 WESTERN AUSTRALIAN LAND AUTHORITY WESTERN AUSTRALIAN LAND AUTHORITY NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
The Western Australian Land Authority Fair value which is both the functional and (WALA) is the Western Australian presentation currency of WALA. Fair value within the scope of AASB13 Government’s land and property All values are rounded to the nearest is the price that would be received development agency with its office and thousand dollars ($’000). to sell an asset or paid to transfer principal place of business as follows: a liability in an orderly transaction c) Use of estimates and judgements Level 2 between arm’s length market The preparation of financial 40 The Esplanade participants at the measurement statements in conformity with PERTH, WA 6000 date, or estimated using another Australian Accounting Standards valuation technique. WALA is a not-for-profit (NFP) entity that requires management to make is controlled by the State Government of In estimating the fair value of an judgements, estimates and Western Australia. asset or a liability, WALA takes into assumptions that affect the account the characteristics of the application of accounting policies Note 1 Summary of significant asset or liability if market participants and the reported amounts of assets, accounting policies would take those characteristics into liabilities, income and expenses. The following accounting policies have account when pricing the asset or Actual results may differ from been adopted in the preparation of the liability at the measurement date. the estimate. financial statements. Unless otherwise Fair value for measurement or Estimates and underlying stated these policies are consistent with disclosure purposes in these financial assumptions are reviewed on those adopted in the previous year. statements is determined on such a an ongoing basis. Revisions to The financial statements were basis, except for leasing transactions accounting estimates are recognised authorised for issue by the Directors on that are within the scope of AASB 16, in the period in which the estimate 24 August 2020. and measurements that have some is revised and in any affected future similarities to fair value but are not periods. In particular, information a) Basis of preparation fair value, such as net realisable value about significant areas of estimation The financial statements constitute in AASB 102 or value in use in AASB 136. uncertainty and critical judgements a general purpose financial in applying accounting policies that All assets and liabilities for which fair report which has been prepared have the most significant effect on value is measured or disclosed in the in accordance with the Western the amount recognised in the financial financial statements are categorised Australian Land Authority Act 1992 statements are described in the within their fair value hierarchy and Australian Accounting Standards following notes: (including Australian Interpretations) based on the lowest level input adopted by the Australian Accounting that is significant to the fair value • Note 2 Revenue, with reference to Standards Board (AASB). The financial measurement as a whole: the partnering assessment under AASB 11 statements do not apply AASB 8: • Level 1: Quoted (unadjusted) • Note 4 Receivables, with reference Operating Segments, and AASB 120: market prices in active markets for to Note 17 Financial Instruments Accounting for Government Grants and identical assets or liabilities • Note 5 Inventories, with reference Disclosure of Government Assistance. • Level 2: Valuation techniques to COVID-19 on valuations for which the lowest level input The financial statements have been • Note 7 Right of Use assets, with that is significant to the fair value prepared on the accrual basis of reference to Lease liability measurement is directly or indirectly accounting using the historical cost • Note 15 Equity with reference to observable convention. Accounting policies the fair value assessment of assets • Level 3: Valuation techniques have been applied in a manner which transferred from the Metropolitan for which the lowest level input ensures the resulting financial Redevelopment Authority and The that is significant to the fair value information satisfies the concepts of Department of Jobs, Tourism, measurement is unobservable relevance and reliability. Science and Innovation b) Functional and presentation currency • Note 17 Financial Instruments The financial statements are • Note 19 Commitments presented in Australian dollars, • Note 20 Related party disclosures
140 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 WESTERN AUSTRALIAN LAND AUTHORITY WESTERN AUSTRALIAN LAND AUTHORITY
Note 1 Summary of significant accounting policies(continued)
d) Application of new and revised effective for an accounting period current year. AAS B15 was effective Accounting Standards that begins on or after 1 January from 1 July 2019. In accordance Standards and Interpretations 2019 thus, relevant to this financial to elections available under this affecting amounts reported in the year end. Accounting Interpretation standard, the cumulative effect of current period (or prior periods). IFRIC 23 and Accounting Standards initially applying this standard has AASB 15, AASB 1058 and AASB 16 have been recognised as an adjustment In the current year, WALA has been adopted in accordance to the to the opening balance of retained reviewed all new and revised transitional provisions applicable to earnings. Comparative information for accounting standards and each standard. June 2019 continues to be prepared interpretations issued by the in accordance to accounting policies AASB 15 Revenue from Contracts with Australian Accounting Standards as disclosed in the 30 June 2019 Customers has been applied in the Board (AASB) that are mandatorily Financial Report.
AASB15 Revenue from Contracts with Customers This Standard supersedes AASB 118: Revenue and AASB 111: Construction Contracts The new standard establishes a five-step model to account for revenue arising from contracts with its customers. Under AASB 15. Revenue is recognised at an amount that reflects the consideration to which the entity expects to be entitled in exchange for transferring goods and services to the customer. AASB 15 has been adopted using the modified retrospective method of adoption with the date of application being 1 July 2019. Under this approach, the standard has been applied to contracts that are not completed at the initial date of application. The cumulative impact of applying AASB 15 is recognised at the date of initial application as an adjustment to the opening balance of retained earnings. Further detail included below in Note 1 (e). Changes in significant accounting policy.
AASB1058 Income for not for Profits has been applied in the current financial year. AASB 1058 was effective from 1 July 2019.
AASB1058 Income of Not-for-Profit entities 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 occur under contracts 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. AASB 1058 establishes principles for Not-for-Profit entities that apply to transactions where the consideration to acquire an asset is significantly less than fair value principally to enable a Not-for-Profit entity to further its objectives; and the receipt of volunteer services. AASB 1058 is applied in conjunction with AASB 15 Revenue from Contracts with Customers. Further detail included below in Note 1 (e). Changes in significant accounting policy.
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 141 WESTERN AUSTRALIAN LAND AUTHORITY WESTERN AUSTRALIAN LAND AUTHORITY
Note 1 Summary of significant accounting policies(continued)
AASB 16 Leases has been applied in the current financial year. AASB 16 was effective from 1 July 2019.
AASB 16 Leases AASB 16 replaces the existing AASB 117 Leases and provides a comprehensive model for the identification of lease arrangements and their treatment in the financial statements of both lessees and lessors. Leases previously reported as operating leases will be reported on the Statement of financial position as a ‘Right of Use’ asset along with a corresponding lease liability. An expedience exception is available for short term or low value leases. Further detail included below in Note 1 (e). Changes in significant accounting policy.
Interpretation 23 Uncertainty over Income Tax has been applied in the current financial year. Interpretation 23 was effective from 1 January 2019 Interpretation 23 Uncertainty over Income Tax Treatments and AASB 2017-4 Amendments to Australian Accounting Standards – Uncertainty over Income Tax Treatments Interpretation 23 clarifies the accounting for uncertainties in income taxes. The interpretation is to be applied to the determination of taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates (‘tax amounts’), when there is uncertainty over income tax treatments under AASB 112 Income Taxes. The Interpretation requires an entity to: • Use judgement to determine whether each tax treatment should be considered independently or whether some tax treatments should be considered together • Assume that a taxation authority with the right to examine any amounts reported to it will examine those amounts and will have full knowledge of all relevant information when doing so • Determine tax amounts on a basis that is consistent with the tax treatment included in its income tax filings if an entity concludes that it is probable that a particular tax treatment will be accepted by the taxation authorities • Determine tax amounts using the most likely amount or expected value of the tax treatment (whichever provides better predictions of the resolution of the uncertainty) where an entity concludes that it is not probable that a particular tax treatment will be accepted by the taxation authority
e) Changes in significant accounting expedients on transition allowed by The new accounting policies for revenue policies the standard, WALA has not restated and other income in accordance with WALA has applied the changes required comparative financial information in AASB 15 and AASB 1058, are provided in upon implementation of AASB 15, this year’s results. The cumulative effect note 1(u). of applying these standards has been AASB 1058 and AASB 16 to the results for The effect of applying AASB 15 is as an adjustment to opening retained the 2019-20 reporting period. described as follows, there was no impact earnings, at the date of application. The of applying AASB 1058; AASB15 and AASB1058 Practical expedient has been applied to AASB 15 and AASB 1058, with the date of these standards retrospectively only to initial application of 1 July 2019, have been non-complete contracts on the date of adopted using the modified retropective application. method of transition. Due to the practical
142 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 WESTERN AUSTRALIAN LAND AUTHORITY WESTERN AUSTRALIAN LAND AUTHORITY
Note 1 Summary of significant accounting policies(continued)
Statement of Financial Position (Extract) 30 June 2019 AASB 15 1 July 2019 Amounts under Transition Amounts under Notes AASB 118 Adjustments AASB 15
$’000 $’000 $’000 Assets Current Receivables 1 60,427 ( 5,361) 55,066 Current Inventories 2 272,845 2,351 275,196 TOTAL ASSETS 1,176,265 ( 3,010) 1,173,255
NET ASSETS 862,745 ( 3,010) 859,735
Equity Retained Earnings 1,2 449,375 ( 3,010) 446,365
TOTAL EQUITY 862,745 ( 3,010) 859,735
1. Adjustment for receivable balances of incomplete sales contracts at the date of application of AASB 15. 2. Adjustment for inventory balances for incomplete sales contracts at the date of application of AASB 15.
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 143 WESTERN AUSTRALIAN LAND AUTHORITY WESTERN AUSTRALIAN LAND AUTHORITY
Note 1 Summary of significant accounting policies (continued)
AASB 16 assets and are disclosed separately in these contracts are treated as a lease operating commitments note 24(b). WALA under AASB 16. Only new leases entered AASB 16 with the date of initial application has not restated comparative financial into or modified on or after 1 July 2019 will of 1 July 2019, has been adopted using information in this year’s results. be assessed against the definition of a the modified retrospective method of lease in AASB16. transition. Due to the practical expedients The New Accounting policy for leases is on transition allowed by the standard, included in Note 1 (p). Reconciliation of operating lease WALA has chosen to measure the right- commitments under AASB 117 and lease On transition, WALA elected to apply the of-use asset at an amount equal to the liabilities under AASB 16 practical expedient to grandfather the lease liability, adjusted for any prepaid assessment of which transactions are or The below table explains the difference or accrued lease payments relating to contain leases. This means that Leases between lease commitments disclosed that lease, recognised in the statement previously declared leases under AASB in the prior year under AASB 117 and the of financial position immediately prior 117, have not been reassessed, whether value of the lease liability under AASB 16 to application. Short term and low value or not they contain a lease, in accordance on 1 July 2019. leases are not included in the right-of-use with definition of a lease under AASB 16,
Opening Balance as at 01 July 2019 $’000 Operating lease commitments disclosed as at 30 June 2019 11,482 Discounted using West Australian Land Authority weighted average incremental borrowing rate of 2.1% (398) (Less) : Short-term and low value leases recognised on a straight line basis as an expense (22) (Less) : Operating costs included in lease commitments but not part of leased asset (2,664)
Lease Liability recognised as at 1 July 2019 8,398
f) 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 and, considered relevant for assessment at WALA, but not yet effective.
144 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 WESTERN AUSTRALIAN LAND AUTHORITY WESTERN AUSTRALIAN LAND AUTHORITY
Note 1 Summary of significant accounting policies(continued)
Operative for reporting periods beginning on or after AASB 1059 Service Concession Arrangements: Grantors 1 January 2020 AASB 1059 addresses the accounting for service concession arrangements by a grantor (Implementation that is a public sector agency. Transactions, included in the scope of this standard, are date amended by required to be recognised as a service concession asset with a corresponding liability AASB 2018-5) recorded at the commencement of the arrangement. WALA has assessed that it does not currently manage any partnerships that are within the scope of this standard and will continue to assess future arrangements to ensure appropriate application of AASB 1059 where required. AASB 2018-6 Amendments to Australian Accounting Standards- Definition of a Business 1 January 2020 This Standard amends AASB 3 to clarify the definition of a business, assisting entities to determine whether a transaction should be accounted for as a business combination or as an asset acquisition. WALA has assessed and this standard has no financial impact. AASB 2018-7 Amendments to Australian Accounting Standards- Definition of Material 1 January 2020 This Standard amends AASB 101 and AASB 108. The amendments refine the definition of material in AASB 101. The amendments clarify the definition of materiality and its application by improving the wording and aligning the definition across AASB Standards and other publications. A misstatement of information is material if it could reasonably be expected to influence decisions made by primary users. WALA has assessed and this standard has no financial impact. AASB 2019-1 Amendments to Australian Accounting Standards- References to the Conceptual Framework 1 January 2020 This Standard sets out amendments to Australian Accounting Standards, Interpretations and other pronouncements to reflect the issuance of the Conceptual Framework for Financial Reporting (Conceptual Framework ) by the AASB. WALA has assessed and this standard has no financial impact. AASB 2019-2 Amendments to Australian Accounting Standards- Implementation of AASB 1059 1 January 2020 This standard makes amendments to AASB 16 and AASB 1059. The amendments are (a) amend the modified retrospective method set out in paragraph C4 of AASB 1059; (b) modify AASB 16 to provide a practical expedient to grantors of a Service Concession Arrangement that AASB 16 not be applied to service concession assets under AASB 1059; and (c) include editorial amendments to the application guidance and implementation guidance accompanying AASB 1059. WALA has assessed that it does not currently manage any partnerships that are within the scope of this standard. AASB 2020-1 Amendments to Australian Accounting Standards- Classification of Liabilities as Current 1 January 2020 or Non-Current This Standard amends AASB 101 to clarify requirements for the presentation of liabilities in the statement of financial position as current or non-current. WALA has assessed and this standard has no financial impact.
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 145 WESTERN AUSTRALIAN LAND AUTHORITY WESTERN AUSTRALIAN LAND AUTHORITY
Note 1 Summary of significant accounting policies(continued) g) Payables Depreciation is not charged on including non-monetary benefits, and Payables, including accruals not yet freehold land. Infrastructure, annual leave expected to be settled billed, are recognised when WALA property, plant and equipment are within 12 months of the reporting becomes obliged to make future systematically depreciated over their date are recognised in the provision payments as a result of a purchase useful lives in a manner which reflects for employee benefits in respect of assets or services. Payables the consumption of their future of employees’ services up to the have terms of 30 days. Payables are economic benefits. Depreciation reporting date. They are calculated measured initially at fair value and is provided for on the straight line at undiscounted amounts based on subsequently at amortised cost using basis to write off the net cost of each the wage and salary rates, including the effective interest method. asset over its expected useful life to related on-costs such as workers its estimated residual value. WALA compensation insurance and payroll h) Infrastructure, property, plant and reviews depreciation rates annually. tax that WALA expects to pay as at equipment reporting date. Non-accumulating The following estimated useful non-monetary benefits such as Recognition and measurement lives are used in the calculation medical care and cars are expensed Items of infrastructure, property, of depreciation for each class of based on the net marginal cost to plant and equipment are stated at depreciable asset unless another Western Australian Land Authority as cost less accumulated depreciation method provides a better estimate of the benefits are taken by employees. and impairment losses. Cost useful life: Long service leave includes expenditure that is directly Buildings 25 - 40 years attributable to the acquisition of The liability for long service leave Furniture & Office the asset. is recognised in the provision for Equipment 4 - 10 years An item of infrastructure, property, employee benefits and measured as plant and equipment may be gifted Computer Equipment 3 years the present value of expected future or contributed to WALA. Under these Leasehold Improvements 3 years payments to be made in respect of circumstances, the deemed cost of services provided by the employees the item is its market value as at the Plant & Equipment 10 - 50 years up to the reporting date plus related date it was gifted or contributed. Infrastructure 22 years on-costs. Consideration is given to expected future wage and salary Subsequent costs The assets’ residual values and useful levels, and periods of service. The costs of replacing part of an item lives are reviewed, and adjusted Unconditional long service leave of infrastructure, property, plant and if appropriate, at each balance provisions and pre-conditional equipment are recognised in the sheet date. leave entitled within 12 months are carrying amount of the item if it is Items of infrastructure, property, classified as current liabilities as probable that the future economic plant and equipment costing less WALA does not have an unconditional benefits embodied within the part than $1,000 are expensed in the year right to defer the settlement of the will flow to WALA and the cost can of acquisition (other than where they liability for at least 12 months after be measured reliably. The carrying form part of a group of similar items the end of the reporting period. The amount of the replaced part is which are significant in total). provision for conditional long service derecognised. The costs of day-to- Capital works in progress includes leave entitled later than 12 months is day maintenance and servicing of expenditure on assets which are under classified as a non-current liability, infrastructure, property, plant and construction but not substantially as WALA has an unconditional right equipment are recognised in profit or complete at the reporting date. to defer the settlement of the liability loss as incurred. until the employee has completed the Depreciation i) Employee benefits requisite years of service. Wages, salaries, annual leave Depreciation is based on the cost An actuarial assessment of long of an asset less its residual value. Liabilities for wages and salaries, service leave undertaken as at 30
146 I DEVELOPMENT WA ANNUAL REPORT 2019/20 WESTERN AUSTRALIAN LAND AUTHORITY WESTERN AUSTRALIAN LAND AUTHORITY
Note 1 Summary of significant accounting policies(continued)
June 2016 determined that the liability as part of the cost of acquisition laws that have been enacted or measured using the short-hand of an asset or as part of an item substantively enacted by the reporting measurement technique, mentioned of expense date. Current tax for current and prior above, was not materially different periods is recognised as a liability • Receivables and payables which from the liability determined using the (or asset) to the extent it is unpaid are recognised inclusive of GST actuarial cost method. An actuarial (or refundable). assessment will be conducted at The net amount of GST recoverable Deferred tax regular intervals to ensure the from, or payable to, the taxation shorthand method is still appropriate. authority is included as part of Deferred tax is accounted for using receivables or payables. the balance sheet liability method. Superannuation Deferred tax assets and liabilities are Cash flows are included in the Obligations for contributions to recognised for temporary differences Statement of cash flows on a gross defined contribution superannuation at the tax rates expected to apply basis. The GST component of funds are recognised as an expense in when the assets are recovered, or cash flows arising from investing the Statement of profit or loss when liabilities are settled. and financing activities which are they are due. recoverable from, or payable to, the The relevant tax rates are applied to j) Contributed equity taxation authority is classified as the cumulative amounts of deductible operating cash flows. and taxable temporary differences Capital contributions have been to measure the deferred tax asset designated as contributions by owners m) Income Tax or liability. Deferred tax assets and and have been credited directly to WALA entered into the National Tax liabilities are not recognised if Contributed Equity in the Statement Equivalent Regime (NTER) in 2001/02 the temporary differences giving of financial position only when such whereby an equivalent amount in rise to them arise from the initial contributions have been designated respect of income tax is payable to recognition of assets and liabilities by the Department of Treasury as a the Department of Treasury. The (other than as a result of a business contribution by the owner at the time calculation of the liability in respect combination) which affects neither of or prior to the transfer. of income tax is governed by NTER taxable income nor accounting profit. k) Foreign currency guidelines agreed by the State Furthermore, a deferred tax liability is Government. The Australian Taxation All foreign currency transactions not recognised in relation to taxable Office administers the NTER. during the year are brought to account temporary differences arising from using the exchange rate in effect at As a consequence of participation in the recognition of goodwill. the date of the transaction. Foreign the NTER, WALA is required to comply Deferred tax assets are recognised currency monetary items at the with Accounting Standard AASB 112: for deductible temporary differences reporting date are translated at the Income Taxes. only if it is probable that future taxable exchange rate existing at that date. Current tax amounts will be available to utilise Exchange differences are recognised those temporary differences. in profit or loss in the period in which Current tax is the expected tax In determining the amount of current they arise. payable or receivable on the taxable income or loss for the year, using and deferred tax, WALA takes into l) Goods and services tax tax rates enacted or substantively account the impact of uncertain tax Revenues, expenses, assets and enacted at the reporting date, and positions and whether additional liabilities are recognised net of the any adjustment to tax payable in taxes and interest may be due. amount of goods and services tax respect of previous years. Current WALA believes that its accruals (GST), with the exception of: tax is calculated by reference to the for tax liabilities are adequate for amount of income taxes payable or all open tax years based on its • GST incurred which is not recoverable based on the taxable assessment of many factors, including recoverable from the taxation profit or loss for the period. It is interpretations of tax law and prior authority. This GST is recognised calculated using tax rates and tax experience. This assessment relies on
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 147 WESTERN AUSTRALIAN LAND AUTHORITY WESTERN AUSTRALIAN LAND AUTHORITY
Note 1 Summary of significant accounting policies(continued)
estimates and assumptions and may by recognising amounts on a line initial recognition right of use assets are involve a series of judgements about by line basis in accordance with the measured at cost, less any accumulated future events. New information may accounting standards applicable depreciation, impairment losses, and become available that causes WALA to the particular assets, liabilities, adjusted for any changes to the lease. to change its judgement regarding the revenues and expenses in relation Right of use assets are depreciated on a adequacy of existing tax liabilities; to the Group’s interest in the joint straight line basis over the shorter of the such changes to tax liabilities will operation. lease term. impact tax expense in the period of Key judgements are applied when At the commencement date of the lease, such a determination. concluding if joint control does lease liabilities are measured at the Deferred tax assets and liabilities are exist based on the decision making present value of lease payments to be offset if there is a legally enforceable rights of the parties in relation to made over the lease term. The lease right to offset current tax liabilities relevant key decisions associated payments include fixed payments, less and assets. This occurs when the with the operations / development any incentives receivable, and amounts transactions relate to income taxes agreements. Refer to Note1 ( c) expected to be paid under residual levied by the same tax authority on the value guarantees. In calculating the same taxable entity, or on different p) Lease arrangements present value of the lease payments, tax entities, but they intend to settle At inception of a contract, WALA an incremental borrowing rate at the current tax liabilities and assets on a assess if the contract is, or contains lease commencement date is used, as basis or their tax assets, and liabilities a lease. A contract contains a lease if the implicit interest rate is not readily will be realised simultaneously. the contract conveys a right to the use determinable. After the commencement of an identified asset for a period of date, the lease liability increases by the n) Inventory – land held for sale time in exchange for consideration. accretion of interest and reduced by the Land held for sale comprising A contract is assessed for; payments made. The lease liability is development properties is carried adjusted for any lease payments made at the lower of cost or net realisable i) The use of an identified asset before the commencement date and any value (based on undiscounted cash ii) If the substantial rights additional direct costs attributable to flows). Land Inventory includes and control of the asset are the lease. developed land, undeveloped land and transferred to the customer over Concessionary Peppercorn Leases includes the cost of acquisition and the period of use development. Developed land, whilst Leased assets arising from significantly predominantly vacant lots, can include iii) The customer has the right below market leases are measured at buildings. Amounts are disclosed as to obtain substantially all the fair value at the inception of the lease current where it is anticipated that economic benefit of the asset over whereas the lease liability is recognised land will be developed ready for sale the period of use. at present value of peppercorn lease within twelve months after reporting Accounting for leases as Lessee payment amounts. The difference date. The net realisable value between the right-of-use asset and lease On inception of a lease contract, as represents the estimated selling price liability is recorded as income in the lessee, WALA recognises a right-of- use less all estimated costs of completion income statement under AASB1058. asset and lease liability. Where the lease and costs necessary to make the sale. is short term, twelve months or less, or WALA has elected to measure o) Joint Operations of low- value, under five thousand, the concessionary leases at cost in accordance with AASB16 paragraphs A joint operation is a joint practical exemption is applied. Short 23–25, which incorporates the amount arrangement whereby the parties that term and Low value lease expenses are of the initial measurement of the lease have joint control of the arrangement disclosed under lease arrangements liability. have rights to the assets and note 24. obligations for the liabilities relating The right of use asset is initially measured to the arrangement. Investments in at cost and is equal to the initial joint operations are accounted for measurement of lease liability. After
148 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 WESTERN AUSTRALIAN LAND AUTHORITY WESTERN AUSTRALIAN LAND AUTHORITY
Note 1 Summary of significant accounting policies(continued)
Accounting for leases as Lessor contract is considered to exist where All income and expenses relating to WALA has a contract under which financial assets that are recognised WALA is a lessor in a number of operating the unavoidable costs of meeting the in the Statement of profit or loss leases of industrial, grazing and obligations under the contract exceed are categorised under financial residential property. These assets are the economic benefits expected to be income and expenses, except recognised on the Statement of financial received under it. for the impairment allowance position as items of infrastructure, of trade receivables which is property, plant and equipment or r) Financial assets presented separately on the inventory. Refer to Note 1(h) and Note 1(n) All financial assets, aside from long Statement of profit or loss and other for accounting treatment. term trade receivables that have comprehensive income. been present valued, are initially q) Provisions De-recognition of financial assets measured at fair value and adjusted Provisions are recognised when for transaction costs (where WALA derecognises a financial asset WALA has a present obligation applicable). Trade receivables that are only when the contractual rights to (legal or constructive) as a result of not present valued are measured at the cash flows from the financial a past event, and it is probable that transaction price. asset expire, or when it transfers the an outflow of resources embodying financial asset and substantially all the economic benefits will be required Analysis of the implementation of risks and rewards of ownership of the to settle the obligation and a reliable AASB 9 Financial Instruments and asset to another party. estimate can be made of the amount details regarding the classification, of the obligation. measurement and impairment of If WALA neither transfers nor retains financial assets are contained in Note substantially all the risks and rewards Provisions are measured at the 17 Financial Instruments. of ownership and continues to present value of management’s best control the transferred asset, WALA estimate of the expenditure required Effective interest method recognises its retained interest in the to settle the present obligation at the The effective interest method is a asset and an associated liability for reporting date. If the effect of the time method of calculating the amortised amounts it may have to pay. If WALA value of money is material, provisions cost of a debt instrument and of retains all the risks and rewards of are determined by discounting the allocating interest income over ownership of a transferred financial expected future cash flows at a pre- the relevant period. The effective asset substantially, WALA continues tax rate that reflects current market interest rate, is the rate that exactly to recognise the financial asset assessments of the time value of discounts estimated future cash and also recognises a collateralised money and, where appropriate, the receipts, (including all fees on borrowing for the proceeds received. risks specific to the liability. The points paid or received that form an On de-recognition of a financial asset increase in the provision due to the integral part of the effective interest in its entirety, the difference between passage of time is recognised as a rate, transaction costs and other the asset’s carrying amount and the finance cost. premiums or discounts), through the sum of the consideration received When some or all of the economic expected life of the debt instrument, and receivable and the cumulative benefits required to settle a provision or (where appropriate) a shorter gain or loss that had been recognised are expected to be recovered from period, to the net carrying amount on in other comprehensive income and a third party, the receivable is initial recognition. accumulated in equity is recognised in recognised as an asset if it is virtually Commercial bills and term deposits the Statement of profit or loss. certain that recovery will be received with fixed or determinable payments and the amount of the receivable can s) Receivables and fixed maturity dates that WALA be measured reliably. Trade and other receivables are has the positive intent and ability recognised at amortised cost, less Onerous Contracts to hold to maturity are classified as any impairment losses. Refer to cash investments and are measured Present obligations arising under accounting policies for financial at amortised cost using the effective onerous contracts are recognised and assets under Note 1(r) financial assets. interest method less any impairment. measured as a provision. An onerous
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 149 WESTERN AUSTRALIAN LAND AUTHORITY WESTERN AUSTRALIAN LAND AUTHORITY
Note 1 Summary of significant accounting policies(continued)
t) Impairment of assets Financial assets good or service to a customer, at an amount that reflects the Non-financial assets Aside from those trade receivables consideration to which WALA is that are not present valued, financial The carrying amounts of WALA’s expected to be entitled in exchange assets are initially measured at assets, other than deferred tax assets, for the goods or services. Revenue are reviewed at each reporting date fair value adjusted for transactions Recognition is based upon the costs (where applicable). Upon to determine whether there are any transfer of control rather than the implementation of AASB 9 Expected indicators of impairment. If any such transfer of risks and rewards. indicators of impairment exist then, Credit Loss (ECL) ratios are calculated the asset’s recoverable amount is and applied to financial assets If the consideration for the contract estimated. The recoverable amount based on a more forward-looking contains variable consideration, for intangible assets, that have an analysis of anticipated credit losses. WALA estimates the amount of the indefinite life or are not yet available Financial assets are classified into consideration to which it is entitled, for use, is estimated annually and risk portfolios and the anticipated ECL to the extent that it is highly probable whenever there is an indication of ratio is recalculated at each reporting that a significant reversal of the impairment. date where it is assessed that the risk cumulative revenue recognised of default is likely to change over the will not occur when the associated An impairment loss is recognised life of the asset. uncertainty with the variable if the carrying amount of an asset consideration in resolved. exceeds its recoverable amount. Expected credit losses for the Impairment losses are recognised reporting period are calculated by WALA uses the practical expedient in profit or loss. The recoverable applying the appropriate calculated in AASB 15, and does not adjust the amount of an asset is the greater of ratio to the carrying amount of the consideration for the effects of a its value in use and its fair value less financial asset. The financial asset significant financing component if it costs to sell. In assessing the value in is then reduced by this impairment expects, at contract inception, that use, the estimated future cash flows amount. When a trade receivable is the period between the transfer of the are discounted to their present value uncollectible, it is written off against goods or services to the customer, using a pre-tax discount rate that the impairment allowance account. and when the customer pays for reflects current market assessments Subsequent recoveries of amounts that good or service will be one year of the time value of money and the previously written off are credited or less. against the allowance account. risks specific to the asset. Contract Assets and Contract Changes in the carrying amount of the Liabilities are disclosed separately Impairment losses recognised in impairment allowance account are to identify assets and liabilities in prior periods are assessed at each recognised in profit or loss. reporting date for any indications relation to contracts with customers. Further analysis of the application that a loss has decreased or no Land Sales longer exists. An impairment loss is of AASB 9 Financial Instruments reversed if there has been a change in to WALA financial assets and the Contracts for land sales are assessed the estimates used to determine the resulting impairment judgments and to identify the performance recoverable amount. An impairment calculations is contained in Note 17 obligations contained in the contract. loss is reversed only to the extent that Financial Instruments. Typically, land sales contain one the asset’s carrying amount does not performance obligation, when the u) Revenue recognition exceed the amount that would have transfer of the land is made to the been determined, net of depreciation Revenue from Contracts with customer. The transfer of the land or amortisation, had no impairment Customers would normally be at settlement, or when control of the land has loss been recognised in prior periods. Revenue from contracts with transferred to the customer. At this customers is recognised when point revenue is recognised. the WALA satisfies a performance obligation, by transferring a promised
150 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 WESTERN AUSTRALIAN LAND AUTHORITY WESTERN AUSTRALIAN LAND AUTHORITY
Note 1 Summary of significant accounting policies(continued)
Royalty Revenue Unearned Revenue w) Cash and cash equivalents
Contracts for royalty payments are Unearned revenue comprises prepaid Cash comprises cash on hand and earned when resources from the rental income, upfront capital lease demand deposits. Cash equivalents land are sold to a customer. The payments and partnering agreement are highly liquid investments with performance obligation is satisfied, participation fees received but not yet short periods from inception to when there has been a transfer to the earned. Unearned revenue is released maturity, are readily convertible customer, and revenue is recognised. to income as and when the services to cash and are subject to an for which it was paid are delivered. insignificant risk of changes in value. Rental Income Other Income x) Rounding Rental revenue generated from operating leases, where the WALA is a Other revenue is recognised when the All amounts in the financial Lessor, is recognised as income on a amount of revenue can be measured report have been rounded to the straight line basis over the rental term reliably and it is probable that nearest thousand dollars unless in accordance to AASB 117. economic benefits will flow to WALA. otherwise indicated.
Interest Income v) Operating Subsidy project funding y) Comparative amounts Interest revenue is recognised on a WALA receives operating subsidy When the presentation or time proportionate basis that takes funding for certain projects from classification of items in the financial into account the effective yield on the the Department of Treasury and report is amended, comparative principal sum of the financial asset, in other Government agencies as amounts are reclassified unless the accordance to AASB 9. a contribution towards either reclassification is impracticable. holding costs, land acquisitions or When comparative amounts are Project Management Revenue land development and associated reclassified, WALA discloses: Project management revenue costs. This funding is required to • the nature of the classification is recognised in profit or loss in ensure WALA achieves its hurdle proportion to the stage of completion rate of return on these projects • the amount of each item or class of the transaction at the reporting and is recognised as revenue in the of items that is reclassified date. The stage of completion is Statement of profit or loss and other • the reason for the reclassification assessed by reference to surveys of comprehensive income when received work performed. by WALA. Expenses relating to the Participation Fee Income fundinge ar expensed in the statement of profit or loss when incurred. At 30 Participation Fee revenue is June 2020 WALA had $27,931,552 recoginised in the profit and loss in (2019 $27,994,232) in unspent grant proportion to the sale of lots over the funding that had been received total precinct, at the reporting date. and not yet spent. Unspent grant Services earned free of charge funding can only be used for Royalty for Regions projects or projects that Services received free of charge are receive operating subsidy funding. recognised as revenue when and only when a fair value can be reliably determined, and the services would have been purchased if they had not been donated. Consequently, use of those resources is recognised as an expense.
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 151 WESTERN AUSTRALIAN LAND AUTHORITY WESTERN AUSTRALIAN LAND AUTHORITY NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
2020 2019 $'000 $'000 Note 2 Profit before income tax Profit before income tax includes the following items of revenue and expense
a) Operating Revenue Contracts with Customers(i) Land sales 140,192 152,798 Royalties 1,049 1,641 Total Operating Revenue with Customers 141,241 154,439
Grants to fund operating subsidy projects 47,063 20,369 Property rent revenue 45,530 36,785 Property expenses recovery 7,172 6,998 Grants to fund operating subsidy projects - holding costs 25,933 35,869 Project management revenue 571 2,215 Total operating revenue 267,510 256,675
Other revenue Participation fees 660 908 Other 3,549 3,678 Total other operating revenue 4,209 4,586
Non-operating revenue Finance Revenue 2,071 477 Total non-operating revenue 2,071 477
Total other revenue 6,280 5,063
(i) AASB15 Revenue from Contracts with Customers using the modified restrospective approach at the date of initial application, being 1 July 2019. Refer to note 1 (e) for further details.
b) Expenses from operating activities Operating expenses Cost of sales (93,471) (96,332) Operating subsidy project expenditure (47,520) (25,463) Property management expenses (36,689) (37,100) Total operating expenses (177,680) (158,895)
Other expenses from operating activities Administration expenses (3,235) (7,250) Accommodation expenses (875) (2,673) Land study expenses (1,797) 100 Loss on sale of infrastructure, property, plant and equipment - (6) Depreciation and amortisation (12,405) (9,528) Total other expenses from operating activities (18,312) (19,357)
152 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 WESTERN AUSTRALIAN LAND AUTHORITY WESTERN AUSTRALIAN LAND AUTHORITY NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
2020 2019 $'000 $'000 Note 3 Income tax expense WALA has adopted Interpretation 23 for the first time in the current year. Interpretation 23 sets out how to determine the accounting tax position where there is uncertainty over income tax treatments. Assessment according to the interpretation has determined there is no uncertainties in the tax position taken, and therefore WALA’s accounting tax position will be consistently applied in the Income Tax Return. The major components of tax expense and the reconciliation of the expected tax expense based on the effective tax rate at 30% (2019: 30%) and the reported tax expense in the Statement of profit or loss and other comprehensive income are as follows: Current tax expense comprises: Current year 2,302 3,370 Current tax expense - under provision in respect of prior years (2,068) 3,456 Current tax 234 6,826
Deferred tax expense (1,242) (430) Deferred tax expense - under provision in respect to prior years 2,209 (3,408) Deferred tax 967 (3,838)
Total income tax expense 1,201 2,988
Numerical reconciliation between tax expense and pre-tax accounting profit Accounting Profit before Income Tax 3,532 9,742
Income tax using WALA’s domestic rate of 30% (2019: 30%) 1,059 2,923 Non-deductible expenses 1 17 Under provision in respect of prior years 141 48
Total income tax expense reported in the Statement of Profit or Loss and 1,201 2,988 other Comprehensive Income
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 153 WESTERN AUSTRALIAN LAND AUTHORITY WESTERN AUSTRALIAN LAND AUTHORITY NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
2020 2019 $'000 $'000 Note 4 Receivables Current Trade receivables 53,221 55,606 Expected Credit Loss (i) (2,518) (185) 50,703 55,421 GST receivable 2,109 5,006 Total current receivables 52,812 60,427
Non-current Trade receivables 8,691 605
Total receivables 61,503 61,032
The carrying amount of net trade receivables is equivalent to fair value as settlement is due within 30 days.
(i) The maximum exposure to credit risk at the end of the reporting period for trade receivables is the carrying amount of the asset inclusive of any expected credit loss as shown in the table at Note 17 “Financial Instruments”. Refer Note 17 for further discussion of financial risks associated with receivables.
154 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 WESTERN AUSTRALIAN LAND AUTHORITY WESTERN AUSTRALIAN LAND AUTHORITY NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
2020 2019 $'000 $'000 Note 5 Inventories Current - land under development and developed land at cost 256,094 237,498 at net realisable value 45,310 35,347 Total current inventories 301,404 272,845
Non-current - undeveloped land and developed land at cost 550,355 477,199 at net realisable value 14,814 14,921 Total non-current inventories 565,169 492,120
Total inventories 866,573 764,965
Land held for sale comprises Cost of acquisition 460,777 362,521 Development costs 405,796 402,444 Total inventories 866,573 764,965
The valuations of developed land held for sale have been determined based on advice from independent valuers and real estate agents in accordance with WALA list price and valuation policies. Land valued at net realisable value has been determined based on robust internal calculations. 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 2020. Land Valuations were obtained as at 1 January 2020, prior to the impact of the COVID-19 pandemic. Management have considered COVID-19 impact on valuations and no adjustment is required to the valuations as at 30 June 2020. Management continue to monitor the COVID situation on inventory. Undeveloped land valuations were provided by the Western Australian Land Information Authority (Landgate) (Valuation Services) and McGees Property. All undeveloped land holdings will be independently valued every two years, and Metropolitian undeveloped land will be independently valued every year. During the year $88,971,214 of land was transferred to WALA from the Metropolitan Redevelopment Authority. The land was transferred at fair value in accordance with AASB 13, through contribution to equity. Refer to Note 15. Fair Value valuations, were performed by Colliers International and McGees Property. During the year $10,370,000 of land inventory was transferred from the Department of Jobs, Tourism, Science and Innovation to WALA. The land was transferred at fair value in accordance with AASB 13, through contribution to equity. Refer to Note 15. Fair Value valuations were performed by Western Australian Land Information Authority (Landgate) (Valuation Services). Market value of developed land and undeveloped land held at 30 June 2020 amounted to $1,445,593,754 (2019: $1,315,409,068). At 30 June 2020 the write-down of inventories to net realisable value amounted to $4,982,703 (2019: $5,921,789) and were included in the operating expenses. There was no reversal of previously written down land assets.
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 155 WESTERN AUSTRALIAN LAND AUTHORITY WESTERN AUSTRALIAN LAND AUTHORITY NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
Note 6 Infrastructure, property, plant and equipment Non-Current Freehold land Buildings Infrastructure Equipment Total $'000 $'000 $’000 $’000 $’000
Cost or deemed cost Balance at 30 June 2018 92,277 45,366 27,191 214,853 379,687 Additions 4,779 - - 96 4,875 Disposals (11,542) - - (60) (11,602) Balance at 30 June 2019 85,514 45,366 27,191 214,889 372,960
Additions 10,189 28,391 - 9,068 47,648 Cost revisions - - - 5 5 Disposals (301) - - (66) (367) Balance at 30 June 2020 95,402 73,757 27,191 223,896 420,246
Accumulated depreciation Balance at 30 June 2018 (15,356) (15,171) (67,826) (98,353) Disposals - - 51 51 Depreciation expense (1,427) (1,242) (6,859) (9,528) Balance at 30 June 2019 (16,783) (16,413) (74,634) (107,830) Disposals - - 66 66 Depreciation expense (1,427) (1,242) (7,254) (9,923) Balance at 30 June 2020 (18,210) (17,655) (81,822) (117,687)
Carrying amounts at 30 June 2019 85,514 28,583 10,778 140,255 265,130 at 30 June 2020 95,402 55,547 9,536 142,074 302,559
WALA obtained valuations from Western Australian Land Information Authority (Landgate) for metropolitan freehold and McGees Property for Regional freehold land to support the carrying value included in infrastructure, property, plant and equipment, for land held at 1 January 2020. Additional land acquired through asset transfers were transferred at fair value in accordance to AASB 13. Based on the land valuations and fair value valuations, the estimated market value of land, included in the carrying values of, property plant and equipment at 30 June 2020 was $501,250,924 (2019: $473,209,076).
During the year $23,979,785 of buildings were transferred from the Metropolitan Redevelopment Authority through contribution to equity at fair value. Fair Value valuations, were performed by Colliers International and McGees Property. $195,966 of artwork and IT equipment was transferred from the Metropolitan Redevelopment Authority through contribution to equity. Refer to Note 15.
During the year $10,188,924 of land and $4,234,930 of buildings was transferred from the Department of Jobs, Tourism, Science and Innovation to WALA. The buildings were transferred through contribution to equity at fair value. Fair Value valuations were performed by Western Australian Land Information Authority (Landgate) (Valuation Services). Refer to Note 15.
156 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 WESTERN AUSTRALIAN LAND AUTHORITY WESTERN AUSTRALIAN LAND AUTHORITY NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
Note 7 Leases Right of Use Assets
Buildings Vehicles Total Right-of-use-assets ($000) ($000) ($000) As at 1 Jul 2019 Note 1(e) 8,159 239 8,398 Additions/modifications of right-of-use assets 972 135 1,107 Depreciation charge (2,325) (157) (2,482) As at 30 June 2020 6,806 217 7,023 Right of use assets predominantly relate to long- term property leases. Refer to note 1(p) for further details.
Set out below are the carrying amounts of lease liabilities and movements during the period. Lease liabilities are included in other liabilities note 13.
2020 Lease Liabilities ($000)
As at 1 Jul 2019 Note 1(e) 8,398 Accretion of interest 167 Payments (2,306) Adjustments/modifications 1,095 As at 30 June 2020 7,354
Current 2,311 Non Current 5,043 7,354
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 157 WESTERN AUSTRALIAN LAND AUTHORITY WESTERN AUSTRALIAN LAND AUTHORITY NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
2020 2019 $'000 $'000 Note 8 Deferred tax assets and liabilities
Non-current Deferred tax asset 46,224 47,017 Deferred tax liability (18,555) (18,381) Net Deferred tax asset 27,669 28,636
Recognised deferred tax assets and liabilities and movement in temporary differences during the year are attributable to the following:
Recognised in Under (over) Opening profit provision in prior Closing 2020 balance or loss year balance Temporary differences $’000 $’000 $’000 $’000
Inventories 15,552 (8) (1,029) 14,515 Intangible assets 24 - - 24 Infrastructure, property, plant and equipment 767 (795) (173) (201) ROU Assets - (2,106) - (2,106) Accrued expenses 3,809 (1,073) (210) 2,526 Provision for superannuation 25 2 - 27 Provision for annual leave 632 169 - 801 Provision for long service leave 1,321 (54) - 1,267 Allowance for doubtful debt 55 720 (33) 742 Provision for future development obligation 16,362 - (784) 15,578 Accrued income (2,439) 1,156 - (1,283) Income received in advance 7,637 1,167 (17,183) (8,379) Lease Liabilities - 2,206 - 2,206 Recognition of long leases (12,143) (115) 17,183 4,925 Prepayments 97 - 20 117 Partner development costs (3,063) (27) - (3,090) 28,636 1,242 (2,209) 27,669
158 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 WESTERN AUSTRALIAN LAND AUTHORITY WESTERN AUSTRALIAN LAND AUTHORITY NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
Note 8 Deferred tax assets and liabilities (continued)
Recognised in Under (over) Opening profit provision in Closing 2019 balance or loss prior year balance Temporary differences $'000 $'000 $’000 $’000
Inventories 15,412 140 - 15,552 Intangible assets 10 14 - 25 Infrastructure, property, plant and equipment 1,839 (1,115) 43 768 Accrued expenses 928 781 2,100 3,809 Provision for superannuation 26 (1) - 25 Provision for annual leave 657 (25) - 632 Provision for long service leave 1,418 (97) - 1,321 Recognised in Under (over) Opening profit provision in prior Closing Allowance for doubtful debt 90 (35) - 55 2020 balance or loss year balance Temporary differences $’000 $’000 $’000 $’000 Provision for future development obligation 13,410 - 2,952 16,362 Accrued interest income (888) (1,551) - (2,439)
Inventories 15,552 (8) (1,029) 14,515 Income received in advance 5,155 2,482 - 7,637 Recognition of long leases (12,028) (115) - (12,143) Intangible assets 24 - - 24 Prepayments 73 - 24 97 Infrastructure, property, plant and equipment 767 (795) (173) (201) Partner development costs (3,015) (48) - (3,063) ROU Assets - (2,106) - (2,106) Tax losses 1,711 - (1,711) - Accrued expenses 3,809 (1,073) (210) 2,526 24,798 430 3,408 28,636 Provision for superannuation 25 2 - 27 Provision for annual leave 632 169 - 801 Provision for long service leave 1,321 (54) - 1,267 Allowance for doubtful debt 55 720 (33) 742 Provision for future development obligation 16,362 - (784) 15,578 Accrued income (2,439) 1,156 - (1,283) Income received in advance 7,637 1,167 (17,183) (8,379) Lease Liabilities - 2,206 - 2,206 Recognition of long leases (12,143) (115) 17,183 4,925 Prepayments 97 - 20 117 Partner development costs (3,063) (27) - (3,090) 28,636 1,242 (2,209) 27,669
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 159 WESTERN AUSTRALIAN LAND AUTHORITY WESTERN AUSTRALIAN LAND AUTHORITY NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
2020 2019 $'000 $'000 Note 9 Other assets Current Deposit bonds 925 1,700 Deposits for land acquisitions - 2,318 Prepayments 5,945 2,772 Total current other assets 6,870 6,790
Non-current Deposits for land acquisitions (i) 25,096 21,845 Prepayments (ii) 3,186 8,793 Total non-current other assets 28,282 30,638
(i) Non-current deposits relate to large government land acquisitions. (ii) Non-current prepayments contain development and Native Title payments to be utilised in a period greater than one year.
Note 10 Payables Current Trade payables 3,649 2,926 Accrued expenses 16,082 17,535 GST payable 3,851 9,009 Total current payables 23,582 29,470
Note 11 Tax liabilities Current Income tax payable 657 679 Total current tax liabilities 657 679
Note 12 Provisions Current Employee benefits 4,737 4,127 Provision for remediation (i) 6,141 5,690 Total current provisions 10,878 9,817 Non-current Employee benefits 2,156 2,384 Other provisions (ii) - 1,786 Total non-current provisions 2,156 4,170
(i) Provision for remediation refers to current obligations as a result of sale and development infrastructure works. (ii) Other provisions pertains to restoration works under current negotiation.
160 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 WESTERN AUSTRALIAN LAND AUTHORITY WESTERN AUSTRALIAN LAND AUTHORITY NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
Note 12 Provisions (continued) 2020 2019 $'000 $'000 Movements in each class of provision during the period Employee Benefits Carrying amount at start of period 6,511 6,917 Additional/(reversals of) provisions recognised 2,074 2,101 Payments (1,692) (2,507) 6,893 6,511
Provision for Remediation Carrying amount at start of period 5,690 2,951 Additional/(reversals of) provisions recognised 536 4,439 Payments (85) (1,700) 6,141 5,690 Other Provisions Carrying amount at start of period 1,786 - Additional/(reclass) provisions recognised (i) (1,786) 1,786 - 1,786 (i) Reclassed to provision for remediation
Note 13 Other liabilities Current Contract liabilities (i) 4,735 1,352 Unearned revenue (ii) 6,250 6,787 Total current other liabilities 10,985 8,139
Non-current Unearned revenue (ii) 25,386 15,820 Contract liabilities (i) 1,424 9,925 Other (iii) 10,000 10,000 Total non-current other liabilities 36,810 35,745
(i) Contract liabilities are related to contracts with customers. They include deposits received on the sale of land. (ii) Unearned revenue is rent received in advance for leased properties. Non-current unearned revenue refers to revenue received in advance for capital leases that compensates for periods greater than one year. (iii) Other liabilities relate to development bond monies.
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 161 WESTERN AUSTRALIAN LAND AUTHORITY WESTERN AUSTRALIAN LAND AUTHORITY NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
2020 2019 $'000 $'000 Note 14 Borrowings
Current Liquidity Advance 46,100 48,000 Debt Portfolio Manager - 37,000 Total current borrowings 46,100 85,000
Non-Current Debt Portfolio Manager 189,400 140,500 Total non-current borrowings 189,400 140,500 Total loans and borrowings 235,500 225,500
WALA currently holds two debt facilities with the Western Australian Treasury Corporation (WATC); a five year rolling Debt Portfolio Manager facility and a Liquidity Advance for short-term lending.
Under the Debt Portfolio Manager facility WALA has the ability to repay a maximum of 20% of the balance per year. Refer to liquidity risk in Note 17, for interest rate details.
Financing facilities Unsecured bank overdraft facility, reviewed annually and payable at call: Amount used - - Amount unused 2,000 2,000 2,000 2,000
Unsecured loan facility with Western Australian Treasury Corporation (WATC):
Amount used 235,500 225,500 Amount unused 46,994 20,100 282,494 245,600
As part of the State Budget Government has approved WALA’s borrowing projections based on cash flow estimates. The limits are as follows:
Borrowing limit at 30 June 282,494 245,600 "Intra-year" peak borrowings* 515,612 445,000
* The Treasurer advises the Western Australian Treasury Corporation (WATC) of a peak borrowing requirement which is based on WALA’s forecast cash flow estimates. WALA’s request for borrowing is managed within the confines of this approved limit throughout the year.
162 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 WESTERN AUSTRALIAN LAND AUTHORITY WESTERN AUSTRALIAN LAND AUTHORITY NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
2020 2019 $'000 $'000 Note 15 Equity
Contributed equity Capital contributed on formation 113,957 113,957 Capital contributed by State Government during prior years 299,413 295,058 Capital contributed by State Government during the current year 138,417 4,355 Total contributed equity 551,787 413,370
Asset Transfers by the Department of Jobs, Tourism, Science and Innovation (i) 25,270 - Asset Transfers by the Metropolitian Redevelopment Authority during the current year (ii) 113,147 - Department of Treasury funding - 4,355 Total capital contributed by State Government during the year 138,417 4,355
(i) During the year a transfer of Technology Park Assets from the Department of Jobs,Tourism, Science and Innovation was processed through equity at fair value. $10,370,000 of land was transferred to inventory, $10,188,924 of land and $4,234,930 of buildings were transferred to infrastructure, property, plant and equipment. Refer to note 5 and 6. $476,258 was transferred to receivables for funds held in trust.
(ii) The administrative merger between the Metropolitian Redevelopment Authority and WALA has progressed during FY20. All employees are now co-located at WALA head office. The majority of land assests have been transferred to WALA. These land transfers have been recognised via a contribution to equity at fair value. $88,971,214 of land was transferred to inventory and $23,979,785 of buildings and $195,966 of IT equipment was transferred to infrastructure property, plant and equipment. Refer to Notes 5 and Note 6.
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 163 WESTERN AUSTRALIAN LAND AUTHORITY WESTERN AUSTRALIAN LAND AUTHORITY NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
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:
2020 2019 $'000 $'000
Cash and cash equivalents 19,483 19,074
(b) Reconciliation of cash flows from operating activities Profit for the year 2,331 6,754 Adjustments for: Accrued Income 13,103 (24,397) Loss on sale of infrastructure, property, plant and equipment - 6 Employee benefits expense (non-cash component) 156 361 Depreciation and amortisation of non-current assets 12,405 9,528 Expected credit loss on trade receivables 2,414 116 Finance interest paid 4,280 6,172 Income tax expense 1,201 2,988 35,890 1,528 Assets (increase)/decrease Receivables (15,969) 55,475 Inventories (7,400) (12,873) Other assets 2,276 292
Liabilities increase/(decrease) Payables (6,528) (1,304) Provisions (2,360) 5,009 Other liabilities 5,119 (2,249) Cash generated from operating activities 11,028 45,878 Net income tax paid (1,982) (3,121) Net cash from operating activities 9,046 42,757
(b) Reconciliation of liabilities arising from financing activities
Opening Closing New Closing balance New balance borrowings/ Non-cash balance 2019 borrowings 2019 (payments) movement 2020 $'000 $’000 $'000 $’000 $’000 $’000
Short-term borrowings 78,500 6,500 85,000 - (38,900) 46,100 Long-term borrowings (i) 140,500 - 140,500 10,000 38,900 189,400 Lease liabilities (ii) - - - (2,306) 9,660 7,354 Total liabilities from financing activities 219,000 6,500 225,500 7,694 9,660 242,854
(i) New borrowings/payments is net of new borrowings $58,500,000 and repayments of borrowings of $48,500,000 as reported in the statement of cash flows. (ii) Refer to note 7.
164 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 WESTERN AUSTRALIAN LAND AUTHORITY WESTERN AUSTRALIAN LAND AUTHORITY NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
Note 17 Financial instruments Recognition, initial measurement and derecognition
Financial assets and financial liabilities are recognised when the entity becomes a party to the contractual provisions of the financial instrument, and are measured initially at fair value adjusted by transaction costs and subsequently at amortised cost.
Financial assets are derecognised when the contractual rights to the cash flows from the financial asset expire, or when the financial asset and all substantial risks and rewards are transferred. A financial liability is derecognised when it is extinguished, discharged, cancelled or expired.
WALA’s financial instruments consist of cash and cash equivalents, trade and other receivables/payables and Western Australian Treasury Corporation (WATC) bank borrowings. WALA has limited exposure to financial risks as detailed below.
Receivables are present valued, to reflect the time value of money, when they have repayment terms greater than one year.
WALA receivables are valued at amortised cost and impaired by the appropriate Expected Credit Loss ratio.
2020 2019 $'000 $'000 WALA financial assets and liabilities
Financial assets Cash and cash equivalents (at amortised cost) 19,483 19,074 Trade and other receivables (at amortised cost) 59,394 56,026 Total financial assets 78,877 75,100
Financial liabilities WATC loans/Borrowings (at amortised cost) 235,500 225,500 Trade and other payables (at amortised cost) 23,582 29,470 Lease liabilities (at amortised cost) 7,354 - Total financial liabilities 266,436 254,970
Financial risks and risk management
WALA has exposure to the following risks from its use of financial instruments: (i) credit risk (ii) liquidity risk (iii) market risk
The information below represents information about WALA’s exposure to each of the above risks, their 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 on its activities.
Risk management policies are established to identify and analyse the risks faced by WALA, 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 WALA’s activities. WALA employs policies and procedures and ongoing staff training to develop a disciplined and constructive control environment in which all employees understand their roles and obligations.
The Audit and Risk Management Committee oversees and monitors compliance with WALA’s risk management policies and procedures and reviews the adequacy of the risk management framework in relation to the risks faced by WALA. The Audit and Risk Management Committee is supported in its role by regular, thorough and varied internal audit processes conducted by external accounting firms. These internal audits include 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.
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 165 WESTERN AUSTRALIAN LAND AUTHORITY WESTERN AUSTRALIAN LAND AUTHORITY NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
Note 17 Financial instruments (continued) (i) Credit risk
Credit risk occurs where there is a possibility of WALA’s customers with outstanding receivable balances defaulting on their contractual obligations resulting in financial loss to WALA.
The majority of WALA’s revenue is received and recognised at the time of settlement of sale. WALA’s customers are required to meet the contractual obligations of a sale (being transfer of sale funds to WALA) in order for the ownership of the WALA asset to transfer to the customer. As a result receivables make up a small proportion of WALA’s overall customer base.
WALA receivable balances are made up of mortgage sales, rental revenue receivable amounts from various Government and commercial tenants. Policies are in place to ensure that goods and services are provided to customers with an appropriate credit history. WALA trade receivables are both short and long term in nature. For Deferred land settlements WALA holds security over the land and interest can be charged on any outstanding balances to compensate the entity for the use of their funds. Receivable balances are monitored on an on-going basis with the result that WALA’s exposure to bad debts is minimal.
Bad debts (impairments) are written off against the allowance account when it is highly unlikely or not economically viable to recover the debt. At the end of the reporting period there were no significant concentrations of credit risk.
Exposure to credit risk
AASB 9 contains two approaches to assessing impairment - the simplified approach (applied to trade receivables without a financing component) and the general approach (applied to most loans and debt securities). The standard allows a policy election to apply the simplified approach or general approach for lease receivables and trade receivables with a significant financing component.
Summary of WALA financial asset impairment approach
WALA has reviewed trade receivables by categorising customers into one of three portfolios of customer and subsequently risk, as shown in the tables below. WALA has applied the simplified approach in accounting for the Government and Commercial/Rental portfolio. Mortgages are considered to carry an inherently higher risk, given their value and term, and have therefore been assessed using the general approach. Under the general approach to assessing risk, the mortgages will be reviewed on a 12 month basis rather than applying a lifetime expected credit loss ratio. WALA has used historical experience, external indicators and forward-looking information to calculate the expected credit losses (ECL) as at 30 June 2020, by portfolio of debtor, as shown below:
WALA Asset Impairment approach ECL Type 2020 ECL % 2019 ECL %
Cash Simplified N/A 0% 0% Trade Receivables
Mortgage receivables General 12 month 0.607% 0.045% Government agency receivables Simplified Lifetime 0% 0% Rental receivables Simplified Lifetime 0.039% 0.326%
Receivable Portfolio
$’000 Total Govt. Rental Mortgage
30 June 2020 Expected credit loss rate 0% 0.339% 0.607% Estimated gross carrying amount at default 61,912 8,398 13,751 39,763 Expected credit losses 246 - 5 241
30 June 2019 Expected credit loss rate (2018/19 rates applied) 0% 0.326% 0.045% Estimated gross carrying amount at default 56,211 1,067 32,094 23,050 Expected credit losses 107 - 97 10
166 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 WESTERN AUSTRALIAN LAND AUTHORITY WESTERN AUSTRALIAN LAND AUTHORITY NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
Note 17 Financial instruments (continued)
Movement in the allowance for impairment of trade receivables 2020 2019 $'000 $'000
Reconciliation of changes in the allowance for impairment of trade receivables: Balance at start of period 185 303 Remeasurement under AASB 9 - 22 Restated balance at start of period 185 325 Remeasurement AASB 9 not adjusted - (22) Increase in general ECL provision for the year (refer note 17(i)) 246 107 Increase in provision for Mortgage risk (i) 346 - Increase in provision for Rental revenue risk (ii) 153 9 Increase in provision for Interest revenue risk (iii) 1,665 - Amounts written off during the period (iv) (9) (234) Provision reversed during the year (iv) (68) - Balance at end of period 2,518 185
WALA has assessed all receivable balances for risk on a case by case basis to determine the expected impact of COVID-19. Results of these allowances are represented in the followIng three risk allowances.
i) Mortgage risk provision. Based on borrower repayment behaviour, negotiation status at end of financial year and market risk due to COVID-19 it is expected that there is a risk that some mortgages will not be settled in 2020/21. Given that the land title remains with WALA for these mortgaged properties the risk is calculated at 1% ($346K) which represents the loss of potential earnings in addition to the land values which would be recoverable.
ii) Rental Revenue risk provision - tenants of properties owned by WALA have experienced a similar impact to the commercial and residential rental markets in general as a result of COVID-19. It is necessary to make an allowance for the anticipated risk to these rental payments. A direct allowance of 10% has been applied to the expected rental receipts for these remaining nine months ($153K). During the prior year a direct allowance was applied to a doubtful debtor.
iii) Interest on revenue risk - Expected credit loss on interest receivable. ($1.665million).
The carrying amount of WALA’s financial assets represents the maximum credit exposure. WALA’s maximum exposure to credit risk at the reporting date was:
iv) In addition to the ECL provision, WALA assess all accounts receivable balances that are 180 plus days past due. During 2018/19 an additional provision of $9,462 and $68,750 was recognised for specific doubtful debtors in addition to the ECL . During 2019/20 $68,750 of this amount was received and $9,462 was written off as a bad debt.
Carrying amount 2020 2019 $'000 $'000 Trade and other receivables 61,913 56,211 Cash and cash equivalents 19,483 19,074 81,396 75,285
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 167 WESTERN AUSTRALIAN LAND AUTHORITY WESTERN AUSTRALIAN LAND AUTHORITY NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
Note 17 Financial instruments (continued) (ii) Liquidity risk
Liquidity risk is the risk that WALA will not be able to meet its financial obligations as they fall due. WALA’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and adverse conditions, without incurring unacceptable losses or risking damage to WALA’s reputation.
WALA limits its exposure to credit risk by only investing in liquid securities and only with counterparties that have a credit rating of AA- from Standard & Poor’s. Given these high credit ratings, management does not expect any counterparty to fail to meet its obligations.
WALA uses market value to cost its land, which assists it in monitoring cash flow requirements and optimising its cash return on investments. Typically WALA ensures that it has sufficient 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, WALA 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.
• $282 million (2019: $245 million) provided by Western Australian Treasury Corporation (WATC) that can be drawn down to meet short and long-term financing needs. WALA utilises a Liquidity Lending product for short term lending. Interest is calculated on a simple interest rate basis and is payable on maturity. For long term borrowing WALA utilises the Debt Portfolio Manager Service (DPM), which provides a diversified portfolio of twenty maturity dates over five years. Interest rates are reset each quarter. A Guarantee fee, charged by the Department of Treasury, is applied at a rate of 0.7% on loan balances and is also payable quarterly.
• Guarantees established in favour of Commonwealth Bank of Australia for guarantees issued to various Government entities for satisfactory contract performance, secured by underlying land assets, amounting to $20 million (2019: $20 million). At 30 June 2020 $6 million (2019: $11.6 million) of the facility has been used as security on civil contracts, leaving a balance of $14 million (2019: $8.4 million) in the facility.
WALA’s contractual maturities of financial liabilities (including estimated interest payments and excluding the impact of netting agreements) are as follows:
Weighted average Contractual effective Carrying 6 months or 6-12 More than 1 cash flows interest rate % Amount $’000 less $’000 months $’000 year $’000 2020 $’000
Trade and other payables 23,582 (23,582) (22,679) (279) (624) WATC loans/Borrowings 0.51% 235,500 (242,430) (23,884) (24,722) (193,824) Lease Liabilities Note 7 2.10% 7,354 (7,635) (1,249) (1,240) (5,146) Bank overdraft - - - - - 266,436 (273,647) (47,812) (26,241) (199,594) 2019 Trade and other payables 29,470 (29,470) (28,304) (412) (753) WATC loans/Borrowings 1.95% 225,500 (241,854) (21,260) (21,106) (199,488) Bank overdraft - - - - - 254,970 (271,324) (49,564) (21,518) (200,241)
168 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 WESTERN AUSTRALIAN LAND AUTHORITY WESTERN AUSTRALIAN LAND AUTHORITY NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
Note 17 Financial instruments (continued) (iii) Market risk
Market risk is the risk that changes in market prices such as foreign exchange rates and interest rates which will affect WALA’s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.
WALA currently has no derivative arrangements.
All WALA borrowings are due to the WATC and are repayable at fixed rates with varying maturities determined as part of overall cash management processes. WALA’s exposure to market risk for changes in interest rates relates primarily to the long-term debt obligations.
Interest rate risk
At the reporting date the interest rate profile of WALA’s interest-bearing financial instruments 2020 2019 $'000 $'000 Variable rate instruments Financial assets 19,483 19,074 Financial liabilities (235,500) (225,500)
Cash flow sensitivity analysis for variable rate instruments:
Af change o 100 basis points in interest rates at the reporting date would have increased (decreased) equity and profit or loss by the amounts shown below.
2020 Profit or loss $’000 100bp increase 100bp decrease Financial assets 195 ( 195) Financial liabilities (2,355) 2,355
2019 $’000 Financial assets 191 (191) Financial liabilities (2,255) 2,255
Fair values
Fair values versus carrying amounts The fair values of financial assets and liabilities, together with the carrying amounts shown in the Statement of financial position, are as follows:
30 June 2020 30 June 2019 $’000 Carrying amount Fair value Carrying amount Fair value Trade and other receivables 61,913 61,913 56,211 56,211 Cash and cash equivalents 19,483 19,483 19,074 19,074 Trade and other payables (23,582) (23,582) (29,470) (29,470) WATC loan (235,500) (235,500) (225,500) (225,500) Lease liabilities (7,354) (7,354) - - (185,040) (185,040) (179,685) (179,685)
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 169 WESTERN AUSTRALIAN LAND AUTHORITY WESTERN AUSTRALIAN LAND AUTHORITY NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
Note 17 Financial instruments (continued) Capital Management
Under Section 19 of the Western Australian Land Authority Act 1992, the Board’s policy is to maintain a strong capital base in order to maintain shareholder, creditor and market confidence and to sustain the future development of the business.
WALA has agreed to a dividend policy with its shareholder, the State Government, based on a set formula. WALA retain the cash balance as a source of capital funding for ongoing activities.
There were no changes to WALA’s approach to capital management during the year.
2020 2019 $'000 $'000 Note 18 Land sales contracts
Unsettled sales contracts excluding GST (i) 82,072 66,091 Total unsettled sales contracts 82,072 66,091
(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 (i) 48,767 57,755 Operating subsidy (project funding received in advance) 27,932 27,994 76,699 85,749 (b) Operating lease commitments Short term and low value operating lease commitments are disclosed in note 24(b). Right-of-use assets are disclosed in Note 7.
(i) Bank guarantees are held for security over high value civil works, undertaken for state and local government, for contracts included in the development of land. Refer to Note 17(ii).
Note 20 Related party disclosures WALA is a wholly-owned public sector entity that is controlled by the State of Western Australia. Related parties of WALA include: • State Government Cabinet Ministers, their close family members, and their controlled or jointly controlled entities; • All directors and senior officers of WALA, 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).
170 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 WESTERN AUSTRALIAN LAND AUTHORITY WESTERN AUSTRALIAN LAND AUTHORITY NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
Note 20 Related party disclosures (continued)
Material Transactions with Ministers, Senior Officers and their Related Parties
Currently WALA Non-Executive Directors are: George McCullagh, Kylee Schoonens, Simon Read, Jane Bennett, Dale Page, Rebecca Field and Simon Reed. All WALA Non-Executive Directors are also Non-Executive Directors of the Metropolitan Redevelopment Authority.
During the prior year WALA recognised interest income of $79,289 from the Metropolitian Redevelopment Authority. During the current year WALA received project income of $5,820,915 (2019: $286,689) from the Metropolitian Redevelopment Authority. This project income included recovery of costs for seconded staff members and transition costs. Fair value asset transfers of $113,146,965 were transferred from Metropolitian Redevelopment Authority as a contribution from owner.
The Department of Planning, Lands and Heritage, is the WA State Government department that encompasses the West Australian Planning Commission. Jane Bennett, a Non-Executive Director of WALA, is a member of the West Australian Planning Commission.
During the year WALA incurred $251,661 (2019: $nil) in land acquisitions costs, $17,557 in administrative costs (2019: $14,021, and received $742,997 (2019: $625,114) in project income from the Department of Planning, Land and Heritage. At 30 June 2020 WALA held a deposit for land balance of $21,844,771 (2019 $21,844,771). .
Sponsorship, research, professional development and application fees totalling $56,149 (2019: $98,501) were paid during the year to Urban Development Institute of Australia. Jane Bennett, a Non-Executive Director of WALA, is a member of the Council of the Urban Development Institute of Australia. .
Dale Page is a Non-Executive Director of WALA, and is the Director of Planning and Development at the City of Joondalup. During the year WALA paid $54,198 in project fees to the City of Joondalup’s (2019 :Nil ).
Compensation of Key Management Personnel
WALA has determined that the Key Management Personnel of WALA includes all Cabinet Ministers, the directors and senior officers of WALA.
WALA is not responsible for Cabinet Minister’s compensation, disclosures of the Minister’s compensation may be found in the Annual Report on State Finances.
2020 2019 $’000 $’000
Short-term employee benefits 2,960 2,725 Post-employment benefits 321 300 Other long-term benefits 87 82 Total compensation of key management personnel (excluding Ministers) 3,368 3,107
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 171 WESTERN AUSTRALIAN LAND AUTHORITY WESTERN AUSTRALIAN LAND AUTHORITY NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
Note 20 Related party disclosures (continued)
Significant transactions with Government - Related Entities
WALA transacts with a number of Western Australian State Government authorities, agencies and government trading enterprises. Total annual transactions that are deemed significant include:
2020 2019 $’000 $’000 Receipts Entity Nature Department of Fire and Emergency Services Contaminated sites management grant 660 1,243 Department of Jobs, Tourism, Science and Project management and consultancy fees 3,164 6,043 Innovation Department of Treasury Grants to fund Operating subsidy projects (recurrent) 72,939 57,228 Department of Treasury Grants to fund Operating subsidy projects (capital) - 4,355 Department of Treasury NTER 2017/2018 Item 32 refund - 2,954 Fremantle Port Authority Property lease and on costs 10,962 20,489 Metropolitan Redevelopment Authority Project and Transition costs 6,478 14,065 Water Corporation of WA Rent 2,969 676 Western Australian Planning Commission Land Purchase - 21,885 Western Australian Treasury Corporation Borrowings 40,000 68,000 Western Power Corporation Project management and consultancy fees 2,665 87
Payments Entity Nature Commissioner of State Revenue Stamp Duty (4,313) - Super profit from sale of vacant land and school Department of Education - (5,017) contribution fee Department of Finance Land tax (41,815) (40,626) Department of Transport Recovery - Fees (640) (1,548) Department of Treasury Dividends (8,443) (37,869) Department of Treasury LGRE Tax and Income tax (9,491) (13,855) Fremantle Ports Rent (1,382) - Government Employees Superannuation Superannuation (1,980) (1,887) Board (GESB) Synergy Power Supplies (2,251) (2,124) Water Corporation of WA Water services and rates (3,209) (3,427) Western Australian Treasury Corporation Repayment of borrowings (70,000) (61,500) Western Australian Treasury Corporation Interest and fees on borrowings (8,900) (6,789) Western Power Corporation Electrical connections and services (3,975) (1,538)
172 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 WESTERN AUSTRALIAN LAND AUTHORITY WESTERN AUSTRALIAN LAND AUTHORITY NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
2020 2019 $’000 $’000 Note 20 Related party disclosures (continued)
Balances outstanding at the year end: Assets Entity Nature Department of Biodiversity, Conservation Prepayment - environmental offset (land) 2,021 2,021 and Attractions Department of Planning, Lands and Heritage Deposit for land 21,845 21,845 Deposit for land acquisition based on land WA Country Health Service 2,318 2,318 exchange Construction of road to access Water Corporation of WA 100 1,691 Water Corporation asset
Liabilities Western Australian Planning Commission Land exchange adjustment (757) (1,251) Western Australian Treasury Corporation Accrued interest & borrowings (236,125) (226,567)
Note 21 Remuneration of auditors Remuneration paid or payable to the Auditor General in respect of audit fees during the year:
Audit of the financial report 140 137 Audit of Royalty for Regions reports 24 37 164 174
Note 22 Contingent liabilities During the ordinary course of development activities WALA periodically has to undertake remediation works. WALA have six sites classified as contaminated on the Contaminated Sites Report issued by the Department of Water and Environmental Regulation, as at 30 June 2020. In addition these are six properties requiring investigation for possible contamination. There is Insufficient information available to assess the financial impact of remediation required on any contaminated land held, which has yet to be developed. The uncertainties are due to the impact of development, current and future use which impacts the nature of any potential obligation, if any, and the level of contamination. Any costs that arise relating to remediation and decontamination activities are ultimately incurred as part of development activities, form part of WALA’s development costs and will impact Inventory. Refer to Note 5.
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 173 WESTERN AUSTRALIAN LAND AUTHORITY WESTERN AUSTRALIAN LAND AUTHORITY NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
Note 23 Dividends 2020 2019 $’000 $’000 Recognised amounts Normal dividend - 17,250 Special dividends: - AMC Common User Facility - 15,400 - 5% Efficiency saving - 1,049 - Additional efficiency saving - 780 - Reduction to offset interest expense from additional borrowings for the 2012-13 special - (1,300) dividend - Special dividend paid in relation to WALA/State settlement - 4,690 - 2018/19 Dividend 8,443 - 8,443 37,869
At the August 2019 Board meeting, the Board approved the recommendation to the Minister of a final dividend for 2018/19 to be paid in 2019/20 of $8,443,000. The dividend reflects a Net Profit after tax calcualtion of 125%. A new Dividend arrangment was endorsed by the Expenditure Review Commitee in October 2018, and a cascading percentage will apply over three years when the Net Profit after tax dividend percentage will be 75%. The dividend was paid in June 2020.
174 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 WESTERN AUSTRALIAN LAND AUTHORITY WESTERN AUSTRALIAN LAND AUTHORITY NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
2020 2019 $’000 $’000 Note 24 Leasing arrangements (a) Operating lease commitments No Disclosure required for the current year due to the adoption of AASB16. WALA has its office 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 - 2,810 Later than 1 year and not later than 5 years - 8,628 Later than 5 years - 44 - 11,482
(b) Short term and low value leases No later than 1 year 39 - Later than 1 year and not later than 5 years 1 - Later than 5 years 4 - 44 - (c) Operating lease receivables
WALA 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 26,421 22,850 Later than 1 year and not later than 5 years 92,161 85,680 Later than 5 years 282,148 307,258 400,730 415,788
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
On 23 September 2019, there was an administrative merger of Western Australia’s land development agencies, WALA and the Metropolitan Redevelopment Authority. Certain assets of the Metropolitan Redevelopment Authority are progressively being transferred to WALA. The Metropolitan Redevelopment Authority will continue to operate until the earlier of either the effective transfer of all assets to other State and local government agencies or until legislation is passed transferring existing powers and duties. The COVID19 pandemic (“COVID19”) situation and impact on WALA is being continually monitored by Management and the Board. To date, the West Australian Government response to COVID19, has provided a range of Stimulus measures to support economic recovery. Stimulus measures introduced relating to building construction, infrastructure projects and Regional land are currently expected to impact positively on WALA in the 2020/21 financial year. However the ultimate impact of COVID19 on WALA will depend on the length of time that the pandemic continues, its wider economic impacts, as well as the effect of any governmental regulations imposed in response to future developments related to the pandemic, all of which are uncertain at this time. On the 25 November 2019 the Government announced its intention to structurally separate the functions of the Housing Authority, with the social housing and other non-commercial functions remaining within the Department of Communities, and the land development and related commercial functions being merged with WALA. A Steering Committee is overseeing planning to implement this decision, with Housing Authority land development assets and projects expected to transfer to WALA in stages over the course of the 2020/21 financial year. No other matter or circumstance has occurred subsequent to year end that has significantly affected, or may significantly affect, the operations of the Company, the results of those operations or the state of affairs of the entity in subsequent financial years.
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 175 SECTION SEVEN METROPOLITAN REDEVELOPMENT AUTHORITY COMPLIANCE REPORT
Subiaco Oval Gates
176 I DEVELOPMENT WA ANNUAL REPORT 2019/20 STATEMENT OF COMPLIANCE FOR YEAR ENDED 30 JUNE 2020
Hon Ben Wyatt MLA Treasurer; Minister for Finance; Aboriginal Affairs; Lands 11th Floor, Dumas House 2 Havelock Street West Perth, WA 6005
Dear Minister
In accordance with section 63 of the Financial Management Act 2006, I hereby submit for your information and presentation to Parliament, the Annual Report of the Agency for the reporting period ended 30 June 2020.
The Annual Report has been prepared in accordance with the provisions of the Financial Management Act 2006.
George McCullagh Simon Read Board Chairperson Audit and Risk Management Committee Chairperson
14 September 2020 14 Sepember 2020
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 177 OVERVIEW
EXECUTIVE SUMMARY
The Metropolitan Redevelopment Authority joined with the Western Australian Land Authority in September 2019 to become DevelopmentWA as part of the State Government’s land agency reform program announced in November 2017. The vision of this reform was to create one integrated and sustainable agency to deliver priority Government planning and land development projects which drives social and economic growth and prosperity across Western Australia.
The Metropolitan Redevelopment Authority has specific reporting requirements in accordance with the Financial Management Act 2006, which are contained in this report. All other information for the financial year is contained in the DevelopmentWA Annual and Sustainability Report 2019-20.
OPERATIONAL STRUCTURE
MINISTER
The Metropolitan Redevelopment Authority is the responsibility of the Hon Ben Wyatt MLA, Minister for Lands.
ENABLING LEGISLATION
The Metropolitan Redevelopment Authority is a statutory authority established under the Metropolitan Redevelopment Authority Act 2011 to plan, undertake, promote and coordinate the development of land in redevelopment areas in the metropolitan area.
AGENCY PERFORMANCE
REPORT ON OPERATIONS
The activities of the Metropolitan Redevelopment Authority have been reported in the DevelopmentWA Annual and Sustainability Report 2019-20.
178 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 GOVERNANCE
BOARD AND COMMITTEES
As a Statutory Authority of the State Government of Western Australia, the MRA is governed by a Board appointed by and answerable to the Minister. The MRA Board sets the strategic direction of the MRA and monitors its performance. The Board’s key functions are Strategy, Monitoring, Risk Management and Compliance.
The Board comprises seven members, each appointed by the Minister for a term no longer than three years. Members are eligible for reappointment. The Metropolitan Redevelopment Authority Act 2011 requires that of the seven Board members: • one is to be appointed member of the Board or management of the Western Australian Planning Commission (WAPC) nominated by the WAPC; • one member, who in the opinion of the Minister, has knowledge of or experience in local government; and • each of the others is to be a person who, in the opinion of the Minister, has relevant qualifications.
A relevant qualification is knowledge of, and experience in, one or more of the fields of urban planning, business management, property development, financial management, engineering, transport, housing and community affairs. Board members are remunerated according to Public Sector Commission guidelines. Those members who are public servants are not remunerated.
The Board comprises:
George McCullagh, Board Chairperson Rebecca Field, Deputy Chairperson Kylee Schoonens, Board Director Simon Read, Board Director Dale Page, Board Director Simon Reed, Board Director Jane Bennett, Board Director Paul Lakey, Board Director (until 31 December 2019)
Please refer to page 123-124 of the DevelopmentWA Annual and Sustainability Report for the current Board member profiles.
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 179 2019-20 BOARD AND COMMITTEE REMUNERATION Board Remuneration
In 2019/20, there were 14 MRA Board meetings.
Position Board Member Meetings Period of Type of Actual attended membership Remuneration Remuneration Chairperson George McCullagh 14 1 July 2019 to Per Annum $53,995 30 June 2020 Deputy Chairperson Rebecca Field 14 1 July 2019 to Per Annum $38,549 30 June 2020 Board Member Kylee Schoonens 13 1 July 2019 to Per Annum $33,930 30 June 2020 Board Member Simon Read 12 1 July 2019 to Per Annum $33,930 30 June 2020 Board Member Dale Page 12 1 July 2019 to Per Annum $0.00 30 June 2020 Board Member Simon Reed 7 1 January 2020 to Per Annum $16,771 30 June 2020 Board Member Jane Bennett 13 1 July 2019 to Per Annum $33,930 30 June 2020 Board Member Paul Lakey 2 1 July 2019 to Per Annum $17,158 31 December 2019
The MRA Board has recommended suspension of Board remuneration from 1 July 2020 reflecting governance efficiencies arising from the transfer of assets and personnel from the MRA to DevelopmentWA.
AUDIT AND RISK MANAGEMENT COMMITTEE
The MRA Board has an Audit and Risk Management Committee that addresses issues particular to the roles and responsibilities assigned by the Board to the Committee. Principally, these relate to financial and risk issues that present for the MRA. Remuneration
The Audit and Risk Management Committee members are not remunerated.
In 2019/20, four Audit and Risk Management Committee meetings were held.
Position Committee member Meetings attended Audit and Risk Management Committee Member Simon Read 4 Member Rebecca Field 4 Member Paul Lakey 1 Member Simon Reed 2 Member Dale Page 2
180 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 LAND REDEVELOPMENT COMMITTEES
The Land Redevelopment Committees (LRCs) have been established for each Redevelopment Area to enable community and Local Government involvement in the development and delivery of urban renewal projects. The five committees, for Armadale, Central Perth, Midland, Scarborough and Subiaco respectively – have planning powers delegated by the MRA Board and provide advice on local planning matters. The MRA Act provides that an LRC consist of five members appointed by the Minister of whom: • one is to be a member of the MRA Board of Management nominated by the MRA; • one is to be a person nominated in accordance with section 81 of the MRA Act; and • each of the others is to be a person who in the opinion of the Minister, has a relevant qualification.
A relevant qualification is knowledge of, and experience in, one or more of the fields of urban planning, business management, property development, financial management, engineering, transport, housing, tourism development, planning, the law or community affairs. Members of the LRCs are appointed for a term no longer than two years and may be reappointed.
To enhance the transparency, accountability and operational efficiency of planning outcomes, DevelopmentWA continue to review the planning function including legislative obligations of the MRA.
In accordance with the Government direction for agency reform and increased planning and governance transparency, in August 2018, Cabinet approved the harmonisation of the five LRCs. As a result, three Board members, three common members and two common alternative members were appointed across all five LRCs as the next step of the harmonisation program.
In light of the Government direction to streamline Boards and Committees, the long term intention is for the establishment of a single LRC with common LRC members and a Local Government representative as required. However, this will require amendments to the MRA Act.
Remuneration
In 2019-20, the following number of LRC meetings were held:
Land Redevelopment Committees Armadale Central Perth Subiaco Scarborough Midland Number of meetings 6 6 2 0 1
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 181 Type of Period of Actual Position Committee member Remuneration membership Remuneration Armadale Land Redevelopment Committee Chairperson Dale Page Not eligible 12 months Nil Deputy Chairperson Karen Hyde Sessional 12 months $1800 Member Geoffrey London Sessional 12 months $1350 Member James Hewitt Sessional 9 months $270 Member Ruth Butterfield Sessional 11 months $1620 Alternate Member David Hartree Sessional 12 months Nil Alternate Member Diana Wearing-Smith Sessional 12 months Nil Central Perth Land Redevelopment Committee Chairperson Jane Bennett Nil 12 months Nil Deputy Chairperson Karen Hyde Sessional 12 months $1800 Member Geoffrey London Sessional 12 months $1350 Member James Hewitt Sessional 9 months $270 Member The late Eric Lumsden Not eligible 1 month Nil Alternate Member David Hartree Sessional 12 months Nil Alternate Member Diana Wearing-Smith Sessional 12 months Nil Midland Land Redevelopment Committee Chairperson Kylee Schoonens Nil 12 months Nil Deputy Chairperson Karen Hyde Sessional 12 months $300 Member Geoffrey London Sessional 12 months $270 Member James Hewitt Sessional 9 months Nil Member Charlie Zannino Sessional 12 months $270 Alternate Member David Hartree Sessional 12 months Nil Alternate Member Diana Wearing-Smith Sessional 12 months Nil Scarborough Land Redevelopment Committee Chairperson Kylee Schoonens Nil 12 months Nil Deputy Chairperson Karen Hyde Sessional 12 months Nil Member Geoffrey London Sessional 12 months Nil Member James Hewitt Sessional 9 months Nil Member Bianca Sandri Sessional 12 month Nil Alternate Member David Hartree Sessional 12 months Nil Alternate Member Diana Wearing-Smith Sessional 12 months Nil Subiaco Land Redevelopment Committee Chairperson Dale Page Not eligible 12 months Nil Deputy Chairperson Karen Hyde Sessional 12 months $900 Member Geoffrey London Sessional 12 months $270 Member James Hewitt Sessional 9 months $270 Member Murray Rowe Sessional 12 months $540 Alternate Member David Hartree Sessional 12 months Nil Alternate Member Diana Wearing-Smith Sessional 12 months $270
182 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 DISCLOSURES AND LEGAL COMPLIANCE
MINISTERIAL DIRECTIVES, RECOMMENDATIONS AND PRICING POLICIES
APPROVALS In accordance with the Metropolitan Redevelopment Authority Section 115(1) of the Metropolitan Redevelopment Authority Act Regulations 2011, the MRA provides planning services in 2011 (Act) provides: accordance with fees prescribed at Schedule 5 of the Regulations. “the Minister may give written directions to the Authority with respect to the performance of its functions under this or any DISABILITY ACCESS AND INCLUSION PLAN other Act, either generally or in relation to a particular matter, and the Authority must give effect to any such direction when it The MRA believes that people with a disability should have equal becomes effective under section 116.” opportunity to access its services, facilitates and information. In accordance with Part 5 of the Disabilities Services Act 1993, The MRA received no Ministerial Directives between 1 July 2019 the MRA established a new Disability Access and Inclusion to 30 June 2020. Plan (DAIP) for the period 2017-2022. This involved conducting Section 29(1) of the Act states: workshops with staff across the organisation and public consultation. The feedback sourced through this consultation “the Governor must not make regulations under section 30 or shaped the new strategies for the MRA DAIP for the 2017/2022 31 that declare land to be, or add land to a Redevelopment Area period. except on the recommendation of the Minister” Employee induction processes and ongoing policy Section 29(5) of the Act provides: implementation increased employee awareness of disability “if the Minister recommends the making of regulations the and access issues, addressing desired outcomes in accordance content of which is, in the Minister’s opinion, significantly with Schedule 3 of the Disability Services Regulations 2004 different to any recommendation made by the Western Australian during 2019-20. Planning Commission under this section, the Minister must cause notice of the difference to be laid before each House of Parliament or dealt with under section 132, within 14 days after the day on which the Minister’s recommendation is given”
The Minister did not make any recommendations on regulations that were significantly different to a recommendation from the Western Australian Planning Commission between 1 July 2019 to 30 June 2020.
Section 47(4) of the Act provides:
“if the Minister approves a draft redevelopment scheme the content of which is, in the Minister’s opinion, significantly different to any recommendation given by the Western Australian Planning Commission under section 46, the Minister must cause notice of the difference to be laid before each House of Parliament or dealt with under section 132, within 14 days after the scheme start day”
The Minister did not approve any draft Redevelopment Schemes that required tabling in Parliament between 1 July 2019 to 30 June 2020.
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 183 MARKETING AND ADVERTISING REPORTABLE EXPENDITURE COMPLIANCE WITH PUBLIC SECTOR STANDARDS AND
The Electoral Act 1907 (Section 175 ZE) requires the disclosure of ETHICAL CODES certain categories of expenditure. Details of the organisations The Metropolitan Redevelopment Authority’s information contracted and the amounts paid for the financial year are as on Compliance with public sector standards and ethical follows: codes is reported in the DevelopmentWA 2019-20 Annual and Sustainability Report. Market Research $20,065 Research Solutions Pty Ltd OCCUPATIONAL SAFETY, HEALTH AND INJURY MANAGEMENT Media Advertising $237,892 The Metropolitan Redevelopment Authority’s workers’ Carat Australia Media Services Pty Ltd compensation and injury management performance is reported in the DevelopmentWA 2019-20 Annual and Initiative Media Australia Pty Ltd Sustainability Report. NOVA Entertainment (Perth) Pty Limited AUS Media TV Pty Ltd T/as Firey Productions RECORDKEEPING PLAN Advertising $87,984 The Metropolitan Redevelopment Authority’s Recordkeeping plan is reported in the DevelopmentWA 2019-20 Annual and Hatchd Digital Sustainability Report. Marketforce Pty Ltd Mills Wilson FREEDOM OF INFORMATION REQUESTS Rare Pty Ltd The Metropolitan Redevelopment Authority’s Freedom of Information requests is reported in the DevelopmentWA 2019- Google Australia Pty Ltd 20 Annual and Sustainability Report. Guru Productions Pty Ltd Premium Publishers UNAUTHORISED USE OF CREDIT CARDS Department of Premier & Cabinet State Law During the 2019-20 reporting period there were two instance Publisher of personal expenditure totalling $124.91 including GST. These instances were accidental, reported appropriately and repaid Spectrum TV Pty Ltd by the individual officers concerned within the required Brendan Pang Nominees Pty Ltd timeframe. Boss Promotions T/As Fish Boss Polling $0 RECONCILIATION ACTION PLAN Direct Mail $0 The Metropolitan Redevelopment Authority’s Reconciliation Action Plan is reported in the DevelopmentWA 2019-20 Annual Total $345,941 and Sustainability Report.
184 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 KEY PERFORMANCE INDICATORS 2019/20
CERTIFICATION OF KEY PERFORMANCE INDICATORS We hereby certify that the Key Performance Indicators are based on proper records, are relevant and appropriate for assisting users to assess the Metropolitan Redevelopment Authority’s performance, and fairly represent the performance of the Metropolitan Redevelopment Authority for the financial year ended 30 June 2020.
George McCullagh Simon Read Board Chairperson Audit and Risk Management Committee Chairperson
14 September 2020 14 September 2020
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 185 KEY PERFORMANCE INDICATORS
The MRA Agency Level Desired Outcome is:
‘To deliver vibrant, attractive and active Redevelopment Areas by building a Sense of Place, enhancing Connectivity and Environmental Integrity, and promoting Economic Wellbeing, Urban Efficiency, and Social Inclusion through providing for the planning and redevelopment of those areas.’
This outcome is guided by the MRA Redevelopment Area Objectives as prescribed in the Metropolitan Redevelopment Authority Regulations 2011. Regulation 14 Redevelopment Area Objectives: s.30(5)(c) states:
The objectives of each Redevelopment Area are as follows, to: • build a sense of place by supporting high quality urban design, heritage protection, public art and cultural activities that respond to Perth’s environment, climate and lifestyle; • promote economic wellbeing by supporting, where appropriate, development that facilitates investment and provides opportunity for local businesses and emerging industries to satisfy market demand; • promote urban efficiency through infrastructure and buildings, the mix of land use and facilitating a critical mass of population and employment; • enhance connectivity and reduce the need to travel by supporting development aimed at well designed places that support walking, cycling and public transit; • promote social inclusion by encouraging, where appropriate, a diverse range of housing and by supporting community infrastructure and activities and opportunities for visitors and residents to socialise; and • enhance environmental integrity by encouraging ecologically sustainable design, resource efficiency, recycling, renewable energy and protection of the local ecology.
The Redevelopment Area Objectives define the outcomes that the MRA intends to deliver within its Redevelopment Areas. These Redevelopment Area Objectives apply to all of the MRA’s Project Areas within its Redevelopment Areas.
A single set of Key Performance Indicators (KPIs) is in place to measure the delivery of these Redevelopment Objectives. Each Redevelopment Area Objective is represented by a KPI that best reflects the individual Redevelopment Area Objective, and each KPI attempts to provide a useful measurement at any stage of the project cycle.
186 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20
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Redevelopment Areas require Redevelopment a mixture of housing sizes to ensure the needs of the demographic mix of an area are catered for and to ensure measurements. of consistency will Diversity Stock Housing be based on the number of bedrooms in a dwelling. This will represent a range of size of dwellings. The diversity of the the by delivered stock housing MRA in the Redevelopment Area is the most accurate measure to inclusion. social gauge Social Inclusion Social promoteTo social inclusion for various people in the requiring by area redevelopment housing affordable and diverse and supporting community infrastructure, activities and opportunities for visitors and residents to socialise. Diversity Stock Housing PlanningStatutory Control EfficiencyKey Indicator - Statutory Planning Determination Timeframes Determining Statutory applications is one of the most important and visible servicesexternal the MRA provides to directly to critical services delivery and has the ability to impact the MRA reputation. connectivity
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Urban Efficiency Urban To infrastructure and through buildings, the mix of land use and facilitating a critical mass of employment. and population Land Use Volume & Mix A critical mass of population is best measured through the produced buildings capacity of Redevelopment. the through include must measures These the mix of land use – residential, industrial and retail commercial, that might be included in MRA Areas.Redevelopment Authority
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Economic Wellbeing Economic economic promote To where supporting, by wellbeing developmentappropriate, facilitates investmentthat for opportunities provides and emerging and businesses local industries to satisfy market demand. Generated Investment The MRA invests money into Areas to Redevelopment stimulate the investment by other parties into the area. The proportion of investment made by private industry and/ or non MRA government bodies into the Redevelopment Area is an indicative measure of the economic activity that has MRA the from produced been investment. active
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DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 187
is
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The number of approved dwellings in the area was less than forecast in 2019/20, which can be largely attributed to the Wungong Urban Water Project Area. Market conditions and delays to Structure Plan approvals (as describedabove) affected receipt of development applications for residential proceed were to able were that developments residential The developments. also not within walkable catchments of public transport routes, resulting in a lower volume and percentage than targeted. The target anticipated further development of a precinct which was within close proximity to a public transport node. The shortfall will be catered for in future stages improve. of market conditions as development Analysis baseline the earlier. The survey was conducted in the 2016/17 year, and therefore is not required to be conducted in 2019/20. investment Private to general market softening and the economic impacts of COVID-19. The soft economic conditions have resulted in a reduction in the investment generated ratio due to a downturn in private investment. dwellings single were approved applications development residential All with 3+ bedrooms, which has been a consistent trend, broadly in line with expectations. The survey is conducted at the initiation of each project to establish a Non-MRA investment targets are estimated based on predictions of development major 2 included which applications development incoming applications estimated to total $115m.The performance against the The targeted number of development applications were not received as outlined above. However, those approved were all within the expected 4 star StarGreen range relevant. where
2 0% 0% 100% : (11.7%)
4 Star 6 (31.96:1) 5 Star 0 6 Star 0
11,062m 214 Units 2019/20 2019/20 1 2 $1,546,079 3+ $49,419,598 25 dwellings 25 Not applicableNot Actual Score Actual
2 5% 0% 95% : 70%
(37.0%) 5 Star 0 6 Star 0
4 Star 24 (359.81:1) 2019/20 2019/20 40,372m $484,990 1 327 Units 327 2 3+ 121 dwellings 121 $174,503,700 Target Score Target
2 0% 0% 100% :
(28.5%) 5 Star 0 6 Star 0
(93.53:1)
4 Star 14 2018/19 $650,983 284 Units 32,509m 1 2 3+ 81 dwellings81 $60,886,296 Not applicableNot Actual Score Actual
2 0% 0% 100% :
(8.52:1) (39.0%) 5 Star 0 6 Star 0
4 Star 12 2017/18 32,135m 305 Units 1 2 $3,425,935 3+ $29,178,278 119 dwellings 119 Not applicableNot Actual Score Actual
2 0% 0% 100%
1 51:1 17% 80%
5 Star 0 6 Star 0 4 Star 0
83 Units 2012/13 75,366m 1 Baseline 2 3+
2 The Armadale Redevelopment Area comprises the Armadale and Wungong Urban Project Areas. serviced apartments.Includes
User Satisfaction User Key Performance Performance Key Indicator User Satisfaction against: quality area Project - amenity area Project - vitality area Project - Generated Investment $ value of non-MRA investment compared to MRA investment. Land Use Volume and Mix approved of Number Application Development units residential Square metres of approved commercial, retail and space industrial Diversity Stock Housing Percentage approved of dwellings diverse residential according to number of bedrooms (1, 2 and 3 bedroom) percentage) (minimum Public Transit Access approved dwellings of Number within walkable catchment of transport nodes/stops. public Green Star Rating Number of (4-6) Green star buildings. equivalent) (or rated
ARMADALE REDEVELOPMENT AREA REDEVELOPMENT ARMADALE 1 2
188 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20
is
no
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whichever
performance.
dwellings
years,
market
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The number of approved dwellings in the area was less than forecast in 2019/20, which can be largely attributed to the Wungong Urban Water Project Area. Market conditions and delays to Structure Plan approvals (as describedabove) affected receipt of development applications for residential proceed were to able were that developments residential The developments. also not within walkable catchments of public transport routes, resulting in a lower volume and percentage than targeted. The target anticipated further development of a precinct which was within close proximity to a public transport node. The shortfall will be catered for in future stages improve. of market conditions as development Analysis baseline then once the project is normalised or every five years, whichever is the earlier. The survey was conducted in the 2016/17 year, and therefore is not required to be conducted in 2019/20. investment generated KPI is significantly impacted by market performance. Private sector development was reduced over the 2019/20 financial year due to general market softening and the economic impacts of COVID-19. The soft economic conditions have resulted in a reduction in the investment generated ratio due to a downturn in private investment. dwellings single were approved applications development residential All with 3+ bedrooms, which has been a consistent trend, broadly in line with expectations. baseline the earlier. The survey was conducted in the 2016/17 year, and therefore is not required to be conducted in 2019/20. investment The number of approved residential units in the area in 2019/20 was less than forecast. Estimates were based on projections of development approvals at Elizabeth Quay and Perth City Link but were not determined due to market conditions delaying further applications at Perth City Link and Quay. Elizabeth an at extended application the for period determination The sole development application approved with residential dwellings in the Central Perth Redevelopment area was supported below the 20% target in recognition that the application was located within the Waterbank Precinct which has previous and future development approvals expected to maintain a precinct wide mix in accordance with the targets. The applicable Development Policy 9, Affordable and Diverse Housing specifies target for 2 bedroom dwellings. The survey is conducted at the initiation of each project to establish a Non-MRA investment targets are estimated based on predictions of development major 2 included which applications development incoming applications estimated to total $115m.The performance against the The targeted number of development applications were not received as outlined above. However, those approved were all within the expected 4 star StarGreen range relevant. where The targeted number of development applications were not received as outlined above. All developments were within the walkable catchment as anticipated. All approved developments are to achieve a minimum 5 star Green Star rating in accordance with the Green Building Policy and the appropriate Design Guidelines. The targeted number of development applications were not received as outlined above, however the approved development was a 5 star Green Star. The survey is conducted at the initiation of each project to establish a Analysis Non-MRA investment targets are estimated based on predictions of performance such the as against applications, development incoming
2 0% 0% 2 100% 4% : : 31% 6 (5.11:1) (11.7%) 523m (100%)
5 Star 1 4 Star 6 (31.96:1) 5 Star 0 6 Star 0 6 Star 0 4 Star 0
83 Units 11,062m 214 Units 2019/20 2019/20 2019/20 2019/20 1 1 2 $1,546,079 3+ $49,419,598 25 dwellings 25 83 dwellings83 $ 13,895,422$ $71,000,000 Not applicableNot Not applicableNot Actual Score Actual Actual Score Actual 2 3+ 5%
2 2 5% 0% 95% : : 1 2 75% 70% (100%)
No target No (37.0%) (21.79:1) 5 Star 4 5 Star 0 6 Star 0 6 Star 0 4 Star 0
4 Star 24 (359.81:1) 47,395m 2019/20 2019/20 2019/20 2019/20 40,372m $484,990 902 Units 902 1 1 327 Units 327 2 3+ $40,292,818 $878,193,140 121 dwellings 121 $174,503,700 902 dwellings 902 Target Score Target Target Score Target 2 3+ 0% 0%
2 2 0% 0% 100% 5% : : 6 3 (100%)
(28.5%) (21.75:1) 5 Star 4 5 Star 0 6 Star 0 6 Star 0 4 Star 0
(93.53:1)
4 Star 14 2018/19 2018/19 64,718m $650,983 703 Units 284 Units 32,509m 1 1 2 3+ 81 dwellings81 $28,369,322 $60,886,296 $617,000,000 703 dwellings Not applicableNot applicableNot Actual Score Actual Actual Score Actual 2 3+ 2% 2.8%
2 2 0% 0% 100% : : 3 2 4 (100%)
(8.52:1) 4 Star 1 (39.0%) 5 Star 2 5 Star 0 6 Star 0 6 Star 0 (12.68:1)
4 Star 12 11,780m 2017/18 2017/18 32,135m 814 Units 305 Units 1 1 2 $3,425,935 3+ $29,178,278 $56,012,958 119 dwellings 119 $710,005,296 493 dwellings Not applicableNot Not applicableNot Actual Score Actual Actual Score Actual 2 3+ 8% 0% 2%
2 2
0% 0% 3 100%
1 1 51:1 3 4 17% 80% 90% 1.7 : 1 1.7
5 Star 2 6 Star 0 5 Star 0 6 Star 0 4 Star 4 4 Star 0
41 Units
83 Units 2012/13 2012/13 75,366m 36,808m 1 1 Baseline Baseline 2 3+
100% dwellings 100% 2 3+ 4.6% 8.8% 6.6% 4 2 The Armadale Redevelopment Area comprises the Armadale and Wungong Urban Project Areas. serviced apartments.Includes The Central Perth Redevelopment Area comprises the Elizabeth Quay, rooms. Perth hotel Includes City Link, Riverside, Perth Cultural Centre, New Northbridge, Claisebrook Village and East Perth Power Station Project Areas. Key Performance Performance Key Indicator Satisfaction User User Satisfaction against: quality area Project - amenity area Project - vitality area Project - Generated Investment $ value of non-MRA investment compared to MRA investment. Land Use Volume and Mix approved of Number Application Development units residential Square metres of approved commercial, retail and space industrial Diversity Stock Housing Percentage approved of dwellings diverse residential according to number of bedrooms (1, 2 and 3 bedroom) percentage) (minimum Public Transit Access approved dwellings of Number within walkable catchment of transport nodes/stops. public Green Star Rating Number of (4-6) Green star buildings. equivalent) (or rated Performance Key Indicator User Satisfaction against: quality area Project - amenity area Project - vitality area Project - Generated Investment $ value of non-MRA investment compared to MRA investment. Land Use Volume and Mix approved of Number Application Development units residential Square metres of approved commercial, retail and space industrial Diversity Stock Housing Percentage approved of dwellings diverse residential according to number of bedrooms (1, 2 and 3 bedroom) percentage) (minimum Public Transit Access approved dwellings of Number within walkable catchment of transport nodes/stops. public Green Star Rating Number of (4-6) Green star buildings. equivalent) (or rated User Satisfaction User
ARMADALE REDEVELOPMENT AREA REDEVELOPMENT ARMADALE 1 2 CENTRAL PERTH REDEVELOPMENT AREA 3 4
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 189
is
market
for
and whichever
performance. year
years,
market
economic five
financial
by
every
poorer
or
2019/20 to
impacted
the
due
for
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generated
then
Non-MRA investment targets are estimated based on predictions of performance such the as against applications, development incoming The forecasted residential development applications in Midland were not received in 2019/20, due to poorer economic and market conditions than anticipated as well as the impact of COVID-19 since February 2020. baseline the earlier. The survey was conducted in the 2016/17 year, and therefore is not required to be conducted in 2019/20. investment Development the Midland Project area were not received, negatively impacting both the investment generated ratio and the land use volume and mix. Private development conditions as well as the impact of COVID-19 since February 2020. The survey is conducted at the initiation of each project to establish a Analysis
2 : Nil Nil (0:1) 0 m $0.00 0 Units 5 Star 0 6 Star 0 4 Star 0 $531,362 2019/20 2019/20 Not applicableNot Actual Score Actual
2 : 1 2 (100%)
No target No 4 Star 7 5 Star 0 6 Star 0
3,816m (27.48:1)
36 Units 2019/20 2019/20 1 2 $3,000,161 3+ $82,459,755 36 dwellings36 Not applicableNot Target Score Target 0% 0%
2 : Nil Nil (100%) 0 Units 4 Star 1 5 Star 0 6 Star 0 $93,525 12,719m (267.31:1) 2018/19 $25,000,000 Not applicableNot Actual Score Actual
2 : Nil Nil (100%) 0 Units 4 Star 2 5 Star 0 6 Star 0 (57.69:1) 2017/18 58,428m $1,922,471 $110,909,500 Not applicableNot Actual Score Actual
2 4 6 5 76% 100% 4.6 : 1
4 Star 1 5 Star 0 6 Star 0
15 Units
8,485m 2012/13
1 Baseline 2 3+ 5 3.3% 0% .6% 6 The Midland Redevelopment Area comprises the Midland Project Area. serviced apartments.Includes Green Star Rating Number of (4-6) Green star buildings. equivalent) (or rated Key Performance Performance Key Indicator User Satisfaction against: quality area Project - amenity area Project - vitality area Project - Generated Investment $ value of non-MRA investment compared to MRA investment. Land Use Volume and Mix approved of Number Application Development units residential Square metres of approved commercial, retail and space industrial Diversity Stock Housing Percentage approved of dwellings diverse residential according to number of bedrooms (1, 2 and 3 bedroom) percentage) (minimum Public Transit Access approved dwellings of Number within walkable catchment of transport nodes/stops. public User Satisfaction User
5 6 MIDLAND REDEVELOPMENT AREA
190 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20
is
no
but space
floor
whichever
performance.
dwellings
retail
years,
market
five
by
bedroom
3+
every
commercial/
or
and
impacted and
units
bedroom
normalised 1
is
for
significantly
is
residential
project KPI
targets
the
approved
once
of
generated
percentage
then
number
Non-MRA investment targets are estimated based on predictions of performance such the as against applications, development incoming The survey is conducted at the initiation of each project to establish a baseline the earlier. The survey was conducted in the 2016-17 year, and therefore is not required to be conducted in 2019/20. investment State investment in the Scarborough project area is majority completed, investment in Scarborough is now predominantly private. The in the area in 2019/20 was less than forecast. The forecasted development applications in the area were not received in 2019/20 due to market conditions However indications are that 2020/21 will see an increase in major applications. development The targeted dwelling diversity was generally consistent with the minimum targets in Development Policy 9, Affordable and Diverse Housing , with the exception of only 16% single bedroom dwellings rather than 20% (which given a total of 18 dwellings is a shortfall of only one single bedroom dwelling). The applicable Development Policy 9, Affordable and Diverse Housing specifies target for 2 bedroom dwellings. The targeted number of development applications were not received as outlined above. The two development applications received will achieve a minimum 4 star Green Star rating in accordance with the Green Building Guidelines. Design appropriate the and Policy Analysis The targeted number of development applications were not received as outlined above, reducing the total number of dwellings within walkable walkable the within were received developments all However, catchments. catchment as anticipated.
2 : 1 1 6 0 m (100%)
4 Star 2 5 Star 0 6 Star 0
18 Units 18 (30.56:1)
$144,294 2019/20 2019/20 1 2 3+ $4,409,065 18 dwellings 18 Not applicableNot Actual Score Actual 6% 7% 7%
2 : 1 2 $0 (n/a) (100%) no target no
4 Star 7 5 Star 0 6 Star 0
14,407m 472 Units 2019/20 2019/20 1 2 3+ $333,797,400 472 dwellings 472 Not applicableNot Target Score Target 0% 0%
2 8% : 35% 5 $0 (n/a) 214m (100%)
5 Star 1 4 Star 1 6 Star 0
80 Units 2018/19 1 2 3+ $38,100,000 80 dwellings80 Not applicableNot Actual Score Actual 6%
2 : 3 3 2 (100%)
(10.18:1) 4 Star 3 5 Star 0 6 Star 0
10,198m 2017/18 578 Units 1 2 3+ $311,951,313 $30,644,800 578 dwellings Not applicableNot Actual Score Actual 2% 9% 9%
2
8 7 8 : 5 3 81% (100%)
(25.2:1) 4 Star 1 5 Star 0 6 Star 0
2,496m 2015/16 236 Units 1 Baseline 2 $3,562,897 3+ $89,825,135 236 dwellings236 % 8% 4% 8 9 The Scarborough Redevelopment Area comprises the Scarborough Project Area. The User Satisfaction survey was conducted in 2016/17 serviced apartments.Includes Key Performance Performance Key Indicator User Satisfaction against: quality area Project - amenity area Project - vitality area Project - Generated Investment $ value of non-MRA investment compared to MRA investment. Land Use Volume and Mix approved of Number Application Development units residential Square metres of approved commercial, retail and space industrial Diversity Stock Housing Percentage approved of dwellings diverse residential according to number of bedrooms (1, 2 and 3 bedroom) percentage) (minimum Public Transit Access approved dwellings of Number within walkable catchment of transport nodes/stops. public Green Star Rating Number of (4-6) Green star buildings. equivalent) (or rated User Satisfaction User
SCARBOROUGH REDEVELOPMENT AREA 7 8 9
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 191
is
whichever
performance.
years
market
five
by
every
or
impacted
normalised
is
significantly
is
project KPI
the
once
generated
then
The targeted number of development applications were not received as outlined above. The new development will achieve a minimum 4 star Green Star accordance with the Green Building Policy and the applicable Design Guidelines. baseline the earlier. The survey was conducted in the 2016-17 year and therefore is not required to be conducted in 2019/20. investment There was no capital spend in the Subiaco Redevelopment Area in 2019/20, due to the project nearing completion for the MRA. The number of approved residential units in the area in 2019/20 was less than forecast. This was due to a late submission which is now projected to be determined in the 2020/21 Financial Year. Development in the Subiaco Redevelopment Area exceeds the minimum housing diversity targets set out in Development Policy 9, Affordable and Diverse Housing and provides a balanced range of one, two and three dwellings. bedroom The survey is conducted at the initiation of each project to establish a Non-MRA investment targets are estimated based on predictions of performance such the as against applications, development incoming The targeted number of development applications were not received as outlined above. All approved development was within a walkable catchment. Analysis
2 : 4 2 3 $0 (n/a) 96m (100%)
4 Star 1 5 Star 0 6 Star 0
23 Units 2019/20 2019/20 1 2 3+ $8,000,000 23 dwellings 23 Not applicableNot Actual Score Actual 6% 0% 4%
2 : 1 2 $0 (n/a) 123m (100%) no target no
4 Star 7 5 Star 0 6 Star 0
155 Units 2019/20 2019/20 1 2 3+ $58,697,645 155 dwellings155 Not applicableNot Target Score Target 0% 0%
2 : 13% 2 6 $0 (n/a) 76m (100%)
4 Star 1 5 Star 0 6 Star 0
80 Units 2018/19 1 2 3+ $21,890,000 80 dwellings80 Not applicableNot Actual Score Actual 2% 3%
2 : 3 4 2 $0 (n/a) (100%)
4 Star 3 5 Star 0 6 Star 0
17,921m 131 Units 2017/18 1 2 3+ 131 dwellings131 $83,802,000 Not applicableNot Actual Score Actual 0% 6% 4%
2 8. 41 4 82% 345m (100%)
36.4 : 1
4 Star 1 5 Star 0 6 Star 0
9 101 Units 101 2012/13 1 Baseline 2 3+ 10 9.5% .7% 8% 10 11 Includes serviced apartments.Includes The Subiaco Redevelopment Area comprises the Subi Centro and Subiaco East Project Area.
Key Performance Performance Key Indicator User Satisfaction against: quality area Project - amenity area Project - vitality area Project - Generated Investment $ value of non-MRA investment compared to MRA investment. Land Use Volume and Mix approved of Number Application Development units residential Square metres of approved commercial, retail and space industrial Diversity Stock Housing Percentage approved of dwellings diverse residential according to number of bedrooms (1, 2 and 3 bedroom) percentage) (minimum Public Transit Access approved dwellings of Number within walkable catchment of transport nodes/stops. public Green Star Rating Number of (4-6) Green star buildings. equivalent) (or rated User Satisfaction User SUBIACO REDEVELOPMENT AREA 10 11
192 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20
efficient
maintaining
Analysis Median determination timeframes standard development for applications were less than the target 90 days period in all areas, minor more these of processing developments. The longer timeframes for major in applications development PerthCentral were Subiaco and as a result of extensive design plans, to amendments review, and additional information being required. development major No received were applications in Midland or Scarborough in 2019/20. The ratio is less relevant as all MRA development assets have Development transferredbeen to andWA the MRA therefore no longer holds any material value of inventory at year end. 7 5 3 6 2 4 0 6 6 88 4 6 6 15 N N 20
Standard Major Standard Major Standard Major/A Standard Major Standard Major/A 23% 2019/20 2019/20 Actual Score Actual Armadale Central Perth Midland Subiaco Scarborough 0 0 0 0 0 9 9 9 9 9 1 1 1 1 1
Standard Major Standard 20 Major Standard 20 Major Standard 20 Major Standard 20 Major 20 6% 2019/20 2019/20 Target Score Target Armadale Central Perth Midland Subiaco Scarborough 1 5 9 0 6 5 85 29 9 101 13 190 140 N
Standard Major/A Standard Major Standard Major Standard Major Standard Major 9% 2018/19 Actual Score Actual Armadale Central Perth Midland Subiaco Scarborough 7 5 6 2 4 4 4 5 7 6 4 4 13 1 163 149 N
Standard Major/A Standard Major Standard Major Standard Major Standard Major 24 13% 2017/18 Actual Score Actual Armadale Central Perth Midland Subiaco Scarborough
11% 59 days 2012/13 Baseline profit
gross
plus
Services Delivery of major MRA within projects Areas Redevelopment Performance Indicator Key Ratio net operational of overheads average to inventory PlanningStatutory Control Performance Indicator Key Median determination timeframe in days for applications development (standard * and major **), subdivision applications and structure plans SERVICES * Section 65(2) of the Metropolitan Redevelopment Authority Act 2011 requires standard development applications be to approvedreceived. within 90 days after the date on which the application is ** Section 65(2) of the Metropolitan Redevelopment Authority Act 2011 requires major development applications be approved within 120 days after the date on which the application is received.
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 193 MRA METHODOLOGY NOTES TO ACCOMPANY • Development applications for mixed-use developments EFFECTIVENESS RESULTS which did not include residential or applications for transient residential such as hotel uses were not included. • Dwelling statistics for all approved residential dwellings were User Satisfaction obtained from PACS. The survey is conducted at the initiation of each project to establish a baseline then once the project is normalised or Connectivity every five years whichever is the earlier. The survey was • Results derived by using only: conducted in the 2016-17 year and therefore is not required to o Residential and Mixed-Use development applications; be conducted in 2019-20. The MRA has a target of 66% for the o Approved development applications; and overall life of each Redevelopment Area. o Development applications approved in 2019-20 financial year were selected. Investment Generated • Straight Line Distance Analysis: Results derived by: o Development applications which were within walkable MRA Investment: 400metre distance of a bus stop and/or 800metre of • Amount capitalised as inventory. transit stops were analysed. • Plus any capitalised work on the MRA’s investment • Walkable Distance Analysis: properties. o The list of development application lots within a straight • Plus the cost of works done by the MRA for other government line 400metre to 800metre distance of a transit stop agencies. were assessed to see if they were within 400metre to • Plus the cost of works facilitated by the MRA within the 800metre via the road network. This was undertaken Development Contribution Plans. using Google Maps measurement tool as the transit stops Non-MRA Investment: are visible on Google Maps. • Development applications approved in the period were • Final count of applicable development applications within filtered by redevelopment area, then by project and precinct. walkable distance of transit stops by scheme area: A ratio is then sought after both non-MRA investment and MRA o The list of applicable development applications within investment has been calculated. walkable distance of transit was then sorted by Project Area. The formula is value of non-MRA investment ($) compared to MRA investment ($). Environmental Integrity
Urban Efficiency • Results derived by only including development applications approved in the last financial year for each redevelopment Number of approved development applications for residential area and then by project area and precinct. units • These results were further refined by including only • This was demonstrated by the number of approved development applications for new commercial, industrial, development applications for residential, mixed use, change mixed use, community or residential units excluding single of use to residential and amendments approved in the last dwellings. financial year per redevelopment area, then by project and • Green-Star conditions are only imposed when constructing precinct. new buildings. Square metres of approved development applications for • Development approvals and individual files were reviewed commercial, retail, industrial etc. space to determine whether a (4/5/6 star) Green-Star rating was • This was demonstrated by the number of development imposed as a condition of the approval. applications approved in the last financial year per Statutory Planning Control redevelopment area, then by project and precinct. • Development applications for small additions such as patios • The measure utilised was the average timeframe (in days) and fencing were not included. within which development applications (standard and major) • Details of all approved floor space for applications were were determined and applicants notified. obtained from the Planning and Contract of Sale system • Subdivision applications are determined by the Western (PACS). Australian Planning Commission (WAPC) within the Armadale Redevelopment Area, with the WAPC providing the MRA Social Inclusion with a 42-day referral period prior to them making a • Includes development applications approved in the last determination. financial year in each Redevelopment Area. • The development applications were for residential, mixed use, change of use to residential and amendments to development applications.
194 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 FINANCIAL REPORT
FOR THE YEAR ENDED 30 JUNE 2020
The Metropolitan Redevelopment Authority (MRA) has pleasure in presenting its audited general purpose financial statements for the financial reporting period ended 30 June 2020 which provides users with the information about the MRA’s stewardship of resources entrusted to it.
CERTIFICATION OF FINANCIAL STATEMENTS The accompanying financial statements of the Metropolitan Redevelopment Authority have been prepared in compliance with the provisions of the Financial Management Act 2006 (WA) from proper accounts and records to present fairly the financial transactions for the financial year ending 30 June 2020 and the financial position as at 30 June 2020.
At the date of signing we are not aware of any circumstances which would render the particulars included in the financial statements misleading or inaccurate.
George McCullagh Simon Read Board Chairperson Audit and Risk Management Committee Chairperson 14 September 2020 14 September 2020
Fiona Barclay Chief Financial Officer 14 September 2020
[GRI Disclosures 102-45] DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 195 196 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 197 198 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 199 STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2020
Note 2020 2019 $000 $000 Income Sales Revenue A.1 18,032 15,540 Developer Contribution Income 3,115 7,164 Interest A.1 5,124 8,684 Rechargeable Works 274 4,148 Other Income A.1 6,913 7,701 Fair Value Increment for Distribution to Owner E.2 18,098 Fair Value Increments on Investment Property B.2 3,080 301 Total Income 54,636 43,538 Expenditure Cost of Goods Sold A.1 11,657 13,311 Employee Benefits A.2 11,853 12,451 Supplies and Services A.2 6,630 7,476 Depreciation and Amortisation A.2/E.6 9,642 9,383 Developer Contribution Expense 1,471 172 Finance Costs C.4/E.6 7,716 5,655 Rechargeable Works 275 3,340 Other Expenses A.2 1,520 1,587 Property Maintenance 7,802 6,435 Sales and Marketing 1,479 2,412 Infrastructure Development Expense 8,248 13,458 Fair Value Decrements on Investment Property B.2 8,145 - Write Down of Inventory to Net Realisable Value A.1 57,712 49,168 Total Expenditure 134,150 124,848 Net Loss Other Than Income from State Government (79,514) (81,310) Income from State Government Services Received Free of Charge A.1 181 199 Grants and Contributions from Other Government Agencies A.1 21,292 41,354 Surplus/(Loss) for the Period (58,041) (39,757)
Other Comprehensive Income / (Loss) Items not reclassified subsequently to profit or loss Remeasurements of Defined Benefit Liability D.2 (93) (270) Total Other Comprehensive Income / (Loss) (93) (270) Total Comprehensive Income/(Loss) for the Period (58,134) (40,027)
The Statement of Comprehensive Income should be read in conjunction with the accompanying notes.
200 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2020
Note 2020 2019 ASSETS $000 $000 Current Assets Cash and Cash Equivalents C.2 13,847 8,776 Restricted Cash and Cash Equivalents C.2 1,114 1,145 Inventories E.2 6,140 74,841 Receivables E.1 38,597 28,705 Other Current Assets E.3 100 826 Total Current Assets 59,798 114,293 Non-Current Assets Restricted Cash and Cash Equivalents C.2 36,933 34,616 Inventories E.2 1,555 57,710 Receivables E.1 21,556 40,580 Property, Furniture and Equipment B.1 24,438 28,785 Investment Properties B.2 26,250 59,970 Infrastructure B.1 185,505 190,219 Right of Use Assets E.6 3,527 - Intangible Assets B.3 4 131 Total Non-Current Assets 299,768 412,011 Total Assets 359,566 526,304 LIABILITIES Current Liabilities Payables E.4 4,667 6,795 Borrowings C.3 211,692 58,300 Lease Liabilities E.6 449 - Income in Advance E.5 856 746 Provisions D.1/D.2 /F.3 7,534 3,597 Total Current Liabilities 225,198 69,438 Non-Current Liabilities Payables E.4 - 4,960 Borrowings C.3 - 189,657 Lease Liabilities E.6 8,830 - Provisions D.1/D.2 /F.3 4,363 4,456 Other Non-Current Liabilities E.5 728 728 Total Non-Current Liabilities 13,921 199,801 Total Liabilities 239,119 269,239 Net Assets 120,447 257,065 EQUITY Contributed Equity C.5 475,819 553,655 Asset Revaluation Reserve C.5 70 70 Accumulated Losses C.5 (355,442) (296,660) Total Equity 120,447 257,065
The Statement of Financial Position should be read in conjunction with the accompanying notes.
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 201 STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2020
Contributed Accumulated Note Equity Reserves Surplus/(Losses) Total Equity $000 $000 $000 $000 Balance at 1 July 2018 C.5 386,787 70 (238,669) 148,188 Prior Period impact of Inventory restatement E.2 - - (17,964) (17,964) Restated Balance at 1 July 2018 386,787 70 (256,633) 130,224 Surplus/(Loss) - - (39,757) (39,757) Other Comprehensive Income - - (270) (270) Total Comprehensive Loss for the Period - - (40,027) (40,027) Transactions with Owners in their Capacity as Owners Contributions from Owners 166,868 - - 166,868 Balance at 30 June 2019 C.5 553,655 70 (296,660) 257,065
Balance at 1 July 2019 C.5 553,655 70 (296,660) 257,065 Initial application of AASB 15 - - (394) (394) Initial application of AASB 16 - - (254) (254) Restated Balance at 1 July 2019 553,655 70 (297,308) 256,417 Surplus/(Loss) (58,041) (58,041) Other Comprehensive Losses - - (93) (93) Total Comprehensive Loss for the Period - - (58,134) (58,134) Transactions with Owners in their Capacity as Owners Contributions from Owners 56,716 - - 56,716 Distributions to Owners (134,552) - - (134,552) Balance at 30 June 2020 C.5 475,819 70 (355,442) 120,447
The Statement of Changes in Equity should be read in conjunction with the accompanying notes.
202 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2020
Note 2020 2019 $000 $000 Cash Flows from Operating Activities Interest Received 482 605 Developer Contribution Fees 3,115 5,649 Other Operating Receipts 37,811 30,180 GST Receipts from Taxation Authority 1,412 3,270 Employee Benefits (12,076) (12,811) Development Contribution Expenses (1,357) (1,042) Payments to Suppliers (20,718) (37,907) GST Payments to Taxation Authority (1,732) (6,278) Net Cash provided by/(used in) Operating Activities A.3 6,937 (18,334)
Cash Flows from Investing Activities Proceeds from Sale of Non-Current Assets - 10,922 Payments for Capital Works (11,317) (24,504) Payments for Capital Assets (672) (3,574) Net Cash provided by/(used in) Investing Activities (11,989) (17,156)
Cash flows from Financing Activities Proceeds from Borrowings 20,201 24,156 Finance Costs Expensed (7,929) (9,139) Repayment of Borrowings (56,466) (188,220) Net Cash provided by/(used in) Financing Activities (44,194) (173,203)
Cash Flows from State Government Grants and Subsidies 21,292 41,354 Distribution to Owners (21,405) - Contribution from Owners 56,716 166,867 Net Cash provided by/(used in) State Government 56,603 208,221
Net increase / (decrease) in Cash and Cash Equivalents 7,357 (472)
Opening Cash Balance 44,537 45,009 Cash and Cash Equivalents at the End of the Period C.2 51,894 44,537
The Statement of Comprehensive Income should be read in conjunction with the accompanying notes.
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 203 NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
ABOUT THESE STATEMENTS The Metropolitan Redevelopment Authority (‘the MRA’) is a Western Australian Government entity, controlled by the State of Western Australia. The nature of operations and principal activities are described in the Overview of the Agency, which does not form part of these financial statements. The MRA is a not-for-profit entity, with profit not being its principal objective. These financial statements were authorised for issue on 24 August 2020 by the MRA’s Board.
STATEMENT OF COMPLIANCE As a not-for-profit reporting entity, the MRA prepares general purpose financial statements in accordance with Australian Accounting Standards - Reduced Disclosure Requirements, the Conceptual Framework, Statements of Accounting Concepts and other authoritative pronouncements of the Australian Accounting Standards Board (AASB) as applied by the Treasurer’s Instructions. Several of these are modified by the Treasurer’s Instructions to vary application, disclosure, format and wording. The Financial Management Act 2006 and the Treasurer’s Instructions impose legislative provisions that govern the preparation of financial statements and take precedence over Australian Accounting Standards (AAS), the Conceptual Framework, Statements of Accounting Concepts and other authoritative pronouncements of the AASB.
BASIS OF PREPARATION The financial statements have been prepared on the accrual basis of accounting using the historical cost convention, except for land, buildings (including investment property) and artworks which have been measured at fair value. The accounting policies adopted in the preparation in the financial statements have been consistently applied throughout all periods presented unless otherwise stated. Where modification is required and has had a material or significant financial effect upon the reported results, details of that modification and the resulting financial effect are disclosed in the Notes to the financial statements.
ROUNDING The financial statements are presented in Australian dollars and all values are rounded to the nearest thousand dollars ($000).
COMPARATIVE FIGURES Comparative figures are, where appropriate, reclassified to be comparable with the figures presented in the current financial year. Restatement of prior period non-current inventory values within the Central Perth redevelopment area has impacted prior period inventory and Equity balances, see E.2 Inventories and C.5 Equity. This has occurred as a result of information to support a Net Realisable Value write-down that should have been considered in previous years.
Restated 1 July 2018 1 July 2018 Change $000 $000s $000 Statement of Financial Position Non-Current Inventory 168,293 150,329 (17,964) Statement of Changes in Equity Accumulated Deficit (238,669) (256,633) (17,964)
ACCOUNTING STANDARDS AND INTERPRETATIONS ISSUED BUT NOT YET EFFECTIVE The MRA did not early adopt any new amended AASs and Interpretations issued but not yet effective. Refer to Note F.9 for additional information on new and amended Australian Accounting Standards and interpretations issued but not yet effective.
204 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 OTHER ACCOUNTING POLICIES Significant accounting policies that summarise the measurement basis used and are relevant to an understanding of the financial statements are provided throughout the Notes to the financial statements. The notes are organised into the following sections: Section Performance for the Year A. Key Assets B. Capital Management C. Employee Benefits D. Other Assets and Liabilities E. Other Items F. Development Contribution Plans (DCP) are included within the MRA’s financial statements, as the MRA is deemed to have control over the operations and financial decision making of the DCP’s. Transactions and balances between the MRA and the DCP are not presented in the MRA’s financial statements as they are transactions within the same economic entity. KEY ESTIMATES AND JUDGEMENTS Judgements, estimates and assumptions are required to be made about the presentation of certain financial information. Significant judgements and estimates made in the preparation of these financial statements are disclosed in the Notes. Estimates and associated assumptions are based on professional judgements in conjunction with management’s understanding of current circumstances. Information about significant areas of estimation, uncertainty and critical judgements in applying accounting policies are: Note Fair value of land and buildings transferred to Western Australian Land Authority B.1/2/4 Net realisable value of inventory E.2 Fair value of investment property B.2 Provision for contaminated sites F.3 Provisions for employee related benefits D.1 Expected credit losses A.2/E.1
FINANCIAL AND CAPITAL RISK MANAGEMENT
The Board has overall responsibility for the establishment and oversight of the MRA’s Risk Management Framework. The Audit and Risk Management Committee has oversight of the MRA’s internal control system and risk management processes, including the oversight of internal audit activity.
The MRA’s management of financial and capital risks is aimed at ensuring that available capital, funding and cash flows are sufficient. The below risks arise in the normal course of the MRA’s business. Risk information can be found in the following sections:
Note Liquidity risk C.1 Interest rate risk C.1 Credit risk C.1
CONTRIBUTED EQUITY Recognition and Measurement AASB Interpretation 1038 Contributions by Owners Made to Wholly-Owned Public Sector Entities requires transfers in the nature of equity contributions, other than as a result of a restructure of administrative arrangements, to be designated by the Government (the owner) as contributions by owners (at the time of, or prior to transfer) before such transfers can be recognised as equity contributions. Capital appropriations have been designated as contributions by owners by Treasurer’s Instruction 955 Contributions by Owners Made to Wholly Owner Public Sector Entities and have been credited directly to Contributed Equity. The transfers of net assets to/from other agencies, other than as a result of a restructure of administrative arrangements, are designated as contributions by owners where the transfers are non-discretionary and non-reciprocal.
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 205 A. PERFORMANCE FOR THE YEAR IN THIS SECTION This section addresses financial performance for the reporting period including, where applicable, the accounting policies applied and the key estimates and judgements made.
Recognition and Measurement Revenue from customers is recognised in the Statement of Comprehensive Income in accordance with AASB 15 when control is transferred.
A.1 SALES REVENUE AND OTHER INCOME Trading Profit 2020 2019 $000 $000 Sales Revenue 18,032 15,540 Cost of Sales: Opening Inventory at NRV 132,551 168,480 Transfers from Investment Property - 1,570 Transfers to Property, Plant and Equipment - (187) Purchases 10,536 25,167 Goods Available for Sale 143,087 195,030 Closing Inventory at NRV 7,695 132,551 Cost of Goods Sold (11,657) (13,311) Trading Profit / (Loss) 6,375 2,229 Less: NRV Write-Down of Inventory 57,712 49,168 Overall Profit / (Loss) (51,337) (46,939)
Sales Revenue Up to 30 June 2019, revenue from sales was recognised when the significant risks and rewards of ownership transferred to the purchaser and could be reliably measured. From 1 July 2019, the MRA recognises sale revenue at a point in time at the transaction price when control transfers to the customer. This is normally on settlement of the transaction and transfer of legal title. For conditional exchanges, sales are recognised only when all the significant conditions are satisfied. For sales where part of the purchase price has been deferred, the fair value of the consideration will be the present value of future receipts, discounted at a market discount rate. In such instances a significant component comprises a financing element which is separately identified within the statements in interest income. It is the MRA’s practice to maintain an option to repurchase land if the purchaser breaches any covenants in relation to the future development of the land.
Inventories All land and buildings and capital works held for development and subsequent sale are regarded as inventory and are classified as such in the Statement of Financial Position. Development expenditure is capitalised with reference to the stage of completion of the project. Inventory is held at the lower of cost and net realisable value (NRV). The MRA recognises as inventory all of the costs which have been incurred in bringing developed land to a condition ready for sale. Such costs are typically accumulated on a project by project basis. The MRA allocates development costs to individual lots within the project on a rational and consistent basis given the specific circumstances of the project. Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and, if appropriate, the estimated costs of making the sale. Cost includes the costs of acquisition development, holding and borrowing costs incurred during development. Restatement of prior period non-current inventory values within the Central Perth redevelopment area has impacted prior period inventory balances, see E.2 Inventories.
Developer Contribution Plan Developer Contribution Plan (DCP) revenues are recognised when developers obtain clearance of development/subdivision conditions for land held within the DCP area or at the expiry of the DCP, unless administration of the DCP is transferred to another party.
206 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 A.1 SALES REVENUE AND OTHER INCOME (continued)
Interest Revenue
Interest income consists of the following items: 2020 2019 Interest $000 $000 MRA Interest Revenue 52 95 Development Contribution Plan Interest 323 479 Interest Recognised on Deferred Payments 4,749 8,110 Total Interest Income 5,124 8,684
The MRA recognises interest receivable as it accrues. Interest recognised on deferred payments for land sales relates to the increase in the value of the receivable as a result of the time value of money. As such, the MRA’s interest revenue is derived predominantly from nominal interest applied in respect of staged sales proceeds.
Other Income
Other Income consists of the following items: 2020 2019 $000 $000 Other Income Development Applications and Planning Fees/Charges 381 488 Venue Hire 373 517 Rental Revenue 1,665 2,481 Tenant Outgoings - Recoverable 1,519 1,492 Levies & Charges 705 - Other Revenue 2,270 1,851 Gain on Disposal of Fixed Assets - 872 Total Other Income 6,913 7,701
Development Applications, Planning Fees/Charges The MRA receives fees from developers and the community in relation to development applications, subdivision clearances, zoning certificates, scheme amendments and providing planning documentation. The charges and fees are in accordance with Part 6, Metropolitan Redevelopment Authority Regulations 2011. The fees and charges are recognised when they are received.
Rental The MRA operates a number of commercial tenancies. It also holds a small number of residential properties. Rental income arising on investment properties is accounted for on a straightline basis over the lease term and is recognised as income in the periods in which it is earned. Incentives representing rental free periods or reduced rentals are accounted for in accordance with the rental income policy whereby rental income from investment properties is accounted for on a straight line basis over the lease term. If not received at the reporting date, revenue is reflected in the Statement of Financial Position as a receivable and carried at fair value.
Tenant Recoverable Outgoings Tenant recoverable outgoings represent funds received from tenants for expenditure directly related to their tenancies. These were initially paid for by the MRA when the expenses were incurred and are recorded within the Statement of Comprehensive Income in accordance with the nature of the expenditure’s classification.
Gain on Disposal of Fixed Assets
Gains on the disposal of non-current assets are presented by deducting from the proceeds on disposal the carrying amount of the asset. Gains are recognised in the Statement of Comprehensive Income.
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 207 A.1 SALES REVENUE AND OTHER INCOME (continued)
Income from State Government 2020 2019 $000 $000 Income from State Government consists of: Services Received Free of Charge 181 199 - State Solicitors Office (provision of legal services) Recurrent Appropriations 21,292 41,354 Total Income from State Government 21,473 41,553
Services Received Free of Charge or for Nominal Cost Services received free of charge or for nominal cost that can be reliably measured are recognised as income at fair value. Where the resource received represents a service that the MRA would otherwise pay for, a corresponding expense is recognised. Receipts of assets are recognised in the Statement of Financial Position.
Grants and Recurrent Appropriations Grants and recurrent appropriations are recognised when they are received.
Levies and Charges Levies and charges are received from land owners to fund place making activities in the Central Perth Redevelopment Area. Levies and charges are recognised as income in the period in which they are earned.
Contributions Contributions are only recognised as revenue when they do not represent contributions by owners. Revenue is recognised at fair value when the MRA obtains control over the assets comprising the contributions. If the contributions are in the form of cash, control is usually obtained when cash is received. If the contributions are in the form of land or buildings, control is usually obtained when settlement of the acquisition occurs and title is transferred. Contributions of services are only recognised when a fair value can be reliably determined and the services would be purchased if not donated. A.2 EXPENSES
Recognition and Measurement Expenditure is recognised in the Statement of Comprehensive Income to the extent that it is probable that the economic benefits will flow from the MRA and the expenditure can be reliably measured.
Employee Benefits Expenses 2020 2019 $000 $000
Employee Benefits Expenses Wages and Salaries 10,848 11,551 Superannuation - Defined Contribution 1,025 1,087 Superannuation - Defined Benefit Plans (93) (270) Staff Training and Memberships 40 52 Fringe Benefits Tax 33 31 Total Employee Benefits Expenses 11,853 12,451
Employee Benefits Employee benefits are all forms of consideration given by the MRA in exchange for services rendered by employees or for the termination of employment. It includes salaries, superannuation, annual leave, long service leave, professional memberships, employee wellness program, staff training and fringe benefits tax. It does not include other staffing costs, Board Director allowances, other Board costs or contractors. These costs and the on-costs of providing employment such as payroll tax and workers compensation insurance which do not constitute a benefit to employees can be found within this note under Other Expenses. Wages and salaries include termination benefits. These are payable when employment is terminated before the normal retirement date, or when an employee accepts an offer of benefits in exchange for the termination of employment.
208 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 A.2 EXPENSES (continued) Superannuation comprises employer contributions paid to the Pension Scheme, Gold State Scheme (GSS), the West State Scheme (WSS), the Government Employer Superannuation Board (GESB), or other superannuation funds in compliance with the Commonwealth Government’s Superannuation Guarantee (Administration) Act 1992. The Pension Scheme was a defined benefit scheme closed to new members since 1987. The GSS was a defined benefit lump sum scheme closed to new members since 1995. Employees commencing employment prior to 16 April 2007 who were not members of the Pensions Scheme or the GSS became non-contributory members of the WSS. Employees commencing post 16 April 2007 became members of the GESB Scheme. From 30 March 2012, existing members of WSS and GESBs have been able to choose their preferred superannuation fund provider. Contributions to these accumulation schemes extinguish the MRA’s liability for superannuation charges in respect of employees who are not members of the Pension Scheme or GSS. The Pension Scheme and the pretransfer benefit for employees who transferred to the GSS are defined benefit schemes. These benefits are wholly unfunded and the liabilities for future payments are provided at the end of the reporting period. Refer to D.2 for further detail on Defined Benefit Obligations.
Supplies and Services 2020 2019 $000 $000
Supplies and Services Administration 153 133 Communication 388 402 Consultants and Contractors 3,541 4,065 Insurances 754 765 IT Software and Licences 497 509 Office Occupancy Costs 695 1,012 Other Supplies and Services 76 119 Property and Estate Management 526 471 Total Supplies and Services Expenses 6,630 7,476
Supplies and services are recognised as an expense in the reporting period they are incurred. The carrying amounts of any materials held for distribution are expensed when materials are distributed. Office Occupancy Costs Office Occupancy Costs are variable outgoings for right-of-use assets recognised under AASB16. In the prior year office occupancy costs were leasing fees recognised on a straight line basis over the lease term. Operational expenses for other property are recorded within the Property Maintenance classification in the Statement of Comprehensive Income.
Developer Contribution Plan Developer Contribution Plan (DCP) expenses are recognised when incurred.
Depreciation and Amortisation 2020 2019 $000 $000 Depreciation and Amortisation Plant & Equipment B.1 3,278 3,313 Furniture & Office Equipment B.1 62 63 Computer Equipment B.1 715 746 Lease Improvements B.1 137 136 Infrastructure B.1 4,956 4,964 Software B.3 127 161 Right-of-Use Assets E.6 367 - Total Depreciation and Amortisation 9,642 9,383
Depreciation and Amortisation is charged to the Statement of Comprehensive Income. Refer to B.1 for further detail on Depreciation and Amortisation. Depreciation on Right-of-Use assets is shown in Note E.6. As at 30 June 2020 there were no indications of impairment to any of the asset classes held by the MRA.
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 209 A.2 EXPENSES (continued)
Other Expenses 2020 2019 $000 $000 Other Expenses Expected Credit Losses 332 159 Impairment Expense 209 58 Loss on Disposal of Asset - 393 Payroll Tax 670 700 Other Expenditure 43 11 Penalty and Interest 2 4 Board and LRC Expenses 264 262 Total Other Expenses 1,520 1,587
Expected Credit Losses Expected credit losses expense is recognised as the movement in the allowance for expected credit losses. The allowance for expected credit losses of trade receivables is measured at the lifetime expected credit losses at each reporting date. The MRA assesses the expected credit loss on each debtor individually and is adjusted for forward-looking factors specific to the debtor, the economic environment and any held security.
Loss on Disposal of Assets Losses on the disposal of non-current assets are recognised when the consideration received is lower than the carrying value of the asset. Losses are recognised in the Statement of Comprehensive Income.
Members Expenses Members expenses constitute fees and superannuation paid to Board and Land Redevelopment Committee members.
Services Provided Free of Charge or for Nominal Cost Services provided free of charge or for nominal cost that can be reliably measured are recognised within the Statement of Comprehensive Income as an expense under the appropriate category, with an equal and corresponding revenue recorded under sponsorship.
Write-Offs, Losses and Gifts of Public Property During the financial year bad debt to the value of $74,537 was approved for write off by the MRA Board, with a further $133,647 referred to the Minister. In the prior year the total value of bad debt write-off approved by the MRA Board was $49,972. No gifts of public property were provided by the MRA.
210 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 A.3 NOTES TO THE STATEMENT OF CASH FLOWS
Recognition and Measurement For the purposes of the Statement of Cash Flows, cash and cash equivalent assets comprise cash on hand and short-term deposits with original maturities of three months or less that are readily convertible to a known amount of cash and which are subject to insignificant risk of changes in value. Reconciliation of net cash inflow from operating activities to profit: 2020 2019 $000 $000 Surplus/(deficit) for the period other than income from State Government (79,514) (81,310) Non-cash items: Depreciation and amortisation 9,642 9,383 Net (gain)/loss on sale of assets (18,098) (418) Revaluation (increment)/decrement 5,065 (301) Expected credit losses expense 331 153 Services received free of charge (181) (199) Unwinding of discounts (4,749) (7,938) (Increase)/decrease in assets: Current receivables (a) 15,059 (24,730) Other current assets 726 1,435 Other non-current assets 3,432 19,513 Inventory charged to Cost of Sales 11,657 13,311 Write down inventory to Net Realisable Value 57,712 49,168 Finance costs expensed 8,195 9,139 Increase/(decrease) in liabilities: Payables (a) (2,128) (7,089) Payables - non current (4,960) 692 Income in advance 110 261 Current provisions 3,937 (140) Other non-current liabilities - 32 Non-current provisions (93) 172 Net change in GST (b) 794 532 Net cash provided by / (used in) operating activities 6,937 (18,334)
(a) Note that the Australian Taxation Office receivable/payable in respect of GST and the receivable/payable in respect of the sale/ purchase of non-current assets are not included in these items as they do not form part of the reconciling items. (b) This reverses out the GST in receivables and payables.
B. KEY ASSETS IN THIS SECTION This section addresses key assets of the MRA including infrastructure, property, plant and equipment and intangible assets. The accounting policies applied and the key estimates and judgements made in relation to key assets are noted where applicable.
B.1 INFRASTRUCTURE, PROPERTY, FURNITURE AND EQUIPMENT
Recognition and Measurement Items of property, plant and equipment and infrastructure costing $5,000 or more and with a useful life of more than two years are recognised as assets and the cost of utilising assets is expensed (depreciated) over their useful lives. Items of property, plant and equipment and infrastructure costing less than $5,000 are expensed directly to the Statement of Comprehensive Income (other than where they form part of a group of similar items which are significant in total) and are held for more than two years of useful life.
Initial Recognition and Measurement Property, plant and equipment and infrastructure are initially recognised at cost. For items of property, plant and equipment and infrastructure acquired at no cost or for nominal cost, the cost is the fair value at the date of acquisition.
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 211 B.1 INFRASTRUCTURE, PROPERTY, FURNITURE AND EQUIPMENT (continued)
Subsequent Measurement Subsequent to initial recognition as an asset, the MRA uses the revaluation model for the measurement of land, buildings, artwork and public art, and historical cost for all other property, plant and equipment. Land, buildings, artwork and public art are carried at fair value less disposal costs. All other items of property, plant and equipment are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Where market based evidence is available, the fair value of land, buildings, artwork and public art is determined on the basis of current market buying values determined by reference to recent market transactions. When buildings are revalued by reference to recent market transactions, the accumulated depreciation is eliminated against the gross carrying amount of the asset and the net amount restated to the revalued amount. In the absence of market based evidence, the fair value of land, buildings, artwork and public art is determined on the basis of existing use. This normally applies where assets are specialised or where use is restricted. Fair value for existing use assets is determined by reference to the cost of replacing the remaining future economic benefits embodied in the asset, i.e. the depreciated replacement cost. Where the fair value of buildings is determined on the depreciated replacement cost basis, the gross carrying amount and the accumulated depreciation are restated proportionately. Land and buildings are independently valued annually by an external valuer and recognised annually to ensure that the carrying amount does not differ materially from the asset’s fair value at the end of the reporting period. Artwork and public art are deemed to be of a more subjective nature and are independently valued on a triennial basis. Derecognition Upon derecognition of an item of property, plant and equipment and infrastructure, any revaluation surplus relating to that asset is retained in the asset revaluation surplus. On disposal, any revaluation surplus relating to that asset is transferred to retained earnings. Transfers from asset revaluation reserve are not made through the profit or loss. Asset Revaluation Reserve The Asset Revaluation Reserve is used to record increments and decrements on revaluation of non-current assets on a class of assets basis, specifically, Buildings, Public Artworks and Artworks. No revaluations occurred against these classes of assets in the current financial year and therefore no change in the Asset Revaluation Reserve was required. Depreciation and Amortisation Infrastructure, property, furniture and equipment are depreciated at rates based on the expected useful lives using the straight line method. Depreciation on assets under construction commences when the assets are ready for use. Depreciation is charged to the Statement of Comprehensive Income. The depreciation rates for the various classes of non-current assets are as follows and are reviewed annually: Class Useful Life Plant & Equipment 3 - 20 years Furniture & Office Equipment 3 - 10 years Computer Equipment 3 - 10 years Lease Improvements 10 - 15 years Infrastructure 15 - 50 years Impairment Property, plant and equipment, infrastructure and intangible assets are tested for any indication of impairment at the end of each reporting period. Where there is an indication of impairment, the recoverable amount is estimated. Where the recoverable amount is less than the carrying amount, the asset is considered impaired and is written down to the recoverable amount and an impairment loss is recognised. As the MRA is a not-for-profit entity, unless an asset has been identified as a surplus asset, the recoverable amount is the higher of an asset’s fair value less costs to sell and depreciated replacement cost. The risk of impairment is generally limited to circumstances where an asset’s depreciation is materially understated, where the replacement cost is falling or where there is a significant change in useful life. Each relevant class of assets is reviewed annually to verify that the accumulated depreciation/amortisation reflects the level of consumption or expiration of asset’s future economic benefits and to evaluate any impairment risk from falling replacement costs. The MRA assessed all classes of Property, Plant and Equipment and Infrastructure for indicators of impairment as at 30 June 2020, which resulted in no impairment expense being recognised. The MRA held no goodwill or intangible assets with an indefinite useful life during the reporting period. Distribution or Disposals of Assets at No or Nominal Cost The MRA may be required to transfer assets to another State Government controlled entity at Ministerial direction for no consideration. If it is at the direction of Government it is recognised as a reduction in contributed equity in accordance with AASB 1004 Contributions by Owners. As at 30 June 2020, a number of minor assets were transferred under a Treasury designation to Western Australian Land Authority.
212 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20
(195) 1,170 (679) (209) (1,031) (9,148) ($000) 242,477 (32,535) (23,505) 242,509 219,004 209,943 - - Total Assets
674 (679) 1,805 1,805 1,800 1,805 1,805 1,800 1,800 ------($000) Works inWorks Progress
242 (4,956) ($000) (14,031) (18,987) 190,219 190,219 185,505 204,492 204,250 ------Infrastructure
27 (752) 3,775 3,775 3,802 3,802 Public Public ------($000) Artworks
97 97 279 279 (182) ------($000) Artworks
(137) (407) (544) 1,505 1,642 2,049 2,049 ($000) Leasehold Leasehold ------Improvements
27 (13) (32) (715) 1,722 3,529 3,633 (1,210) 2,423 (1,807) ($000) ------Computer Computer Equipment
(62) 629 629 343 405 (286) (224) ($000) & Office ------Furniture Furniture Equipment
- (38) 200 14,128 14,128 (7,633) 17,206 (3,278) (10,911) 24,839 ($000) 25,038 Plant & - - Equipment
1,041 1,041 1,041 1,041 ------($000) Buildings
- - 209 209 (209) (209) ------Land ($000) Transfers to WALA Additions Transfers of work in progress
Depreciation 30At June 2020 Gross carrying amount
Impairment lossesImpairment During 2019/20 the MRA disposed of Computer Equipment and Artworks transferring them the to Western Australian Land Authority$313,088. (WALA), resulting in a reduction in carrying value of Land and Buildings revalued by the Western Australian Land Information Authority (Valuations and Property Analytics)impairment as at of 1 July restricted 2019 for the use year land ended the to current 30 June 2020 use resulted value. in the Accumulated impairment loss impairment Accumulated Accumulated depreciation Accumulated Gross carrying amount 1 July 2019 B.1 INFRASTRUCTURE,B.1 FURNITURE PROPERTY, AND EQUIPMENT (continued) Year ended 30 June 2020 At 30At June 2019 Accumulated impairment loss impairment Accumulated Accumulated depreciation Accumulated
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 213
(58) (457) 7,330 (9,222) (5,095) ($000) 241,926 (15,420) 219,004 226,506 - - Total Assets
(19) 3,767 1,805 1,805 3,767 3,309 ------(5,252) ($000) Works inWorks Progress
3,937 (4,964) (9,068) ($000) 190,219 190,219 191,246 200,314 ------Infrastructure
3,775 3,775 3,775 Public Public ------($000) Artworks
(1) 265 279 265 ------($000) 15 Artworks
(136) (271) 1,778 1,642 2,049 ($000) Leasehold Leasehold ------Improvements
6 (30) (746) (392) 5,046 3,585 (1,461) 2,423 ($000) - - - - Computer Computer Equipment
(63) 643 468 405 (175) ($000) & Office ------Furniture Furniture Equipment
63 187 (39) (64) (3,313) 24,817 17,206 (4,445) ($000) 20,372 Plant & Equipment
1,041 1,041 1,041 ------($000) Buildings
209 209 209 ------Land ($000) Additions
Depreciation Impairment lossesImpairment During 2018/19 the MRA reassessed the useful life of its Computer Equipment resulting in a reduction in carrying value of $28,828.recognised Consequently, in relation a reduced these to assets depreciation over their expense remaining will useful be life. Transfers of work in progress At 30At June 2018 Gross carrying amount 1 July 2018 loss impairment Accumulated B.1 INFRASTRUCTURE,B.1 FURNITURE PROPERTY, AND EQUIPMENT (continued) Year ended 30 June 2020 At 30At June 2019 Other disposals Other Accumulated depreciation Accumulated
214 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 B.2 INVESTMENT PROPERTIES
Recognition and Measurement Investment property, principally comprising freehold land and buildings, is not occupied by the MRA and derives long term rental yields. Investment property is carried at fair value, as mandated by TI 954, representing open-market value determined annually by external valuers. Changes in fair value are recorded in the Statement of Comprehensive Income. Investment Property land and buildings were revalued by an independent external expert as at 30 June 2020.
Estimates and Judgements Assumptions in estimating fair value are made when assessing the highest and best use of assets. Professional judgement by the valuer is required where the evidence does not provide a clear distinction between market type assets and existing use assets. The impact of the COVID-19 pandemic on property valuations is not yet quantifiable. As such, there remains significant uncertainty surrounding the valuation of investment property.
Lease Incentives From time to time the MRA may offer inducements to tenants to enter into non-cancellable operating leases. These incentives may include contributions to fit-outs and relocation costs, or rental free periods. Where an incentive has been granted in respect to a contribution to a leasehold fit-out, the value of the contribution is absorbed into the value of the asset as an Investment Property held at fair value.
2020 2019 Investment Property at Fair Value $000 $000 Carrying amount at start of period 59,970 69,975 Additions 176 1,314 Disposals (28,831) (10,050) Transfers (to)/from Inventories - (1,570) Net gain/(loss) from Fair Value adjustment (5,065) 301 Total Investment Property 26,250 59,970
Amounts recognised in Statement of Comprehensive Income for Investment Properties Net Revaluation increment/(decrement) (5,065) 301 Rental Income 1,665 2,481 Direct operating expenses from property that generated rental income 436 354
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 215 B.3 INTANGIBLE ASSETS
Recognition and Measurement Acquired and internally generated intangible assets costing $5,000 with a useful life of more than two years or more are capitalised. The cost of utilising the assets is expensed (amortised) over their useful life. Costs incurred below these thresholds are expensed directly to the Statement of Comprehensive Income. Software that is an integral part of the related hardware is treated as property, plant and equipment. Software that is not an integral part of the related hardware is treated as an intangible asset. Software costing less than $5,000 is expensed in the year of acquisition.
Initial Recognition Intangible assets are initially recognised at cost. For assets acquired at no cost, or for nominal cost, the cost is their fair value at the date of acquisition.
Subsequent Measurement The cost model is applied for subsequent measurement requiring the asset to be carried at cost less any accumulated amortisation and accumulated impairment losses.
Amortisation Amortisation for intangible assets with finite useful lives is calculated for the period of the expected benefit (estimated useful life) on the straight line basis using rates which are reviewed annually. All intangible assets controlled by the MRA have a finite useful life and zero residual value. The expected useful lives for each class of intangible asset are: Class Useful Life Software (a) 3 - 5 years
(a) Software that is not integral to the operation of any related hardware.
Impairment Intangible assets with an indefinite useful life and intangible assets not yet available for use are tested for impairment at the end of each reporting period irrespective of whether there is any indication of impairment.
Software Total $000 $000 Year ended 30 June 2020 Carrying amount 2,012 2,012 Accumulated amortisation (1,881) (1,881) At 30 June 2019 131 131 Additions - - Amortisation expense (127) (127) At 30 June 2020 4 4 Carrying amount 2,012 2,012 Accumulated amortisation (2,008) (2,008) At 30 June 2020 4 4
Year ended 30 June 2019 Carrying amount 5,427 5,427 Accumulated amortisation (5,135) (5,135) At 30 June 2018 292 292 Additions - - Amortisation expense (161) (161) At 30 June 2019 131 131
216 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 B.4 FAIR VALUE MEASUREMENTS
Fair Value Measurements Level 2 fair values are derived using the market approach. The market approach provides an indication of value by comparing the subject asset with identical or similar assets for which price information is available. Under this approach the first step is to consider the prices for transactions of identical or similar assets that have occurred recently in the market. If few recent transactions have occurred, it may also be appropriate to consider the prices of identical or similar assets that are listed or offered for sale provided the relevance of this information is clearly established and critically analysed. For market valued assets free of encumbrances the value is measured by market transactions involving comparison and analysis of identical or comparable assets. For assets with encumbrances, the income approach was used which converts future cash flow amounts to a single current discounted amount to arrive at a fair value. There were no changes in valuation techniques during the period. Artworks and Public Art were last valued as at 30 June 2018. Valuations are undertaken on a triennial basis for Artworks & Public Art. The next valuation will be as at 30 June 2021.
2020 2019 $000 $000 Level 2 Valuation Techniques Land B.1 - 209 Artworks & Public Art B.1 3,899 4,054 Investment Properties B.2 26,250 59,970 Total Fair Valued Assets 30,149 64,233
Assets distributed to Owners for transfer to Western Australian Land Authority during the year were transferred at fair value. See note B.1 for details of Computer Equipment and Artwork transferred, note B.4 for Investment Property transferred and note E.2 Inventory.
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 217 C. CAPITAL MANAGEMENT
IN THIS SECTION This section addresses cash, debt and capital position including, where applicable, the accounting policies applied and the key estimates and judgements made.
Recognition and Measurement Initial recognition and measurement of financial instruments is at fair value which normally equates to the transaction cost or face value. Subsequent measurement is at amortised cost using the effective interest method. The fair value of trade receivables and payables is the transaction cost or the face value.
C.1 FINANCIAL INSTRUMENTS The carrying amounts of each of the following categories of financial assets and financial liabilities at the end of the reporting period are:
2020 2019 $000 $000 Financial Assets Cash and Cash Equivalents 13,847 8,776 Restricted Cash 38,047 35,761 Financial Assets at Amortised Cost (a) 68,240 68,951 Total Financial Assets 120,134 113,488
Financial Liabilities Financial Liabilities at Amortised Cost (a) 217,030 254,885 Total Financial Liabilities 217,030 254,885
(a) The amount of Financial Assets/Liabilities at amortised cost excludes GST recoverable from the ATO (statutory receivable).
KEY FINANCIAL AND CAPITAL RISKS IN THIS SECTION
Interest Rate Risk The MRA’s exposure to market risk for changes in interest rates relates primarily to its cash and cash equivalent holdings and its long-term debt obligations. The MRA’s borrowings are all obtained through the Western Australian Treasury Corporation (WATC) and are either at fixed rates with varying maturities or at variable rates. The risk is managed by WATC through portfolio diversification and variation in maturity dates. Other than as detailed in the interest rate sensitivity analysis in the table below. The MRA has limited exposure to interest rate risk because it has no borrowings other than WATC borrowings The following table represents a summary of the interest rate sensitivity of the MRA’s financial assets and liabilities at the end of the reporting period on the surplus for the period and equity for a 100 basis point change in interest rates. It is assumed that the change in interest rates is held constant throughout the reporting period.
218 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 C.1 FINANCIAL INSTRUMENTS (continued) Interest Rate Exposure Carrying Amount -100 basis points +100 basis points Surplus Equity Surplus Equity $000 $000 $000 $000 $000 30 June 2020 Financial assets: Restricted Cash (interest earning) 36,933 (369) (369) 369 369 Receivables (a) 68,240 (682) (682) 682 682 Financial liabilities: Payables (a) 4,610 46 46 (46) (46) Borrowings (variable rate) 115,511 1,155 1,155 (1,155) (1,155) Other Liabilities 728 7 7 (7) (7) Total Increase / (Decrease) 157 157 (157) (157)
Carrying Amount -100 basis points +100 basis points Surplus Equity Surplus Equity $000 $000 $000 $000 $000 30 June 2019 Financial assets: Restricted Cash (interest earning) 34,616 (346) (346) 346 346 Receivables (a) 68,951 (690) (690) 690 690 Financial liabilities: Payables (a) 6,200 62 62 (62) (62) Borrowings (variable rate) 107,618 1,076 1.076 (1,076) (1,076) Other Liabilities 728 7 7 (7) (7) Total Increase / (Decrease) 109 109 (109) (109)
(a) The Financial Assets and Liabilities measured at amortised cost exclude GST payable to the ATO (statutory payable).
Credit Risk Credit risk arises when there is the possibility of the MRA’s receivables defaulting on their contractual obligations resulting in financial loss to the MRA. The maximum exposure to credit risk at end of the reporting period in relation to each class of recognised financial assets is the gross carrying amount of those assets inclusive of any provisions for impairment, as shown in the table below and Note E.1 Receivables. The MRA trades only with recognised, creditworthy third parties. The MRA has policies in place to ensure that sales of products and services are made to customers with an appropriate credit history. In addition, receivable balances are monitored on an ongoing basis with the result that the MRA’s exposure to bad debts is minimal. Debt will be written-off against the allowance account when it is improbable or uneconomical to recover the debt. At the end of the reporting period, there were no significant concentrations of credit risk.
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 219 C.1 FINANCIAL INSTRUMENTS (continued)
Credit Risk Exposure Days past due Total Current < 30 days 31 - 60 days 61-90 days > 91 days $000 $000 $000 $000 $000 $000 Trade Receivables 30 June 2020 Expected credit loss rate 0.00% 0.00% 0.00% 0.00% 1.82% Estimated total gross carrying amount at default 3,486 1,399 - - - 2,087 Expected credit losses (38) - - - - (38)
1 July 2019 Expected credit loss rate 0.00% 0.00% 0.00% 0.00% 2.41% Estimated total gross carrying amount at default 2,194 606 9 - - 1,579 Expected credit losses (38) - - - - (38)
Other Debtors 30 June 2020 Expected credit loss rate 0.00% 0.00% 0.00% 0.00% 98.16% Estimated total gross carrying amount at default 69,602 45,428 23,710 - - 464 Expected credit losses (455) - - - - (455)
1 July 2019 Expected credit loss rate 0.00% 0.00% 62.50% 57.14% 91.67% Estimated total gross carrying amount at default 66,757 42,051 24,609 40 21 36 Expected credit losses (124) - (54) (25) (12) (33)
Refer to A.2 for further detail on Expected Credit Loss.
220 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20
297 297 $000 and
------2,041 5 years 2,041 2,041 78,032 38,208 78,032 38,208 More than interest
2 - 5 $000 years 23,648 80,688 80,688 ------23,648 125,399 5,525 125,399 5,525 includes
section
1 - 2 $000 4,978 4,978 4,978 years 46,050 ------46,050 39,497 34,032 39,497 34,032 analysis
Maturity Date
3 - 12 $000 11,083 11,083 27,522 maturity 27,522
------24,393 4,022 months 4,022 24,393 The
$000 Up to 28,234 28,234 ------liabilities. ------23,834 28,234 28,234 4,610 1,007
19,224 7,207 2,960 6,200 2,960 3 months 3
financial
Total $000 and
728 728 211,692 35,761 4,610 247,957 8,776 13,847 120,134 113,488 68,951 217,030 6,200 38,047 68,240 254,885 Nominal Account assets
Non- $000 68,951 1,114 1,145 68,240 - - - - 728 728 4,610 8,776 13,847 5,338 6,928 6,200 83,201 Bearing 78,872 78,872 Interest financial item.
of
each
of
Rate $000 analysis
115,511 115,511 115,511 107,618 ------107,618 34,616 34,616 36,933 36,933 Interest Variable Variable amounts Interest Rate Exposure Rate Interest
maturity
Rate $000 Fixed 96,181 96,181 96,181 carrying ------
140,339 140,339 Interest the
contractual
only
the
$000 and
728 728 211,692 35,761 4,610 247,957 8,776 13,847 120,134 113,488 68,951 217,030 6,200 38,047 68,240 Amount 254,885 analyses Carrying
exposure
section
1.78% 2.83% 0.52% 2.22% rate
Weighted Weighted av. effective effective av. interest rate interest
exposure
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table
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following
Receivables (i) Receivables Financial Liabilities: Financial Restricted Cash and Cash Equivalents Cash and Cash Equivalents Liabilities: Financial Financial Assets: Financial Receivables (i) Receivables Restricted Cash and Cash Equivalents 30 June 2019
Cash and Cash Equivalents The amount of receivables excludes the GST recoverable from the ATO (statutory receivable). (statutory ATO the from recoverable GST the excludes receivables of amount The
Other Liabilities Borrowings (b) Financial Assets: Financial Borrowings (b) Other Liabilities Payables
Payables C.1 FINANCIALC.1 INSTRUMENTS (continued) Liquidity Risk and Interest Rate Exposure The principal 30 June 2020
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 221 C.2 CASH AND CASH EQUIVALENTS Cash and cash equivalents consists of the MRA’s operating account, which is a non-interest bearing account. Restricted cash and cash equivalents are where the use of such assets is restricted, wholly or partially by regulations or other externally imposed requirements. Restricted cash and cash equivalents predominantly represent funds held for Development Contribution Plans (DCP) held in an interest bearing public bank account.
2020 2019 $000 $000 Current Cash and Cash Equivalents 13,847 8,776 Restricted Cash and Cash Equivalents - Public Art Fund 586 617 - Parking Cash-in-Lieu Account 528 528 Total Current Cash and Equivalents 14,961 9,921
Non-Current Restricted Cash and Cash Equivalents - Wungong Urban Water DCP Account 36,673 34,357 - Champion Drive DCP Account 260 259 - Scarborough DCP Account - - Total Non-Current Cash and Equivalents 36,933 34,616
Fair value Management consider the carrying amounts of cash and cash equivalents represent their fair value.
2020 2019 Current $000 $000
Public Art Fund Holds the balance of the Public Art Fund to be used by the MRA for the provision of public art in accordance with the Development Policies for the MRA Redevelopment Areas.
Balance at the start of the period 617 640 Receipts 39 21 Payments (70) (44) Balance at the end of the period 586 617
Parking Cash-in-Lieu Account Holds the balance of payments received from developers in lieu of car parking in accordance with the MRA Redevelopment Schemes.
Balance at the start of the period 528 528 Receipts - - Payments - - Balance at the end of the period 528 528
Significant Terms and Conditions Interest is earned on restricted cash relevant to the Development contribution Plans. The interest was at prevailing rates. The weighted average interest rate at 30 June 2020 was 0.52% (2019: 2.2%).
222 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 C.2 CASH AND CASH EQUIVALENTS (continued)
2020 2019 Non-Current $000 $000
Wungong Urban Water DCP Account Holds the net of developer contribution receipts collected from landowners within the Wungong Urban Water Development Contribution Area, as set out in Appendix 1 of the Armadale Redevelopment Scheme 2, less development costs. Balance at the start of the period 34,357 29,800 Receipts 3,292 5,205 Payments (976) (648) Balance at the end of the period 36,673 34,357
2020 2019 Non-Current $000 $000
Champion Drive DCP Account
Holds the net of developer contribution receipts collected from landowners within the Champion Drive Precinct Development Contribution Area, as set out in Appendix 1 of the Armadale Redevelopment Scheme 2, less development costs.
Balance at the start of the period 259 270 Receipts 3 3 Payments (2) (14) Balance at the end of the period 260 259
Scarborough DCP Account
Holds the net of developer contribution receipts collected from landowners within the Development Contribution Area, as set out in chapter 7 of the Scarborough Redevelopment Scheme, less development costs.
Balance at the start of the period - 53 Receipts 19 20 Payments (19) (73) Balance at the end of the period - -
C.3 INTEREST BEARING LIABILITIES
Recognition and Measurement All borrowings are initially recognised at the fair value of the consideration received less directly attributable transaction costs. After initial recognition, interest-bearing borrowings are subsequently measured at amortised cost. Finance costs reflected in the Statement of Comprehensive Income comprise interest payable on borrowings. Borrowing costs are recognised as expenses in the period in which they are incurred except where they are directly attributable to the acquisition, construction or production of a qualifying asset in which case they are capitalised as part of the cost of the asset, in accordance with AASB 123 Borrowing Costs. 2020 2019 $000 $000 Current WA Treasury Corporation 211,692 58,300 Total Current Borrowings 211,692 58,300
Non-Current WA Treasury Corporation - 189,657 Total Non-Current Borrowings - 189,657
The State approved an equity injection to repay up to $211.5 million in debt held by the MRA. This was received in August 2020 and debit retired.
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 223 C.4 FINANCE COSTS
Recognition and Measurement Finance costs consist of those costs incurred in connection with the borrowing of funds. They include interest on both short and long-term loans, interest components of lease liability repayments and the increase in financial liability due to the unwinding of discount to reflect the passage of time. Finance costs are recognised as an expense in the reporting period in which they are incurred, except to the extent that they are capitalised when incurred for the purposes of the development of sale lots. Refer Note E2 Inventories. Finance costs on Right-of-Use assets are shown in Note E.6. 2020 2019 $000 $000 Finance Costs Interest - WATC Borrowings 7,429 5,536 Interest - Western Australian Land Authority Loan - 79 Lease Interest Expense 266 - Unwind of Contractuals 21 40 Total Finance Costs 7,716 5,655
C.5 EQUITY
Repayments to the Consolidated Fund In accordance with the Metropolitan Redevelopment Authority Act 2011, the Treasurer may direct the payment of any surplus, in part or whole, at the end of the financial year, to the Consolidated Fund. The amount of the surplus payment is determined by the Treasurer in conjunction with the MRA.
Key Estimates and Judgements Restatement of prior period non-current inventory values within the Central Perth redevelopment area occurred during the 2020 financial year impacting prior period equity balances, refer note E.2. Distributions to Owners are recognised at fair value. 2020 2019 $000 $000 Contributed Equity Balance at start of period 553,655 386,787 Contributions by State Government 56,716 166,868 Distributions to Owners Repayments to the Consolidated Fund (21,405) - Assets Transferred (113,147) - Balance at end of period 475,819 553,655
Asset Revaluation Reserve Balance at start of period 70 70 Net revaluation (decrements) /increments - - Balance at end of period 70 70
Accumulated Surplus / (Deficit) Prior Period impact of inventory restatement E.2 - (17,964) Balance at start of period (296,660) (238,669) Restated balance at start of period (296,660) (256,633)
Initial application of AASB 15 (394) - Initial application of AASB 16 (254) - Surplus / (Deficit) for the period (58,041) (39,757) Net revaluation of Defined Benefit Scheme (93) (270) Balance at end of period (355,442) (296,660)
Total Equity at End of Period 120,447 257,065
224 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 D. EMPLOYEE BENEFITS IN THIS SECTION This section addresses liabilities due to employees including, where applicable, the accounting policies applied and the key estimates and judgements made.
D.1 EMPLOYEE RELATED PROVISIONS
Recognition and Measurement A provision is recognised in the Statement of Financial Position when the MRA has a present legal or constructive obligation as a result of a past event, and it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.
Personal Leave Liabilities for personal leave are recognised when it is probable that personal leave paid in the future will be greater than the entitlement that will accrue in the future. Past history indicates that, on average, personal leave taken each reporting period is less than the entitlement accrued. This is expected to continue in future periods. Accordingly, it is unlikely that existing accumulated entitlements will be used by employees and no liability for unused personal leave entitlements is recognised. As personal leave is nonvesting, an expense is recognised in the Statement of Comprehensive Income for this leave as it is taken.
Annual Leave Annual leave is not expected to be settled wholly within 12 months after the end of the reporting period, and is therefore considered to be ‘other long term employee benefits’. The annual leave liability is recognised and measured at the present value of amounts expected to be paid when the liabilities are settled, using the remuneration rate expected to apply at the time of settlement. When assessing expected future payments, consideration is given to expected future wage and salary levels, including non-salary components such as employer superannuation contributions, as well as the experience of employee departures and periods of service. The expected future payments are discounted using market yields at the end of the reporting period, on national government bonds with terms to maturity that match as closely as possible, the estimated future cash outflows. The provision for annual leave is classified as a current liability, as the MRA does not have an unconditional right to defer settlement of the liability for at least 12 months after the end of the reporting period.
Long Service Leave Long service leave is not expected to be settled wholly within 12 months after the end of the reporting period and is therefore recognised and measured at the present value of amounts expected to be paid when the liabilities are settled using the remuneration rate expected to apply at the time of settlement. When assessing expected future payments consideration is given to expected future wage and salary levels including non-salary components such as employer superannuation contributions, as well as the experience of employee departures and periods of service. The expected future payments are discounted using market yields at the end of the reporting period on national government bonds with terms to maturity that match, as closely as possible, the estimated future cash outflows. Unconditional long service leave provisions are classified as current liabilities as the MRA does not have an unconditional right to defer settlement of the liability for at least 12 months after the end of the reporting period. Pre-conditional and conditional long service leave provisions are classified as non-current liabilities because the MRA has an unconditional right to defer the settlement of the liability until the employee has completed the requisite years of service or satisfies preservation age conditions.
Leave Provisions The value of leave provisions are assessed annually by an independent actuary.
Key Estimates and Judgements This assessment requires a determination of various assumptions as to future events and circumstances, in particular, wage increase rates, inflation rates and employee retention rates.
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 225 D.1 EMPLOYEE RELATED PROVISIONS (continued) 2020 2019 $000 $000 Current Annual Leave 1,109 1,049 Long Service Leave 975 1,071 Superannuation 193 194 Employee on-costs 143 138 Total Current Employee Benefit Provisions 2,420 2,452
Non-Current Long Service Leave 426 575 Superannuation 47 60 Defined Benefit Superannuation Plans D.2 2,141 2,090 Employee on-costs 34 38 Total Non-Current Employee Benefit Provisions 2,648 2,762
Total Employee Related Provisions 5,068 5,214
Assessments indicate that actual settlement of the leave liabilities is expected to occur as follows: 2020 2019 $000 $000 Annual Leave Within 12 months of the end of the reporting period 789 793 More than 12 months after the end of the reporting period 496 422 1,285 1,215
Long Service Leave Within 12 months of the end of the reporting period 454 493 More than 12 months after the end of the reporting period 1,189 1,416 1,643 1,909
The reconciliation for the movement of the employee on-costs provision has been provided below.
Current Carrying amount at start of period 138 145 Additional provisions recognised - - Amounts used 5 (7) Carrying amount at end of period 143 138
Non-Current Carrying amount at start of period 38 44 Additional provisions recognised - - Amounts used (4) (6) Carrying amount at end of period 34 38
226 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 D.2 DEFINED BENEFIT PLANS
The Gold State Superannuation Scheme (GSS), a defined benefit lump sum scheme, and the Superannuation and Family Benefits Act 1938 (Pension Scheme), a defined benefit pension scheme, are now closed to new members. The MRA is liable for superannuation benefits for past years’ service of members of the Superannuation and Family Benefits Act 1938 who elected to transfer to the GSS Scheme. The MRA also accrues for superannuation benefits to the pension scheme for those members who elected not to transfer from that scheme. The MRA’s total superannuation liability has been actuarially assessed as at 30 June 2020. Employees who were not members of either the Pension or the GSS Schemes became non-contributory members of the West State Superannuation Scheme (WSS), an accumulation fund, until 15 April 2007. From 16 April 2007, employees who were not members of the Pension, GSS or WSS Schemes became non-contributory members of the GESB Superannuation Scheme (GESB Super), a taxed accumulation fund. On 30 March 2012, employees were granted with the opportunity to have their contributions paid to a complying superannuation fund of their choice. Those members not electing to nominate their own fund remain either in the WSS Schemes or the GESB Superannuation Scheme. The MRA makes concurrent contributions to the Government Employee Superannuation Board (GESB) or other fund providers on behalf of employees in compliance with the Commonwealth Government’s Superannuation Guarantee (Administration) Act 1992. These contributions extinguish the MRA’s liability for superannuation charges.
Defined Benefit Plan The MRA’s net obligation in respect of defined benefit plans is calculated separately by estimating the amount of future benefit that employees have earned in return for their service in the current and prior periods; that benefit is discounted to determine its present value, and the fair value of any plan assets is deducted. These benefits are unfunded. The discount rate used is the market yield rate at the Statement of Financial Position date on national Government bonds that have maturity dates approximating to the terms of the entity’s obligations. The calculation is performed by a qualified actuary using the actuarial cost method. A net defined benefit asset or liability is shown on the Statement of Financial Position equal to: - The present value of the accrued defined benefit obligation; less - The fair value of the Scheme assets; plus - Any adjustment for the limitation on the net asset. The defined benefit cost to be included in the Statement of Comprehensive Income is made up of the following elements: - Current service cost paid to the Government of Western Australia for the pension scheme expensed under the Superannuation classification. Remeasurements of the net defined benefit liability/(asset) are recognised in Other Comprehensive Income.
Key Estimates and Judgements This assessment requires a determination of various actuarial assumptions as to future events and circumstances, in particular, the pensioner mortality rate, discount rate and pension and salary increase rates.
Nature of the Benefit provided by the Schemes Pension Scheme The employer-financed benefit is a pension benefit payable on retirement, death or invalidity, or a lump sum on resignation.
Description of Regulatory Framework The Pension Scheme operate under the State Superannuation Act 2000 (Western Australia) and the State Superannuation Regulations 2001 (Western Australia). Although the Scheme is not formally subject to the Superannuation Industry (Supervision) (SIS) legislation, the WA Government has undertaken (in a Heads of Government Agreement) to operate the Scheme in accordance with the spirit of the SIS legislation. As exempt public sector superannuation Schemes (as defined in the SIS legislation), the Schemes are not subject to any minimum funding requirements. As a constitutionally protected superannuation fund (as defined in the Income Tax Assessment legislation), the Schemes are not required to pay tax.
Description of Other Entities’ Responsibilities for the Governance of the Scheme The Government Employees Superannuation Board (GESB) is the Pension Trustee and is responsible for the governance of the Scheme. As Trustee, GESB has a legal obligation to act solely in the best interests of Scheme beneficiaries. GESB has the following roles: - Administration of the Scheme and payment to the beneficiaries when required in accordance with the Scheme rules; - Compliance with the Heads of Government Agreement (referred to above).
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 227 D.2 DEFINED BENEFIT PLANS (continued)
Description of Risks There are a number of risks to which the Pension Scheme exposes the MRA. The most significant are: - Legislative risk - The risk that legislative changes could be made which increase the cost of providing the defined benefits. - Pensioner mortality risk - The risk that pensioner mortality will be lighter than expected, resulting in pensions being paid for a longer period. - Inflation risk - The risk that inflation is higher than anticipated, increasing pension payments, and the associated employer contributions.
Description of Significant Events There were no amendments, curtailments or settlements during the year to the Schemes.
Reconciliation of the Net Defined Benefit Liability 2020 2019 $000 $000 Carrying amount at start of period 2,090 1,842 Within Statement of Comprehensive Income Interest costs (unwinding of discount) 29 48 Within Other Comprehensive Income Net actuarial losses / (gains) recognised 93 270 Benefits paid (71) (70) Carrying amount at the end of the period 2,141 2,090
2020 2019 $000 $000 Reconciliation of the Fair Value of Scheme Assets Carrying amount at start of period - - Employer contributions 71 70 Benefits paid (71) (70) Carrying amount at the end of the period - -
Fair value of Scheme Assets There are no assets in the Pension Scheme to support the State Share of Benefit. Hence there is/are: - No fair value of Scheme assets - No asset allocation of Scheme assets - No financial instruments issued by the employer - No assets used by the employer - No asset-liability matching strategies.
Funding Arrangements The employer contributes, as required, to meet the benefits paid. 2021 Expected Contributions $000 Pension Scheme 72
Significant Actuarial Assumptions at the Reporting Date Discount rate 0.85% Future salary increases of 1.5% for the first two years and then 4.2% pa thereafter.
Pension increase rate 2.5% The MRA has no liability or expense under AASB 119 arising from Gold State Super.
228 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 E. OTHER ASSETS AND LIABILITIES IN THIS SECTION This section addresses trade receivables, trade and other payables, and other assets and liabilities including, where applicable, the accounting policies applied and the key estimates and judgements made.
E.1 RECEIVABLES 2020 2019 Current $000 $000 Trade Receivables 3,486 2,194 Allowance for impairment of Trade Receivables (38) (38) GST Receivable 269 496 3,717 2,652
Other Receivables 36,703 26,708 Allowance for impairment of Other Receivables (455) (124) Present Value discount of Other Receivables (1,368) (531) Total Current Receivables 38,597 28,705
Non-Current Other Receivables 28,050 51,499 Present Value discount of Other Non Current Receivables (6,494) (10,919) Total Non-Current Receivables 21,556 40,580
Total Receivables 60,153 69,285
The overall decrease in the value of current and non-current receivables represents payments received for Other Receivables relating to deferred sales installments within the Central Perth Redevelopment Area.
Recognition and Measurement Trade Receivables Trade Receivables and Other Receivables are initially recognised at fair value. Debtors are carried at the original amounts recognised due less an allowance for any uncollectible amounts. Trade debtors are generally settled within 30 days. The value of the provision for impairment loss is assessed using an analysis of historical data to determine the level of risk and subsequent recovery of debts based on the age of amounts outstanding. Bad debts are written off when formally recognised as being irrecoverable. The MRA’s exposure to credit risks related to Trade Receivables and Other Receivables are disclosed in Note C.1.
Other Receivables Other Receivables predominantly relate to the discounted present value of land sales where timing of staged payments is uncertain.
Key Estimates and Judgements Various judgements are required in determining the MRA’s impairment of trade and other receivables including an assessment of the risk of default and credit loss based on historical evidence, current economic environment and security held.
Fair Value Management consider the carrying amounts of trade and other receivables represent their fair value. 2020 2019 $000 $000 Movement in the Allowance for Impairment of Receivables Balance at start of period (162) (57) Remeasurement under AASB 9 - (4) Restated balance at start of period (162) (61) Expected credit losses expense (405) (151) Amounts written off during the period 74 50 Balance at end of period (493) (162)
The maximum exposure to credit risk at the end of the reporting period of Receivables is the carrying amount of the asset inclusive of any impairment as shown in Note C.1 Financial Instruments.
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 229 E.2 INVENTORIES 2020 2019 $000 $000 Developed Land Current 6,140 74,841 Non-Current (a) 1,555 57,710 Total Inventories 7,695 132,551
(a) Non-current inventory balance for 2019 reflects the prior period restatement
Reconciliation of Inventory Movements Current Balance at start of period 74,841 18,151 Cost of Sales (11,657) (13,311) Net Transfers to/from Non-Current Inventory 45,528 70,815 Transfers from Investment Property - 1,570 Additional Works 1,799 - Write Down Inventory to Net Realisable Value (38,349) (2,384) Fair Value Increment for Distribution to Owner 18,098 - Transfer of Inventory through Equity (84,120) - Total Current Inventories 6,140 74,841
Non-Current Balance at start of period 57,710 168,293 Prior period inventory restatement (b) - (17,964) Balance at start of period 57,710 150,329
Net Transfers to/from Current Inventory (45,528) (70,815) Transferred to Property, Plant and Equipment - (187) Additional Works 8,736 25,167 Write Down Inventory to Net Realisable Value (19,363) (46,784) Total Non-Current Inventories 1,555 57,710
(b) Non-current inventory balance for 2019 reflects the prior period restatement
Recognition and Measurement All land and buildings and capital works held for development and subsequent sale are regarded as inventory and are classified as such in the Statement of Financial Position. Development expenditure is capitalised with reference to the stage of completion of the project. The MRA recognises as inventory all of the costs which have been incurred in bringing developed land to a condition ready for sale. Such costs are typically accumulated on a project by project basis. The MRA allocates development costs to individual lots within the project on a rational and consistent basis given the specific circumstances of the project. Land held for development and subsequent sale is classified as a current asset when development is completed and sales are expected to result in realisation of settled sales within 12 months based on management’s sales forecasts. Inventories are valued at the lower of cost and net realisable value (NRV). NRV is the estimated selling price in the ordinary course of business, less estimated costs of completion and, if appropriate, the estimated costs of making the sale. Cost includes the costs of acquisition development, holding and borrowing costs incurred during development. When development is completed, holding and borrowing charges are expensed as incurred. Holding and borrowing costs are also expensed if active development is interrupted for extended periods. In accordance with TI 955 inventory transferred to the Western Australian Land Authority by way of Distribution to Owners is recognised at fair value in the MRA prior to transfer. Fair value is determined to be the realisable value as assessed by an independent external value. The revaluation to fair value is recognised in the Statement of Comprehensive Income.
Key Estimates and Judgements The key assumptions involve management judgement and take into account reliable information on hand at the time specifically in respect of costs to complete, anticipated sales values and sales forecasts. Where possible external verification is sought for those variables with a material impact on the outcomes. Restatement of prior period inventory values within the Central Perth redevelopment area occurred during the 2020 financial year, impacting prior year non-current inventory balances.
230 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 Recovery of Inventory NRV of inventory is calculated using the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. The impact of the COVID-19 pandemic on land valuations is not yet quantifiable. Independent external valuations obtained during the year were provided on the basis of material valuation uncertainty reflecting the unknown future impact of COVID-19. As such, there remains significant uncertainty surrounding the net realisable value of inventory.
E.3 OTHER CURRENT ASSETS 2020 2019 Current $000 $000 Prepayments 100 826 Total Current Other Assets 100 826
Recognition and Measurement Other non-financial assets include prepayments which represent payments in advance of receipt of goods or services or that part of expenditure made in one accounting period covering a term extending beyond that period.
E.4 TRADE AND OTHER PAYABLES 2020 2019 Current $000 $000 Trade Payables 17 1,837 Accrued Expenses 3,426 3,354 Accrued Salaries 117 43 Other Payables 1,107 1,561 Total Current Payables 4,667 6,795 Total Non-Current Payables - 4,960
E.5 OTHER LIABILITIES 2020 2019 Other liabilities is represented as follows: $000 $000 Current Income in Advance Rental Income 32 91 Other Income in Advance 2 123 Rechargeable Works 822 532 Total Current Income in Advance 856 746
Non-Current Non Refundable Development Bond 728 728 Total Non-Current Other Liabilities 728 728
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 231 E.6 RIGHT OF USE ASSETS AND LEASE LIABILITIES
The Authority adopted AASB 16 Leases as at 1 July 2019. Refer to F.9 Initial application of Australian Accounting Standards.
Recognition and Measurement The MRA leases office accommodation, car parking bays and vehicles. Subsequent to the administrative merger with the Western Australian Land Authority and relocation to 40 The Esplanade, the MRA sub-let its leased office space at the GPO Building, Perth to the Minister for Works. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not impose any covenants, but leased assets may not be used as security for borrowing purposes. The Authority recognises these leases as a right-of-use asset and a corresponding liability at the date at which the leased asset is available for use. Lease payments and interest charges are recognised against the lease liability. The interest charge is recorded in the Statement of Comprehensive Income over the lease period to produce a constant periodic rate of interest on the remaining balance of the liability for each period. The right-of-use asset is depreciated over the shorter of the asset’s useful life and the lease term on a straight-line basis.
Office Year ended 30 June 2020 Accommodation Vehicles Total $000 $000 $000 At 30 June 2019 Recognition of right-of-use assets on initial application of AASB16 4,883 69 4,952 Restated opening carrying amount 4,883 69 4,952
1 July 2019 Gross carrying amount 4,883 69 4,952 Accumulated depreciation (1,058) - (1,058) Carrying amount at start of period 3,825 69 3,894
Deprecation (326) (41) (367) Net Carrying Amount as at 30 June 2020 3,499 28 3,527
There were no additions to the right of use assets during the 2020 financial year.
The Statement of Comprehensive Income shows the following amounts relating to leases:
2020 2019 $000 $000 Right-of-Use Assets Office Accommodation 326 - Vehicles 41 - Total Right-of-Use Asset Depreciation 367 -
Office Accommodation 265 - Vehicles 1 - Total Right-of-Use Asset Interest 266 -
Lease Liabilities Current 449 - Non-Current 8,830 - Total Lease Liabilities 9,279 -
232 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 F. OTHER ITEMS IN THIS SECTION This section addresses information on items which require disclosure to comply with Australian Accounting Standards and the Metropolitan Redevelopment Act 2011.
F.1 RELATED PARTIES
Related Party Transactions The MRA is a wholly owned and controlled entity of the State of Western Australia. In conducting its activities, the MRA is required to pay various taxes and levies based on the standard terms and conditions that apply to all tax and levy payers to the State and entities related to State. Related parties of the MRA include: - all Ministers and their close family members, and their controlled or jointly controlled entities; - all senior officers and their close family members, and their controlled or jointly controlled entities; and - officers with significant influence over financial decisions of significant value or frequency that impact financial reporting and their close family members, and their controlled or jointly controlled entities. Related parties of the MRA include: - other departments and public sector entities, including related bodies included in the whole of government consolidated financial statements; and - associates and joint ventures, that are included in the whole of government consolidated financial statements; and - the Government Employees Superannuation Board (GESB). Significant transactions with government related entities include: - recurrent appropriations (refer to Grants and Contributions from Other Government Agencies within Income from State Government at Note A.1); - capital and recurrent appropriations (refer to Contributions by State Government within Note C.6 Equity and Note A.2 Income from State Government); - funds received from Public Transport Authority of $248, 865 in respect of rechargeable works (reported in the Statement of Comprehensive Income under Rechargeable Works); - salary recoups from other general government agencies of $719,499 (included within Wages and Salaries at Note A.2); - repayment of monies to the Consolidated Fund of $21,405,000 per Ministerial instruction (refer Note C.5 Equity); - superannuation payments to GESB of $553,103 (refer to Superannuation - Defined Contribution Plans at Note A.2); - payments to ScreenWest for digital content and expenses in relation to the Yagan Square Digital Tower of $166,643 (reported in the Statement of Comprehensive Income under Sales and Marketing); - transfer of assets to Western Australian Land Authority as a distribution to owner to the value of $113,146,391 in accordance with Treasury designation (refer to Note C.5 Equity); - payments to Western Australian Land Authority of $5,920,350, including $206,886 salary and wages costs, in respect of transition and infrastructure development expenses; and - sublease of office accommodation to the Minister for Works, commencing April 2020, $209,063 (included in Other Income at Note A.1);
Material transactions with related parties There were no material transactions (including general citizen type transactions) between the MRA and Ministers/Senior Officers or their close family members or their controlled (or jointly controlled) entities during 2019-20.
Compensation of Key Management Personnel of the MRA The MRA has determined that key management personnel include Ministers, Board Directors, and, senior officers of the MRA. However, the MRA is not obligated to compensate Ministers and therefore disclosures in relation to Ministers’ compensation may be found in the Annual Report on State Finances. Total compensation for key management personnel, comprising members and senior officers, of the MRA for the reporting period are presented within the following bands:
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 233 F.1 RELATED PARTIES (continued)
Compensation of Members of the Authority Compensation Band ($) 2020 2019 $0 - $10,000 11 19 $10,001 - $20,000 2 - $30,001 - $40,000 3 5 $40,001 - $50,000 1 - $50,001 - $60,000 1 1 18 25
2020 2019 Compensation of Members of the Authority $000 $000 Short term employee benefits 263 262 Total Compensation of Members of the Authority 263 262
Under the Metropolitan Redevelopment Act 2011, the Authority’s members comprises a Board of Management (Board) consisting of seven members, together with a further five Land Redevelopment Committees (LRC) consisting of five members each, plus two alternate members when required. All members are appointed by the Minister.
Compensation of Senior Officers Compensation Band ($) 2020 2019 $180,001 - $190,000 2 1 $190,001 - $200,000 1 - $210,001 - $220,000 2 1 $220,001 - $230,000 - 3 $240,001 - $250,000 1 - $290,001 - $300,000 - 1 $360,001 - $370,000 1 - 7 6
2020 2019 Compensation of Senior Officers $000 $000
Short term employee benefits 1,284 1,040 Post employment benefits 120 96 Other long term benefits (24) 100 Termination benefits 222 128 Total Compensation of Senior Officers 1,602 1,364
Compensation of Senior Officers Under the Financial Management Act 2006 s78, senior officers are deemed to be any officer of the MRA who has responsibility and accountability for the functioning of a section or division which is significant in the operation of the MRA. The MRA had no senior officers who were members of the Pension Scheme as at 30 June 2020.
F.2 REMUNERATION OF AUDITORS 2020 2019 $000 $000 Remuneration of Auditors Auditing the accounts, financial statements and key performance indicators 69 65
234 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 F.3 PROVISIONS
Reconciliations Reconciliations for the carrying amounts of each class of provision, except for employee benefits, are set out below:
2020 2019 $000 $000
Current Provisions Public Art Contributions Carrying amount at start of period 617 640 Amounts received during the period 39 21 Amounts used during the period (70) (44) Carrying amount at end of period 586 617
Parking Contributions Carrying amount at start of period 528 528 Amounts received during the period - - Amounts used during the period - - Carrying amount at end of period 528 528
Contractuals 4,000 - Total Current Provisions 5,114 1,145
Non-Current Provisions Contractuals Carrying amount at start of period 1,694 1,654 Unwind of discount 21 40 Carrying amount at end of period 1,715 1,694
Total Non-Current Provisions 1,715 1,694
Recognition and Measurement Provisions are liabilities of uncertain timing or amount and are recognised where there is a present legal or constructive obligation as a result of a past event and when the outflow of resources embodying economic benefits is probable and a reliable estimate can be made of the amount of the obligation. Provisions are reviewed at the end of each reporting period.
Public Art Contributions A provision for public art contributions is recognised when a third party becomes obligated under the planning conditions of the development area to provide a cash-in-lieu contribution. These funds are held and applied by the MRA for the provision of public art within or immediately adjacent to the same project area as the contributing site.
Parking Provisions A provision for parking contributions is recognised when a developer becomes obligated to pay a parking contribution to the MRA as a result of not fulfilling minimum parking requirements in their particular development plans. These contributions are held by the MRA to be applied for the provision of public parking, cycling, pedestrian facilities or public transport within the redevelopment area.
Contractuals A current provision has been recognised for future contractual payments in respect of environmental remediation and a non- current provision has been recognised for future contractual payments in respect of infrastructure installation within the Central Perth Redevelopment Area.
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 235 F.4 COMMITMENTS All future procurement for the MRA is being undertaken by the Western Australian Land Authority, as a result there are no commitments as at 30 June 2020. 2020 2019 $000 $000
Other Expenditure Commitments Other expenditure commitments are payable as follows: Within 1 year 12,393 Later than 1 year and not later than 5 years 11,197 - 23,590
The totals presented for Other Expenditure Commitments are GST inclusive.
Capital Commitments Commitments for the acquisition of property, plant and equipment contracted for at the end of the reporting period but not recognised as liabilities: Within 1 year 6,733 Later than 1 year and not later than 5 years 841 - 7, 5 74
The totals presented for Capital Commitments are GST inclusive.
F.5 CONTINGENT ASSETS AND LIABILITIES There are no contingent assets at reporting date. In addition to the liabilities included in the financial statements, there are the following contingent liabilities:
Central Perth Redevelopment Area - Contamination Management The MRA is obligated to manage various areas adjacent to the Swan River by direction from the Minister for the Environment. A current containment management strategy is in place. In February 2014, under the Contaminated Sites Act 2003 the Department of Water and Environmental Regulation (DWER) classified certain areas as ‘Remediated for Restricted Use’. It is not possible to reliably estimate the potential financial effect of any claims should a contamination event occur in the future. However, the adopted maintenance plan continues to effectively address the requirements of the DWER classification.
Central Perth Redevelopment Area - Claims in Progress The MRA is in dispute in relation to construction works undertaken on its behalf within the Central Perth Redevelopment Area. The MRA’s objective is for an outcome which will safeguard the MRA from any ongoing financial risk and liability associated with outstanding defects and incomplete works. In addition, potential excessive settlement risk within a separate Central Perth Redevelopment Area is currently under investigation. The parties are progressing this matter in accordance with the contract provisions. The termination of the sale of a parcel of land within the Central Perth Redevelopment Area has resulted in the implementation of the dispute resolution clause in the sale contract, with a court appointed mediation having been held. As the parties were not able to achieve a resolution of the dispute at mediation, orders have been made by the Court requiring the parties to finalise their pleadings and give discovery. The MRA’s objective is for an outcome which will safeguard the MRA from any ongoing financial risk and liability.
F.6 GOODS AND SERVICES TAX Revenues, expenses and assets are recognised net of the amount of goods and services tax (GST), except: (i) where the amount of GST incurred is not recoverable from the taxation authority, it is recognised as part of the cost of acquisition of an asset or as part of an item of expense; or (ii) for receivables and payables which are recognised inclusive of GST. The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables. The GST component of cash flows arising from investing and financing activities which is recoverable from, or payable to, the taxation authority is classified as operating cash flows.
236 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 F.7 SUBSEQUENT EVENTS AFTER THE END OF THE REPORTING PERIOD On 23 September 2019 there was an administrative merger of Western Australia’s land development agencies, the MRA and the Western Australian Land Authority. Remaining MRA assets will be progressively transferred to the Western Australian Land Authority and to other State and local government agencies. These asset transfers will result in future financial impacts for the MRA. The State approved an equity injection in 2021 to repay up to $211.5 million in debt held by the MRA which transacted in August 2020. This will result in future financial impacts for the MRA.
F.8 INITIAL APPLICATION OF AUSTRALIAN ACCOUNTING STANDARDS The MRA has applied the following Australian Accounting Standards effective, or adopted, for annual reporting periods beginning on or after 1 January 2019 that impact on the MRA.
AASB 15 Revenue and AASB1058 Income of Not-for-Profit Entities AASB 15 Revenue from Contracts with Customers replaces AASB 118 Revenue and AASB 111 Construction Contracts for annual reporting periods on or after 1 January 2019. Under the new model, an entity shall recognise revenue when (or as) the entity satisfies a performance obligation by transferring a promised good or service to a customer and is based upon the transfer of control rather than transfer of risks and rewards. AASB 15 focuses on providing sufficient information to the users of financial statements about the nature, amount, timing and uncertainty of revenue and cash flows arising from the contracts with customers. Revenue is recognised by applying the following five steps: • Identifying contracts with customers • Identifying separate performance obligations • Determining the transaction price of the contract • Allocating the transaction price to each of the performance obligations • Recognising revenue when or as each performance obligation is satisfied. Revenue is recognised either over time or at a point in time. Any distinct goods or services are separately identified and any discounts or rebates in the contract price are allocated to the separate elements. In addition, income other than from contracts with customers are subject to AASB 1058 Income of Not-for-Profit Entities. Income recognition under AASB 1058 depends on whether such a transaction gives rise to liabilities, or a contribution by owners related to an asset (such as cash or another asset) recognised by the Agency. The MRA has elected to adopt the modified retrospective approach on transition to AASB 15 and AASB 1058. As such no comparative information is restated under this approach and the cumulative effect of initially applying the standards is reflected as an adjustment to the opening balance of the accumulated surplus/(deficit) at the date of initial application (1 July 2019). Under the transition method, the MRA has elected not to apply the standards retrospectively to non-completed contracts at the date of initial application. The effect of adopting AASB 15 and AASB 1058 is as follows:
30 June 2020 under 30 June 2020 Adjustments AASB 118 and 1004 ($000) ($000) ($000) User Fees and Charges A.1 381 (45) 336 Sale of Land A.1 18,032 - 18,032 Other Revenue A.1 2,270 (65) 2,205 Net Result 20,683 (110) 20,573
AASB 16 Leases AASB 16 Leases supersedes AASB 117 Leases and related Interpretations. AASB 16 primarily affects lessee accounting and provides a comprehensive model for the identification of lease arrangements and their treatment in the financial statements of both lessees and lessors. The Agency has applied AASB 16 Leases from 1 July 2019 using the modified retrospective approach. As permitted under the specific transition provisions, comparatives are not restated. The cumulative effect of initially applying this Standard is recognised as an adjustment to the opening balance of accumulated surplus/(deficit).
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 237 F.8 INITIAL APPLICATION OF AUSTRALIAN ACCOUNTING STANDARDS (continued) The main changes introduced by this Standard include identification of lease within a contract and a new lease accounting model for lessees that require lessees to recognise all leases (operating and finance leases) on the Statement of Financial Position as right-of- use assets and lease liabilities, except for short term leases (lease terms of 12 months or less at commencement date) and low-value assets (where the underlying asset is valued less than $5,000). The operating lease and finance lease distinction for lessees no longer exists. Under AASB 16, the Agency takes into consideration all operating leases that were off balance sheet under AASB 117 and recognises: a) right of use assets and lease liabilities in the Statement of Financial Position, initially measured at the present value of future lease payments, discounted using the incremental borrowing rate (2.5%) on 1 July 2019; b) depreciation of right-of-use assets and interest on lease liabilities in the Statement of Comprehensive Income; and c) the total amount of cash paid as principal amount, which is presented in the cash flows from financing activities, and interest paid, which is presented in the cash flows from operating activities, in the Statement of Cash Flows.
In relation to leased vehicles that were previously classified as finance leases, their carrying amount before transition is used as the carrying amount of the right-of-use assets and the lease liabilities as of 1 July 2019. The Agency measures concessionary leases that are of low value terms and conditions at cost at inception. There is no financial impact as the Agency is not in possession of any concessionary leases at the date of transition. The right-of-use assets are assessed for impairment at the date of transition and the Agency has not identified any impairments to its right-of-use assets. On transition, the agency has elected to apply the following practical expedients in the assessment of their leases that were previously classified as operating leases under AASB 117: (a) A single discount rate has been applied to a portfolio of leases with reasonably similar characteristics; (b) The Agency has relied on its assessment of whether existing leases were onerous in applying AASB 137 Provisions, Contingent Liabilities and Contingent Assets immediately before the date of initial application as an alternative to performing an impairment review. The Agency has adjusted the ROU asset at 1 July 2019 by the amount of any provisions included for onerous leases recognised in the statement of financial position at 30 June 2019; (c) Where the lease term at initial application ended within 12 months, the Agency has accounted for these as short-term leases; (d) Initial direct costs have been excluded from the measurement of the right-of-use asset; (e) Hindsight has been used to determine if the contracts contained options to extend or terminate the lease. The MRA has not reassessed whether existing contracts are, or contained a lease at 1 July 2019. The requirements of paragraphs 9-11 of AASB 16 are applied to contracts that came into existence post 1 July 2019.
Measurement of lease liabilities ($000) Operating Lease Commitments disclosed 30 June 2019 15,386 Less; Variable outgoings excluded from AASB 16 (3,181) Discounted using incremental borrowing rate at date of initial application1 (2,296) Add: Finance lease liabilities recognised as at 30 June 2020 - Less: Short-term leases not recognised as liability - Less: Low value leases not recognised as liability - Lease liability recognised at 1 July 2019 9,099
Current lease liability 47 Non-current lease liability 9,052
1The WATC incremental borrowing rate was used for the purposes of calculating the lease transition opening balance
F.9 ACCOUNTING STANDARDS AND INTERPRETATIONS ISSUED BUT NOT YET EFFECTIVE
The MRA cannot ‘early adopt’ an AAS unless specifically permitted by TI 1101 ‘Application of Australian Accounting Standards and Other Pronouncements’ or by an exemption from TI 1101. Where applicable, the MRA plans to apply the following AAS’s from their application date.
AASB 1059 Service Concession Arrangements: Grantors Effective 1 July 2020 This Standard addresses the accounting for a service concession arrangement (a type of public private partnership) by a grantor that is a public sector MRA by prescribing the accounting for the arrangement from the grantor’s perspective. Timing and measurement for the recognition of a specific asset class occurs on commencement of the arrangement and the accounting for associated liabilities is determined by whether the grantee is paid by the grantor or users of the public service provided. The Authority does not manage any public private partnership that is within the scope of this Standard.
238 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 F.9 ACCOUNTING STANDARDS AND INTERPRETATIONS ISSUED BUT NOT YET EFFECTIVE (continued)
AASB 2018-6 Amendments to Australian Accounting Standards – Effective 1 July 2020 Definition of a Business The Standard amends AASB 3 to clarify the definition of a business, assisting entities to determine whether a transaction should be accounted for as a business combination or as an asset acquisition. There is no financial impact for the MRA.
AASB 2018-7 Amendments to Australian Accounting Standards – Effective 1 July 2020 Definition of a Material The Standard principally amends AASB 101 and AASB 108. The amendments refine the definition of material in AASB 101. The amendments clarify the definition of material and its application by improving the wording and aligning the definition across AASB Standards and other publications. The amendment also includes some supporting requirements in AASB 101 in the definition to give it more prominence and clarifies the explanation accompanying the definition of material. There is no financial impact for the MRA.
AASB 2019-1 Amendments to Australian Accounting Standards – Effective 1 July 2020 References to the Conceptual Framework This Standard sets out amendments to Australian Accounting Standards, Interpretations and other pronouncements to reflect the issuance of the Conceptual Framework for Financial Reporting (Conceptual Framework) by the AASB.
AASB 2019-2 Amendments to Australian Accounting Standards – Effective 1 July 2020 Implementation of AASB 1059 This Standard makes amendments to AASB 16 and AASB 1059 to: (a) amend the modified retrospective method set out in paragraph C4 of AASB 1059; (b) modify AASB 16 to provide a practical expedient to grantors of service concession arrangements so that AASB 16 would not need to be applied to assets that would be recognised as service concession assets under AASB 1059; and (c) include editorial amendments to the application guidance and implementation guidance accompanying AASB 1059. The MRA does not maintain any public private partnership that is within the scope of the Standard.
AASB 2020-1 Amendments to Australian Accounting Standards – Effective 1 July 2020 Classification of Liabilities as Current or Non-current This Standard amends AASB 101 to clarify requirements for the presentation of liabilities in the statement of financial position as current or non-current. There is no financial impact for the MRA.
F.10 EXPLANATORY STATEMENT These statements below provide details of any significant variations between estimates (as per the Ministerially approved Operational Plan 2019/20) and actual results for 2020 and between the actuals results for 2020 and 2019 are shown below. Significant variations are considered to be those greater than 10% and $1 million.
Major Estimate and Actual (2020) Variance Narratives 1 Sales Revenue is lower than estimated due to delays in settlement on sites within the Central Perth, Armadale and Midland Redevelopment Areas which were budgeted in the 2019/20 financial year. 2 Developer Contribution Income is lower than estimated due to the number of development applications lodged by Developers. 3 Interest Income is higher than estimated due to the recognition of interest on deferred payments of sales lots in relation to the Central Perth and Subiaco Redevelopment Areas pursuant to Australian Accounting Standards. 4 Other Income is lower than estimated due to lower rental and event income. 5 Fair Value Increment for Distribution to Owner was not included in the estimates as the transfer values for distribution were not approved at the time the estimates were prepared. 6 Costs of Goods Sold was lower than estimated due to sales in the 2019/20 financial year being lower than budgeted. Refer to comment on Sales Revenue. 7 Employee Benefits were lower than estimated due to projects either having finished or transferred. 8 Depreciation is lower than estimated due to a lower value of infrastructure asset than forecast. 9 Development Contribution Expense was lower than estimated due to a lower value of works in lieu undertaken by developers.
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 239 F.10 EXPLANATORY STATEMENT (continued) 10 Finance Costs are higher than estimated due to the early repayment premiums paid to retire legacy debt. 11 Other Expenses include payroll tax which is included in the estimate for employee benefits and related costs. 12 Property Maintenance costs were higher than estimated due to additional maintenance undertaken in the Subiaco Redevelopment Area. 13 Infrastructure Development Expense was higher than estimated due to the inclusion of a provision for future contractual payments of environmental remediation. 14 Fair Value Increments and Decrements on Investment Property are not included in the approved forward estimates. They are a function of market movements and therefore cannot be reliably estimated. 15 Write-downs of inventory to NRV are not included in the approved estimates as they are a function of market movements and therefore cannot be reliably estimated.
Major Actual (2020) and Comparative (2019) Variance Narratives A Sales Revenue is higher than the previous financial year due to the value of settlements of sales lots within the Central Perth Redevelopment Area. B Developer Contribution Income is lower than the prior year due to a reduction in the number of development applications lodged by Developers. C Interest Income is lower than the previous year due to the recognition of interest on deferred payments of sales lots in relation to the Central Perth and Subiaco Redevelopment Areas pursuant to Australian Accounting Standards in the prior year. D Rechargeable Works Income is lower than the previous year due to a reduction in the value of works performed within the Subiaco Redevelopment Area. E Cost of Sales is lower than the previous financial year due to a reduction in the number of settlements of sales lots. F Development Contribution Expense was higher than prior year due to the value of works in lieu being undertaken by developers. G Finance Costs are higher than prior year due to the early repayment premiums paid to retire legacy debt. H Rechargeable Works Expense is lower than the previous year due to a reduction in the value of works performed within the Subiaco Redevelopment Area. I Property Maintenance costs were higher than prior year due to additional maintenance undertaken in the Subiaco Redevelopment Area. J Infrastructure Development Expense is lower than the previous year due to a reduction in the value of works performed within the Subiaco Redevelopment Area. K Fair Value Increments and Decrements on Investment Property and are a function of market movements and therefore valuations vary from year to year. L Inventory write downs for the current financial year relate to the Central Perth and Midland Redevelopment Areas and are a function of market movements and changes in estimates for the cost of completion. The net realisable value of inventory may change in the future if there are changes to the relevant masterplans for the redevelopment areas or changes in estimated sales prices or costs of completion. M Recurrent Appropriations are lower than previous year due to a reduction in appropriations in the Armadale Redevelopment Area.
240 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 F.10 EXPLANATORY STATEMENT (continued)
STATEMENT OF COMPREHENSIVE INCOME
Variance Variance between between actual results Estimate Actual Actual estimate and for 2020 Variance 2020 2020 2019 actual and 2019 Note ($000) ($000) ($000) ($000) ($000) Income Sales Revenue 1, A 103,753 18,032 15,540 (85,721) 2,492 Developer Contribution Income 2, B 5,500 3,115 7,164 (2,385) (4,049) Interest 3, C - 5,124 8,684 5,124 (3,560) Rechargeable Works D - 274 4,148 274 (3,874) Other Income 4 8,259 6,913 7,701 (1,346) (788) Restatement to Fair Value for Distribution to owner 5 - 18,098 - 18,098 18,098 Fair Value Increment on Investment Property 14, K - 3,080 301 3,080 2,799 Total Income 117,512 54,636 43,538 (62,876) 11,098 Expenditure Cost of Goods Sold 6, E 69,043 11,657 13,311 (57,386) (1,654) Employee Benefits 7 14,666 11,853 12,451 (2,813) (598) Supplies and Services 7,557 6,630 7,476 (927) (846) Depreciation and Amortisation 8 12,467 9,642 9,383 (2,825) 259 Developer Contribution Expense 9, F 12,484 1,471 172 (11,013) 1,299 Finance Costs 10, G 3,832 7,716 5,655 3,884 2,061 Rechargeable Works H - 275 3,340 275 (3,065) Other Expenses 11 259 1,520 1,587 1,261 (67) Property Maintenance 12, I 4,909 7,802 6,435 2,893 1,367 Sales and Marketing 1,077 1,479 2,412 402 (933) Infrastructure Development Expense 13, J 6,614 8,248 13,458 1,634 (5,210) Fair Value Decrement on Investment Property 14, K - 8,145 - 8,145 8,145 Write Down of Inventory to NRV 15, L - 57,712 49,168 57,712 8,544 Total Expenditure 132,908 134,150 124,848 1,242 9,302 Net Loss Other Than Income from State (15,396) (79,514) (81,310) (64,118) 1,796 Government Income from State Government Services Received Free of Charge - 181 199 181 (18) Grants and Contributions from Other Government Agencies M 20,924 21,292 41,354 368 (20,062) Surplus/(Loss) for the Period 5,528 (58,041) (39,757) (63,569) (18,284) Other Comprehensive Income Items not reclassified subsequently to profit or loss Remeasurements of Defined Benefit Liability - (93) (270) (93) 177 Changes in Asset Revaluation Reserve - - - - - Total Other Comprehensive Income - (93) (270) (93) 177 Total Comprehensive Income/(Loss) for the Period 5,528 (58,134) (40,027) (63,662) (18,107)
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 241 SECTION EIGHT GRI CONTENT INDEX
The Pocket, Claremont on the Park
242 I DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 8.1 GRI CONTENT INDEX
GRI CONTENT INDEX The Global Reporting Initiative (GRI) is an international non- profit organisation that pioneered and developed a globally adopted sustainability reporting standards. 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 prepared in accordance with the GRI Standards: Core option and the Construction and Real Estate Sector Supplement. DevelopmentWA has not undertaken assurance for the non-financial information within this report.
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 243 GRI Content Index For the Materiality Disclosures Service, GRI Services reviewed that the GRI Content Index is clearly presented and the reference for Disclosures 102-40 to 102-49 align with appropriate sections in the body of the report.
GENERAL DISCLOSURES
General Disclosure title Page number, link and/or direct answer External disclosure Assurance GRI 101: (GRI 101 does not include disclosures) – Foundation 2016 GRI 102: General 102-1 Name of the organisation 1.1 About DevelopmentWA p. 5. – Disclosures 2016 102-2 Activities, brands, products, and services 1.1 About DevelopmentWA p. 5; 2.3 Government Priorities and Strategic Direction p. 17; 2.4 Areas of Activity p. 19-20; Perth Metropolitan Projects p. 36; Statewide Operation p. 51. – 102-3 Location of headquarters Perth, Western Australia. – 102-4 Location of operations Australia. – 102-5 Ownership and legal form 1.1 About DevelopmentWA p. 5. – 102-6 Markets served 1.1 About DevelopmentWA p. 5; 2.4 Areas of Activity p.19-20; 2.5.2 Value Chain p.22-23. – 102-7 Scale of the organisation 2.4 Areas of Activity p. 19-20; 2.5.2 Value Chain p. 22-23; Perth Metropolitan Projects p. 36; Statewide Operation p. 51; 4.4.4 Fiscal Responsibility p. 64; Our workforce p. 102. – 102-8 Information on employees and other Our workforce p. 102; 2.5.2 Value Chain p. 22-23. – workers 102-9 Supply chain 2.5.2 Value Chain p. 22-23. – 102-10 Significant changes to the organisation and 1.1 About DevelopmentWA p. 5; 2.3.2 Future Direction - Government Reform p. 18; 2.5.2 Value Chain p. 22-23. – its supply chain 102-11 Precautionary Principle or approach 4.4.6 Climate Change Resilience p.70; DevelopmentWA website - Our Work - Our Approach: https://developmentwa.com.au/our-work/our-approach – 102-12 External initiatives External initiatives p. 61; Industry Accreditation p. 99-101. – 102-13 Membership of associations Membership of associations p. 60. – 102-14 Statement from senior decision-maker 1.3 Message from the Chairperson p. 8-9; 1.4 Message from the Chief Executive p. 10-11. – 102-15 Key impacts, risks and opportunities 2.4 Areas of Activity p.19-20. – 102-16 Values, principles, standards, and norms 2.1 Vision and Values p. 15; Section Five Governance p. 114-131; 4.4.19 Ethical and Accountable Decision Making p. 112. – of behaviour 102-18 Governance structure Section Five Governance p. 114-131. – 102-40 List of stakeholder groups 3.1.1 Principle One - Stakeholder Inclusiveness p. 26-27; Stakeholder engagement p. 58. – 102-41 Collective bargaining agreements Collective bargaining agreements p. 107. – 102-42 Identifying and selecting stakeholders Stakeholder engagement p. 58. – 102-43 Approach to stakeholder engagement 3.1.1 Principle One - Stakeholder Inclusiveness p. 26-27; 3.1.2 Principle Three - Materiality p. 28-29; 4.4.1 Excellent Stakeholder Relationships and Partnerships p. 58-62; 4.4.11 – Community Engagement p. 82-84. 102-44 Key topics and concerns raised 3.1.1 Principle One - Stakeholder Inclusiveness p. 26-27; Materiality Matrix p. 29; 4.4.1 Excellent Stakeholder Relationships and Partnerships p. 58-62; 4.4.11 Community Engagement p. – 82-84. 102-45 Entities included in the consolidated Director’s Declaration p. 133; Certification of Financial Statements p. 195. – financial statements 102-46 Defining report content and topic Section Three Significant Issues p. 24-33. – Boundaries 102-47 List of material topics Materiality Matrix p. 29. – 102-48 Restatements of information No restatements of information. – 102-49 Changes in reporting DevelopmentWA’s material topics have changed from the last reporting period (2018-19), when the organisation reported under the ‘LandCorp’ trading name. The new material topics – (except for Cohesive Culture) closely align to the topics from 2018-19, with the new titles reflecting more contemporary terminology. Cohesive Culture has been identified as a new material topic. The topic boundaries have also changed, but not significantly. 102-50 Reporting period 1.2 About This Report p. 6. – 102-51 Date of most recent report DevelopmentWA website - Publications : https://developmentwa.com.au/publications. –
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 0244 102-52 Reporting cycle 1.2 About This Report p. 6. – 102-53 Contact point for questions regarding the Feedback or questions on our Annual and Sustainability Report (back cover). – report 102-54 Claims of reporting in accordance with the 1.2 About This Report p. 6; Section Eight GRI Content Index p. 238-247. – GRI Standards 102-55 GRI content index Section Eight GRI Content Index p. 242-251. – 102-56 External assurance Section Eight GRI Content Index p. 242-251. –
MATERIAL TOPICS
Material topics Disclosure title Page number, link and/or direct answer Identified omissions Reason(s) for Explanation for External Omissions Omissions(s) Assurance
200 SERIES (ECONOMIC TOPICS)
MATERIAL TOPIC: ECONOMIC PERFORMANCE
GRI 103: 103-1 Explanation of the material topic and its Section Three Significant Issues p. 24-33; 2.5.2 Value Chain p. 22-23; 4.2 Prosperous Industry p. 44-49; – Management Boundary DevelopmentWA website - Our Work - Our Approach - Economic Wellbeing - Economic Prosperity: Approach 2016 https://developmentwa.com.au/our-work/our-approach/economic-wellbeing. 103-2 The management approach and its Section Three Significant Issues p. 24-33; 2.5.2 Value Chain p. 22-23; 4.2 Prosperous Industry p. 44-49; – components DevelopmentWA website - Our Work - Our Approach - Economic Wellbeing - Economic Prosperity: https://developmentwa.com.au/our-work/our-approach/economic-wellbeing. 103-3 Evaluation of the management approach 4.2 Prosperous Industry p. 44-49; DevelopmentWA website - Our Work - Our Approach - Economic – Wellbeing - Economic Prosperity: https://developmentwa.com.au/our-work/our-approach/economic- wellbeing. GRI 201: Economic 201-1 Direct economic value generated and 4.4.4 Fiscal Responsibility p. 64. – Performance 2016 distributed 201-2 Financial implications and other risks and 4.4.6 Climate Change Resilience p. 70; DevelopmentWA website - Our Work - Our Approach - – opportunities due to climate change Environmental Integrity - Climate Change Resilience: https://developmentwa.com.au/our-work/our- approach/environmental-integrity. 201-3 Defined benefit plan obligations and other Superannuation contributions p. 107. – retirement plans 201-4 Financial assistance received from Operating Subsidy Arrangements p. 64. – government
MATERIAL TOPIC: INDIRECT ECONOMIC IMPACTS
GRI 103: 103-1 Explanation of the material topic and its Section Three Significant Issues p. 24-33; 2.5.2 Value Chain p. 22-23; 4.2 Prosperous Industry p. 44-49; – Management Boundary DevelopmentWA website - Our Work - Our Approach - Economic Wellbeing – Prosperous Industry: Approach 2016 https://developmentwa.com.au/our-work/our-approach/economic-wellbeing. 103-2 The management approach and its Section Three Significant Issues p. 24-33; 2.5.2 Value Chain p. 22-23; 4.2 Prosperous Industry p. 44-49; – components DevelopmentWA website - Our Work - Our Approach - Economic Wellbeing – Prosperous Industry: https://developmentwa.com.au/our-work/our-approach/economic-wellbeing. 103-3 Evaluation of the management approach 4.1 Sustainable Communities - Metropolitan Cities and Centres p. 35-43; 4.2 Prosperous Industry p. – 44-49; 4.3 Resilient Regions p. 50-57; DevelopmentWA website - Our Work - Our Approach - Economic Wellbeing – Prosperous Industry: https://developmentwa.com.au/our-work/our-approach/economic- wellbeing. GRI 203: Indirect 203-1 Infrastructure investments and services 4.1 Sustainable Communities - Metropolitan Cities and Centres p. 35-43; 4.2 Prosperous Industry p. – Economic supported 44-49; 4.3 Resilient Regions p. 50-57. Impacts 2016 203-2 Significant indirect economic impacts 4.1 Sustainable Communities - Metropolitan Cities and Centres p. 35-43; 4.2 Prosperous Industry p. 44- – 49; 4.3 Resilient Regions p. 50-57; 4.4.13 Affordable Housing and Living p. 88-89.
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 0245 MATERIAL TOPIC: PROCUREMENT PRACTICES
GRI 103: 103-1 Explanation of the material topic and its Section Three Significant Issues p. 24-33; 2.5.2 Value Chain p. 22-23; 4.4.5 Sustainable Supply Chains p. – Management Boundary 65-69; DevelopmentWA website - Our Work - Our Approach - Economic Wellbeing - Sustainable Supply Approach 2016 Chains: https://developmentwa.com.au/our-work/our-approach/economic-wellbeing. 103-2 The management approach and its Section Three Significant Issues p. 24-33; 2.5.2 Value Chain p. 22-23; 4.4.5 Sustainable Supply Chains p. – components 65-69; DevelopmentWA website - Our Work - Our Approach - Economic Wellbeing - Sustainable Supply Chains: https://developmentwa.com.au/our-work/our-approach/economic-wellbeing. 103-3 Evaluation of the management approach 4.4.5 Sustainable Supply Chains p. 65-69; DevelopmentWA website - Our Work - Our Approach – - Economic Wellbeing - Sustainable Supply Chains: https://developmentwa.com.au/our-work/our- approach/economic-wellbeing. GRI 204: 204-1 Proportion of spending on local suppliers Procuring locally p. 66. – Procurement Practices 2016
MATERIAL TOPICS: ANTI-CORRUPTION
GRI 103: 103-1 Explanation of the material topic and its Section Three Significant Issues p. 24-33; 4.4.19 Ethical and Accountable Decision Making p. 112-113; – Management Boundary DevelopmentWA website - Our Work - Our Approach - Governance - Ethical and Accountable Decision Approach 2016 Making: https://developmentwa.com.au/our-work/our-approach/governance. 103-2 The management approach and its Section Three Significant Issues p. 24-33; 4.4.19 Ethical and Accountable Decision Making p. 112-113; – components DevelopmentWA website - Our Work - Our Approach - Governance - Ethical and Accountable Decision Making: https://developmentwa.com.au/our-work/our-approach/governance. 103-3 Evaluation of the management approach 4.4.19 Ethical and Accountable Decision Making p. 112-113; DevelopmentWA website - Our Work - Our – Approach - Governance - Ethical and Accountable Decision Making: https://developmentwa.com.au/ our-work/our-approach/governance. GRI 205: Anti- 205-1 Operations assessed for risks related to 4.4.19 Ethical and Accountable Decision Making p. 112-113. – Corruption 2016 corruption 205-2 Communication and training about anti- 4.4.19 Ethical and Accountable Decision Making p. 112-113. – corruption policies and procedures 205-3 Confirmed incidents of corruption and 4.4.19 Ethical and Accountable Decision Making p. 112-113. – actions taken
300 SERIES (ENVIRONMENTAL TOPICS)
MATERIAL TOPIC: ENERGY
GRI 103: 103-1 Explanation of the material topic and its Section Three Significant Issues p. 24-33; 2.5.2 Value Chain p. 22-23; 4.4.9 Energy Transition p. 77; – Management Boundary DevelopmentWA website - Our Work - Our Approach - Environmental Integrity - Energy Transition: Approach 2016 https://developmentwa.com.au/our-work/our-approach/environmental-integrity. 103-2 The management approach and its Section Three Significant Issues p. 24-33; 2.5.2 Value Chain p. 22-23; 4.4.9 Energy Transition p. 77; – components DevelopmentWA website - Our Work - Our Approach - Environmental Integrity - Energy Transition: https://developmentwa.com.au/our-work/our-approach/environmental-integrity. 103-3 Evaluation of the management approach 4.4.9 Energy Transition p. 77; DevelopmentWA website - Our Work - Our Approach - Environmental – Integrity - Energy Transition: https://developmentwa.com.au/our-work/our-approach/environmental- integrity. GRI 302: Energy 302-5 Reductions in energy requirements of 4.4.9 Energy Transition p. 77. – 2016 products and services
MATERIAL TOPIC: WATER AND EFFLUENTS
GRI 103: 103-1 Explanation of the material topic and its Section Three Significant Issues p. 24-33; 2.5.2 Value Chain p. 22-23; 4.4.8 Waterwise Development – Management Boundary p. 75-76; DevelopmentWA website - Our Work - Our Approach - Environmental Integrity - Waterwise Approach 2016 Development: https://developmentwa.com.au/our-work/our-approach/environmental-integrity. 103-2 The management approach and its Section Three Significant Issues p. 24-33; 2.5.2 Value Chain p. 22-23; 4.4.8 Waterwise Development – components p. 75-76; DevelopmentWA website - Our Work - Our Approach - Environmental Integrity - Waterwise Development: https://developmentwa.com.au/our-work/our-approach/environmental-integrity. 103-3 Evaluation of the management approach 4.4.8 Waterwise Development p. 75-76; DevelopmentWA website - Our Work - Our Approach - – Environmental Integrity - Waterwise Development: https://developmentwa.com.au/our-work/our- approach/environmental-integrity.
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 0246 GRI 303: Water 303-1 Interactions with water as a shared 2.5.2 Value Chain p. 22-23; 4.4.8 Waterwise Development p. 75-76; DevelopmentWA website - Our Work – and Effluents 2018 resource - Our Approach - Environmental Integrity - Waterwise Development: https://developmentwa.com.au/ our-work/our-approach/environmental-integrity. 303-2 Management of water discharge-related 2.5.2 Value Chain p. 22-23; 4.4.8 Waterwise Development p. 75-76; DevelopmentWA website - Our Work – impacts - Our Approach - Environmental Integrity - Waterwise Development: https://developmentwa.com.au/ our-work/our-approach/environmental-integrity. 303-5 Water consumption 4.4.8 Waterwise Development p. 75-76. –
MATERIAL TOPIC: BIODIVERSITY
GRI 103: 103-1 Explanation of the material topic and its Section Three Significant Issues p. 24-33; 2.5.2 Value Chain p. 22-23; 4.4.7 Environmental Asset – Management Boundary Protection and Enhancement p. 71-74; DevelopmentWA website - Our Work - Our Approach - Approach 2016 Environmental Integrity - Environmental Asset Protection and Enhancement: https://developmentwa. com.au/our-work/our-approach/environmental-integrity. 103-2 The management approach and its Section Three Significant Issues p. 24-33; 2.5.2 Value Chain p. 22-23; 4.4.7 Environmental Asset – components Protection and Enhancement p. 71-74; DevelopmentWA website - Our Work - Our Approach - Environmental Integrity - Environmental Asset Protection and Enhancement: https://developmentwa. com.au/our-work/our-approach/environmental-integrity. 103-3 Evaluation of the management approach 4.4.7 Environmental Asset Protection and Enhancement p. 71-74; DevelopmentWA website - Our Work – - Our Approach - Environmental Integrity - Environmental Asset Protection and Enhancement: https:// developmentwa.com.au/our-work/our-approach/environmental-integrity. GRI 304: 304-1 Operational sites owned, leased, managed 4.4.7 Environmental Asset Protection and Enhancement p. 71-74. – Biodiversity 2016 in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas 304-2 Significant impacts of activities, products, 4.4.7 Environmental Asset Protection and Enhancement p. 71-74; DevelopmentWA website - Our Work – and services on biodiversity - Our Approach - Environmental Integrity - Environmental Asset Protection and Enhancement: https:// developmentwa.com.au/our-work/our-approach/environmental-integrity. 304-3 Habitats protected or restored 4.4.7 Environmental Asset Protection and Enhancement p. 71-74. – 304-4 IUCN Red List species and national 4.4.7 Environmental Asset Protection and Enhancement p. 71-74. – conservation list species with habitats in areas affected by operations
MATERIAL TOPIC: EMISSIONS
GRI 103: 103-1 Explanation of the material topic and its Section Three Significant Issues p. 24-33; 2.5.2 Value Chain p. 22-23; 4.4.9 Energy Transition p. 77; 4.4.6 – Management Boundary Climate Change Resilience p. 70; DevelopmentWA website - Our Work - Our Approach - Environmental Approach 2016 Integrity - Energy Transition: https://developmentwa.com.au/our-work/our-approach/environmental- integrity. 103-2 The management approach and its Section Three Significant Issues p. 24-33; 2.5.2 Value Chain p. 22-23; 4.4.9 Energy Transition p. 77; 4.4.6 – components Climate Change Resilience p. 70; DevelopmentWA website - Our Work - Our Approach - Environmental Integrity - Energy Transition: https://developmentwa.com.au/our-work/our-approach/environmental- integrity. 103-3 Evaluation of the management approach 4.4.9 Energy Transition p. 77; 4.4.6 Climate Change Resilience p. 70; DevelopmentWA website - Our – Work - Our Approach - Environmental Integrity - Energy Transition: https://developmentwa.com.au/ our-work/our-approach/environmental-integrity. GRI 305: 305-5 Reduction of GHG emissions 4.4.9 Energy Transition p. 77; 4.4.6 Climate Change Resilience p. 70. Energy reduction Some information is Currently information – Emissions 2016 initiatives are not currently unavailable. is not readily available always communicated or collected across in terms of GHG all of our projects. emission reduction DevelopmentWA equivalents. is working towards standardising measures across projects.
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 0247 MATERIAL TOPIC: WASTE
GRI 103: 103-1 Explanation of the material topic and its Section Three Significant Issues p. 24-33; 2.5.2 Value Chain p. 22-23; 4.4.7 Environmental Asset – Management Boundary Protection and Enhancement p. 71-74; 4.4.10 Waste Avoidance and Resource Recovery p. 78-81; Approach 2016 DevelopmentWA website - Our Work - Our Approach - Environmental Integrity - Waste Avoidance and Resource Recovery: https://developmentwa.com.au/our-work/our-approach/environmental-integrity. 103-2 The management approach and its Section Three Significant Issues p. 24-33; 2.5.2 Value Chain p. 22-23; 4.4.7 Environmental Asset – components Protection and Enhancement p. 71-74; 4.4.10 Waste Avoidance and Resource Recovery p. 78-81; DevelopmentWA website - Our Work - Our Approach - Environmental Integrity - Waste Avoidance and Resource Recovery: https://developmentwa.com.au/our-work/our-approach/environmental-integrity. 103-3 Evaluation of the management approach 4.4.10 Waste Avoidance and Resource Recovery p. 78-81; 4.4.7 Environmental Asset Protection and – Enhancement p. 71-74; DevelopmentWA website - Our Work - Our Approach - Environmental Integrity - Waste Avoidance and Resource Recovery: https://developmentwa.com.au/our-work/our-approach/ environmental-integrity. GRI 306: Waste 306-1 Waste generation and significant waste- 2.5.2 Value Chain p. 22-23; 4.4.7 Environmental Asset Protection and Enhancement p. 71-74; 4.4.10 – 2020 related impacts Waste Avoidance and Resource Recovery p. 78-81; DevelopmentWA website - Our Work - Our Approach - Environmental Integrity - Waste Avoidance and Resource Recovery: https://developmentwa.com.au/ our-work/our-approach/environmental-integrity. 306-2 Management of significant waste-related 2.5.2 Value Chain p. 22-23; 4.4.7 Environmental Asset Protection and Enhancement p. 71-74; 4.4.10 – impacts Waste Avoidance and Resource Recovery p. 78-81; DevelopmentWA website - Our Work - Our Approach - Environmental Integrity - Waste Avoidance and Resource Recovery: https://developmentwa.com.au/ our-work/our-approach/environmental-integrity. 306-3 Waste generated 4.4.7 Environmental Asset Protection and Enhancement p. 71-74; 4.4.10 Waste Avoidance and Resource This has been reported Some information is Currently information – Recovery p. 78-81. for some projects. currently unavailable. is not readily available or collected across all of our projects for total weight of waste by type and disposal method. Future project Waste Management Strategies will address this gap with project demolition and construction waste and recycling targets to capture information. 306-4 Waste diverted from disposal 4.4.7 Environmental Asset Protection and Enhancement p. 71-74; 4.4.10 Waste Avoidance and Resource Same as above. Same as above. Same as above. – Recovery p. 78-81. 306-5 Waste directed to disposal 4.4.7 Environmental Asset Protection and Enhancement p. 71-74; 4.4.10 Waste Avoidance and Resource Same as above. Same as above. Same as above. – Recovery p. 78-81.
MATERIAL TOPIC: ENVIRONMENTAL COMPLIANCE
GRI 103: 103-1 Explanation of the material topic and its Section Three Significant Issues p. 24-33; 2.5.2 Value Chain p. 22-23; 4.4.7 Environmental Asset – Management Boundary Protection and Enhancement p. 71-74; DevelopmentWA website - Our Work - Our Approach - Approach 2016 Environmental Integrity - Environmental Asset Protection and Enhancement: https://developmentwa. com.au/our-work/our-approach/environmental-integrity. 103-2 The management approach and its Section Three Significant Issues p. 24-33; 2.5.2 Value Chain p. 22-23; 4.4.7 Environmental Asset – components Protection and Enhancement p. 71-74; DevelopmentWA website - Our Work - Our Approach - Environmental Integrity - Environmental Asset Protection and Enhancement: https://developmentwa. com.au/our-work/our-approach/environmental-integrity. 103-3 Evaluation of the management approach 4.4.7 Environmental Asset Protection and Enhancement p. 71-74; DevelopmentWA website - Our Work – - Our Approach - Environmental Integrity - Environmental Asset Protection and Enhancement: https:// developmentwa.com.au/our-work/our-approach/environmental-integrity. GRI 307: 307-1 Non-compliance with environmental laws 4.4.7 Environmental Asset Protection and Enhancement p. 71-74 – Environmental and regulations Compliance 2016
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 0248 MATERIAL TOPIC: SUPPLIER ENVIRONMENTAL ASSESSMENT
GRI 103: 103-1 Explanation of the material topic and its Section Three Significant Issues p. 24-33; 2.5.2 Value Chain p. 22-23; 4.4.5 Sustainable Supply Chains p. – Management Boundary 65-69; DevelopmentWA website - Our Work - Our Approach - Economic Wellbeing - Sustainable Supply Approach 2016 Chains: https://developmentwa.com.au/our-work/our-approach/economic-wellbeing. 103-2 The management approach and its Section Three Significant Issues p. 24-33; 2.5.2 Value Chain p. 22-23; 4.4.5 Sustainable Supply Chains p. – components 65-69; DevelopmentWA website - Our Work - Our Approach - Economic Wellbeing - Sustainable Supply Chains: https://developmentwa.com.au/our-work/our-approach/economic-wellbeing. 103-3 Evaluation of the management approach 4.4.5 Sustainable Supply Chains p. 65-69; DevelopmentWA website - Our Work - Our Approach – - Economic Wellbeing - Sustainable Supply Chains: https://developmentwa.com.au/our-work/our- approach/economic-wellbeing. GRI 308: Supplier 308-1 New suppliers that were screened using 4.4.5 Sustainable Supply Chains p. 65-69; 4.4.7 Environmental Asset Protection and Enhancement p. – Environmental environmental criteria 71-74. Assessment 2016 308-2 Negative environmental impacts in the 4.4.5 Sustainable Supply Chains p. 65-69; 4.4.7 Environmental Asset Protection and Enhancement p. – supply chain and actions taken 71-74.
400 SERIES (SOCIAL TOPICS)
MATERIAL TOPICS: EMPLOYMENT
GRI 103: 103-1 Explanation of the material topic and its Section Three Significant Issues p. 24-33; 4.4.17 Cohesive Culture p. 102-107; DevelopmentWA website – Management Boundary - Our Work - Our Approach - Governance - Cohesive Culture: https://developmentwa.com.au/our-work/ Approach 2016 our-approach/governance. 103-2 The management approach and its Section Three Significant Issues p. 24-33; 4.4.17 Cohesive Culture p. 102-107; DevelopmentWA website – components - Our Work - Our Approach - Governance - Cohesive Culture: https://developmentwa.com.au/our-work/ our-approach/governance. 103-3 Evaluation of the management approach 4.4.17 Cohesive Culture p. 102-107; DevelopmentWA website - Our Work - Our Approach - Governance - – Cohesive Culture: https://developmentwa.com.au/our-work/our-approach/governance. GRI 401: 401-1 New employee hires and employee turnover Employee retention and turnover p. 103; New employment hire p. 104. – Employment 2016 401-3 Parental leave Parental leave p. 105-106. –
MATERIAL TOPICS: OCCUPATIONAL HEALTH AND SAFETY
GRI 103: 103-1 Explanation of the material topic and its Section Three Significant Issues p. 24-33; 4.4.18 Staff Health and Wellbeing p. 108-111; DevelopmentWA – Management Boundary website - Our Work - Our Approach - Governance - Staff Health and Wellbeing: https://developmentwa. Approach 2016 com.au/our-work/our-approach/governance. 103-2 The management approach and its Section Three Significant Issues p. 24-33; 4.4.18 Staff Health and Wellbeing p. 108-111; DevelopmentWA – components website - Our Work - Our Approach - Governance - Staff Health and Wellbeing: https://developmentwa. com.au/our-work/our-approach/governance. 103-3 Evaluation of the management approach 4.4.18 Staff Health and Wellbeing p. 108-111; DevelopmentWA website - Our Work - Our Approach - – Governance - Staff Health and Wellbeing: https://developmentwa.com.au/our-work/our-approach/ governance. GRI 403: 403-1 Occupational health and safety 4.4.18 Staff Health and Wellbeing p. 108-111; DevelopmentWA website - Our Work - Our Approach - – Occupational management system Governance - Staff Health and Wellbeing: https://developmentwa.com.au/our-work/our-approach/ Health and Safety governance. 2018 403-2 Hazard identification, risk assessment, and 4.4.18 Staff Health and Wellbeing p. 108-111; DevelopmentWA website - Our Work - Our Approach - – incident investigation Governance - Staff Health and Wellbeing: https://developmentwa.com.au/our-work/our-approach/ governance. 403-3 Occupational health services 4.4.18 Staff Health and Wellbeing p. 108-111; DevelopmentWA website - Our Work - Our Approach - – Governance - Staff Health and Wellbeing: https://developmentwa.com.au/our-work/our-approach/ governance. 403-4 Worker participation, consultation, and 4.4.18 Staff Health and Wellbeing p. 108-111; DevelopmentWA website - Our Work - Our Approach - – communication on occupational health and safety Governance - Staff Health and Wellbeing: https://developmentwa.com.au/our-work/our-approach/ governance. 403-5 Worker training on occupational health 4.4.18 Staff Health and Wellbeing p. 108-111; DevelopmentWA website - Our Work - Our Approach - – and safety Governance - Staff Health and Wellbeing: https://developmentwa.com.au/our-work/our-approach/ governance.
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 0249 403-6 Promotion of worker health 4.4.18 Staff Health and Wellbeing p. 108-111; DevelopmentWA website - Our Work - Our Approach - – Governance - Staff Health and Wellbeing: https://developmentwa.com.au/our-work/our-approach/ governance. 403-7 Prevention and mitigation of occupational 4.4.18 Staff Health and Wellbeing p. 108-111; DevelopmentWA website - Our Work - Our Approach - – health and safety impacts directly linked by Governance - Staff Health and Wellbeing: https://developmentwa.com.au/our-work/our-approach/ business relationships governance. 403-8 Workers covered by an occupational health 4.4.18 Staff Health and Wellbeing p. 108-111. – and safety management system 403-9 Work-related injuries 4.4.18 Staff Health and Wellbeing p. 108-111. –
MATERIAL TOPICS: TRAINING AND EDUCATION
GRI 103: 103-1 Explanation of the material topic and its Section Three Significant Issues p. 24-33; 4.4.17 Cohesive Culture p. 102-107; DevelopmentWA website – Management Boundary - Our Work - Our Approach - Governance - Cohesive Culture: https://developmentwa.com.au/our-work/ Approach 2016 our-approach/governance. 103-2 The management approach and its Section Three Significant Issues p. 24-33; 4.4.17 Cohesive Culture p. 102-107; DevelopmentWA website – components - Our Work - Our Approach - Governance - Cohesive Culture: https://developmentwa.com.au/our-work/ our-approach/governance. 103-3 Evaluation of the management approach 4.4.17 Cohesive Culture p. 102-107; DevelopmentWA website - Our Work - Our Approach - Governance - – Cohesive Culture: https://developmentwa.com.au/our-work/our-approach/governance. GRI 404: Training 404-1 Average hours of training per year per Learning and development p. 106-107. – and Education employee 2016 404-2 Programs for upgrading employee skills Building knowledge and skills p. 107. – and transition assistance programs 404-3 Percentage of employees receiving regular Performance management p. 107. – performance and career development reviews
MATERIAL TOPICS: DIVERSITY AND EQUAL OPPORTUNITY
GRI 103: 103-1 Explanation of the material topic and its Section Three Significant Issues p. 24-33; 4.4.17 Cohesive Culture p. 102-107; DevelopmentWA website – Management Boundary - Our Work - Our Approach - Governance - Cohesive Culture: https://developmentwa.com.au/our-work/ Approach 2016 our-approach/governance. 103-2 The management approach and its Section Three Significant Issues p. 24-33; 4.4.17 Cohesive Culture p. 102-107; DevelopmentWA website – components - Our Work - Our Approach - Governance - Cohesive Culture: https://developmentwa.com.au/our-work/ our-approach/governance. 103-3 Evaluation of the management approach 4.4.17 Cohesive Culture p. 102-107; DevelopmentWA website - Our Work - Our Approach - Governance - – Cohesive Culture: https://developmentwa.com.au/our-work/our-approach/governance. GRI 405: Diversity 405-1 Diversity of governance bodies and Our workforce p. 102-103; Diversity p. 104-105. – and Equal employees Opportunity 2016 405-2 Ratio of basic salary and remuneration of Gender equality p. 105. – women to men
MATERIAL TOPICS: LOCAL COMMUNITIES
GRI 103: 103-1 Explanation of the material topic and its Section Three Significant Issues p. 24-33; 4.4.11 Community Engagement p. 82-84; 4.4.13 Affordable – Management Boundary Housing and Living p. 88-89; 4.4.14 Reconciliation p. 90-91; 4.4.15 Community Development and Approach 2016 Activation p. 92-94; DevelopmentWA website - Our Work - Our Approach - Social Inclusion - Community Engagement & Community Development and Activation: https://developmentwa.com.au/our-work/our- approach/social-inclusion. 103-2 The management approach and its Section Three Significant Issues p. 24-33; 4.4.11 Community Engagement p. 82-84; 4.4.13 Affordable – components Housing and Living p. 88-89; 4.4.14 Reconciliation p. 90-91; 4.4.15 Community Development and Activation p. 92-94; DevelopmentWA website - Our Work - Our Approach - Social Inclusion - Community Engagement & Community Development and Activation: https://developmentwa.com.au/our-work/our- approach/social-inclusion. 103-3 Evaluation of the management approach 4.4.11 Community Engagement p. 82-84; 4.4.13 Affordable Housing and Living p. 88-89; 4.4.14 – Reconciliation p. 90-91; 4.4.15 Community Development and Activation p. 92-94; DevelopmentWA website - Our Work - Our Approach - Social Inclusion - Community Engagement & Community Development and Activation: https://developmentwa.com.au/our-work/our-approach/social-inclusion.
DEVELOPMENTWA ANNUAL AND SUSTAINABILITY REPORT 2019/20 I 0250 GRI 413: Local 413-1 Operations with local community 4.4.11 Community Engagement p. 82-84; 4.4.13 Affordable Housing and Living p. 88-89; 4.4.14 – Communities 2016 engagement, impact assessments, and Reconciliation p. 90-91; 4.4.15 Community Development and Activation p. 92-94. development programs 413-2 Operations with significant actual and 4.4.11 Community Engagement p. 82-84; 4.4.13 Affordable Housing and Living p. 88-89; 4.4.14 – potential negative impacts on local communities Reconciliation p. 90-91; 4.4.15 Community Development and Activation p. 92-94.
MATERIAL TOPICS: HUMAN RIGHTS ASSESSMENT
GRI 103: 103-1 Explanation of the material topic and its Section Three Significant Issues p. 24-33; 4.4.5 Sustainable Supply Chains p. 65-69; DevelopmentWA – Management Boundary website - Our Work - Our Approach - Economic Wellbeing - Sustainable Supply Chains: https:// Approach 2016 developmentwa.com.au/our-work/our-approach/economic-wellbeing. 103-2 The management approach and its Section Three Significant Issues p. 24-33; 4.4.5 Sustainable Supply Chains p. 65-69; DevelopmentWA components website - Our Work - Our Approach - Economic Wellbeing - Sustainable Supply Chains: https:// developmentwa.com.au/our-work/our-approach/economic-wellbeing. 103-3 Evaluation of the management approach 4.4.5 Sustainable Supply Chains p. 65-69; DevelopmentWA website - Our Work - Our Approach - Economic Wellbeing - Sustainable Supply Chains: https://developmentwa.com.au/our-work/our- approach/economic-wellbeing. GRI 414: 412-1 Operations that have been subject to human 4.4.5 Sustainable Supply Chains p. 65-69. Supplier Social rights reviews or impact assessments Assessment 2016 412-2 Employee training on human rights policies 4.4.5 Sustainable Supply Chains p. 65-69. or procedures
MATERIAL TOPICS: SUPPLIER SOCIAL ASSESSMENT
GRI 103: 103-1 Explanation of the material topic and its Section Three Significant Issues p. 24-33; 4.4.5 Sustainable Supply Chains p. 65-69; DevelopmentWA – Management Boundary website - Our Work - Our Approach - Economic Wellbeing - Sustainable Supply Chains: https:// Approach 2016 developmentwa.com.au/our-work/our-approach/economic-wellbeing. 103-2 The management approach and its Section Three Significant Issues p. 24-33; 4.4.5 Sustainable Supply Chains p. 65-69; DevelopmentWA – components website - Our Work - Our Approach - Economic Wellbeing - Sustainable Supply Chains: https:// developmentwa.com.au/our-work/our-approach/economic-wellbeing. 103-3 Evaluation of the management approach 4.4.5 Sustainable Supply Chains p. 65-69; DevelopmentWA website - Our Work - Our Approach – - Economic Wellbeing - Sustainable Supply Chains: https://developmentwa.com.au/our-work/our- approach/economic-wellbeing. GRI 414: 414-1 New suppliers that were screened using 4.4.5 Sustainable Supply Chains p. 65-69. – Supplier Social social criteria Assessment 2016
SECTOR SUPPLEMENT:
CONSTRUCTION AND REAL ESTATE SECTOR SUPPLEMENT 2011
Land Degradation, CRE5 Land remediation and land in need of Land contamination and remediation p. 71-72. – Contamination remediation and Remediation 2011 Occupational CRE6 Compliance with internationally recognised 4.4.18 Staff health and wellbeing p. 108-111. Health and Safety health and safety management system 2011 Local CRE 7 Number of persons voluntarily and Community hardship p. 93. – Communities 2011 inoluntarily displaced or resettled Product and CRE 8 Type and number of sustainability Industry accreditation p. 99-101. – Service Labeling certification, rating and labeling schemes 2011 Local SO1 Engagement approach throughout lifecycle 4.4.11 Community Engagement 82-84; DevelopmentWA website - Our Work - Our Approach - Social – Communities 2011 Inclusion - Community Engagement: https://developmentwa.com.au/our-work/our-approach/social- inclusion.
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