UrbanGrowth NSW Annual Report 2017
Renewed pocket park on Carriageworks Way in North Eveleigh Linear Park, Lachlan’s Line
02 ANNUAL REPORT 2017
Ministers’ letter
31 October 2017
The Hon Dominic Perrottet MP Treasurer 52 Martin Place Sydney NSW 2000
The Hon Victor Dominello MP Minister for Finance, Services and Property 52 Martin Place Sydney NSW 2000
Dear Treasurer and Minister We are pleased to submit to you, for presentation to the Parliament of New South Wales, the Annual Report for Landcom trading as UrbanGrowth NSW for the year ended 30 June 2017. The report, detailing the performance, operations and financial results of the corporation, has been prepared in accordance with section 24A of the State Owned Corporations Act 1989, the Annual Reports (Statutory Bodies) Act 1984 and the applicable provisions of the Public Finance and Audit Act 1983. Yours sincerely,
John Brogden AM Suzanne Jones Chairman Director
03 ANNUAL REPORT 2017
03 Contents Ministers’ letter
06 Chairman’s review
08 Chief Executive Officer’s review
10 Board of Directors
14 Executive Management Team
Business owners, Central to Eveleigh
04 ANNUAL REPORT 2017
18 38 56 Our organisation Corporate activities Financial statements Our portfolio 19 Our charter and function 38 Our governance structure 20 Board of Directors, 104 meetings and committees 39 FY16/17 economic Index and financial highlights 21 Measuring performance 40 Risk management 41 105 22 Public access to information Highlights of this year’s achievements Corporate directory and the protection of privacy 42 Performance against Legal events 46 operational objectives 22 Work health and safety 46 Western Sydney Projects Portfolio 24 Multicultural Policies and CBD Projects Portfolio 28 Services Program 48 The Bays Precinct Sydney 30 Workforce diversity performance 50 Awards 32 Our guarantee of service 51 Sustainability Strategy 34 Executive positions 52 Engagement with communities 35 Miscellaneous activities 53 Disclosure of approved exemptions 54 36 Looking ahead to FY17/18
05 ANNUAL REPORT 2017
Chairman’s review
During the 2017 financial year (FY16/17) a structural review by the NSW Government has set our organisation on a new path that will enable even better outcomes for people and businesses across NSW.
This next phase will see UrbanGrowth neighbourhoods that offer a diversity of all our staff for their dedication not only NSW’s portfolio of projects re-assigned housing and reflect Landcom’s proud for the past 12 months, but for the last to three separate entities: Landcom (a history of sustainable development few years. state owned corporation), UrbanGrowth and easy access to community NSW Development Corporation, and facilities, services and open space. As a result of the portfolio changes, Hunter Development Corporation. this is our last Annual Report as In our major urban transformation UrbanGrowth NSW. I would like to This move aligns the projects with programs we commenced the process thank the community, government the organisations best positioned to for the $250 million redevelopment and industry stakeholders who have carry them forward on behalf of the of the new Sydney Fish Market at the contributed to the vision, planning and NSW Government. It also reflects the head of Blackwattle Bay, the first step delivery of the organisation’s work. It’s NSW Government’s priorities and in bringing to life the vision for the work that makes a difference - it has a commitments in delivering urban broader Bays Market District. positive impact on our economy while development policy, particularly in We also finalised urban transformation creating exciting urban places for the response to housing affordability. strategies for the Parramatta Road people of NSW. corridor, and the 50 hectares of NSW You can read more on the portfolio Government-owned land between Yours sincerely, separation on Page 36. Central and Erskineville stations. John Brogden AM FY16/17 has therefore been a pivotal These outcomes illustrate deep year for the organisation. As the collaboration across the NSW Chairman Board and Executive Management Government, with local councils, Team have worked extensively on industry and communities, and a the transition, considerable progress combined focus on new housing, new has been made in our residential jobs and sustainable place making. land development and major urban transformation projects. Further, the release of the organisation’s Draft Sustainability Our residential land portfolio continues Strategy reflects an 18-month analysis Landcom’s legacy of achieving housing of global trends and best practice, supply targets on behalf of the NSW embedding world-class standards of Government. We released 1,012 development and liveability into the house lots to the public and enabled a urban places we help create. further 1,150 through superlot sales to developers – amounting to more than Net profit after tax was $168.2 million, 14,193 sites since April 2015, moving and we returned $72.1 million to us closer to achieving our 20,000 the NSW Government in income tax home site target by 31 March 2019. equivalents.
These production levels continue to I would like to thank my fellow position the organisation as one of Directors, and commend former the largest residential developers in Director Bob Hamilton who retired the state. However, our work extends from the Board during the year after six beyond numbers. These sites are years of service to the organisation. In award-winning masterplanned particular, I would like to acknowledge
06 Parramatta Road, Strathfield
07 ANNUAL REPORT 2017
Chief Executive Officer’s review
Our organisation is the vehicle that links the NSW Government’s urban development policy to on-the-ground outcomes. The portfolio separation outlined in the Chairman’s letter will again see the state owned corporation, as Landcom, respond to new policy settings.
The ongoing delivery of sustainable We’re setting the benchmark for embedding world-class standards into urban development is essential in housing diversity close to transport our work. the context of high house prices, and services at Thornton, where the especially for young people, and strong private sector has more than 800 David Pitchford, our former Chief population growth. This is a major NSW dwellings under construction including Executive Officer, established the Government priority. We need therefore residential apartments, affordable UrbanGrowth NSW organisation to build on strategic, collaborative housing, aged care and serviced and advanced seven major urban approaches to create private sector apartments. transformation programs to their development opportunities, while current stage in just three years - a ensuring new sustainable, liveable and Our urban transformation programs testament to his leadership and connected places. require us to collaborate across dedication of staff. I thank David and government on large and complex all our staff for this commitment. The organisation, as Landcom, will programs to bring forward economic continue to secure projects that investment and create new places or Their work lays the foundation to carry take this approach, while actively iconic destinations. In FY16/17, for these projects forward by Landcom, addressing affordability. Developing example, our work to clear the heavy the UrbanGrowth NSW Development a strategy for this re-focused role rail corridor in Newcastle’s city centre Corporation and the Hunter has already commenced. We will use created opportunities to reconnect the Development Corporation, creating our existing strengths and legacy of harbour and attract investment and better communities and outcomes for industry leadership. We will continue new uses. Restoration works at North the people of NSW. to coordinate lead-in infrastructure on Eveleigh and at Parramatta North Yours sincerely, government-owned land and will focus are creating new community spaces on greater diversity and innovative, and uses for important heritage affordable new homes in places with buildings. New residents moved into Barry Mann easy access to public transport, public the Ebsworth building at Green Square Acting Chief Executive Officer facilities and open space. Town Centre. We also assumed the role of master developer of White Bay This work will build on our FY16/17 Power Station on behalf of the NSW achievements. We released more than Government, and appointed lead 2,150 home sites through our sales architects to the redevelopment of The channels, and projects such as Oran Sydney Fish Market. Park, Renwick, Macarthur Heights, Riverstone, and Lachlan’s Line at Within the organisation, we finalised Macquarie Park illustrate our range our housing diversity and sustainability of activities during the year – whether strategies, and continued to implement solving development complexities or and test our public participation and facilitating infrastructure delivery to community engagement framework, support new communities. winning an International Association of Public Participation (IAP2) award for Our social housing renewal our work on The Bays Precinct. programs in Claymore and Airds demonstrate how government We further broadened our academic intervention can create a greater research and partnership programs, socio-economic mix within vibrant and and our Design Directorate is another healthy neighbourhoods. example of our commitment to
08 Terrace houses along promenade, Thornton
09 ANNUAL REPORT 2017 ANNUAL REPORT 2017
Board of Directors
John Brogden AM Jim Betts Chairman, appointed January 2012 Appointed May 2017
Committee appointments: Jim is the CEO of Infrastructure NSW, an independent • Member of Human Resources Committee statutory agency that provides specialist advice to the NSW (effective 1 August 2017) Government on infrastructure investment and prioritisation. Jim joined Infrastructure NSW following five years as the From 2015 to 2017, John was the Managing Director and Secretary of the Victorian Department of Transport and Chief Executive Officer of the Australian Institute of Company four years as Director of Public Transport at the Victorian Directors. Prior to this, he was CEO of the Financial Services Department of Infrastructure. As part of his role at Council from 2009 to 2015, and CEO of Manchester Unity Infrastructure NSW, Jim led the development of more than 80 from 2006 to 2008. recommendations to Government of critical infrastructure for NSW—set out in the State Infrastructure Strategy He is currently Chairman of Lifeline Australia and Furlough Update 2014. House Retirement Village. John is also the patron of Sailability Pittwater, Bilgola Surf Lifesaving Club, Avalon Beach Surf Jim is Chairman of Infrastructure Investor Assurance Lifesaving Club and Kookaburra Kids. Committee, reporting to Cabinet on high profile or high risk projects, while providing oversight of almost 400 projects John’s previous non-executive directorships include Abacus registered in the Infrastructure NSW assurance database. Australian Mutuals (Chairman), BBI – The Australian Institute of Theological Education (Chairman), Sydney Ports Since the establishment of Projects NSW in 2015, Jim Corporation, Australian Private Health Insurance Association has also been responsible for the delivery of several and the Australian Friendly Societies Association. infrastructure priorities, including the $3.4 billion Darling Harbour transformation along with new major projects From 1996 to 2005, John was the Member for Pittwater in including Western Sydney Stadium, Walsh Bay Arts Precinct the NSW Parliament. In 2002, John was elected Leader of the redevelopment and the New Grafton Correctional Centre. Opposition – the youngest person ever to hold the role and lead a major political party in Australia. During his time in Victoria Jim was involved in the delivery of the $38 billion Victorian Transport Plan, the overhaul of John holds a Masters of Public Affairs from the University Victoria’s legislative framework to integrate the planning of of Sydney and is a Fellow of the Australian Institute of transport and land use, and overseeing construction of the Company Directors. $4.3 billion Regional Rail Link project.
10 ANNUAL REPORT 2017 ANNUAL REPORT 2017
Bob Hamilton* Suzanne Jones Appointed February 2011 Appointed June 2016
Robert Hamilton’s career spans more than 50 years in the Committee appointments: property industry. After founding and running Hamilton & Co • Member of Audit and Risk Management Committee Real Estate for more than 10 years, Robert co-founded The (effective 29 August 2016) Mirvac Group in 1972, retiring as Managing Director in 2005. • Chair of Audit and Risk Management Committee Over the course of his career Robert has been involved in a (effective 1 August 2017) number of major urban renewal projects throughout Australia and NSW, including Walsh Bay and the Olympic Village. He Suzanne has held senior executive and non-executive roles has also overseen the development of more than 25,000 involving transport and energy, infrastructure planning and residential dwellings as well as many commercial office delivery, environmental assessment and sustainability, buildings, shopping centres, hotels and industrial complexes. resource and asset management, property development, tourism and vocational education and training. All have Robert is an Advisory Board Member for the Salvation Army involved considerable stakeholder engagement often in highly and advises a number of charitable organisations. He is regulated environments. regularly called on to provide property advice across the development industry. Suzanne is currently the National Chair of Dial Before You Dig, Deputy Chair of ACT’s Suburban Land Agency, University Robert is a qualified real estate valuer, a Fellow of the of New England Partnerships Pty Ltd and Smoke Alarms Australian Property Institute, and a member of the Real Holdings Ltd. She is also a Director and past Founding Chair Estate Institute of Australia. In 2016, Robert was inducted of Waste Aid and a member of the Australian Astronomical into the Property Council of Australia Hall of Fame for his Observatory’s governance committee and the Emissions sustained leadership and the outstanding legacy provided to Reduction Assurance Committee. the property industry and Australian community. Suzanne was previously on the NSW National Parks and * Bob retired from the Board in Dec 2016. Wildlife Council, serving as its chair for four years, and was a Director of TransGrid, Australia’s largest transmission network, for the four years prior to its successful privatisation in December 2015. Suzanne also served as a Director of the NSW Public Transport Authority, Parramatta Rail Link Pty Ltd, the Illawarra Regional Information Service, Newcastle Urban Renewal and Transport and Garrigal Housing.
Suzanne holds a Bachelor of Town Planning (Honours) from the University of NSW, a Masters of Business Administration from the University of Rochester, is a Fellow of the Australian Institute of Company Directors and a Member of the Planning Institute of Australia. Suzanne has undertaken a business leadership course at Harvard and was awarded an international leadership fellowship by the United States government.
11 ANNUAL REPORT 2017
Board of Directors
Prof. Ken Maher Gai McGrath Appointed December 2014 Appointed June 2016
Committee appointments: Committee appointments: • Member of Audit and Risk Management Committee • Chair of Human Resources Committee (until 29 August 2016) (effective 29 August 2016)
Ken is an architect, landscape architect and urban design • Member of Audit and Risk Management Committee advocate. He is a former Executive Chairman of HASSELL, (effective 1 August 2017) Australia’s largest international multidisciplinary design Gai is a professional director who has an extensive practice. Ken is currently a HASSELL Fellow and an Honorary background in highly regulated, largescale businesses over a Professor of Practice in the Faculty of Built Environment at the career spanning 30 years. University of NSW. She spent 12 years at Westpac Banking Group, most recently Ken is President of Australian Sustainable Built Environment leading Westpac Australia’s Retail Banking business. She also Council, and Immediate Past President of Australian Institute led the Retail Banking business for Westpac New Zealand, of Architects. He is Chair of the City of Sydney’s Design and the Customer Service business and Risk Solutions team Advisory Panel and a member of Sydney Opera House for BT Financial Group. Eminent Architects Panel. Ken is a board member of the Royal Australian Institute of Architects Limited, the ACT Urban Prior to joining Westpac, Gai was the General Counsel and Renewal Authority, IBL Limited and the Co-operative Research Company Secretary of Perpetual Ltd. Centre for Low Carbon Living Limited, and was and a founding Gai is a Director of IMB Bank, Genworth Mortgage Insurance board member of the Green Building Council. Australia Ltd and Toyota Finance Australia Limited. She His recognition as a designer is reflected in the numerous chairs the Advisory Board of NEXA Group Pty Ltd. Gai is also awards received for projects he has led. Ken also advises the Deputy Chair of the Council of the State Library of NSW, a governments and speaks on design, sustainability and the Director and Trustee of the State Library of NSW Foundation future of cities throughout Australia and internationally. and a member of The Salvation Army’s Territorial Appeals and Ken holds a Bachelor of Architecture with first-class honours, Fundraising Committee. a Masters of Architecture, and has undertaken post Gai is a graduate of the Australian Institute of Company graduate qualifications in landscape architecture and Directors and has completed the INSEAD Business School environmental studies. International Executive Program. In 2009, Ken was awarded the Australian Institute of She also holds a Masters of Laws (Distinction) from the Architect’s highest accolade, the Gold Medal and 2010 he London School of Economics and Political Science at the received the Australian Award in Landscape Architecture from University of London, and a Bachelor of Laws (Hons) and a the Australian Institute of Landscape Architects. Bachelor of Arts from the University of Sydney.
12 ANNUAL REPORT 2017
Karen Penrose* Matthew Quinn Appointed August 2014 Appointed August 2013
Committee appointments: Committee appointments: • Chair of Audit and Risk Management Committee • Member of Audit and Risk Management Committee (until 31 July 2017) • Member of Human Resources Committee • Member of Human Resources Committee (effective 29 August 2016) (effective 29 August 2016) Matthew was Managing Director of Stockland from 2000 to Karen has more than 30 years business experience across 2013. Matthew is Chairman of Class Limited and Carbonxt finance, property and resources, including 20 years with Group Limited and a non-executive director of CSR Limited Commonwealth Bank and HSBC and eight years as Chief and mPort Ltd. Financial Officer with two publicly listed companies. She was a Council member of Chief Executive Women (CEW) for He is actively involved in education initiatives for six years from 2009 and continues her involvement as a disadvantaged students and is a director of the Australian member of the Advisory Panel for the CEW Leaders Program Business and Community Network Foundation. in Australia and Singapore. Matthew is a Chartered Accountant and a Fellow of the Karen is a full time Non-Executive Director and serves on the Australian Property Institute and the Royal Institute of boards of Bank of Queensland, AWE Limited, Vicinity Centres, Chartered Surveyors. He has a first-class honours degree in Spark Infrastructure Group, Future Generation Global Chemistry and Management Science from Imperial College, Investment Company Limited (pro bono role) and Marshall London. Investments Pty Limited.
She is a former Director of Novion Limited and Silver Chef Limited. Karen holds a Bachelor of Commerce (UNSW), and is Chartered Practising Accountant and Fellow of the Australian Institute of Company Directors.
* Karen retired from the Board in July 2017.
13 ANNUAL REPORT 2017
Executive Management Team
Barry Mann* Mathew Beggs Acting Chief Executive Officer Head of Western Sydney Projects Portfolio
Barry was appointed Acting Chief Executive Officer of Matthew was appointed Head of Western Sydney Projects UrbanGrowth NSW in June 2017. He has oversight of all Portfolio in November 2015, and oversees the organisation’s project operations, business activities and is responsible for greenfield development activities. Matthew has 30 years’ interfacing with Board and Shareholder Ministers. experience in the property and development industry, with experience in the planning and delivery of large development Barry joined UrbanGrowth NSW in November 2016 as Head projects, major property transactions, business development of Projects Portfolio where he was responsible for overseeing and relationship management. the strategy, operations and financial management of The Bays Precinct Sydney and the Western Sydney and CBD Matthew joined UrbanGrowth NSW in 2002 as part of the project portfolios. He was also responsible for supporting the Business Development Team, before moving into Urban CEO with the day-to-day operations of the organisation. Development in 2005 where he worked on the One Minto and Oran Park Town projects. He was appointed General Manager Barry has more than 30 years’ experience managing property Development Retail in 2014. development and construction businesses in the listed, private and government sectors. He has held local and global Prior to working at UrbanGrowth NSW, Matthew was with the executive management roles overseeing operations and Department of Defence for six years, managing rezoning, portfolio delivery for leading Australian property organisations preparation and disposal of major Defence sites in Sydney. including Stockland and Lend Lease. He also spent seven years with Australian Property Group consulting to Australian Government clients for planning Most recently Barry was Director, Property Development and approvals, sales, leasing and acquisitions. Asset Management, for the City of Parramatta responsible for $5 billion of property development activities on council-owned Matthew has a Graduate Diploma in Urban Estate land. Management and a Masters of Project Management.
Barry is a member of the Australian Institute of Company Directors. He has a Bachelor of Engineering (Civil) from UNSW and a Graduate Diploma in Applied Finance and Investment.
* David Pitchford CBE LVO served as Chief Executive Officer until December 2016.
14 ANNUAL REPORT 2017
Michael Brodie Steve Driscoll Chief Financial Officer Head of CBD Projects Portfolio
Michael joined UrbanGrowth NSW in March 2010 as the Steve joined UrbanGrowth NSW in July 2004 and was Chief Financial Officer and manages the finance, risk, IT, appointed Head of CBD Projects Portfolio in September 2016, procurement, and business service functions. Michael is an where he is responsible for overseeing the delivery of several experienced CFO with more than 25 years’ senior financial major projects within the urban transformation portfolio. and commercial experience in investment, aged care and property development organisations. Steve has 25 years’ experience across the property and government sectors, working for state and local government Michael previously held senior finance positions including organisations including Blacktown City Council, the National Manager Property Finance at Woolworths Ltd, DCA Department of Planning and Environment and UrbanGrowth Aged Care and RG Capital. NSW. Steve’s most recent role was as General Manager, UrbanGrowth NSW Development Corporation. He has also Michael is a Graduate Member of the Australian Institute of previously worked in sustainability, project planning and town Company Directors and is a Chartered Accountant. He has a planning roles at a senior management level. Bachelor of Economics and a Graduate Certificate in Financial Planning. Steve has a Bachelor of Town Planning (Honours 1; University Medal) from the University of NSW.
15 ANNUAL REPORT 2017
Executive Management Team
Jillian Khoo Lisa Rippon-Lee General Counsel and Company Secretary Head of Communications and Stakeholder Engagement
Jillian was appointed as General Counsel in January 2015. Lisa joined UrbanGrowth NSW in March 2014 as Head of She is the organisation’s key legal adviser. Corporate Affairs and is responsible for communications, marketing, government relations and stakeholder Jillian has worked across multiple Australian jurisdictions engagement, working to position the organisation as the and a variety of real estate sectors. She has a background lead government agency in the delivery of urban in project-specific financing, development and joint ventures, transformation projects. with expertise managing various internal and external stakeholders including government. Lisa is an experienced communications and corporate marketing professional and has spent more than 25 years in Jillian spent eight years with Australand, most recently as the corporate affairs. National Head of Legal Services for the Residential Division, and previously as the General Manager Legal – Corporate. Lisa has worked in multinational corporations across many She worked at Mallesons Stephen Jacques (now King and industry sectors, stakeholder groups, markets, languages, Wood Mallesons) for nine years, specialising in structured and cultures. Lisa’s previous roles have included senior property finance, capital partnerships and development. positions in communications and corporate affairs at Glencore Xstrata, Lend Lease and The Nielsen Company. Jillian holds a Bachelor of Laws and a Bachelor of Arts (Politics). Lisa is a member of the Australian Institute of Company Directors.
16 “Powerful Owls”, public art sculpture by Ochre Lawson, Lachlan’s Line
17 ANNUAL REPORT 2017 Our organisation
UrbanGrowth NSW, a trading name of Landcom, is a state owned corporation operating under the Landcom Corporation 1 Drive increases in the supply of housing and jobs. Act 2001. Strengthen the NSW economy by delivering Our ambition is to transform city living by creating world- 2 world-class centres that attract investment and class urban areas that are vibrant, connected, competitive boost productivity. and resilient places to live and work. We act as the master developer on complex urban transformation projects, Optimise public investment in infrastructure which contain government-owned land and support critical 3 through integrating land use and transport infrastructure and economic clusters. planning. Operate on a commercially astute basis, seeking a The NSW Government has established five key priorities 4 for UrbanGrowth NSW as it undertakes its tasks through a fair return for taxpayers. Ministerial Statement of Priorities: Promote public sector innovation through 5 collaborating across government, the private sector and the community in the delivery of the portfolio.
18 ANNUAL REPORT 2017
Our portfolio 15 Sydney 16 17 14 Penrith
M2 20 18 M7 Parramatta 19 M4 Sydney CBD 5 1 13 2 3 Maitland Nelson Bay M5 Raymond Terrace
12 Newcastle 1 22 11 M5
11 21 10 Campbelltown 7 8 Newcastle CBD 4 9 1
6
The Bays Precinct CBD Project Portfolio Western Sydney Project Portfolio
1. The Bays Precinct 2. Central to Eveleigh 6. Renwick 17. Sydney Metro Sydney Urban Urban Transformation 7. East Village Northwest Urban Transformation and Transport Program 8. Macarthur Heights Transformation Program 3. Green Square 9. Newbrook Program Town Centre 10. Hillcroft 18. Parramatta North Urban Transformation 4. Newcastle Urban 11. Oran Park Town Transformation Program 12. Edmondson Park and Transport Program 19. The Peninsula 13. Newleaf 5. Parramatta Road Urban 20. Lachlan’s Line 14. Thornton Transformation Program 21. Sanctuary 15. Riverstone 22. Vantage 16. The Ponds
19 OUR ORGANISATION
Our governance structure
NSW GOVERNMENT The Hon Anthony Roberts MP, Portfolio Minister The Hon Dominic Perrottet MP and The Hon Victor Dominello MP, Shareholder Ministers
BOARD OF DIRECTORS Responsible for commercial success of UrbanGrowth NSW Oversees management of UrbanGrowth NSW in best interests of the Shareholder Ministers
Audit and Risk Management Committee Human Resources Committee
Chief Executive Officer and Executive Management Team
Construction, Green Square
20 OUR ORGANISATION
FY16/17 economic and financial highlights $72.1 $168.2 million million Returned to the NSW Government Net profit after tax (tax equivalent payments) $726 2,162 million dwellings Sales revenue released under the 20,000 Home Site Program
21 Highlights of this year’s achievements Performance against operational objectives
Corporate
OBJECTIVE RESULTS
Substantially progress delivery of Supplied 2,162 home sites, which brings our total to 14,193 20,000 home sites by 2019 against the program.
Meet our 2017 sustainability targets We met or outperformed against 10 of thirteen sustainability indicators with measurable targets. Our full sustainability performance is in our 2017 Sustainability Report. We also progressed our 2018 sustainability strategy, and have commenced implementation of our new targets.
Maintain our safety record of zero serious injuries. No reported injuries to UrbanGrowth NSW staff One sub-contractor ‘lost-time’ injury Four sub-contractors incurred ‘medically treated’ injuries See page 46 for more details.
22 Projects
The Bays Precinct Central to Eveleigh/ Green Square Sydney Waterloo OBJECTIVE OBJECTIVE OBJECTIVE Practical completion of Substantially progress the Commence rezoning Ebsworth and secure an White Bay Power Station at Waterloo Study anchor retail tenant for the and Bays Market District Green Square Town Centre. destinations RESULTS • Requirements for State RESULTS RESULTS Significant Precinct (SSP) • Completed construction • Entered the market with rezoning investigation and welcomed new the White Bay Power Station issued in May 2017 residents with official Expression of Interest. • Working with Department opening on 16 May 2017 Assumed the role of of Family and Community • Secured Woolworths as master developer Services to coordinate the anchor retail operator, • Appointed architects to SSP Study process opened 30 May 2017 the redesign of Sydney • Appointed urban designers Fish Market and technical specialists • Appointed urban designer to develop master plan for and engineers (July 2017) to Waterloo SSP the develop a masterplan for the Bays Market District
Parramatta Road Sydney Metro Newcastle Parramatta North Northwest OBJECTIVE OBJECTIVE OBJECTIVE Transfer Parramatta Road OBJECTIVE Commence development Commence heritage to the Greater Sydney Progress the urban works in the Newcastle rail repair works and lodge Commission (GSC) to transformation of corridor development applications commence rezoning. government–owned land for public domain surrounding station precincts RESULTS RESULTS • Planning proposal to RESULTS • Parramatta Road Corridor RESULTS rezone former heavy rail • Lodged development Urban Transformation • Prepared concept plans corridor lodged July 2016 application Strategy adopted by for developable • Completed removal • Commenced heritage government in November government-owned land of the former heavy building repairs 2016, given statutory force along the corridor rail infrastructure and and archaeological through a s117 Ministerial • Signed a project overhead bridges investigations Direction development agreement • Opened new community • City of Parramatta • The Strategy informs the with Transport for NSW space - Market Street adopted the Development relevant District Plans (July 2017) to guide Lawn and commenced Control Plan being prepared by GSC commercial and funding activation program arrangements for urban • Governments at all levels • Agreement between NSW development. now have a part to play in Government, Hunter implementing the Strategy, Development Corporation, with policy direction and UrbanGrowth NSW and administration by the GSC University of Newcastle for inner-city campus expansion of the university
23 HIGHLIGHTS OF THIS YEAR’S ACHIEVEMENTS
Western Sydney Projects Portfolio
Our Western Sydney Projects Portfolio contains projects that create greater choice in housing, community infrastructure and facilities, and economic investment in the right locations. These projects also support the NSW Government’s vision for Western Sydney to drive Greater Sydney and NSW’s productivity.
Making a major Blacktown City Council and various 2,500 new homes near jobs, shops, contribution to the supply agencies, we secured a Subdivision transport and community facilities. of new housing Order from the Minister for Planning. This innovative model allows us Major electrical infrastructure works We progressed or finalised long-term to undertake a masterplanned allowed delivery of 166 lots at Spring land development that commenced subdivision, create new housing supply, Farm and opened access to the final under the Landcom mandate. and return development proceeds 26-lot precinct. We completed civil construction works at the town centre At Thornton, near Penrith, our vision to the owners. It’s a significant breakthrough – not only for the and commenced the final stage of Liz for a broad product offering that Kernohan Drive and the haul road for reflects modern community and development of this area, but for many other ‘paper subdivisions’ in NSW. industrial uses. Dedication of these lifestyle preferences continues to roads in December 2017 will enable come to life. Development partners We finalised the Sanctuary project settlement of the next stage of land for have more than 800 new homes in Fletcher with the sale of 335 lots. 335 lots to AV Jennings. under construction. Housing types Overall, the site provided 855 lots, includes Fonzie flats (studio-style bringing a greater diversity of housing apartments above garages), 21st stock and supply for the Newcastle Century terraces, apartments, as well western growth corridor. as Affordable Housing, aged care and serviced apartments through different At Edmondson Park in Sydney’s providers. southwest, we settled the first tranche of the mixed-use town centre, In the North West Priority Growth mobilising private sector investment in Area, we opened up the opportunity a 45,000m² business district and town to unlock 317 subdivided housing lots square near the rail station. We also from fragmented lands at Riverstone. settled the balance of our South West Working closely with the 51 owners Portfolio site sale to Dahua. Together, in the Riverstone Scheduled Lands, these sales will deliver more than
24 Grand Prix Park, Oran Park Town
25 HIGHLIGHTS OF THIS YEAR’S ACHIEVEMENTS
Partnering with others to transforming communities with new Delivering the infrastructure deliver new places and infrastructure and housing that can and facilities that new community need deliver lasting social benefits and communities need sustained education and employment We continued our work with state outcomes. Lachlan’s Line is well on its way to a agencies to make better use of land new masterplanned community that and financial resources, and partnered We also partnered with Roads and is the gateway to Macquarie Park. We with the private sector to deliver the Maritime Services (RMS) to assist the reached practical completion of the homes and facilities for new places. sale of the remaining lot at Wentworth civil and landscaping works, providing Point by obtaining development necessary lead-in infrastructure In Oran Park, with our project partner approvals for RMS’s maritime facilities. such as roads, services, parks and Greenfields Development Company, Furthermore, we are assisting with a public art to enable the development we finalised the $4 million town park, planning proposal to increase housing of the mixed-use precinct. We also and Camden Council opened its opportunities within the development progressed the engineering design of $40 million administration building. site, which, when completed, will the pedestrian bridge connecting to Nearby, the Department of Education’s feature abundant open space and North Ryde Station, and commenced development application for Oran world-class maritime public domain. works to add another eastbound Park High School responded to our lane between the M2 and Lane Cove masterplan vision, with active edges Creating new National Park on Delhi Road. and integration into the regional neighbourhoods and pedestrian network. The success of places around city-shaping We matched the opening of a new 69-home display village and high the Smart Work Hub at Oran Park also investments continued, where we doubled overall sales activity at Oran Park Town with floor space to provide additional desks, Following agreement of urban renewal new facilities, including the $5 million offices and meeting rooms to meet the principles with Transport for NSW, Grand Prix Park and the town park at growing patronage. preliminary concept plans have been the heart of the town centre. We also prepared for the 64 hectares of commenced work on the $14 million In partnership with Western Sydney developable government-owned land branch library and community resource University at Macarthur Heights, we along the Sydney Metro Northwest centre and lodged a development sold all released lots to market and corridor. We have also worked with application for more than $25 million completed civil works for Stages 1-3 councils and the Department of of community facilities. including two intersections and internal Planning and Environment to inform roadways providing access to the rezoning outcomes of Kellyville, In nearby Edmondson Park, detailed campus and future community. We Bella Vista, Hills Showground and designs for the embellishment of also commenced subdivision work for Cherrybrook Priority Precincts. Further, Mont St Quentin oval commenced. Stage 4, which will supply a further we have progressed place-making This work will upgrade the oval and 342 lots. frameworks and activation strategies playground facilities, and provide a that will create vibrant places around new amenities building. One of our proudest partnerships is each station of the $8.3 billion Sydney At The Ponds in Sydney’s northwest, with Ageing, Disability and Home Care. Metro Northwest. We completed the final 12 of 138 we completed the iconic Ponds group homes, which will be due for In Parramatta North, we invested in Parklands, playing fields, the Lake handover in August 2017. Overall, this critical heritage repair and restoration Neighbourhood Centre and the final $240 million partnership has delivered works, with European and Indigenous public artwork installations. The life-changing accommodation to over archaeological digs bringing the site’s transfer of these assets represents 690 people with a disability. pre-European and early colonial the culmination of almost 10 years history to life. We have also worked of work, resulting in 4,000 new Our work with Land and Housing with Transport for NSW to plan homes on 390 hectares for more Corporation is building on the infrastructure that will connect the site than 12,000 residents. The Ponds success of One Minto. We are now with Westmead Hospital, Parramatta has been recognised in 15 industry renewing former social housing sites CBD and surrounding suburbs through awards and is home to three at Claymore, Airds and Bonnyrigg, the Parramatta Light Rail project. schools, two recreation areas, seven
26 neighbourhood parks, two community archaeological digs and heritage repair personal training, or specific activities hubs and more than four kilometres works. This followed the ‘Sprout’ forum such as the 125th anniversary of the of cycleways. in December 2016, which brought famous match played between the together residents, students, state touring English Cricket Team and the By undergrounding regional high and local government representatives, local Nepean team in 1892. voltage cabling at Renwick, we enabled heritage experts, cultural groups and construction on the final four precincts business leaders to stimulate ideas Our collaboration with the Department of 330 lots, parks and town centre. We about the heritage precinct’s future. of Education produced a specific completed a community playground primary and secondary school syllabus and installed services in preparation In March 2017, we celebrated the for Edmondson Park students studying completion of public spaces at for construction of the community geography and history. This examines Lachlan’s Line with a ‘Lights Up’ centre and village retail centre in 2018. Edmondson Park’s history including twilight event, attended by more than its indigenous heritage, European 1,500 people over two days. The event Bringing people together to settlement and military past. This also featured food trucks, light shows, live celebrate new places examines interesting geological, fauna music and skateboarding exhibitions. We continued programs that bring We also revealed our centrepiece and flora features. This year also saw together local communities to public artwork, Fiorire in Bloom. the unveiling of Caesar the Tracker incorporate their needs and views Dog, a life-like statue at Edmondson into the planning of neighbourhoods, To encourage personal connections Park Station that commemorates the while actively creating or supporting between our residents at Thornton, valour of a local military hero, and community building initiatives. we worked with a community services provides an opportunity for children provider to seed interest-based and the future community to connect For example, our Discovery Day activities. Regular e-newsletter with the area’s military past. at Parramatta North, held in May invitations encourage attendance 2017, gave the public access to at social activities such as yoga and
Discovery Day, Parramatta North
27 HIGHLIGHTS OF THIS YEAR’S ACHIEVEMENTS
CBD Projects Portfolio
These projects create great places near the centre of our cities. They encourage investment and boost the economic influence of major CBDs. While respecting the identity and culture of the local area, the projects deliver different types of housing alongside transport options, and the important day-to-day facilities and amenities that support productive communities.
Revitalising Newcastle’s to generate excitement and vibrancy the iconic former David Jones building city centre for the city centre with an active and sets the scene for the revitalisation program of events. of the historic East End. During the year, UrbanGrowth NSW and Transport for NSW united their work on Also in December, we held an ‘Ideas Collaborating with the Newcastle Urban Transformation festival’ to refine the community’s and Transport Program under the ideas for the Newcastle and Civic communities and across Revitalising Newcastle banner. The station precincts. More than 600 government Program moved through important people participated and generated City shaping programs often require planning and development milestones more than 2,000 ideas, which were years of close working relationships and included community engagement incorporated into a feedback report with communities, local government programs that significantly shifted released in early 2017. and other government agencies. public sentiment. The NSW Premier announced an In November 2016, we finalised The planning proposal to rezone the agreement between the NSW and released the NSW Government- former heavy rail corridor was lodged Government, Hunter Development endorsed Parramatta Road Corridor with Newcastle City Council following Corporation, UrbanGrowth NSW Urban Transformation Strategy, months of reviews and community and the University of Newcastle for reflecting three years of planning, engagement. The proposal moved an inner-city campus expansion. consultation with local communities, through various stages of local and The university has commenced and collaboration with state agencies. state government approvals and is masterplanning and is working with expected to be on public exhibition by the program to manage the design of This 30-year strategy details the plans late 2017. new spaces. More than 20,000m2 will for 27,000 additional homes and attract more than 10,000 students 50,000 extra jobs as well as $198 The program decommissioned all rail and underpin and sustain the city’s million for local urban amenity projects. infrastructure and overhead bridges urban renewal. The strategy will be implemented by of the former heavy rail corridor from the Greater Sydney Commission, other Worth Place to Newcastle Station, The city’s ongoing renewal was further state agencies, and local councils, creating opportunities for new uses. buoyed when UrbanGrowth NSW and and will breathe new life into the In December 2016, we opened The GPT Group took the East End site corridor from Granville in the west to the Market Street Lawn with a free to the market in September 2016. Camperdown in the east. community Summer Fiesta that Sydney developer Iris Capital purchased attracted thousands of people into the the site, and has lodged a Stage One city centre. This new space continues development application that includes
28 After more than two years of planning, During the year, we welcomed a 100-year-old Eveleigh Railway analysis and consultation, we residents into Ebsworth, the first Workshops former uniform shop finalised the Central to Eveleigh Urban residential apartment building. at North Eveleigh. Following Transformation strategy in November Development continued with a further refurbishment works, we have 2016. The Strategy guides the renewal 302 apartments under construction transformed the Clothing Store of 50 hectares of government-owned at the adjoining OVO building. A further into a temporary arts and creative, land along and around the rail corridor 813 apartments are awaiting approval, community-focused facility. Seven over the next 30 years, and will deliver and 379 apartments are in design artists and one architectural studio more homes alongside better public development. have taken up residence in space subsidised for the arts community. We transport, new parks and community The program also advanced its place- also provided opportunities for local facilities. The vision will be realised making activities. A new Woolworths community to engage with art and through a number of linked, but supermarket opened on the ground separate, projects led by different floor of Ebsworth, and is the anchor cultural activities. state agencies. for future retail services. We employed We also commenced works to a Place Manager and Green Travel restore the external facade of the Partnering with the Plan Coordinator to support creative Chief Mechanical Engineer’s Office. private sector to transform place making and activities including The 130-year-old building was the Green Square workshops, community days and command centre for the Eveleigh creative installations. We also opened The $8 billion Green Square Town Railway Workshops. We will decide a temporary community meeting the long-term use of the building Centre is transforming the industrial space, The Social Corner, which after consideration of technical and edge of Sydney’s inner south into a provides a shared meeting space for structural constraints, and ideas from vibrant global village. In partnership residents. the community and other stakeholders. with Mirvac, we are delivering the core sites within the town centre Activating great spaces In our Revitalising Newcastle program, including more than 1,650 residential for the community we lodged a development application apartments, 44,000m2 of office space with council for the restoration and Part of our work involves reimagining and up to 14,000m2 of retail space re-use of the former Signal Box and new uses for spaces and facilities that over the next 10 years. Importantly, landscaping of the surrounding area. build on the cultural identity of a place development contributions include $78 We propose re-using the space and provide valuable amenity. million towards public infrastructure, for commercial use – most likely a $36 million towards Affordable For example, in partnership with café – as well as creating attractive Housing and $5 million towards a Carriageworks, we breathed new landscaping including a water feature, public park. life into the historic Clothing Store, paving, new trees and seating options.
Market St Lawn, Revitalising Newcastle Chief Mechanical Engineers Office, Central to Eveleigh
29 HIGHLIGHTS OF THIS YEAR’S ACHIEVEMENTS
The Bays Precinct Sydney
We continued to lay the groundwork for the transformation of The Bays Precinct. Several studies and a draft strategic framework are underway.
Planning transport options of Blackwattle Bay. Following this industry peak bodies, special interest for the Bays process, we appointed Australian organisations, local businesses, local urban designers FJMT to develop the residents and relevant community Late in 2016, the NSW Government Bays Market District masterplan. groups. announced a new underground metro line to link the Parramatta and Sydney These appointments will help to realise Our engagement with the future CBDs via The Bays Precinct and a the vision for a world-class food and workers, residents and visitors for the number of other growing communities. dining destination on the western side Precinct remained a focus. We held Delivery of this metro link is expected of Sydney Harbour. activities for school and university within the second half of the 2020s. students including excursions, site This will have a significant influence on Transforming White Bay tours, case study workshops and the precinct’s connections. Power Station presentations. We assisted students from the Executive Masters of Technical transport studies are During the year, UrbanGrowth NSW Business Administration program at underway looking into all transport entered into negotiations with Google the University of Technology, Sydney modes to understand the solutions Australia for the transformation with projects that used the White Bay that best service the precinct, including of White Bay Power Station. Early Power Station and the new Sydney Fish pedestrian connections, cycling, bus, access to major transport networks Market as case studies. light rail and ferry improvements, and was critical to Google’s campus upgrades to freight networks. development plans. Due to the timing We continued to work with state of major transport infrastructure agencies in precinct planning activities Creating a new world-class delivery to the Precinct, both parties through different forums including food and dining destination agreed to cease negotiations. The Bays Precinct Design Directorate. on Sydney Harbour We also collaborated with the City of The NSW Government remains Sydney and Inner West Council on the In November 2016, we called for committed to the White Bay Power Active Recreational Needs Study and Registrations of Interest from the Station transformation and its role Social Infrastructure Assessment. world’s best design and engineering as a technology and innovation hub. experts to design a new and iconic Given the iconic nature of the building Our commitment and quality of Sydney Fish Market at the head of and its significance to Sydney, the stakeholder engagement on this Blackwattle Bay. Copenhagen-based NSW Government will continue with a complex program was recognised 3XN Architects was awarded the methodical and considered approach with industry awards by IAP2, the contract out of a field of more than to its redevelopment. International Association for 60 Australian and international Public Participation. design studios. Engaging communities, government and industry In February 2017, we commenced the search for an urban designer We continued to build relationships to work with community and with stakeholders across different stakeholders to prepare a masterplan channels and forums. We held for the Bays Market District – an meetings with The Bays Precinct area encompassing land along Bank Reference Group, which has 41 Street in Pyrmont and the waters member organisations, including
30 Sydney Fish Market, The Bays Precinct
31 HIGHLIGHTS OF THIS YEAR’S ACHIEVEMENTS
Awards
The following programs or projects were honoured with awards or recognised as finalists during FY16/17.
International Association for Public Urban Development Institute of Australia Participation (IAP2) Core Values Awards (UDIA) NSW Awards for Excellence The IAP2 Core Values Awards recognise outstanding The UDIA NSW Awards for Excellence highlight innovation, projects and organisations at the forefront of public sustainability and industry leadership, and recognise participation and community engagement. They excellence in urban development. encourage excellence and innovation in this field. Oran Park Town The Bays Finalist – Excellence in Masterplanned Communities Winner – Planning category (submitted by Landcom and Greenfields Development Company) The Bays Winner – Project of the year Parramatta Road Urban Transformation Strategy Finalist – Excellence in Government Leadership For more information see: (Submitted by UrbanGrowth NSW and consultants) www.iap2.org.au/Awards/2016 -Core-Values-Awards For more information see: www.udiansw.com.au/pages/ awards_excellence
Property Council of Australia National Excellence & Innovation Awards The National Innovation & Excellence Awards is one of the Urban Taskforce | Development Excellence most prestigious property awards programs in Australia, Awards promoting excellence in design and innovation in the built The Urban Taskforce Development Excellence Awards environment since 1982. The Property Council of Australia measure developments across Australia that succeed aims to showcase superior examples of iconic projects in design, economic performance, environmental in property development and investment across a broad commitment and innovation. range of sectors and design disciplines. Oran Park Town Sanctuary Winner – Masterplanned communities (July 2017) Finalist – Best masterplanned community (Submitted by Landcom and Greenfields)
For more information see: For more information see: www.propertycouncilawards.com.au www.urbantaskforce.com.au
32 Bicycle path, Sanctuary
33 HIGHLIGHTS OF THIS YEAR’S ACHIEVEMENTS
Embedding a new sustainability strategy and reporting framework
We released a new Draft Sustainability Strategy for public exhibition after 18 months of extensive research, industry engagement and consultation.
The strategy and its reporting (GRESB) and completing our first Environment Social Governance framework aims for world-class, submission under the ‘Real Estate’ reporting. Performance results are net-positive impacts across social, category. GRESB is an independent announced in September 2017. environmental, economic and and international organisation that For more details on the governance indicators. In the next benchmarks annual sustainability organisation’s sustainability reporting period, Landcom will replace performance of real asset sector performance, view our 2017 its current reporting framework with portfolios and assets in public, private Sustainability Report. this new strategy. and direct sectors worldwide.
We also advanced corporate At time of publication, we understand governance in sustainability reporting UrbanGrowth NSW is the first by becoming members of the Global organisation of its kind to commence Real Estate Sustainability Benchmark this internationally recognised
Parramatta Park, Parramatta North
34 HIGHLIGHTS OF THIS YEAR’S ACHIEVEMENTS
Improving engagement with communities and stakeholders
We developed an engagement framework to build and strengthen a culture of engagement excellence.
The framework includes our Collaborative learning We established a Memorandum of Engagement Charter, which opportunities Understanding with TAFE NSW, (signed expresses our commitment to in September 2017) which formalises a engagement, continued learning We stepped up our efforts to better strategic partnership for innovative and and improvement, and best practice engage young people, particularly collaborative approaches to skills and engagement principles. through our schools and TAFE program, trades training on our project sites. and our landmark Universities We also invested in digital Framework Agreement. Through our University Framework communication to broaden our reach Agreement, we now have in place a and encourage engagement in the In our schools program, we expanded University Roundtable, the University planning process of our projects. For activities to include educational Advisory Group and six core areas example, we developed new project resources and field-based experiential of engagement. These areas include websites that enable stakeholders learning in our projects. We also research, which is operationalised to participate actively in engagement developed strategic relationships through a Communities of Practice processes. We also increased our use with peak educational stakeholders program, industry interface, of video content, and distributed it including Principals Association; specialist scholarly advice, student through social media channels to help Geography Teachers Association; engagement, data sharing and promote and share our activities with History Teachers Association; STEM learning events. more people. Teachers Association; Environmental Education Centre networks and the Department of Education.
Community Consultation, The Bays Precinct
35 Looking ahead to F Y17/18
The Corporation’s transition to Landcom will occur during FY17/18.
The refocused strategic direction Reassigning the portfolio to This new direction recognises responds to our Statement of Priorities, three entities Landcom’s substantial record of issued by the Minister for Planning and accomplishment, particularly since Housing, The Hon Anthony Roberts As highlighted in the Chairman’s letter, corporatisation in 2002. MP, and focuses our activities on UrbanGrowth NSW’s portfolio has been supporting the NSW Government’s reassigned to Landcom, UrbanGrowth UGDC will report to the Premier of housing affordability agenda. NSW Development Corporation NSW. It will focus on complex, large- (UGDC), and the Hunter Development scale urban transformation projects To guide our day-to-day activities, Corporation (HDC). that require a coordinated approach the Board has endorsed a new across multiple agencies. Project organisational strategy, Our Strategic Landcom will continue to function as include The Bays Precinct, Parramatta Directions. This document establishes a state owned corporation, reporting North and Redfern to Eveleigh and nine objectives under the three to the Minister for Planning, and two Waterloo. This work will reflect the NSW strategic directions of Housing, Shareholder Ministers. Its strategic Government’s priorities of job creation, Partnerships and Leadership, and direction will respond to new Statement housing supply, economic growth provides the focus areas over the next of Ministerial Priorities, and activities and sustainability. three to five years. focused on housing, in particular supply, affordability and diversity in The HDC now manages the You can view these objectives at projects underpinned by industry- revitalisation of Newcastle’s city www.landcom.com.au leading sustainability principles. centre and will continue to work with Transport for NSW, Newcastle City Landcom’s portfolio will include Council, the local community and greenfield residential developments, other stakeholders. Green Square Town Centre, Sydney Metro Northwest, Lachlan’s Line, The separation of these projects into Wentworth Point, and projects on the three entities will result in the behalf of NSW Land and Housing decommissioning of the UrbanGrowth Corporation and the Australian NSW brand. Therefore, this will be the Defence Housing Corporation. last Annual Report by Landcom trading as UrbanGrowth NSW.
36 Sourcing new opportunities and the private sector to identify and and increased housing supply that to meet supply housing unlock development opportunities. meets market demand in product supply targets type, location and price. It will do this Responding to moderate through collaboration with industry and UrbanGrowth NSW successfully income housing needs when government at all levels to demonstrate transitioned from housing supply land prices are high proof of concept. This includes through greenfields projects to focus The price of land across NSW, demonstrating different housing on large urban infill and regeneration and Sydney specifically, has risen projects. Consequently, Landcom’s typologies, alternative construction considerably and had a major impact land reserves have decreased. methodologies and housing tenures on affordability for many households. Beyond using our remaining land to address the affordability of housing New approaches to address housing bank to deliver against the 20k in areas well serviced by amenity, affordability, particularly for people home site target by 2019, we will transport and jobs. on moderate incomes or entering the need to establish a new pipeline of market for the first time include the development projects while meeting supply of smart and compact housing. increased housing supply and affordability targets. Landcom will Landcom will increase its industry work with State and Federal agencies leadership to encourage innovation
Housing, Macarthur Heights
37 Corporate activities
Our ambition is to transform city living by creating world-class urban areas that are vibrant, connected, competitive and resilient places to live and work.
Our charter and function Landcom, trading as UrbanGrowth 4. Operate on a commercially astute the interests of the community in NSW, is a state owned corporation basis, seeking a fair return for which we operate operating under the Landcom taxpayers. c. Corporation Act 2001 . to protect the environment by 5. Promote public sector innovation conducting our operations in Our ambition is to transform city through collaborating across compliance with the principles living by creating world-class urban government, the private sector and of ecologically sustainable areas that are vibrant, connected, the community in the delivery of the development contained in section competitive and resilient places portfolio. 6 (2) of the Protection of the to live and work. We act as the Note: The corporation (Landcom), will be issued Environment Administration master developer on complex urban in the period ahead with a new Statement of Act 1991 transformation projects, which contain Ministerial Priorities, which aligns to the new government mandate. d. government-owned land and support to exhibit a sense of responsibility critical infrastructure and economic towards regional development and clusters. Principal objectives decentralisation in the way in which Our principal objectives under the we operate The NSW Government has established Act are: e. five key priorities for UrbanGrowth to undertake, or assist the NSW as it undertakes its tasks through a. to be a successful business and, government in undertaking, a Ministerial Statement of Priorities: to this end: strategic or complex urban development projects 1. Drive increases in the supply of i. to operate at least as efficiently f. housing and jobs. as any comparable businesses, to assist the government in and achieving its urban management 2. Strengthen the NSW economy objectives by delivering world-class centres ii. to maximise the net worth of the g. that attract investment and boost state’s investment in us. to be a responsible developer productivity. of residential, commercial and b. to exhibit a sense of social industrial land. 3. Optimise public investment in responsibility by having regard to infrastructure through integrating land use and transport planning.
38 Board of The gender breakdown for the Board at the start and end of the reporting Directors, meetings period was: and committees 1 July 2016 30 June 2017
Board of Directors Female 43% 43%
Under the Act and the Landcom Male 57% 57% constitution, the Board consists of up to seven Directors. During the Total 100% 100% year, one vacancy was created by the retirement of Robert Hamilton, who had served as a director for five years. The Board’s Charter sets out the duties, independence and ethical standards, and Jim Betts was subsequently appointed expectations of individual Directors, including procedures for declaring conflicts of by the Governor of NSW on the interest. recommendation of the Shareholder The Board determines the composition and membership of its committees. Each Ministers and after consultation with committee sets, reviews and updates its Charter which are reviewed and approved the Portfolio Minister. by the Board. During the reporting period, the Directors were: Board meetings The Board customarily meets each month, and holds additional meetings as required. During FY16/17 the Board met 14 times. Attendance is set out on page 40. • John Brogden AM Chairman Committee meetings To assist the Board in discharging its functions and to allow a more detailed • Robert Hamilton enquiry of areas of finance, risk, audit, human resources and governance, the (retired 7 December 2016) following committees were operational during FY16/17:
• Audit and Risk Management Committee • Jim Betts • Remuneration Committee* (appointed 31 May 2017) • Human Resources Committee.*
• Suzanne Jones Each committee has a clear charter setting out its roles, responsibilities and delegated authority from the Board. The Board Charter and Board Committee Charters are regularly reviewed and updated. • Prof. Ken Maher The membership of each committee is reviewed annually. Directors’ membership of the committees at the end of the reporting period was as follows: • Gai McGrath Audit and Risk Management Committee
• Karen Penrose • Karen Penrose, Chair (retired 31 July 2017) • Prof. Ken Maher (member until 29 August 2016) • Matthew Quinn Matthew Quinn • • Suzanne Jones (member from 29 August 2016)
Remuneration Committee* • All Directors
Human Resources Committee* • Gai McGrath, Chair • Karen Penrose • Matthew Quinn
* The Remuneration Committee was reconstituted and replaced by the Human Resources Committee in March 2017. All Directors were members of the Remuneration Committee and thus eligible to attend the only meeting of that Committee during the reporting period.
39 CORPORATE ACTIVITIES
The below table sets out Director’s attendance at Board and Board Committee meetings for the reporting period.
Audit and Risk Board Management Committee Human Resources Director meetings meetings Committee* meetings A B A B A B John Brogden1 9 10 0 1 Jim Betts2 1 2 0 0 Robert Hamilton3 6 7 0 1 Suzanne Jones 13 14 4 4 0 1 Prof. Ken Maher 12 14 1 1 0 1 Gai McGrath 14 14 2 2 Karen Penrose 13 14 5 5 1 2 Matthew Quinn4 11 13 4 5 1 2
A: Meetings attended, B: Meetings eligible to attend
1Mr Brogden was on an approved leave of absence for four of the 14 Board meetings.
2Mr Betts was appointed to the Board on 31 May 2017.
3Mr Hamilton retired from the Board on 7 December 2016.
4Mr Quinn attended one Board meeting in the capacity of an observer as a result of a brief hiatus between the expiry of his term and his reappointment as a Director.
Measuring performance Staff - performance management system Performance management is a highly collaborative process between an employee We consider ourselves successful if and manager, with a shared accountability for success. we meet our goals as outlined in our Ministerial Statement of Priorities There are three sections to the UrbanGrowth NSW performance management and (see page 38). performance development plan process.
Board - performance review The Board periodically reviews 1. Performance Review its performance to determine The Performance Review process is designed to assess individual performance the extent to which it has met its against agreed KPIs. responsibilities under its Charter and to identify opportunities for improvement. A review may also 2. Key Performance Indicators (KPIs) encompass the performance of the KPIs provide the framework through which employees and managers can identify Board’s committees or of individual and agree on performance objectives going forward. Directors.
The Board approves a process for the 3. Performance Development Plan (PDP) review, which may include its scope, A PDP helps identify key strengths and development opportunities to build on performance measures (qualitative or skills, experience and knowledge. quantitative), and whether to engage an independent consultant to conduct the review. Whilst a formal review has not recently been conducted, the Board plans a formal review of its performance to be undertaken in the next period.
40 Site Visit, Oran Park Town
Risk management Significant improvements have been System, Fraud Control Framework made to the awareness, management and others. Risk management and reporting of risk in key areas of the business such as: Business continuity We are committed to good corporate governance and adopt a methodical • workplace health and safety Our Business Continuity Plan is approach to the process and designed to minimise adverse impacts • projects risks practice of risk management. Our on our staff, stakeholders and risk framework is consistent with • information and communications business operations in the event of a the Australian/New Zealand Risk major incident or crisis. • fraud and corruption prevention. Management Standard AS/ NZS Our Business Continuity Framework ISO 31000:2009 and embodies The risk management framework also is regularly reviewed to improve the business principles approach to provides for appropriate processes processes and ensure that we have the corporate objectives. to govern, review and audit our risks. resources and capability to respond Our risk management framework These include: to an event that could disrupt or threaten our business. Our Framework aims to provide clarity on our appetite • regular risk reviews by the full Board identifies critical business processes and limits for business risk, raise risk and the Audit and Risk Management and scenarios that could disrupt our awareness throughout the organisation Committee of the Board and provide the framework, business, and includes business policies and procedures required to • an internal audit program continuity recovery plans and periodic successfully manage the risks inherent supported by reviews by testing of recovery plans. with our business. independent certifiers Insurance To ensure our risk management • reviews of our business partners The NSW Treasury Managed Fund process continues to work effectively capacity and ability to meet their provides our insurance cover. This and creates value, we: obligations. Depending on the role of those partners these reviews may fund is based on the principles • ensure the Board, Chief Executive include financial capacity, safety of self-insurance, and prioritises Officer, Executive Management and risk management abilities, the implementation of sound risk Team and all staff have made a compliance with Government management practice. The self- commitment to risk management procurement guidelines and other insurance scheme is administered measures as appropriate. by GIO General for risks relating • continuously enhance the to motor vehicle, property, public integration of risk management The Board’s Audit and Risk liability and director/officer liability. processes within our business Management Committee consists of Workers Compensation Insurance is processes non-executive Directors and is attended administered by Allianz Australia under • assign risk management by management representatives as well the Treasury Managed Fund. as independent experts and observers. responsibilities within the We completed our FY17/18 Renewal organisation The Committee regularly considers risk matters arising from internal and Declarations for the Treasury Managed review our risk management external audits as well as independent Fund in December 2016 and all framework to continually improve our assessments of performance against policies have been renewed for the processes and ensure they provide key risk management systems such as current policy period. We are currently clear, consistent methodology, Work Health and Safety Management renewing policies for the upcoming reporting and auditing tools. System, Environmental Management policy period.
41 CORPORATE ACTIVITIES
Public access to Section 41 of the GIPA Act. Three -- some of the information was applications were withdrawn at the not held information and applicants’ request. the protection of privacy -- some of the information was The processing period in the GIPA Act already publicly available Government Information allowed for three applications received in FY15/16 to be carried into FY16/17. -- there was a conclusive (Public Access) (GIPA) – presumption of overriding public Formal access applications The processing period also allowed for two applications received in FY16/17 interest considerations against During the reporting period, we to be extended into FY17/18. disclosure (as listed in Schedule received 12 valid formal access 1 of the GIPA Act) applications under the Government In FY16/17, nine applications were decided as follows: -- there were overriding public Information (Public Access) Act 2009 interest considerations against (GIPA Act). One invalid application • Two applications were granted in full. disclosure of some of the received in FY16/17 became valid in information (as listed in the FY17/18, after the applicant complied • Seven applications were partly Section 14 GIPA Act Table). with the formal requirements under refused because:
The following tables contain statistical information about the formal access applications received in FY16/17.
Table A | Number of applications by type of applicant and outcome Refuse to confirm/ Access Access Access Information Information Refuse to deny Application granted in granted in refused in not held already deal with whether withdrawn full part full available application information is held Media 0 0 0 0 0 0 0 0
Members of Parliament 2 0 1 1 0 0 0 3
Private sector business 0 1 0 0 0 0 0 0
Not for profit organisations or 0 1 0 1 1 0 0 0 community groups
Members of the public (application by legal 3 2 1 1 1 0 0 0 representative)
Members of the public 0 2 0 0 1 0 0 0 (other)
Table B | Number of applications by type of application and outcome Personal information 0 0 0 0 0 0 0 0 applications Access applications 5 6 2 3 3 0 0 3 (other than personal information applications) Access applications 0 0 0 0 0 0 0 0 that are partly personal information applications and partly other
42 Table C | Invalid applications
Number of Reason for invalidity: applications Application does not comply with formal requirements (section 41 of the GIPA Act) 1 Application is for excluded information of the agency (section 43 of the GIPA Act) 0 Application contravenes restraint order (section 110 of the GIPA Act) 0 Total number of invalid applications received 1 Invalid applications that subsequently became valid applications 1
Table D | Conclusive presumption of overriding public interest against disclosure: matters listed in Schedule 1 of the GIPA Act
Number of times consideration used Overriding secrecy laws 0 Cabinet information 2 Executive Council information 0 Contempt 0 Legal professional privilege 1 Excluded information 0 Documents affecting law enforcement and public safety 0 Transport safety 0 Adoption 0 Care and protection of children 0 Ministerial code of conduct 0 Aboriginal and environmental heritage 0
Table E | Other public interest considerations against disclosure: matters listed in table to section 14 of the GIPA Act
Number of occasions when application not successful Responsible and effective government 5 Law enforcement and security 0 Individual rights, judicial processes and natural justice 5 Business interests of agencies and other persons 4 Environment, culture, economy and general matters 2 Secrecy provisions 0 Exempt documents under interstate Freedom of Information legislation 0
Table F | Timelines
Number of applications Decided within the statutory timeframe (20 days plus any extensions) 9 Decided after 35 days (by agreement with applicant) 0 Not decided within time (deemed refusal) 0 Total 9
43 CORPORATE ACTIVITIES
Table G | Number of applications reviewed under Part 5 of the GIPA Act (by type of review and outcome)
Decision Decision varied upheld Internal review 0 0 Review by Information Commissioner 0 0 Internal review following recommendation under section 93 of GIPA Act 0 0 Review by NSW Civil and Administrative Tribunal 0 1 Total 0 1
Table H | Applications for review under Part 5 of the GIPA Act (by type of applicant) Number of applications for review Applications by access applicants 1 Applications by persons to whom information the subject of access application relates (see 0 section 54 of the GIPA Act)
Authorised Proactive Release During the year, UrbanGrowth NSW: Where we can, we share our knowledge freely within government, of Information Under S.7 (3) • considered the formal access of GIPA Act 2009 throughout the development industry applications received and among interested members of the Under section 7 of the GIPA Act, • considered the informal public. We have adopted this practice agencies must identify the kind of applications received as an effective way to build and government information that can be maintain credibility. Our decision to made publicly available at least every • determined that there were no share our intellectual property is also 12 months. particular additional categories an effective way for us to demonstrate of information that were being UrbanGrowth NSW’s program for and influence change. regularly or repeatedly requested in the proactive release of information the formal applications We will review this requirement for involves regularly updating the proactive release of information within UrbanGrowth NSW website, the • reviewed and consulted with staff the next 12 months. Landcom website and individual about information and categories project websites to provide information of information that are frequently regarding policies, projects and requested or which have been initiatives. We also consider publishing proactively released in FY16/17 information about the community consultations we undertake and other • undertook further consultation commonly requested categories of through team meetings, GIPA information and the impact, if any, of briefings and updates proactively releasing this information. • discussed with the Right to Information Officers of other State owned corporations the categories of information they proactively release.
44 Privacy • PRINCIPLE 4 (S.11 PPIP Act) • PRINCIPLE 11 (S.18 PPIP Act) Other requirements relating to Limits on disclosure of personal We are committed to ensuring that individual privacy is protected and our collection of personal information information activities comply with the Privacy and • PRINCIPLE 5 (S.12 PPIP Act) • PRINCIPLE 12 (S.19 PPIP Act) Personal Information Protection Act Retention and security of personal Special restrictions on disclosure of 1998 (NSW) (PPIP Act) and the Privacy information personal information. Amendment (Private Sector) Act 2000 (Commonwealth). • PRINCIPLE 6 (S.13 PPIP Act) Information about personal Our privacy management plan is There were no complaints about the based on 12 information protection information held by agencies use of personal information during the reporting year. principles of the PPIP Act, which • PRINCIPLE 7 (S.14 PPIP Act) establish standards for using personal Access to personal information Our Right to Information Officer and information. These are: held by agencies Privacy Coordinator can be contacted • PRINCIPLE 1 (S.8 PPIP Act) in writing: • PRINCIPLE 8 (S.15 PPIP Act) Collection of personal information Alteration of personal information for lawful purposes The Right to Information Officer and Privacy Coordinator • PRINCIPLE 9 (S.16 PPIP Act) • PRINCIPLE 2 (S.9 PPIP Act) UrbanGrowth NSW Agency must check accuracy of Collection of personal information PO Box 237 directly from the individual personal information before use Parramatta NSW 2124 • PRINCIPLE 3 (S.10 PPIP Act) • PRINCIPLE 10 (S.17 PPIP Act) or by emailing: Requirements when collecting Limits on use of personal [email protected] personal information information or [email protected]
Public Interest Disclosures Act 1994 The following table contains information about our obligations under Section 31 of the Public Interest Disclosures Act (PID Act).
Section 31 Report Made by public officials performing their day to Under a statutory or All other PIDs day functions other legal obligation
Number of public officials making a public interest disclosure 0 0 0 Number of public interest disclosures we received relating to: 0 0 0 Corrupt conduct 0 0 0 Maladministration 0 0 0 Serious and substantial waste of public money 0 0 0 Government information contraventions 0 0 0 Local government pecuniary interest contraventions 0 0 0 Total 0 0 0 Number of public interest disclosures we finalised 0 Whether we have a public interest disclosures policy in place Yes
Action taken by us to ensure that our Management training by the NSW Ombudsman, portfolio & staff staff awareness responsibilities under briefings, inductions and team meetings, intranet notices introducing s 6E(1)(b) of the PID Act have been met UrbanGrowth NSW’s updated PID & Internal Reporting Policy
45 CORPORATE ACTIVITIES
Legal events Thornton North Penrith No. the end of every day to the people and 3 Pty Limited v Landcom things that are important to us. Lachlan’s Line – defending a Supreme Court Proceedings We recognise that everyone at review of a GIPA Act decision On 15 May 2017, Thornton North UrbanGrowth NSW plays a part in sought by Meriton Penrith No. 3 Pty Limited (TNP) filed creating a safety culture that actively identifies and manages risks. The On 5 April 2016, Meriton filed an Supreme Court proceedings against health and safety of employees, application at the NSW Civil & UrbanGrowth NSW. TNP alleges that contractors or members of the public Administrative Tribunal, seeking a UrbanGrowth NSW breached an should never be compromised. We review of UrbanGrowth NSW’s GIPA obligation under a contract for sale hold ourselves to account for our Act decision. On 7 March 2017, which required UrbanGrowth NSW actions and respectfully challenge Senior Member Montgomery handed to install sewer lines within the road others if safety standards and down his decision, which affirmed reserve adjacent to land purchased behaviours are not being maintained. UrbanGrowth NSW’s original GIPA by TNP from UrbanGrowth NSW at the Thornton estate in North Penrith. The Act decision that the public interest To this end, during the reporting period proceedings are ongoing. considerations against disclosure the WHS Committee and Executive of the information outweighed the Management team strengthened our considerations in favour of disclosure Legislative Changes commitment to WHS by: and that the information should not be On 15 March 2017, the Administrative released. Arrangements (Administration of • updating the WHS Policy and Acts—Amendment No 1) Order 2017 Procedures Hunter Development reallocated UrbanGrowth NSW • delivering new WHS training Corporation v Save Our Rail Development Corporation to the • implementing a new incident Court of Appeal Proceedings administration of the Premier. As a reporting system result, UrbanGrowth NSW is being In December 2014, UrbanGrowth • improving risk management through separated into two entities, Landcom NSW facilitated Hunter Development revised processes and tools and UrbanGrowth NSW Development Corporation’s (HDC) participation • launching our Health + Employee Corporation. and funded the cost of litigation Wellness Program after proceedings were commenced The separation is designed to refocus • adding additional resources to against Transport for NSW and HDC and better align each organisation so expand the capability of our WHS by the Save Our Rail group against they can deliver on their core business team. the closure of part of the Newcastle on behalf of the NSW Government. During the reporting period, heavy rail line. Save our Rail sought The separation of UrbanGrowth NSW UrbanGrowth NSW did not have any to challenge the NSW Government’s into Landcom, which will continue prosecutions under Workplace Health authority to remove heavy rail to function as a State owned and Safety Act 2011 or NSW WHS infrastructure between Newcastle and corporation, and UrbanGrowth NSW Regulations 2011. There were no Wickham without an Act of Parliament. Development Corporation, is expected reported injuries to any UrbanGrowth to be finalised in 2017/18. After the Supreme Court ruled that the NSW employees during the reporting NSW Government needed to pass an In addition, legislative changes period. Act of Parliament, Transport for NSW have impacted on UrbanGrowth The following injuries were reported and HDC appealed, with the Court of NSW conveyancing practices, such by contractors undertaking works on Appeal handing down its judgement as new unfair contracts laws, tax UrbanGrowth NSW sites: on 10 November 2015 in favour requirements for land transactions of Transport for NSW and the NSW with foreign residents and identity • One Lost time Injury (three days) Government parties, and ordering verification rules. In the light of these from a cut to a finger from a Save Our Rail to pay Government changes, UrbanGrowth NSW reviewed hacksaw costs. its conveyancing documentation and • Four Medically Treated Injuries: practices and made required changes Save Our Rail subsequently filed a -- Hairline fracture to an ankle when to ensure compliance and best motion in the High Court to have the material collapsed in a trench practice. Court of Appeal Decision set aside. -- Crush injury to a hand when On 15 June 2017, judgment for the caught between pre-cast High Court special leave application Work health and safety concrete panels was handed down with Save Our -- Cut on the lower leg from Rail’s special leave application being UrbanGrowth NSW’s approach to Work protruding steel that required dismissed with costs. Health and Safety (WHS) is about eight stitches caring for others and ourselves so that -- Removal of a foreign body we can be productive, healthy and from eye. safe. This means we all go home at
46 Lights Up Festival, Lachlan’s Line
47 CORPORATE ACTIVITIES
Multicultural policies and the development and marketing/ Over the past year, program sales phases of projects. We facilitators contacted more than services program communicate with the community 1,500 households in eight new Ethnic affairs priorities statement through our Community Welcome and housing developments. One Minto, Development Programs and through Edmondson Park and Potts Hill The NSW Government recognises and stakeholder engagement programs. developments have high proportions values the different linguistic, religious, of CALD residents. Our initiatives to racial and ethnic backgrounds of Our Community Welcome program assist community members and bring all the people in NSW and requires provides services and welcome visits different community groups together agencies, including UrbanGrowth to the homes of customers who move included culturally themed welcome NSW, to prepare Ethnic Affairs into our developments. Welcome kits events, Harmony Day events, culturally Priorities Statements to recognise provided to new residents include appropriate catering and employing multiculturalism. information about local culturally staff from CALD backgrounds. and linguistically diverse (CALD) Our Ethnic Affairs Priorities are organisations, services for CALD Harmony Day events were held in delivered through community residents and information on how to March 2017 as part of our programs in consultation before and during access free interpreter services. Penrith, Bankstown and Campbelltown.
Ethnic Affairs Initiative Key Result Area Strategies/ Tasks Responsibility Develop and Social Justice Provide consultation Head of Corporate Affairs implement stakeholder [1.9 Planning for Cultural opportunities at project consultation plans. Diversity] planning stages, via Welcome Programs or Community Development activities. Provide information Social Justice Review current marketing and Head of Corporate Affairs about interpretive [1.7 Access to Interpreters and sales material for appropriate and translation Translators] information. services in all relevant UrbanGrowth NSW marketing and sales material. Use ABS Census data Social Justice Arrange for access to Head of Corporate Affairs to identify languages [1.7 Access to interpreters and interpretive and translation spoken by emerging translators] services at Community communities in Development and Community UrbanGrowth NSW Engagement events and projects. activities. CALD community based Social Justice Facilitate information sessions Head of Corporate Affairs organisations actively [1.9 Planning for Cultural prior to the expressions encouraged to tender Diversity] of interest process (EOI), for UrbanGrowth NSW outlining the role and benefit Welcome Programs in of UrbanGrowth NSW Welcome new estates. Programs. Identify strategies to Social Justice Undertake consultation Head of Corporate Affairs increase participation [1.9 Planning for Cultural with CALD residents in by CALD residents in Diversity] established UrbanGrowth NSW UrbanGrowth NSW communities. Welcome Programs. Develop strategic Community Harmony Invite CALD organisations Head of Corporate Affairs partnerships with CALD [2.1 Community Development] to submit proposals for community based Community Development organisations for initiatives in UrbanGrowth NSW delivery of Community estates. Development initiatives in UrbanGrowth NSW estates.
48 These celebrated each community’s Consultation Workbook suggests ways identified through market research as diversity and multiculturalism. to engage members of ethnic minority potential purchasers. groups, including the provision of To better inform these activities, we interpreters and written translation We select staff on merit and advocate survey new residents to capture basic services. for the principles of cultural diversity. In demographic information and obtain addition, our staff training incorporates feedback on our sales and marketing We prepare promotional materials and cross-cultural components. Over processes. The survey asks residents engagement activities for residential the next two years, we will continue for information on their country of birth developments that include information to implement and review our to help us prepare future sales and about the availability of interpreter performance against our Ethnic Affairs marketing campaigns and community and translation services. We display Priorities Statement. development programs. posters detailing the Department of Immigration and Multicultural Affairs’ Our communications and stakeholder translating and interpreting services engagement staff provide guidance in sales offices. Where appropriate, to project teams on community marketing campaigns for individual engagement. Our Stakeholder projects target specific CALD groups
Resources/ Budget Performance Indicators Report FY16/17 Goals for FY17/18 Division budget 100% of projects 100% of current projects 100% of current projects implemented community to report on implemented consultation activities community consultation activities Marketing budget Review completed Translating and interpreting Provide references to (timeliness) services information translation and interpreting provided in all sales offices. services in marketing and Interpreters used for specific community information. community meetings Project budgets Annual review of ABS census Census and project Initiate a minimum of one data (timeliness) survey data reviewed for Community Development UrbanGrowth NSW projects project or event in each to identify major CALD Welcome Program that Communities addresses the needs and interests of identified CALD groups Project budgets Number of CALD community A CALD community based Encourage CALD community based organisations organisation (Macarthur based organisations to tender submitting EOIs for the Diversity Services Inc) is for delivery of UrbanGrowth delivery of new Welcome delivering UrbanGrowth NSW NSW Welcome Programs in Programs Welcome Programs at Minto projects with anticipated high and Macarthur Heights percentage of CALD residents Marketing and/or project Consultation undertaken Harmony Day and cultural Plan and deliver specific budgets with CALD residents and activities delivered in initiatives for CALD families strategies included in project UrbanGrowth NSW projects and young people in Welcome based community activities with a high percentage of and Community Development (timeliness) CALD families and young programs people (Minto, Potts Hill and Edmondson Park) Division budget Partnerships established and Macarthur Diversity Services Continue to develop maintained Inc delivered a range of partnerships that enable Community Development Community Development initiatives (playgroups, programs to better address environmental education the needs of CALD residents etc) in UrbanGrowth NSW in UrbanGrowth NSW Minto and Macarthur Heights communities projects
49 CORPORATE ACTIVITIES
Workforce diversity performance
Workforce diversity • In March 2017 we launched Health+ Employee Wellness Program providing a rage of tools, resources and In FY16/17, we undertook the following initiatives: services. The program currently consists of: • We held 11 Leadership courses with 31 attendees -- Employee Assistance Program including 26 Senior Managers completing the Foundations of Directorship Program with the Australian -- Fitness Passport Institute of Company Directors (AICD). This program focused on governance, finance, strategy and risk. -- Free annual flu shots
• We held 32 Professional Development workshops with -- Health+ Lunchtime Series (topics included Healthy 329 attendees with new programs focused on project Lifestyles and Building Resilience) management capability and building stakeholder -- Work|Life Links. relationships. The 2016 Graduate Program launched in February 2016 • Change Management training to assist with our has resulted in six of the seven graduates being offered organisational transition was offered to both staff and employment as Development Assistants. The graduates managers. Seven courses were held with 71 attendees. developed critical capabilities, practical experience, appropriate behaviours and leadership insight, and built an in-depth understanding of the organisational operations. The program was updated to involve three rotations over an 18-month period, across a number of projects.
Trends in the Representation of Workforce Diversity Groups Workforce Diversity Group Benchmark 2015 2016 2017 Women 50% 47.3% 48.8% 50.8% Aboriginal and/or Torres Strait Islander People 3.3% 0.0% 0.0% 0.0% People whose First Language Spoken as a Child was not English 23.2% 17.9% 20.2% 20.2% People with a Disability N/A 2.9% 2.4% 2.4% People with a Disability Requiring Work-Related Adjustment N/A 0.5% 0.4% 0.4%
Note 1: The benchmark of 50% for representation of women across the not provide information about first language, but does provide information sector is intended to reflect the gender composition of the NSW community. about country of birth. The benchmark of 23.2% is the percentage of the NSW general population born in a country where English is not the Note 2: The NSW Public Sector Aboriginal Employment Strategy 2014 – 17 predominant language. introduced an aspirational target of 1.8% by 2021 for each of the sector’s salary bands. If the aspirational target of 1.8% is achieved in salary bands Note 4: Work is underway to improve the reporting of disability information not currently at or above 1.8%, the cumulative representation of Aboriginal in the sector to enable comparisons with population data. For this reason, employees in the sector is expected to reach 3.3%. no benchmark has been provided for People with a Disability or for People with a Disability Requiring Work-Related Adjustment. Note 3: A benchmark from the Australian Bureau of Statistics (ABS) Census of Population and Housing has been included for People whose First Language Spoken as a Child was not English. The ABS Census does
50 Addressing discrimination in the workforce New employees are required to sign an acknowledgement form which accompanies the Code to confirm that they understand UrbanGrowth NSW does not tolerate discrimination in the our ethics standards. Existing employees are asked to reaffirm workplace. We have the following measures in place to their understanding of the Code on each and every occasion educate staff and address issues. they log into UrbanGrowth NSW’s IT systems, and also • Refresher Equal Employment Opportunity Awareness/ whenever amendments are made to the Code of Conduct. Harassment and Bullying Prevention training was rolled out across the organisation with 14 sessions held for Implementing our values managers and staff with 213 attendees. To deliver our important mandate of creating great • All new employees are inducted on their first day on destinations that will transform Sydney, NSW and Australia, matters relating to employment conditions, workplace we have maintained a strong and cohesive working practices and policies which include fair treatment, environment where we treat each other with respect and grievance procedures, anti-bullying and harassment. hold each other to the highest standards. This is all part of our culture of excellence that is built on our core values of • Our policies and procedures provide clear guidelines for a ‘Visionary’, ‘Courageous’, ‘Collaborative’ and ‘Accountable’. discrimination-free environment.
• Staff surveys are conducted to enable open and honest Compliments and complaints feedback system feedback on topics including discrimination. We welcome feedback from stakeholders and have policies and procedures in place to guide staff on their responsibilities • An employee assistance program is in place to provide if a compliment or complaint is made. staff with external support and advice if required. We also provide advice to our customers and stakeholders on • Any issues raised by staff are considered as a matter of how to submit feedback and the procedures we follow if they priority and appropriate action is taken. choose to submit it. NSW Government Action Plan for Women Senior management reviews complaints to determine if there is cause to implement corrective or preventative action. Most We have met the objectives of NSW Government’s Action Plan compliments and complaints are dealt with within seven days for Women by: During the year, we updated our policies and procedures, and • combining our Personal and Professional Lives introduced a new complaint management system, and regular Successfully program was piloted with our project reporting to the Board. We received 20 complaints and 19 communications teams. It was held over a six month compliments. period with monthly topics tailored specifically to support working parents in our organisation. FY16/17 Complaints Register • ensuring flexible working arrangements including job share, working from home, inter-office work locations and Category of complaint Complaints part time employment. Building and construction 8 • promoting achievements via the performance General customer service 4 management process, reward and recognition program Marketing/sales 4 and internal communications. Environment 3 Community events/site visits 1 Our guarantee of service Total 20
Code of Conduct FY16/17 Compliments Register UrbanGrowth NSW places paramount importance on integrity, Category of compliment Compliments probity and the promotion of a positive and responsive Building and construction attitude. The Code of Conduct supports these values and is issued with the full support of the UrbanGrowth NSW General customer service 7 Board and the Chief Executive Officer. The Code of Conduct Marketing/sales provides an ethical framework for the way in which we Environment conduct our business and contains a set of general business Community events/site visits 12 ethics. It applies to all staff members, directors, contractors, consultants and agency staff engaged by UrbanGrowth NSW. Total 19
51 CORPORATE ACTIVITIES
Procedures for shareholder and employee Executive positions consultation and feedback Total remuneration for senior executives is calculated as the We have procedures for our Portfolio and Shareholder sum of the cost of employment, including contributions to a Ministers to provide recommendations, feedback or direction superannuation scheme by UrbanGrowth NSW and novated to the Board and senior management. The Portfolio Minister lease payments for a motor vehicle, where such an option has provides a statement of priorities for the Board which the been exercised. The Chief Executive Officer’s performance is Board considers in preparing the corporate plan. Members reviewed on a half yearly basis by the Chairman, who reports of senior management meet with the Portfolio Minister the outcome of his review to the Remuneration Committee. regularly to discuss progress against corporate objectives and The Chief Executive Officer reviews the performance of each Shareholder Ministers are also invited to discuss corporate of the Executive Management Team on a half-yearly basis performance. with the findings from the annual review reported to the All Division Heads and General Managers hold regular Human Resources Committee. meetings to discuss issues with their staff. Significant issues 9.50% of UrbanGrowth NSW employee related expenditure in 2017 was are reported to the Chief Executive Officer monthly by each related to senior executives, compared with 10.96 % in 2016. Division Head or General Manager. Any matters arising that require the Board’s attention are reported by the Chief Executive Officer in his regular update, which is a standing agenda item for every scheduled Board meeting.
Band 2017 2016 Female Male Female Male Band 4 (Secretary) 0 1 0 1 Band 3 (Deputy Secretary) 3 3 2 5 Band 2 (Executive Director) 0 0 1 1 Band 1 (Director) 0 0 0 0 Totals 3 4 3 7 7 10
Band Range Average Remuneration 2017 2016 $ $ $ Band 4 (Secretary) 452,251 – 522,500 500,000 546,326 Band 3 (Deputy Secretary) 320,901 – 452,250 397,304 382,558 Band 2 (Executive Director) 255,051 – 320,900 0 304,681 Band 1 (Director) 178,850 – 255,050 0 0
Board Remuneration
Audit & Risk Green Major Management Square Design Projects HR Board Salary Committee PCG Directorate Committee Committee Super Total $ $ $ $ $ $ $ $ John Brogden 68,764 - - - - - 6,352 75,116 Jim Betts 0 ------0 Robert Hamiliton 17,347 - 8,739 8,739 1,192 - 3,422 39,440 Suzanne Jones 40,629 3,658 - - 2,674 - 4,461 51,422 Ken Maher 39,564 669 - 24,914 1,780 - 6,358 73,286 Gai McGrath 40,629 - - - - 5,372 4,370 50,372 Karen Penrose 51,469 6,133 - - - 3,576 5,811 66,989 Matthew Quinn 39,564 4,246 - - - 3,576 4,502 51,887
52 Miscellaneous activities
Promotion Production cost of Annual Report During the reporting period our promotional activities The Annual Report FY15/16 was produced inhouse to increased awareness and encouraged public participation minimise costs. The total cost of production is estimated at that informs our projects. Activities to encourage public approximately $4,000. participation included: • social media and website updates Consultancies • online newsletters We spent $408,000 in the reporting period on consultants. These engagements assisted decision making for our • advertising including print, online, outdoor and radio sustainability framework, risk management, WHS, business • pop-up stalls at markets, shopping centres and railway separation and corporate strategy. stations • direct emails Overseas visits • letterbox drops and direct mail One staff member travelled to Copenhagen, Denmark from • advertising in foreign language newspapers 23 October to 4 November 2016 as part of The Royal Danish • engagement opportunities promoted at public and Consulate of Sydney ‘Urban Transformation Delegation’ stakeholder meetings. representing delegates from Sydney and Auckland. Additional meetings and site visits to discuss Major Urban Promotion was also undertaken to support the sale of land, Transformation Projects included London, Rotterdam and including: Barcelona. The cost was approximately $9,300. • maintaining, creating and enhancing websites advertising Another staff member undertook overseas travel at an • fact sheets, information booklets and other print collateral. approximate cost of $8,000. This related to a speaking role in Funds granted to non-government Toronto, Canada for the Big City Big Ideas Lecture at Toronto community organisations University on 20 October 2017 followed by a speaking role at the Urban Land Institute Global Conference in Dallas, Texas The organisation has in place a corporate sponsorship policy from 24 to 27 October 2016. and annual program of activities. However, there were no unconditional grants, gifts, donations made to organisations All travel was approved in accordance with the UrbanGrowth outside of the program. NSW Travel and Business Expenses Policy.
Discovering Parramatta North Open Day, Parramatta North
53 CORPORATE ACTIVITIES
Disclosure of approved exemptions Following corporatisation on 1 January 2002, approval was granted for reporting exemptions relevant to this Annual Report (shown in the table below). The exemptions, some with conditions attached, were approved by NSW Treasury to overcome concerns about the loss of commercial confidentiality for statutory state owned corporations.
Statutory Requirements
Act/Regulation Annual reporting exemptions references Comments
Budgets: s.7(1) (a) (iii) • Detailed budget for the year in review Annual Reports • Outline budget for next year (Statutory Bodies) Act • Particulars of material adjustments to detailed budget 1984 • for the year in review. cl. 7 Annual Reports (Statutory Bodies) Regulation 2015
Report of operations
Summary review of operations: Schedule 1 Exemption subject to a condition • Narrative summary of significant operations Annual Reports that comments and information relating to the “summary review of • Selected financial and other quantitative information (Statutory Bodies) operations” are to be disclosed in associated with the administration of programs or Regulation 2015 a summarised form. operations. Management and activities: Schedule 1 Exemption subject to a condition • Nature and range of activities Annual Reports that comments and information relating to “management and • Measures and indicators of performance (Statutory Bodies) activities” are to be disclosed in a • Internal and external performance reviews Regulation 2015 summarised form. • Benefits from management and strategy reviews • Management improvement plans and achievements • Major problems and issues • Major works in progress, cost to date, estimated dates of completion and cost overruns • Reasons for significant delays etc to major works or programs.
Research and development: • completed research including resources allocated • continuing research and development activities, including resources allocated unless that information could adversely affect operations.
Human resources: Schedule 1 • Number of employees by category and comparison to prior Annual Reports three years (Statutory Bodies) • Exceptional movements in employee wages, salaries or Regulation 2015 allowances • Personnel policies and practices • Industrial relations policies and practices.
Consultants: Schedule 1 Exemption subject to a condition • For each engagement costing more than $50,000: Annual Reports that the total amount spent on consultants is to be disclosed -- name of consultant (Statutory Bodies) along with a summary of the main -- title of project Regulation 2015 purposes of the engagements. -- actual cost. • For each engagement costing less than $50,000: -- total number of engagements -- total cost. • If applicable, a statement that no consultants were engaged.
54 Statutory Requirements
Act/Regulation Annual reporting exemptions references Comments Land disposal: Schedule 1 • Properties disposed of during the year: Annual Reports -- total number (Statutory Bodies) -- total value Regulation 2015 • If value greater than $5 million and not by public auction or tender: -- list of properties -- for each case, name of person who acquired the property and proceeds from disposal. • Details of family or business connections between the purchaser and the person responsible for approving the disposal • Statement giving reasons for the disposal • Purpose/s for which proceeds were used • Statement indicating that access to the documents relating to the disposal can be obtained under the Government Information (Public Access) Act 2009.
Consumer responses: Schedule 1 Exemption subject to a condition • Extent and main features of complaints Annual Reports that comments and information relating to “consumer responses” • Services improved/changed in response to complaints/ (Statutory Bodies) are to be disclosed in a suggestions. Regulation 2015 summarised form.
Payment of accounts: Schedule 1 This exemption only applies to • Performance in paying accounts, including action to improve Annual Reports statutory state-owned corporations payment performance. as they are not subject to the (Statutory Bodies) payment of accounts provisions Regulation 2015 in s.15 of the Public Finance and Audit Regulation.
Time for payment of accounts: Schedule 1 As above. • Reasons for late payment Annual Reports • Interest paid due to late payments. (Statutory Bodies) Regulation 2015
Report on risk management and insurance activities Schedule 1 Exemption subject to a condition Annual Reports that the comments and information are to be disclosed in (Statutory Bodies) a summarised form. Regulation 2015
Disclosure of controlled entities: Schedule 1 Exemption subject to a condition • Details of names, objectives, operations, activities of Annual Reports that the names of the controlled controlled entities and measures of performance. entities be disclosed along with a (Statutory Bodies) summary of the controlled entities’ Regulation 2015 objectives, operations, activities and measures of performance.
Investment performance Schedule 1 Annual Reports (Statutory Bodies) Regulation 2015
Liability management performance Schedule 1 Annual Reports (Statutory Bodies) Regulation 2015
55 Financial Statements
For the year ending 30 June 2017
56 57 FINANCIAL STATEMENTS
58 59
FINANCIAL STATEMENTS Statement of Comprehensive Income FOR YEAR ENDED 30 JUN 2017 0 0
Continuing Discontinuing Total 0 0 Operations Operations $’000 $’000 $’000 $’000 $’000 Notes 2017 2016 2017 2016 2017 2016
Sales revenue 2(a) 726,006 658,065 - - 726,006 658,065 Current Assets Cost of sales (438,989) (344,634) - - (438,989) (344,634) 0 Gross Profit 287,017 313,431 - - 287,017 313,431 0
Other revenue 2(b) 46,005 9,651 8,418 6,072 54,423 15,723 Finance income 2(c) 12,197 7,713 - - 12,197 7,713 0 Marketing and selling expenses 3 (4,921) (6,283) - - (4,921) (6,283) 0 Employee related expenses 4 (25,404) (26,757) - - (25,404) (26,757) Non-Current Assets Other operating expenses 5 (33,711) (30,443) (46,665) (40,741) (80,376) (71,184) 0 Depreciation and amortisation 0 0 6 (1,864) (1,168) - - (1,864) (1,168) expense Finance costs 7 (558) (1,142) - - (558) (1,142) 0 Profit/(loss) on sale of property, (254) 11 - - (254) 11 plant and equipment 0 Profit/(loss) before income tax 278,507 265,013 (38,247) (34,669) 240,260 230,344 equivalent expense Income tax equivalent expense 8 (83,553) (79,504) 11,474 10,400 (72,079) (69,104) 0 0 0 Net profit/(loss) for the year 194,954 185,509 (26,773) (24,269) 168,181 161,240 Other comprehensive income Current Liabilities Items that will not be reclassified 0 0 to profit or loss Superannuation actuarial 0 gain/(losses) on defined benefit 19 6,032 (6,681) - - 6,032 (6,681) plans Income tax on items that will not 0 0 0 (1,810) 2,004 - - (1,810) 2,004 be reclassified to profit or loss Total items that will not be 4,222 (4,677) - - 4,222 (4,677) reclassified to profit or loss Non-Current Liabilities
0 Other comprehensive income for 4,222 (4,677) - - 4,222 (4,677) the year (net of tax) Total comprehensive 199,176 180,832 (26,773) (24,269) 172,403 156,563 0 income/(loss) for the year
The above Statement of Comprehensive Income is to be read in conjunction with the attached notes to the financial statements. 0
0 0
The above Statement of Financial Position is to be read in conjunction with the attached notes to the financial statements.
3 4
60
0 0
0 0 $’000 $’000 Current Assets 0 0 0 0 Non-Current Assets 0 0 0 0 0 0 0 0
Current Liabilities 0 0 0 0 0 0 Non-Current Liabilities 0 0 0
0 0
The above Statement of Financial Position is to be read in conjunction with the attached notes to the financial statements.
4
61 UrbanGrowth NSW is a trading name of Landcom.
FINANCIAL STATEMENTS 0 0
Total $’000 $’000 $’000 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 00 0
0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0
The above Statement of Cash Flows is to be read in conjunction with the attached notes to the financial statements.
5
62
tat t o a t 0 0 T 0 0
o t t ta Total $’000 Total t $’000 $’000 a tal a 0 0 0 0 0 0 $’000 $’000 $’000
ala a at l 0 0 0 0 0
o t o t a 0 0 0 0 0 t o o 0 0 0 0 0 0 a at o a t a al a lo o t la 0 0 o ta lat to o o t o ot o o 0 0 0 0 00 0 Total ot o o Total o o o t a 0 0 ala a at 0 0 0 0 0 0 0 0 ala a at l 0 00 0 0 o t o t a 0 0
t o o a at o a t a al a lo o t la 0 0 o ta lat to o o t o ot o o 00 00 Total ot o o 0 0 Total o o o t a 0 0 ala a at 0 0 0 0 The above Statement of Changes in Equity is to be read in conjunction with the attached notes to the financial statements. 0 0
The above Statement of Cash Flows is to be read in conjunction with the attached notes to the financial statements.
5 6
63 UrbanGrowth NSW is a trading name of Landcom. FINANCIAL STATEMENTS otes to and formin part of the Financial tatements 0 0 F T D D
F G F C T CC T G P C (continued)
00 Landcom Corporation Act 2001 1.4 Expenditure Recognition peratin e penses are e pensed in the year in which they are incurred Government’s Commercial Policy Framework and is a for 1.5 Employee Benefits 0 0 0 ll lia ilities for employee enefits are fully provided for in accordance with mployee enefits refer to ote mployee enefits applica le to r anGrowth are shown elow Salaries and annual leave ia ilities for salaries and annual leave includin non monetary enefits that are due to e settled within months after the end of the period in which the employee renders the service are reco nised and measured in respect of employees services up to the reportin date at undiscounted nominal amounts ased on the amounts e pected to e paid when the lia ilities are settled mployees are e pected to settle annual leave within twelve months and as such no present value measurement is re uired 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Non-vesting sick leave 1.1 Basis of Preparation nused non vestin sick leave does not ive rise to a lia ility as it is not considered pro a le that sick leave taken in the future will e reater than the enefits accrued in any reportin period • State Owned Corporations Act 1989 Long service leave • compliance with relevant Treasurer’s Directions on service leave is measured at present value in accordance with mployee enefits for all employees with or • more years of service Consideration is iven to certain factors ased on actuarial review every three years includin e pected future wa e and salary levels e perience of employee departures and periods of service pected future payments are • Public Finance and Audit Act 1983 Public Finance and Audit Regulation 2015 discounted usin Commonwealth overnment ond rate at the reportin date shorthand approached is adopted to update for the followin two years This is in accordance with TC ccountin for on ervice eave and nnual eave Superannuation Pillar dministration advises r anGrowth of the level of lia ility for r anGrowth ’s defined enefit superannuation commitments to its employees who are mem ers of the various divisions of the scheme The calculation of the superannuation position is ased on actuarial reviews independent of r anGrowth ’s ongoing activities and involvement. The main drivers of the actuarial calculations are the level of investment return salary inflation and CP increases r anGrowth has an o li ation for the defined enefit contri ution which ecomes paya le on and after retirement of staff 1.2 Statement of Compliance Contri ution is made to the tate uperannuation cheme the tate uthorities uperannuation cheme and the tate uthorities on Contri utory uperannuation cheme C The SAS Trustee Corporation through the fund’s actuary has determined that unfunded superannuation contri utions as at une for the C and was estimated at million million mounts representin prepaid superannuation contri utions are reco nised as an asset mounts representin unfunded superannuation are reco nised as a lia ility ctuarial ains and losses are reco nised immediately as other Comprehensive 1.3 Revenue Recognition ncome outside profit or loss in the year in which they occur
r anGrowth contri utes defined contri ution to the First tate uperannuation cheme a defined contri ution scheme as well as other private schemes to a lesser e tent The amount reco nised as an e pense in profit or loss as part of employee related e penses is million million efer also note Termination payments Termination enefits are paya le when employment is terminated efore the normal retirement date or when an employee accepts voluntary redundancy in e chan e for these enefits Termination enefits are reco nised at the earlier of the followin dates a when r anGrowth can no lon er withdraw the offer of those enefits and AASB 117 Leases when r anGrowth reco nises costs for a restructurin that is within the scope of and involves the payment of terminations enefits n the case of an offer made to encoura e voluntary redundancy the termination enefits are measured ased on the num er of employees e pected to accept the offer enefits fallin due more than months after the end of the reportin period are discounted to present value lia ility
64 7 8
otes to and formin part of the Financial tatements F T D D
F G F C T CC T G P C (continued)
1.4 Expenditure Recognition peratin e penses are e pensed in the year in which they are incurred
1.5 Employee Benefits ll lia ilities for employee enefits are fully provided for in accordance with mployee enefits refer to ote mployee enefits applica le to r anGrowth are shown elow
Salaries and annual leave ia ilities for salaries and annual leave includin non monetary enefits that are due to e settled within months after the end of the period in which the employee renders the service are reco nised and measured in respect of employees services up to the reportin date at undiscounted nominal amounts ased on the amounts e pected to e paid when the lia ilities are settled mployees are e pected to settle annual leave within twelve months and as such no present value measurement is re uired
Non-vesting sick leave nused non vestin sick leave does not ive rise to a lia ility as it is not considered pro a le that sick leave taken in the future will e reater than the enefits accrued in any reportin period
Long service leave on service leave is measured at present value in accordance with mployee enefits for all employees with or more years of service Consideration is iven to certain factors ased on actuarial review every three years includin e pected future wa e and salary levels e perience of employee departures and periods of service pected future payments are discounted usin Commonwealth overnment ond rate at the reportin date shorthand approached is adopted to update for the followin two years This is in accordance with TC ccountin for on ervice eave and nnual eave
Superannuation Pillar dministration advises r anGrowth of the level of lia ility for r anGrowth ’s defined enefit superannuation commitments to its employees who are mem ers of the various divisions of the scheme The calculation of the superannuation position is ased on actuarial reviews independent of r anGrowth ’s ongoing activities and involvement. The main drivers of the actuarial calculations are the level of investment return salary inflation and CP increases r anGrowth has an o li ation for the defined enefit contri ution which ecomes paya le on and after retirement of staff Contri ution is made to the tate uperannuation cheme the tate uthorities uperannuation cheme and the tate uthorities on Contri utory uperannuation cheme C The SAS Trustee Corporation through the fund’s actuary has determined that unfunded superannuation contri utions as at une for the C and was estimated at million million mounts representin prepaid superannuation contri utions are reco nised as an asset mounts representin unfunded superannuation are reco nised as a lia ility ctuarial ains and losses are reco nised immediately as other Comprehensive ncome outside profit or loss in the year in which they occur
r anGrowth contri utes defined contri ution to the First tate uperannuation cheme a defined contri ution scheme as well as other private schemes to a lesser e tent The amount reco nised as an e pense in profit or loss as part of employee related e penses is million million efer also note
Termination payments Termination enefits are paya le when employment is terminated efore the normal retirement date or when an employee accepts voluntary redundancy in e chan e for these enefits Termination enefits are reco nised at the earlier of the followin dates a when r anGrowth can no lon er withdraw the offer of those enefits and when r anGrowth reco nises costs for a restructurin that is within the scope of and involves the payment of terminations enefits n the case of an offer made to encoura e voluntary redundancy the termination enefits are measured ased on the num er of employees e pected to accept the offer enefits fallin due more than months after the end of the reportin period are discounted to present value lia ility
65 UrbanGrowth NSW is a trading name of Landcom.8
FINANCIAL STATEMENTS otes to and formin part of the Financial tatements F T D D
F G F C T CC T G P C (continued)
Payroll on-costs The outstandin amounts of payroll tax, workers’ compensation, insurance premiums and fringe benefits tax, which are conse uential to employment are reco nised as lia ilities and e penses where the employee enefits to which they relate to have een reco nised
1.6 Insurance r anGrowth carries a comprehensive ran e of insurances coverin property pu lic lia ility motor vehicles and other contin encies throu h the Treasury ana ed Fund of self insurance for Government a encies The e pense premium is determined y the Fund ana er ase on past claim e perience These insurance policies are reviewed annually to ensure that they are ade uate and were current at une o ma or claims e ist under these policies at une
1.7 Leases peratin lease payments where the lessor effectively retains su stantially all of the risks and enefits of ownership of leased items are reco nised as an e pense on a strai ht line asis over the lease term e cept where another systematic asis is more representative of the time pattern in which economic enefits from the leased assets are consumed The cost of improvement to or on leasehold property is capitalised and disclosed as leasehold improvements ease incentives under a non cancella le operatin lease like a rent free period is reco nised as an asset as a lessor leasehold ri ht and as a lia ility as a lessee lease incentive easehold ri ht asset is amortised to rental e pense on a strai ht line asis over the term of the lease ease incentive lia ility is reduced y allocatin lease rental payments etween rental e penses and reduction of the lia ility at the e innin of the lease payment period until the end of the lease term r anGrowth has operatin leases in place in respect of its premises in ydney C D Parramatta re ional office in ewcastle and sales offices at various locations within ew outh ales There are no contin ent rentals paya le in respect of these leases and the terms of renewal are etween month and years after lease terms e pire
1.8 Capitalisation of Expenses - Development Costs and Cost of Sales r anGrowth char es all direct e penditure on development works to relevant pro ects ther administrative overhead is initially char ed to and disclosed in the tatement of Comprehensive ncome when it is incurred ome salary char es and related e penses are su se uently capitalised to pro ects to ether with other administrative overheads mployee e penses incurred in respect of development and sales activities are capitalised to inventory when incurred refer to notes and
1.9 Income Tax Equivalent Expense r anGrowth is su ect to notional ta ation in accordance with the tate wned Corporation ct From uly ta ation lia ility has een assessed accordin to the ational Ta uivalent e ime of the Treasury which proposes as far as practical the adoption of the relevant Commonwealth ta le islation as the asis for determinin ta ation lia ility Ta effect accountin has also een adopted from uly
Current tax Current ta is calculated y reference to the amount of income ta es paya le or recovera le in respect of the ta a le profit or ta loss for the year t is calculated usin ta rates and ta laws that have een enacted or su stantively enacted y reportin date Current ta for current and prior years is reco nised as a lia ility or asset to the e tent that it is unpaid or refunda le
Deferred tax Deferred ta is accounted for all temporary differences Temporary differences are differences etween the ta ase of an asset or lia ility and its carryin amount in the tatement of Financial Position The ta ase of an asset or lia ility is the amount attri uted to that asset or lia ility for ta purposes n principle deferred ta lia ilities are reco nised for all ta a le temporary differences Deferred ta assets are reco nised to the e tent that it is pro a le that sufficient ta a le amounts will e availa le a ainst which deducti le temporary differences or unused ta losses and ta offsets can e utilised owever deferred ta assets and lia ilities are not reco nised if the temporary
66 9
otes to and forming part of the inancial tatements
(continued)
Deferred tax (continued) differences gi ing rise to them arise from the initial recognition of assets and liabilities other than as a result of a business combination which affects neither taxable income nor accounting profit eferred tax assets and liabilities are measured at the tax rates that are expected to apply to the year s when the asset and liability gi ing rise to them are realised or settled, based on tax rates and tax laws that ha e been enacted or substanti ely enacted by reporting date he measurement of deferred tax liabilities and assets reflects the tax conse uences that would follow from the manner in which the company expects, at the reporting date, to reco er or settle the carrying amount of its assets and liabilities eferred tax assets and liabilities are offset when they relate to income taxes le ied by the same taxation authority and the company intends to settle its current tax assets and liabilities on a net basis
Current and deferred tax for the year urrent and deferred tax is recognised as an expense or income in the tatement of omprehensi e ncome, except when it relates to items credited or debited directly to e uity, in which case the deferred tax is also recognised directly in e uity ll deferred tax assets liabilities are classified as non current in the tatement of inancial osition as these are expected to be settled after more than months
1.10 Dividends to the NSW Treasury
n accordance with the inancial istribution olicy for o ernment usiness and ection of tate wned orporations ct , rban rowth di idend recommendation for financial year is il
1.11 Goods and Services Tax e enues, expenses and assets are recognised net of the amount of goods and ser ices tax except i where the amount of incurred is not reco erable from the ustralian axation ffice , it is recognised as part of the cost of ac uisition of an asset or as part of an item of expense ii for recei ables and payables which are recognised inclusi e of he net amount of reco erable from or payable to the is included as part of recei ables or payables ash flows are included in the tatement of ash lows on a gross basis he components of cash flows arising from in esting and financing acti ities that are reco erable from, or payable to, the are classified as operating cash flows
1.12 Cash and Cash Equivalents ash comprises cash on hand and demand deposits ash e ui alents are short term, highly li uid in estments that are readily con ertible to known amounts of cash, which are sub ect to an insignificant risk of changes in alue
1.13 Trade and Other Receivables rade and other recei ables are non deri ati e financial assets with fixed or determinable payments that are not uoted in an acti e market hese financial assets are recognised initially at fair alue, usually based on the transaction cost or face alue ubse uent measurement is at amortised cost using the effecti e interest method, less an allowance for any impairment of recei ables ny changes are accounted for in the tatement of omprehensi e ncome when impaired, derecognised, or through the amortisation process hort term recei ables with no stated interest rate are measured at transaction cost or face alue nterest is charged on o erdue settlement monies where agreed settlement dates are not met he rate of interest applied aried during the year and is currently ales are made on arying terms, but generally on a day exchange and day settlement basis
67 UrbanGrowth NSW is a trading name of Landcom.10
FINANCIAL STATEMENTS otes to and forming part otes to and forming part of the inancial tatements of the inancial tatements
(continued) (continued)
1.14 Other Current Assets 1.19 Intangible Assets ther current assets represent prepayment of expenditure which is recognised on a cost basis hese amounts are recognised rban rowth recognises intangible assets only if it is probable that future economic benefits will flow to the entity and the in the tatement of omprehensi e ncome on a straight line basis except where another systematic basis is more representati e cost of the asset can be measured reliably ntangible assets are measured initially at cost here an asset is ac uired at no or of the time pattern in which economic benefits from the prepayments are consumed nominal cost, the cost is its fair alue as at the date of ac uisition ubse uently, as there is no acti e market for rban rowth NSW’s intangible assets, the assets are at cost less any accumulated amortisation and impairment losses where an indicator of impairment exists 1.15 Inventories - Land Classification ll research costs are expensed e elopment costs are only capitalised when certain criteria are met n entories comprise unde eloped land, work in progress and de eloped land nde eloped land with medium to long term de elopment potential is classified as a non current asset and is classified as work in progress while it is under de elopment, he useful li es of intangible assets are assessed to be finite he amortisation period and the amortisation method for an that is, from the time contracts are signed for work to proceed intangible asset with a finite useful life are re iewed at least at the end of each reporting period e eloped land is land which has been subdi ided and registered on completion of all de elopment acti ity e eloped land and omputer software costs licences and website costs are treated as intangible assets he useful li es of these intangible work in progress that are expected to be sold within the next months are classified as current and the balance is classified as assets are estimated as finite and the straight line method o er a period of to years is utilised non current s the process of de elopment progresses, land pro ects are reclassified from unde eloped land to work in progress, then, on completion, to de eloped land for sale 1.20 Recoverable Amount of Assets rban rowth expenses costs associated with pursuing de elopment opportunities and capitalise these cost when appropriate appro als are obtained here there is a likelihood that the pro ect will not progress then capitalised costs are written rban rowth assesses whether there is any indication that an asset may be impaired at each reporting period here an off and recognised as an expense in the tatement of omprehensi e ncome indicator of impairment exists, rban rowth makes a formal estimate of reco erable amount here the carrying amount of an asset exceeds its reco erable amount, the asset is considered impaired and is written down to its reco erable amount eco erable amount is the greater of fair alue less costs to sell and alue in use 1.16 Inventories - Land Valuation ll land is alued at the lower of cost and net realisable alue ost includes ac uisition, de elopment and capitalised o erhead 1.21 Trade and Other Payables et realisable alue is 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 ll trade payables are recognised for amounts due to be paid in the future for goods or ser ices recei ed, whether or not in oiced ayables are recognised initially at fair alue, usually based on transactional cost or face alue ubse uent measurement is at rban rowth re iews its in entory balances periodically and writes off in entory where the net realisable alue is less than amortised cost using the effecti e interest rate method hort term payables are measured at the original in oice amount where the carrying amount in the accounts based on the latest forecast hen the circumstances that pre iously caused in entories to the effect of discounting is immaterial be written down below cost no longer exist due to change in economic circumstances, the amount of the write back is credited in the tatement of omprehensi e ncome limited to the amount of the original write down so that the new carrying amount is the mounts owing to suppliers are settled in accordance with the policy set out in the reasurer s irections f trade terms are not lower of the cost and the re ised net realisable alue specified, payment is made no later than the end of the month following the month in which an in oice is recei ed he reasurer s irections allow the inister to award interest for late payment rban rowth also holds monies in trust paid by prospecti e buyers of land, as either holding deposits or on exchange of 1.17 Leasehold Improvements contracts pending settlement easehold impro ements are alued at cost and amortised on a straight line basis o er the unexpired period of the lease term or nearned income is reported as a current liability within trade and other payables in the tatement of inancial osition he the assets useful life, whiche er is shorter balance relates to ad ances recei ed from pro ect partners rban rowth is entitled to recognise re enue when the obligations under the pro ect agreements are fulfilled 1.18 Property, Plant and Equipment lant and e uipment are recorded at the cost of ac uisition, plus ma or reno ation or impro ement costs, if any, and are shown 1.22 Borrowings at cost less accumulated depreciation and impairment epreciation on all plant and e uipment is calculated on the basis of the ll borrowings are recorded at face alue net of any premium or discounts oans are not held for trading and are recognised at useful life of the asset to rban rowth using the straight line method he written down alue of plant and e uipment as amortised cost using the effecti e interest method remiums and discounts are amortised o er the life of the borrowings and at une approximates fair alue charged to the tatement of omprehensi e ncome orrowing costs are recognised as an expense when incurred ains and he following estimated useful li es are used in the calculation of depreciation for ma or items for and losses are recognised in the tatement of omprehensi e ncome when the liabilities are derecognised as well as through the amortisation process omputer e uipment to years ffice e uipment to years otor ehicles years 1.23 Financial Instruments Impairment: he carrying alues of plant and e uipment are re iewed for impairment when e ents or changes in inancial instruments gi e rise to positions that are a financial asset of either rban rowth or its counterparts and a financial circumstances indicate the carrying alue may not be reco erable liability or e uity instrument of the other party or rban rowth , these include cash assets, recei ables, payables and borrowings nformation is disclosed in ote , in respect of the credit risk and interest rate risk of financial instruments ll such amounts are carried at net fair alue unless otherwise stated Financial assets are classified into the following specified categories: financial assets ‘at fair value through profit or loss’, and
‘loans and receivables’. The classification depends on the nature and purpose of the financial assets and is determined at the time of initial recognition
68 11 12
otes to and forming part of the inancial tatements
(continued)
1.19 Intangible Assets rban rowth recognises intangible assets only if it is probable that future economic benefits will flow to the entity and the cost of the asset can be measured reliably ntangible assets are measured initially at cost here an asset is ac uired at no or nominal cost, the cost is its fair alue as at the date of ac uisition ubse uently, as there is no acti e market for rban rowth NSW’s intangible assets, the assets are at cost less any accumulated amortisation and impairment losses where an indicator of impairment exists ll research costs are expensed e elopment costs are only capitalised when certain criteria are met he useful li es of intangible assets are assessed to be finite he amortisation period and the amortisation method for an intangible asset with a finite useful life are re iewed at least at the end of each reporting period omputer software costs licences and website costs are treated as intangible assets he useful li es of these intangible assets are estimated as finite and the straight line method o er a period of to years is utilised
1.20 Recoverable Amount of Assets rban rowth assesses whether there is any indication that an asset may be impaired at each reporting period here an indicator of impairment exists, rban rowth makes a formal estimate of reco erable amount here the carrying amount of an asset exceeds its reco erable amount, the asset is considered impaired and is written down to its reco erable amount eco erable amount is the greater of fair alue less costs to sell and alue in use
1.21 Trade and Other Payables ll trade payables are recognised for amounts due to be paid in the future for goods or ser ices recei ed, whether or not in oiced ayables are recognised initially at fair alue, usually based on transactional cost or face alue ubse uent measurement is at amortised cost using the effecti e interest rate method hort term payables are measured at the original in oice amount where the effect of discounting is immaterial mounts owing to suppliers are settled in accordance with the policy set out in the reasurer s irections f trade terms are not specified, payment is made no later than the end of the month following the month in which an in oice is recei ed he reasurer s irections allow the inister to award interest for late payment rban rowth also holds monies in trust paid by prospecti e buyers of land, as either holding deposits or on exchange of contracts pending settlement nearned income is reported as a current liability within trade and other payables in the tatement of inancial osition he balance relates to ad ances recei ed from pro ect partners rban rowth is entitled to recognise re enue when the obligations under the pro ect agreements are fulfilled
1.22 Borrowings ll borrowings are recorded at face alue net of any premium or discounts oans are not held for trading and are recognised at amortised cost using the effecti e interest method remiums and discounts are amortised o er the life of the borrowings and charged to the tatement of omprehensi e ncome orrowing costs are recognised as an expense when incurred ains and losses are recognised in the tatement of omprehensi e ncome when the liabilities are derecognised as well as through the amortisation process
1.23 Financial Instruments inancial instruments gi e rise to positions that are a financial asset of either rban rowth or its counterparts and a financial liability or e uity instrument of the other party or rban rowth , these include cash assets, recei ables, payables and borrowings nformation is disclosed in ote , in respect of the credit risk and interest rate risk of financial instruments ll such amounts are carried at net fair alue unless otherwise stated Financial assets are classified into the following specified categories: financial assets ‘at fair value through profit or loss’, and ‘loans and receivables’. The classification depends on the nature and purpose of the financial assets and is determined at the time of initial recognition
69 UrbanGrowth NSW is a trading name of Landcom.12
FINANCIAL STATEMENTS Notes to and forming part otes to and forming art of the Financial Statements of the inancial tatements F T N N
S F S N F NT NT N S (continued) L (continued)
1.23 Financial Instruments (continued) 1.24 Provisions (continued) rovision for rebates is recognised hen a lot is sold. s art of the conditions of sale rban ro th may be committed to Loans and receivables ma e a ayment to the urchaser rovided certain design criteria are met and a lied for ithin a s ecified eriod by the Trade receivables, loans, and other receivables that have fi ed or determinable payments that are not uoted in an active mar et urchaser usually bet een months. his ayment re resents reimbursement for additional costs incurred by the are classified as ‘loans and receivables’. Loans and receivables are measured at amortised cost using the effective interest urchaser in com lying ith the design criteria set by rban ro th . rban ro th recognises of claims in the method less impairment. rovision based on the claims rocessed this amount is considered to be immaterial and therefore no discount is re uired. nterest income is recognised by applying the effective interest rate. 1.25 Joint Arrangements Impairment of financial assets nder oint rrangements investments in oint arrangements are classified as either oint o erations or oint ventures. Financial assets, other than those at fair value through profit or loss, are assessed for indicators of impairment at each reporting he classification de ends on the contractual rights and obligations of each investor rather than the legal structure of the oint date. Financial assets are impaired where there is ob ective evidence that as a result of one or more events that occurred after arrangement. the initial recognition of the financial asset the estimated future cash flows of the investment have been impacted. Joint operations For financial assets carried at amortised cost, the amount of the impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the original effective interest rate. rban ro th has oint o erations and therefore recognises its direct right to the assets liabilities revenues and e enses of oint o erations and its share of any ointly held or incurred assets liabilities revenues and e enses. hese have been The carrying amount of financial assets including uncollectible trade receivables is reduced by the impairment loss through the incor orated in the financial statements under the a ro riate headings. etails of the oint o erations are set out in note . use of an allowance account. Subse uent recoveries of amounts previously written off are credited against the allowance account. hanges in the carrying amount of the allowance account are recognised in profit or loss. 1.26 Assets and liabilities attributable to a disposal group held for distribution and discontinued operations Derecognition of financial assets ssets and liabilities held for distribution are measured at the lo er of carrying amount and fair value less costs to distribute if rban rowth NSW derecognises a financial asset only when the contractual rights to the cash flows from the asset e pire, or it their carrying amount ill be recovered rinci ally through a distribution to the shareholder instead of use. transfers the financial asset and substantially all the ris s and rewards of ownership of the asset to another entity. f rban rowth NSW neither transfers nor retains substantially all the ris s and rewards of ownership and continues to control the transferred hese assets and liabilities must be available for immediate distribution and distribution must be highly robable. asset, rban rowth NSW recognises its retained interest in the asset and an associated liability for amounts it may have to pay. f rban rowth NSW retains substantially all the ris s and rewards of ownership of a transferred financial asset, rban rowth iscontinued o erations are e cluded from the results of continuing o erations and are resented as a single amount of rofit or loss after ta from discontinued o erations in the tatement of om rehensive ncome. etails of discontinued o erations are NSW continues to recognise the financial asset and also recognises a collateralised borrowing for the proceeds received. set out in note . Financial liabilities Financial liabilities, including borrowings, are initially measured at fair value, net of transaction costs. They are subse uently 1.27 Changes in accounting policy, including new or revised Australian Accounting Standards measured at amortised cost using the effective interest method, with interest e pense recognised on an effective yield basis. The (i) Effective Accounting Standards/Interpretations issued but not yet effective effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest e pense over the relevant period. The effective interest rate is the rate that e actly discounts estimated future cash payments through the t the date of authorisation of the financial statements the tandards and nter retations listed belo ere in issue but not yet e pected life of the financial liability, or, where appropriate, a shorter period, to the net carrying amount of the financial liability. effective.
Derecognition of financial liabilities nitial a lication of the follo ing tandards nter retations is not e ected to have any material im act on the financial statements of rban ro th . rban rowth NSW derecognises a financial liability only when the obligation under the liability is discharged, cancelled or e pired.
tandard nter retation ffective for annual ected to be initially 1.24 Provisions re orting eriods a lied in the financial beginning on or after year ending rovisions are recognised when rban rowth NSW has a present obligation legal or constructive as a result of a past event, it is probable that rban rowth NSW will be re uired to settle the obligation, and a reliable estimate can be made of the amount mendments to ustralian ccounting tandards – ecognition of of the obligation. anuary une eferred a ssets for nrealised Losses The amount recognised as a provision is the best estimate of the consideration re uired to settle the present obligation at reporting date, ta ing into account the ris s and uncertainties surrounding the obligation. Where a provision is measured using mendments to ustralian ccounting tandards – isclosure anuary une the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows using nitiative mendments to ommonwealth government bond rate. evenue from ontracts ith ustomers and mendments to The provision to complete pro ects captures all unpaid development costs which were included in the latest forecast land ustralian ccounting tandards arising from anuary une development schedule. t is raised as an estimate based on nown costs at the time when the land is ready for settlement and will be paid within the ne t four years. f the effect of time value of money is material, provisions are discounted at ommonwealth inancial nstruments anuary une government bond rate, which is a pre ta rate that reflects the current mar et assessments of the time value of money and the ris s specific to the liability. Leases anuary une rovisions for ma e good of the leased premises is recognised as stated in the lease agreement. The payment may be payable at the end of lease term.
70 13 14
otes to and forming art of the inancial tatements
L (continued)
1.24 Provisions (continued) rovision for rebates is recognised hen a lot is sold. s art of the conditions of sale rban ro th may be committed to ma e a ayment to the urchaser rovided certain design criteria are met and a lied for ithin a s ecified eriod by the urchaser usually bet een months. his ayment re resents reimbursement for additional costs incurred by the urchaser in com lying ith the design criteria set by rban ro th . rban ro th recognises of claims in the rovision based on the claims rocessed this amount is considered to be immaterial and therefore no discount is re uired.
1.25 Joint Arrangements nder oint rrangements investments in oint arrangements are classified as either oint o erations or oint ventures. he classification de ends on the contractual rights and obligations of each investor rather than the legal structure of the oint arrangement.
Joint operations rban ro th has oint o erations and therefore recognises its direct right to the assets liabilities revenues and e enses of oint o erations and its share of any ointly held or incurred assets liabilities revenues and e enses. hese have been incor orated in the financial statements under the a ro riate headings. etails of the oint o erations are set out in note .
1.26 Assets and liabilities attributable to a disposal group held for distribution and discontinued operations ssets and liabilities held for distribution are measured at the lo er of carrying amount and fair value less costs to distribute if their carrying amount ill be recovered rinci ally through a distribution to the shareholder instead of use. hese assets and liabilities must be available for immediate distribution and distribution must be highly robable. iscontinued o erations are e cluded from the results of continuing o erations and are resented as a single amount of rofit or loss after ta from discontinued o erations in the tatement of om rehensive ncome. etails of discontinued o erations are set out in note .
1.27 Changes in accounting policy, including new or revised Australian Accounting Standards (i) Effective Accounting Standards/Interpretations issued but not yet effective t the date of authorisation of the financial statements the tandards and nter retations listed belo ere in issue but not yet effective. nitial a lication of the follo ing tandards nter retations is not e ected to have any material im act on the financial statements of rban ro th .
tandard nter retation ffective for annual ected to be initially re orting eriods a lied in the financial beginning on or after year ending
mendments to ustralian ccounting tandards – ecognition of anuary une eferred a ssets for nrealised Losses
mendments to ustralian ccounting tandards – isclosure anuary une nitiative mendments to
evenue from ontracts ith ustomers and mendments to ustralian ccounting tandards arising from anuary une
inancial nstruments anuary une
Leases anuary une
71 UrbanGrowth NSW is a trading name of Landcom.14
FINANCIAL STATEMENTS
$’000 $’000
– –
72 15
0 0
0 0 $’000 $’000
Auditor’s remuneration – – 0 0 0 0 0 0
0
0 0
73 UrbanGrowth NSW is a trading name of Landcom.16
FINANCIAL STATEMENTS otes to and ormin art o t e inan ia tatements A 0 0
0 0 $’000 $’000
n ome a n ome ta e ense re o nised in t e tatement o om re ensi e n ome
e ma or om onents o in ome ta e ense or t e ear ended 0 une 0 and 0 are
urrent in ome ta ar e 0 e erred in ome ta ri ination and re ersa o tem orar di eren es 0
n ome ta e ense re orted in t e tatement o om re ensi e n ome 0 0
e erred in ome ta re enue e ense in uded in in ome ta e ense om rises e rease in rease in de erred ta assets 0 e rease in rease in de erred ta ia i ities 0
n ome ta e ense re o nised dire t in e uit e erred in ome ta re ated to items ar ed or redited dire t to e uit u erannuation a tuaria ain oss 0 00 n ome ta e ense re orted in e uit 0 00
e on i iation et een ta e ense a i a e to a ountin ro it e ore in ome ta at t e statutor in ome ta rate to in ome ta e ense at t e entity’s effective income tax rate:
A ountin ro it e ore in ome ta 0 0 0
At t e statutor in ome ta rate o 0 0 0 0 0 edu tions not a o a e or in ome ta ur oses n ome ta e ense re orted in t e tatement o om re ensi e n ome 0 0
as and as ui a ents
as at an and on and ort term de osits 0 000 000 0
n uded in t e as and as e ui a ents is restri ted as o $ mi ion 0 $ mi ion ese unds are re ated to as e d on e a o ro e t artners
74 17
otes to an formin art of t e inancia tatements 0 0
0 0 $’000 $’000
0 ra e an t er eceiva es
rrent ra e receiva es eve o ment on s t er receiva es
on c rrent ra e receiva es 0 eve o ment on s 0 oan receiva es
etai s re ar in cre it ris i i ity ris an mar et ris inc in financia assets t at are eit er ast e or im aire are isc ose in ote
e non c rrent tra e receiva e re resents eferre rocee s for ro ects $ 0 mi ion 0 : $ mi ion
nventories
rrent nventories e for istri tion efer ote or in ro ress 0 0 eve o e an 0
on c rrent or in ro ress 0 n eve o e an 0 0 0 0 ota 0 0
e cost of inventories reco nise as an ex ense in res ect of net rite o ns of inventory to net rea isa e va e is $ 0 mi ion 0 : $ mi ion
75 UrbanGrowth NSW is a trading name of Landcom.18
FINANCIAL STATEMENTS 0 0
0 0 $’000 $’000
(continued)
0 0 0 0 0 0
0 0
0
0
76 19
0 0
(continued)
0
$’000 $’000 $’000 $’000
0 0
0
$’000 $’000 $’000 $’000
0 0
0 0 $’000 $’000
0 0
0 0 0
77 UrbanGrowth NSW is a trading name of Landcom.20
FINANCIAL STATEMENTS 0 0
0 0 $’000 $’000
0 0 0 0
0 0 0 0 00 0
00 00 0 0 0 0 0 0 0
0 0 0 0 0 0 0
78 21
0 0
0 0 $’000 $’000
– 0 0 0 0 0
– 0 0
– 0 0 00
$ 0
– 0 0 0 0
0 0
79 UrbanGrowth NSW is a trading name of Landcom.22
FINANCIAL STATEMENTS 0 0
(continued)
0
$’000 $’000 $’000 $’000
0 0
0
00 0
0
80 23
0 0
–
conform with the principles of the Commonwealth’s retirement incomes policy relating to preservation, vesting and reporting t members and that members’ benefits are adequately protected.
onitor the Trustee Board’s adherence to the principles of the Commonwealth’s
0 0 0 0
– –
81 UrbanGrowth NSW is a trading name of Landcom.24
otes to and formingFINANCIAL part STATEMENTS of otes the inancial to and forming tatements part of T the inancial tatements T uperannuation (continued) uperannuation position as at une uperannuation (continued) uperannuation position as at une C T T une une une une C T T ember numbers une une une une Contributors ember numbers eferred benefits Contributors ensioners eferred benefits ensions fully commuted ensioners uperannuation position for B purposes $’000 $’000 $’000 $’000 ensions fully commuted ccrued liability ote , , , , uperannuation position for B purposes $’000 $’000 $’000 $’000 stimated reserve account balance , , , ccrued liability ote , , , , . eficit surplus , , , stimated reserve account balance , , , . uture ervice iability ote , . . urplus eficit surplus in e cess of recovery available from schemes , , , . uture . and ervice sub ect iability to a minimum ote of ero , . et asset liability to be recognised in tatement of . urplus in e cess of recovery available from schemes , , , inancial osition . . . . and sub ect to a minimum of ero . et asset liability to be recognised in tatement of , , , ot ein a n cial osition . . The accrued liability includes a contribution ta provision. This is calculated based on grossing up the deficit surplus less the allowance ote for past service e penses and insurable death and disability liabilities at a contribution ta rate of . The accrued liability includes a contribution ta provision. This is calculated based on grossing up the deficit surplus less the oallowancete for past service e penses and insurable death and disability liabilities at a contribution ta rate of . The uture ervice iability does not have to be recognised by an employer. t is only used to determine if an asset ceiling limit o tshoulde be imposed B para . nder B , any prepaid superannuation asset recognised cannot e ceed theThe present uture value ervice of iabilityany economic does benefits not havethat mayto be be recognised available byin thean employer. form of refunds t is only from used the to plan determine or reductions if an asset in future ceiling contributionslimit should tobe the imposed plan. BWhere the “surpluspara . in nderexcess B of recovery” , any is prepaid zero, no superannuation asset ceiling limit asset is imposed.recognised (Note: canno thist e ceed also includesthe present a contribution value of any ta economicprovision . benefits that may be available in the form of refunds from the plan or reductions in future contributions to the plan. Where the “surplus in excess of recovery” is zero, no asset ceiling limit is imposed. (Note: this also includes a contribution ta provision . C Total
une une une une C Total $’000 $’000 $’000 $’000
une une une une econciliation of the et efined Benefit iability sset $’000 $’000 $’000 $’000 et efined Benefit iability sset at start of year , , , econciliation of the et efined Benefit iability sset Current service cost et efined Benefit iability sset at start of year , , , et nterest on the net defined benefit liability asset Current service cost ast service cost et nterest on the net defined benefit liability asset ains losses arising from settlements ast service cost ctual return on und assets less nterest income , , ctuarial ains losses gains losses arising arisingfrom settlements from changes in demographic ctual return assumptions on und assets less nterest income , , ctuarial gains losses arising from changes in financial ctuarial gains losses arising from changes in , , assumptions demographic assumptions ctuarial ctuarial gains losses gains losses arising arising from from liability changes e perience in financial , , d ustmentassumptions for effect of asset ceiling ctuarial gains losses arising from liability e perience mployer contributions ffects d ustment of transfers for effect in out of assetdue to ceiling business combinations and mployer disposals contributions e ffectst efin ofed transfersBenefit iin outability due ss toet business on u combinationsne , , , and disposals 25 et efined Benefit iability sset on une , , , 82 25
Notes to and forming part of the inancial tatements N 0 N 0
uperannuation (continued)
N otal 0 une 0 0 une 0 0 une 0 0 une 0 $’000 $’000 $’000 $’000
econciliation of the air alue of und ssets
air value of und assets at beginning of the year , , , nterest income 0 ctual return on und assets less nterest income , , mployer contributions 0 ontributions by participants 0 enefits paid ( ( , 0 ( , axes, premiums expenses paid ( ( ransfers due to business combinations and disposals ontributions to accumulation section ettlements xchange rate changes air value of und assets at 0 une 0 ,0 0 , 0 ,0
econciliation of the efined enefit bligation
resent value of defined benefit obligations at beginning , , 0, 0,0 of the year urrent service cost 0 nterest cost 0 ontributions by participants 0 0
ctuarial (gains losses arising from changes in ( ( demographic assumptions ctuarial (gains losses arising from changes in financial ( 0 ( 0 ( ,0 ( , 0 assumptions ctuarial (gains losses arising from liability experience 0 ( ( enefits paid ( ( , 0 ( , axes, premiums expenses paid ( (
ransfers due to business combinations and disposal
ontributions to accumulation section ast service cost ettlements xchange rate changes resent value of defined benefit obligations for the year , 0 , , ,0 ended 0 une 0
83 UrbanGrowth NSW is a trading name of Landcom.26
FINANCIAL STATEMENTS 0 0
(continued)
0 0 0 0 0 0 0 0
$’000 $’000 $’000 $’000
All Pooled Fund assets are invested by SAS Trustee Corporation (STC) at arm’s length through independent fund managers,
0
$ 000 $ 000 $ 000 $ 000
0 0 0 0 00 0 0 0 0 0 0 0 0 0
0 0 0 00 0
84 27
otes to and forming part of the Finan ial Statements F T A 0 0
Superannuation (continued)
evel uoted pri es in a tive mar ets for identi al assets or liabilities The assets in this level are listed shares listed unit trusts evel inputs other than uoted pri es observable for the asset or liability either dire tly or indire tly The assets in this level are ash notes government, semi government and orporate bonds unlisted trusts here uoted pri es are available in a tive mar ets for identi al assets or liabilities evel inputs for the asset or liability that are not based on observable mar et data The assets in this level are unlisted property unlisted shares unlisted infrastru ture distressed debt hedge funds erivatives, in luding futures and options, an be used by investment managers o ever, ea h manager s investment mandate learly states that derivatives may only be used to fa ilitate effi ient ashflo management or to hedge the portfolio against mar et movements and annot be used for spe ulative purposes or gearing of the investment portfolio As su h managers ma e limited use of derivatives
Fair value of entity s o n finan ial instruments
The fair value of the Pooled Fund assets as at 0 une 0 in lude $ 0 million in S government bonds f the dire t properties o ned by the Pooled Fund SAS Trustee Corporation o upies part of a property 00 o ned by the Pooled Fund ith a fair value of $ 0 million ( 0 une 0 $ million) ealth Administration Corporation o upies part of a property 0 o ned by the Pooled Fund ith a fair value of $ million ( 0 une 0 $ million)
Signifi ant A tuarial Assumptions at the eporting ate 0 is ount rate pa 0 0 0 and 0 0 0 0 0 0 and 0 0 0 Salary in rease rate (e luding promotional in reases) 00 pa 0 0 to 0 0 0 pa thereafter
ate of CP n rease 00 0 0 0 0 0 pa thereafter as per the 0 A tuarial nvestigation of the Pooled Fund These assumptions are dis losed in the a tuarial investigation report available Pensioner mortality from the trustee s ebsite The report sho s the pension mortality rates for ea h age
Sensitivity Analysis
The entity s total defined benefit obligation as at 0 une 0 under several s enarios is presented belo The total defined benefit obligation dis losed is in lusive of the ontribution ta provision hi h is al ulated based on the asset level at 0 une 0
S enarios A to F relate to sensitivity of the total defined benefit obligation to e onomi assumptions, and s enarios and relate to sensitivity to demographi assumptions
S enario A S enario ase Case dis ount rate dis ount rate is ount rate as above as above 0 pa as above 0 pa ate of CP in rease as above as above as above Salary inflation rate as above as above as above efined benefit obligation $000 ,0 , 0,
S enario C S enario ase Case 0 CP in rease 0 CP de rease is ount rate as above as above as above ate of CP in rease as above above rates plus 0 pa above rates less 0 pa Salary inflation rate as above as above as above efined benefit obligation $000 ,0 , ,
85 UrbanGrowth NSW is a trading name of Landcom.28
FINANCIAL STATEMENTS otes to and forming part of the Finan ial Statements F T A 0 0
Superannuation (continued)
S enario S enario F ase Case 0 Salary in rease 0 Salary de rease is ount rate as above as above as above ate of CP in rease as above as above as above Salary inflation rate as above above rates plus 0 pa above rates less 0 pa efined benefit obligation $000 ,0 , 0 , 0
S enario S enario ase Case o er mortality igher mortality efined benefit obligation $000 ,0 , ,
Assumes the short term pensioner mortality improvement fa tors for years 0 0 also apply for years after 0 Assumes the long term pensioner mortality improvement fa tors for years post 0 also apply for years 0 to 0
The defined benefit obligation has been re al ulated by hanging the assumptions as outlined above, hilst retaining all other assumptions
Asset iability mat hing strategies
The Trustee monitors its asset liability ris ontinuously in setting its investment strategy t also monitors ashflo s to manage li uidity re uirements o e pli it asset liability mat hing strategy is used by the Trustee
Funding arrangements
Funding arrangements are revie ed at least every three years follo ing the release of the triennial a tuarial revie and as last revie ed follo ing ompletion of the triennial revie as at 0 une 0 Contribution rates are set after dis ussions bet een the employer, STC and S Treasury
Funding positions are revie ed annually and funding arrangements may be ad usted as re uired after ea h annual revie
a) Surplus/deficit
The follo ing is a summary of the 0 une 0 finan ial position of the Fund al ulated in a ordan e ith AAS 0 Accounting Standard “Superannuation Entities”:
SASS SA CS SSS T TA 0 une 0 0 une 0 0 une 0 0 une 0 $’000 $’000 $’000 $’000 A rued benefits , 0 ,0 , 0 , et mar et value of Fund assets ( ,0 0) ( ) ( , 0) ( ,0 ) et (surplus) defi it , ( ) , 0
There is no allo an e for a ontribution ta provision ithin the A rued enefits figure for AAS 0 Allo an e for ontributions ta is made hen setting the ontribution rates
86 29
otes to and or ing part o t e inancia State ents E EA E E 0 E 0
Superannuation (continued)
b) Contribution recommendations
Recommended contribution rates for the entity are:
SASS SA S SSS
u tip e o e er sa ar u tip e o e er e er contri utions contri utions A A A
c) Economic assumptions
The economic assumptions adopted for the 30 June 2017 AASB 1056 Accounting Standard “Superannuation Entities”:
eig ted a erage assu ptions E pected rate o return on und assets ac ing current pension ia i ities pa E pected rate o return on und assets ac ing ot er ia i ities pa E pected sa ar increase rate SASS SA S SSS to 0 une 0 t en pa t erea ter E pected rate o increase pa
d) Expected Contribution
SASS SA S SSS ota 0 une 0 0 une 0 0 une 0 0 une 0 E pected e p o er contri utions to e paid in t e ne t 0 reporting period $000
aturit pro i e o de ined ene it o igation
e eig ted a erage duration o t e de ined ene it o igation is ears
ro it and oss pact
SASS SA S SSS A 0 une 0 0 une 0 0 une 0 0 une 0 $’000 $’000 $’000 $’000
urrent ser ice cost 0 et interest ast ser ice cost ains oss on sett e ent e ined ene it cost 0
30 87 UrbanGrowth NSW is a trading name of Landcom. FINANCIAL STATEMENTS 0 0
continued
0 0 0 0 0 0 0 0 $’000 $’000 $’000 $’000
0 0 0
0 0
0 0 0 0 0 0 0 0
$’000 $’000 $’000 $’000 0 0 0 0 0 0
tions to the plan. Where the “surplus in excess of recovery” is zero, no asset ceiling limit is imposed. (Note: this also
88 31
Notes to and forming part of the inancial tatements N 0 N 0
uperannuation continued
N otal
0 une 0 0 une 0 0 une 0 0 une 0 $’000 $’000 $’000 $’000
econciliation of the Net efined enefit ia ility ( sset
Net efined enefit ia ility ( sset at start of year ,0 , 0 , urrent service cost 0 Net nterest on the net defined enefit lia ility (asset 0 ast service cost ( ains losses arising from settlements ctual return on und assets less nterest income ( ( ctuarial (gains losses arising from changes in ( ( 0 demographic assumptions ctuarial (gains losses arising from changes in financial , , assumptions ctuarial (gains losses arising from lia ility experience ( ( ( ( 0 d ustment for effect of asset ceiling mployer contri utions ( ( ( ( ffects of transfers in out due to usiness com inations and disposals Net efined enefit ia ility ( sset at end of year , , 00 ,
econciliation of the air alue of und ssets air value of und assets at eginning of the year , , , nterest income 0 ctual return on und assets less nterest income ( ( mployer contri utions ontri utions y participants enefits paid ( ( ( ( ,0 axes, premiums expenses paid ( ( ( ransfers in ontri utions to accumulation section ettlements xchange rate changes air value of und assets at end of the year , , ,
89 UrbanGrowth NSW is a trading name of Landcom.32
FINANCIAL STATEMENTS 0 0
continued
0 0 0 0 0 0 0 0 $’000 $’000 $’000 $’000
0 0 0 0 0
0 0 0 0 0 0
All Pooled Fund assets are invested by SAS Trustee Corporation (STC) at arm’s length through independent fund managers,
90 33
otes to and forming part of the Finan ial Statements F T A 0 0
Superannuation continued
SASS SA CS SSS Total
As at 0 une 0 une 0 0 une 0 0 une 0 0 une 0 $’000 $’000 $’000 $’000
uoted pri es in Signifi ant a tive mar ets nobservable observable Asset ategory Total ($ 000) for identi al inputs inputs assets evel ($ 000) evel ($ 000) evel ($ 000)
Short Term Se urities ,0 0 ,0 Australian Fi ed nterest , , nternational Fi ed nterest ( ) Australian uities , , nternational uities ,0 ,0 ,0 Property , 0 , , Alternatives , 0 , , Total , , , ,
The per entage invested in ea h asset lass at the date of the Statement of Finan ial Position
0 une 0
Short Term Se urities Australian Fi ed nterest nternational Fi ed nterest Australian uities nternational uities Property Alternatives Total 00 0
Additional to the assets dis losed above, at 0 une 0 the Pooled Fund has provisions for re eivables (payables) estimated to be around $ billion This gives total estimated assets of $ 0 billion
evel uoted pri es in a tive mar ets for identi al assets or liabilities The assets in this level are listed shares listed unit trusts evel inputs other than uoted pri es observable for the asset or liability either dire tly or indire tly The assets in this level are ash notes government, semi government and orporate bonds unlisted trusts here uoted pri es are available in a tive mar ets for identi al assets or liabilities evel inputs for the asset or liability that are not based on observable mar et data The assets in this level are unlisted property unlisted shares unlisted infrastru ture distressed debt hedge funds
erivatives, in luding futures and options, an be used by investment managers o ever, ea h manager s investment mandate learly states that derivatives may only be used to fa ilitate effi ient ashflo management or to hedge the portfolio against mar et movements and annot be used for spe ulative purposes or gearing of the investment portfolio As su h managers ma e limited use of derivatives
91 UrbanGrowth NSW is a trading name of Landcom.34
FINANCIAL STATEMENTS 0 0
continued
0 0 $
00 $ 0 0 $
0 $ 0 0 $ 0
0 0 0 0 0 0 0 0 0 0 0 0 0 0 00 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0
0 $000 0 0
0 0 0 0 $000 0 0
92 35
0 0
continued
0 0 0 0 $000 0 0 0 00
0 0 $000 0 0 0 0
0 0
a Surp us deficit
0 0 calculated in accordance with AAS 25 “Financial Reporting by Superannuation Plans”:
0 0 0 0 0 0 0 0 $’000 $’000 $’000 $’000 0 0 0
93 UrbanGrowth NSW is a trading name of Landcom.36
FINANCIAL STATEMENTS otes to and or ing part o the Financial State ents F R AR 0 20
Superannuation continued
ontri ution recommendations
ecommended contri ution rates for the entit are
SASS SA S SSS
ultiple o e ber salary ultiple o e ber e ber contributions contributions 2 50
c Economic assumptions
The economic assumptions adopted for the 2015 actuaria re ie of the und are
eighted a erage assu ptions pected rate o return on Fund assets bac ing current pension liabilities pa pected rate o return on Fund assets bac ing other liabilities pa pected salary increase rate SASS SA S SSS 0 to 0 une 20 then 5 pa therea ter pected rate o P increase 2 5 pa
d E pected ontri ution
SASS SA S SSS otal
0 une 20 0 une 20 0 une 20 0 une 20 pected e ployer contributions to be paid in the ne t reporting 0 5 2 0 5 period
aturity pro ile o de ined bene it obligation
he weighted a erage duration o the de ined bene it obligation is 5 2 years
Pro it and oss pact
SASS SA S SSS otal
0 une 20 0 une 20 0 une 20 0 une 20 urrent ser ice cost 2 0 et interest 20 2 Past ser ice cost ains oss on settle ent e ined bene it cost 5
94 37
otes to and or ing part o the Financial State ents F R AR 0 20
Superannuation continued
ther o prehensi e nco e
SASS SA S SSS otal
0 une 20 0 une 20 0 une 20 0 une 20 Actuarial gains losses on liabilities 5 52 Actual return on Fund assets less nterest inco e 5 2 Ad ust ent or e ect o asset ceiling otal re easure ent in ther o prehensi e nco e 20
20 e erred a iabilities he balance co prises te porary di erences attributable to:
20 20
$’000 $’000 Fair alue ad ust ents 2 20 epreciation and a ortisation 5 Prepay ents 2 2 5 o e ents arrying a ount at beginning o the year 2 harge to the State ent o o prehensi e nco e 5 arrying a ount at end o the year 5
2 ontributed capital ontributed capital co prises capital and contributed assets ac uired ree o charge
95 UrbanGrowth NSW is a trading name of Landcom.38
FINANCIAL STATEMENTS 0 0 0 0 0 0
$ ’00 0 0 $ ’00 0 0 $’000 $’000
00 0 00 0
0 0
0
0
’s ’s
0 0 $ ’0 0 0 $ ’0 0 0 0 0 $’000 $’000
0 0 0 0
39
96 39
s s 0 0
s s continued
s s s s s s s s s s s AASB 7 inancia nstruments isc osure
s
s s s ss s s s ’s maximum exposure to credit risk is represented by the carrying amounts of the ss s s
s s s s s s s s s s s s s s s s
s s s s s s s
s s s s s s s s s
The only financial assets that are past due or impaired are in the ‘receivables’ category of the Statement of s
$’000 $’000 $’000
s s 0 0 s
s – s 0 0
s 0 0
$’000 $’000 $’000
s s
0 0
s 0 0
s – s
s
s s s s s s s s s AASB 7 inancia nstruments isc osure
s s s s s s s s s s s s $ 0 $ 0
97 UrbanGrowth NSW is a trading name of Landcom.40
FINANCIAL STATEMENTS otes to and forming part of the inancial Statements T 0 0
inancial nstruments continued
b i uidity risk
i uidity risk arises if rban ro th S is unable to meet its payment obligations hen they fall due uring the current and prior years there ere no defaults or breaches on any loans payable or borro ings o asset has been pledged as collateral rban ro th S has undra n facilities sufficient to meet obligations as and hen they fall due xposure to li uidity risk is deemed insignificant
The table belo summarises the maturity profile of rban ro th S ’s financial liabilities and interest rate exposure.
aturity analysis and interest rate exposure of financial liabilities
nterest rate exposure aturity dates
eighted ominal ixed ariable on ear – ears average amount interest interest interest ears effective rate rate bearing interest rate $’000 $’000 $’000 $’000 $’000 $’000 $’000
0 ayables orro ings
0 ayables 0 0 orro ings 0 0
ote The nominal amounts disclosed are the contractual undiscounted cash flo s of each class of financial liability Therefore the amounts disclosed ill not reconcile to the Statement of inancial osition This analysis also excludes statutory payables as these are not ithin the scope of AASB 7 inancia nstruments isc osure
c arket risk
arket risk is the risk that the fair value or future cash flo s of a financial instrument ill fluctuate because of changes in market prices
rban ro th S does not have any investments nor is there any exposure to foreign currency or commodity contracts
d nterest rate risk
nterest rate risk is the risk that the value of the financial instrument ill fluctuate due to changes in market interest rates rban ro th S ’s exposure to interest rate risks and the effective interest rates of financial assets and liabilities, both recognised and unrecognised at the balance date is minimal rban ro th S ’s debt portfolio is managed by TCorp, the appointed debt management contractor
xposure to interest rate risk arises primarily through rban ro th S ’s interest bearing liabilities This risk is minimised by undertaking mainly fixed rate borro ings ith T orp rban ro th S does not account for any fixed rate financial instruments at fair value through profit or loss or as available for sale
98 41
otes to and forming part of the inancial tatements T 0 0
inancial nstruments continued
The follo ing table provides the sensitivity analysis of interest rate risk affecting financial assets and liabilities on the operating result and e uity of rban ro th . reasonably possible change of is used, consistent ith current trends in interest rates. rban ro th ’s exposure to interest rate risk is set out below.
Carrying rofit uity rofit uity amount $’000 $’000 $’000 $’000 $’000 0 inancial assets Cash and cash e uivalents , , , , ,
0 inancial assets Cash and cash e uivalents 0 , , , , ,
e et fair value
s stated in ote . , all financial instruments are carried at net fair value, unless stated other ise. The directors consider that the carrying amounts of financial assets and financial liabilities recorded at amortised cost in the financial statements approximate their fair values.
xpenditure Commitments
0 0 $’000 $’000
perating lease commitments uture non cancellable operating lease rentals not provided for and
payable
, , ot later than one year ater than one year but not later than five years ,0 , ater than five years Total operating lease commitments including T , ,
The total lease expenditure commitments above include input tax credits of $0. million that are expected to be recoverable from the T 0 une 0 $ . 0 million .
99 UrbanGrowth NSW is a trading name of Landcom.42
FINANCIAL STATEMENTS otes to an or in part o t e inan ial tate ents 0 0
ontin ent ssets an iabilities
ontra tin part as alle e t at rban rowt as brea e an obli ation un er t e ontra t. lai as been a e or re ti i ation osts o $ . illion.
ontra te part as alle e potential lai or a a es arisin ro onstru tion ela s. e alue o an potential lai as not been uanti ie .
rban rowt a be liable to pa o pensation or loss in urre b two lan pur asers o up to $ . illion. e likeli oo o t e pur asers lo in a lai is er low.
rban rowt a be liable to buil a o unit a ilit up to $ . 0 illion s oul t e lan pur aser isa ree wit t e lause in t e ontra t to buil a o unit a ilit . e likeli oo is er low.
elate art ransa tions
ll transa tions b rban rowt wit ke ana e ent personnel are on u te on an ar s len t basis in t e nor al ourse o business an on o er ial ter s an on itions.
o pensation pai to t e ke ana e ent personnel o rban rowt was $ . illion 0 $ . 0 illion .
0 0 $’000 $’000
ort ter e plo ee bene its 0 0
ost e plo ent bene its t er lon ter bene its
er ination bene its
otal o pensation pai to ke ana e ent personnel 0
ere are no outstan in balan es relatin to an ke ana e ent personnel. ere a e been no uarantees pro i e or re ei e or an ke ana e ent personnel. ne o t e ke ana e ent personnel was pai $ 000 or onsultan ser i es ollowin essation o t eir e plo ent wit rban rowt . urt er a onsultant was ee e ke ana e ent personnel or a part o t e inan ial ear. n er t is onsultin arran e ent a o pan t at t e e ber was a ire tor an part s are ol er was pai $ 0.
urin t e ear rban rowt as a inter a en transa tions or rei burse ent o ost istribution o re enue an ana e ent ees wit ot er tate o ern ent en ies. n a ition to t e a en ies liste in ote rban rowt also transa te wit ne ater orporation rban rowt e elop ent orporation ealt inistration orporation la e ana e ent epart ent in isabilit ealt rownlan o esites ro ra oa s an ariti e er i es ransport or an a il an o unit er i es.
an ro ealt inistration orporation an la e ana e ent was trans erre at air alue o $ .00 ea an re or e as an e uit trans er
100 43
0 0
continued
0 0
$’000 $’000
0 0 0
0 0
$ 0 $
arrangements are for land development, which is UrbanGrowth NSW’s core business. These contractual arrangements require
0 0
101 UrbanGrowth NSW is a trading name of Landcom.44
FINANCIAL STATEMENTS Notes to and forming part of the inancial Statements T N 0 UN 0
iscontinued perations
n a 0 , following a decision b NSW Government acting in its capacit as owner, UrbanGrowth NSW committed to a plan to transfer management of the following ma or urban transformation pro ects to the UrbanGrowth NSW evelopment orporation
The a s recinct entral to veleigh arramatta North n ac arade South
The plan also involved the transfer of the management of the Newcastle Urban Transformation rogram to the unter evelopment orporation.
ccordingl , the assets and liabilities associated with those pro ects are presented as held for distribution to owners at 0 une 0 . The assets and liabilities of each pro ect consist of inventor balances accounted and emplo ee benefit liabilities.
The assets and liabilities are e pected to transfer during the financial ear 0 , upon which UrbanGrowth NSW will record a distribution to owners via an ad ustment to contributed capital, on the basis of the transaction is with its shareholders in their capacit as owners.
a ssets and liabilities of disposal group held for distribution
0 $’000
nventories ssets held for distribution ,
mplo ee benefit liabilities iabilities held for distribution ,
Total ssets and iabilities for distribution ,
vents fter eporting eriod
n ul 0 , assets and liabilities in the disposal group held for distribution to owners were transferred to unter evelopment orporation. The balance of the assets and liabilities for UrbanGrowth evelopment orporation is e pected to be transferred during the financial ear 0 .
0 Segment nformation
or the months to the 0 une 0 and 0 UrbanGrowth NSW operated in one business segment, and one geographical segment. onsequentl , a segment report for 0 and 0 has not been reported.
nd of inancial Statements
102 45
Community consultation, The Bays Precinct, Sydney
103 ANNUAL REPORT 2017
Index
Addressing discrimination in the workforce 51 Ministers’ Letter 03 Authorised proactive release of information 44 Miscellaneous activities 53 under S.7 (3) of GIPA Act 2009 Multicultural policies and services program 48 Awards 32 NSW Government action plan for women 51 Board of Directors 10 Notes to and forming part of the Financial 64 Board of Directors, meetings and committees 39 Statements Board performance review 40 Our governance structure 20 Business continuity 41 Our guarantee of service 51 CBD Projects Portfolio 28 Our organisation 18 Chairman’s review 06 Our portfolio 19 Chief Executive Officer’s review 08 Our charter and function 38 Code of Conduct 51 Overseas visits 53 Committee meetings 39 Performance against operational objectives 22 Compliments and complaints feedback system 51 Principal objectives 38 Consultancies 53 Privacy 45 Corporate activities 38 Procedures for shareholder and employee 52 consultation and feedback Corporate directory 105 Production cost of Annual Report 53 Executive Management Team 14 Promotion 52 Directors’ Declaration 59 Public access to information and the 42 Disclosure of approved exemptions 54 protection of privacy Ethnic affairs priorities statement 48 Public Interest Disclosures Act 1994 45 Executive positions 52 Risk management 41 Financial statements 56 Staff - performance management system 40 FY 16/17 economical and financial highlights 21 Stakeholder engagement 35 Government Information (Public Access) (GIPA) - 42 Statement of cash flows 62 Formal access applications Statement of changes in equity 63 Highlights of this year’s achievements 22 Statement of comprehensive income 60 Hunter Development Corporation v Save Our Rail 46 Court of Appeal Proceedings Statement of financial position 61 Implementing our values 51 Sustainability Strategy 34 Independent Auditor’s Report 57 The Bays Precinct, Sydney 30 Insurance 41 Thornton North penrith No. 3 Pty Limited v 46 Landcom Supreme Court proceedings Lachlan’s Line - defending a review of a GIPA Act 46 decision sought by Meriton Trends in the Representation of Workforce 50 Diversity Groups Legal events 46 Western Sydney Projects Portfolio 24 Legislative Changes 46 Work health and safety 46 Looking ahead to FY16/17 36 Workforce diversity performance 50 Measuring performance 40 Ministerial statement of priorities 18
104 ANNUAL REPORT 2017
Corporate directory
The current and previous Annual Reports have been transferred to Landcom and can be downloaded at: www.landcom.com.au/publications
For general enquiries contact: [email protected]
Landcom UrbanGrowth NSW Development Corporation Level 14, 60 Station Street Level 12, MLC Centre, 19 Martin Place Parramatta NSW 2150 Sydney NSW 2000 PO Box 237 PO Box Q1744 Parramatta NSW 2124 Sydney NSW 2000
Phone: (02) 9841 8600 Phone: (02) 9841 8600 Fax: (02) 9841 8688 Fax: (02) 9841 8688
105 Contact details
Phone (02) 9841 8600 Mail Level 14, 60 Station Street PO Box 237 Parramatta NSW 2150
Disclaimer
UrbanGrowth NSW reasonably believes this document is correct at the date of publication but gives no warranty or representation as to its accuracy or completeness. To the extent permitted by law, UrbanGrowth NSW (including its agents and employees) disclaims any liability whatsoever in connection with, reliance upon, or use of this document by any person.