OUR PURPOSE IS TO CREATE OPPORTUNITIES FOR OUR MEMBERS TO THRIVE. The way we work … 1. We treat people fairly, respecting their views and valuing their contributions. 2. We accept, embrace and promote diversity and inclusivity. 3. We encourage our people to be creative, take initiative, show leadership and reach their potential. 4. We take responsibility for our communications, decisions, actions and performance. 5. We act with integrity in our work and in dealing with others. OUR PURPOSE & THE WAY WE WORK 2 | ANNUAL REPORT 2018 Overview 2 Our Purpose & the Way We Work 4 Chairman’s Review 8 From the CEO 10 Board of Directors 12 Public Affairs 14 Workplace Relations 16 Member Services & Marketing 18 Finance & Administration 20 Digital Services 22 ClubKENO Holdings Board of Directors Financial Reports 23 Financial Reports Introduction 24 Directors’ Report 26 Accounting Officer’s Report 27 Statements of Profit or Loss and other Comprehensive Income 28 Statements of Changes in Equity 29 Statements of Financial Position 30 Statements of Cash Flows 31 Notes to the Financial Statements 58 Independent Auditor’s Report Supplements 61 State Councillors 62 Member Clubs 70 Affiliated Associations 71 ClubsNSW Community Partners 72 ClubsNSW Corporate Partners 73 ClubsNSW Industry Supporters CONTENTS ANNUAL REPORT 2018 | 3 CHAIRMAN’S REVIEW Peter Newell OAM Chairman ClubsNSW has completed another busy year in a wide range of pursuits, and the coming one will be equally “heads down” on both the political and operational fronts. Politically we are heading towards a NSW election in March, with a Federal election any time between now and next May. In both spheres, community clubs and our best interests will be to the fore. Discussions are well underway with the major parties on their policies as they may affect clubs. You would recall our industry has been a partner in a Memorandum of Understanding with the NSW Government that has delivered taxation certainty and industry stability on many other fronts for years, while we generally enjoy bipartisan support from the major parties at both State and Federal level and strive to see that maintained. Mind you, the club-hating Greens have demanded that no such MoUs see the light of day in the lead-up to the NSW election, but I don’t think too many are being influenced by them if recent events are any indication (see below). In the year just gone and the year in which we now find ourselves, at an operational level digital activity has been a key focus. Chief Digital Officer David McGrath has built a team of professionals to position ClubsNSW as a leader and innovator in digital commerce, to improve clubs’ business opportunities while reducing red tape and costs. Among other things, this has involved planning the construction of a new human resources management system for clubs, a data governance project to help clubs protect their data assets, a rebuild of the ClubsNSW website, improvements to the ClubGRANTS portal and improving general club connectivity and digital literacy. Thanks to the Digital Advisory Committee members for their input. On the governance front, the issue of club board diversity and succession continues to be advocated across the industry following 4 | ANNUAL REPORT 2018 OUR INDUSTRY HAS BEEN A PARTNER IN A MEMORANDUM OF UNDERSTANDING “ WITH THE NSW GOVERNMENT that has delivered taxation certainty and industry stability on many other fronts for years, while we “ generally enjoy bipartisan support from the major parties at both State and Federal level and strive to see that maintained. receipt of the Murdoch report last year. This who oppose community clubs and what we Institute of Company Directors. I welcome will continue to be discussed across the state stand for. A much-touted and so-called poker Sallianne to the Board and also wish her well. In this year. The role of the ClubsNSW Code machine “test case” failed in the Australian related areas, Samantha Torres has joined the Authority has been expanded, as detailed in Federal Court after a complainant, with the ClubKeno Holdings Board as an independent Josh Landis’ column. enthusiastic backing of the Alliance For director, while Jingmin Qian has been appointed With regard to the Association’s Gambling Reform, sought a declaration to a trustee director of Club Plus Superannuation. ClubSAFE gambling harm minimisation restrain Aristocrat and Crown Resorts from During the year Stefan Strano was confirmed as program, I’m pleased to report more clubs supplying certain gaming machines, alleging the Club Plus CEO and he takes into the position have boosted their involvement by subscribing they were “rigged” and designed to “mislead my confidence and best wishes. to ClubSAFE Premium. During the year a new and deceive” players. Evidence to the contrary Work continued throughout the year planning contract for club chaplaincy was agreed with was overwhelming and one of the applicant’s clubs’ community partnership involvement in the Salvation Army. “expert witnesses” was strongly criticised by October’s Invictus Games in Sydney which, under Among workplace issues, an application the Judge. After this setback, the so-called No the patronage of HRH Prince Harry, will bring to consolidate the Clubs Award with the Pokies MP, Nick Xenophon, crashed and burnt together more than 500 competitors plus their Hospitality Award continues. There is no doubt in his attempt to win a lower house seat in the supporters. The Games are aimed at helping the issue of penalty rates will arise during South Australian election after having resigned injured returned servicemen and women gain coming elections, with the ACTU and Labor from the Australian Senate to do so. He has not further opportunities and recognition while pushing for a definition of what constitutes been seen or heard from since. In Tasmania, the integrating back into mainstream society. Thanks a “casual” employee, potentially affecting Labor opposition went to that state’s election to all the individual clubs who have pitched in workplace flexibility in our industry. on a policy of banning poker machines from to support this great event which also will bring New Local Impact Assessment guidelines clubs and pubs – it was defeated and the Prince Harry and new wife Meghan Markle, the with regard to poker machine density in Government returned. The club-hating Greens Duchess of Sussex, to Australia. At the same time, specific locations came into being during the also failed in the SA and Tasmanian elections, ClubsNSW also continued to strongly support year. There are winners and losers among clubs the by-election in the Federal seat of Batman other valued community partners in Surf Life across NSW with regard to their positioning where they were hotly tipped to defeat Labor, Saving NSW, Special Olympics Australia, Life in Red, Green or Amber zones but, in the and did poorly in WA and Queensland. Education, Fr Chris Riley’s Youth Off The Streets, main, the outcome seems reasonable across In early May this year director Michael the Clontarf Foundation, Little Wings, Max the industry. This was a major change, and Fraser retired from the ClubsNSW Board Potential, Regional Academies of Sport, the Talent Executive Manager of Public Affairs Josh after close on nine years for which we all Development Project, the Centre For Volunteering, Landis and his team did a good job in extend out thanks. During this time, Michael The Salvation Army and Nova Employment. managing a difficult assignment. has been a friend and great supporter of me, The association’s finances remain in a sound ClubsNSW was not successful during the Board and the ClubsNSW team since his position, with a year’s surplus of $393,850. The the year in offering a new digital wagering appointment in June 2009. He is a fine person game of Keno had another good year, albeit around partnership with CrownBet to club members who remains the Chairman of the Twin Towns 4.5 per cent down on last year’s record high but and patrons. This was about enabling clubs to Group in northern NSW and I wish him, his still the third-best result on record just behind benefit from choice and competition in wagering, wife Jocelyn and his family all the best in 2016. The game’s digital platform progressed, with as well as being better able to use technology to the years ahead. In accordance with Clause Android now available. The Parliament passed engage with members. CrownBet withdrew from 21(e) of the Association’s rules, Sallianne legislation banning synthetic lotteries in June, the project after the NSW regulator was unable Faulkner was appointed to the Board to fill including Lottoland and its offshoot Kenoland. to confirm its legality, which conflicted with our the casual vacancy. Sallianne has been the Clubs Australia lobbied for this to protect Keno legal advice. A positive from this exercise has Ramsgate RSL Club President since 2014, income for clubs. been that many clubs are now receiving is the Secretary/Treasurer of the ClubsNSW The ClubsNSW Annual Conference took wagering digital commissions from Tabcorp. Southern Metropolitan Zone, a member of the place for the first time at the new International It was not a particularly good year for those Club Directors Institute and the Australian Convention Centre Sydney last October. ANNUAL REPORT 2018 | 5 THE CLUBSNSW ANNUAL CONFERENCE “ took place for the first time at the new International Convention Centre Sydney last October. A highlight “ was the magnificent Clubs & Community Awards night. A highlight was the magnificent Clubs & up 8 years in the position on June 28. My thanks Community Awards night which was a fitting to Anthony as well as executive managers Josh tribute to all the things our clubs do across Landis, Anne Fitzgerald, Brandon Punter, Chris NSW.