Annual Report 2020 2 Contents Snapshot 4 Board of Directors 9 Directors’ Report Financial Reports 12 Lead Auditor’s Independence Declaration and Directors’ Declaration 13 Independent Auditor’s Report 14 Statements of Profit or Loss and Other Comprehensive Income 15 Statements of Financial Position 16 Statements of Changes in Equity 17 Statements of Cash Flows 18 Notes to the Financial Statements 57 Glossary of Terms and Acronyms Environmental Sustainability Beyond Bank Australia cares about the community and is committed to environmental sustainability. This leaflet has been printed on Monza Recycled, manufactured by an ISO 14001 certified mill, and contains 99% recycled fibre and elemental chlorine free pulp. All virgin pulp is derived from well-managed forests and controlled sources. To help us save precious resources, please contact us to receive future correspondence in an electronic format. 3 Board of Directors SANDRA (SAM) ANDERSEN GEOFFREY JAMES KNUCKEY CHAIR DIRECTOR Residence: Melbourne, VIC Residence: Canberra, ACT Sandra (Sam) was appointed to the Beyond Bank Australia Board in Geoff was appointed to the Beyond Bank Australia Board in July November 2013 and appointed Chair in 2018. She has more than 19 2012. He had a 32 year career with accounting firm Ernst & Young years’ experience in the finance sector and 11 years’ experience as and retired as a partner in December 2009. He was partner in an executive in the technology and health services industries. charge of EY’s Audit and Assurance group from 2003 until 2008 and was Canberra Office Managing Partner from 2003 to 2006. She is an experienced executive and Non-Executive Director in the listed, unlisted and government sectors and is currently Chair of Geoff’s career included specialising in financial statements and the Australian Packaging Covenant Organisation Limited, Chair auditing of entities of all sizes across all types of industries of Agriculture Victoria Services Pty Ltd, Non-Executive Director including the financial services sector. His role also included of Victorian Land Registry Services Group, Chair of the Audit & advising in internal audit, corporate governance, risk management Risk Management Committee of the Department of Premier & and financial statements auditing and reporting. Since 2010, Cabinet Victoria and a Trustee and Chair of the Finance and Audit Geoff has specialised in Board Non-Executive Director and Audit Committee of the Melbourne Convention and Exhibition Trust. Sam Committee positions in the private and public sectors. He is is a former managing director of Eyecare Partners Limited and currently Chairman or Non-Executive Director of four private sector a former Chief Financial Officer of listed technology companies. companies and is also Chair or Independent Member of the Audit Other past directorships include Anteo Diagnostics Limited, Rural and Risk Committees for a number of Commonwealth and ACT Finance Corporation, Victorian Funds Management Corporation and government departments. Superpartners Pty Ltd. His particular skills are in financial auditing, reporting and analysis, Sam has a Bachelor of Laws and is a Certified Practicing risk management, corporate governance and internal audit. Geoff Accountant. She is a fellow of the Financial Services Institute of is a Fellow of the Institute of Chartered Accountants in Australia Australia and the Australian Institute of Company Directors. and New Zealand and has been a Registered Company Auditor Sam is a Director of Eastwoods Group Limited and Eastwoods since 1995. Wealth Management Pty Ltd. and a member of the Board Governance and Remuneration Committee, and the Board He is a Graduate Member of the Australian Institute of Company Technology Committee. Directors and a member of the Institute of Internal Auditors. He holds a Bachelor of Economics from ANU. Geoff is the Chair of Eastwoods Group Limited and of Eastwoods Wealth Management Pty Ltd, Chair of the Board Audit Committee and a member of the Board Governance and Remuneration Committee. 4 Board of Directors Board of Directors DAVID JOHN NICHOL TRENT BARTLETT DIRECTOR DIRECTOR Residence: Adelaide, SA Residence: Perth, WA David was elected to the Beyond Bank Australia Board in 2015. Trent was appointed to the Beyond Bank Australia Board in He has over 30 years’ experience within the finance and insurance September 2016. He has over 20 years of extensive multi-industry industry, holding a number of senior national and state roles with Chair / Independent Director / Executive Director and CEO level companies such as GE, Toyota and QBE. David’s specific expertise leadership and experience in listed public companies, large private is in sales process auditing, compliance and remedial training. His companies as well as NFP and “for benefit” focused enterprises experience also extends into the areas of business development, operating with diverse business models and scale across many risk management, strategy and operational management. industry sectors. He is passionate about the finance sector and brings a diverse With a speciality in member owned/member governed businesses, and unique set of skills to his role. David also has an extensive Trent is currently a Director, Chair of the Remuneration and understanding of the mutual sector, having previously worked for Nomination Committee and Audit & Risk Committee Member CPS Credit Union (SA). He is a Graduate of the Australian Institute of of Australia’s largest co-operative, Co-operative Bulk Handling Company Directors and has recently completed an Applied Cyber (CBH), Independent Chair of Margaret River Busselton Tourism Security Course at the Massachusetts Institute of Technology (MIT) Association, Chair of Good Samaritan Industries, Independent in Boston. Chair of Travellers Choice, and Non-Executive Director and Chair David is the Chair of the Beyond Bank Australia Foundation Limited of the Remuneration and Nomination Committee of the Australian Board and is also a member of the Board Risk Committee. Packaging Covenant Board. Trent also currently mentors CEO’s and Senior Executives and is a faculty member of the Australian Institute of Company Directors. Trent is a former CEO of Capricorn Society, one of Australia’s largest and most successful co-operative enterprises, as well as having a 15 year General Management career in Australia’s largest retailers. He holds postgraduate qualifications in business and e-commerce and is a fellow of the Australian Institute of Company Directors. Trent is the Chair of the Board Customer Committee and a member of the Board Audit Committee. 5 Board of Directors JOANNE (JODIE) BAKER REBECCA RICHARDSON DIRECTOR DIRECTOR Residence: Sydney, NSW Residence: Sydney, NSW Jodie was appointed to the Beyond Bank Australia Board in Rebecca was appointed to the Beyond Bank Australia Board November 2017. Jodie has over 30 years’ experience in banking in February 2018. Rebecca has applied her qualifications in and funds management. She specialises in developing and environmental planning, law, management and financial analysis implementing strategy with a strong risk management and growth in business and working with the public and non-profit sectors. agenda, driving significant gains in customer engagement and Through her broad professional experience, Rebecca has had shareholder value. Jodie is also on the boards of Export Finance a focus on urban development, property, affordable housing Australia (formerly Export Finance and Insurance Corporation), and communities. Spaceship Superannuation, a superannuation fund for millennials, An experienced company director, with a background in mutual and arts organisation, Synergy & Taikoz, and is a member of Social banking, Rebecca’s roles have included Director and Chair of Enterprise Finance Australia Credit Committee, a B corporation. APRA regulated company, My Credit Union Limited and Committee She has previously served on the boards of Disability Sports Chair in Audit and Risk, Remuneration and Nominations. Other Australia and Finance Executives Institute. directorships include City West Housing Company and private During her executive career, Jodie’s roles included Managing publishing and urban planning companies. Partner of Blackhall & Pearl, a board, risk and governance advisory Rebecca is Managing Director of Urbanista Australia Pty Ltd, a firm, CEO and Managing Director of fintech business, Morgij planning and strategy consultancy practice specialising in urban Analytics and senior executive risk roles at ANZ Institutional Bank, renewal, regional development and housing; improving governance Societe Generale Australia, and BT Financial Group. Earlier in and systems; and feasibility and interactive modelling. her career, Jodie worked in front line and risk roles at Westpac, Macquarie Bank and Bankers Trust Australia. Rebecca has a special interest in fostering successful, liveable and sustainable communities and environments. Rebecca is a Jodie holds a Bachelor of Commerce from the University of Western member of the Board Customer Committee and Chair of the Board Australia, and a Diploma from FINSIA. She is a Trustee Fellow of the Governance and Remuneration. She is also Chair of the Local Australian Superannuation Funds Association and a Graduate of the Bank Council. Australian Institute of Company Directors. Jodie is Chair of the Board Risk Committee and a member of the Board Audit Committee. 6 Board of Directors Board of Directors DARYL JOHNSON ELIZABETH WESTCOTT DIRECTOR DIRECTOR Residence: Melbourne,