HOUSING · PDF fileReport of the Housing Authority for the financial year ... range of...

ANNUAL REPORT 201516

HOUSING AUTHORITY

Hon Brendon Grylls MLA Minister for HousingIn accordance with section 63 of the Financial Management Act 2006, I hereby submit for your information and presentation to Parliament the Annual Report of the Housing Authority for the financial year ended 30 June 2016.

The Annual Report has been prepared in accordance with the provisions of the Financial Management Act 2006.

Paul Whyte Acting Chief Executive Officer 12 September 2016

Statement of Compliance 1

Housing Authority Annual Report 2015–16 | Statement of Compliance

ContentsStatement of Compliance

Overview Chief Executive Officer’s overview 4

Opening doors 6

Our scorecard 11

About us 13

Performance management framework 18

Agency PerformanceSetting the direction 26

Transforming the market 29

Stimulating the diversity of land and housing supply 34

Capturing benefits for affordable housing 49

Maximising benefits for social housing 59

Transforming our organisation 76

Signi�cant Issues Impacting the AuthorityOur environment 90

Significant issues and commitments 91

Disclosures and Legal ComplianceAuditor General’s opinion 96

Financial Statements 101

Key Performance Indicators 168

Ministerial directives 179

Other financial disclosures 179

Governance disclosures 185

Other legal requirements 187

Government policy requirements 190

AppendicesAppendix 1: Glossary 196

Appendix 2: Authority’s key functions 197

Appendix 3: Head Maintenance Contract 199

Appendix 4: Housing statistics 213

Appendix 5: Our offices 216

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Housing Authority Annual Report 2015–16 | Contents

OverviewThis section provides a review of the year by our Chief Executive Officer, an executive summary of our performance for the year, overview of the organisation’s role, structure and functions, and legislative arrangements.

Transitional H

ousing,

Hal

ls C

reek

One on Aberdeen, P

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3

Housing Authority Annual Report 2015–16 | Overview

Chief Executive O�cer’s OverviewSufficient diversity of affordable and social housing supply is vital to the State’s current and future economic, social and regional development. As an organisation, we have responded to the challenges facing housing in the State through the State Government’s Affordable Housing Strategy 2010-2020: Opening doors to affordable housing (Affordable Housing Strategy) and our Strategic Plan 2020.

The Authority’s diverse roles and activities are underpinned by the belief that safe and secure housing is fundamental to the strength and wellbeing of society. It is significant that our purpose and mission focuses on creating opportunities for people, and the ways in which we do that varies in response to changing housing market conditions and changing community demands.

Features of the past year have been tightening economic conditions, which has both increased demand for some of the Authority’s services and enabled others to access competitive home prices and transition to private rental and home ownership.

Regardless of the market cycle, people’s lives are dynamic and circumstances change. Over the past year, we have laid the foundations for greater mobility across the housing continuum and helping people transition will be a feature of our operations in the year ahead.

We continued to make a positive difference to the lives of Western Australians by delivering a pipeline of housing opportunity ranging from social housing through to land, the construction of new affordable homes and mortgage-lending.

Stimulating diversity of housing supplyIn line with our long-term vision, we continue to promote innovation and support a broader range of affordable and accessible land and housing in metropolitan and regional Western Australia. Our activities have included encouraging the development of smaller lots. Planning approval for 80 square metre lots at Ellenbrook will assist in creating and meeting demand for alternate products in the market.

The ‘Connected Living’ initiative was launched during the year to connect Perth people with affordable, well-designed housing opportunities in developments located near public transport and with future urban growth and activity potential. ‘Connected Living’ is the first transport-aligned initiative of this scale for Western Australia which will pave the way for future urban infill and transit oriented living in metropolitan Perth. It fulfils a key action in the State Government’s Affordable Housing Strategy 2010-2020: Aiming Higher Action Plan.

We continue to explore opportunities to diversify land and housing options for low to moderate income Western Australians, not catered for by the open market. We were proud to have the Foyer Oxford initiative recognised, as the winner of the overall 2015 Premier’s Award for Excellence. Delivered in partnership with Foundation Housing, Central Institute of Technology and Anglicare WA, Foyer Oxford is an integrated learning and accommodation centre providing accommodation for young men and women between 16 and 25 years, assisting them with life skills, training and educational opportunities.

Capturing the bene�ts for a�ordable housingOne of our core functions is to make home ownership a reality for people who might otherwise not have been able to afford a home. Since its inception, Keystart has enabled around 98,000 people to achieve home ownership. Since 2010, nearly 60 per cent of loans have been for new builds, supporting jobs and economic growth. In 2015-16, more than 2,400 Western Australians accessed a Keystart home loan, including more than 400 people who achieved home ownership through shared equity.

Affordable rental and home ownership opportunities within the housing continuum provide effective entry and transition points for people seeking housing appropriate for their circumstance and needs. We provided a diverse range of appropriate affordable rental and housing options. The Authority issued more than 13,000 bond assistance loans, constructed more than 800 new homes for sale, and delivered more than 3,500 properties under the National Rental Affordability Scheme (NRAS).

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Maximising social housing outcomesThe Authority provides housing support for more than 69,000 low income and vulnerable Western Australians. More than 2,800 applicants were housed during the year with more than half being families, seniors and singles with a priority need. The State Government committed $564 million for the Social Housing Investment Package. By 30 June next year, the package will halve the number of seniors and families with children who are on the priority waiting list for social housing with 1,000 new public housing dwellings across the State.

Through the Regional Services Reform Unit, the State Government is working with Aboriginal communities and all levels of Government on improving outcomes for people living in regional and remote locations. Appropriate and adequate housing is the foundation for improving social and economic participation in regional and remote communities, and leads to better education, health and employment outcomes. The Authority is actively engaged in the Regional Services Reform agenda.

Transforming the organisationWe are guided by our shared values of empower, explore, collaborate, own and trust. Living our values helps us to achieve better business outcomes for stakeholders, clients and each other.

We continued to invest in our people and overall organisational capability, particularly corporate systems. Major improvements included a new financial management system and our sustained focus on leadership development which has seen more than 600 staff participating in professional leadership programs since 2014-15.

Looking to the futureIn the year ahead there will be an increased emphasis on engaging with people to transition through the housing continuum. Opportunities are provided by us and our partners including the not-for-profit sector, local government and industry.

Transition is an essential element of the work we do in providing housing pathways to self-sufficiency for those who have the capacity. Transitioning can lead to a fairer and more equitable use of what are limited resources, across the State.

Sustainability, and water management and conservation in particular, will be an important focus for the Authority in the year ahead – exploring innovative water technologies to address water scarcity and the challenges of a drying climate.

We have committed and talented people working in the Authority, across a range of disciplines with shared values and a common purpose. I take this opportunity to acknowledge and commend their work during the year.

Our partners, customers and the community continue to be at the centre of all our decision-making and we look forward to the continued evolution of our organisation, services and culture to address the future needs of Western Australia.

Paul Whyte Acting Chief Executive Officer

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Opening doorsConstant evolutionAs Western Australia’s population grows, the State is continuing to ensure sufficient diversity and supply of affordable and social housing for now and into the future to help underpin our social and economic development and prosperity.

Delivering in accordance with the State Affordable Housing Strategy ensures that all Western Australians have access to housing which is appropriate, available and affordable for their needs. To date, this has required the Authority to drive a variety of responses through whole-of-government initiatives and policies centred around the concept of a ‘housing continuum’ - from the provision of crisis accommodation through to home ownership. Depending on individual circumstances, people have different capacities, preferences and aspirations for housing, and therefore a variety of needs and reasons for entry and transition along the continuum.

Over the past five years the Authority has worked to support a healthy and progressive affordable housing market that has sufficient supply at all points to accommodate demand. This involves all aspects of the property market including the provision of new vacant land, the construction of dwellings, urban consolidation mortgage lending and rental assistance.

As the conditions of the housing market are constantly changing, the focus of the Authority is always evolving. We are now at an inflection point and greater effort is now needed on facilitating transition along the continuum and helping people achieve their next home.

Shared home ownership client

Housing Service Officer with senior tenant

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Our unique role in Western AustraliaIn 2011, the Authority took on the lead role in delivering the State Government’s Affordable Housing Strategy. The first of its kind in Australia, the strategy was formulated against a backdrop of unprecedented population growth and housing demand, spurring sharply rising house prices. The unique position of the Authority has enabled it to deliver against the strategy with our own strategic response Strategic Plan 2020 in a way that delivers a result such that the whole is greater than the sum of the parts.

In addition to current housing policies and programs, the capabilities of a statutory authority combined with a strong asset base and private partnership investments has meant that the agency could create multiple entry points into housing more efficiently than if they were done in isolation.

To deliver these results the Authority works in close collaboration and partnership with the private, government and not-for-profit sectors enabling us to find new ways of increasing the supply of affordable housing in Western Australia. We will continue to leverage our statutory, market and relationship capabilities to deliver in to the future.

The challengeSuccessful transitioning of residents at the right time into their “next home” is vital to enable the property market and community to grow and function effectively. In addition, appropriate, available and affordable housing is not only critical for the wellbeing of individuals and families, but is also a large component of facilitating economic wealth in Western Australia and is therefore vital for the effective operation of the economy.

The Authority has concentrated its efforts on injecting supply of housing across the continuum, however we must now also take an active role in helping shape the future urban landscape. Our role is not only to provide housing options, but also to create an environment that inspires transition into, across and through the continuum.

Looking forward, this will require the Authority to find better ways to facilitate the transition of those on the “CUSP”. We can actively support transition by:

�� catalysing demand for transition

�� unlocking barriers to transition

�� supporting those in transition to the next level

�� providing opportunity for all.

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Our MissionWorking in partnership

to build economic and social prosperity by enabling Western Australians to have

a place to call home

Our ValuesEmpower

Explore Collaborate

Own Trust

Our VisionOpening doors

EMPOWERWe enable each other to be the best we can be

OWNWe are individually

accountable and collectively

responsible

TRUSTWe act with

integrity and do what is right

EXPLOREWe challenge,

learn and adapt to excel

COLLABORATEWe work with

and support others because together we achieve more

OUR VALUES

Strategic direction Our vision, mission and values have been developed to address the current and future state of the Authority. To deliver successfully against this vision and mission, the Authority constantly takes in to account the current and future operating environment. This informs how we develop our strategic directions and allocate our resources.

We will continue to aim to utilise our assets, statutory capabilities and market levers to best achieve social and economic outcomes in a changing environment.

VisionThe vision of the Authority is to open doors to Western Australians. It has done this by supplying affordable land and dwellings, providing policy advice to the Minister for Housing and delivering key government services throughout the State including the provision of dwellings and land, leasing, financial assistance and development.

MissionThe purpose of the Authority is derived from the Housing Act 1980, which provides a clear policy mandate to create affordable housing opportunities for people the market overlooks. With a changing demographic and a changing set of needs within the market, the Authority aims to ensure that affordable housing supply meets demand across the State.

To realise the vision of ‘opening doors’, the Authority plans to work alongside various partners, including other government agencies, the private sector and the not-for-profit sector. Working together enables the agency to build greater economic and social prosperity and to transform the broader housing market.

ValuesA set of five values have been identified which guide the Authority’s daily activities and the way the agency engages with its employees, customers and stakeholders.

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DirectionOur strategic direction is driven by the State Government’s policy priorities articulated in the Affordable Housing Strategy. We are focused on providing holistic responses to housing challenges, using our strengths to deliver better housing opportunities for Western Australians. Our ability to interact with and transform the market and the organisation is critical to our success. We operate as an integrated whole, utilising our development, lending and rental property management functions to deliver diversity, affordability and social housing outcomes.

Stimulate diversity of

housing supply Capture benefits for affordable

housing

Maximise social housing

outcomes

Transition

Transform

Build

Housing

The Strategic Plan 2020 aligns and prioritises our activities over the coming years. The plan reaffirms our vision and supports our ongoing commitment to the State Government’s Affordable Housing Strategy. It guides our decisions and maps out what we can all do to achieve our targets and make housing affordable, appropriate and available for low to moderate income Western Australians.

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We are transformingOver the past 100 years, we have continuously adapted and responded to changing market and economic conditions.

As an organisation, we have innovated and developed new pathways and opportunities for Western Australians to enter and progress along the housing continuum. Partnerships have been created and maintained with business and the not-for-profit sectors enabling us to deliver more to the community. Our contribution to housing supply diversity and affordability has been life changing for many Western Australians.

Our challenges continue with our emerging focus on actively facilitating transition through the housing continuum.

In addition to the new policies and approaches we will develop, we need to be flexible in our organisation and evolve ourselves to enable the continued contribution to the lives of the individuals, families and communities in Western Australia. To this end, we have challenged ourselves to transform the organisation to be even more efficient and effective in to the future.

One on Aberdeen

Transitional housing partici

pants

Social housing tenant

Social housing tenant

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Our scorecardOperational performance

Live 1/7

Homes for

adults and children

100linked to employment and education outcomes in West Kimberley

Planning approval

East Greenwood

Ellenbrook

‘Concept to Keys’

National Relay Service Friendly

EMPOWERWe enable each other to be the best we can be

OWNWe are individually

accountable and collectively

responsible

TRUSTWe act with

integrity and do what is right

EXPLOREWe challenge,

learn and adapt to excel

COLLABORATEWe work with

and support others because together we achieve more

OUR VALUES

TRANSFORM (ORGANISATION)TRANSFORM (MARKET) CAPTURE BENEFITS FOR AFFORDABLE HOUSING

STIMULATE DIVERSITY OF HOUSING SUPPLY

MAXIMISE BENEFITS FOR SOCIAL HOUSING

Innovation - Follow-You print

Premiers Award - Foyer Oxford

Property Council Awards One on Aberdeen

Perth NAIDOC Program of the Year Intensive Family Support

Housing Program

Australasian Reporting Awards silver award for annual report 2014-15

CitySwitch Green Office Award

80 mtrs

80 mtrs

80sqm

Average priority wait time reduced

Electrical Safety Device Program

Tenant management

Maintenance spending

IMPROVE MANAGEMENT

OF PUBLIC HOUSING

Award winning housing agency

Armadale Butler East Perth Gosnells

Midland Perth Wellard

86%

63%

in the lower quartile

below median price

100

80

60

40

20

0

Dwellings in Western Australia

Lots in Western Australia

in the low

er quartile

below median price

32%

77%

applicants housed1,529 priority

housing opportunities

3,453

411social housing

553affordable rentals

2,489affordable home ownership

New target

30,000

23,953

assisted into private rentals with a Bond

Assistance Loan

More than

13,000

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Financial performanceThis is an executive summary of our financial performance (Income Statement) at 30 June 2016 and source and application of funds for 2015-16. Further information is available in the Financial Statements contained in the Disclosures and Legal Compliance section of this report.

Figure 1: Financial performance (Housing Authority) for the year ended 30 June 2016.

Value of Net Assets

$14.54b

Expenses

$1.43b

Revenue (inc State Grants)

$1.41b

Loss

$0.02b

Rent (Government Regional Officers’ Housing and key worker)

Keystart dividend

Other operating income (including Interest)

Commonwealth

State (incl borrowings, Royalties for Regions and other government departments)

Land and property development

Rent (housing)

10%

5%

3%

16%

26%

27%

13%

Total funding

18%5%

6%

7%

5%

18%

2%17%

9%

13%

Capital and recurrent

expenditure

Net increase in cash

Construction and spot purchase (including Government Regional Officers’ Housing and key worker)

Affordable housing inventory

Land development and acquisition

Land and housing development

Other capital expenditure

Debt

Aboriginal housing

Maintenance, rates and improvements

Program operating and administrationNote: Excluding opening cash at bank and Keystart borrowings.

Figure 2: Source and Application of Funds (Housing Authority) for 2015-16.

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About usEnabling legislationThe Housing Authority is a statutory authority established under the Housing Act 1980 to provide and improve housing and accommodation in Western Australia. The Authority also provides housing for State Government employees through administration of the Government Employees’ Housing Act 1964.

Responsible MinisterThe Housing Authority and the legislation administered are under the control of the Hon Colin Holt MLC, Minister for Housing.

In August 2016, the Hon Brendon Grylls MLA was appointed as the new Minister for Housing.

Legislation administeredThe Housing Authority assists the Minister for Housing to administer the following Acts:

�� Country Housing Act 1998

�� Government Employees’ Housing Act 1964

�� Housing Act 1980.

Changes to legislation administeredEffective from 1 July 2015, the Housing Regulations 1980 were amended to increase a range of conveyancing fees charged by the Authority.

Our key functionsWe realise our vision of ‘opening doors’ for Western Australians through the delivery of services and programs across the State for people on low to moderate incomes.

SOCIAL RENTALHOUSING

VERY LOW INCOME< $45,000

LOW INCOME$45,000 – $70,000

MODERATE INCOME> $70,000

AFFORDABLE RENTALHOUSING

SHARED EQUITY HOME OWNERSHIP

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Organisational chart

Figure 3: Authority's organisational structure as at 30 June 2016

Minister for Housing Hon Brendon Grylls MLA

Chief Executive Officer Paul Whyte (Acting)

Office of the Chief Executive Officer

Project Management Office

Strategic Communications

Workforce Development

Organisational Transformation

General Manager Susanne Martins (Acting)

Finance

Corporate Services

Business Services

Executive Director Louise Avon-Smith (Acting)

Asset Management and Planning

Business Development

Complex Projects

Housing Programs

Land and Housing Construction

General Manager Nigel Hindmarsh (Acting)

Commercial OperationsStrategy and Policy

General Manager Tania Loosley-Smith

Inter-Governmental Outcomes

Social Housing Policy

Market Innovations and Partnerships

General Manager Greg Cash

Service Delivery

Aboriginal Housing and Client Services North

Client Services South

Service Delivery Central

Maintenance

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Our structureWe deliver our services through the Office of the Chief Executive Officer and five divisions:

�� Strategy and Policy

�� Commercial Operations

�� Service Delivery

�� Organisational Transformation

�� Business Services.

O�ce of the Chief Executive O�cerThe Office provides support and executive services to the Chief Executive Officer including:

�� ministerial and parliamentary services

�� media communications

�� internal audit requirements.

The Office also supports the Director General of the Department of Housing, a position held concurrently by the Authority’s Chief Executive Officer.

Strategy and PolicyThe Division provides leadership, coordination and advice for the Affordable Housing Strategy by:

�� reforming the social housing system to act as a safety net for the most vulnerable and a pathway for those with the capacity for self-su�ciency

�� developing new policy options, pathways and market-based solutions to help increase affordable housing options

�� working across government to deliver on systemic changes in support of affordable housing and market innovation

�� negotiating reform priorities and funding arrangements.

Service DeliveryThe Division leads delivery and management of public housing services and programs to Western Australians by:

�� coordinating effective, efficient and value for money housing maintenance services

�� undertaking effective continuous improvement in the provision of property and tenancy management services

�� planning, enabling and delivering Aboriginal remote and town based housing services.

Commercial OperationsThe Division enables and supports social and affordable housing through the optimisation of the Authority’s assets in the areas of:

�� housing construction programs for public and community housing, transitional housing, supported housing for people with complex needs, housing for government employees in regional Western Australia and crisis accommodation

�� complex construction and development projects including large scale apartment projects, and other projects delivering State Government commitments

�� residential land developments and urban renewal programs

�� built form and civil construction activities to increase housing stocks, land and housing.

Organisational TransformationThe Division implements and supports the strategic direction, culture and capabilities required to take the Authority into the future through:

�� strategic development planning

�� strategic communications

�� workforce development and innovation

�� project and change management capability.

Business ServicesThe Division supports the Authority to function efficiently through the provision of:

�� corporate services including corporate governance, performance reporting, risk management, business planning, facilities management, human resource management, information, communication and technology services, records management, legal and legislative services, securities and conveyancing services and urban planning, design and approvals

�� financial services.

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Paul Whyte Acting Chief Executive O�cer Paul commenced the role of Acting Chief Executive Officer for the Authority in March 2015. He is concurrently the Acting Director General of the Department of Housing. Before joining the Authority in September 2009, he was acting Chief Executive Officer at Landgate and held the permanent position of Executive Director, Business Development.

Prior to joining Landgate in 2001, Paul was a member of the Valuer General’s Office Corporate Executive, and Policy Adviser to the Western Australian Treasury Corporation. In the private sector, Paul has been managing director of a number of successful established and start-up businesses. Paul holds a Bachelor of Commerce and Master of Business Administration, and is a Certified Practising Accountant. He is a member of the Western Australian Planning Commission, City of Perth Planning Committee, Government Council for Family and Domestic Violence, Aboriginal Affairs Coordinating Committee and the Strategic Regional Advisory Council supporting the Regional Services Reform Unit.

Our executive

Tania Loosley-Smith General Manager, Strategy and PolicyTania joined the Authority in August 2008 and was appointed the General Manager of the Strategy and Policy Division in December 2009. This Division provides leadership in the design and implementation of the Affordable Housing Strategy and related initiatives. This involves generating policy options, pathways, and market-based solutions to address social and affordable housing demand, trialling new partnerships with the private and community sectors, supporting sustainable development of social housing, and negotiating national reform priorities and funding arrangements.

A board member of Ellenbrook Management Pty Ltd and former chair of the National Policy and Research Working Group supporting the Housing Ministers, Tania has a Bachelor of Social Science and an Executive Masters Degree in Public Administration.

After working in the non-government sector and Westpac, Tania joined the Public Service in 1994 and has also worked at the Disability Services Commission and Landgate.

Greg Cash General Manager, Service DeliveryGreg commenced the role of General Manager, Service Delivery in 2014 and is responsible for delivery, management, and maintenance of public housing across Western Australia. Greg is also responsible for Western Australia’s award winning delivery of new homes, refurbishments, and a new approach to tenancy management in remote Indigenous communities via the National Partnership Agreement on Remote Indigenous Housing (NPARIH).

Greg’s experience spans 20 years with the Authority including Senior Executive support positions, Regional Manager of the Metropolitan North region, and determining strategic policy for the Authority’s market-facing a�ordable housing activities.

Greg is a board member of Ellenbrook Management Pty Ltd, Woburn Park and Golden Bay joint ventures.

A Murdoch University graduate with degrees in Politics and International Studies and Public Policy and Management, Greg has brought a strong focus on governance, accountability and performance management to the Service Delivery portfolio.

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Nigel Hindmarsh Acting General Manager, Commercial OperationsNigel has broad leadership and management experience and has worked at senior levels across the public sector and in Defence Engineering. Nigel is responsible for the delivery of all housing and land development programs conducted by the Authority, as well as the strategic planning and management of the Authority’s asset portfolio.

Before joining the Authority in October 2013, he was Strategic Planner and Operations Manager for the Ministry of Defence during the London 2012 Olympic Games. Nigel served as an officer in the Corps of Royal Engineers in the British Army for 20 years prior to emigrating to Perth. Since joining the Authority, he has held the positions of Director Land and Housing Construction and Acting General Manager.

Nigel holds a Bachelor of Civil Engineering. He is a board member of Ocean Springs Pty Ltd (Butler Joint Venture) and a member of the State Infrastructure Coordinating Committee and the City of Perth Planning Committee.

Louise Avon-Smith Acting Executive Director, Business Services Louise has over 20 years leadership and management experience across a range of disciplines including strategic development, human resources and change management with overarching experience in a wide range of sectors including mining, energy, automotive and customer service. Since joining the Authority as Manager Human Resources in November 2015, Louise has been accepted into the Public Sector Commission Executive Leadership Pilot Program and appointed acting Executive Director of Business Services in June 2016.

Louise holds a Bachelor of Business and post Graduate Diploma in Sustainability, and is a Fellow of Leadership Western Australia and a graduate and Member of the Australian Institute of Company Directors.

Susanne Martins Acting General Manager, Organisational Transformation Susanne held the Acting General Manager position for eight months in 2014-15 and more recently between April and July 2016. She has substantial experience in organisational reform and strategy, project and change management, learning and development and human resources. Before joining the Authority, she had a variety of roles over 25 years in banking and played a major role nationally in people and culture change during the merger and acquisition of Bankwest by Halifax Bank of Scotland.

Susanne holds a Masters of Tertiary and Adult Education and is a member of the Australian Institute of Company Directors.

Corporate Executive changesDuring the year, Duncan Mackay left the position of General Manager of Organisational Transformation in October 2015 to take up another opportunity at the Regional Reform Unit. Steven Altham acted in the role of General Manager between October 2015 and March 2016, before Susanne Martins commenced in an acting capacity in April 2016. In addition, the Executive Director of Business Services, Jeremy Hubble left the Authority to take up a position at the Lotteries Commission in March 2016. Richard Barry acted in the role of Executive Director from March to June 2016, before Louise Avon-Smith commenced in an acting capacity in June 2016.

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We measure our performance against key performance indicators and deliverables that are set out in our outcome based management framework.

Outcome based management frameworkThe Authority enhances the quality of life and wellbeing of Western Australians by satisfying the fundamental human need for shelter. In the wider context, affordable, available and appropriate housing contributes to positive social outcomes in health, education and employment.

Specifically, the Authority contributes by providing housing through rental assistance, home finance and land development activities for eligible Western Australians who may not otherwise be able to afford housing.

The Authority also contributes through Government Regional Officers’ Housing, which provides government employees with suitable housing in regional areas. This supports the Government’s commitment to delivering public services such as education, health and policing throughout the State.

Changes to outcome based management frameworkThe Authority’s Outcome Based Management Framework did not change during 2015-16.

Performance management framework

Working with

te

nants to

mee

t the

ir n

eeds

Golden Bay

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Figure 4: The Authority’s outcomes, services and key performance indicators and relationship to Government goals

ServiceGovernment GoalHousing Authority

Agency Level OutcomeE�ciencyMeasures

E�ectivenessMeasures

Results-Based

Service Delivery

Greater focus onachieving results in keyservice delivery areas

for the benefit of allWestern Australians

The extent to which theHousing Authority is

responsive to the housingneeds of eligible

Western Australians

Home Loans

Land and Housing Supply

Government RegionalO�cers’ Housing

Waiting times foraccommodation –applicants housed

The extent to which theGovernment Regional

Officers’ Housingis responsive to the

provision of housing tomeet the needs of eligible

Western AustralianGovernment employees

Housing eligibleWestern Australians

Operating cost perrental property

Operating cost percurrent loan account

Operating cost perlot developed

Operating cost perproperty sold

Operating costper property

Rental Housing

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Resource Agreement SummaryThe following summary of performance information (financial and non-financial performance) is the subject of a Resource Agreement signed by the Minister, the Housing Authority and Treasurer under Part 3, Division 5, of the Financial Management Act 2006.

Financial performanceTable 1: Summary of financial performance for 2015-16

Indicator Target (1)

$’000Actual (2)

$’000Variation

$’000Explanation of significant variance

Total Cost of Services $1,806,805 $1,429,090 -$377,715 Variance is primarily due to:

�� Affordable housing underspends due to significantly lower number of commencements in 2014-15 than forecasted pushing expenditure into 2016-17 along with a reduction in sales with the slower market.

�� Cost of Sales for land program is down due to reduction in Joint Venture Investment, deferral of all future land program expenditure on the Osprey division and general slowing market conditions.

�� Decrease in expenditure for Aboriginal housing with respect to NPARIH due to lower than expected planning costs, change in the scope of roads and delays in expenditure into next year. Similarly there have been many cost savings against construction costs.

�� Decrease in cost of assets transferred to community housing, which is now delayed until 2016-17.

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Indicator Target (1)

$’000Actual (2)

$’000Variation

$’000Explanation of significant variance

Net Cost of Services $117,485 $111,272 -$6,213 Variance is mainly due to:

�� A reduction in rent revenue mainly due to a decrease in Government Regional Officers' Housing agency rents especially within the Pilbara and Kimberley regions and less demand from agencies for Government Regional Officers' Housing properties.

�� A reduction in sales with a low number of commencements in prior years coupled with extended construction timeframes causing a flow on effect for completions and subsequent sales.

�� Additional pressures have been felt across the board with falling property prices.

Total Equity $14,570,215 $14,542,536 -$27,679 An increase in accumulated surplus is offset by a downward revaluation of assets as part of the annual property value adjustment process. Property values are adjusted annually for rental properties along with Government Regional Officers’ Housing and key service worker properties.

Salary Expense Level Not applicable

Borrowing Limit $4,982,062 $5,001,197 $19,135 Additional Osprey debt not identified at time of original budget offset by lower than expected Keystart debt.

Working Cash Limit Not applicable

Notes: (1) The targets were derived from the 2015-16 Budget Papers (Division 74, Part 18). (2) As specified in the Financial Statements (Housing Authority) contained in the Disclosures and Legal Compliance section of this report.

Table 1: Summary of financial performance for 2015-16 (continued)

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Key Performance IndicatorsTable 2: Summary of non-financial performance (Key Performance Indicators) for 2015-16

Indicator Target (1) Actual (2) Explanation of significant variance

Outcome and effectiveness indicators Outcome – Housing eligible Western Australians

Effectiveness indicator 1:The extent to which the Housing Authority is responsive to the housing needs of eligible Western Australians

0.81 0.95 There were a greater number of assistances relative to expressed unmet demand. This variance was primarily due to a higher than anticipated number of bond assistance loans provided as a result of a reduction in residential rental prices and an increase in the vacancy rate in the private rental market.

Effectiveness indicator 2:Waiting times for accommodation – applicants housed (average) (3)

148 weeks 153 weeks

Effectiveness indicator 3:The extent to which the Government Regional O�cers’ Housing is responsive to the provision of housing to meet the needs of eligible Western Australian government employees

95% 97%

Services and efficiency indicators

Service 1 – Rental Housing Efficiency indicator:Operating cost per rental property $15,619 $15,342

Service 2 – Home Loans Efficiency indicator:Operating cost per current loan account $2,002 $2,395 This was the result of an increased provision for doubtful

debts on the loan portfolio, and expenditure on the part divestment of the loan portfolio.

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Service 3 – Land and Housing Supply Efficiency indicator:Operating cost per lot developed $19,014 $25,107 This variance was primarily due to lower lot production

driven by a significant softening in market conditions.

Efficiency indicator:Operating cost per property sold $19,422 $31,737 While operating expenses were less than the Target due

to the Authority’s successful management of costs, the number of properties sold was lower than anticipated resulting in the higher cost per property sold. The Target set in 2015-16 State Budget for the number of sales was adjusted down at the 2015-16 Mid-Year Review due to a change in market conditions and a re-focus of the Authority’s priorities on the delivery on the Social Housing Investment Package. The Authority expects this efficiency indicator to be realigned to expected target levels in future years.

Service 4 – Government Regional Officers’ HousingEfficiency indicator:

Operating cost per property (4) $32,557 $27,912 This variance was primarily due to the continual reduction in lease costs, particularly in the Pilbara region. Savings were also made on improvements and depreciation as surplus properties were sold throughout the year, thereby eliminating the associated costs.

Notes: (1) The targets were derived from the 2015-16 Budget Papers (Division 74, Part 18).(2) As specified in the audited Key Performance Indicators 2015-16 contained in the Disclosures and Legal Compliance section of this report.(3) The 2015-16 Key Performance Indicators in the Disclosures and Legal Compliance section of this report also includes the median waiting time in weeks for applicants housed and is audited by the Office of

the Auditor General.(4) The lease function is operated on a cost neutral basis which is fully recouped from the Authority’s client agencies.

Table 2: Summary of non-financial performance (Key Performance Indicators) for 2015-16 (continued)

Indicator Target (1) Actual (2) Explanation of significant variance

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Hou

sing

Aut

horit

y st

aff m

embers

24


Agency performanceA review of how we performed during the second year of our Strategic Plan 2020 and delivered on commitments within the Affordable Housing Strategy.

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Housing Authority Annual Report 2015–16 | Agency Performance

State Government’s A�ordable Housing StrategyIn June 2015 the Authority passed the State Government’s minimum target of 20,000 homes by 2020 under the Affordable Housing Strategy. The following month the State Government committed to a new target of 30,000 homes by 2020.

In support of this, the Affordable Housing Strategy 2010-2020: Aiming Higher Action Plan was released, outlining the key areas of focus across the State Government as it continues to respond to the affordable housing challenge.

The key philosophies of working across the housing continuum and focusing on value-adding partnerships with the private and not-for-profit sectors continue to underpin the Affordable Housing Strategy and drive its objectives and initiatives. By combining the strengths of different sectors, it has been possible to deliver a larger number and wider range of affordable housing options, in a more cost-effective manner.

The Affordable Housing Strategy also recognises the important roles that all levels of government play in enabling the supply and diversity of housing in the broader housing market and the impact that this can have on wider affordability.

Setting the direction

AffordableHousingStrategy

Public Housing Public Housing

Community Housing

AffordablePrivate Rentals

HomeOwnership

Very Low Income Low Moderate

With a clear focus on people on low to moderate incomes who face significant barriers within the housing continuum, the Strategy is changing lives and achieving significant social and economic benefits for Western Australia. It has already delivered close to 24,000 additional homes – improving the lives of more than 50,000 people who are now renting affordably or have a home which they own.

The Affordable Housing Strategy continues to demonstrate the value and outcomes of State Government partnerships with the private and not-for-profit sectors to deliver housing more effectively, at greater scale, and lower cost to the taxpayer. The smart use of these partnering arrangements and the efficient leveraging of government assets remains a core plank of the affordable housing response into the future.

Figure 5: Housing continuum.


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Progress highlights 1 January 2010 to 30 June 2016Through partnerships with the private and community sectors, the Authority has delivered close to 24,000 affordable homes over the past five and a half years. Success in achieving this milestone is the result of many factors, including innovations in procurement, design, construction and finance to increase the supply of affordable and social housing for people on low to moderate incomes.

Achievements since its inception in January 2010 include:

�� 5,087 new social houses to help the most vulnerable in our community who have no other viable housing options.

�� 287 additional houses have been delivered by community housing growth providers.

�� 693 houses constructed and 1,544 refurbished in towns and remote Aboriginal communities, meeting targets under NPARIH with the Commonwealth Government.

�� 3,506 homes delivered under the National Rental Affordability Scheme, giving low to moderate income people the ability to access affordable rental accommodation in Perth and regional Western Australia.

�� 14,538 Keystart loans for low and moderate income households

�� 2,288 shared equity loans for specific target groups, including for public housing tenants wishing to buy a home, people with disability, Aboriginal people and sole parents, as well as the SharedStart home ownership scheme.

�� 66,826 bond assistance loans issued.

�� 12,990 lots produced by the Authority and its joint venture partners for sale to market as well as for State Government housing programs, with an average of 77 per cent of single residential lots being sold below the Real Estate Institute of Western Australia (REIWA) median price.

Social housing for those with special needs

Opening Doors hom

e ow

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Transform

Transition

Build

Housing

We will strategically partner to stimulate and diversify land and housing supply

We will support a housing safety net for the community’s most vulnerable, as well as a pathway to self-sufficiency for those who have the capacity

We will capture the benefits of supply for low to moderate income earners

We will continue the transformation of our organisation and the broader land and housing market

Maximise social housing

outcomes

Stimulate diversity of

housing supply Capture benefits for affordable

housing

Figure 6: Strategic Plan 2020

Strategic Plan 2020The State Government’s Affordable Housing Strategy is supported at an agency level through achieving specific outcomes. Our Strategic Plan 2020 sets the direction for the Authority to help build economic and social prosperity in Western Australia by enabling Western Australians to have a place to call home.


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We will continue the transformation of the broader land and housing market to:

�� actively engage and support partners and industry to deliver market transformation

�� facilitate, partner and deliver in a manner that builds the economic and social development of Western Australia

�� enable the ongoing delivery of affordable housing to Western Australia by identifying and encouraging sustainable access to capital.

Transforming the marketHomes for

adults and children

100linked to employment and education outcomes in West Kimberley

Planning approval

East Greenwood‘Concept to Keys’

80 mtrs

80 mtrs

80sqmEllenbrook

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The Authority recognises that housing affordability is a challenge that cannot be addressed by the State Government alone. Structural reform in the housing market is needed to improve overall supply and diversity to meet population growth and needs. Our role is to facilitate, lead and influence market change.

Other agencies, such as the Department of Planning, complement this role by adjusting regulatory settings to encourage greater diversity and innovation in the development industry. Leading the market to deliver more affordable land and housing requires ‘out-of-the-box’ thinking and innovation. We need to do things differently, and identify sustainable access to capital to improve diversity of supply for Western Australians on low to moderate incomes. This cannot be done on our own. Through a focus and established history of successful partnerships with the private and not-for-profit sectors, we continue to engage industry and market particpants to deliver market transformation.

We are focused on innovative, ‘game changing’ transformational activities that challenge and alter market behaviour or demonstrate new ways of working or doing business to diversify housing supply.

Transformational developmentsIn 2015-16, a number of transformational developments were realised with our partners:

�� new homes that are linked to employment and education outcomes for Aboriginal households in the West Kimberley

�� planning approval received for a ‘concept to keys’ residential development that demonstrates a new way of delivering affordability, diversity and density in a middle-ring Perth suburb

�� planning approval received for smaller residential lots (sub 100 square metre) in one of the Authority’s joint ventures to drive affordability.

West Kimberley Transitional housing launch

SNAPSHOT

The West Kimberley Transitional Housing Program has delivered 31 properties in Broome and 18 properties in Derby, for the benefit of the local Aboriginal community.

The program is a partnership between the Housing Authority and the Kimberley Development Commission that provides stable, affordable housing to Aboriginal people in Broome and Derby who are engaged in employment or training. Program participants must also ensure their children attend school regularly.

Participants enter the program with the ultimate goal of moving into private rental or purchasing their own home. As of 26 April 2016, the program received 132 applications and 197 expressions of interests for the houses in Broome and Derby.

This transformative initiative was made possible by a $33 million investment from the State Government’s Royalties for Regions program. The West Kimberley Transitional Housing Program is committed to delivering a minimum of 60 new dwellings. The remaining properties will be delivered in stages throughout 2016 and early 2017.


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East Greenwood – ‘concept to keys’The East Greenwood housing project presents an opportunity to demonstrate innovative solutions in order to deliver affordable medium density housing options in middle-ring suburban locations. In particular, it enables demonstration of an ‘integrated housing development’ whereby housing products are fully designed, constructed and sold to purchasers.

Australand Property Group was awarded the tender to partner with the Authority in July 2013 to develop a contemporary sustainable residential housing development of more than 115 dwellings. The company was then acquired by Frasers Centrepoint Limited in August 2014. The Authority successfully executed a Development Management Agreement with Frasers Property Limited on 25 November 2015 which is a major milestone for the future development of the site.

The Local Structure Plan had community input and was approved by the Western Australian Planning Commission in February 2016. Civil works are anticipated to commence late in 2016.

Smaller residential lotsIn March 2016 approval was received by the Western Australian Planning Commission and the Council for the development of 80 square metre residential lots. Civil works have since commenced in the Authority’s Ellenbrook joint venture, showcasing innovative small lot products. Completion is currently expected in May 2017.

Ellenbrook townhouse

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and has regard for the land being situated over the Gnangara groundwater mound. The strategy recognises the need to protect bores for public water supply and conservation category wetlands. It considers alternative sources of non-driving water for the irrigation of future areas of public open space. This will be the subject of further investigation in 2016-17 with the Department of Water.

In Brabham, the Authority is investigating alternatives for the irrigation of future areas of public open space. Recycling of wastewater is under consideration, given that groundwater usage will be severely limited in the area. Initial assessment has indicated that a recycling scheme could generate surplus water including opportunities to replenish the groundwater aquifer. The Authority is collaborating with the Department of Water to assess the feasibility of managed aquifer recharge for Brabham. This will inform decisions about the preferred non-potable water solution.

It is the Authority’s intention to focus 2016-17 as the “year of water management and conservation”, with a priority of exploring innovative water saving technology, to be applied to all of the Authority’s new developments and homes.

Greening the middle suburbsIn partnership with the Cooperative Research Centre for Spatial Information, the Authority continued participation in the ‘Greening the greyfields: precinct visualisation and community engagement’ research project. This is an ongoing project involving Curtin University, Swinburne University, the University of Canterbury and the Authority. The project seeks to develop strategies and tools to help enhance greyfield areas – middle suburban redevelopment of failing or underused real estate assets or land.

In 2015-16, the Authority continued to provide technical and business input into the visualisation toolkit including the design and development of a range of Western Australian location-specific housing typologies for affordable suburban and infill housing. In addition, the Authority has provided input into the design and usability of the software interface.

Work is ongoing in terms of feasibility analysis of integration of the developed intellectual property and toolkit into existing systems, and possible commercialisation of the methodology and toolkit in partnership with the private sector.

Research and developmentThe Authority continued to collaborate and participate with research institutions and universities to develop innovative, sustainable solutions to help transform the housing market and build industry capability. In 2015-16, the Authority continued to support a variety of progress development initiatives.

Water managementThe Authority has actively contributed to initiatives of the Co-operative Research Centre for Water Sensitive Cities for a number of years, with a seat on the Essential Participants Reference Group. It is one of more than 90 partners with the Co-operative Research Centre, supporting independent studies to transform the way new cities are designed and to improve existing ones through better urban water management.

With the aim of establishing the Bentley Regeneration Project as a best practice demonstration site, the Co-operative Research Centre’s vision in conjunction with the Authority, is to apply the latest water sensitive innovations in housing design, construction and urban planning within the project area, with a strong focus on sustainability, a vibrant village lifestyle, and housing affordability. A result of a workshop on the Authority’s Bentley Regeneration Project held in 2015, between representatives from the City of Canning, University of Western Australia, Department of Water, and Monash University, is the release in 2016 of the ‘Ideas for Bentley’ paper.

The Authority is also seeking to actively manage the drainage and water quality issues associated with its Keralup land holding and has commenced a soil amendment trial in conjunction with the Department of Water, using hybrid Nanoclay, in an attempt to reduce nutrient export into the Peel - Harvey estuary system. This is complemented by a program of water monitoring. The Authority is proposing to undertake further trials in 2016-17 to reduce phosphorous release into the waterways as well as undertaking site investigations aimed at devising plans for improving the drainage systems on the land. It is anticipated that reducing areas of inundation will also provide the added bene�t of reducing mosquito breeding sites which are prevalent in the area.

The Authority has prepared a District Water Management Strategy for South Pinjar. This has been undertaken in collaboration with the Department of Water


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Improving construction methods In 2015-16, the Authority continued its support for research into the use of alternate building materials, in particular rammed earth as a construction material for use in remote Aboriginal communities. With funding from the Australia Research Council, the project undertaken by the University of Western Australia addresses the lack of an Australian Standards code for the use of rammed earth construction. Other partners in the research project are Ramtec Pty Ltd, Scott Smalley Partnership Pty Ltd and Durham University.

The first phase of the project tested two separate construction methodologies. A draft laboratory testing standard was produced and submitted to Standards Australia, pending support from rammed earth practitioners. This will be the first rammed earth testing Standard of its kind in the world, and demonstrates the University of Western Australia research team’s leadership in this field.

The second phase of the research which commenced in September 2014, involves the monitoring and analysis of both buildings’ performance and the variance between conventional rammed earth and insulated rammed earth. Data collection, analysis and recording of the thermal performance will continue in 2016-17 during which time the final report will be completed and submitted to the Australian Research Council. It is anticipated that the outcome of this project will inform the Building Code of Australia on more accurate thermal assessment methods to evaluate the performance of rammed earth construction systems.

Sustainable Built Environment National Research CentreThe Authority is a participant in research through the Sustainable Built Environment National Research Centre. Currently the Authority is actively involved in projects relating to modular construction and valuing social housing.

National Housing Conference comes to PerthFor the first time in 10 years, the biennial National Housing Conference was held in Perth, bringing together more than 100 international and local experts. The Housing Authority co-convened the conference with the Australian Housing and Urban Research Institute (AHURI).

“The conference was an excellent opportunity for the Authority to not only share its expertise and provide thought leadership, but also learn from others involved in tackling the continuing issues of housing undersupply and affordability,” Tanya Steinbeck, A/Director Social Housing Investment Package said.

Topics discussed included housing and labour markets, urban growth and renewal, Indigenous economic participation, and the impact on housing from Australia’s tax system review.

During the conference, delegates had the opportunity to visit some of the Authority’s key developments, including One on Aberdeen, Adara Apartments, Living Space, Ellenbrook and Somersault.

Positive feedback was received from interstate guests who were impressed with the work being undertaken in Western Australia.

SNAPSHO

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We strategically partner to stimulate and diversify land and housing supply to:

�� facilitate and lead innovation in the housing market

�� optimise the use of assets the Authority either owns or can access, directly or in partnership

�� plan and deliver enduring infill developments

�� facilitate diversity of housing supply for specific target groups.

Through our vision of ‘opening doors’, the Authority leads a vital change in the supply of affordable housing in Western Australia to deliver long-term benefits to the State. Our role in stimulating the diversity of land and housing supply ensures ongoing supply and helps to moderate prices at the lower cost end of the market.

Population projections for Perth estimate an extra million people will live in Perth within 10 years. Increasing density on key transport corridors and diversity of housing supply in medium and high density developments is essential.

The breadth of our development activity ranges from master planned urban communities to apartment developments, medium scale infill to urban renewal and projects around key transport links and activity centres. We value embedding social and affordable housing options across all locations and housing types to provide an opportunity for all Western Australians to participate socially and economically.

Stimulating diversity of land and housing supply


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Lots in Western Australia

in the lower quartilebelow median price

32%

77%

Residential land supplyThe Authority works with partners to develop land for its social, community and affordable housing programs. In 2015-16, the Authority continued to improve the supply of affordable vacant residential land with a strong focus on lots in the lower price quartile of the market.

In addition, the revenue from land sales subsidises the operating costs of social housing and broader housing programs. In 2015-16, 1,600 lots were developed.

A total of 1,370 lots were sold in 2015-16. Of the private residential lots sold, 77 per cent were below the REIWA median land price, and 32 per cent were below lower quartile price, directly supplying affordable land to the market.

Our land activities include:

�� land development – major new land development programs conducted either by the Authority or in joint undertakings with the private sector in both metropolitan and regional areas

�� urban renewal – the redevelopment and deconcentration of locations with high public housing presence to provide more sustainable and attractive suburban areas.

�� urban development and redevelopment through infill development programs or underdeveloped sites in existing suburbs.

86%

63%

in the lower quartile

below median price

100

80

60

40

20

0

Dwellings in Western Australia

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EllenbrookEllenbrook is a joint venture between the Authority and Morella, and is managed by LWP Property Group. Located in the City of Swan and 21 kilometres north east of the Perth Central Business District (CBD), Ellenbrook, will deliver 11,000 lots and house up to 35,000 residents when the project is complete in 2025.

Approval has been received for the development of 80 square metre lots, which are expected to showcase innovative small lot product to the public by May 2017.

Land developmentA key component of the Affordable Housing Strategy maintains continuity of affordable land supply through land development, in partnership with the private sector.

Through its joint venture land development activities, the Authority has a long and successful history of working with industry partners to contribute to the ongoing supply of affordable land and delivery of diverse housing opportunities for Western Australians. The integration of social and public housing with full sale to market, affordable housing and shared equity houses is a feature of its land developments.

While overall market activity slowed in the second half of the 2015-16 financial year and impacted sales across several projects, the Authority’s joint ventures continue to demonstrate the effectiveness of these partnerships in delivering affordable housing outcomes to Western Australians. In particular, they are able to adjust supply and product offerings in a timely and effective manner according to market needs and preference.

Brighton aeria

l vie

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Ellenbrook co

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Brighton, Butler/JindaleeBrighton is a joint venture between the Authority and Butler Land Company and is managed by Satterley Property Group, located on the coast 40 kilometres from the Perth CBD. The project is expected to be completed in 2027 and at completion will have produced 7,100 lots and will be home to 25,000 residents. The district centre has continued to grow with the sale of district centre sites and the opening of new retail outlets during the year. Eden Beach, the beachside estate in Jindalee, continued to grow with the completion of the foreshore carpark and beach amenities providing beach access for the residents.

Banksia GroveBanksia Grove is a joint venture between the Authority and Banksia Grove Nominees Pty Ltd, located 30 kilometres north of the Perth CBD and about �ve kilometres from Wanneroo. When complete in 2021, Banksia Grove will be home to 12,000 residents in 4,000 homes. Work commenced on the delivery of the district centre which when complete will include three supermarkets, retail and a town square. The design is re�ective of the ‘Main Street’ principle. This provides a community focal point and the potential for local employment opportunities.

In 2015, Banksia Grove piloted 22 innovative modular residential homes. A study was undertaken by Curtin University Sustainability Policy Institute, comparing this alternative building method with traditional building methods. Findings indicated that modular housing had potential bene�ts including a reduced carbon footprint, improved energy e�ciency and reduced construction timeframes.

The Village at WellardThe Village at Wellard is a joint venture between the Authority and Peet Limited, located 35 kilometres south of Perth. The first dedicated transit orientated development in Perth’s southern corridor, it features a pedestrian friendly village centred around the Wellard train station on the Perth to Mandurah railway line. When complete in 2021, the Village at Wellard will be home to more than 10,000 residents and deliver approximately 3,000 lots.

In 2015, the Village at Wellard received the Urban Development Institute of Australia’s (WA) Best Masterplanned Development award.

Brighton p

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Harrisdale Green, HarrisdaleHarrisdale Green is a joint venture between the Authority and Cedar Woods, located 19 kilometres south of the Perth CBD. Harrisdale Green is an urban village that will ultimately comprise up to 500 new homes when complete in 2021. Work on the current stage is nearly complete and lots are anticipated to be placed on the market in the second half of 2016.

Sienna Wood, Hilbert/HaynesSienna Wood is a joint venture between the Authority and Stockland, located in the south east suburbs of Hilbert and Haynes. It is a master planned community being designed to assist in meeting affordable housing requirements.

When complete in 2030, Sienna Wood will be home to 3,300 families. The estate will provide a future town centre, schools, sporting ovals and other community facilities, including a Shipwreck themed park, which is expected to be completed in 2016-17. The development will successfully deliver home ownership opportunities to those on lower and middle incomes and in doing so, has attracted first home owners and families, specifically those who have only recently moved to Western Australia from overseas and now call Sienna Wood ‘home’.

Golden Bay, MandurahThe Golden Bay land development project between the Authority and Peet Golden Bay Pty Ltd is located between Rockingham and Mandurah. The development will deliver affordable housing outcomes across a broad section of the market through a diversity of design, built form outcomes and fresh ways of approaching urban development. When complete in 2022, the development will have created more than 1,750 lots and will be home to 5,000 residents. The year saw the development of the seaside precinct featuring a lookout with sweeping views over the Indian Ocean, several nature play elements, barbeque and picnic area.

Harrisdale Gre

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Sienna W

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Golden Bay


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Dalyellup Beach, CapelDalyellup Beach is a joint venture between the Authority and Home Satterley (Satterley Property Group) located seven minutes south of Bunbury and 10 minutes from Capel. Dallyellup has led the Bunbury market in providing diversity of housing and developed lots at affordable price points. When complete in 2025, Dalyellup will be home to some 10,000 residents housed in 3,400 homes. During 2015-16 a 10 home builder display village was opened to assist purchasers selecting house and land packages.

Seacrest, GeraldtonSeacrest is a joint venture between the Authority and Springdale Holdings, and is located in the Mid West town of Geraldton. Nearing completion in 2018, the project will have yielded approximately 1,200 lots when finished. Construction of shopping facilities within the estate is expected to commence now for completion in August 2017.

Oyster Harbour, AlbanyOyster Harbour is a joint venture project between the Authority and Lowe Pty Ltd and is managed by Heath Development. The development, when completed in 2025, will comprise approximately 1,800 home sites. Planning is underway for the relocation of the current builders display village within the estate and the first sites in the village centre have been placed on the market.

Dalyellup B

each

Seacrest

Oyster Harb

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Urban renewal, development and in�ll

Urban renewalThe Authority undertakes redevelopment activities in areas identified as having a high public housing presence, or to rejuvenate or optimise under-utilised public housing and land assets where opportunities exist.

A number of the Authority’s urban renewal activities such as the ‘South Hedland New Living’ and ‘New North’ projects have now reached maturity, while other projects have been identified and are either in the planning or early development phases.

After: Home in New North, B

alga

Before: The New North, B

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Burt Street, FremantleThe Burt Street Redevelopment Proposal will see the redevelopment of a 1.37 hectare social housing site to deliver a medium to high-density apartment project in the City of Fremantle. The successful delivery of the project will result in the reduction in the concentration of social housing, a more efficient use of an asset and the opportunity to join with a private sector partner to deliver an award winning urban village.

The Authority has worked collaboratively with the City of Fremantle to obtain a successful scheme amendment to significantly increase the zoning of the site from R60 to R160, enabling a potential development of more than 200 apartments to be constructed on the site. This approval was obtained in November 2015. The Authority has been progressing its plans for the development of the site and intends to procure a private sector development partner in 2016-17.

South Hedland New LivingThe award winning South Hedland New Living project, which came to a close on 30 June 2016, revitalised the town and improved the lifestyles and living standards of residents. The project, which commenced in 2006, involved extensive housing refurbishment, land development, community development and infrastructure improvements. The Authority refurbished 480 existing homes and produced 776 new housing lots under the project, stimulating housing supply in South Hedland during a period of shortage and high cost of accommodation and quality tradespeople.

Quattro, Queens ParkAn 86 unit development in Whitlock Road, consisting of affordable one, two and three-bedroom homes, was completed in November 2015. Located within 12 kilometres of Perth’s CBD and surrounded by schools, parks, regional open space and shopping facilities, these dwellings are well located and provide a mix of affordable housing including housing for shared equity purchasers. This was the final stage of the successful urban renewal project in Queens Park which has transformed an old 1950’s public housing estate into a modern, high quality, revitalised community.

New NorthThe ‘New North’ project commenced in 1998 and involved the revitalisation of ageing social housing in the suburbs of Balga, Girrawheen, Koondoola and Westminster. In 2012 it was expanded to include other suburbs such as Mirrabooka, Midland, Nollamara and Bassendean. Ageing social housing assets in the project are refurbished and sold to the public, mostly to first homebuyers and owner-occupiers. In addition, a proportion of the properties were refurbished and returned to the Authority’s public housing stock. The project also included land development, community development and infrastructure enhancements. This ambitious 18-year project was completed in June 2016 and has transformed the suburbs into attractive communities and rebalanced the mix of public housing.

Under the project, 1,405 dwellings were refurbished for sale to the general public, 1,255 dwellings were refurbished for retention; 572 dwellings were demolished; and 294 residential lots were developed.

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Brabham The procurement process to secure a suitable developer to partner with the Authority for the staged development of its 220 hectare landholdings in Brabham commenced in February 2016. This development will potentially provide 2,500 lots and houses. It is anticipated that a partner will be appointed by early 2017 to help the Authority deliver an affordable, innovative and water sensitive development in Brabham.

YanchepThe Authority owns two contiguous land developments in Yanchep, Jindowie and Everley, with both projects situated alongside Yanchep Beach Road. The Jindowie development involves the creation of more than 1,000 lots and will incorporate a high proportion for affordable housing. The Authority has progressed six stages, with more than 300 lots developed to date. As part of its Affordable Housing Strategy the Authority will be developing a further 56 lots with the subsequent completed home packages sold as either full or shared equity sales.

The Everley development abuts the future Mitchell Freeway reserve. It involves the creation of approximately 750 lots and will incorporate a proportion of public and affordable housing. Work has progressed on the planning and approvals but development is on hold in response to market conditions and it will not be marketed until Jindowie is in its advanced stages of lot sales. It is anticipated that sales will commence in 2019 with completion in 2029.

Urban development The urban development program involves ‘greenfield’ broad hectare land for residential development in both metropolitan and regional areas. This ensures that the demand for the supply of land throughout Western Australia and the presence of affordable housing is maintained in all its land sub divisions so that aspiring home owners can have access to an affordable housing supply.

Brabham

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of s

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KwinanaThe Kwinana precint involves the development of the Authority’s broad-hectare landholdings in Parmelia, Bertram, Orelia and the Kwinana Town Centre. Currently, three parcels of vacant land are being developed, collectively known as the ‘Cassia Estates’. The Cassia Estates will yield approximately 900 lots over the life of the project. Cassia will provide affordable living with accessibility to established amenities including Kwinana Marketplace, Kwinana train station, public and private schools, as well as local employment opportunities. The Authority has developed a total of 107 lots with further lots to be developed and released during 2016-17.

AlbanyThe Authority’s Clydesdale Park development is located in McKail, about five kilometres from the Albany CBD. This development will create 456 lots, with 207 lots developed to 30 June 2016 with prices ranging from $70,000 for cottage lots to $125,000 for larger traditional lots. Nine homes have been constructed and were released onto the market in February 2016, to be sold under the Affordable Housing Program.

Connected Living initiative Connecting the people of Perth

SNAPSHO

T

Connected Living is an initiative aimed at addressing housing affordability in metropolitan Perth by creating more than 500 new medium-to-high density living opportunities on seven sites near key transit precincts and activity centres.

The initiative, launched in December 2015, represents a unique opportunity for the private sector to partner with the State Government in delivering innovative and affordable residential housing.

“Connected Living has four overarching objectives – affordability, design quality, innovation and diversity,” Acting Chief Executive Officer, Paul Whyte said.

“The initiative is about connecting the people of Perth with affordable, well-designed housing opportunities in developments located near public transport, in areas that can provide future urban growth and activity.

“The Housing Authority has been widely recognised for excellence in design and innovation, and we are committed to helping to transform the market and stimulate the diversity of housing supply in Western Australia.”

The sites have been carefully selected for their close proximity to key transit precincts and activity centres.

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GirrawheenThe Authority’s Hainsworth Project is a 4.2 hectare infill development located 12 kilometres north of the Perth CBD, in the middle-ring suburb of Girrawheen. The project is underpinned by a vision to transform Perth’s housing market by reimagining middle-ring urban living with affordable, diverse and environmentally sustainable housing options.

New and innovative housing choices will be made available for first home buyers, families and downsizers in Girrawheen and the surrounding area. The site’s mixed-density coding of R40 to R60 offers a potential yield of up to 160 dwellings. In January 2016, the Authority successfully obtained subdivision approval of the site through the Western Australian Planning Commission.

The project represents an important opportunity to deliver strategic urban infill outcomes aligned to the Affordable Housing Strategy. The Authority will seek to procure a private sector partner for the project via a request for detailed proposals early next financial year. Works on-site are anticipated to commence in mid-2017.

Urban in�llIn keeping with broader Government strategy, to consolidate the city and strike a balance between greenfield and infill development, the Authority continues to undertake strategic infill developments. The Affordable Housing Strategy: Aiming Higher 2015-2020 Action Plan directly promotes urban infill developments, increasing the supply, affordability and diversity of housing around the metropolitan area.

Artist impression of H

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Public Housing Stock Redevelopment StrategyThe Public Housing Stock Redevelopment Strategy is a leading example of the Authority’s innovation in fully self-funding the replacement and redevelopment of its existing aged stock to increase the supply of a�ordable housing in Western Australia.

Announced as part of the 2013-14 State Budget, this pilot program has seen the Authority take 100 large vacant lots and 100 under-utilised existing public houses capable of higher density within its portfolio. The outcome of this initiative is to create 500 new affordable homes and redevelop 100 existing public homes that are more appropriate to current market needs.

Around 250 of these dwellings will be made available to Western Australians on low to moderate incomes to purchase, with the remaining 250 homes to be sold at both affordable and full-market price points.

The Authority has successfully delivered against all government commitments of this program, which are 500 completions by 30 June 2016 with no net reductions to public housing stock levels. The appeal of the new housing supply through this program has also been well received by the public with strong interest resulting in over 50 per cent of homes under offer or sold.

It has demonstrated the Authority’s ability to deliver large-scale programs across different locations across the state, as well as collaboration with industry to achieve positive outcomes for Western Australians. It also strengthens the Authority’s position as an economic enabler by stimulating construction activity in the current economic environment.

BentleyThe Bentley Regeneration Project provides an exciting opportunity for the Authority to establish one of the most signi�cant medium-density developments in Western Australia, just eight kilometers south of the Perth CBD. The project seeks to revitalise approximately 25 hectares in Bentley and deliver the latest innovations in housing design construction and urban planning, with a strong focus on community, sustainability and housing a�ordability.

Redevelopment of the site would yield a minimum of 1,500 new dwellings, creating a range of affordable housing options close to the CBD and key employment generators such as Curtin University, Bentley Hospital and the Bentley Technology Park.

The Authority has achieved a number of major project milestones to date. Following approval of the Local Structure Plan by the Western Australian Planning Commission, Local Development Plans for the former aquatic centre and adjacent housing land were approved in September 2015. The �rst Development Approval for the precinct was granted by the Joint Development Approval Panel in April 2016.

Design guidelines that set expectations for developers and provide detailed guidance on the delivery of a high quality precinct were approved in June 2016 by the City of Canning Council. The Authority is continuing to progress more detailed planning for the precinct and it is anticipated the forward works will commence in 2017.

WoodbridgeThe Authority has partnered with leading property developer Psaros to deliver a mixture of shared equity, social housing and private sale dwellings in a modern apartment complex within the Metropolitan Redevelopment Authority’s Woodbridge Precinct.

A Development Management Agreement was executed by the Authority and Psaros on 29 September 2015. The development will comprise a total of 79 modern contemporary apartments o�ering a mix of one, two and three-bedroom dwellings, and is expected to take 18 months to complete, from initial earthworks through to practical completion. The project will deliver a new type of housing product into this new and untested market, and it is intended that it be a catalyst to support much needed in�ll product in the area. 45


SNAPSHOT

Housing supply

Increasing the supply of inner-city apartmentsThe Authority has contributed to increasing the diversity and supply of affordable inner city apartments through its partnership with the Metropolitan Redevelopment Authority. This has delivered a mix of affordable studio, one and two bedroom shared equity opportunities in new developments in Perth, Northbridge and Subiaco, enabling people on low to moderate incomes to live near where they work.

In recognition of the Authority’s work in supplying a�ordable inner-city apartments, the One on Aberdeen development in Northbridge, which produced 161 apartments in 2014, received the Judges’ Award at the Urban Development Institute of Australia’s (WA) Awards for Excellence 2015, and most recently received the award for best a�ordable housing development at the 2016 National Property Council of Australia Innovation and Excellence Awards.

The Housing Authority partnered with Foundation Housing to deliver a 70-unit apartment complex on Bennett Street in East Perth that provides housing for people on low incomes close to their employment.

Seventeen social housing units in the complex will help reduce the number of singles and couples on the joint waitlist and provide vital housing for those on low-incomes earning above social housing eligibility limits. The other 53 self-contained units will aid low-income earners at risk of becoming homeless.

At the opening of the complex in August 2016, Foundation Housing Chief Executive Officer, Kathleen Gregory AM said the complex was “a very important step for ensuring

that those who are often the most vulnerable in our community now have some independence but remain in a safe environment.”

“Residents will enjoy fantastic, modern, inner city living close to public transport and will also be supported by Foundation Housing’s programs and services that assist them to not only access and maintain a home but to also strive for more independent living.”

The Bennett Street development is an excellent example of the innovative partnerships between the Government and the private and community housing sectors that is a key element of the State Government’s Affordable Housing Strategy.

A�ordable housing for the most vulnerable

Adara A

partments

Image courtesy of JCY Architects and Urban Designers. Photo

grap

h b

y Rob

Ramsay

46


Sub-acute mental health facilities The Authority worked with the Mental Health Commission to develop a sub-acute mental health facility in Rockingham to provide temporary accommodation and support for people at risk of becoming unwell, as well as for people who leave hospital but still require intensive support before they return home. This support will increase the person’s opportunities for a successful recovery and reduce the pressure on hospital resources. Construction of similar facilities in regional areas is now being planned for and will continue into 2016-17.

National Disability Insurance Scheme/ My Way projectsIn partnership with the Disability Services Commission, the Authority constructed five dwellings in the South West to be occupied by participants of the National Disability Insurance Scheme/My Way Trial. Under this initiative, single ancillary buildings were constructed in Margaret River and Cowaramup and three dwellings developed in Busselton. These dwellings will enable the trial participants to live more independently, develop social networks within the community and achieve positive outcomes for their lives. The trial runs until 30 June 2017.

Housing for people with a disability or mental illnessAccess to appropriate and affordable housing remains a challenge for many people with a disability. In recent times, many vulnerable people have struggled to find private affordable rental properties. For people with physical disability this is a double disadvantage as most people with physical disability require modifications to standard housing and are not able to pay the high rent rates as they are on a pension or other supplemented income.

In 2015-16, the Authority completed eight houses to provide long term rental housing for people with disability who require ongoing support to live in the community. The houses have been specially designed to cater for the requirements of the occupants, based on the nature of their disability, and will allow them to live more independent lives within a community environment. The houses were funded by additional capital funding received from the Disability Services Commission. A total of eight houses have now been completed under this funding initiative. A further 15 houses will be procured across 2016-17 and 2017-18.

The Authority also continues to provide housing for people with disability and/or mental illness through the vacation and reallocation process for the Community Disability Housing Program.

Respite centreThe Authority has been working in partnership with the Disability Services Commission to design and construct a respite centre for people with a disability in Port Hedland. The centre will accommodate six people with support needs ranging from low to high plus support sta� and some client family accommodation. The respite centre is expected to be completed in 2018.

47


Housing construction

Construction, spot purchase and refurbishmentAcross the State, the Authority has a significant construction program of new residential dwellings for public housing, community disability housing, crisis accommodation, affordable housing, Government Regional Officers’ Housing, key worker housing in regions and housing in remote Aboriginal communities. From time to time, the Authority will also purchase established dwellings from the market. Table 27 (Appendix 4: Housing statistics) provides information on construction, spot purchases and refurbishments undertaken under the Authority’s various capital works programs.

Building permit authorityThe Authority, under the Building Act 2011, is considered a Building Permit Authority with control over the building permit process and other relevant building approvals for the Authority’s construction program. In 2015-16, the Building Permit Authority issued 693 permits for work relating to construction, demolition and occupancy of buildings.

SNAPSHOT

Bernard has been a social housing tenant since 1972, and due to age and limited physical mobility, he became reliant on a wheelchair.

The Authority’s regional office in South Hedland worked with Bernard’s family and his occupational therapist, to alter his property to meet his specific mobility needs.

The first issue to manage was finding suitable accommodation for Bernard in the interim while the work on his home was carried out. This was no easy task and luckily a New Living property next door to Bernard became vacant.

The Authority was able to secure this as a temporary home for him while the renovations were carried out. Bernard was relieved to be able to stay in the neighbourhood he was familiar with.

The storeroom in Bernard’s house was remodelled into a full mobility bathroom and a shed was erected to make up for lost storage space.

The hallway and door frames were widened, ramps were installed to the front and rear entrance, and concrete was laid in the front yard to allow safe vehicle access.

The kitchen was restructured providing full mobility access and functionality, including an appropriately appointed sink and bench.

When the property was completed and handed over to Bernard in April 2016, he was overcome with happiness.

Bernard said he loved his new house, and that it was well worth the wait.

Mobility needs met

Appre

ntice, e

mployment and education housing facility


48

We will capture the benefits of supply for low to moderate income earners to:

�� facilitate transition through the housing continuum

�� implement mechanisms to improve affordable rental supply

�� influence government, partners and stakeholders to deliver affordable housing through policy, planning and investment.

Capturing bene�ts for a�ordable housing

assisted into private rentals with a Bond

Assistance Loan

More than

13,000

housing opportunities

3,453

411social housing

553affordable rentals

2,489affordable home ownership

New target

30,000

23,95349


Home ownershipPerth and most regional locations are no longer experiencing rapid escalation in median house prices seen over of the past seven years. Despite low interest rates and easing house prices however, home ownership remains out of reach for low to moderate income households in Western Australia.

As a result, policy interventions that improve affordability for low to moderate income earners are still needed if home ownership is going to remain an attainable aspiration for ordinary hard-working Western Australians.

The Authority and Keystart deliver a range of home ownership opportunities for low to moderate income households through the provision of low deposit loans and shared ownership schemes. These are complemented by the supply of low cost, entry level land and housing through the Authority’s development activities, which enable purchasers to access a diverse range of new, well-located, affordable housing that meets their needs.

Shared home ownership client


50

Shared home ownershipShared equity home ownership schemes are one of the policy initiatives that have been successful in helping credit-worthy low income families achieve their dream of home ownership for over 25 years. These include schemes tailored to specific targets groups, including for public housing tenants wishing to buy a home, people with a disability, Aboriginal people and sole parents, as well as the award winning SharedStart home ownership scheme.

With the Authority usually providing 20 to 30 per cent of the equity, this significantly reduces the amount people need to borrow to buy a home – making the dream of home ownership an attainable reality for a large number of working people across the community. In most cases, buyers can increase their share of the home to 100 per cent over time. For some properties, the Authority retains its equity share in perpetuity. In these cases, the home owner must sell back to the Authority when they are ready to move on to outright home ownership. This means the property is reserved for other lower income households to access the same shared equity opportunity.

Shared equity is made possible by the combination of the Authority’s co-ownership of the dwelling and Keystart’s low deposit home loans.

The Authority’s Opening Doors Shared Home Ownership Scheme has provided the security and stability that single mum, Tracey, was seeking for her family.

Tracey, moved from New South Wales to Western Australia with her children to be close to family members following a marriage breakdown.

They spent 10 years living in private rentals in Perth, and Tracey’s main concern during this time was the lack of security which renting offered.

In 2012, when her lease was due to expire, she began looking at private rentals but only found a few decent properties within her price range.

Fortunately, Tracey heard about the Opening Doors Shared Home Ownership Scheme and was able to afford to purchase a property in Golden Bay. She now owns a 95 per cent stake in her property.

“While renting, we never felt completely comfortable and could never forget that we were living in someone else’s house,” Tracey said.

“We didn’t have the security and comfort that we have now. It is an incredible relief to know that we will always have a place to call home.”

Tracey moved in with her family a few days before Christmas and referred to this as the best present they could have asked for.

Security and stability for single mum

SNAPSHO

T

51


Keystart was created by the State Government to assist low to moderate income Western Australians into affordable home ownership. Keystart provides products like the standard low-deposit home loan and shared equity loans to help ensure that home ownership remains an attainable aspiration for low to moderate income households. As most Keystart borrowers were previously renting, Keystart is an important part of a healthy housing continuum and the State Government’s overall Affordable Housing Strategy.

Keystart provides a foothold on the first rung of the property ladder for people and families who need it most. Keystart’s loan products assist low to moderate income earners and first homebuyers with a good credit history who are unable to raise a deposit through mainstream lenders or who may be unable to afford the full cost of a home and need a shared equity arrangement.

The standard Keystart loan maintains low deposit requirements, does not require lenders mortgage insurance and has no monthly account keeping fees – saving buyers thousands of dollars and reducing the time required to save for a home.

Keystart’s shared equity loans significantly improve affordability for lower income households. Keystart also plays an instrumental role in achieving

broader State Government objectives. As well as enabling thousands of households to transition out of the rental market into home ownership, it is a strong supporter of the residential construction industry, which employs thousands of people and is an important contributor to the wider economy.

Keystart adjusted its income limits downwards in May 2015, responding to changing market conditions and ensuring that its focus remains on those who cannot access mainstream home ownership options.

The Keystart Housing Scheme is a wholly-owned State enterprise. The Scheme comprises one trust and several companies, which are administered by an independent board of management. The trust beneficiary and company shareholder is the Authority. Within State finances, the Keystart Housing Scheme is classed as a Public Financial Corporation and does not form part of the general government sector.

Information on divestment of part of Keystart’s loan book as part of the Government’s asset sales program can be found in the Significant Issues and Trends section of this report.

Home Loans

Keystart home loansAffordable housing


52

Keystart productsSince Keystart commenced in 1989, more than 62,000 new loans have been approved, assisting more than 98,800 borrowers into home ownership. In 2015-16, Keystart approved a total of 2,489 new loans valued at $878.9 million. These loans can be attributed to the following schemes.

Keystart standard low deposit home loan schemeKeystart approved 2,072 new standard loans during the financial year, comprising 75 per cent for new construction and 25 per cent for established properties, with loans approved totalling $777.3 million.

SharedStart shared equity schemeSharedStart is available to households wishing to buy a home constructed under the Authority’s Shared Home Ownership Scheme. Since 2011, this initiative has assisted 1,202 low income households to purchase a new home in co-ownership with the Authority, with 289 loans totalling $76.6 million provided by Keystart in 2015-16.

Goodstart shared equity schemeThe Goodstart shared equity scheme assists public housing rental tenants and non-first home buyers transition out of their current public housing rental into their own homes. During the year, 15 loans to the value of $3.9 million were approved.

Access shared equity schemeThe access shared equity product helps people with permanent disabilities or those who care for a dependant with a permanent disability to purchase a home. During the year, 65 loans to the value of $8.7 million were approved.

Aboriginal home ownership schemeThis product assists Aboriginal people and Torres Strait Islanders to own their own home. Both full and shared ownership options are available. During the year, 33 loans were provided to the value of $8.8 million.

Sole parent shared equity schemeThe sole parent shared equity product assists sole parents to try to retain their current family home following a separation or bereavement. During the year, seven loans to the value of $1.6 million were approved.

Yawuru schemeThe Yawuru scheme financed 50 per cent client owned shared equity loans under the Yawuru Home Ownership Project. The other 50 per cent equity is held by Nyamba Buru Yawuru, the Yawuru community’s administrative organisation. During the year, eight loans to the value of $2.0 million were approved.

Keystart borrower pro�leKeystart is a targeted lender. It addresses a market gap for credit-worthy low to moderate income households that cannot raise the deposit required

by mainstream lenders. Analysis suggests that a couple with two children on a single income of $110,000 per year and renting an average home would take almost 14 years to save a 10 per cent deposit and on-costs required to buy a $430,000 home through mainstream lenders. As a comparison, to meet the deposit requirements of Keystart’s standard home loan with a two per cent deposit, would take less than three years.

Consistent with Keystart’s target market, at 30 June 2016:

�� 71 per cent of Keystart loans have been for people who were previously renting

�� 88 per cent of loans were for first homebuyers

�� 77 per cent of buyers were aged 20 to 40 years

�� 74 per cent of purchases were in the lower price quartile range

�� 84 per cent of loans were in the well established markets of Perth and Peel

�� the major occupations of borrowers include technicians and tradespeople, sales, clerical and administrative positions, carers and aides, labourers, education sector, health sector, hospitality, retail and service workers, and construction trades.

Since January 2010, 59 per cent of loans were for new construction rather than the purchase of an established home. This has an indirect benefit in generating economic activity and jobs.

Further information on Keystart products and eligibility criteria can be found at keystart.com.au.

53


A�ordable salesUnder the Affordable Housing Strategy, the Authority continues to supply the market with a range of homes, units and apartments for households on low to moderate incomes.

The affordable sales program is central to providing home ownership opportunities for these households by facilitating affordable housing for sale directly to the general public at either an affordable market price or under the Authority’s shared equity program.

Since its inception, the program has provided more than 2,700 singles, families and seniors on modest incomes with a home they can afford. In 2015-16, 897 homes were completed for sale to the market, worth approximately $307.4 million. Of these, 431 sales were part of the Shared Home Ownership Scheme, worth a total of $121.4 million.

The affordable homes under this program include apartments, units, and homes suitable for families. They are delivered through working closely with industry to ensure properties are developed for sale to the public at a price within the reach of as many people as possible. Properties are located throughout the Perth metropolitan area and in some regional locations, providing affordable housing in proximity to employment, amenity and transport links.

In 2015-16, the average price per dwelling sold under the program was $381,000. Of the dwellings sold, 86 per cent have been sold under the median dwelling price and 63 per cent were below the lower price quartile.

Home owners through the Opening Doors afford

able sa

les

prog

ram


54

Housing for people with speci�c needsWhile the shortage of affordable housing has a major impact on a wide range of low to moderate income households, specific groups within the community including people with complex needs and some older Australians face particular disadvantages and impediments in the market.

The State Government recognises there are seniors who are among the most vulnerable in our community. In 2015-16, the Authority worked closely with specialist care providers, Local Government and Regional Development Commissions across the State to deliver housing for people over 55 in various metropolitan and regional locations.

RidgewoodThe Ridgewood project is a partnership with not-for-profit aged-care provider, Southern Cross Care. The project aims to increase the diversity of affordable housing supply for seniors, close to important services and amenities. Situated 37 kilometres north of the Perth CBD on a 6.8 hectare site, this innovative development will provide a range of tenures including social housing, seniors housing and affordable house and land opportunities. The site will also feature a commercial precinct featuring a supermarket and other retail stores, as well as a medical centre and other healthcare services designed to enable residents to age in place.

As per the Development Management Agreement, ownership of the site was transferred to Southern Cross Care in January 2016 to facilitate delivery of the project.

Simultaneously, town planning, market analysis and construction and civil tenders were progressed throughout 2015-16 by Southern Cross Care. It is anticipated that tenders will be awarded by late 2016, with an intention to commence works on-site in early 2017.

Manjimup Seniors Living ProjectThe Manjimup Seniors Living Project presents a new opportunity for the Authority to help stimulate the supply of affordable housing for seniors in Manjimup by providing affordable, age-friendly housing options.

With the potential to deliver up to 50 independent living units for seniors to purchase or lease, the project aims to deliver quality, affordable housing and operational management, to cater for people in the region aged over 55 years. The development site is less than one kilometre from the Manjimup town centre and is in close proximity to key services and amenities. A total of $2 million of Royalties for Regions funding has been allocated to the project via the Shire of Manjimup.

The Authority launched an expression of interest process for a project proponent in March 2016, with the view to deliver the project via a joint undertaking. This procurement process is still underway and is expected to be completed in the latter half of 2016.

55


National Rental A�ordability SchemeNRAS is a Commonwealth initiative, delivered in partnership with State and Territory Governments, to invest in affordable private rental dwellings. The intent of the scheme is to stimulate the supply of new affordable rental dwellings and reduce rental costs for eligible low to moderate income households by at least 20 per cent below market rates for up to 10 years.

In exchange for providing discounted rent, the scheme offers investors an annual financial incentive per dwelling which is indexed annually across the 10 years the property is in the scheme. The current total annual incentive for the NRAS year 2015-16 is $10,917 per dwelling, with the Commonwealth’s component $8,187 (as a refundable tax offset or payment) and the State’s component $2,729 (in cash or in-kind financial support).

NRAS provides one of the few market-facing initiatives that addresses both housing supply and affordability and has been an important part of the State Government’s Affordable Housing Strategy.

As at 30 June 2016, 3,556 properties had been delivered throughout Western Australia, providing discounted rental housing for low to moderate income households.

In May 2014 the Commonwealth Government made the decision to not proceed with Round 5 of NRAS – signalling the cessation of the scheme. Commonwealth delays and uncertainty surrounding the future of the scheme introduced risk and reduced confidence amongst developers and investors. As a result, a number of incentives were not delivered by 30 June 2016 as previously anticipated. It is estimated that the final total of NRAS dwellings delivered in Western Australia will reach approximately 4,000.

Remaining incentives will be provisionally allocated from 1 July 2016 and are subject to withdrawal by the Commonwealth Department of Social Services. The Authority will continue to work closely with the Department of Social Services and approved participants to ensure that as many incentives as possible are delivered in Western Australia.

A�ordable rentalsThe Authority supports access to affordable rental housing opportunities for low to moderate income households through:

�� the provision of direct assistance, such as bond assistance loans, to consumers to support them to obtain rental accommodation

�� the provision of incentives to owners and landlords to make properties available

�� investment in affordable rental projects.

Financial assistance for private rental tenantsThe Authority has assisted more than 49,000 eligible Western Australians over the past five years to enter the private rental accommodation through supplying an interest-free loan to help pay the rental bond or two weeks rent in advance.

A private rental assistance loan is also offered as an early intervention mechanism for Aboriginal clients to sustain their private rental tenancy when rent arrears caused by extraordinary circumstances place them at risk of eviction. Clients are provided with an interest-free loan of up to six weeks’ rent.

During 2015-16, 13,121 bond assistance loans and 93 private rental Aboriginal assistance loans were issued to the value of $16.13 million.


56

Housing for non-government organisationsA significant shortage of affordable housing in some regional locations is having a major impact on the ability of non-government organisations to deliver key government-funded services to regional communities. Non-government organisations often struggle to attract and retain the necessary employees partly due to the limited availability of affordable and appropriate housing.

In response, the Authority is undertaking land and housing development in high-need regional locations in the Kimberley including Derby, Halls Creek, Broome, Fitzroy Crossing and Kununurra; and in the Pilbara including Onslow, Roebourne, Karratha and Wickham. In 2015-16, further dwelling were delivered taking the total to 33.

Exmouth service worker housingThe State Government has allocated $8.8 million to increase the supply of affordable housing for service workers in Exmouth, who earn low to moderate incomes and are employed locally in non-mining industries. The delivery of stable and affordable accommodation will help attract and retain service workers from a range of industries to Exmouth and provide opportunities for service workers to move towards longer-term, permanent residence in the town. Construction of 20 units is planned for completion in 2016-17.

Avon villageThe Avon Village Workforce Accommodation project has delivered 15 dwellings, comprising a mix of one, two and three-bedrooms, for key workers in Northam. The project aims to support the State’s key rural export industries and regional development in the Wheatbelt region. Occupancy of the units commenced in June 2016.

Key worker and service workerThe Authority delivers worker accommodation in regional communities under the Affordable Housing Strategy and Royalties for Regions – Housing for Workers initiative. It aims to address some of the shortages of supply of appropriate and affordable housing in regional locations, particularly in areas linked to major economic development or where there is an absence of an affordable private rental market.

This initiative includes targeted developments such as key and service worker housing and employment-related accommodation to ensure that key community and essential services are maintained in regional areas. These initiatives ensure that small to medium businesses and non-government organisations are able to attract and retain qualified and experienced employees to maintain or expand services.

Housing Authority staff mem

ber

57


Government Regional O�cers’ HousingThe Authority is responsible for providing accommodation to more than 4,700 government officers who provide essential health, education, law enforcement and other services across the State’s vast regions.

As at 30 June 2016, 5,512 dwellings were managed of which 3,089 were owned by the Authority and 2,423 were leased from the private market. This is lower than the previous year due to reduced demand resulting in property sales and lease cancellations. As part of the Authority’s capital works program, 29 new dwellings were completed at a cost of $14.32 million. The Authority also spent more than $4.25 million on refurbishing existing properties thereby improving the amenity of properties and extending their economic life.

During the year, the Authority satisfied 543 requests for accommodation from government agencies in regional Western Australia.

Through the refurbishment of Government Regional Officers’ Housing properties throughout regional Western Australia, properties were upgraded to meet client agency expectations and assist in the recruitment and retention of government employees within the community. The program also provides an economic stimulus for regional towns with local contractor employment.

Employment and education housingThe Authority currently provides employment and education housing facilities for Aboriginal people entering the workforce or undertaking employment training courses in the Kimberley and Pilbara regions. Service providers are employed under contract to manage the facilities and provide support services to the residents. This was previously known as employment related accommodation. The locations for existing employment and education facilities in South Hedland, Broome, Derby, Fitzroy Crossing and Halls Creek were identified as priority locations due to their significant Aboriginal population, lack of affordable accommodation and proximity to training and employment opportunities. To ensure the facilities continue to address the housing needs for Aboriginal people from regional towns and remote communities, each facility is being assessed to ensure ongoing demand for the service. Any alternative uses identified will be consistent with the reform objectives of both the State Government’s Regional Services Reform agenda and NPARIH.

Emplo

yment a

nd education housing, South Hedland


58

We will support the provision of housing for the most vulnerable and those most in need in our community to:

�� facilitate transition through the housing continuum

�� diversify and create efficiencies in the social housing delivery system

�� grow the non-government sector to deliver a greater proportion of social housing

�� work in partnership to develop and maintain a sustainable social housing safety net.

Maximising bene�ts for social housing

Average priority

wait time reduced

Electrical Safety Device Program

Tenant management

Maintenance spending

IMPROVE MANAGEMENT

OF PUBLIC HOUSING

1,529priority

applicants housed

59


Housing for the most vulnerable and most in need in our community is predominantly provided by the Authority and the community housing sector. More than 69,000 Western Australians are provided with a rental home through public housing. With more than 36,000 houses, it represents less than four per cent of all homes in the State. The Authority’s role includes the direct provision of tenancy and asset management services through the public housing program and the construction of housing for the homeless, people with disability and not-for-profit providers. We work in partnership with the not-for-profit sector to provide rental housing for people on very low and low incomes.

We provide housing to clients through our network of local offices (Appendix 5: Our offices), contracted Aboriginal regional service providers, and contracted not-for-profit organisations, which manage more than 20 per cent of social housing in Western Australia. We deliver housing services to regional and remote Aboriginal communities, including tenancy management, employment and education housing, short-stay accommodation, certain municipal services and remote area essential services maintenance.

Public housingPublic rental housing is an affordable option for eligible very low income singles and families who are unable to afford private housing. Housing is provided directly through the Authority to people with the greatest need, for the duration of their need. Public housing is heavily subsidised by the government. Tenants pay no more than 25 per cent of their assessable income as rent, a figure well below market rent and the Authority’s operating cost.

Waiting for housingDemand for public and community housing greatly exceeds supply and cannot be delivered by the market without significant subsidy. This has resulted in a public housing waiting list of 18,530 applications including those with a priority need of 2,283 applications. During the year, 2,873 applicants were housed in public housing of which 1,529 families, seniors and singles with a priority need. On average, applicants housed during the year waited 153 weeks. Factors influencing the time an applicant may wait to be housed include the area in which housing is being sought, the turnover of properties in the region, the type of accommodation required, and the number and priority status of people ahead of the applicant on the waiting list.

Managing tenanciesThe Authority provides rental homes for 36,000 very low income households and those with special and complex needs. Our staff work closely with tenants to ensure they meet their obligations. The great majority of tenants have a strong contribution to their local communities and do the right thing and look after their homes, pay their rent and get along with their neighbours. Public housing tenants include seniors, families, low income earners, people with a disability, and people with complex physical or mental health needs. Properties are typically one, two or three-bedrooms and a mix of houses and units spread across the State. Approximately 80 per cent of our properties are within the Perth metropolitan area and 20 per cent in regional Western Australia. They are managed directly through a network of 11 regions across the State (Figure 7 and Appendix 5: Our offices).


60

Western Australia

Metropolitan Region

MID WEST/GASCOYNEGOLDFIELDS

WHEATBELT

GREAT SOUTHERN

PILBARA

WEST KIMBERLEY

EAST KIMBERLEY

NORTH METROPOLITAN REGION

SOUTH EASTMETROPOLITANREGION

SOUTH METROPOLITAN REGION

Perth

SOUTH WEST

Busselton

Kununurra

Derby

Halls CreekBroome

South Hedland

Carnarvon

Geraldton

Kalgoorlie

Merredin

Narrogin

Katanning

AlbanyManjimup

Northam

Bunbury

Metropolitan Region

Esperance

Meekatharra

Karratha

Figure 7: Authority’s service delivery regions and office locations

61


SNAPSHOT

Through social housing the Authority has given a lifeline to many people in their time of need.

Serina is one of these people. At age 29 she was diagnosed with cancer and spent the next 12 years battling the disease while moving between share houses. The difficulty in finding an affordable home in the private rental market compounded the stress of her treatment. She managed to beat the cancer, but was left with a chronic ongoing illness.

The Authority offered Serina a life changing opportunity of a brand new apartment in its award winning One on Aberdeen development in Northbridge shortly after it was completed.

Her life has improved immeasurably since she moved into her new home, located only one block away from Royal Perth Hospital where she is a regular patient and in close proximity to amenities.

“Having this apartment has impacted my life in the most positive of ways. I feel safe and I feel that I belong,” Serina said.

“No matter what is happening in my life I know I always have a place to call home and for that I am ever so grateful to the Housing Authority for giving me this incredible opportunity.”

Life changing opportunities

Support to maintain a tenancyThe Support and Tenant Education Program (STEP) provides a service free of charge for tenants who are having problems managing their tenancy or who may be at risk of eviction due to problematic behaviour, rent arrears or poor property standards. Seven non-government organisations were funded to address the tenancy support needs of tenants in public housing in allocated regions across the State. In the financial year, 1,281 tenancies were referred to the program. Ninety six per cent of tenants who exited the program showed moderate to significant improvement in their tenancies.

The STEP providers collaborate with a wide range of community services to achieve better outcomes for tenants and their families. This vital role provides another avenue for our tenants to stabilise and maintain their tenancy with a view to build on their knowledge and understanding of housing, family and community engagement.

In addition to this program, the Authority also assists tenants to access a range of financial counselling and social support programs provided by government and non-government organisations. All of these efforts are designed to support tenants to sustain their tenancies and prevent homelessness.

62


Intensive family support housing A partnership between the Authority, the Department for Child Protection and Family Support, Noongar Mia Mia Ltd, Western Australia Police and Corrective Services was established to assist families who have struggled to maintain successful tenancies.

The Intensive Family Support Housing Program initially commenced as a one year pilot to provide coordinated support to four families who have been previously evicted from Authority properties. To date five adults and 17 children have benefited from participation in the program. Funding has since been extended for a further 12 months to continue to assist families at risk.

This program was awarded Program of the Year 2016 at the Perth National Aborigines and Islanders Day Observance Committee (NAIDOC) awards. The program has assisted four family groups moving from crisis situations to finding a house to call home. Support services were available to assist in stabilising and maintaining their tenancy; supporting children to attend school; and encouraging interaction with the wider community.

Support to transitionThe Authority is committed to encouraging tenants who can, to transition through the social housing system to improve their life circumstances and make way for others on the waiting list. Tenants who are no longer eligible for public housing are provided assistance to pursue a range of affordable housing options, including community housing, NRAS, private rentals and home ownership through various schemes offered by the Authority and Keystart.

In the past three years, services were expanded to cover all of the State and more than 450 tenants were supported to move out of public housing.

Tenancy appealsThe Authority’s Housing Appeals mechanism offers applicants and recipients of housing assistance a quick, informal, thorough and fair means of appealing an administrative decision affecting them. The two-tier appeal process allows clients to provide further information regarding their appeal and affords them the opportunity to have a face-to-face discussion with members of the Regional Appeals Committee. Each committee consists of one Authority representative and two community members who are independent of the Authority. Table 3 provides the statistics on appeals matters dealt with during 2015-16.

Table 3: Summary of appeal matters recorded in 2015-16 (1) (2)

All Requests Received Total number of appeal requests received

2,059

Total number of eligible appeals 1,912

Total number of ineligible appeals (not progressed to Tier 1 or Tier 2)

147

Tier 1 Total of successful appeals (Decision overturned at Tier 1 or partially waived and referred to Tier 2)

813

Total of unsuccessful appeals (Completed at Tier 1 with decision upheld or referred to Tier 2)

1,085

Tier 2 Total of successful appeals lodged in 2015-16 (including partially successful)

290

Total of unsuccessful appeals 496

Notes: (1) Appeals lodged in 2014-15 that were referred to Tier 2 and closed in 2015-16 are captured in

this summary.(2) Appeals received in 2015-16 that proceeded to Tier 2 but were not finalised during this year are

not included in this summary.

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Tenants on notice over illegal use of premisesThe safety and security of local residents and neighbourhoods is a priority for the State Government. In 2015-16, the Authority continued to address dangerous illegal activities in public housing. Such activities pose an immediate risk to the safety or security of people or property. Section 75A of the Residential Tenancies Act 1987 allows the Authority to apply to the court for the termination of a tenancy where the tenant has used or allowed the premises to be used for an illegal purpose. In 2015-16, termination of 26 tenancy agreements was sought in response to illegal activities. This represents less than one per cent of tenancies. The Illegal Use of Premises Policy helps to ensure that public housing is made available to people who abide by the terms and conditions of their tenancy agreement.

Probationary tenanciesIn June 2015, the State Government announced a trial of probationary tenancies in public housing to encourage tenants to take their responsibilities more seriously. Until now, probationary tenancies had been used only where applicants with poor tenancy histories sought to re-enter the system. The trial is intended to improve the level of understanding among new public housing tenants of community expectations and obligations. At the end of a successful six month probationary period, tenants will transition to the standard periodic rental agreement.

During 2015-16:

�� 179 tenancies participated in the trial

�� 124 tenancies progressed from fixed term tenancies onto periodic tenancies

�� six tenancies have entered into new three or six month fixed term tenancies

�� 22 tenancies have ceased

�� two of the 179 tenancies participating in the trial were subject to court action for breaches of their tenancy

�� 10 tenancies in the trial received disruptive behaviour strikes

�� six tenancies in the trial received STEP support.

Disruptive behaviour managementThe vast majority of public housing tenants are good neighbours and contribute positively to their communities. However, there are a small number of tenants whose continued anti-social behaviour disturb the peace and may risk the safety of neighbourhoods. The State Government’s Disruptive Behaviour Management Strategy introduced in 2009 and strengthened in May 2011, clearly defines what is considered unacceptable behaviour and details processes and sanctions for managing disruptive tenancies. The Authority applies the strategy within the provisions of the Residential Tenancies Act 1987.

The Government has invested $12 million over four years from 2012-13 to 2015-16, to support the implementation of the strategy. The funding has provided for dedicated disruptive behaviour management staff to be placed throughout the State. The impact of these efforts to drive improved tenancy accountability can be seen in the reduction in number of strikes issued between the first and subsequent strikes (Table 4).

Table 4: Summary of performance for 2015-16 relating to disruptive behaviour management

Summary 2013-14 2014-15 2015-16

Total disruptive behaviour complaints

13,324 12,593 12,761

Total first strikes issued 1,410 1,171 1,090

Total second strikes issued 513 527 423

Total third strikes issued 179 170 134

Total tenancies terminated as a direct result of disruptive behaviour

81 56 79


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Helping the less fortunate and providing guidance to those most in need is what initially attracted Housing Authority staff members Vicky and Natalie to become Housing Services Officers.

One of the most positive aspects of their roles is seeing clients move on with their lives when they are able to exit social housing after their time of need is over and move into private rental or home ownership.

“The Authority’s work around the housing continuum is to help empower our tenants into eventually owning their own homes,” Vicky said.

“They might be reluctant to start, but it’s a great feeling for them as it is something they never had.”

Dealing with tenants’ challenging behaviours is also one of the most difficult aspects of the role. Natalie’s advice is to never make a promise that you can’t keep.

“If you can’t work out an issue, it’s just best to be up front with the tenant, and that’s how you build that trust with them,” she said.

“It’s somebody’s life, somebody’s home. Being honest and trying your hardest to get the result that best suits us and them is what you strive for.”

Managing properties

Maintaining our properties Maintenance services are performed on more than 42,000 residential properties owned by the Authority (including Government Regional Officers’ Housing homes).The Authority issues an average of 15,000 job orders per month across 11 administrative regions around the State, with services managed by a central business unit. This ensures tenant safety, asset protection and the longevity of stock.

In 2015-16, $161.3 million was spent on day-to-day maintenance, vacated maintenance, refurbishments and improvements, planned and cyclical maintenance, estates maintenance and insurance work.

Maintenance work is carried out as required when a property is vacated, on a day-to-day basis as repairs become necessary or through planned programs.

Electrical Safety Device ProgramThe Authority established an Electrical Safety Device Program to inspect and re-baseline safety switches (residual current devices), smoke alarms and main earth wires within public housing properties owned by the Authority by 2020.

The $26 million, three-year electrical safety device inspection and testing program is anticipated to run until December 2019. The program will encompass all of the Authority’s properties and inspect (and, where necessary, replace) safety devices. The program is accompanied by a rigorous training program for staff involved in safety device management.

The program has engaged independent inspectors to perform the electrical inspections and gather the necessary data required to manage and maintain the electrical safety devices going forward. Any remediation works uncovered as part of this inspection will be managed through the Authority’s Head Maintenance Contract. This is one of the most important program of works undertaken by the Authority as it continues to move forward with managing tenant safety.

Serving on the front lines

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Head Maintenance Contract The Authority delivers maintenance services through four head contractors who then manage subcontractors to deliver the services required. Head Maintenance Contracts (the contracts) are held with:

�� Lake Maintenance (Western Australia) Pty Ltd– East and West Kimberley, Goldfields and Wheatbelt regions

�� Pindan Contracting Pty Ltd – Mid West, Gascoyne and Pilbara regions

�� Programmed Facility Management Pty Ltd – South Metro, South West and Great Southern regions

�� Spotless Facility Services Pty Ltd – North Metro and South East Metro regions.

Maintenance works and services by head contractors service social housing, Government Regional Officers’ Housing and Aboriginal housing (town-based and remote communities).

Maintenance work conducted is subject to a number of quality assurance processes that are reviewed regularly with head contractors and the Authority in line with contract agreements.

The Authority manages the head contractors’ performance using key performance indicators which assist in identifying performance issues on an ongoing basis and inform business improvement opportunities. The head contractors are managed under a performance management framework which operates on an incentive and abatement process.

The Authority has invested significantly over the past five years in improving its management of safety devices and has made substantial progress towards its goal of achieving a best practice approach to managing safety devices. Actions undertaken include:

�� introduced a 365 day inspection regime to ensure devices are installed and functioning in all public housing properties

�� commissioned new technology to enable staff to more effectively identify, report and action the replacement of damaged or faulty safety devices during inspections

�� improved oversight and quality assurance of inspection process to ensure all failures are appropriately actioned

�� improved maintenance procedures and contracting arrangements to ensure identified faulty or damaged safety devices are replaced within eight hours

�� completed replacement of the Authority’s core information management systems, with the new Habitat tenancy management system, to enable it to capture, maintain and interrogate information on safety devices fitted to its properties

�� awarded a public tender to have qualified technicians inspect and collect safety device information

�� implemented competency based training for frontline staff involved in inspecting safety devices.

Upon completion of the program, the combination of these activities will enable the Authority to demonstrate it has current information on the make, model and expiry date of safety devices and that it is strategically managing safety devices in its properties. It will also assure electrical safety devices are present and functioning on the last occasion of electrical works being completed or when the property was inspected by the Authority.


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The Rethink Social Housing campaign was launched to help the wider community understand why social housing is so important in the community and to showcase the real people living in social housing.

In accordance with the recommendations of the Public Accounts Committee (Reports no. 3 and 13), the Authority agreed to publish information relating to the auditing and key performance indicator framework of the Authority’s Head Maintenance Contract model, which commenced on 1 November 2014. In particular:

�� a description of its audit methodology

�� the number of jobs valued under $500 that are audited each year

�� confirmation of the total number (and percentage) of non compliant jobs

�� a breakdown of this number (and percentage) for each area of non compliance

�� a summary of the strategies the Authority is undertaking to address non compliance issues

�� publication of the target (benchmark) figure for each key performance indicator along with the actual level of performance achieved

�� a table for each of the four current head contractors indicating the level of performance against all 15 key performance indicators

�� a clear explanation of each of the 15 key performance indicators including confirmation as to which of the five overarching performance categories (timeliness, quality, cost, tenant satisfaction, safety, and participation) each key performance indicator applies.

Head Maintenance Contract audit methodologyThe Head Maintenance Contract audit methodology consists of:

�� inspections and works order audits by the head contractor (head contractor quality assurance system)

�� inspections by Authority staff prior to payment (Authority payment authorisations)

�� physical review and desktop audits on paid works to the head contractor (Authority quality assurance audits).

The methodology is outlined in Appendix 3: Head Maintenance Contract.

Rethinking social housing

Through a dedicated website and social media channels, the campaign promotes the real stories of tenants and provides current facts and statistics related to social housing.

The Authority is aware of the challenges involved in communicating the reality of social housing as often audience perceptions have been skewed by negative stories in the media.

By sharing the real stories of tenants, the campaign aims to dissipate myths and negative stigma surrounding social housing. The public is encouraged to get on board with the campaign and share their own positive stories.

The campaign’s main objective is to bring about positive conversation in Western Australia about social housing and to help the public adopt a more balanced viewpoint.

To view the website or share your own story, please visit: www.rethinksocialhousing.com

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Head Maintenance Contract works order statisticsThis section provides information on the total number of works orders as well as non compliant maintenance works orders, including the area of non compliance.

Works order statistics 2014-15Table 5: Paid works orders audited: 1 November 2014 - 30 June 2015

Works Orders Percentage

Number of paid works orders 128,491

Number of audited works orders over $500

3,059 2%

Number of audited works orders under $500

1,345 1%

Number of non compliant audited works orders over $500

1,066 24%(1)

Number of non compliant audited works orders under $500

166 12%

Notes: (1) The calculation of this percentage is the number non compliant audited works orders, divided

by the number of audited works orders over $500 to gain the percentage (1,066/(3,059 + 1,345) x 100 = 24%).

Table 6 provides a breakdown of this number (and percentage) for each area of non-compliance.

Table 6: Non compliant audited works orders: 1 November 2014- 30 June 2015 (1) (2)

Non compliance reason (3) Works Orders Percentage

Labour claimed without authority 1 0%

Labour issued without details 0 0%

Material value incorrectly claimed 2 0%

Schedule of rates incorrectly claimed 126 3%

Incorrect measurement claimed 245 6%

Schedule of rates added not related to original task

0 0%

Duplication of Schedule of rates 28 1%

Multiple of Schedule of rates cannot be claimed

13 0%

Incorrect or illogical location 71 2%

Detail not provided as required by Schedule of rates

628 14%

Included in other Schedule of rates claimed 103 2%

Incorrect Schedule of rates issued 16 0%

Incorrect measurement issued 2 0%

Faulty workmanship 121 3%

Task on works orders not done 68 2%

Task on works orders not complete 6 0%

Work not to technical specifications 303 7%

Warranty management 2 0%

Product or manufacturer defect 0 0%

Variable travel 19 0%

Emergency premium 0 0%

Notes:(1) As works orders may have multiple issues in different areas, the count of non compliance by

area will be higher than the number of non complaint works orders.(2) The Head Maintenance Contract began on 1 November 2014. (3) Appendix 3: Head Maintenance Contract, Table 25 provides descriptions of non compliance

items as listed in this table.


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Works order statistics 2015-16Table 7: Paid works orders audited: 1 July 2015 – 30 June 2016

Works Orders Percentage

Number of paid works orders 201,530

Number of audited works orders over $500 7,630 4%

Number of audited works orders under $500

5,159 3%

Number of non compliant audited works orders over $500

2,270 30%(1)(2)

Number of non compliant audited works orders under $500

1,093 21%

Notes: (1) The calculation of this percentage is number of non compliant audited works orders over $500,

divided by the number of audited works orders over $500 to gain the percentage (2,270/7,630 x 100 = 30%).

(2) There has been a change in the methodology to the calculation of this figure to show the percentage of works orders in each category, over $500 and under $500, that are non compliant. Previous calculation showed the percentage of over $500 works orders against the total of all audited works orders.

Table 8 provides a breakdown of this number (and percentage) for each area of non compliance.

Table 8: Non compliant audited works orders: 1 July 2015 - 30 June 2016 (1)

Non compliance reason (2) Works Orders Percentage

Labour claimed without authority 3 0%

Labour issued without details 18 0%

Material value incorrectly claimed 776 13%

Schedule of rates incorrectly claimed 463 7%

Incorrect measurement claimed 671 11%

Schedule of rates added not related to original task

56 1%

Duplication of Schedule of rates 75 1%

Multiple of Schedule of rates cannot be claimed

27 0%

Incorrect or illogical location 15 0%

Detail not provided as required by schedule of rate

1,194 19%

Included in other Schedule of rate claimed 483 8%

Incorrect Schedule of rates issued 44 1%

Incorrect measurement issued 11 0%

Faulty workmanship 200 3%

Task not done 143 2%

Task not complete 27 0%

Work not to technical specifications 333 5%

Warranty management 34 1%

Product or manufacturer defect 3 0%

System issue (3) 1 0%

Variable travel 1,239 20%

Emergency premium 352 6%Notes:(1) As works orders may have multiple issues in different areas, the count of non compliance by

area will be higher than the number of non complaint works orders.(2) Appendix 3: Head Maintenance Contract, Table 25 provides descriptions of non compliance

items as listed in this table.(3) In 2015-16 ‘system issue’ was included as a non compliance reason.

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Addressing head contractor non complianceNon compliance issues identified are followed up by the Authority. Actions undertaken include:

�� pursued recoups and refunds in relation to incorrect measurements claimed

�� directed head contractors to supply missing items when details are not provided as required

�� where work was not to technical specifications directions given to re-perform or correct non compliant works.

The Authority identified recoups to the value of $306,805 during 2015-16.

The Authority has also undertaken several approaches to validate the self-reported performance results of the head contractors which provide opportunities for continuous improvement. This includes but is not excluded to:

�� engaging qualified tradesmen, compliance and business improvement officers to undertake on-site quality audit inspections and desktop audits

�� operational and quality assurance meetings with the head contractors to address any issues relating to non-compliance matters

�� supporting tools and materials, such as the development of business rules, which are circulated as and when required

�� toolbox workshop collaborative sessions between the Authority’s staff and head contractors,

�� embedding the Authority’s Quality Assurance Framework

�� monthly audit reports capturing monthly trends and issues.

Head Maintenance Contract key performance indicatorsThe Authority measures the performance of the head contractors against 15 key performance indicators.

Head contractor performance 2014-15Table 17, 18 and 19 in Appendix 3: Head Maintenance Contract provides performance information for each of the head contractors for 2014-15.

These tables where provided at the request of the Public Accounts Committee who requested information on the performance of the head contractors against the key performance indicators for 2014-15.

In order to develop the tables, quarterly weighted averages were combined across contract areas to provide an indication of the performance for each head contractor.

Head contractor performance 2015-16Table 20, 21, 22 and 23 in Appendix 3: Head Maintenance Contract provides performance information for the contract areas of each head contractor.

The Authority measures and reports head contractor performance under the Head Maintenance Contract against individual contract areas on a quarterly basis. This reporting method provides the most accurate measurement of performance because it is measuring fixed quarterly performance against each contract area in line with the contract’s performance management framework. This reporting has been adopted for the 2015-16 annual report and future years.

Previous measurement methods combined contract areas and weighted average measurements. This methodology did not clearly reflect contractor performance against the Head Maintenance Contract and has been discontinued.

Definitional information on each key performance indicator including confirmation as to which of the five overarching performance categories (timeliness, quality, tenant satisfaction, safety, and participation) each key performance indicator applies is provided at Appendix 3: Head Maintenance Contract.


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Transitional housing is based around the creation of value-adding partnerships with support services agencies and other stakeholders to address identified barriers and impediments to self-reliance. By combining housing assistance with targeted support services, transitional housing works to drive long-term improvements in the lives of capable and motivated people, while providing a pathway for them to achieve their optimal housing outcome.

Transitional housing in the KimberleyThe Housing Authority is currently involved in two Transitional Housing pilot projects in the Kimberley that are providing stable, affordable housing for Aboriginal people who are employed or in training, and who ensure their children attend school regularly.

In the East Kimberley (Kununurra), nine of the 40 families participating in the project are in the process of applying for home loans. Three participants have had home loans approved, with two moving into their new homes. Children of participating families have a combined overall school attendance of 93 per cent, well above the regional average for Aboriginal children. Participants from every household are also engaged in employment.

The first successful participant in Kununurra, a single mother with four children, achieved her goal of home ownership in just 18 months.

Building on the success of the transitional housing delivered in Kununurra, 15 houses were delivered in Halls Creek in 2015, and a further seven were delivered during 2015-16.

In 2014 the Department of Regional Development approved $33 million of Royalties for Regions funding for capital expenditure for 60 transitional housing dwellings in the West Kimberley, while the Housing Authority contributed the land. The project is being delivered in partnership with the Kimberley Development Commission.

As at 30 June 2016, the project had delivered 31 dwellings in Broome and 18 in Derby that range from one bedroom to four bedroom, and house 121 individuals, including 65 adults and 56 children. Of the 65 adults, 53 are employed and all households have at least one working adult. The remaining nine properties in Broome and two properties in Derby will be delivered during 2016-17.

Community housingCommunity housing is affordable rental housing provided by not-for-profit organisations at below market rent for low to moderate income tenants. The Authority is committed to building the capacity of community housing organisations and has invested nearly $500 million into the sector, mainly through the transfers of housing assets. In 2015-16, a further 221 housing assets were transferred as part of the ongoing asset transfer program to the community housing sector.

In 2015-16, the Authority continued the development of a proposed administrative regulatory system for the sector. The regulatory system aims to build capacity within the sector and provide greater protection for government assets. The system is also being designed to respond to government red tape reduction strategies and be consistent with the National Regulatory System for Community Housing.

Transitional housing Transitional housing is a special purpose housing response provided by the Housing Authority that seeks to address recognised impediments and barriers that prevent people with capacity from transitioning along the housing continuum.

The key elements of transitional housing are:

�� time limited: housing assistance is provided for the duration required to transition

�� commitment driven: participants accept responsibility for improving their social and economic capacity

�� transition assistance: provision of adequate (funded) support services where required to enable participants to achieve transition

�� focused: a targeted response (supported by evidence from within the prevailing housing market) that is appropriate in a locational context and meets the interim needs of participants

�� clear pathways: ensure that appropriate exit options are identified and likely to be available.

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Tom Fisher HouseA ten bed facility is now providing homeless men in inner-city Perth with a safe place to sleep. As well as providing supervised overnight accommodation, residents will be able to access shower and toilet facilities, clothes washing, basic first-aid and access to information and counselling to help them transition to a new life off the streets. The much-needed facility was built in collaboration with the Department of Child Protection and Family Support. Officially opened in August 2016, the facility is managed by St Vincent de Paul.

Youth refugesTwo new youth refuges have been completed to provide safe accommodation for young people in the Perth metropolitan area who are homeless or at risk of becoming homeless.

A six bed centre in Armadale is being managed by Parkerville Children and Youth Care while Anglicare WA is managing a second facility in Rockingham which consists of seven beds plus two transitional units. Both centres provide tailored support services for young people.

Family and domestic violence accommodation and support serviceA partnership between the Authority and the Department of Child Protection and Family Support enables a refuge for women and children in the north east metropolitan area who are at risk of domestic violence. The refuge, which is managed by the Patricia Giles Centre, comprises of five units and accommodates up to 12 people.

Housing for people who are homeless or in crisis In partnership with the Department for Child Protection and Family Support (lead agency), the Authority continued to assist people who were homeless or at risk of being homeless by providing homes to individuals and families through the National Partnership Agreement on Homelessness.

Strong engagement and referral processes with support agencies funded under the Agreement are in place ensuring that clients have smooth access to social housing as it becomes available. A further two-year extension of the Agreement has been negotiated with the Commonwealth with funding from 2015-16 to 2017-18 at nearly $15 million per year. The funding does not include a capital component. However, the funding prioritises frontline services contracted through the Department of Child Protection and Family Support to meet the needs of Western Australians who are homeless.

Across the State, properties were made available to assist people who are homeless or in immediate housing crisis. The Authority’s crisis accommodation program provides capital funds to build and buy residential premises such as women’s refuges, night shelters and emergency accommodation for youth. Accommodation is primarily managed by community housing organisations, with many support services funded through the Department for Child Protection and Family Support.


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The Authority has delivered 700 new homes and 1,561 refurbishments in towns and remote Aboriginal communities directly linked to NPARIH funding since 2008, bringing significant improvement to the living circumstances of Aboriginal people.

Support to maintain a tenancy STEP also provides a case management service to Aboriginal tenants experiencing difficulties in maintaining their tenancy obligations to pay their housing bills, look after their house, and be a good neighbour.

A simple tool known as the My Tenancy My Home Public Housing Toolkit uses a collaborative approach to managing and sustaining tenancies in the most remote parts of the State. Originally developed in 2012, the toolkit includes a number of storyboards which are used by staff and tenant support workers to tell the ‘story of tenancy’ and clarify the rights and responsibilities that come with renting. The tool also provides the ability to evaluate a tenant’s progress over time. After three years of use the tool was refreshed in late 2015 by staff working in the Kimberley and the Ngaanyatjarra Lands. The tool adopted more images and easily recognisable emoticons to replace text, enhancing a culturally sensitive approach to the delivery of housing management and tenancy support services.

Rent ReformRents for all new tenancies are capped at a maximum of 25 per cent of assessable household income, in line with Western Australian public housing. In parallel, there is a comprehensive schedule of rolling inspections and maintenance programs to ensure that health, safety and amenity levels are maintained.

The Authority has continued to implement rent reform in 60 communities with more than 1,900 tenancies transitioning to the public housing-like rent model.

Housing in remote Aboriginal communities A variety of housing and related services are provided to discrete remote and town-based Aboriginal communities in Western Australia. The Commonwealth has provided significant funding under NPARIH, which since it commenced in 2008, has. has helped address poor conditions, overcrowding and improved property and tenancy management. NPARIH investment has also provided increased employment opportunities to local Aboriginal workers and businesses, and support for people wanting to move from remote communities to regional town locations.

Western Australia has been offered a new National Partnership Agreement on Remote Housing (NPRH) for 2016-17 and 2017-18 by the Prime Minister to replace the current NPARIH. The new agreement seeks to deliver similar outcomes to the NPARIH but includes higher Aboriginal employment, business engagement and home ownership targets.

Managing tenancies in remote communitiesThe Authority delivers a comprehensive housing management service to 2,670 homes in 114 remote Aboriginal communities across the State. This includes 1,499 properties managed under a contractual arrangement and a further 1,171 houses directly managed by the Authority. All rent collected under both delivery methods goes towards repairs and maintenance costs in the communities.

A competitive tender process awarded six contracts to five predominately Aboriginal not-for-profit organisations from July 2015 to provide property and tenancy management services to 1,499 properties. The regional service provider contracts are managed under a quality assurance framework in line with legislative requirements and based on the Authority’s social housing policies and practices.

The Authority has continued to implement a rental transition program in remote Aboriginal communities with groups that have signed a Housing Management Agreement. Housing Management Agreements have been established in 68 communities across the State impacting the management of more than 1,900 tenancies. All Housing Management Agreement tenancies are progressively being aligned to the processes, policies and standards that apply to public housing properties.

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Asbestos management In July 2015 the Authority commenced an audit of asbestos containing materials in properties under its management in remote Aboriginal communities. At the time there were 2,622 properties across 115 remote Aboriginal communities in scope for inspection. The Authority does not own the properties but provides tenancy and management services to the houses under various management agreements.

The Authority conducted a comprehensive review of its existing Asbestos Management Plan and register to address the Office of the Auditor General audit into asbestos in 2015. As a result of this review it was decided to adopt a new approach comprising a new Asbestos Policy and Strategy and supported by a new register system. These new policies and systems are being implemented progressively in 2016-17. These will not only address the Office of the Auditor General findings but are also expected to demonstrate best practice in asbestos management for social housing for the foreseeable future.

Over time the Authority has significantly reduced the amount of asbestos containing materials in properties under its management in remote communities. Since 2008-09, under NPARIH the Authority has delivered a total of 700 new houses and 1,561 refurbishments to 30 June 2016. Approximately 100 houses containing large amounts of asbestos have also been replaced.

A total of 2,315 properties were inspected with 143 properties suspected of containing asbestos containing materials across 34 communities. The balance of the 2,622 properties not inspected in this audit because the properties could not be accessed for cultural or other reasons will be fully inspected over the next six months. These inspections will be conducted by staff qualified for conducting asbestos containing materials inspections in the Authority or existing Regional Service Providers. These houses remain safe provided the asbestos is not disturbed. Any remediation work identified during inspections will be arranged as a priority.

Managing properties in remote communitiesFrom July 2015 maintenance services to remote Aboriginal communities are now delivered under the Authority’s Head Maintenance Contract. This contract sets a target of 20 per cent Aboriginal employment and the head contractor is encouraged to engage with Aboriginal trades and business as subcontractors.

Remote communities building and construction program The primary aim of NPARIH is to improve housing conditions in remote communities. The majority of NPARIH investment is directed at the building and refurbishment of housing and the Authority has adopted a close relationship management approach (early builder involvement) with the private sector to build new houses and undertake refurbishments of existing houses.

As at 30 June 2016, 1,561 refurbishments and 700 new houses have been delivered for Aboriginal people in six towns and 71 Aboriginal communities across the State at a cost of $531 million.

The 2015-16 target was met with 170 refurbishments and 130 new houses constructed at a cost of $80 million across four towns and 25 communities.

The Authority has also succeeded in supporting Aboriginal employment, business development and apprenticeships through its construction programs and projects. Within NPARIH, contractors are mandated to provide a minimum of 20 per cent Aboriginal employment within their workforce and are currently exceeding 40 per cent within the current contracts. Small and medium-sized Aboriginal businesses are also being supported, with approximately 45 per cent of the works under NPARIH being contracted to Aboriginal-owned or managed businesses.


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In 2015-16, State Government funding of just over $56 million was provided for the delivery of municipal and essential services to remote communities including approximately $500,000 for emergency repairs in smaller communities. Additional investment was allocated under NPARIH for extensions and upgrades to essential services infrastructure to support the agreed building program.

In 2014-15, the Auditor General issued a report on the delivery of essential services to remote Aboriginal communities, which highlighted opportunities to improve the administration of municipal and essential services programs. The Authority has been actively working on making improvements and achieving efficiencies in the delivery of municipal and essential services within its existing budget constraints.

However, much of the infrastructure in remote communities is beyond normal service life and is increasingly costly to repair and maintain, without funding for upgrades and replacement of the infrastructure.

The Regional Services Reform Unit (RSRU) has advised that changes to how municipal and essential services are delivered can be expected in the longer term as part of its broader reform agenda. The Authority will continue to engage with the RSRU in the short term to improve the delivery of municipal and essential services in remote communities.

Information recorded on the Authority’s asbestos register includes the location of the asbestos containing materials, the quantity of material, type of asbestos, and the condition and probability of disturbance. The Authority conducts biannual property inspections on all the remote Aboriginal houses it manages and staff engage with tenants at the time of the inspection to provide education on the safety and management of asbestos in their home.

The Authority will continue to manage the presence of asbestos containing materials in properties under its responsibility in remote communities according to its asbestos management plan.

Delivering municipal and essential services in remote areasThe Housing Authority delivers a range of housing related essential services and municipal services to over 11,000 people living in remote communities.

Municipal services or local government type services includes: maintenance of roads and drainage; rubbish collection and landfill management; management of public areas and maintenance of airstrips. In addition, the Authority operates and/or maintains power, water and wastewater treatment systems in certain communities. Not all communities receive the same type or level of services.

From 1 July 2015 the Authority, on behalf of the State Government, assumed responsibility for the delivery of municipal services and some essential services formally provided by the Commonwealth Government to 165 communities.

During 2015-16 all but three of the 165 remote communities were visited by Authority staff. Field surveys of each community were used to document and assess the state of infrastructure and services. This has ensured a smooth transition from the Commonwealth and an improvement in performance since 1 July 2015.

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We will continue the transformation of our organisation by aligning capability and capacity to deliver the Authority’s strategic direction.

We are transforming how we go about our business as we strive to become a world-class housing agency. Our systems and practices of the past need to evolve as we keep pace with changing demand for affordable housing. The Authority has a proud history of innovating with new market products, policy settings, services and procurement practices. Innovation is embraced across the organisation from our corporate functions to frontline service and is essential to our future success.

Transforming our organisation

Premiers Award - Foyer Oxford

Property Council Awards One on Aberdeen

Perth NAIDOC Program of the Year Intensive Family Support

Housing Program

Australasian Reporting Awards Silver award for annual report 2014-15

CitySwitch Green Office Award

Award winning housing agency

National Relay Service Friendly

Innovation - Follow-You print


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Our services and products and the way we deliver them is changing. Through transforming the way we engage with stakeholders we can make better policy decisions and influence housing outcomes.

Our business systems and processes will evolve and change. Transforming our digital technology capability enables us to design systems for the future, creating efficiencies for customers and contractors. Supported by change processes, business practices are aligned to new systems.

We couldn’t do what we do without our people. Supporting them as we change and successfully transition to new ways of working is important. Investing in our leadership and sta� capability enables us to have the right skills for now and in the future. We also value the diverse backgrounds, skills and contributions of our sta� as we promote an inclusive working environment.

The Authority will continue to strive to be an innovative, strategy driven and agile organisation that responds to demands of the time as we enable more Western Australians to have a place to call home.

Our business

Partnerships and engagementThe Authority continues to deliver on commitments made in the Affordable Housing Strategy via the strong partnerships it has formed within government, the private and not-for-profit sectors. The Authority is helping to transform the Western Australian housing sector by leveraging government resources and procurement to lead and drive innovation and market responses.

Housing Industry Forecasting GroupComprising key industry and State Government agencies, the Housing Industry Forecasting Group continued to be a reliable source of housing supply information and forecasts for Western Australia. This group provides valuable consensus based forecasts on supply trends to policy makers and industry through its twice yearly reports. In 2015-16, the Authority and the Department of Planning continued to jointly fund and provide the secretariat function of the group. Reports are made available to the public.

Stakeholder engagementDuring 2015-16, the Authority continued to support and work with a wide range of stakeholders in the housing sector. The Authority is a corporate member and/or sponsor of a range of industry associations such as the Urban Development Institute of Australia, the Property Council and the Housing Industry Association. The Authority is an active participant in industry events and forums to build engagement with the Affordable Housing Strategy and better respond to concerns and trends in the sector, including the Partnership Forum between the State Government and not-for-profit sector. Supporting partnership arrangements with the Australian Urban Design Research Centre also provides valuable information that supports our strategic direction.

The Authority is also a corporate member or sponsor of organisations such as Leadership Western Australia and the Institute of Public Administration Australia, through which it engages thought leaders and policy makers with the Affordable Housing Strategy.

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Residential disability respite accommodationA Memorandum of Understanding between the Authority and the Disabilities Services Commission was established to deliver a six or seven bedroom residential disability respite accommodation. The facility, known as Pilbara Respite House will be located in Port Hedland and built on land owned by the Authority. The facility will allow people with disability or their carer’s, to have a short term stay away from home in an accessible, homelike environment. Construction is expected to commence in early 2017.

Tenant managementA Memorandum of Understanding between the Authority and the 360 Health + Community was established to enable information sharing for the purpose of risk assessment, case management and response by each agency in relation to current and potential tenants where there is a declared, or a reasonable suspicion of, a mental illness.

Financial counselling A partnership between the Authority and the Department of Local Government and Communities was established to manage the delivery of financial counselling services to the Authority’s tenants by a specifically appointed “consortium” of providers. Funding from the Authority and other government and non-government organisations and coordinated through the Department of Local Government and Communities will provide a new financial counselling services program for the next three years.

Primary health careA Memorandum of Understanding between the Authority and Roaming Education and Community Health (REACH) was established to provide the overarching framework to provide primary health care to the tenants of Wandana flats, Subiaco.

New peak body arrangementsIn 2014, the Authority engaged in a three to five year contract with Shelter WA as the peak body for affordable housing, a key voice for the sector and source of advice to government. This relationship continued throughout 2015-16 with Shelter WA encouraging consumers, housing providers, government and industry across Western Australia to work together to address affordability issues. Shelter WA has played a key role in a number of strategic policy projects for the Authority, undertaking research, stakeholder engagement, and acting as a catalyst for change.

Interagency agreementsThe Authority works with various government and non-government agencies to assist Western Australia’s vulnerable and most in need. These collaborative efforts are in place to aid mutual clients in stabilising their lives and enhancing future outcomes. The total number of agencies involved through Memorandum of Understandings at 30 June 2016 was 20.

During the 2015-16 financial year, the Authority entered into five new partnerships and agreements with various government and non-government organisations.

Social Housing Investment PackageA Memorandum of Understanding between the Authority and the Department of Regional Development was established to part deliver the regional component of the Social Housing Investment Package. The package will facilitate the delivery of 1,000 new public housing dwellings across the State and the deconcentration of key areas.


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Improving the way we do thingsTo achieve our vision, we are transforming how our clients, contractors, service providers and staff experience our systems. We are not starting from scratch, but building on the many things we already do well.

Improvements were also made to our corporate record-keeping system so that documents and information flow freely between systems, improving efficiency through automated processes. Large volumes of letters generated by our tenancy management system, Habitat, are saved through automated processes and stored for staff to view anytime anywhere. Over time, the digital files are expected to become the main source of information for staff.

During 2015-16, the Axiom program progressed activities related to the financial management systems replacement project. The activities included design, build and testing of the replacement system, MS Dynamics AX. Modifications were necessary to comply with the Financial Management Act 2006, the Treasurer’s Instructions and applicable Australian Accounting standards. Associated financial policies and procedures were developed, or amended as appropriate.

An initial implementation of the new system is scheduled for early 2016-17, followed by implementation of additional functionality later in the year.

The Housing Authority was nationally recognised for its sustainability efforts, winning both the National and State Partnership Awards in the 2015 CitySwitch Green Office Awards.

The awards recognise organisations that have demonstrated outstanding environmental leadership.

The Authority collaborated with Curtin University to create a Sustainability Action Plan to raise awareness of the importance of energy and water efficiency, and waste management in the organisation.

The plan included:

• Replacing and recycling existing light tubes with energy efficient LED lights

• Staff education and engagement by recruiting “Green Volunteers”

• Digitising business processes such as the integration of the tenancy management system with a document sharing system.

This achievement is testament to the Authority’s dedication to achieving sustainable outcomes in the workplace.

Sustainable efforts pay off

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InnovationThe Authority’s Innovate Program works to inspire ideas from employees across the organisation. By engaging and supporting staff to develop and implement their ideas, the program helps nurture a culture of innovation by providing opportunities at a personal and professional level to develop leadership, project management, negotiation, and communication skills.

The program has been in operation since late 2013 and has inspired a range of ideas from staff across the organisation. The program engages and supports staff to develop and implement their innovative ideas, and provides staff with opportunities to develop skills in leadership, business improvement, communication and change management.

Four hundred and forty-two innovative ideas have been put forward by staff since the program commenced and have led to a range of outcomes. One idea from a team led to the implementation of ‘Follow-you print’ across the agency, delivering business efficiencies by reducing the number of print devices and waste from unnecessary printing. An idea to generate new housing designs resulted in [design] ability; a competition open to tertiary students across Western Australia that attracted 45 students working in teams to produce nine design submissions. These designs attracted high praise from the judging panel that included a range of industry professionals.

Other staff ideas have demonstrated the feasibility of innovative renewable energy models to housing assets, contributed to a range of options to address urban infill issues, and increased the readiness of the organisation to apply innovative digital technology in delivering more efficient services.

The Authority has maintained its position as a key supporter of innovation across the Western Australian Public Sector. By hosting and partnering in cross-sector innovation events and communities of practice, the program continued to facilitate innovation and entrepreneurship as a key focus area across government.

Customer service improvementAs part of its transformation process, the Authority has also focussed on improving efficiency and effectiveness in its customer service. As well as maintaining face-to-face client contact at our offices state-wide, the Authority has also invested in the last few years building a high-quality call centre to provide better quality and responsiveness to tenants and the public. The Housing Direct call centre operates around the clock every day of the year, in order to deal with urgent repairs to properties and field public complaints about potentially disruptive behaviour by tenants. The call centre is a key tool in our centralised property maintenance contracts.

Housing DirectDuring 2015-16, Housing Direct handled 195,462 inbound calls and 78,329 online forms. This represents an average of 748 enquiries on every day of the year. The average waiting time experienced by maintenance callers was seven minutes. By comparison in 2014-15, Housing Direct handled 198,027 inbound calls and 18,727 online forms. This was an average of 600 enquiries per day. The average waiting time in 2014-15 was nine minutes.

Staff are highly trained and sensitive to the challenge of dealing with a very diverse client base and community concerns about tenant behaviour. Housing Direct continued to be recognised as a leader in Australian call centres.

The Authority and Housing Direct is now recognised as being at the forefront of diversity, access and disability best practice in Australia by being Relay Service Friendly. Relay Service Friendly is a program by the National Relay Service that recognises organisations who have taken a proactive and holistic approach to provide access to staff and customers who are deaf or have a hearing or speech impairment. Customers who use the National Relay Service make phone contact using a range of different technologies. They may be speaking, typing or signing in Auslan. At the centre of the call is a relay officer who acts as a link between our staff and the caller.

Innovateconnecting the dots


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The Authority’s Innovate Program, designed to help staff transform their innovative ideas into reality, has resulted in a successful affordable housing design competition for university students.

The [design]ability competition was open to students from Perth-based universities and other tertiary institutions. Interdisciplinary teams of tertiary students explored how high-quality design and innovative construction techniques could be implemented in an affordable housing setting. It sought innovative affordable housing concept proposals for a study site in Fremantle.

Innovation in action

The competition was the brainchild of staff member, Alexander, as a way to encourage the exploration of alternative and innovative built-form construction for the Western

Australian marketplace.

“The Innovate Program provided a supportive pathway for the [design]ability competition to

go from idea to implementation,” Alexander said.

“Apart from the positive publicity, it was satisfying as an employee to be empowered to bring something to

fruition.

“It demonstrates the trust of the organisation in its employees and provides a great learning experience in what passion and

persistence can bring.”

The idea for the competition was well received by the Authority and after much planning and preparation it was launched and executed to great success.

The competition attracted a very high calibre of entrants who were keen to show off their architecture, planning and design skills to compete for $20,000 in cash prizes.

The entries showcased much diversity in the built form materials - from shipping containers and modular construction, to concrete tilt-up panels and the reuse of materials from the buildings currently on the site.

The awards ceremony for [design]ability, was held in October 2015 and the winning teams comprised of students from disciplines ranging from Master of Architecture to Urban and Regional and Planning, and a Bachelor of Medicine.

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Perth NAIDOC AwardsThe Authority won Program of the Year 2016 in the Perth NAIDOC awards for the Intensive Family Support Housing Program in partnership with the Department for Child Protection and Family Support, Noongar Mia Mia Ltd, Western Australia Police and Corrective Services.

CitySwitch AwardsThe Authority has been doubly recognised in the CitySwitch Green Office - winning both the National and State 2015 Partnership Awards in collaboration with Curtin University.

2015 Urban Development Institute of Australia (WA) Awards for Excellence – Best Masterplanned Development – The Village at WellardThe Village at Wellard is Perth’s first greenfields, purpose-built transit oriented development featuring a pioneering design that broke new ground in WA to deliver a commercially successful, attractive and affordable new community.

Awards

Premier’s Awards – Foyer OxfordFoyer Oxford brings together a range of stakeholders to deliver a holistic response to youth homelessness. The 98-unit complex in Leederville was completed in 2014, and provides secure accommodation and services designed to transition young people into fully independent and productive lives.

Australasian Reporting AwardsAt the Australasian Reporting Awards 2016, the Authority was awarded a 2016 Silver Award and was a finalist in the Special Award – Online Reporting (Public Sector). The Awards provide an opportunity for organisations in Australasia to benchmark their reports against best practice criteria.

Property Council Innovation and Excellence AwardThe outstanding affordability outcomes delivered by One on Aberdeen were further recognised by winning a national Property Council Innovation and Excellence Award in June 2016 for ‘Best Affordable Housing Development’.

2015 Urban Development Institute of Australia (WA) Awards for Excellence – Judges Award - One on AberdeenAffordability was always the driving force of One on Aberdeen, and the Authority was able to think outside the box and leverage private sector capital and development expertise to deliver outstanding policy and commercial outcomes.

One on Aberdeen

Foyer Oxford

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1,647(1,523 full time equivalents)

across more than

THE AUTHORITY

EMPLOYS

employees

Our peopleThe Authority employs 1,647 employees (1,523 full time equivalents) across 30 locations around the State. Our staffs are critical to organisational success and positive outcomes for clients.

Implementing the Affordable Housing Strategy and our Strategic Plan 2020 has required us to change how we work. We have built new capability in our workforce in project management, change management and stakeholder management, and sought to enhance the skills of our leadership group.

We are also strongly focussed on recruiting new talent, developing and retaining staff, enhancing a positive culture and fostering agility in individuals and the organisation. We are committed to reconciliation with Aboriginal and Torres Strait Islander people and to embrace diversity in our workforce.

19%

21%

12%19%

13%

9%

7%

Profile of workforce

Level 1 &2

Level 3

Level 4

Level 5

Level 6

Level 7

Level 8 and above

24%

26%

23%19%

6%2%

Employee age profile

16-24

25-34

35-44

45-54

55-64

65+

60%

18%

15%

3%1%

3%

Business Services

Commercial Operations

Strategy and Policy

Office of the Chief Executive Officer

Organisational Transformation

Service Delivery

Staff by division

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Embracing diversity, culture and inclusion

Workforce planning and diversityWorkforce planning is about providing sufficient and sustainable capability and capacity in our staff to deliver now and in the future. The Workforce and Diversity Plan 2014-2017 through a number of initiatives connects business strategy with an inclusive people strategy. The plan is current and future focused, identifying actions the Authority will take to build capability and capacity to deliver its business outcomes.

We value, embrace and are committed to creating a diverse and inclusive workplace. The Authority’s key mechanism to realise this goal is its diversity strategies which aim to increase representation of and support for Aboriginal and Torres Strait Islander people, people with disability and women in senior management.

We are committed to having open and inclusive employment practices, which enables attraction and retention of talented people from all groups within the community. Measures from the plan are supported by the Reconciliation Action Plan.

During the year, to further equity and diversity objectives, the Authority:

�� trained equity and diversity contact officers to ensure at least one officer was in each region

�� reviewed human resource policies to ensure the policies have flexibility, equity and diversity built into their practices

�� designated two Aboriginal positions within the graduate program and allocated six Aboriginal trainee positions to promote diversity and support the recruitment of Aboriginal and Torres Strait Islander people.

Females inpositions level 7

and above

Sta� with adisability

12% Sta� fromculturally diverse

backgrounds

Sta� areAboriginal Australian

40%

4%

1%

1,647STAFF


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Aboriginal Employment StrategyThe Authority continued to implement its Aboriginal Employment Strategy 2014-2017 as it works towards an increase in the representation of Aboriginal and Torres Strait Islanders in the workforce at all levels. The strategy places a strong emphasises on the need to create a supportive and culturally inclusive working environment, where Aboriginal and Torres Strait Islander people feel valued.

In 2015-16, the Authority has been implementing initiatives from the findings of an employee satisfaction survey. The survey was conducted in 2014 to seek feedback from Aboriginal and Torres Strait Islander employees so that initiatives in the Aboriginal Employment Strategy were aligned to staff values.

A formal mentoring program is offered at the Authority where Aboriginal staff can be a mentor or a mentee to share their knowledge and experiences.

Aboriginal cultural awarenessThe Authority provides Aboriginal Cultural Awareness training through the Public Sector Commission’s Sharing Culture online training and face-to-face training. Ninety-six per cent of sta� completed the training. All new sta� are required to complete the online training in the �rst month of their employment.

To support cultural awareness there are also Aboriginal Cultural Protocols that provide guidance on how to show respect for the traditional owners of this land.

ReconciliationThe Authority is working towards building positive relationships with Aboriginal and Torres Strait Islander people. During 2015-16, the Authority participated in a variety of events to celebrate and build better partnerships with Aboriginal people and communities.

The Authority supported important landmark events such as NAIDOC, Sorry Day, Harmony Week and Reconciliation Week. The Authority has a Reconciliation Action Plan Committee and a dedicated team who promote initiatives of the Aboriginal Employment Strategy.

An ongoing Reconciliation initiative is an Aboriginal Art Program established to acknowledge the importance of local culture and Aboriginal people as traditional custodians of the land. Artworks are to be progressively located in the public foyers of offices throughout the State.

Sponsorship of NAIDOCThe Authority continued for a second year, its sponsorship of the Male and Female Elder of the Year Awards at the NAIDOC Perth Awards. Sponsorship of these awards provides an opportunity for the Authority to acknowledge and celebrate the vital role that elders play in Aboriginal families and communities.

The Authority celebrated NAIDOC Week with a flag raising ceremony at its head office and hosted events at several regional offices to mark the occasion. Staff hosted an outdoor activity celebrating connection with song lines as well as stalls providing information and answering questions on affordable housing options. Volunteers from the Authority also participated in community events including the Jacaranda Community Centre NAIDOC Family Day and the Town of Bassendean and Derbarl Yerrigan Health Service NAIDOC Family Day.

Marie Taylor perform

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Attracting and retainingRecruiting and retaining talented people are integral to the Authority’s business strategy.

Innovative recruitmentThe Authority is trialling innovative and agile solutions in the practical delivery of public sector human resource management as part of its transformation.

A pilot program to recruit Customer Service Officers in the Perth metropolitan area produced a shared pool of suitable applicants with strong customer service skills. Results of the pilot and related initiatives were evaluated during 2015-16 and identified cost savings and more streamlined processes could be achieved.

Aboriginal traineeshipsThe Authority is a lead agency in the Public Sector Commission’s Aboriginal Traineeship program. Currently six Aboriginal trainees are working towards completion of their traineeships at the Authority’s head office and in regional locations while five trainees have been offered permanent employment. During the 12 month program, trainees study for either a Certificate II or III in Government and are provided with an Aboriginal mentor who provides support and cultural security. Upon successfully completing the program all trainees are offered a permanent position and further study of either a Certificate III or IV in Government through our sponsorship learning and development program.

School based traineeshipsThe Authority continues to participate in the Public Sector Commissioner’s School Based Traineeship Program and is currently employing two school-based trainees in its metropolitan offices.

SNAPSHOT

Housing Authority staff member, Jade, had the opportunity to participate in the inaugural Yorga Djenna Bidi Aboriginal Women in Leadership program.

The program was run by Leadership WA and gave 20 women from across Western Australia the opportunity to take part in a six-month program designed to create a strong leadership community of Aboriginal Women.

“Attending the program and being inspired by these amazing women, reiterated the importance of family, community, knowing your own strengths and staying true to yourself,” Jade said.

“I am proud to work for an organisation that supports such an exciting initiative and am thankful to the Authority for granting me the opportunity to be a part of something so special.”

Program participants chosen were all passionate Aboriginal and Torres Strait Islander women. The course was designed to help participants to become more inspirational, confident and effective leaders within their realm of influence, be it at work, among their family, with peers or in the general community.

Yorga Djenna Bidi forms part of the Authority’s Women in Leadership Program and supports its Aboriginal Employment Strategy to invest in staff by providing career development opportunities.

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Graduate programOur graduate program helps university graduates to kick start their government career by providing experience in real world settings. The program provides access to income, training and development, and opportunities to work on different projects to gain broad experience.

More than 180 applicants applied for the Authority’s 2016 graduate intake. It is a two-year program and has currently nine graduates in progress, of which five were appointed in 2016. Two graduate positions have been designated for Aboriginal and Torres Strait Islanders as part of the Aboriginal Employment Strategy.

Developing capabilitiesThe Authority is dedicated to providing a learning environment in which staff can broaden their skills and develop future capabilities to achieve our business outcomes.

Developing our leadersThe Authority has a strong commitment to leadership and employee development. Leadership programs have been developed that commence with individual development to transformational leadership. Leadership programs offered in 2015-16 included Foundation of Leadership, Future Leadership and Transformation Leadership. More than 622 staff took part in these programs since inception in 2014-15.

Women in leadershipThe Women in Leadership program provides development opportunities including skills workshops, attendance at conferences, inspirational speaker sessions, discussion forums and training. These opportunities further the advancement of women as part of creating an equitable and inclusive environment for women to progress into leadership positions. In 2015-16, 59 staff attended the various Women in Leadership sessions.

96% employees in identi�edareas undertook disability

awareness training

94% employees completed accountable and ethical

decision makingtraining

96% employees completed Aboriginal

cultural awarenesstraining

93% leadersdeveloped

92% employees completed integrity

training

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Learning and developmentThe Authority’s learning and development programs enable staff to develop their capabilities in order to meet current and future demands. The Authority employs a ‘70:20:10’ learning strategy to provide active learning through on-the-job learning, tasks and problem solving (70 per cent); coaching, mentoring and peer learning (20 per cent); and formal training, workshops and seminars (10 per cent).

During 2015-16, corporate training programs focussed on strategic skills required for the future in line with the Workforce and Diversity Plan 2014-2017. These included specific opportunities related to change management and project management. A series of masterclasses aimed at increasing the capability of staff engaged in different parts of a change initiative on how to drive or respond to change.

Learning and development opportunities for frontline staff were a focus during the year to build their capability and capacity to contribute to achievement of the Authority’s strategic direction. During 2015-16, onboarding training was provided to 142 Customer Service Officers, Housing Service Officers and Property Service Officers across the State. In addition, 654 staff attended a further 87 courses designed to increase the scope and depth of their knowledge on subjects related to property and tenancy management.

The distance training strategy, continues to provide regional Western Australian staff with improved access to facilitated training without leaving their office, and achieved travel and accommodation savings in excess of $144,000 during the year. There was also an increased use of eLearning and the expansion of competency based training.

MentoringMentoring is a collaborative learning relationship where staff members share their skills, knowledge and experience with another person and provide a safe and trusted space for development.

The Authority’s mentoring program is in its second year. Each intake runs for 12 months where mentors and mentees are supported with structured workshops. Participants can continue their mentoring relationship informally, and join a growing cohort of mentoring alumni. To date 87 staff have completed the formal program and joined the alumni.

In 2015-16 24 mentors and 30 mentees participated. The program is also offered to Aboriginal and Torres Strait Islander staff who can be a mentor or a mentee. Currently nine Aboriginal staff participate in the formal program. There are four mentors and five mentees participating.

Corporate inductionThe Authority provides new staff with a comprehensive corporate induction including a full-day session that provides an opportunity to engage with the Corporate Executive, become familiar with the vision, mission and values of the Authority and understand how their role fits within the organisation. During 2015-16, 67 metropolitan and regional staff attended a corporate induction session.

Attendee surveys show very high levels of satisfaction with the program and an increased understanding of the business model of the Authority, its journey of change and strategic direction and increased sense of belonging to the organisation.


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This section provides information on current and emerging significant issues and trends impacting the Authority’s operations.

Signi�cant Issues Impacting the Authority

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Housing Authority Annual Report 2015–2016 | Significant Issues Impacting the Authority

Our environmentHousing affordability is an issue that continues to demand a strong response from Government and industry. Despite some incremental improvements due to low interest rates, lower house prices and lower rents (as compared to the peaks of 2013-14), the proportion of the market that is affordable to low and moderate income households remains chronically undersupplied.

A very low income household on less than 50 per cent of the Perth median income ($44,350 per annum) could afford rent of $260 per week, well below the lower quartile Perth rent of $350 per week or the median rent of $395. A household on the minimum wage of $34,980 could afford rent of $200 per week.

While Western Australian home ownership rates are higher than many other States, households on median incomes are still struggling to purchase a home. A household on the Perth median income of $88,700 would be able to afford a house costing around $425,000, well below the Perth median house price of $520,000 (REIWA March 2016 Quarter). These examples also assume that households would be able to save a 10 per cent deposit which is extremely difficult if they are renting in the private market.

Seniors are being affected by the lack of affordable and appropriate housing. There is growing concern about the number of older home owners who will enter retirement as renters, or with large outstanding mortgages. Further, as the population ages the incidence of disability will increase demand for services and housing.

The Authority will continue to work in partnership across government and with the private and not-for-profit sectors to develop solutions to help address this structural demand for affordable housing.

In this regard, a key missing ingredient in the Australian housing system is an efficient mechanism to access long term private finance at scale to help address the lack of secure rental stock in Australia for people on low incomes.

In early 2016, the Hon Christian Porter MP, Minister for Social Services, announced the establishment of a working group to investigate innovative ways to improve the availability of affordable housing. Following this, the Affordable Housing Working Group was established by the Commonwealth Government under the Council on Federal Financial Relations.

The working group is driven by Federal Treasury, and comprises Treasury officials from the Commonwealth, New South Wales, Victoria and Western Australia, along with the Commonwealth Department of Social Services. The Authority, via the Western Australian Department of Treasury is actively participating as part of the working group.

The objectives of the working group focus on funding and structural models to increase social housing and affordable rentals for those on low incomes, and recommendations to ‘Heads of Treasuries’ will be made in late 2016.

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Signi�cant issues and commitmentsLand and a�ordable housing supplyIn 2016-17, the Authority intends to produce 1,901 housing lots through its land development activities, including 1,452 lots developed with its joint venture partners. The Authority will continue to target its role in land development at the lower end of the market, with at least 70 per cent of single residential lots to be sold below the median price and at least 30 per cent sold below the lower quartile price. By actively participating in the State’s residential land market, the Authority and its partners help to ensure a steady supply of a�ordable, entry-level lots in new and established communities, as well as providing land for the Government’s social and a�ordable housing initiatives.

Through the State Government’s Affordable Housing Strategy, we continue to work with the private and not-for-profit sectors to increase the diversity and supply of affordable housing options across the housing continuum. Close to 24,000 affordable homes have already been delivered through innovative partnerships, procurement and construction methods and the Government is on track to meet its revised target of 30,000 by 2020.

A�ordable home ownership opportunitiesHome ownership outcomes continue to be supported through Keystart’s low deposit loans, as well as the Authority’s shared equity programs, which target specific low and moderate income target groups. These include the successful SharedStart initiative, which will continue in 2016-17. SharedStart loans are linked to a construction expression of interest process that, subject to favourable market conditions, enables us to procure newly built homes in bulk from the market at discounted prices. The discount gain becomes the Authority’s equity share in the properties.

Since 2011, SharedStart has assisted more than 1,200 low to moderate income households to access home ownership by purchasing an entry-level home through a combination of Authority co-ownership and a Keystart home loan.

On average the housing price is well below the lowest quartile house price for Perth. Purchasers benefit from government co-ownership, which significantly reduces their mortgage costs, as well as having access to a low-deposit loan from Keystart. It has created approximately $106 million in assets for the State in the form of equity in co-owned properties.

SharedStart is part of a broader Affordable Housing Strategy supply initiative that has financed and delivered 2,794 entry-level properties into the market since 2011. Although expenditure was adjusted down by $50 million in 2015-16 due to record high building activity, the program will continue in 2016-17 and commence more than 600 homes.

A�ordable rental supplyThe NRAS is a Commonwealth Government initiative and an important part of the Affordable Housing Strategy. With State funding support, it has been successful in helping low to moderate income earners access discounted private rental properties, with more than 3,500 NRAS dwellings delivered to date in Western Australia. It is estimated that the final number of NRAS dwellings delivered by 30 June 2016 will be approximately 4,000.

The Assisted Rental Pathways Pilot, an initiative of the Social Housing Investment Package, will provide rental incentives and tailored support services to help suitable public housing tenants and waitlist applicants to access and maintain housing in the private rental market. The pilot takes advantage of current market conditions, including high vacancy rates, in order to provide new pathways for people who may only have short term needs for subsidised housing.

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The Royalties for Regions – Housing for Workers initiative provides homes for key workers in regional Western Australia in areas where housing markets are experiencing critical shortages in affordable and appropriate housing with $235.56 million committed by the State Government over eight years (2011-12 to 2018-19). To date, $218.57 million has been allocated for 10 projects in various locations across the Pilbara, Kimberley, Gascoyne, Peel and Wheatbelt. These projects are expected to provide 602 housing opportunities for regional key workers, with 539 units delivered to date and the remainder scheduled to be delivered by 2017-18. Projects have ranged from individual houses to key worker villages, providing homes for employees of local businesses, not-for-profit sector organisations, government and the wider community.

Social housing

Social Housing Investment PackageTo complement the broader initiatives of the Affordable Housing Strategy and build on more than 5,000 social homes delivered to date, the Social Housing Investment Package will provide 1,000 additional social housing dwellings during 2015-16 and 2016-17. By 30 June 2017, the package will halve the number of seniors and families with children who are on the priority waiting list for social housing.

The package estimates to deliver up to 1,340 homes, including 1,000 additional social homes (that includes leasing private rental stock), replacing existing underused social homes with new social housing stock and making available additional general housing supply to the market.

A key outcome of the package is to ensure that the right house is provided to the right person in the right location. The location of properties is supported by a demand model that has mapped demand activity across the Authority’s regions. Approximately 80 per cent will be delivered in the metropolitan area and 20 per cent in the regions.

The State Government is maximising value for taxpayer money by taking advantage of opportunities in the market, with a focus on a mix of construction of new homes, purchasing ‘o� the plan’ or established homes, leasing private rental stock and refurbishment or redevelopment of existing public housing sites, which will also help reduce concentrations of public housing in problem areas.

The Authority recently partnered with the Western Australian Council of Social Service (WACOSS) and Shelter WA, to work with community services organisations to co-design the pilot, drawing on the sector’s expertise in delivering tailored support services for different client groups. The co-design process involved a series of three forums with these organisations to develop an understanding of the best way to support participants to become self-sustaining in the private housing market. In June, the Authority invited applications to deliver services under the pilot, with the intent of housing up to 200 households by June 2017.

The Authority has been working to deliver service worker accommodation in regional communities under the Affordable Housing Strategy and Royalties for Regions – Housing for Workers initiative. This includes targeted interventions such as key and service worker housing and employment-related accommodation to ensure that key and essential services are maintained in regional areas. These initiatives ensure that businesses and non-government organisations are able to attract and retain qualified and experienced employees to maintain quality services.

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Public housingThe Authority continued to move towards a standard rent for public housing of 25 per cent of gross household income, through the implementation of a maximum weekly increase of $12 per week for current tenants in 2015-16. Rent for new tenants was set at the 25 per cent standard from 28 March 2016. In May 2016, the State Government approved a further $6 per week maximum increase for existing public housing tenants as part of the 2016-17 State Budget. The revenue generated from these rent increases will be reinvested into the broader sustainability of the social housing system.

In support of the implementation of its Disruptive Behaviour Management Policy, for the small proportion of public housing tenants who have difficulties managing their tenancies, $12 million was invested by the State Government over four years from 2012-13 to 2015-16. The funding has enabled 35 additional specialised staff members to be employed in metropolitan and regional areas. The staff manage and investigate tenancy complaints from the public and ensure public housing tenants who engage in disruptive behaviour are held accountable for their behaviour. The success of the policy is evidenced by the reduction in the number of strikes issued between the first and subsequent strikes and the program will continue from 2016-17 onwards.

The Authority received Royalties for Regions funding of $33 million over three years, from 2014-15, for the West Kimberley Transitional Housing program. This initiative will deliver up to 60 new houses in Broome (40) and Derby (20) to facilitate the transition of selected Aboriginal tenants from public housing to independent housing options. The transitional housing project is a joint venture between the Kimberley Development Commission and the Authority. To date, 49 properties have been completed, with the remainder expected to be completed by the end of the 2016-17.

At the 2015-16 Mid-Year Review, after re-assessment of all of the delivery streams within the Social Housing Investment Package, the estimated program cost was revised to $564 million over four years. The package is funded from a mix of sources including $204 million from the Authority’s cash balances, $139 million from the sale of property, $87 million of the Authority’s land, $85 million from Royalties for Regions and $49 million distribution from Keystart to the Authority. A $125 million loan facility will be used as the funding source to finance the redevelopment and renewal components of the package. The loan will be paid back by 2018-19 through the sale of new or refurbished dwellings and will therefore have a neutral net debt impact by 2018-19.

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KeystartAs part of the 2015-16 Budget, the Treasurer announced that the divestment of part of Keystart’s loan book would be investigated as part of the State Government’s asset sales program. The divestment would not only reduce State debt, but also help to secure a sustainable future for Keystart as a key part of the Affordable Housing Strategy.

In early 2016, Keystart announced that it was seeking expressions of interest from interested parties with the capacity, capability, experience and understanding to acquire up to $1.6 billion of its loan portfolio through a process of equitable assignment.

Under the proposed transaction, there will be no change to service levels or the terms and conditions for existing Keystart customers, for whom it will be ‘business as usual’. Keystart’s existing interest rate setting policy, lending eligibility criteria and rigorous loan assessment process are expected to remain unchanged as a result of the project.

The process is expected to conclude during the 2016-17 financial year.

Proposed move to FremantleConsistent with State Government support for decentralising office accommodation from the Perth CBD, combined with changes in the State’s financial position and a softening of the Perth property market, the State Government has proposed the potential relocation of the Authority’s head office from the Perth CBD to a new office building in Fremantle in early 2020.

This relocation represents a significant opportunity for the Authority to create a modern and dynamic work environment that meets our business needs and helps us pursue our strategic directions over the next 10 to 15 years.

Housing and related services in remote Aboriginal communitiesThe provision of housing and the delivery of municipal and essential services in small, isolated locations presents significant challenges and risks without adequate and secure long term funding to maintain housing assets and upgrade and replace critical essential infrastructure. The Authority is concerned about its ability to provide services to a reasonable standard and on a sustainable basis.

The Authority will continue to engage with the Regional Services Reform Unit, the Department of Premier and Cabinet and Treasury on the longer term funding and delivery arrangements for housing, municipal and essential services in the context of the regional services reform agenda. However, the Regional Services Reform process is focused on long term systemic change. The Authority acknowledges its ongoing responsibility for these services in the short term but additional State Government funding is required.

Commonwealth funding for remote communitiesFollowing the Commonwealth’s withdrawal of funding for essential and municipal services in 2014, NPARIH remains the Commonwealth Government’s only significant investment in infrastructure in Western Australia’s remote Aboriginal communities. However, the Commonwealth is yet to engage substantively on the critical issue of what happens after the current funding runs out on 30 June 2018. Without Commonwealth funding beyond 2018, the State faces a substantial funding deficit for providing sustainable housing and municipal and essential services.

The Authority is working with relevant agencies to pursue an ongoing shared funding commitment from the Commonwealth beyond 2018, to secure sustainable investment in remote communities and support the Regional Services Reform.

The Federal Government has formally proposed to replace the existing NPARIH with a new National Partnership Agreement. The new agreement has a similar scope and the same funding commitment as NPARIH but with some increased emphasis on aboriginal employment outcomes. The Authority and the Commonwealth officials are working to finalise a detailed program of works that will underpin the new agreement.


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This section contains the audited Financial Statements and Key Performance Indicators, other financial disclosures, and reports on compliance with various legislative requirements and Government policy requirements.

Disclosures and Legal Compliance

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Financial StatementsCerti�cation of Financial StatementsFor the year ended 30 June 2016

The accompanying �nancial statements of the Housing Authority and the accompanying consolidated �nancial statements have been prepared in compliance with the provisions of the Financial Management Act 2006, from proper accounts and records, to present fairly the �nancial transactions for the �nancial year ended 30 June 2016 and the �nancial position as at 30 June 2016.

At the date of signing, we are not aware of any circumstances which would render the particulars included in the financial statements misleading or inaccurate.

Paul Whyte Acting Chief Executive Officer Accountable Authority

9 September 2016

Lorne O’Mara Chief Finance Officer

9 September 2016

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THE HOUSING AUTHORITY AND CONTROLLED ENTITIES

Consolidated Parent

Note 2016 2015 2016 2015$000 $000 $000 $000

IncomeSales 7 379,832 466,724 376,734 430,907Rental revenue 8 420,744 448,468 420,744 448,468Commonwealth grants and contributions 9 284,235 204,550 284,235 204,550Interest revenue 10 224,994 217,000 111,227 110,813Developers' contributions - 9 - 9Other gains 11 27,416 26,062 112,551 107,031Total Income 1,337,221 1,362,813 1,305,491 1,301,778

ExpensesCost of sales 7 245,285 310,897 241,824 277,563Rental expenses 13 355,603 356,936 355,603 356,936Community support expense 14 184,638 160,848 184,638 160,848Employee benefits expense 15 134,818 136,623 134,185 136,003Supplies and services 16 41,488 40,202 36,953 35,160Depreciation & amortisation expense 17 150,009 146,486 148,406 145,288Finance costs 18 160,945 156,212 160,942 156,209Share of net losses of associate - - - -Accommodation expenses 19 13,305 13,571 12,223 12,522Loss on disposal of non-current assets 12 27,133 16,115 27,118 16,100Other expenses 20 150,684 137,101 127,153 120,747Total Expenses 1,463,908 1,474,991 1,429,045 1,417,376Loss before grants and subsidies from State Government (126,687) (112,178) (123,554) (115,598)Grants and subsidies from State Government 9 105,448 90,730 105,448 90,730Gain (Loss) for the period (21,239) (21,448) (18,106) (24,868)

Other Comprehensive incomeRemeasurements of defined benefit liability 38 (44) (1,523) (44) (1,523)Changes in asset revaluation surplus 41 (775,430) 366,460 (775,425) 366,467Total other comprehensive income (775,474) 364,937 (775,469) 364,944Profit (Loss) Attributable to:Consolidated Entity (20,837) (21,375) - -Non-controlling interest 50 (402) (73) - -

(21,239) (21,448) - -Total comprehensive income attributable to:Consolidated Entity (796,311) 343,562 - -Non-controlling interest 50 (402) (73) - -

(796,713) 343,489 - -TOTAL COMPREHENSIVE INCOME FOR THE PERIOD (796,713) 343,489 (793,575) 340,076

* Refer Note 3 "Correction of prior year error"Refer Note 6 'Schedule of income and expenses by service'The Statement of Comprehensive Income should be read in conjunction with the accompanying notes.

THE HOUSING AUTHORITY AND CONTROLLED ENTITIESSTATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 30 JUNE 2016

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THE HOUSING AUTHORITY AND CONTROLLED ENTITIESSTATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2016

Consolidated Parent

Note 2016 2015 2016 2015 2014$000 $000 $000 $000 $000

ASSETSCurrent AssetsCash and cash equivalents 21 366,971 271,991 333,065 224,650 207,291Inventories 22 373,535 382,080 361,034 365,604 267,179Loans and receivables 23 1,067,789 971,343 210,873 188,916 185,091Other current assets 25 16,936 35,096 34,055 41,901 59,318Non-current assets classified as held for sale 26 28,402 34,668 28,402 34,668 233Other financial assets 27 164,984 200,107 - - 19,350Total Current Assets 2,018,617 1,895,285 967,429 855,739 738,462

Non-current AssetsInventories 22 597,059 569,935 585,242 556,801 559,987Loans and receivables 23 3,458,188 3,282,398 4,290,716 4,115,590 3,675,593Deferred income tax asset 24 - - - - -Other financial assets 27 24 24 37,374 37,374 18,024Rental properties 28 12,500,948 13,280,271 12,500,948 13,280,271 12,883,168Community Housing properties 29 856,958 918,309 856,958 918,309 976,590Shared Equity properties 30 589,270 600,453 589,270 600,453 584,067Other properties 31 112,382 128,408 112,382 128,408 133,943Plant & equipment 32 5,641 8,184 4,149 5,840 5,284Buildings under construction 33 110,656 89,649 110,656 89,649 165,410Intangible assets 35 40,473 33,455 38,688 32,273 22,196Total non-current Assets 18,271,599 18,911,086 19,126,383 19,764,968 19,024,262TOTAL ASSETS 20,290,216 20,806,371 20,093,812 20,620,707 19,762,724

LIABILITIESCurrent LiabilitiesPayables 36 43,458 101,027 43,268 100,687 140,473Borrowings 37 79,132 337,403 79,132 337,403 321,150Provisions 38 57,715 58,447 57,715 58,447 55,990Other current liabilities 39 28,125 32,127 23,081 26,926 33,738Total Current Liabilities 208,430 529,004 203,196 523,463 551,351

Non-current LiabilitiesPayables 36 554 554 554 554 554Borrowings 37 5,335,251 4,963,465 5,335,251 4,963,465 4,542,996Provisions 38 12,275 12,264 12,275 12,264 13,976Total non-current Liabilities 5,348,080 4,976,283 5,348,080 4,976,283 4,557,526TOTAL LIABILITIES 5,556,510 5,505,287 5,551,276 5,499,746 5,108,877NET ASSETS 14,733,706 15,301,084 14,542,536 15,120,961 14,653,847

EQUITY

Contributed equity 40 2,349,485 2,239,906 2,335,305 2,239,906 2,194,201Reserves 41 9,243,318 10,018,748 9,242,590 10,018,015 9,651,548Retained earnings 42 3,139,161 3,040,286 2,964,641 2,863,040 2,808,098Total Equity attributable to the Consolidated Entity 14,731,964 15,298,940 14,542,536 15,120,961 14,653,847Non-controlling interest 50 1,742 2,144 - - -TOTAL EQUITY 14,733,706 15,301,084 14,542,536 15,120,961 14,653,847

* Refer Note 3 "Correction of prior year error"The Statement of Financial Position should be read in conjunction with the accompanying notes.

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THE HOUSING AUTHORITY AND CONTROLLED ENTITIESSTATEMENT OF CHANGES IN EQUITYFOR THE YEAR ENDED 30 JUNE 2016

Consolidated Parent

Note 2016 2015 2016 2015$000 $000 $000 $000

Balance of equity at start of period 15,298,940 14,832,230 15,120,961 14,581,851

CONTRIBUTED EQUITY 40Balance at start of period 2,239,906 2,194,201 2,239,906 2,194,201Transactions with owners in their capacity as owners:

Capital contribution 64,370 3,360 64,370 3,360Other contributions by owner 49,759 51,246 49,759 51,246Distributions to owners (4,550) (8,901) (18,730) (8,901)

Balance at end of period 2,349,485 2,239,906 2,335,305 2,239,906

RESERVES 41Balance at start of period 10,018,748 9,652,288 10,018,015 9,651,548Profit from asset revaluation (651,494) 457,205 (651,494) 457,205Impairment loss on rental properties (4,180) (9,405) (4,180) (9,405)Transfer to retained earnings (119,756) (81,340) (119,751) (81,333)Balance at end of period 9,243,318 10,018,748 9,242,590 10,018,015

RETAINED EARNINGS 42Balance at start of period 3,040,286 2,985,741 2,863,040 2,736,102Correction of prior period error 3 - - - 71,996

3,040,286 2,985,741 2,863,040 2,808,098Transfer from reserves 119,756 81,340 119,751 81,333Movement in equity attributable to Consolidated Entity - (3,897) - -Gain (Loss) for the period (20,881) (22,898) (18,150) (26,391)Balance at end of period 3,139,161 3,040,286 2,964,641 2,863,040

Balance of equity at end of period 14,731,964 15,298,940 14,542,536 15,120,961

The Statements of Changes in Equity should be read in conjunction with the accompanying notes.

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THE HOUSING AUTHORITY AND CONTROLLED ENTITIESSTATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 30 JUNE 2016

Consolidated Parent Note 2016 2015 2016 2015

$000 $000 $000 $000CASH FLOWS FROM OPERATING ACTIVITIESReceipts

Commonwealth grants and contributions 284,235 204,550 284,235 204,550Rental receipts 420,990 448,916 420,990 448,916Interest received 223,974 224,418 100,255 112,212Inventory receipts on sales 370,543 473,597 366,921 433,211Other receipts 23,736 27,178 106,885 99,174GST receipts on sales 841 1,082 841 1,082GST receipts from taxation authority 53,779 42,094 53,779 42,094Developers contributions - 9 - 9

PaymentsEmployee benefits (117,022) (107,158) (117,022) (107,158)Accommodation (12,223) (12,522) (12,223) (12,522)Supplies & services (91,109) (82,086) (61,788) (59,497)Finance costs (152,030) (159,915) (151,902) (160,082)Purchase and development of inventory (274,171) (398,732) (274,171) (380,501)GST payments on purchases (49,715) (71,663) (49,600) (70,707)GST payments to taxation authority - - - -Rental property payments (371,087) (373,202) (371,087) (373,202)Other payments (282,650) (210,470) (282,651) (189,755)

Net cash used in operating activities 43 28,091 6,096 13,462 (12,176)

CASH FLOWS FROM INVESTING ACTIVITIESReceipts

Proceeds from the sale of non-current physical assets 115,766 119,550 115,764 119,550Home loan repayments received 862,602 912,820 - 3Proceeds on obtaining control of associate - - - -Other investing receipts - - - 55,000

PaymentsPurchase of non-current physical assets 44 (152,502) (174,354) (151,133) (173,674)New home loans advanced (1,110,438) (1,359,365) - -Other investing payments (2) - (175,000) (495,000)

Net cash used in investing activities (284,574) (501,349) (210,369) (494,121)

CASH FLOWS FROM FINANCING ACTIVITIESReceipts

Proceeds from borrowings WA Treasury Corporation 436,928 512,500 436,928 512,500Payments

Repayment of borrowings from WA Treasury Corporation (320,090) (119,034) (316,928) (119,034) Commonwealth Government (15,525) (15,145) (15,525) (15,145)

Net cash used in financing activities 101,313 378,321 104,475 378,321

CASH FLOWS FROM STATE GOVERNMENTNet capital contribution 59,820 3,360 45,640 3,360Royalties for Regions Fund 49,759 51,246 49,759 51,246Proceeds from grants 105,448 90,730 105,448 90,730

Net cash provided by State Government 215,027 145,336 200,847 145,336Net increase in cash and cash equivalents 59,857 28,404 108,415 17,360Cash and cash equivalents at the beginning of the period 472,089 443,685 224,641 207,281

CASH AND CASH EQUIVALENTS AT THE END OF PERIOD 43 531,946 472,089 333,056 224,641

The Statement of Cash Flows should be read in conjunction with the accompanying notes.

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NOTES TO THE FINANCIAL STATEMENTS

1. Australian Accounting Standards

General

The Housing Authority (the "parent entity") and controlled entities financial statements for the year ended 30 June2016 have been prepared in accordance with Australian Accounting Standards. The term 'Australian AccountingStandards' includes Standards and Interpretations issued by the Australian Accounting Standard Board (AASB).

The Housing Authority has adopted any applicable, new and revised Australian Accounting Standards from theiroperative dates.

Early adoption of standards

The Consolidated Entity cannot early adopt an Australian Accounting Standard unless specifically permitted by TI1101 ‘Application of Australian Accounting Standards and Other Pronouncements’. No Australian Accountingthat have been issued or amended (but not operative) have been early adopted by the Housing Authorityfor the annual reporting period ended 30 June 2015.

2. Summary of significant accounting policies

(a) General statement

The Housing Authority is a not-for-profit entity that prepares general purpose financial statements inaccordance with the Australian Accounting Standards, the Framework, Statements of Accounting Conceptsand other authoritative pronouncements of the AASB as applied by the Treasurer’s instructions. Several ofthese are modified by the Treasurer's Instructions to vary application, disclosure, format and wording.

The Financial Management Act 2006 and the Treasurer’s instructions impose legislative provisions that governthe preparation of financial statements and take precedence over Australian Accounting Standards, theFramework, Statements of Accounting Concepts and other authoritative pronouncements of the AASB.

Where modification is required and has had a material or significant financial effect upon the reported results,details of that modification and the resulting financial effect are disclosed in the notes to the financialstatements.

(b) Basis of preparation

The financial statements have been prepared on the accrual basis of accounting using the historical costconvention, modified by the revaluation of land and buildings, and certain financial instruments which havebeen measured at fair value. The accounting policies adopted in the preparation of the financial statementshave been consistently applied throughout all periods presented unless otherwise stated. The financialstatements are presented in Australian dollars and all values are rounded to the nearest thousand dollars($'000) or, in certain cases, to the nearest dollar.

(c) Basis of consolidation

The reporting entity comprises the Authority and controlled entities included in note 2(d).

The consolidated financial statements have been prepared by combining the financial statements of all entitiesthat comprise the Consolidated Entity, being The Housing Authority (the "parent entity") and its controlledentities, in accordance with AASB 127 “Consolidated and Separate Financial Statements” and modified byTreasurer's Instruction 1105. Consistent accounting policies have been applied and all inter-entity balances,transactions and unrealised profits arising within the Consolidated Entity are eliminated in full.

Subsidiaries are consolidated from the date on which control is transferred to the group and cease to beconsolidated from the date on which control is transferred out of the group.

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2. Summary of significant accounting policies (continued)

(d) Legal form of controlled entities

(i) The Keystart Housing Scheme includes a trust and company structure set up to enable funds to be raisedthrough the Housing Authority at competitive rates and on lent to Keystart borrowers for the purchasing ofowner occupied homes.The structure comprises of:- The Keystart Housing Scheme Trust established by a Deed of Trust in the State of Western Australia,dated 5 April 1989 with Keystart Loans Ltd (a special purpose nominal capital company) as trustee andthe Authority is the sole beneficiary of the trust. Keystart Scheme Management Pty Ltd has beenappointed as Manager.- Keystart Support Trust - A special purpose trust used to provide financial support to the Scheme ifrequired. The Housing Authority is the sole beneficiary of this trust.- Keystart Bonds Ltd - A special purpose nominal capital company being the Issuer with KPMG FinancialAdvisory Services (Australia) Pty Ltd (replacing Oakvale Capital Ltd) as treasury advisor.- Keystart Support Pty Ltd - A special purpose nominal capital company as trustee of the support trust.The manager is Keystart Scheme Management Pty Ltd.- Keystart Support (Subsidiary) Pty Ltd - A special purpose nominal capital company created to assistKeystart Support Pty Ltd in its obligations.

Keystart Scheme Management Pty Ltd - A special purpose nominal capital company created to providemanagement services to the Keystart Trustee and group of companies.All of these Keystart trusts and companies have been established in the State of Western Australia. Thefinancial transactions for these entities have no effect on the net profit of the Housing Authority. TheHousing Authority provides a support arrangement to the structure through the Support Trust.

(ii) Homeswest Loan Scheme Trust - A special purpose Trust established by a Trust Deed in the State ofWestern Australia dated 19 September 1995 to operate as an agent for the Housing Authority's home loanschemes. In its capacity as agent, the Trust receives advances for the purpose of providing mortgages toWestern Australians. The Housing Authority is the sole beneficiary of the Trust, and Keystart Loans Ltd isthe trustee of the Trust.

(iii) Goldmaster Enterprises Pty Ltd - A property development company to assist the Housing Authorityachieve its objectives. The Authority has equity interest of 87.18% and effective control via representation on the Board of this company, effective 27 August, 2014

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(e) Ownership interest

The Housing Authority is the instigator of the Keystart Housing Scheme and has effective control over thewhole structure either directly or indirectly through various agreements which constitute the structure and towhich it is a party. The Board of Directors of the Keystart group of companies comprise one Director from theHousing Authority and seven directors from the private sector.

The Housing Authority is a shareholder in Goldmaster Enterprises Pty Ltd and comprises two directors fromthe Government of Western Australia and one from the private sector.

The ownership interest held by the Housing Authority in the companies is as follows:Keystart Bonds Ltd : 100% of the total shareholdingKeystart Loans Ltd : 100% of the total shareholdingKeystart Support Pty Ltd : 100% of the total shareholdingKeystart Support (Subsidiary) Pty Ltd: 100% of the total shareholdingKeystart Scheme Management Pty Ltd: 100% owned by Keystart Loans LtdGoldmaster Enterprises Pty Ltd: 87.18% owned by the Housing Authority.

Controlled entities and contribution to retained earnings.Contribution to Investment

Percentage Consolidated Entity sharesName owned result ($000) at cost ($000)

2016 2015 2016 2015 2016 2015Goldmaster Enterprises Pty Ltd 87.18 87.18 37,350 37,350

Profit/(loss) (3,134) (570)Keystart Bonds Ltd 100 100 Nil Nil - -Keystart Loans Ltd 100 100 Nil Nil - -Keystart Support Pty Ltd 100 100 Nil Nil - -Keystart Support (Subsidiary) Pty Ltd 100 100 Nil Nil - -Keystart Housing Scheme Trust

(Loss)/Profits Nil NilTransfer from Reserve 5 7

Keystart Support Trust Nil NilHomeswest Loan Scheme Trust Nil Nil

The Housing Authority is obligated to the Scheme in that it has given various representations and obligationsto investors or other creditors to the extent that it will meet cash shortfalls and losses from the Scheme.Funding for Keystart is through the Housing Authority with no borrowings outstanding through Keystart BondsLtd. The Housing Authority's obligations to the various participants are contained in a Support Agreement ofthe Scheme. No subsidies were required from the Housing Authority for the 2015-16 financial year.

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(f) Property, plant and equipment

Capitalisation/expensing of assets

Items of property, plant and equipment costing $5,000 or more are recognised as assets and the cost ofutilising assets is expensed (depreciated) over their useful lives. Items of property, plant and equipmentcosting less than $5,000 are immediately expensed direct to the Statement of Comprehensive Income (otherthan where they form part of a group of similar items which are significant in total).

Initial recognition and measurement

Property, plant and equipment are initially recognised at cost.

For items of property, plant and equipment acquired at no cost or for nominal cost, the cost is the fair value atthe date of acquisition.

Subsequent measurement

Subsequent to initial recognition as an asset, the revaluation model is used for the measurement of land,buildings and historical cost for all other property, plant and equipment. Land and buildings are carried at fairvalue less accumulated depreciation (buildings only) and accumulated impairment losses. All other items ofproperty, plant and equipment are stated at historical cost less accumulated depreciation and accumulatedimpairment losses.Where market-based evidence is available, the fair value of land and buildings is determined on the basis ofcurrent market values determined by reference to recent market transactions. When buildings are revalued byreference to recent market transactions, accumulated depreciation is eliminated against the gross carryingamount of the asset and the net amount restated to the revalued amount.

Additions to non-current physical assets are measured at cost and are considered to represent fair value.less than one year old are measured at construction cost, which is considered to represent fair value, plus land at fair value.

Land and buildings are independently valued annually by the Western Australian Land Information Authority(Valuation Services) and recognised annually to ensure that the carrying amount does not differ materially fromthe asset's fair value at the end of the reporting period.

When buildings are revalued, the accumulated depreciation is eliminated against the gross carrying amountof the asset and the net amount restated to the revalued amount.

Rental properties represent the properties acquired or constructed for public housing. They also include State owned properties leased to State Government departments for Government employees housing.

Community Housing properties include properties acquired under the Commonwealth and State programs ofCrisis Accommodation and Community Housing and Joint Charity Properties.

Shared Equity properties represent the equity in dwellings constructed or purchased under the Shared EquityScheme. Under the scheme the Housing Authority and the purchaser are co-owners of the propertiesconstructed or purchased as Tenants in Common with the purchaser having total occupation of the dwelling.

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Other Properties includes offices and commercial properties which are owned or are leased from various organisations and individuals.

Derecognition

Upon disposal or derecognition of an item of property, plant and equipment and infrastructure, any revaluation surplus relating to that asset is transferred to retained earnings.

Asset revaluation reserve

The asset revaluation reserve is used to record increments and decrements on the revaluation of non-currentassets on a class of assets basis.

Depreciation and amortisation

All non-current assets having a limited useful life are systematically depreciated over their estimated usefullives in a manner that reflects the consumption of their future economic benefits. Land is not depreciated. Depreciation for the Consolidated Entity's assets is calculated on a straight line basis, using rates which arereviewed annually.

Major depreciation rates are: 2016 2015

Rental properties 2% 2%Community Housing properties 2% 2%Shared Equity properties 3% 3%Other properties

- Commercial properties 2% 2%- Office properties 5% 5%

Plant & equipment 10% - 50% 10% - 50%Intangible assets 20% - 50% 20% - 50%

Works of art controlled by the Authority are classified as property, plant and equipment. These are anticipatedto have indefinite useful lives. Their service potential has not, in any material sense, been consumed duringthe reporting period and consequently no depreciation has been recognised.

Land is not depreciated.

(g) Buildings under construction

Buildings under construction are recorded at cost which includes all costs directly related to specificconstructions plus capitalised administration charges incurred in connection with these activities.

(h) Inventories

Current Inventories are measured at the lower of cost or net realisable value. Costs includes the cost ofacquisition/development and other capitalised costs. After development is completed, other holding chargesare expensed as incurred.

Non-current inventories consists of both broad hectare land and lots under development, excluding lotsavailable for external sale (current inventory), which are valued at acquisition cost plus capitalised costs. Developed lots on which dwellings are subsequently constructed by the Housing Authority are transferred tothe stock of Rental properties at fair value as determined by the Valuer General at the date of practicalcompletion. The difference between this valuation and the cost of the land transferred to Rental propertiesrepresents a revaluation increment which is brought to account as an increase in the asset revaluation reserve.

Work in progress for house and land packages are classified as non - current whilst they are being constructed and reclassified as current when they are available for sale.

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(h) Inventories (continued)

Joint Operations

Joint operations land represents the Housing Authority's equity in Joint operations land development projects.Development costs represent the agreed proportion of development costs incurred plus capitalised costs.Land owned by the Housing Authority is shown at cost plus capitalised costs.Details of the Housing Authority's interests are set out in note 22.

(i) Loans and receivables

Receivables are recognised at original invoice amount less an allowance for any uncollectible amounts (i.e.impairment). The collectability of receivables is reviewed on an ongoing basis and any receivables identified asuncollectable are written-off against the allowance account. The allowance for uncollectable amounts is raisedwhen there is objective evidence that the Consolidated Entity will not be able to collect the debts. The carryingamount is equivalent to fair value. These debts are due for settlement within 30 days with the exception of thefollowing receivable categories.

Receivables land - are carried at nominal amounts. Sales and receivables are recognised once the debtorhas obtained financing and the sale has become unconditional. Land sales are on a 30 day term once thesale has become unconditional.Receivables rent from tenants - are carried at nominal amounts due less any provision for impairment. Rent receivable is due weekly in advance.Receivables rental bonds - are carried at nominal amounts due less any provision for impairment. Rentalbond assistance receivables represent advances made to qualifying persons for the purpose of rentingproperties external to the Housing Authority. Each advance is repayable in minimum fortnightly paymentsof $15 for loans granted prior to 1 July 2009 and $25 per fortnight for loans granted from 1 July 2009 withremaining balance being collectable on vacation of property unless an arrangement is entered into to repayover time.

Loans

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are notquoted in an active market. The collateral held for these loans is by a registered mortgage held over theproperty.

Recognition and derecognitionFinancial assets that are carried at fair value through profit or loss are initially recognised at fair value andtransaction costs are expensed in the Statement of Comprehensive Income. Loans and receivables areinitially recognised at fair value. Transaction costs, including loan origination expenses, are included in themeasurement of all loans and advances. The loan origination fees are being amortised in equal instalmentsover the average life of the loans. Regular way purchases and sales of financial assets are recognised ontrade date, which is the date on which the Consolidated Entity commits to purchase or sell the assets.

Financial assets are derecognised when the right to receive cash flows from the financial assets have expiredor have been transferred and the Consolidated Entity has transferred substantially all the risks and rewards ofownership.

Subsequent measurementLoans and receivables are carried at amortised cost using the effective interest method.

Financial assets at fair value through profit and loss are subsequently carried at fair value. Gains or lossesarising from changes in fair value of the 'financial assets at fair value through profit or loss' category arepresented in the Statement of Comprehensive Income in the period in which they arise.

Fair valueThe fair value of the financial assets traded in active markets is based on quoted market prices at theStatement of Financial Position date. If the market for a financial asset is not active (and for unlistedsecurities), the Consolidated Entity establishes fair value by using valuation techniques. These include the useof recent arm’s length transactions, reference to other instruments that are substantially the same, discountedcash flow analysis, and option pricing models making maximum use of market inputs and relying as little aspossible on entity-specific inputs.

The Housing Authority also recognises the expenses that it incurs and its share of the income that it earns fromthe sale of goods and services by the joint operations.

The Housing Authority has interests in joint arrangements that are joint operations. A joint arrangement is acontractual arrangement whereby two or more parties undertake an economic activity that is subject to jointcontrol. A joint operation is a joint arrangement whereby the parties have rights to the assets, and obligations forthe liabilities, relating to the arrangement. The Housing Authority recognises its interests in the joint operationsby recognising the assets it controls and the liabilities that it incurs in respect of the joint arrangements.

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(i) Loans and receivables (continued)

Impairment of loansThe Consolidated Entity assesses at the end of the reporting period whether there is objective evidence that afinancial asset or group of financial assets is impaired. In case of loans and receivables, an allowance forimpairment is made when there is objective evidence that the loan will not be collectable. When a receivable isimpaired, the Consolidated Entity reduces the carrying amount to its recoverable amount, being the estimatedfuture cash flow discounted at the original effective interest rate of the instrument and continues unwinding thediscount as interest income.

The carrying amount of the asset is reduced through the use of an allowance account and the amount of theloss is recognised in the Statement of Comprehensive Income within 'Doubtful Debts expense’. When a loan oradvance is uncollectable, it is written off against the allowance account for loans and advances. Subsequentrecoveries of amounts previously written off are credited against 'Doubtful Debts expense' in the Statement ofComprehensive Income.

(j) Derivative financial instruments and hedging

There were no derivative financial instruments related to the Consolidated Entity in the current financial year.

(k) Intangible assets

Computing software and development

Capitalisation/expensing of assets

Acquisition of intangible assets costing less than $5,000 are expensed in the year of acquisition. Wheresoftware is an integral part of the related hardware, it is treated as property, plant and equipment. Where thesoftware is not an integral part of the related hardware, it is treated as an intangible asset.

Intangible assets are initially recognised at cost. For assets acquired at no cost or for nominal cost, the costis their fair value at the date of acquisition.

Costs associated with the acquisition and development of computer systems and software are amortised fromthe commencement of live production of the system. Development costs are deferred to future periods to theextent that future economic benefits, are expected beyond any reasonable doubt, to be equal to or exceedthose costs. Deferred costs are amortised, from the commencement of live production of the system, on astraight line basis over the period of their expected benefit.

Amortisation for intangible assets with finite useful lives is calculated for the period of the expected benefit(estimated useful life which is reviewed annually) on the straight line basis. All intangible assets controlled bythe consolidated entity have a finite useful life and zero residual value. The expected useful lives for each classof intangible asset are:

2016 2015Computing software 20% - 50% 20% - 50%Computing development 20% 20%

(l) Other financial assets

(a) Deposits at call

The fair values of the Bank bills are determined using generally accepted pricing models based on discountedcash flow analysis using prices from observable current market transactions.

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2. Summary of significant accounting policies (continued)(l) Other financial assets (continued)

(c) Parent Financial StatementsThe investments in subsidiaries and associate are accounted for in the parent financial statements at cost. TheHousing Authority recognises dividends from the subsidiaries and associate when its right to receive thedividend is established.

Investments in associate are tested for any indication of impairment at the end of the reporting period. Wherethere is an indication of impairment, the recoverable amount is estimated. Where the recoverable amount isless than the carrying amount, the investment is considered impaired and is written down to the recoverableamount and an impairment loss is recognised.

(d) Consolidated Financial Statements

(i) The investment in associates is accounted for in the consolidated view of the financial statements using the "Equity" method of accounting after initially being recognised at cost. Any goodwill is included in the carrying amount of the investment.

The Housing Authority's share of its associate's post-acquisition profits or losses is recognised in profit orloss, and its share of post-acquisition other comprehensive income is recognised in other comprehensiveincome. The cumulative post- acquisition movements are adjusted against the carrying amount of theinvestment. Dividends receivable from the associate are recognised as a reduction in the carrying amount of the investment.

When the Housing Authority's share of losses in the associate equals or exceeds its interest in the associate,including any other unsecured long-term receivables, the Housing Authority does not recognise further losses,unless it has incurred obligations or made payments on behalf of the associate.

Unrealised gains on transactions between the Housing Authority and its associates are eliminated to theextent of the Housing Authority's interest in the associate. Unrealised losses are also eliminated unless thetransaction provides evidence of an impairment of the asset transferred. Accounting policies of the associatehave been changed where necessary to ensure consistency with the policies adopted by the ConsolidatedEntity.

(ii) The investment in subsidiary is accounted for in the consolidated financial statements in accordance withAASB 127. In preparing consolidated financial statements, the financial statements of the parent and the subsidiaries have been combined line by line by adding together like items of assets, liabilities, equity, income and expenses. In order that the consolidated financial statements present financial information about the Consolidated Entity as that of a single economic entity:

(a) the carrying amount of the parent’s investment in each subsidiary and the parent’s portion of equity ofeach subsidiary are eliminated.

(b) minority interests in the profit or loss of consolidated subsidiaries for the reporting period are identified; and

(c) minority interests in the net assets of consolidated subsidiaries are identified separately from the parentshareholders’ equity in them. Minority interests in the net assets consist of:

(i) the amount of those minority interests at the date of the original combination calculated in accordance with AASB 3 - Business Combinations and(ii) the minority’s share of changes in equity since the date of the combination.

(m) Non-current assets held for sale

Non-current assets held for sale are recognised at the lower of carrying amount or fair value less costs to selland are disclosed separately in the Statement of Financial Position. Assets classified as held for sale are notdepreciated or amortised.

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(n) Impairment of assets

Property, plant and equipment and intangible assets are tested for any indication of impairment at the end ofeach reporting period. Where there is an indication of impairment, the recoverable amount is estimated. Wherethe recoverable amount is less than the carrying amount, the asset is considered impaired and is written downto the recoverable amount and an impairment loss is recognised. Where an asset measured at cost is writtendown to recoverable amount, an impairment loss is recognised in profit or loss. Where a previously revaluedasset is written down to recoverable amount, the loss is recognised as a revaluation decrement in othercomprehensive income. As the Consolidated Entity is a not-for-profit entity, unless a specialised asset hasbeen identified as a surplus asset, the recoverable amount is the higher of an asset’s fair value less costs tosell and depreciated replacement cost.

The risk of impairment is generally limited to circumstances where an asset’s depreciation is materiallyunderstated, where the replacement cost is falling or where there is a significant change in useful life. Eachrelevant class of assets is reviewed annually to verify that the accumulated depreciation/amortisation reflectsthe level of consumption or expiration of the asset's future economic benefits and to evaluate any impairmentrisk from falling replacement costs.

Intangible assets with an indefinite useful life and intangible assets not yet available for use are tested for impairment at the end of each reporting period irrespective of whether there is any indication of impairment

The recoverable amount of assets identified as surplus assets is the higher of fair value less costs to sell andthe present value of future cash flows expected to be derived from the asset. Surplus assets carried at fairvalue have no risk of material impairment where fair value is determined by reference to market-basedevidence. Where fair value is determined by reference to depreciated replacement cost, surplus assets are atrisk of impairment and the recoverable amount is measured. Surplus assets at cost are tested for indicationsof impairment at the end of each reporting period.

(o) Payables

Payables are recognised when the Consolidated Entity becomes obliged to make future payments as a resultof a purchase of assets or services at the amounts payable. The carrying amount is equivalent to fair value, asthey are generally settled within 30 days with the exception of the following classes of payables.

Payables land deposits - are recognised on receipt of cash.When the sale becomes unconditional the Housing Authority retains the deposit as part of the sale process. Payables construction retention monies - are repaid upon 100% completion of the contract with 2.5%withheld to satisfactory completion of maintenance agreement.Payables rental bonds - tenant bonds are payable on the tenant vacating the premises. The ultimateamount to be paid is dependent upon the condition of the property upon the tenant vacating, but is not more than the carrying amount of the liability. Payables water consumption - liabilities are recognised for amounts to be paid in the future for water usage.Liabilities are settled on 90 day terms.

(p) Borrowings

All borrowings are initially recognised at fair value, being the net proceeds received. Subsequent measurementis at amortised cost using the effective interest rate method. Interest is charged as an expense as it accrues.

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(q) Income

Revenue recognition

Revenue is recognised and measured at the fair value of consideration received or receivable. Revenue isrecognised for the major business activities as follows:

(i) Rental property revenueThe Housing Authority charges rents in accordance with section 30 of the Housing Act. The basis for theamount of rent to be charged is determined from market rent information received from the Valuer Generaland due consideration to regional rental markets. Rental property revenue represents the net rentalrevenue which consists of market rents less vacancies, concessions and rental subsidies grantedthroughout the year. Rental income is recognised on a straight-line basis over the lease term.

(ii) SalesRevenue from land sales is recognised when the contract for sale becomes unconditional.

(iii) Grants, donations, gifts and other non-reciprocal contributions.Revenue is recognised at fair value when the Consolidated Entity obtains control over the assetscomprising the contributions, usually when cash is received.Other non-reciprocal contributions that are not contributions by owners are recognised at their fair value. Contributions of services are only recognised when a fair value can be reliably determined and the serviceswould be purchased if not donated.

Royalties for Regions funds are recognised as revenue at fair value in the period in which the HousingAuthority obtains control over the funds. The Housing Authority obtains control of the funds at the time thefunds are deposited into the Housing Authority's bank account.

(iv) InterestInterest income is recognised as interest accrues using the effective interest rate method.

Gains

Realised and unrealised gains are usually recognised on a net basis. These include gains arising on thedisposal of non-current assets.

(r) Insurance

In accordance with Treasurer's Instruction 812 the Housing Authority maintains an appropriate level ofinsurance cover for insurable risks.

Effective from 1 July 2004 the Housing Authority has adopted a policy of not insuring its residential propertyassets as it is considered uneconomical. As part of the Housing Authority's ongoing risk managementprocess a comprehensive analysis of the Housing Authority's risk exposure to its residential property assetswas completed during 2012. The Housing Authority's residential property assets continue to remain notinsured as it is considered uneconomical. However, the Authority does insure:. residential properties related to employment-related accommodation (non-Government Regional Officer's Housing). key worker villages. residential property constructed by the Authority under the Affordable Housing Strategy for sale to private individuals. residential properties (complexes) with a replacement value of $10 million or greaterThe Housing Authority's other insurance programs continue to be acombination of insurance policies provided by commercial insurance providers and the Western AustralianGovernment's RiskCover Fund.As per Treasurer’s Instruction 825, Insurance is complemented by a comprehensive approach to RiskManagement and prudent management policies and practices.

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(s) Provisions

Provisions are liabilities of uncertain timing or amount. The Housing Authority only recognises a provisionwhere there is a present legal, equitable or constructive obligation as a result of a past event and when theoutflow of resources embodying economic benefits is probable and a reliable estimate can be made of theamount of the obligation. Provisions are reviewed at the end of each reporting period and adjusted to reflect thecurrent best estimate.

(i) Employee benefits

All annual leave and long service leave provisions are in respect of employees' services up to the end of thereporting period.

Annual leave

Annual leave is not expected to be settled wholly within 12 months after the end of reporting period and istherefore considered to be other long term employee benefits’. The annual leave liability is recognised andmeasured at the present value of amounts expected to be paid when the liabilities are settled using theremuneration rate expected to apply at the time of settlement.

When assessing expected future payments consideration is given to expected future wage and salarylevels including non-salary components such as employer superannuation contributions, as well as theexperience of employee departures and periods of service. The expected future payments are discountedusing market yields at the end of the reporting period on national government bonds with terms to maturitythat match, as closely as possible, the estimated future cash outflows

The provision for annual leave is classified as a current liability as the Housing Authority does not have anunconditional right to defer settlement of the liability for at least 12 months after the reporting period.

Long service leave

Long service leave is not expected to be settled wholly within 12 months after the end of the reportingperiod is recognised and measured at the present value of amounts expected to be paid when theliabilities are settled using the remuneration rate expected to apply at the time of settlement.

When assessing expected future payments consideration is given to expected future wage and salarylevels including non-salary components such as employer superannuation contributions, as well as theexperience of employee departures and periods of service. The expected future payments are discountedusing market yields at the end of the reporting period on national government bonds with terms to maturitythat match, as closely as possible, the estimated future cash outflows.

Unconditional long service leave provisions are classified as current liabilities as the Housing Authoritydoes not have an unconditional right to defer settlement of the liability for at least 12 months after the endof reporting period. Pre-conditional and Conditional long service leave provisions are classified asnon-current liabilities because the Housing Authority has an unconditional right to defer the settlement ofthe liabilities until the employee has completed the requisite years of service.

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(s) Provisions (continued)

Superannuation

The Government Employees Superannuation Board (GESB) and other fund providers administer publicsector superannuation arrangements in Western Australia in accordance with legislative requirements. Eligibility criteria for membership in particular schemes for public sector employees vary according tocommencement and implementation dates.

Eligible employees contribute to the Pension Scheme, a defined benefit pension scheme closed to newmembers since 1987, or the Gold State Superannuation Scheme (GSS), a defined benefit lump sumscheme closed to new members since 1995.

Employees commencing employment prior to 16 April 2007 who were not members of either the Pension Scheme or the GSS became non-contributory members of the West State Superannuation Scheme(WSS). Employees commencing employment on or after 16 April 2007 became members of the GESBSuper Scheme (GESBS). From 30 March 2012, existing members of the WSS or GESBS and newemployees have been able to choose their preferred superannuation fund provider. The Authority makescontributions to GESB or other fund providers on behalf of employees in compliance with theCommonwealth Government’s Superannuation Guarantee (Administration) Act 1992. Contributions tothese accumulation schemes extinguish the Authority’s liability for superannuation charges in respect ofemployees who are not members of the Pension Scheme or GSS.

The Pension Scheme and the pre-transfer benefit for employees who transferred to the GSS are definedbenefit schemes. These benefits are wholly unfunded and the liabilities for future payments are provided atthe end of the reporting period. The liabilities under these schemes have been calculated separately foreach scheme annually by external actuaries using the projected unit credit method.

The expected future payments are discounted to present value using market yields at the end of thereporting period on national government bonds with terms to maturity that match, as closely as possible,the estimated future cash outflows.

The GSS, the WSS and the GESBS Scheme, where the current service superannuation charge is paid bythe Authority to the GESB, are defined contribution schemes. The liabilities for current servicesuperannuation charges under the GSS Scheme, the WSS Scheme, and the GESBS Scheme areextinguished by the concurrent payment of employer contributions to the GESB.

The GSS is a defined benefit scheme for the purposes of employees and whole-of-government reporting. However, from an agency perspective, apart from the transfer benefits, it is a defined contribution plan under AASB 119.

(ii) Other

Employment on-costs

Employment on-costs, including workers’ compensation insurance and payroll tax, are not employeebenefits and are recognised separately as liabilities and expenses when the employment to which theyrelate has occurred. Employment on-costs are included as part of the Authority’s ‘Other expenses' and therelated liability is included in Employment on-costs provision.

Development levies

Is a provision calculated on lots sold and community projects representing fencing and landscapingincentives for first home buyers to purchase Housing Authority land. The provision represents theestimated liability at balance sheet date for future claims by the purchasers against the Housing Authority.

(t) Accrued salaries

Accrued salaries represent the amount due to staff but unpaid at the end of the financial year. Accruedsalaries are settled within a fortnight of the financial year end. The Authority considers the carrying amount ofaccrued salaries to be equivalent to its fair value.

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(u) Borrowing costs

Borrowing costs are expensed when incurred and represents the total finance costs in the Statement ofComprehensive Income.

(v) Superannuation expense

Superannuation expense is recognised in the Statement of Comprehensive Income in profit or loss for defined contribution plans, including the concurrent payment of employer contributions to the GSS scheme, as andwhen the contributions fall due.

For defined benefit plans (the Pension Scheme and the pre-transfer component of the GSS), changes in thedefined benefit obligation are recognised in the Statement of Comprehensive Income either in profit or loss, or other comprehensive income as follows:(i) profit or loss:

current service cost;past service cost; andinterest cost.

(i) other comprehensive income:actuarial gains and losses.

(w) Leases

The Housing Authority has entered into a number of operating lease arrangements for buildings and vehicleswhere the lessors effectively retain the majority of the risks and benefits incidental to ownership of the itemsheld under the operating leases. Equal instalments of the lease payments are charged to the Statement ofComprehensive Income over the lease term, as this is representative of the pattern of benefits to be derivedfrom the leased property.

(x) Rental expenses

Expenses incurred relating to the Housing Authority's owned or leased rental properties are accounted for inthe Rental expenses line of the Statement of Comprehensive Income. These expenses which directly relate tothe Rental Program include maintenance, rates, insurance expenses and renovations and improvements.

(y) Comparative figures

Comparative figures are, where appropriate, reclassified to be comparable with the figures presented in the current financial year.

(aa) Segment Information

The Consolidated Entity's operations are divided into four specific services. These are:Rental Public Housing - providing access to affordable rental accommodation for low to moderate income Western Australians;Government Regional Officers Housing - providing access to rental accommodation for government employees inregional areas;Home Loans - providing realistic home ownership opportunities for low to moderate income Western Australiansprovided by the Housing Authority and through its Keystart Housing Scheme;Land and Housing Supply - affordable housing sales and provision of low to medium priced subdivided land for sale.

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(ab) Financial Instruments

In addition to cash, the Consolidated Entity has three categories of financial instruments:

Loans and receivablesFinancial liabilitiesFinancial assets at fair value through profit and loss

These have been disaggregated into the following classes:

Financial AssetsCash and cash equivalentsLoans and receivablesShort term deposits

Financial LiabilitiesPayablesWATC borrowingsCommonwealth borrowings

Initial recognition and measurement of financial instruments is at fair value which normally equates to thetransaction cost or the face value. Subsequent measurement is at amortised cost using the effective interestrate method. The Consolidated Entity does not enter into financial instruments for speculative purposes.

The fair value of short-term receivables and payables is the transaction cost or the face value because there isno interest rate applicable and subsequent measurement is not required as the effect of discounting is notmaterial.

Keystart

The entity's activities expose it to a variety of financial risks; market risk (including interest rate risk), creditrisk and liquidity risk. The overall risk management program focuses on the unpredictability of financialmarkets and seeks to minimise potential adverse effects on the financial performance of the entity. The entityuses different methods to measure different types of risk to which it is exposed. These methods includesensitivity analysis (specifically VaR - Value at Risk model) in the case of interest rate risk and ageinganalysis for credit risk and beta analysis in respect of investment portfolios to determine market risk.

Risk management is carried out by the Funding and Lending Committee under policies approved by the Keystart Board ofDirectors. The Funding and Lending Committee identifies, evaluates and hedges financial risks in close co-operation withthe entity’s operating units. The Keystart Board provides written principles for overall risk management, as wellas policies covering specific areas, such as interest rate risk, credit risk, use of derivative financialinstruments and non-dreivative financial instruments, and investment of liquidity.

Market Risk

Keystart(i) Interest rate risk

Borrowings issued at short term rates expose the entity to interest rate risk if changes to rates are not passedon to customers. Borrowings issued at fixed rates expose the entity to fair value interest rate risk. The entity’spolicy is to hedge (i.e. fix) a portion of its borrowings portfolio within the following hedge ratio limits of totalliabilities:

HEDGE RATIO LIMITSBM Min Max BM = Benchmark

0-1 Year 55% 0% 70%1-2 Years 20% 0% 30%2-3 Years 10% 0% 20%3+ Years 0% 0% 15%

The ratio of hedging applied is calculated with reference to the borrowings only, and does not factor the loanassets held by the entity.

During the financial year ending 30 June 2016 and the prior financial year, there were no hedges used by theTrust. Borrowings were denominated in Australian Dollars.

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(ab) Financial Instruments (continued)(ii) Summarised sensitivity analysis

The Consolidated Entity uses VaR Analysis to measure its sensitivity to movements in interest rates. VaRmodels are designed to measure market risk in a normal market environment. The VaR risk measureestimates the potential loss in profit over a given holding period for a specific confidence level. The VaRmethodology is a statistically defined, probability - based approach that takes into account market volatilitiesas well as risk diversification by recognising offsetting positions and correlations between products. The mainrisk arises where the Consolidated Entity cannot pass on changes in borrowing interest rates to its loanreceivables. The VaR for the Consolidated Entity is traditionally low because the Consolidated Entity is ableto pass on changes in its borrowing interest rates.Based on a 99% confidence level and a 250 day observation period, the VaR for Keystart was favourable at0.26% of its capital at 30 June 2016 (2015: 0.38%)

The limitation of the VaR model is that historical data may not provide the best estimates of the risk factorchanges in the future and may fail to capture the risk of possible extreme adverse market movements whichhave not occurred in past calculations.

While VaR captures the Consolidated Entity's exposure under normal market conditions, sensitivity and earningsat risk analysis is also performed.

2016Historical VaR (99%, 20 day) By risk type Average Minimum Maximum Year End

$'000 $'000 $'000 $'000

Total VaR Exposure 784 386 1,599 8002015Historical VaR (99%, 20 day) By risk type Average Minimum Maximum Year End

$'000 $'000 $'000 $'000

Total VaR Exposure 460 262 1,082 1,082

Credit Risk ExposureThe Consolidated Entity's maximum exposures to credit risk at reporting date in relation to each class ofrecognised financial asset is the carrying amount of those assets as indicated in the Statement of FinancialPosition. The Consolidated Entity's credit risk is spread over a significant number of parties and isconcentrated only to the extent of the WA residential market. The Consolidated Entity is therefore notmaterially exposed to any particular individual party or group of parties.

The Consolidated Entity's maximum credit risk exposure in relation to these is as follows:

The Consolidated Entity minimises concentrations of credit risk in relation to loans and advances byundertaking transactions with a number of borrowers, within specified maximum limits based upon theassessment of each borrower's ability to service a mortgage. The Consolidated Entity concentrates 100% ofits lending to purchase of residential real estate within Western Australia. Security is provided to theConsolidated Entity through a mortgage over the property.

The maximum exposure to credit risk at reporting date is the higher of the carrying value and fair value of eachclass of receivables.

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2. Summary of significant accounting policies (continued)(ab) Financial Instruments (continued)

KeystartCredit risk arises from transactions that give rise to actual, contingent or potential claims against any borroweror counterparty.

Credit risk is managed on a group basis through having prudential lending policies to mitigate borrower risk.This includes having maximum Debt Servicing Ratios and strict income verification procedures. In addition tothese credit policies, Keystart maintains adequate provisions for bad and doubtful debts and capital adequacyratios to manage the effects of any losses. Counterparty credit risk arises from cash and cash equivalents,loans and receivables and deposits with banks and financial institutions including outstanding receivables andcommitted transactions. For banks and financial institutions, only independently rated parties with a minimumrating of ‘A’ are accepted. Individual risk limits are set based on internal or external ratings in accordance withlimits set by the Board. Counterparties must have Standard and Poor’s long term rating of at least “A+” for anyderivative transaction executed and “A” (or better) for authorised investments.

Housing AuthorityIn relation to other receivables (including rental and bond debtors), the Housing Authority has a minimal creditrisk due to the receivables debt being spread across a number of debtors exceeding 45,000. The collectabilityof rental receivables is reviewed on an ongoing basis in accordance with the Housing Authority's policy andprocedure manuals. These policy and procedure manuals are reviewed by Management on a regular basis.

Liquidity RiskThe Consolidated Entity is exposed to liquidity risk in respect of its payable, accrued employee expenses andgovernment borrowings, in that the Consolidated Entity needs to be able to pay these amounts when they falldue. The Consolidated Entity has implemented and maintains robust cash management practices, includingday-to-day monitoring and regular liquidity reporting to the Accountable Officer. These practices ensure cashresources are adequate to meet future commitments.

KeystartPrudent liquidity risk management implies maintaining sufficient cash and marketable securities, theavailability of funding through an adequate amount of committed credit facilities and the ability to close outmarket positions. Due to the dynamic nature of the underlying businesses, the Treasury Committee aims atmaintaining flexibility in funding by keeping committed credit lines available.Management monitors rolling forecasts of the entity’s liquidity reserve on the basis of expected cash flow.

For the purpose of the Statement of Cash Flows, cash and cash equivalents assets comprise cash on handand short-term deposits with original maturities of three months or less that are readily convertible to a knownamount of cash and which are subject to insignificant risk of changes in value.

(ac) Capitalisation policy

The cost of non-current assets constructed by the Housing Authority includes the cost of all materials used inconstruction, direct labour costs incurred on the project during construction and an appropriate proportion ofoverheads.

(ad) Income tax

The parent entity and its subsidiary, Keystart Housing Scheme Trust, are income tax exempt bodies. Goldmaster Pty Ltd is a tax paying entity.Current income tax is the tax on the current period's taxable income based on the applicable income tax rateadjusted for changes in deferred tax assets and liabilities.

Deferred tax assets and liabilities are recognised for temporary differences at the applicable tax rates when theassets are expected to be recovered or liabilities settled. No deferred tax asset or liability is recognised inrelation to temporary differences if they arose in a transaction , other than a business combination, that at thetime of the transaction did not affect either accounting profit or taxable profit or loss.

Current and deferred tax balances attributable to amounts recognised directly in equity are also recogniseddirectly in equity.

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(ae) Contributed equity

AASB Interpretation 1038 ‘Contributions by Owners Made to Wholly-Owned Public Sector Entities’ requirestransfers in the nature of equity contributions to be designated by the Government (the owner) as contributionsby owners (at the time of, or prior to transfer) before such transfers can be recognised as equity contributions.Capital contributions (appropriations) have been designated as contributions by owners by TI 955‘Contributions by Owners made to Wholly Owned Public Sector Entities’ and have been credited directly toContributed Equity.Transfer of net assets to/from other agencies are designated as contributions by owners where the transfersare non-discretionary and non-reciprocal.

(af) Assets and services received free of charge or for nominal cost

Assets or services received free of charge or for nominal cost, that the Authority would otherwise purchase ifnot donated, are recognised as income at the fair value of the assets services where they can be reliablymeasured. A corresponding expense is recognised for services received. Receipts of assets are recognised inthe Statement of Financial Position

Assets or services received from other State Government agencies are separately disclosed under Incomefrom State Government in the Statement of Comprehensive Income

3. Disclosure of changes in accounting policy and estimates.

Initial application of an Australian Accounting Standard

The Housing Authority has applied the following Australian Accounting Standards effective for annual reportingperiods beginning on or after 1 July 2015 that impacted on the Housing Authority.

AASB 2013-9 Amendments to Australian Accounting Standards – Conceptual Framework, Materiality and Financial InstrumentsPart C of this Standard defers the application of AASB 9 to 1 January 2017. The application date of AASB 9 was subsequently deferred to 1 January 2018 by AASB 2014-1. The Authority has not yet determined the application or potential impact of AASB 9.

AASB 2014-8 Amendments to Australian Accounting Standards arising from AASB 9 (December 2014) – Application of AASB 9 (December 2009) and AASB 9 (December 2010) [AASB 9 (2009 & 2010)]This Standard makes amendments to AASB 9 Financial Instruments (December 2009) and AASB 9 Financial Instruments (December 2010), arising from the issuance of AASB 9 Financial Instruments in December 2014. The Authority is not currently permitted to early adopt the resultant financial instrument standard and has not yet determined the application or the potential impact of AASB 9.

AASB 2015-3 Amendments to Australian Accounting Standards arising from the withdrawal of AASB 1031 Materiality This Standard completes the withdrawal of references to AASB 1031 in all Australian Accounting Standardsand Interpretations, allowing that Standard to effectively be withdrawn. There is no financial impact.

AASB 2015-7 Amendments to Australian Accounting Standards – Fair Value Disclosures of Not-for-Profit Public Sector Entities (AASB 13)This Standard relieves not-for-profit public sector entities from the reporting burden associated with various disclosures required by AASB 13 for assets within the scope of AASB 116 that are held primarily for their current service potential rather than to generate future net cash inflows. It has no financial impact.

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3. Disclosure of changes in accounting policy and estimates. (continued)

Future impact of Australian Accounting Standards not yet operative

The Housing Authority cannot early adopt an Australian Accounting Standard unless specifically permitted by TI1101 ‘Application of Australian Accounting Standards and Other Pronouncements’. Consequently, the HousingAuthority has not applied early any of the following Australian Accounting Standards that have been issued that mayimpact the Housing Authority. Where applicable, the Housing Authority plans to apply the following Standards from their application date.

AASB 9 Financial Instruments - This Standard supersedes AASB 139 Financial Instruments: 1 Jan 2018Recognition and Measurement, introducing a number of changes to accounting treatments. The mandatory application date of this Standard is currently 1 January 2018 after being amended by AASB 2012-6,AASB 2013-9, and AASB 2014-1 Amendments to Australian Accounting Standards . The Authority has not yet determined the application or the potential impact of the Standard.

AASB 15 Revenue from Contracts with Customers - This Standard establishes the principles that 1 Jan 2018the Authority shall apply to report useful information to users of financial statements about the nature,amount, timing and uncertainty of revenue and cash flows arising from a contract with a customer. The mandatoryapplication date of this Standard has been amended by AASB 2015-8 to 1 January 2018.The Authority has not yet determined the application or the potential impact of the Standard.

AASB 16 Leases This Standard introduces a single lessee accounting model and requires a lessee to recognise assets and 1 Jan 2019liabilities for all leases with a term of more than 12 months, unless the underlying asset is of low value. The Department has not yet determined the application or the potential impact of the Standard.

AASB 1057 Application of Australian Accounting Standards 1 Jan 2016This Standard lists the application paragraphs for each other Standard (and Interpretation), grouped where they are the same. There is no financial impact.

AASB 2010-7 Amendments to Australian Accounting Standards arising from AASB 9 (December 1 Jan 20182010) [AASB 1, 3, 4,5,7, 101, 102, 108, 112, 118, 120, 121, 127, 128, 131, 132, 136, 137, 139,1023 & 1038 and Int 2, 5, 10, 12, 19 & 127] This Standard makes consequential amendments toother Australian Accounting Standards and Interpretations as a result of issuing AASB 9 inDecember 2010. The mandatory application date of this Standard has been amended by AASB 2012-6 and AASB 2014-1 to 1 January 2018. The Authority has not yetdetermined the application or the potential impact of the Standard.

AASB 2014-1 Amendments to Australian Accounting Standards. 1 Jan 2018Part E of this Standard makes amendments to AASB 9 and consequential amendments to otherStandards. It has not yet been assessed by the Authority to determine the application or potentialimpact of the Standard.

AASB 2014-3 Amendments to Australian Accounting Standards – Accounting for Acquisitions of 1 Jan 2016Interests in Joint Operations [AASB 1 & 11]The Authority establishes Joint Operations in pursuit of its objectives and does not routinely acquireinterests in Joint Operations. Therefore, there is no financial impact on application of the Standard.

AASB 2014-4 Amendments to Australian Accounting Standards – Clarification of Acceptable 1 Jan 2016 Methods of Depreciation and Amortisation [AASB 116 & 138]The adoption of this Standard has no financial impact for the Authority as depreciation andamortisation is not determined by reference to revenue generation, but by reference to consumptionof future economic benefits.

AASB 2014-5 Amendments to Australian Accounting Standards arising from AASB 15 1 Jan 2018This Standard gives effect to the consequential amendments to Australian Accounting Standards (including Interpretations) arising from the issuance of AASB 15. The mandatory application date of thisStandard has been amended by AASB 2015-8 to 1 January 2018.The Department has not yet determined the application or the potential impact of the Standard.

AASB 2014-7 Amendments to Australian Accounting Standards arising from AASB 9 1 Jan 2018(December 2014)This Standard gives effect to the consequential amendments to Australian Accounting Standards(including Interpretations) arising from the issuance of AASB 9 (December 2014). The Authority has not yet determined the application or the potential impact of the Standard.

Operative forreporting periodsbeginning on/after

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3. Disclosure of changes in accounting policy and estimates. (continued)

Future impact of Australian Accounting Standards not yet operative (continued)

AASB 2014-9 Amendments to Australian Accounting Standards – Equity Method in 1 Jan 2016Separate Financial Statements [AASB 1, 127 & 128]This Standard amends AASB 127, and consequentially amends AASB 1 and AASB 128, toallow entities to use the equity method of accounting for investments in subsidiaries, joint ventures and associates in their separate financial statements. The Authority has not yet determined the application or the potential impact of the Standard.

AASB 2014-10 Amendments to Australian Accounting Standards – Sale or Contribution of Assets 1 Jan 2016 between an Investor and its Associate or Joint Venture [AASB 10 & 128]This Standard amends AASB 10 and AASB 128 to address an inconsistency between the requirements in AASB 10 and those in AASB 128 (August 2011), in dealing with the sale or contribution of assets between an investor and its associate or joint venture. The Authority has application or the potential impact of the Standard.

AASB 2015-1 Amendments to Australian Accounting Standards – Annual Improvements to 1 Jan 2016 Australian Accounting Standards 2012–2014 Cycle [AASB 1, 2, 3, 5, 7, 11,110, 119, 121, 133, 134, 137 & 140]These amendments arise from the issuance of International Financial Reporting Standard AnnualImprovements to IFRSs 2012–2014 Cycle in September 2014, and editorial corrections. TheAuthority has not yet determined the application or the potential impact of the Standard.

AASB 2015-2 Amendments to Australian Accounting Standards – Disclosure Initiative: 1 Jan 2016Amendments to AASB 101 [AASB 7, 101, 134 & 1049]This Standard amends AASB 101 to provide clarification regarding the disclosure requirements inAASB 101. Specifically, the Standard proposes narrow-focus amendments to address some of theconcerns expressed about existing presentation and disclosure requirements and to ensure entities are able to use judgement when applying a Standard in determining what information to disclose in their financial statements. There is no financial impact.

AASB 2015-3 Amendments to Australian Accounting Standards arising from the 1 July 2015 Withdrawal of AASB 1031 MaterialityThis Standard completes the withdrawal of references to AASB 1031 in all Australian AccountingStandards and Interpretations, allowing that Standard to effectively be withdrawn. There is no financial impact.

AASB 2015-6 Amendments to Australian Accounting Standards – Extending Related Party 1 July 2016Disclosures to Not-for-Profit Public Sector Entities [AASB 10, 124 & 1049]The amendments extend the scope of AASB 124 to include application by not-for-profit public sector entities. Implementation guidance is included to assist application of the Standard by not-for-profit public sector entities. The Authority will be required to make related party disclosures, though there is no financial impact.

AASB 2015-8 Amendments to Australian Accounting Standards - Effective Date of AASB 15 1 Jan 2017This Standard amends the mandatory effective date (application date) of AASB 15 Revenue from Contracts with Customers so that AASB 15 is required to be applied for annual reporting periods beginningon or after 1 January 2018 instead of 1 January 2017.The Department has not yet determined the application or the potential impact of AASB 15.

AASB 2015-10 Amendments to Australian Accounting Standards – Effective Date 1 Jan 2016 of Amendments to AASB 10 & 128This Standard defers the mandatory effective date (application date) of amendments to AASB 10 & 128that were originally made in AASB 2014-10 so that the amendments are required to be applied for annualreporting periods beginning on or after 1 January 2018 instead of 1 January 2016. The Department has notyet determined the application or the potential impact of AASB 2014-10.

AASB 2016-2 Amendments to Australian Accounting Standards – Disclosure Initiative: Amendments to AASB 107 1 Jan 2017This Standard amends AASB 107 Statement of Cash Flows (August 2015) to require disclosures that enableusers of financial statements to evaluate changes in liabilities arising from financing activities, includingboth changes arising from cash flows and non-cash changes. There is no financial impact.

AASB 2016-3 Amendments to Australian Accounting Standards – Clarifications to AASB 15 1 Jan 2018This Standard clarifies identifying performance obligations, principal versus agent considerations, timing of recognising revenue from granting a licence, and, provides further transitional provisions toAASB 15. The Department has not yet determined the application or the potential impact.

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Correction of Prior Year Error

In prior financial years, Keystart Housing Scheme Trust recognised the distribution to the Housing Authority(as Income Beneficiary) at the time the Directors (Trustee Company) declared the distribution payable. The Trust Deedrequires the Trustee to provide or make the distribution during the year the Income Beneficiary became entitled.For the year ending 30 June 2015, the distribution was not recognised until the following financial year at 25 September 2015. As a result, the settled sum of Keystart Housing Scheme Trust was overstated and liabilities were understated at 30 June 2015. For Housing Authority, there was a corresponding understatement of loans and receivables and retained earnings at 30 June 2015.

The impact of the error for the Housing Authority has been quantified from 30 June 2014. The Consolidated Entity is not affected. Accordingly, the Statement of Financial Position and Statement of Comprehensive Income have been restated as follows -

Actual Correction Restated 2015 of error 2015

Parent $000 $000 $000

NoteStatement of Financial Position 2015Loans and Receivables: Current 23 105,635 83,281 188,916Retained Earnings 42 2,779,759 83,281 2,863,040

Statement of Comprehensive Income 2015Other Gains 11 95,746 11,285 107,031

Statement of Financial Position 2014Loans and Receivables: Current 113,095 71,996 185,091Retained Earnings 2,736,102 71,996 2,808,098

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4. Key sources of estimation uncertainty

Key estimates and assumptions concerning the future are based on historical experienceand various other factors that have a significant risk of causing a material adjustment tothe carrying amount of assets and liabilities within the next financial year.

Defined benefit superannuation plansIn determining the Housing Authority’s ultimate cost of its defined benefit superannuation plans, actuarialassumptions are required to be made. The principal actuarial assumptions used are disclosed in note 38‘Provisions’.

Long service leave liabilitySeveral estimations and assumptions used in calculating the Authority’s long service leave provision includeexpected future salary rates, discount rates, employee retention rates and expected future payments. Changesin these estimations and assumptions may impact on the carrying amount of the long service leave provision.The principal actuarial assumptions used are disclosed in note 38 ‘Provisions’.

Depreciation and amortisationThe depreciation and amortisation rates for the Consolidated Entity have been reviewed. The estimation of theuseful lives of assets has been based on historical experience with the retention and disposal of assets. Refer tonote 2 (f) for depreciation rates.

RevaluationThe revaluation of the Housing Authority's assets is undertaken by the Western Australian Land InformationAuthority annually. Valuation estimates for financial reporting purposes are determined under the accountingconcept of fair value. Fair value is defined as 'the amount for which the asset could be exchanged or a liabilitysettled, between knowledgeable, willing parties at an arms length transaction'. It is based on the assumption thatthe Housing Authority is a going concern without the need or intention to liquidate or wind up its operations orundertake a transaction on adverse terms.

5

Joint OperationsThe Housing Authority has entered into a number of joint arrangements for the development of land holdings.The Housing Authority with other parties have rights to the assets, and obligations for the liabilities, relating to thearrangement. Accordingly, the Housing Authority has classified its interests in joint arrangements as joint operations.

Judgements made by management in applying accounting policiesThe preparation of financial statements requires management to make judgements about the application ofaccounting policies that have significant amounts recognised in the financial statements. The Housing Authorityevaluates these judgements regularly.

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6. 'Schedule of income and expenses by service

2016 CONSOLIDATED 2015

Rental Government HomeLand and Housing Elimination Total Rental Government Home

Land and Housing Elimination Total

Housing Regional Officers' Loans Supply Housing Regional Officers' Loans SupplyHousing Housing

$000 $000 $000 $000 $000 $000 INCOME Note $000 $000 $000 $000 $000 $000Revenue

651 242 - 396,379 - 397,272 Sales 7 95 15 - 482,479 - 482,589- - - - (17,440) (17,440) Intersegment sales - - - - (15,865) (15,865)

236,631 183,949 3 161 - 420,744 Rental revenue 8 223,865 224,409 2 192 - 448,468284,235 - - - - 284,235 Commonwealth grants and contributions 9 204,550 - - - - 204,550

907 3,944 225,950 (5,807) - 224,994 Interest revenue 10 3,118 2,980 216,038 (5,136) - 217,000- - - - - - Developers contributions - - - 9 - 9

19,960 33 4,590 2,833 - 27,416 Other revenues 11 18,843 8 4,707 2,504 - 26,062542,384 188,168 230,543 393,566 (17,440) 1,337,221 Total revenue 450,471 227,412 220,747 480,048 (15,865) 1,362,813

Gains125 - 6 42 - 173 Gain on the disposal of non-current assets 12 - - 2,888 81 - 2,969125 - 6 42 - 173 Total gains - - 2,888 81 - 2,969

542,509 188,168 230,549 393,608 (17,440) 1,337,394 Total income 450,471 227,412 223,635 480,129 (15,865) 1,365,782

EXPENSES- 231 - 245,054 - 245,285 Cost of sales 7 64 22 - 310,811 - 310,897

239,051 116,451 - 101 - 355,603 Rental expenses 13 221,642 135,072 - 222 - 356,936184,638 - - - - 184,638 Community support expense 14 160,846 - - 2 - 160,848104,036 13,512 3,472 13,798 - 134,818 Employee benefits expense 15 108,217 13,133 4,153 11,120 - 136,62328,675 252 5,405 7,156 - 41,488 Supplies and services 16 26,207 257 5,912 7,826 - 40,202

124,491 14,474 9,045 1,999 - 150,009 Depreciation & amortisation expense 17 119,460 16,985 8,346 1,695 - 146,48618,080 8,624 126,741 7,500 - 160,945 Finance costs 18 19,752 9,744 118,872 7,844 - 156,212

- - - - - Share of net losses of associate - - - - -11,083 - 1,102 1,120 - 13,305 Accommodation expenses 19 11,384 14 1,072 1,101 - 13,57120,889 4,708 1,705 4 - 27,306 Loss on the disposal of non-current assets 12 12,320 6,749 15 - - 19,08497,175 538 23,999 28,972 - 150,684 Other expenses 20 81,238 219 21,083 34,561 - 137,101

828,118 158,790 171,469 305,704 - 1,464,081 Total expenses 761,130 182,195 159,453 375,182 - 1,477,960Profit/(loss) before grants and subsidies

(285,609) 29,378 59,080 87,904 (17,440) (126,687) from government (310,659) 45,217 64,182 104,947 (15,865) (112,178)100,683 4,765 - - - 105,448 Grants and subsidies from government 9 90,730 - - - - 90,730

Profit/(loss) after grants and subsidies(184,926) 34,143 59,080 87,904 (17,440) (21,239) from government (219,929) 45,217 64,182 104,947 (15,865) (21,448)

- - 402 - 402 Non-controlling interest - - - 73 - 73(184,926) 34,143 59,080 88,306 (17,440) (20,837) Profit/(loss) for the period (219,929) 45,217 64,182 105,020 (15,865) (21,375)

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6. Schedule of income and expenses by service ( continued )

2016 THE HOUSING AUTHORITY 2015

Rental Government HomeLand and Housing Elimination Total Rental Government Home

Land and Housing Elimination Total

Housing Regional Officers' Loans Supply Housing Regional Officers' Loans SupplyHousing Housing

$000 $000 $000 $000 $000 $000 INCOME Note $000 $000 $000 $000 $000 $000Revenue

651 242 - 393,281 - 394,174 Sales 7 95 15 - 446,662 - 446,772- - - - (17,440) (17,440) Intersegment sales - - - - (15,865) (15,865)

236,631 183,949 3 161 - 420,744 Rental revenue 8 223,865 224,409 2 192 - 448,468284,235 - - - - 284,235 Commonwealth grants and contributions 9 204,550 - - - - 204,550

907 3,944 112,042 (5,666) - 111,227 Interest revenue 10 3,118 2,980 108,859 (4,144) - 110,813- - - - - - Developers contributions - - - 9 - 9

19,960 33 89,725 2,833 - 112,551 Other revenues 11 18,843 8 85,722 2,458 - 107,031542,384 188,168 201,770 390,609 (17,440) 1,305,491 Total revenue 450,471 227,412 194,583 445,177 (15,865) 1,301,778

Gains125 - 6 42 - 173 Gain on the disposal of non-current assets 12 2,888 81 - 2,969125 - 6 42 - 173 Total gains - - 2,888 81 - 2,969

542,509 188,168 201,776 390,651 (17,440) 1,305,664 Total income 450,471 227,412 197,471 445,258 (15,865) 1,304,747

EXPENSES- 231 - 241,593 - 241,824 Cost of sales 7 64 22 - 277,477 - 277,563

239,051 116,451 - 101 - 355,603 Rental expenses 13 221,642 135,072 - 222 - 356,936184,638 - - - - 184,638 Community support expense 14 160,846 - - 2 - 160,848104,036 13,512 2,839 13,798 - 134,185 Employee benefits expense 15 108,217 13,133 3,533 11,120 - 136,00328,675 252 870 7,156 - 36,953 Supplies and services 16 26,207 257 870 7,826 - 35,160

124,491 14,474 7,448 1,993 - 148,406 Depreciation & amortisation expense 17 119,460 16,985 7,153 1,690 - 145,28818,080 8,624 126,738 7,500 - 160,942 Finance costs 18 19,752 9,744 118,869 7,844 - 156,20911,083 - 20 1,120 - 12,223 Accommodation expenses 19 11,384 14 23 1,101 - 12,52220,889 4,708 1,690 4 - 27,291 Loss on the disposal of non-current assets 12 12,320 6,749 - - - 19,06997,175 538 3,086 26,354 - 127,153 Other expenses 20 81,238 219 6,831 32,459 - 120,747

828,118 158,790 142,691 299,619 - 1,429,218 Total expenses 761,130 182,195 137,279 339,741 - 1,420,345Profit/(loss) before grants and subsidies

(285,609) 29,378 59,085 91,032 (17,440) (123,554) from government (310,659) 45,217 60,192 105,517 (15,865) (115,598)100,683 4,765 - - - 105,448 Grants and subsidies from government 9 90,730 - - - 90,730

(184,926) 34,143 59,085 91,032 (17,440) (18,106) Gain/(loss) for the period (219,929) 45,217 60,192 105,517 (15,865) (24,868)


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Consolidated Parent 7. Trading profit 2016 2015 2016 2015

$000 $000 $000 $000Sales

Joint operations land 119,212 164,657 119,212 164,657Land 64,425 68,638 64,425 68,638House and land packages 196,195 233,429 193,097 197,612

379,832 466,724 376,734 430,907Less cost of land sold

Joint operations land 50,109 66,285 50,109 66,285Land 27,224 42,974 27,224 42,974House and land packages 167,952 201,638 164,491 168,304

245,285 310,897 241,824 277,563Trading Profit 134,547 155,827 134,910 153,344

8. Rental revenue

Rental properties 409,327 438,086 409,327 438,086Rental amenities 3,653 3,818 3,653 3,818Commercial properties 7,752 6,552 7,752 6,552Community Housing properties 12 12 12 12Total rental revenue 420,744 448,468 420,744 448,468

9. Commonwealth and State grants

Commonwealth grants and contributionsAboriginal housing 163,487 83,484 163,487 83,484Commonwealth rental grants 106,408 107,286 106,408 107,286Crisis accommodation & Community Housing 14,340 13,780 14,340 13,780Commonwealth FAHCSIA - - - -Total Commonwealth grants 284,235 204,550 284,235 204,550

State grants and subsidiesDepartment of Treasury 92,221 74,583 92,221 74,583Royalties for Regions-Regional Infrastructure and HeadworksAccount 945 8,447 945 8,447Department of State Development 4,764 4,764 -Disability Services Commission 5,318 4,400 5,318 4,400Mental Health Commission 1,900 300 1,900 300Landcorp 300 3,000 300 3,000Total State grants 105,448 90,730 105,448 90,730

10. Interest revenue

Loan interestKeystart secured mortgage advances 213,926 205,485 - -

213,926 205,485 - -The Housing Authority loan schemes - - - -

- - - -Total Loan Interest 213,926 205,485 - -

Other interestInterest on cash at bank 5,302 5,374 5,302 5,374Interest on investments 4,747 5,256 105,389 104,554Interest other 1,019 885 536 885Total other interest 11,068 11,515 111,227 110,813Total interest revenue 224,994 217,000 111,227 110,813

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Consolidated Parent 11. Other gains 2016 2015 2016 2015

$000 $000 $000 $000

Bad debts recovered 848 765 848 765Conveyancing fees 2,074 2,426 2,074 2,426Dividends - - 87,432 83,281Income tax (note 23) - - - -Other revenue 24,494 22,871 22,197 20,559Total other revenues 27,416 26,062 112,551 107,031

12. Net gain/(loss) on disposal of non-current assets

Proceeds from the disposal of non-current assetsRental properties 85,616 63,838 85,616 63,838Community Housing properties 5,616 1,413 5,616 1,413Shared Equity properties 39,036 55,019 39,036 55,019Plant & equipment 293 568 293 568

130,561 120,838 130,561 120,838Carrying amount of non-current assets disposed

Rental properties 109,724 80,719 109,724 80,719Community Housing properties 7,109 4,074 7,109 4,074Shared Equity properties 40,726 52,142 40,726 52,142Plant & equipment 135 18 120 3

157,694 136,953 157,679 136,938Net loss (27,133) (16,115) (27,118) (16,100)

The cost on disposal of rental properties includes the value of properties demolished of $12.412 million (2015: $7.093 million).

13. Rental expenses

Maintenance expenses 123,931 89,013 123,931 89,013Debt collection expenses 1,254 1,232 1,254 1,232Estate management expenses 6,418 9,303 6,418 9,303General expenses 12,725 17,497 12,725 17,497Insurance expenses 7,703 9,194 7,703 9,194Rates expenses 94,985 85,095 94,985 85,095Renovations & improvements 26,038 45,873 26,038 45,873Demolition costs 65 70 65 70Non cancellable operating leases:- Rental properties 82,484 99,659 82,484 99,659Total rental expenses 355,603 356,936 355,603 356,936

14. Community support expense

Aboriginal Housing (a) 177,143 152,927 177,143 152,927Community Housing (b) 7,495 7,914 7,495 7,914Mortgage and rental assistance program - cash assistance - 7 - 7

Total community support expense 184,638 160,848 184,638 160,848

(a) Aboriginal housing community support consists of expenses incurred in the provision of remote indigenouscommunity housing and support programmes including capitalised administration of $25.45 million (2015:$25.49 million).

(b) Community Housing support consists of expenses incurred in the provision of housing undertaken bycommunity groups.

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Consolidated Parent 2016 2015 2016 2015

15. Employee benefits expense $000 $000 $000 $000

Salaries & wages (a) 150,466 150,701 149,833 150,081Superannuation - defined contribution plans (b) 14,129 12,422 14,129 12,422Superannuation - defined benefit plans (Note 38) 377 1,987 377 1,987

164,972 165,110 164,339 164,490Less Credits:Administration capitalised 28,068 25,890 28,068 25,890Recoups 2,086 2,597 2,086 2,597Total credits 30,154 28,487 30,154 28,487Total employee benefits expenses 134,818 136,623 134,185 136,003

(a) Included in Salaries & Wages are voluntary severances of $5.691 million which were offered to employees duringthe financial year.

(b) Defined contribution plans include West State, Gold State, GESB and other eligible funds. Employmenton-costs expenses, such as workers’ compensation insurance, are included in note 20 ‘Other expenses’.Employment on-costs liability is included at note 38 ‘Provisions’.

16. Supplies and services

Other personnel costs 7,088 8,220 7,088 8,220Travel 2,227 2,404 2,227 2,404Stationery & supplies 958 1,166 660 882Communication 5,602 5,113 5,476 4,982Other costs & expenses 22,626 20,141 18,847 16,027External and Internal Audit fees 821 959 489 446Motor vehicles 1,034 1,051 1,034 1,051

40,356 39,054 35,821 34,012Lease expensesNon cancellable operating leases:- Motor vehicles 1,132 1,148 1,132 1,148

1,132 1,148 1,132 1,148Total supplies and services 41,488 40,202 36,953 35,160

17. Depreciation and amortisation expense

DepreciationRental properties 119,769 120,605 119,769 120,605Community Housing properties 10,023 9,262 10,023 9,262Shared Equity properties 7,258 7,027 7,258 7,027Other properties 1,448 1,447 1,448 1,447Plant & equipment 2,604 2,357 1,489 1,636

AmortisationIntangible assets 8,419 5,311 8,419 5,311Other assets 488 477 - -

Total depreciation and amortisation expense 150,009 146,486 148,406 145,288

18. Finance costs

Interest expense 160,942 156,209 160,942 156,209Finance charges 3 3 - -Total finance costs 160,945 156,212 160,942 156,209

19. Accommodation expenses

Office rental & accommodation 7,673 8,007 7,634 7,968Lease expensesNon cancellable operating Office properties leases 5,632 5,564 4,589 4,554Total accommodation expenses 13,305 13,571 12,223 12,522

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Consolidated 20. Other expenses 2016 2015 2016 2015

$000 $000 $000 $000

Doubtful debts expense 14,515 11,378 7,595 6,979Fees - Keystart 13,194 13,812 - -Grants & subsidies 758 818 758 818Land expenses 15,874 13,185 13,838 13,185Loan scheme expenses 1,412 1,369 1,412 5,365Write down of assets classified as held for sale 1,145 431 1,145 431Employee on costs 8,951 9,950 8,951 9,950Other expenses 35,665 56,222 34,284 54,083Assets transferred to Community Housing (a) 59,170 29,936 59,170 29,936Total other expenses 150,684 137,101 127,153 120,747

(a) As at 30 June 2016, the Housing Authority transferred 115 property assets valued at $22.35 million (2015: 38property assets valued at $7.63 million) to Community Housing Organisations in accordance with CommonwealthStimulus funding requirements.

21. Cash and cash equivalents

Cash at bank - operational 211,032 178,368 177,126 131,027Cash advances 9 9 9 9

211,041 178,377 177,135 131,036Restricted cash:Rental tenants bonds 12,029 15,189 12,029 15,189Joint operations cash 29,828 31,590 29,828 31,590Unspent Municipal and Essential Services funds 62,789 - 62,789Remote indigenous housing 3,106 3,950 3,106 3,950Royalties for Regions Fund 48,178 42,885 48,178 42,885

155,930 93,614 155,930 93,614Total cash and cash equivalents 366,971 271,991 333,065 224,650

Rental Tenants Bonds represents bond monies received by the Housing Authority from rental clients. These fundsare held in trust in accordance with the Residential Tenancies Act. Joint Operations Cash is restricted for the use ofjoint operations operations and is controlled by the respective management groups. Unspent funds for Royalties forRegions are committed to projects and programs in WA regional areas. The Housing Authority is a propertymanager for remote indigenous communities and does not have ownership of these properties. The cash heldrepresents unspent funds for these properties.

22. Inventories

CurrentLand held for sale at cost (note 2(h)) currentCost of acquisition and development 170,855 228,025 170,855 211,607Capitalised rates, taxes, administration and interest 1,291 1,320 1,291 1,320

172,146 229,345 172,146 212,927Joint operations land at cost (note 2 (h)) 67,261 71,347 67,261 71,347House and land packages for sale 134,128 81,388 121,627 81,330Total current inventories 373,535 382,080 361,034 365,604

Non-currentLand held for sale at cost (note 2(h)) non - currentCost of acquisition and development 427,685 380,788 415,868 367,654Capitalised rates, taxes, administration and interest 7,029 6,618 7,029 6,618

434,714 387,406 422,897 374,272House and land packages construction in progress 67,232 93,674 67,232 93,674Joint operations land at cost (a) 95,113 88,855 95,113 88,855Total non-current inventories 597,059 569,935 585,242 556,801

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22. Inventories (Continued)

(a) The Housing Authority enters into joint operations for the development of land holdings. Listed below are current joint operations

ButlerThe Housing Authority holds a 46.8% interest in an incorporated joint operation with Butler Land Pty Ltd for the development of land at the Brighton estate. The incorporated joint operation is named Ocean Springs Pty Ltd. The principal place of business is in Western Australia. The Housing Authority contributes development costs and receives revenues on the basis of the interest held in the joint operation.

Dalyellup BeachThe Housing Authority holds a 50% interest in an incorporated joint operation with Home Satterley Dalyellup Pty Ltdfor the development of land at Dalyellup Beach, Bunbury. The incorporated joint operation is named Dalyellup Beach Pty Ltd. The principal place of business is in Western AustraliaThe Housing Authority contributes development costs and receives revenues on the basis of the interest held in the joint operation.

EllenbrookThe Housing Authority holds a 47.1% interest in an incorporated joint operation with Sanwa Vines Pty Ltd - subsequently transferred to a syndicate of companies for the development of land at Ellenbrook. The incorporated joint operation is named Ellenbrook Management Pty Ltd. The principal place of business is in Western AustraliaThe Housing Authority contributes development costs and receives revenues on the basis of the interest held in the joint operation.

WandinaThe Housing Authority holds a 50% interest in an incorporated joint operation with Springdale Holdings Pty Ltd for the development of land at Wandina, Geraldton. The incorporated joint operation is named Seacrest Corporation Pty Ltd. The principal place of business is in Western AustraliaThe Housing Authority contributes development costs and receives revenues on the basis of the interest held in the joint operation.

Oyster HarbourThe Housing Authority holds a 50% interest in an unincorporated joint operation with Lowe Pty Ltd for the land at the Oyster Harbour Estate, Bayonet Head, Albany. The principal place of business is in Western Australia. The Housing Authority contributes development costs and receives revenues on the basis of the interest held in the joint operation.

WellardThe Housing Authority holds an interest in an unincorporated joint operation with Peet Southern JV Ltd for thedevelopment of Housing Authority land in Wellard. The Housing Authority contributes the land and the participantcontributes the funds for the development of the land. The Housing Authority receives a 10% land payment on thesale of each lot and 80% share in the profits.The principal place of business is in Western Australia.

Banksia GroveThe Housing Authority holds an interest in an unincorporated joint operation with Banksia Grove Development Nominees Pty Ltd for the development of its land at Banksia Grove. The Housing Authority contributes the land and the participant contributes the funds for the development of the land. The Housing Authority receives a 35% land payment on the sale of each lot and 40% share in the profits.The principal place of business is in Western Australia

BrookdaleThe Housing Authority holds a 50% interest in an unincorporated joint operation with Stockland WA Development PtyLtd for the development of land at Brookdale. The Housing Authority contributes development costs and receives revenues on the basis of interest held in the joint operation.The principal place of business is in New South Wales.

HarrisdaleThe Housing Authority holds an interest in an unincorporated joint operation with Cedar Woods Properties Harrisdale Pty Ltd for the development of its land at Harrisdale. The Housing Authority contributes the land and the participant contributes the funds for the development of the land. The Housing Authority receives a 30% land payment on the sale of the lots, a 10% land payment on the sale of built form products and a 66.6% share in the profits.The principal place of business is in Western Australia.

BeeliarThe Housing Authority holds an interest in an unincorporated joint operation with Beeliar Partnership Pty Ltd forthe development of its land at Beeliar. The Housing Authority contributes the land and the participant contributes thefunds for the development of the land. The Housing Authority receives a 33% land payment on the sale of each lotand 50% share in the profits.The principal place of business is in Western Australia.

Golden Bay EstateThe Housing Authority holds an interest in an unincorporated joint operation with Peet Golden Bay Pty Ltd forthe development of its land at Golden Bay Estate. The Housing Authority contributes the land and the participant contributes the funds for the development of the land. The Housing Authority receives a 50% land payment on the sale of each lot and 50% share in the profits.The principal place of business is in Western Australia.

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22. Inventories (Continued)JOINT OPERATIONS

Butler Dalyellup Ellenbrook Wandina Oyster Golden Bay Brookdale Beeliar Harrisdale Wellard Banksia TotalBeach Harbour Estate Grove

$000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000CURRENT ASSETSCash and cash equivalents 21 8,776 4,725 1,940 219 58 904 13,207 - - - - 29,828Receivables 23 4,489 446 1,879 1,920 228 95 249 - - - - 9,306Inventories 22 15,191 4,064 32,480 - 3,374 5,658 6,495 - - - - 67,261Other current assets 25 - - 2,044 22 - - - - - - - 2,066

28,456 9,235 38,343 2,161 3,660 6,657 19,950 - - - - 108,461

NON-CURRENT ASSETSReceivables 23 530 - 186 - - - - - - - - 716Office Equipment 32 11 7 7 - - 15 - - - - - 39Buildings 31 1,081 62 156 - - - - - - - - 1,299Development costs (1) 22 12,939 15,530 3,369 2,620 2,935 2,185 17,839 - - - - 57,417

14,561 15,599 3,718 2,620 2,935 2,200 17,839 - - - - 59,471Total assets 43,017 24,834 42,061 4,781 6,595 8,857 37,789 - - - - 167,932

CURRENT LIABILITIESPayables 36 3,520 647 546 1,951 488 3,447 192 - - - - 10,792Other Liabilities 39 - - - 142 - 9,164 - - - - 9,306Provisions 38 - - 1,107 9 - 841 596 - - - - 2,553

3,520 647 1,653 2,102 488 4,288 9,953 - - - - 22,651NON-CURRENT LIABILITIESPayables and Interest-bearing liabilities 36 530 - 24 - - - - - - - 554

530 - 24 - - - - - - - - 554Total liabilities 4,050 647 1,677 2,102 488 4,288 9,953 - - - - 23,205NET ASSETS 38,967 24,187 40,384 2,679 6,107 4,569 27,836 - - - - 144,727

Land (1) 22 1,594 - 1,729 206 6,932 10,948 8,063 - 1,026 3,142 4,055 37,696

1. The total of development costs ($57.417 million) and Authority land ($37.696 million) represents the total ($95.113 million) joint operations land.

2016


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22. Inventories (Continued)JOINT OPERATIONS

2015Butler Dalyellup Ellenbrook Wandina Oyster Golden Bay Brookdale Beeliar Harrisdale Wellard Banksia Total

Beach Harbour Estate Grove

$000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000CURRENT ASSETSCash and cash equivalents 21 14,327 2,581 7,622 2,131 452 704 3,773 - - - - 31,590Receivables 23 2,945 2,782 3,493 36 - 652 249 - - - - 10,157Inventories 22 20,549 7,058 34,298 - 2,861 4,552 2,029 - - - - 71,347Other current assets 25 - - 269 - - - - - - - 269

37,821 12,421 45,682 2,167 3,313 5,908 6,051 - - - - 113,363NON-CURRENT ASSETSReceivables 23 530 - - 60 - - - - - - - 590Office Equipment 32 288 7 13 51 - - - - - 359Buildings 31 817 69 184 - - - - - - 1,070Development costs (1) 22 9,762 14,017 4,256 2,550 2,926 1,056 15,119 - - - 49,686

11,397 14,093 4,453 2,610 2,926 1,107 15,119 - - - - 51,705Total assets 49,218 26,514 50,135 4,777 6,239 7,015 21,170 - - - - 165,068

CURRENT LIABILITIESPayables 36 6,775 1,638 1,191 24 94 3,959 113 - - - - 13,794Other Liabilities 39 - - - 2,028 - - - - - - 2,028Provisions 38 - - 741 60 - 519 280 - - - - 1,600

6,775 1,638 1,932 2,112 94 4,478 393 - - - - 17,422NON-CURRENT LIABILITIESPayables and Interest-bearing liabilities 36 530 - 24 - - - - - - - 554

530 - 24 - - - - - - - - 554Total liabilities 7,305 1,638 1,956 2,112 94 4,478 393 - - - - 17,976NET ASSETS 41,913 24,876 48,179 2,665 6,145 2,537 20,777 - - - - 147,092

Land (1) 22 1,797 - 1,911 206 7,268 12,045 6,203 - 1,026 3,679 5,034 39,169

1. The total of development costs ($49.686 million) and Authority land ($39.169 million) represents the total ($88.855 million) joint operations land.

135



Consolidated 2016 2015 2016 2015

23. Loans and receivables $000 $000 $000 $000

CurrentGeneral 34,665 22,905 34,499 27,601Loans to homebuyers 955,449 880,099 - -Joint operations receivables 9,306 10,157 9,306 10,157Rental and Lease bonds 27,734 23,070 27,734 23,070Rents from tenants and other rents 48,576 42,723 48,576 42,723Commercial organisations (a) - - 11,267 9,695Dividend receivable - - 87,432 83,281

1,075,730 978,954 218,814 196,527Less provision for impairment 7,941 7,611 7,941 7,611Total receivables current 1,067,789 971,343 210,873 188,916

A provision for impairment loss is recognised when there is objective evidence that an individual receivable isimpaired.

Reconciliation of changes in the allowances for impairment of receivables

Carrying amount at start of period 7,611 7,208 7,611 7,208Charge for the period 7,595 6,979 7,595 6,979Amounts written off during the period (7,265) (6,576) (7,265) (6,576)Impairment losses reversed during the period - - - -Carrying amount at end of period 7,941 7,611 7,941 7,611

An impairment loss of $7.595 million (2015: $6.979 million) has been recognised by the Housing Authority.

Current receivables individually determined as impaired at the end of the reporting period:Carrying amount before deducting any impairment loss 154 235 154 235Impairment loss (154) (235) (154) (235)

- - - -

(a) The loans to Commercial Organisations includes loan facilities provided to Goldmaster Enterprises of $5.44 million. This loan balanceis secured against a second fixed charge over the land held for resale by Goldmaster Enterprises and a second ranking floating charge over the assets of Goldmaster Enterprises. The loan is repayable at call and originally bore an interest rate of 7% per annum.Repayment terms are within 30 days.

Non currentNon-current loans and advancesKeystart preferential shares (a) - - 4,290,000 4,115,000Loans to homebuyers (b) 3,474,965 3,294,349 - -Less provision for impairment 17,493 12,541 - -

3,457,472 3,281,808 4,290,000 4,115,000Joint operations receivables 716 590 716 590

Total receivables non current 3,458,188 3,282,398 4,290,716 4,115,590

Provision for impairment lossAs at 30 June 2016, loans to homebuyers with a nominal value of $2.095 million (2015:$1 million) wereimpaired and written off against provision for impairment following disposal of mortgaged property. The individually impaired receivables are mainly due to property abandonment and voluntary property surrender.

The creation and release of the provision for impaired receivables has been included in doubtful debtsexpenses in the Statement of Comprehensive Income. Amounts charged to the allowance account aregenerally written off when there is no expectation of recovering additional cash.

Parent

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136


23. Loans and receivables (Continued) Consolidated Parent 2016 2015 2016 2015$000 $000 $000 $000

Movement in Provisions for Impairment

Carrying amount at start of period 12,541 9,045 - -Charge for the year 6,920 4,400 - -Amounts written off (1,968) (904) - -Carrying amount at end of period 17,493 12,541 - -

Ageing analysis of receivables past due but not impaired at the end of the reporting period

Not more than 3 months 222,125 196,864 7,616 13,283More than 3 months but less than 6 months 6,681 5,783 6,681 5,783More than 6 months but less than 1 year 7,481 9,163 7,481 9,163More than 1 year (524) 16,637 (524) 16,637

235,763 228,447 21,254 44,866

All loans and advances are reviewed and graded according to the anticipated level of credit risk. Theclassification adopted is described below:

Outstanding balance on loans for which collateral will be repossessed

Balance 30,097 21,056 - -Provision for impairment (6,717) (2,287) - -

23,380 18,769 - -

Interest foregone on repossessed loans 1,454 809 - -

A Safety Net Scheme is offered to clients who require assistance because of changes in their financialsituation. In most cases, assistance is granted for short terms under twelve months and the loans areregularly monitored and reviewed.The table shows the position as at the end of the financial period.

Number 2016 Number 2015

Safety net loans 215 61,266 161 39,823Provision for impairment (1,307) (1,216)

215 59,959 161 38,607

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23. Loans and receivables (continued)

(a) Keystart preferential sharesThe Western Australian Treasury Corporation has provided the Housing Authority with a $5,000 million loanfacility to fund Keystart Loans Ltd. The Housing Authority has purchased redeemable preference shares inKeystart Loans Ltd to the same value as the drawn down loan facility as security over the funds. The termsand conditions of the shares reflect the terms and conditions of the loan facility. Keystart Loans Ltd. meets allprincipal, interest and other costs associated with the facility. To date $4,290 million (June 2015 $4,115 million)of this facility has been drawn down.

(b) Loans to Homebuyers(a) Interest rate risk

Refer to note 2 (ab) for an analysis of the Consolidated Entity’s exposure to interest rate risk in relation to loanand other receivables. Summarised analysis of the sensitivity of loan and other receivables to interest rate isillustrated in note 2 (ab).

(b) Fair value and credit risk

Loans and receivablesDue to the short term nature of these receivables, their carrying value is assumed to approximate their fairvalue

Consolidated Parent 2016 2015 2016 2015$’000 $’000 $’000 $’000

The fair values and carrying values of receivables are as follows:Loans and receivables - fair value 4,422,608 4,167,390 - -

Credit Risk

The maximum exposure to credit risk at the reporting date is the carrying value of each class of receivables mentioned above. (Refer to note 2 (ab) for more information on the risk managementpolicy of the Consolidated Entity).

(c) Collateral held

Collateral is in the form of registered first mortgages over residential properties in Western Australia purchasedwith the proceeds of loans from Keystart. The parties granting the mortgage must be the same as the Keystartborrowers.

Terms and conditions associated with the use of collateral are such that should a borrower breach the terms andconditions of their mortgage, Keystart has the facility to recover all or part of the outstanding exposure by;

(a) exercising its rights under the mortgage, including the power of sale and (b) exercising any rights available under law.

The collateral held as security for loans that are past due or impaired is in the form of mortgaged residentialproperty.

Consolidated Parent 2016 2015 2016 2015$’000 $’000 $’000 $’000

Fair value of collateral obtained in terms of the exercising of rights under the mortgages 32,460 22,698 - -

Repossessed LoansMortgagee sales are considered as the last resort in relation to continually defaulting borrowers. The executionof the mortgagee sales must comply with the National Consumer Protection Credit Act 2009 and National CreditCode, where appropriate.

Repossessed collateral is sold at best possible market price, with any surpluses being returned to the borrowersconcerned. Any shortfalls are written-off against the provision.

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138



24. Deferred Income Tax asset $’000 $’000 $’000 $’000For Goldmaster Pty Ltd

(a) Components of tax benefit comprises:Current tax (expense)/ benefit - (311) - -Deferred tax (expense)/benefit: - - - -

current year - - - -Previously unrecognised taxable differences - - - -Previously unrecognised tax losses in prior years - - - -Write down of deferred tax - (1,339) - -

- (1,650) - -

(b) Deferred taxDeferred tax relates to the following:Deferred tax assets/ liabilities

Recoginesed tax losses - - - -Provison for impairment of land - - - -Accrued expenses - - - -Interest expense capitalised in inventories - - - -

- - - -

(c) Numerical reconciliation of income tax expense to the prima facie tax payable:

Accountingprofit/(loss) before income tax (3,134) 1,080 - -

Prima facie tax payable on profit/(loss) at 30% (940) 324 - -Add/(less) tax effect of: Current year taxable differences not recognised 77 (13) - -Previously unrecognised taxable differences - - - -Previously unrecognised tax losses - -Write down of deferred tax asset - 1,339Deferred tax benefits not recognised 863 - -Income tax expense/(benefit) - 1,650 - -

The Goldmaster directors have considered the probability of taxable profits arising in the near future is remote and therefore have determined not to recognise any deferred tax assets relating to unused tax losses.

The company estimates it has accumulated income tax losses of $27.797 million (2015 $24.919 million). The benefit of these losses and timing difference will only be obtained if:

The company derives future assessable income of a nature and an amount sufficient to enable the benefitfrom the deductions for the loss to be realised;

The company continues to comply with the conditions for deductibility imposed by law; and

No changes to tax legislation adversely affect the Company in realising the benefit from the deduction for theloss.

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25. Other current assets $000 $000 $000 $000Accrued revenueInterest on cash at bank 1,744 1,657 1,744 1,657Debenture sinking fund interest - - - -Accrued housing sales 7,107 25,187 7,107 25,184Interest Keystart investments - - 17,119 6,808

8,851 26,844 25,970 33,649PrepaymentsInsurance premiums 9 25 9 25Lease rentals 5,703 7,227 5,703 7,227Development proposals 307 731 307 731Joint operations 2,066 269 2,066 269Sales commission - - - -

8,085 8,252 8,085 8,252Total other current assets 16,936 35,096 34,055 41,901

26. Non-current assets classified as held for sale

Opening BalanceRental properties 34,668 233 34,668 233

Assets reclassified as held for saleRental properties 32,437 53,547 32,437 53,547Less impairment 1,145 431 1,145 431

31,292 53,116 31,292 53,116Total assets classified as held for sale

Rental properties 65,960 53,349 65,960 53,349Less assets sold

Rental properties 37,558 18,681 37,558 18,681Closing balance

Rental properties 28,402 34,668 28,402 34,668

These properties are the Housing Authority's New Living and Redevelopment programs properties that form part of therental property class that are marketed and available for immediate sale in accordance with AASB 5. Assets held forsale are held at fair value less selling costs. Information on fair value measurements are provided in Note 34.

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140


27. Other financial assets

CurrentDeposits at call (a) 164,984 200,107 - -Debentures - - - -Total current other financial assets 164,984 200,107 - -

Non - current investmentsEllenbrook Management Pty Ltd Shares (b) 24 24 24 24Goldmaster Enterprises Pty Ltd Shares (b) - - 37,350 37,350Total non - current other financial assets 24 24 37,374 37,374

(a) The fair values of the short term deposits are determined using generally accepted pricing models based ondiscounted cash flow analysis using prices from observable current market transactions.(i) Risk exposure - Information about the Consolidated Entity's exposure to market risk, credit risk and liquidity

risk is provided in note 2 (ab) (ii) Impairment - Financial assets are assessed for indicators of impairment regularly. Financial assets are

impaired where there is objective evidence that as a result of one or more events that occurred after initialrecognition of the financial asset the recoverability of the investment has been impacted.

(b) Interest is held in the following companies:

Dividends Value of Principal Types of received shares at

Name activities shares $000 cost '$0002016 2015

% %Ellenbrook Management Pty Ltd Real estate Ord 47.14 47.14 Nil 24

developmentGoldmaster Enterprises Pty Ltd shares Property Ord 87.18 87.18 Nil 37,350

development

Percentage of eachshare class held

141

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Consolidated Parent 28. Rental properties 2016 2015 2016 2015

Rental properties at fair value $000 $000 $000 $000Improvements 4,821,925 5,806,935 4,821,925 5,806,935Land 7,560,512 7,376,179 7,560,512 7,376,179

12,382,437 13,183,114 12,382,437 13,183,114Less accumulated depreciation 3,370 4,308 3,370 4,308

12,379,067 13,178,806 12,379,067 13,178,806Leasehold improvements at cost 4,482 4,482 4,482 4,482Less accumulated depreciation 723 444 723 444

3,759 4,038 3,759 4,038Vacant land at fair value 118,122 97,427 118,122 97,427Total Rental properties 12,500,948 13,280,271 12,500,948 13,280,271

29. Community Housing properties

Crisis accommodation properties at fair valueImprovements 86,705 83,136 86,705 83,136Land 136,944 141,451 136,944 141,451

223,649 224,587 223,649 224,587Community Housing properties at fair value

Improvements 218,681 243,496 218,681 243,496Land 228,502 243,285 228,502 243,285

447,183 486,781 447,183 486,781Joint charity projects at fair value


175,789 196,318 175,789 196,318Indigenous urban housing at fair value


10,887 10,818 10,887 10,818857,508 918,504 857,508 918,504

Less accumulated depreciation:Crisis accommodation 57 44 57 44Community Housing 266 (325) 266 (325)Joint charity projects 334 476 334 476Indigenous urban housing (107) - (107) -

550 195 550 195Total Community Housing properties 856,958 918,309 856,958 918,309

30. Shared Equity properties

Shared Equity properties at fair valueImprovements 237,998 244,163 237,998 244,163Land 351,835 356,821 351,835 356,821

589,833 600,984 589,833 600,984Less accumulated depreciation: 563 531 563 531Total Shared Equity properties 589,270 600,453 589,270 600,453

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142


Consolidated Parent 31. Other properties 2016 2015 2016 2015

$000 $000 $000 $000Other properties at fair valueOffices


50,838 56,904 50,838 56,904Commercial


15,027 15,980 15,027 15,980Indigenous assets


15,361 14,132 15,361 14,132Joint operations buildings 1,951 1,826 1,951 1,826

83,177 88,842 83,177 88,842Less accumulated depreciation:Offices - 3 - 3Commercial - 10 - 10Indigenous assets 173 241 173 241Joint operations buildings 652 756 652 756

825 1,010 825 1,01082,352 87,832 82,352 87,832

Leasehold improvements at cost 4,823 4,823 4,823 4,823Less accumulated depreciation: 2,881 2,604 2,881 2,604

1,942 2,219 1,942 2,219Vacant land at fair value 28,088 38,357 28,088 38,357Total other properties 112,382 128,408 112,382 128,408

32. Plant and equipment

Plant & equipment at costAir conditioning 2,323 2,329 2,323 2,329Commercial vehicles 113 113 113 113Computing facilities & equipment 19,433 19,486 15,436 15,329Furniture & fittings 2,527 2,478 377 371Office machines & equipment 1,846 2,854 1,747 2,744Joint operations office equipment 158 478 158 478Works of art 46 42 46 42Transportable buildings 1,572 1,572 1,572 1,572Plant & equipment 138 147 121 106

28,156 29,499 21,893 23,084Less accumulated depreciation:Air conditioning 1,385 1,250 1,385 1,250Commercial vehicles 113 113 113 113Computing facilities & equipment 16,914 15,581 13,395 12,546Furniture & fittings 1,486 1,233 319 310Office machines & equipment 1,606 2,421 1,521 2,328Joint operations office equipment 119 119 119 119Transportable buildings 786 472 786 472Plant & equipment 106 126 106 106

22,515 21,315 17,744 17,244Total plant and equipment 5,641 8,184 4,149 5,840

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33. Property, plant and equipment reconciliation

Rental Community Shared Other Plant & Buildings Total Rental Community Shared Other Plant & Buildings TotalProperties Housing Equity Properties Equipment under Properties Housing Equity Properties Equipment under

Properties Properties Construction Properties Properties Construction$000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000

13,280,271 918,309 600,453 128,408 8,184 89,649 15,025,274 Carrying amount at start of period 12,883,168 976,590 584,067 133,943 8,218 165,410 14,751,39640,665 9,041 31,610 520 239 100,090 182,165 Additions 67,601 3,403 26,554 10,782 2,245 87,294 197,87967,663 11,420 - - - (79,083) - Transfers 160,987 8,533 2,763 (9,228) - (163,055) -

(110,282) (48,187) (41,195) (978) (1,582) - (202,224) Disposals (76,168) (29,434) (52,561) - (602) - (158,765)(32,437) - - - - - (32,437) Classified as held for sale (53,547) - - - - - (53,547)(4,180) - - - - - (4,180) Impairment of property ( c) (9,405) - - - - - (9,405)

(621,521) (23,825) 5,417 (14,224) - - (654,153) Revaluation increments(decrements) (a) 427,254 (31,652) 46,317 (5,488) - - 436,431(119,231) (9,800) (7,015) (1,344) (1,200) - (138,590) Depreciation (119,619) (9,131) (6,687) (1,601) (1,677) - (138,715)

12,500,948 856,958 589,270 112,382 5,641 110,656 14,175,855 Carrying amount at end of period 13,280,271 918,309 600,453 128,408 8,184 89,649 15,025,274

Rental Community Shared Other Plant & Buildings Total Rental Community Shared Other Plant & Buildings TotalProperties Housing Equity Properties Equipment under Properties Housing Equity Properties Equipment under

Properties (b) Properties Construction Properties Properties Construction$000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000

13,280,271 918,309 600,453 128,408 5,840 89,649 15,022,930 Carrying amount at start of period 12,883,168 976,590 584,067 133,943 5,284 165,410 14,748,46240,665 9,041 31,610 520 216 100,090 182,142 Additions 67,601 3,403 26,554 10,782 2,206 87,294 197,84067,663 11,420 - - - (79,083) - Transfers 160,987 8,533 2,763 (9,228) - (163,055) -

(110,282) (48,187) (41,195) (978) (1,407) (202,049) Disposals (76,168) (29,434) (52,561) - (602) - (158,765)(32,437) - - - - - (32,437) Classified as held for sale (53,547) - - - - - (53,547)(4,180) - - - - - (4,180) Impairment of property ( c) (9,405) - - - - - (9,405)

(621,521) (23,825) 5,417 (14,224) - - (654,153) Revaluation increments(decrements) (a) 427,254 (31,652) 46,317 (5,488) - - 436,431(119,231) (9,800) (7,015) (1,344) (500) - (137,890) Depreciation (119,619) (9,131) (6,687) (1,601) (1,048) - (138,086)

12,500,948 856,958 589,270 112,382 4,149 110,656 14,174,363 Carrying amount at end of period 13,280,271 918,309 600,453 128,408 5,840 89,649 15,022,930

Depreciation includes adjustments on disposal of assets in addition to the depreciation expense for the year.

(a) Independent valuations of land and buildings are provided annually by the Western Australian Land Information Authority (Valuation Services) and recognised with sufficient regularity to ensure thatthe carrying amount does not differ materially from the asset's fair value at the end of the reporting period.Information on fair value measurements is provided in Note 34

(b) Community Housing Properties disposals include the transfer of properties to community housing organisations. totalling $22.35 million ( 2015:$7.63 million ), see note 20.

(c) Recognised in the Statement of Comprehensive Income. Where an asset measured at cost is written-down to recoverable amount, an impairment loss is recognised in profit or loss. Where apreviously revalued asset is written down to recoverable amount, the loss is recognised as a revaluation decrement in other comprehensive income.

2016 2015PARENT

2016 2015CONSOLIDATED


144


34. Fair value measurements

Assets measured at fair value: Level 1 Level 2 Level 3 Fair valueat the endof period

2016 $'000 $'000 $'000 $'000Non-current assets classified as held for sale (Note 26) - 28,402 - 28,402Land (Note 28, 29, 30 and 31) - 8,496,307 - 8,496,307Buildings and improvements (Note 28, 29, 30 and 31) - 5,557,550 - 5,557,550

- 14,082,259 - 14,082,259

2015 $'000 $'000 $'000 $'000Non-current assets classified as held for sale (Note 26) - 34,668 - 34,668Land (Note 28, 29, 30 and 31) - 8,332,859 - 8,332,859Buildings and improvements (Note 28, 29, 30 and 31) - 6,588,325 - 6,588,325

- 14,955,852 - 14,955,852

There were no transfers between Levels 1, 2 and 3 during the current and previous periods.

Valuation techniques to derive Level 2 fair valuesLevel 2 fair values of non-current assets held for sale, Land and Buildings are derived using the market approach. Market evidence of sales prices of comparable land and buildings in close proximity is used to determine price persquare metre.Non-current assets held for sale have been written down to fair value less costs to sell. Fair value has beendetermined by reference to market evidence of sales prices of comparable assets.

Valuation processes

There were no changes in valuation techniques during the period.

Fair value for restricted use land is based on market value, by either using market evidence of sales of comparableland that is unrestricted less restoration costs to return the site to a vacant and marketable condition (lowrestricted use land) or, comparison with market evidence for land with low level utility (high restricted use land).


35. Intangible assets $000 $000 $000 $000

Computing software at cost 9,715 9,558 5,720 6,662Less accumulated amortisation 5,623 4,282 3,413 2,568

4,092 5,276 2,307 4,094Computing development at cost 52,302 36,526 52,302 36,526Less accumulated amortisation 15,921 8,347 15,921 8,347

36,381 28,179 36,381 28,179Borrowing costs - 777 - -Less accumulated amortisation - 777 - -

- - - -Total intangible assets 40,473 33,455 38,688 32,273

Intangible assets reconciliationCarrying amount at start of period 33,455 24,588 32,273 22,196Additions 15,925 19,576 14,834 18,496Transfers - -Disposals - 4,244 - 3,108Amortisation expense (8,907) (6,465) (8,419) (5,311)Carrying amount at end of period 40,473 33,455 38,688 32,273

Assets with a value of $17.192 million relating to the development of the Axiom project are not yetavailable for use. Once development is finalised and the system is in production, these assets will begin to beamortised.

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Consolidated Parent 36 Payables 2016 2015 2016 2015

$000 $000 $000 $000CurrentContractors retention monies 9,584 11,072 9,584 11,072Joint operations creditors 10,792 13,794 10,792 13,794Rental properties water consumption - 3,389 - 3,389Rental tenants bonds 12,029 15,189 12,029 15,189Trade creditors 11,053 57,583 10,863 57,243Total current payables 43,458 101,027 43,268 100,687

Also included in trade creditors are the unspent funds associated with the Indian Ocean Territories (IOT)service delivery arrangements as per the following:

2016 2015

Amounts carried forward from previous financial year. 30,673 61,381Payments made by the Commonwealth for IOT services. 27,500 -Cost of services. 27,868 30,708Construction paid - -Amounts carried forward to following financial year. 30,305 30,673

Due to the short term nature of these payables, their carrying value is assumed to approximate their fair value.

Non - currentJoint operations creditors 554 554 554 554Total non-current payables 554 554 554 554

37 Borrowings

CurrentWA Treasury Corporation 63,282 321,878 63,282 321,878Commonwealth advances 15,850 15,525 15,850 15,525St George Bank - - - -

Total current borrowings 79,132 337,403 79,132 337,403Non - current

WA Treasury Corporation 4,896,855 4,509,219 4,896,855 4,509,219Commercial loan 62,276 62,276 62,276 62,276Commonwealth advances 376,120 391,970 376,120 391,970

Total non-current borrowings 5,335,251 4,963,465 5,335,251 4,963,465Total borrowings 5,414,383 5,300,868 5,414,383 5,300,868

The fair values for WATC borrowings have been calculated by Western Australian Treasury Corporation, based onmarket valuations. The State Nominated and Commonwealth advances have been calculated using a discount rateof 1.87% which is the Commonwealth bond rate. (June 2015 2.89%).

Commercial loan is a $62.276 million liability payable to Westpac. The liability is for construction costs for the Osprey Key Workers Village project.

Consolidated Total carrying amount Aggregate Net FairValue

2016 2015 2016 2015$000 $000 $000 $000

Borrowings - WATC 4,960,137 4,831,097 4,979,481 4,852,128Commercial Loan 62,276 62,276 81,722 73,687Borrowings - Commonwealth advances 391,970 407,495 563,220 489,909St George Bank 1,300 1,300 - -

5,415,683 5,302,168 5,624,423 5,415,724

Parent Total carrying amount Aggregate Net FairValue

2016 2015 2016 2015$000 $000 $000 $000

Borrowings - WATC 4,960,137 4,831,097 4,979,481 4,852,128Commercial loan 62,276 62,276 81,722 73,687Borrowings - Commonwealth advances 391,970 407,495 563,220 489,909

5,414,383 5,300,868 5,624,423 5,415,724

Borrowings - WATC are variable rate borrowings and repayable when due. Fixed rate borrowings are subject tointerest payments only with the full loan being due on maturity. Borrowings - Commonwealth Advances are fixed rate borrowings and repayable on an annual basis withfinal instalments being due between July 2014 and June 2042.Commercial loan is with Westpac and is a interest only variable rate borrowing repayable in full by June 2029.

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Consolidated Parent 38 Provisions 2016 2015 2016 2015

$000 $000 $000 $000CurrentEmployee benefits provisionAnnual leave (a) 15,552 15,721 15,552 15,721Long service leave (b) 17,606 17,076 17,606 17,076Superannuation (d) 19,772 21,748 19,772 21,748Purchased leave (e) 165 - 165 -

53,095 54,545 53,095 54,545Other provisionsEmployment on-costs (c ) 2,067 2,302 2,067 2,302Joint operations provisions 2,553 1,600 2,553 1,600Total current provisions 57,715 58,447 57,715 58,447

Non - CurrentEmployee benefits provisionLong service leave (b) 8,326 7,919 8,326 7,919

8,326 7,919 8,326 7,919Other provisionsEmployment on-costs (c ) 594 554 594 554Development levies (note 2s(ii)) 3,355 3,791 3,355 3,791Total non-current provisions 12,275 12,264 12,275 12,264

(a) Annual leave liabilities have been classified as current as there is no unconditional right to defer settlement forat least 12 months after the reporting period. Assessments indicate that actual settlements of the liabilities isexpected to occur as follows:

Within 12 months of the end of the reporting period 9,975 9,930 9,975 9,930More than 12 months after the end of the reporting period 5,576 5,791 5,576 5,791

15,551 15,721 15,551 15,721

(b) Long service liabilities have been classified as current where there is no unconditional right to defer settlementfor at least 12 months after the end of the reporting period. Assessments indicate that actual settlements ofthe liabilities is occur as follows:

Within 12 months of the end of the reporting period 6,321 6,353 6,321 6,353More than 12 months after the end of the reporting period 19,611 18,641 19,611 18,641

25,932 24,994 25,932 24,994

(c ) The settlement of annual and long service leave liabilities gives rise to the payment of employment on-costsincluding workers’ compensation insurance. The provision is the present value of expected future payments.The associated expense, apart from the unwinding of the discount(finance cost), is included at note 20 ‘Otherexpenses’.

(d ) Defined benefit superannuation plansThe superannuation liability has been established from data supplied by the Government EmployeesSuperannuation Board.

(e) Purchased leaveThe provision for purchased leave relates to Housing Authority employees who have entered into an agreement to self-fund up to an additional 10 weeks leave per calendar year. The provision recognises the value of salary setaside for employees and is measured at the undiscounted amounts expected to be paid when the liabilities are settled.

Movements in the present value of the defined benefit obligations in the reporting period were asfollows:

Pension Scheme Pre-transfer benefit -Gold State scheme

2016 2015 2016 2015$000 $000 $000 $000

Liability at start of period 17,788 17,798 3,960 4,745Included in surplus/(deficit)Current service cost Past service cost - - - -Interest cost 461 620 101 162

461 620 101 162

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38 Provisions (continued) Pension Scheme Pre-transfer benefit -Gold State scheme

2016 2015 2016 2015Included in Other Comprehensive Income: $000 $000 $000 $000Remeasurement loss/(gain) recognised:-Actuarial (gains)/loss arising from:demographic assumptions 13 - (2) -financial assumptions 636 1,266 69 173experience adjustments (616) 67 (56) 17

33 1,333 11 190

Benefits paid (1,788) (1,963) (794) (1,137)(1,788) (1,963) (794) (1,137)

Liability at end of period 16,494 17,788 3,278 3,960

Fair value of Scheme assetsThe Authority holds no assets in Gold State Super for current employees to support the transferred benefits. Hencethere are no fair value and no asset allocation of scheme assets, no financial instruments issued by the employer,no assets used by the employer and no asset-liability matching strategies

Significant actuarial assumptions at the reporting date;

Assumptions to determine start of the year defined benefit obligation and 2016 2015defined benefit cost for the current year.Discount rate 2.74% 3.69%Future salary increases 4.00% 5.00%Future pension increases 2.50% 2.50%

Assumptions to determine defined benefit obligation at the valuation date.Discount rate 2.26% 2.74%Future salary increases 3.50% 4.00%Future pension increases 2.50% 2.50%

At 30 June 2016, the weighted-average duration of the defined benefit obligation was:Pension Scheme 8.5 years; Gold State Scheme 4.6 yearsThe Pension Scheme and the pre-transfer benefit for the GSS expose the Authority to actuarial risks, such assalary risk and interest rate risk. The sensitivity analyses below have been determined based onreasonably possible changes of the respective assumptions occurring at the end of the reporting period,holding all other assumptions constant

Sensitivity analysisDefined benefit obligation

Base case -0.5% +0.5%Gold State scheme $000 $000 $000Discount rate (0.5% movement) 3,278 3,354 3,206Future salary growth (0.5% movement) 3,278 3,278 3,278

Pension schemeDiscount rate (0.5% movement) 16,494 17,211 15,832Future pension growth (0.5% movement) 16,494 15,830 17,206

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38 Provisions (continued)

Employer funding arrangements for the defined benefit plans(i) The Pension Scheme and the pre-transfer benefit for the GSS in respect of individual plan participants are settledby the Authority on their retirement. Funding requirements are based on invoices provided to the Authority by GESBthat represent the cost of benefits paid to members during the reporting period.(ii) Employer contributions of $1,713,000 (2015: $1,919,000) are expected to be paid to the Pension Scheme in thesubsequent annual reporting period.(iii) Employer contributions of $623,000 (2015: $568,000) are expected to be paid to the Gold State SuperannuationScheme in the subsequent annual reporting period.

Consolidated Parent 2016 2015 2016 2015$000 $000 $000 $000

Movements in other provisionsEmployment on-costs 2,661 2,856 2,661 2,856

Carrying amount at start of period 2,856 2,386 2,856 2,386Additional provisions recognised 8,164 9,024 8,164 9,024Payments (8,359) (8,554) (8,359) (8,554)Carrying amount at end of period 2,661 2,856 2,661 2,856

Development levies 3,355 3,791 3,355 3,791Carrying amount at start of period 3,791 3,283 3,791 3,283Additional provisions recognised 1,048 1,541 1,048 1,541Payments (1,484) (1,033) (1,484) (1,033)Carrying amount at end of period 3,355 3,791 3,355 3,791

Joint operations provisions 2,553 1,600 2,553 1,600Carrying amount at start of period 1,600 6,419 1,600 6,419Additional provisions recognised 953 2,113 953 2,113Payments - (6,932) - (6,932)Carrying amount at end of period 2,553 1,600 2,553 1,600

39 Other liabilities

CurrentAccrued expenses:Administrative & general expenses 9,708 21,384 4,664 16,183

9,708 21,384 4,664 16,183Joint operations liabilities 9,306 2,028 9,306 2,028Unearned income 9,111 8,715 9,111 8,715Total current other liabilities 28,125 32,127 23,081 26,926

40 Contributed equity

The Western Australian Government holds the equity interest in the Authority on behalf of the community. Equityrepresents the residual interest in the net assets of the Authority. The asset revaluation surplus represents thatportion of equity resulting from the revaluation of non-current assets.

Balance at start of period 2,239,906 2,194,201 2,239,906 2,194,201

Contributions by ownersCapital contributions 64,370 3,360 64,370 3,360

Other contributions by ownerRoyalties for Regions Fund - Regional Infrastructure and 49,759 51,246 49,759 51,246

Headworks AccountTransfer of net assets from other agencies

Department of Lands - - - -Department of Training & Workforce Development - - -

Total contributions by owners 114,129 54,606 114,129 54,606

Transfer of net assets to other agenciesWA Health - (8,901) - (8,901)Horizon Power (4,550) - (4,550) -Keystart - (14,180)

Total distributions to owners (4,550) (8,901) (18,730) (8,901)

Balance at end of period 2,349,485 2,239,906 2,335,305 2,239,906

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41 Reserves $000 $000 $000 $000

(i) Asset revaluation reserveBalance brought forward from prior period 10,018,015 9,651,548 10,018,015 9,651,548Transferred to retained earnings (119,751) (81,333) (119,751) (81,333)Revaluations during the period (651,494) 457,205 (651,494) 457,205Impairment loss on Rental Properties (4,180) (9,405) (4,180) (9,405)Closing balance 9,242,590 10,018,015 9,242,590 10,018,015

Revaluations recognised during the year were in respect of:Rental properties - current (467,097) 431,251 (467,097) 431,251Community Housing properties - current (23,941) (31,652) (23,941) (31,652)Shared Equity properties - current 5,361 46,322 5,361 46,322Other properties - current (4,538) (1,231) (4,538) (1,231)Land transferred to Rental properties (165,459) 3,110 (165,459) 3,110

(655,674) 447,800 (655,674) 447,800 Transferred to retained earnings

Revaluation amount of rental properties - sold (84,560) (55,512) (84,560) (55,512)Revaluation amount of rental properties - demolished (13,586) (12,179) (13,586) (12,179)Revaluation amount of Community Housing properties - sold (8,366) (2,306) (8,366) (2,306)Revaluation amount of other properties - sold - - - -Revaluation amount of Shared Equity properties - sold (13,239) (11,336) (13,239) (11,336)

(119,751) (81,333) (119,751) (81,333)

The asset revaluation reserve is used to record increments and decrements on the revaluation of non-current assets, as described in accounting policy note 2(f).

(ii) Interest Assistance Lowstart reserveBalance brought forward from prior year 733 740 - -Transfer to retained profits (5) (7) - -Closing balance 728 733 - -

Total reserves 9,243,318 10,018,748 9,242,590 10,018,015

42 Retained earnings

Balance at start of period 3,040,286 2,985,741 2,863,040 2,736,102Correction of prior period error - - - 71,996

3,040,286 2,985,741 2,863,040 2,808,098Transfer from asset revaluation reserve upon disposal 119,751 81,333 119,751 81,333Transfer from Interest Assistance Lowstart reserve 5 7 - -Movement in equity attributable to Consolidated Entity - (3,897) - -Net profit/(loss) for the year (20,881) (22,898) (18,150) (26,391)Total retained earnings 3,139,161 3,040,286 2,964,641 2,863,040

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Consolidated Parent 43 Notes to the Statement of Cash Flows 2016 2015 2016 2015

$000 $000 $000 $000Reconciliation of cash

Cash at the end of the year is shown in the Statement of Cash Flow as:

Cash at bank - operational 211,032 178,368 177,126 131,027Deposits at call 164,984 200,107 - -Rental tenants bonds 12,029 15,189 12,029 15,189Unspent Municipal and Essential Services funds 62,789 - 62,789 -Joint operations cash 29,828 31,590 29,828 31,590Remote indigenous communities 3,106 3,950 3,106 3,950Royalties for Regions Fund 48,178 42,885 48,178 42,885

531,946 472,089 333,056 224,641

Reconciliation of cash flows from operations with profit for the period

Net Profit (21,239) (21,448) (18,106) (24,868)Non - cash items:Depreciation & amortisation expense 149,533 146,487 148,406 145,288Doubtful debts expense 13,027 6,979 7,595 6,979Loss on disposal of non-current assets 27,119 19,611 27,119 16,100Cash items:Grants & subsidies from government (105,448) (90,730) (105,448) (90,730)(Increase)/decrease in assets:Receivables (26,138) 94,836 (26,137) 75,706Inventories (68,164) (140,667) (71,446) (164,208)Other assets (12,165) 4,314 (12,061) (476)Deferred tax assets 1,650 - -Decrease in Investments in associates - - - -Increase/(decrease) in liabilities:Provisions (23,793) (24,908) (25,831) (24,908)Payables 90,454 38,459 84,351 76,472Net GST payments 4,905 (28,487) 5,020 (27,531)Net cash flows provided by (used in) operating activities 28,091 6,096 13,462 (12,176)

44 Purchase of non-current physical assets

Buildings under construction 94,484 118,733 94,484 118,733Computing facilities & equipment 16,296 17,044 14,970 16,489Office machines & equipment 145 324 102 199Transportable building - - - -Properties 41,577 38,253 41,577 38,253Total purchase of non-current physical assets 152,502 174,354 151,133 173,674

45 Remuneration of the accountable authority and senior officers

Remuneration of members of the accountable authorityThe number of members of the accountable authority whose total of fees, salaries, superannuation, non-monetarybenefits and other benefits for the financial year, falls within the following bands:

2016 2015$60,001 - $70,000 - 1$150,001 - $160,000 1 -$490,001 - $500,000 - 1$550,001 - $560,000 1 -

$000 $000

Base remuneration and superannuation 580 502Annual leave & long service leave accruals 116 42Other benefits 20 20Total remuneration of the member of the accountable authority 716 564

The total remuneration includes the superannuation expense incurred by the Housing Authority in respect of members of the accountable authority. There are no members of the accountable authority who are currently members of the Pension Scheme.

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45 Remuneration of the accountable authority and senior officers (Continued)

Remuneration of senior officersThe number of senior officers other than senior officers reported as members of the accountable authority, whosetotal of fees, salaries, superannuation, non-monetary benefits and other benefits for the financial year fall within thefollowing bands:

2016 2015$ 40,001 - $50,000 1 -$ 50,001 - $60,000 1 2$ 70,001 - $80,000 1 -$ 80,001 - $90,000 - 1$ 90,001 - $100,000 1 1$140,001 - $150,000 1 -$170,001 - $180,000 - 1$190,001 - $200,000 - 2$200,001 - $210,000 1 -$210,001 - $220,000 - 1$230,001 - $240,000 2 1

$000 $000

Base remuneration and superannuation 1,104 1,260Annual leave & long service leave accruals (31) 14Other benefits 27 33The total remuneration of senior officers 1,100 1,307

The total remuneration includes the superannuation expense incurred by the Authority in respect of senior officersreported as members of the accountable authority. The increase is due to the greater number of senior officers acting in higher positions compared to previous years.There are no senior officers presently employed who are currently members of the Pension Scheme.

Consolidated Parent 46 Remuneration of auditor 2016 2015 2016 2015

$000 $000 $000 $000Remuneration paid or payable to the Auditor General in respect ofthe audit for the current financial year is as follows:

Auditing the accounts, controls, financial statements and key 473 434 317 310performance indicators.

473 434 317 310

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Consolidated Parent 47 Commitments for expenditure 2016 2015 2016 2015

$000 $000 $000 $000At June 30 2016 the expenditure commitments being contracted capital expenditure additional to the amountsreported in the financial statements, are payable as follows:

(a) Capital expenditure commitmentsCapital expenditure commitments, being contracted capital expenditure additional to the amounts reported in the financial statements, are payable as follows:Within 1 year 213,772 252,126 213,772 252,126Later than 1 year & not later than 5 years 2,207 2,118 2,207 2,118Later than 5 years - - - -

215,979 254,244 215,979 254,244The capital commitments include amounts for the following:Dwelling construction & upgrades 107,914 64,667 107,914 64,667Land development and redevelopment 8,225 15,698 8,225 15,698Crisis accommodation program 4,038 11,586 4,038 11,586Joint operations land development 8,092 12,743 8,092 12,743New living - 137 - 137Local Government & Community Housing programs 10 27 10 27Commitments in Goldmaster - - - -Affordable Housing 87,700 149,386 87,700 149,386

215,979 254,244 215,979 254,244(b) Loan advance commitment

Approved loans not yet fully disbursed 208,412 435,197 - -208,412 435,197 - -

Loan advance commitment includes the following:Loans to Home Buyers 208,412 435,197 - -

208,412 435,197 - -

Capital expenditure commitments decreased by $38.265 million from the previous year.

Committed carryover for Construction of Houses increased from the previous year due to a significant number of unitsbeing commenced in 2015-16 as a result of new funding being made available under the Social Housing Investment Package, with the majority of expenditure to occur in 2016-17.

There has been a reduction in the committed carryover for GROH due to a lower number of commencements in2015-16 compared to 2014-15. Committed carryover for Key Worker Housing has increased due to projects forExmouth Service Worker Housing and NGO Stage 2 Strategic Intervention, which commenced later in this financial year to be expended in 2016-17.

Capital commitments for Remote Village Construction has increased due to the delays in the construction phase a Essential services contract which contributes to a majority of the outstanding capital commitments.

Capital commitments for Land Development and Redevelopment has decreased due to slow market activity which is impacting sales performance across the Authority's projects. This has deferred the commencement of projects for new developments in some locations.

Committed carryover for Crisis Accommodation has decreased as there were no new commencements in 2015-16 togetherwith a majority of the contracts commenced in the previous financial year have been completed.

Committed carry over for Joint Venture development is lower in comparison to the prior year due to reduced lot production activity in the current market conditions which has resulted in the amount of commitment carried forward. Projects are still progressing in Brookdale, Oyster Harbour and Ellenbrook.

New Living development commitments has decreased due the current market conditions in South with all future projects being deferred.

Community Housing capital commitments have decreased from the previous year. Housing Authority, in collaboration with the Community Housing sector will continue to provide and sustain social housing in the State.

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47 Commitments for expenditure (continued)

Committed carryover for the Affordable Housing Program decreased to $87.7 million due to significantly lower number of contracts in 2015-16 than originally forecasted together with the construction phase of Public Housing Stock Redevelopment project completing within the year.

Loans to homebuyers committed carryover has decreased by $226.78 million due to lower approval levels for FirstHomebuyers combined with faster construction timeframes which has accelerated the drawdown period.

Consolidated Parent (c) Non cancellable operating lease commitments 2016 2015 2016 2015

$000 $000 $000 $000Commitments in relation to leases contracted for at the end of the reporting period but not recognised in the financialstatements as liabilities are payable as follows:Rental property leases:Lease commitments on non cancellable operating leases are:Within 1 year 40,692 58,001 40,692 58,001Later than 1 year & not later than 5 years 22,297 44,855 22,297 44,855Later than 5 years 1,885 348 1,885 348

64,874 103,204 64,874 103,204Motor vehicle leases:Lease commitments on non cancellable operating leases are:Within 1 year 833 841 833 841Later than 1 year & not later than 5 years 928 592 928 592

1,761 1,433 1,761 1,433Office property leases:Lease commitments on non cancellable operating leases are:Within 1 year 4,462 5,097 3,616 4,286Later than 1 year & not later than 5 years 2,416 5,814 2,333 4,973Later than 5 years - 136 - 136

6,878 11,047 5,949 9,39548 Contingent liabilities

Contaminated sitesUnder the Contaminated Sites Act 2003, the Housing Authority is required to report known and suspected contaminated sites to the Department of Environment and Conservation (DEC). In accordance with the Act, DEC classifiesthese sites on the basis of the risk to human health, the environment and environmental values. Where sites are classified as contaminated - remediation required or possibly contaminated – investigation required, the Housing Authority may have a liability in respect of investigation or remediation expenses. There are three sites that havebeen identified as 'Contaminated - Remediation Required'.

The Housing Authority have identified seven other suspected contaminated sites of which five sites had been listed as requiring further investigations and two other sites awaiting classification. The Authority is unable to assess the likely outcome of the classification process, and accordingly, it is not practicableto estimate the potential financial effect or to identify the uncertainties relating to the amount or timing of anyoutflows.Whilst there is no possibility of reimbursement of any future expenses that may be incurred in the remediation ofthese sites, the Housing Authority may apply for funding from the Contaminated Sites Management Account toundertake further investigative work or to meet remediation costs that may be required.

Litigation in progressThe Housing Authority has been joined in legal actions involving asbestos related illness. The estimated value ofthese claims against the Housing Authority is $300,000 (2015: $950,000). In addition, the estimated value of other legal claims against the Authority is $10,000 (2015: Nil). Liability is being denied and any legal claim will be defended.

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49 Supplementary financial information

(a) Write offs.Bad Debts written off by the Accountable Authority in the year ended 30 June 2016 totalled $7,349,237(2015: $6,575,783)Bad Debts recovered during the year ended 30 June 2016 totalled $848,488 (2015: $764,530)

(b) Losses to the Housing Authority through thefts, defaults or other causes:Cashier shortage incurred for the year ended 30 June 2016 was nil. (2015: nil).Reportable thefts in the year ended 30 June 2016 was $4,259 (2015: $50).Amounts recovered during the year ended 30 June 2016 was nil (2015: nil)

(c) Gifts of public propertyIn the year ended 30 June 2016 the Housing Authority made no gifts of public property.

50. Non - controlling interestsGoldmaster

2016 2015 2016 2015$000 $000 $000 $000

Opening Equity for non-controlling interest 2,144 (928) - -Non-controlling profit ending 30 June (402) (73) - -Movement in equity attributable to Contributed Equity - 3,897 - -Other changes to non-controlling interest - (752) - -Total non-controlling interest 1,742 2,144 - -

51 Related partiesKeystart, a fully owned subsidiary is financed by the Housing Authority. The Housing Authority purchasespreferential shares from Keystart at rates and conditions that mirror the loans that the Housing Authority obtains fromthe Western Australian Treasury Corporation. The following transactions/balances are eliminated on the consolidation of Keystart:

Note 2016 2015$000 $000

Preferential shares 23 4,290,000 4,115,000Interest revenue 10 105,389 104,554Dividend 11 87,432 83,280Other current assets 25 17,119 6,807Recovery of salaries 15 - 159Other expenses 20 - 3,996Distribution of equity 40 14,180 -

Goldmaster, a controlled subsidiary entity is financed by the Housing Authority. The Housing Authority has providedthree loans to Goldmaster for the development of property in Cockburn. One loan has been fully paid in 2014/15.The following transactions/balances are eliminated on the consolidation of Goldmaster:

Note 2016 2015$000 $000

Interest revenue 10 624 992Other financial assets 27 37,350 37,750Loans and receivables 23 11,267 15,003Other current assets 25 - -

52. Events occurring after the end of the reporting period

The Housing Authority had no adjusting or non-adjusting events after the end of the reporting period.At 30 June 2016 Keystart was progressing with the potential sale by equitable assignment of a portionof the loans to homebuyers. The transaction is expected to complete in September 2016 and therefore hasno effect on the financial statements.

Consolidated Parent

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53. Financial instrument disclosures

Financial instruments held by the Consolidated Entity are cash and cash equivalents, other financial assets, loansto homebuyers, loans to commercial organisations, loans to local and statutory parties, State Nominatedborrowings, WATC borrowings, Commonwealth Advances, rental deposits and tenant bonds.

The carrying amounts of each of the following categories of financial assets and financial liabilities at the balancesheet date are as follows:

Consolidated Parent 2016 2015 2016 2015$000 $000 $000 $000

(i) Financial AssetsCash and cash equivalents 211,032 178,368 177,126 131,027Restricted cash and cash equivalents 155,930 93,614 155,930 93,614Other financial assets - deposits at call 164,984 200,107 - - - debentures - - - - - other assets 24 24 37,374 37,374Receivables (a)

- Keystart preference shares - - 4,290,000 4,115,000 - general 16,135 3,509 15,423 8,205 - land debtors 27,219 19,562 27,219 19,562 - rent from tenants and other 41,401 37,048 41,401 37,048 - rental and lease bonds 27,134 21,370 27,134 21,370 - loans to homebuyers 4,412,922 4,161,907 - - - loans to commercial organisations - - 11,267 9,695 - dividends receivable - - 87,432 83,281Other current assets 8,851 26,844 25,970 33,649Total financial assets 5,065,632 4,742,353 4,896,276 4,589,825

(ii) Financial LiabilitiesBorrowings - WATC 4,960,137 4,818,921 4,960,137 4,818,921 - Commercial loan 62,276 62,276 62,276 62,276 - Commonwealth advances 391,970 407,495 391,970 407,495Payables- general 31,982 83,003 31,793 82,663- rental deposits and tenant bonds 12,029 15,189 12,029 15,189- rental property water consumption - 3,389 - 3,389Other current liabilities 19,014 21,384 13,970 16,183Total financial liabilities 5,477,408 5,411,657 5,472,175 5,406,116

(a) The amount of loans and receivables excludes GST recoverable from the Australian Taxation Office (statutory receivable).

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53. Financial instrument disclosures (continued )

Interest Rate RiskThe following table represents a summary of the interest rate sensitivity of the Consolidated Entity's financialassets and liabilities at the end of the reporting period on the profit for the period and equity for a 1% change ininterest rates. It is assumed that the change in interest rates is held constant throughout the reporting period.The Consolidated Entity's exposure to market interest rates relates primarily to the Consolidated Entity's long termdebt obligations.

CONSOLIDATED-1% +1%

Carryingamount Profit Equity Profit Equity

2016 $000 $000 $000 $000 $000(i) Financial AssetsCash and cash equivalents 211,032 (2,110) (2,110) 2,110 2,110

Restricted cash and cash equivalents 155,930 (1,559) (1,559) 1,559 1,559Deposits at call 164,984 (1,650) (1,650) 1,650 1,650Loans to homebuyers 4,412,922 (44,129) (44,129) 44,129 44,129

(ii) Financial LiabilitiesBorrowings - WATC floating 4,454,694 44,547 44,547 (44,547) (44,547) - WATC fixed * 505,443 - - - - - Commercial loan 62,276 623 623 (623) (623) - Commonwealth advances * 391,970 - - - -Total Increase/(Decrease) (4,278) (4,278) 4,278 4,278

-1% +1%Carryingamount Profit Equity Profit Equity


Restricted cash and cash equivalents 93,614 (936) (936) 936 936Deposits at call 200,107 (2,001) (2,001) 2,001 2,001

Loans to homebuyers 4,161,907 (41,619) (41,619) 41,619 41,619 Loans to commercial organisations - - - - -

(ii) Financial LiabilitiesBorrowings - WATC floating 4,523,760 45,238 45,238 (45,238) (45,238) - WATC fixed * 295,161 - - - - - Commercial loan 62,276 623 623 (623) (623) - Commonwealth advances * 407,495 - - - -Total Increase/(Decrease) (479) (479) 479 479

* Commonwealth Advances and WATC (fixed) are fixed interest loans that are not affected by interest rates.

Interest rate risk

Interest rate risk

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PARENT-1% +1%

Carryingamount Profit Equity Profit Equity


Restricted cash and cash equivalents 155,930 (1,559) (1,559) 1,559 1,559Debentures - - - - -Keystart preference shares 4,290,000 (42,900) (42,900) 42,900 42,900

Loans to commercial organisations 11,267 (113) (113) 113 113

(ii) Financial LiabilitiesBorrowings - WATC floating 4,454,694 44,547 44,547 (44,547) (44,547) - WATC fixed * 505,443 - - - - - Commercial loan 62,276 623 623 (623) (623) - Commonwealth advances * 391,970 - - - -Total Increase/(Decrease) (1,173) (1,173) 1,173 1,173

-1% +1%Carryingamount Profit Equity Profit Equity


Restricted cash and cash equivalents 93,614 (936) (936) 936 936Debentures - - - - -Keystart preference shares 4,115,000 (41,150) (41,150) 41,150 41,150

Loans to commercial organisations 9,695 (97) (97) 97 97

(ii) Financial LiabilitiesBorrowings - WATC floating 4,523,760 45,238 45,238 (45,238) (45,238) - WATC fixed * 295,161 - - - - - Commercial loan 62,276 623 623 (623) (623) - Commonwealth advances * 407,495 - - - -Total Increase/(Decrease) 2,368 2,368 (2,368) (2,368)

* Commonwealth Advances and WATC (fixed) are fixed interest loans that are not affected by interest rates.

Interest rate risk

Interest rate risk

Housing

Authority A



158


53. Financial instrument disclosures (continued)

Credit Risk

CONSOLIDATED

More than More than

Not past due 3 months 6 months ImpairedCarrying and not Not more less than less than More than financialAmount impaired than 3 months 6 months 1 year 1 year assets

$000 $000 $000 $000 $000 $000 $000

2016

Cash and cash equivalents 211,032 211,032 - - - - -Restricted cash and cash equivalents 155,930 155,930 - - - - -Other financial assets - deposits at call 164,984 164,984 - - - - - - other assets 24 24 - - - - -Receivables * - general 16,135 15,294 626 16 18 181 - - land debtors 27,219 26,803 - - - 416 - - rent from tenants and other 41,401 25,824 6,436 6,000 6,299 (3,158) - - rental lease bonds 27,134 22,715 554 664 1,164 2,037 - - loans to homebuyers 4,412,922 4,198,413 214,509 - - - - - dividends receivable - - - - - - -Other current assets 8,851 8,851 - - - - -Total financial assets 5,065,632 4,829,870 222,125 6,680 7,481 (524) -

2015

Cash and cash equivalents 178,368 178,368 - - - - -Restricted cash and cash equivalents 93,614 93,614 - - - - -Other financial assets - debentures 200,107 200,107 - - - - - - deposits at call 24 24 - - - - - - other assets - - - - -Receivables * - general 3,509 2,896 305 99 179 30 - - land debtors 19,562 18,630 - - - 932 - - rent from tenants and other 37,048 4,322 12,111 4,769 7,463 8,383 498 - rental lease bonds 21,370 18,386 867 915 1,521 (319) 108 - loans to homebuyers 4,161,907 3,978,972 182,935 - - - - loans to commercial organisations - - - - - - - - loans to local and statutory organisations - - - - - - -Other current assets 26,844 26,844 - - - - -Total financial assets 4,742,353 4,522,163 196,218 5,783 9,163 9,026 606

* Ageing of past due but not impaired values are inclusive of allowance for impairment. These provisions are netted against past due items greater than 1 year.

Ageing analysis of financial assets

Past due but not impaired

159



53. Financial instrument disclosures (continued)

Credit Risk

PARENT

More than More than Not past due 3 months 6 months Impaired

Carrying and not Not more less than 6 less than More than financialAmount impaired than 3 months months 1 year 1 year assets

$000 $000 $000 $000 $000 $000 $000

2016

Cash and cash equivalents 177,126 177,126 - - - - -Restricted cash and cash equivalents 155,930 155,930 - - - - -Other financial assets - debentures - - - - - - - - shares in Goldmaster Enterprises Pty Ltd 37,350 37,350 - - - - - - other assets 24 24 - - - - -Receivables * - general 15,423 14,582 626 16 18 181 - - land debtors 27,219 26,803 - - - 416 - - rent from tenants and other 41,401 25,824 6,436 6,000 6,299 (3,158) - - rental lease bonds 27,134 22,715 554 664 1,164 2,037 - - loans to homebuyers - - - - - - - - loans to commercial organisations 11,267 11,267 - - - - - - Keystart preference shares 4,290,000 4,290,000 - - - - - - dividends receivable 87,432 87,432 - - - - -Other current assets 25,970 25,970 - - - - -Total financial assets 4,896,276 4,875,023 7,616 6,680 7,481 (524) -

2015

Cash and cash equivalents 131,027 131,027 - - - - -Restricted cash and cash equivalents 93,614 93,614 - - - - -Other financial assets - debentures - - - - - - - - shares in Goldmaster Enterprises Pty Ltd 37,350 37,350 - other assets 24 24 - - - - -Receivables * - general 8,205 7,592 305 99 179 30 - - land debtors 19,562 18,630 - - - 932 - - rent from tenants and other 37,048 4,322 12,111 4,769 7,463 8,383 498 - rental lease bonds 21,370 18,386 867 915 1,521 (319) 108 - loans to homebuyers - - - - - - - - loans to commercial organisations 9,695 9,158 - - - - - - Keystart preference shares 4,115,000 4,115,000 - - - - - - dividends receivable 83,281 83,281 - - - - -Other current assets 33,649 33,649 - - - - -Total financial assets 4,589,825 4,552,033 13,283 5,783 9,163 9,026 606

* Ageing of past due but not impaired values are inclusive of allowance for impairment. These provisions are netted against past due items greater than 1 year.

Past due but not impaired

Ageing analysis of financial assets


160



Liquidity risk and interest rate exposure

CONSOLIDATEDWeighted TotalAverage Fixed Variable Non- Within 1 - 2 2 - 3 3 - 4 4 - 5 More than Adjustment for carryingEffective Interest Interest Interest 1 year years years years years 5 years discounting amount

Interest Rate Rate Rate Bearing2016 % $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000

(i) Financial AssetsCash and cash equivalents 2.29% - 211,032 - 211,032 - - - - - - 211,032Restricted cash and cash equivalents 2.27% - 155,930 - 155,930 - - - - - - 155,930Other financial assets - deposits at call 2.43% - 164,984 - 164,984 - - - - - - 164,984 - other assets *** - - 24 - - - - - 24 - 24Receivables - general *** - - 16,135 16,135 - - - - - - 16,135 - land debtors *** - - 27,219 27,219 - - - - - - 27,219 - rent from tenants and other *** - - 41,401 41,401 - - - - - - 41,401 - rental and lease bonds *** - - 27,134 27,134 - - - - - - 27,134 - loans to homebuyers 4.96% - 4,412,922 - - - - - - 4,412,922 - 4,412,922 - dividends receivable *** - - - - - - - - - - -Other current assets *** - - 8,851 8,851 - - - - - - 8,851Total financial assets - 4,944,868 120,764 652,686 - - - - 4,412,946 - 5,065,632

(ii) Financial LiabilitiesBorrowings - - - - - - - - WATC 2.93% 505,443 4,454,694 - 2,432,140 1,218,053 185,701 792,647 307,981 252,572 228,957 4,960,137 - Commercial loan 4.60% - 62,276 - 2,863 2,863 2,863 2,863 2,863 85,184 37,223 62,276 - Commonwealth advances 4.57% 391,970 - - 33,436 33,150 32,825 32,411 31,969 437,440 209,261 391,970Payables- general * *** - - 31,982 31,982 - - - - - - 31,982- rental deposits and tenant bonds ** *** - - 12,029 12,029 - - - - - - 12,029- rental property water consumption *** - - - - - - - - - - 0Other current liabilities *** - - 19,014 19,014 - - - - - - 19,014Total financial liabilities 897,413 4,516,970 63,025 2,531,464 1,254,066 221,389 827,921 342,813 775,196 475,441 5,477,408

* Payables general includes an amount of $ 0 (2015 $537,159) for estate improvements. These funds are committed for various groups across the State.The repayments of these funds is based on the property market activity within each area. The maturity is not date based and cannot be forecast.

** Rental deposits and tenant bonds are repayable only when the tenant vacates the rental property. The full amount owing is not necessarily the amount that will be paid on vacation as this money can be offset against any outstanding rental payments or other payments that are outstanding.*** Not applicable for non-interest bearing financial assets and liabilities

Interest rate exposure Contractual Maturity Dates

Interest rate exposure and maturity analysis of financial assets and financial liabilities

161





CONSOLIDATEDWeighted TotalAverage Fixed Variable Non- Within 1 - 2 2 - 3 3 - 4 4 - 5 More than Adjustment for carryingEffective Interest Interest Interest 1 year years years years years 5 years discounting amount


(i) Financial AssetsCash and cash equivalents 2.54% - 178,368 - 178,368 - - - - - - 178,368Restricted cash and cash equivalents 2.70% - 93,614 - 93,614 - - - - - - 93,614Other financial assets - deposits at call 2.71% - 200,107 - 200,107 - - - - - - 200,107 - other assets *** - - 24 - - - - - 24 - 24Receivables - general *** - - 3,509 3,509 - - - - - - 3,509 - land debtors *** - - 19,562 19,562 - - - - - - 19,562 - rent from tenants and other *** - - 37,048 37,048 - - - - - - 37,048 - rental and lease bonds *** - - 21,370 21,370 - - - - - - 21,370 - loans to homebuyers 5.16% - 4,161,907 - - - - - - 4,161,907 - 4,161,907 - loans to commercial organisations - - - - - - - - - - - -Other current assets *** - - 26,844 26,844 - - - - - - 26,844Total financial assets - 4,633,996 108,357 580,422 - - - - 4,161,931 - 4,742,353

(ii) Financial LiabilitiesBorrowings - WATC 3.23% 295,161 4,523,760 - 2,144,760 461,523 1,129,538 52,548 741,876 602,786 314,110 4,818,921 - Commercial loan 4.50% - 62,276 - 2,802 2,802 2,802 2,802 2,802 87,498 39,232 62,276 - Commonwealth advances 4.57% 407,495 - - 33,800 33,436 33,150 32,825 32,411 469,411 227,538 407,495Payables- general * *** - - 83,003 83,003 - - - - - - 83,003- rental deposits and tenant bonds ** *** - - 15,189 15,189 - - - - - - 15,189- rental property water consumption *** - - 3,389 3,389 - - - - - - 3,389Other current liabilities *** - - 21,384 21,384 - - - - - - 21,384Total financial liabilities 702,656 4,586,036 122,965 2,304,327 497,761 1,165,490 88,175 777,089 1,159,695 580,880 5,411,657

* Payables general includes an amount of $ 537,159 (2014 $851,903) for estate improvements. These funds are committed for various groups across the State.The repayments of these funds is based on the property market activity within each area. The maturity is not date based and cannot be forecast.


Contractual Maturity DatesInterest rate exposure



162




PARENTWeighted TotalAverage Fixed Variable Non- Within 1 - 2 2 - 3 3 - 4 4 - 5 More than Adjustment for carryingEffective Interest Interest Interest 1 year years years years years 5 years discounting amount


(i) Financial AssetsCash and cash equivalents 2.27% - 177,126 0 177,126 - - - - - - 177,126Restricted cash and cash equivalents 2.27% - 155,930 0 155,930 - - - - - - 155,930Other financial assets - - other assets - 0 37,374 - - - - - 37,374 - 37,374Receivables - - general *** - 0 15,423 15,423 - - - - - - 15,423 - land debtors *** - 0 27,219 27,219 - - - - - - 27,219 - rent from tenants and other *** - 0 41,401 41,401 - - - - - - 41,401 - rental and lease bonds *** - 0 27,134 27,134 - - - - - - 27,134 - loans to homebuyers - - 0 0 - - - - - - - - - loans to commercial organisations 5.30% 11,267 0 0 11,267 - - - - - - 11,267 - Keystart preference shares 2.21% 1,905,000 2,385,000 0 2,280,000 1,060,000 - 700,000 250,000 - 4,290,000 - dividends receivable *** - 87,432 87,432 87,432Other current assets *** - 0 25,970 25,970 - - - - - - 25,970Total financial assets 1,916,267 2,718,056 261,953 2,848,902 1,060,000 - 700,000 0 287,374 - 4,896,276

(ii) Financial LiabilitiesBorrowings - WATC 2.93% 505,443 4,454,694 - 2,432,140 1,218,053 185,701 792,647 307,981 252,572 228,957 4,960,137 - Commercial loan 4.60% - 62,276 - 2,863 2,863 2,863 2,863 2,863 85,184 37,223 62,276 - Commonwealth advances 4.57% 391,970 - - 33,436 33,150 32,825 32,411 31,969 437,440 209,261 391,970Payables- general * *** - - 31,793 31,239 554 - - - - - 31,793- rental deposits and tenant bonds ** *** - - 12,029 12,029 - - - - - - 12,029- rental property water consumption *** - - - - - - - - - - -Other current liabilities *** - - 13,970 13,970 - - - - - - 13,970Total financial liabilities 897,413 4,516,970 57,792 2,525,677 1,254,620 221,389 827,921 342,813 775,196 475,441 5,472,175

* Payables general includes an amount of $ 0 (2015 $537,159) for estate improvements. These funds are committed for various groups across the State.The repayments of these funds is based on the property market activity within each area. The maturity is not date based and cannot be forecast.




163





PARENTWeighted TotalAverage Fixed Variable Non- Within 1 - 2 2 - 3 3 - 4 4 - 5 More than Adjustment for carryingEffective Interest Interest Interest 1 year years years years years 5 years discounting amount


(i) Financial AssetsCash and cash equivalents 2.70% - 131,027 - 131,027 - - - - - - 131,027Restricted cash and cash equivalents 2.70% - 93,614 - 93,614 - - - - - - 93,614Other financial assets - debentures - - - - - - - - - - - - other assets - - 37,374 - - - - - 37,374 - 37,374Receivables - - - general *** - - 8,205 8,205 - - - - - - 8,205 - land debtors *** - - 19,562 19,562 - - - - - - 19,562 - rent from tenants and other *** - - 37,048 37,048 - - - - - - 37,048 - rental and lease bonds *** - - 21,370 21,370 - - - - - - 21,370 - loans to homebuyers - - - - - - - - - - - - loans to commercial organisations 4.48% 9,695 - - 9,695 - - - - - - 9,695 - Keystart preference shares 2.29% 655,000 3,460,000 - 1,730,000 375,000 1,060,000 - 700,000 250,000 - 4,115,000 - dividends receivable *** 83,281 83,281 - - - - - - 83,281Other current assets *** - - 33,649 33,649 - - - - - - 33,649Total financial assets 664,695 3,684,641 240,489 2,167,451 375,000 1,060,000 - 700,000 287,374 - 4,589,825

(ii) Financial LiabilitiesBorrowings - WATC 3.43% 295,161 4,523,760 - 2,144,760 461,523 1,129,538 52,548 741,876 602,786 314,110 4,818,921 - Commercial loan 4.50% - 62,276 - 2,802 2,802 2,802 2,802 2,802 87,498 39,232 62,276 - Commonwealth advances 4.56% 407,495 - - 33,800 33,436 33,150 32,825 32,411 469,411 227,538 407,495Payables- general * *** - - 82,663 82,663 - - - - - - 82,663- rental deposits and tenant bonds ** *** - - 15,189 15,189 - - - - - - 15,189- rental property water consumption *** - - 3,389 3,389 - - - - - - 3,389Other current liabilities *** - - 16,183 16,183 - - - - - - 16,183Total financial liabilities 702,656 4,586,036 117,424 2,298,786 497,761 1,165,490 88,175 777,089 1,159,695 580,880 5,406,116

* Payables general includes an amount of $537,159 (2014 $851,903) for estate improvements. These funds are committed for various groups across the State.The repayments of these funds is based on the property market activity within each area. The maturity is not date based and cannot be forecast.





164


54 Special Purpose Account

Municipal and Essential Services AccountTo hold the balance of the Commonwealth Government's final funding for the provision of municipal and essential services to remoteAboriginal communities in Western Australia.

2016 2015

Balance at start of period - -Receipts 90,000 -Payments (27,211) -Balance at end of period 62,789 -

55(a). COMPARISONS OF ESTIMATES 2014-15 AND ACTUAL OPERATING RESULTS FOR 2015-16

Section 40 of the Financial Management Act 2006 requires The Housing Authority to prepare annual budgetestimates. Treasurer's Instruction 945 requires an explanation of significant variations between these estimates andactual results. Significant variations are considered to be those greater/less than $10 million or 10% greater/less thanthe budgeted amount

Budget Actual Variation$000 $000 $000

1. Revenues have varied by the following:

* Sales 783,907 376,734 (407,173)Sales revenue came in under the original budget of$783.91 million by 52%. Contributing factors were the lowconstruction commencements in prior years, coupled withextended construction timeframes resulting in lack ofcompleted properties available to sell. Sales revenueswere also impacted by the sell down Key Workers RfRfunded properties being reflowed into future years due tothe sluggish north west property market. There has beensignificant slow down in the land and property marketwhich has affected the ability to meet the sales targetsacross all areas.

* Rental revenue 483,294 420,744 (62,550)The 13% variance is primarily attributable to a decrease inGROH rents of circa $40m as a result of changes in thenorth west property market which saw a reduction inagency rents along with less demand from agencies forGROH properties. This has also resulted in reduced rentalincome in other areas like Social Housing rental and KeyWorkers rental.

* Commonwealth Grants and ContributionsThe $34m variance is mostly attributable to the net impact 249,902 284,235 34,333of Commonwealth Grants and Contributions for AboriginalHousing that was reflowed from 2014-15 to align withcompletion of milestones, along with the Property and Tenancy Management of Aboriginal Housing Services which was originally due to be received in August 2016 but which has been received early in 2015-16. This was offset by certain 2015/16 grants being delayed until next year.

* Interest revenue 144,298 111,227 (33,071)The variance between Original budget and Actual forInterest Revenue is primarily due to EERC amending theapplication of the Loan Guarantee Fee at the 2015-16 Mid-Year Review such that only new Western AustraliaTreasury Corporation (WATC) borrowings are levied,whereas the Original budget applied to all outstandingborrowings.

* Other RevenuesThe variance in Other Revenue is due to the Keystart 71,635 112,551 40,916capital adequacy payment of $14.18m not being offset against theKeystart dividends per the budget. Another key reason for thevariance is sundry income from GST totalling $8,578,109recovered on finalised projects from previous years due toan ATO ruling

2. Expenses have varied by the following:

* Cost of sales 549,319 241,824 (307,495)Cost of Sales is below budget which is in line with thereduction in Sales. This is mainly due to the lower numberof properties sold in Affordable Housing and P200, the RfRKey Service Workers' property sales being reflowed into outer years, thereduction in JV Investments and the deferral of landprograms. There has been a significant slow down in theland and property market which has affected the ability tomeet the sales targets and hence Cost of Sales hasreduced.

165

Housing

Authority A




55(a). COMPARISONS OF ESTIMATES 2015-16 AND ACTUAL OPERATING RESULTS FOR 2015-16 (continued)

Budget Actual Variation$000 $000 $000

* Rental Expense 382,191 337,540 (44,651)The variance is mainly due to the GROH lease rental costsdeclining across the regions and the reduction inmaintenance and savings on renovations andimprovements on social housing properties.

* New Living 14,760 18,063 3,303Reduced expenditure for refurbishment of properties forsale due to the slowing down in the property market hasbeen offset by increased expenditure in refurbishment ofproperties for rental to ensure we meet the contractualobligations for property refurbishment

* Loss on Disposal of Non-Current Assets 3,378 27,118 23,740In an effort to meet sales targets in the slowing market,the Housing authority sale of properties incurred greaterlosses than budgeted as they sold off properties inregional WA where the properties often struggled torealise their book values. Assumptions during the originalbudget process understated anticipated loss on disposal.

* Community SupportCommunity support expense is lower than anticipated due 268,754 184,638 (84,116)to NPARIH with lower than expected costs andexpenditure being pushed into next financial year.

* Supplies and Services 55,600 36,953 (18,647)The variance is mostly as a result of a reduction in stafftraining, travel and professional consultant costs.There has also been an increase in administration costscapitalised.

* Grants and Subsidies 1,216 758 (458)Grants and subsidies expenses are below budget due to abudgeted Grant for Aboriginal Communities which has not beenpaid.

* Finance costs 184,048 160,942 (23,106)The variance between Original budget and Actual forInterest Expense is primarily due to EERC amending theapplication of the Loan Guarantee Fee at the 2015-16 Mid-Year Review such that only new Western AustraliaTreasury Corporation (WATC) borrowings are levied,whereas the Original budget applied to all outstandingborrowings.

3. Grants and subsidies from State Government 94,132 105,448 11,316Grant receipts are more than budgeted due to $4.8mGROH grant which was reflowed from 2014-15 due toproject forecast expenditure being delayed, along with$5.3m capital grant received in June 16 for the purchaseof additional houses in regional and metropolitan areas forCommunity Disability Program

Housing

Authority A



166


55(b). COMPARISONS OF ACTUAL OPERATING RESULTS FOR 2015-16 WITH THOSE OF THE PRECEDINGYEAR

Details and reasons for significant variations between actual operating results for 2015-16 and the preceding year aredetailed below. Significant variations are considered to be those greater/less than $10 million or 10% greater/less than the actual amount for the preceding year.

Actual Actual Variation2016 2015

1. Revenues have varied by the following: $000 $000 $000

* Sales 376,734 430,907 (54,173)Sales revenue declined by 12.6 % from the previous year.Contributing factors were the lowconstruction commencements in prior years, coupled withextended construction timeframes resulting in lack ofcompleted properties available to sell. Sales revenueswere also impacted by the sell down Key Workers RfRfunded properties being reflowed into future years due tothe sluggish north west property market. There has beensignificant slow down in the land and property marketwhich has affected the ability to meet the sales targetsacross all areas.

* Commonwealth grants and contributions 284,235 204,550 79,685Commonwealth grants and contributions have increased by $79.68 million.This is due to NPARIH Funding received in 2015-16.

* Developers' contributions - 9 (9)Developers' contributions decreased by $9 million as no developers' contributionswere received in 2015/16

2. Expenses have varied by the following:

* Cost of sales 241,824 277,563 (35,739)Cost of Sales decreased by 12.9% which is in line with thereduction in Sales. This is mainly due to the lower numberof properties sold in Affordable Housing and P200, the RfRKey Service Workers' property sales being reflowed into outer years, thereduction in JV Investments and the deferral of landprograms. There has been a significant slow down in theland and property market which has affected the ability tomeet the sales targets and hence Cost of Sales hasreduced.

* Community Support 184,638 160,848 23,790Community support expense increased by 14.8%.This was mainly due increased support expenditure forAboriginal Community Village Infrastructure.

* Loss on disposal of non-current assets 27,118 16,100 11,018In an effort to meet sales targets in the slowing market,the Housing authority sale of properties incurred greaterlosses than budgeted as it sold off properties inregional WA where the properties often struggled torealise their book values.

* Rental Revenue 420,744 448,468 (27,724)Rental revenue declined by 6.2% from the previous year.This was mainly due to a reduction in rent received andan increase in the value of rental concessions.

* Grants and Subsidies from State Government 105,448 90,730 14,718This increase was mainly due to Municipal and Essential Services fundingreceived in July 2015/16.

167

Housing

Authority A



Key Performance IndicatorsCerti�cation of Key Performance IndicatorsI hereby certify that the key performance indicators are based on proper records, are relevant and appropriate for assisting users to assess the Housing Authority’s performance, and fairly represent the performance of the Housing Authority and its subsidiary for the financial year ended 30 June 2016.

Paul Whyte Acting Chief Executive Officer Accountable Authority

9 September 2016


168

Key Performance Indicators

Outcome: Housing eligible Western Australians

assessable income limits and other eligibility criteria. The opportunity to purchase the Authority’s land, priced in the low to moderate price bracket, is available to all Western Australians. In addition, the Authority makes available loans to cover the cost of security bonds so that income-eligible applicants can access housing in the private rental market.

It is a key strategy of the Authority to ease the pressure on the waiting list for public housing by expanding the range and diversity of housing products and services for people on low to moderate incomes. Varying alternatives will provide new entry points for clients as well as new and evolving options that support their transition along the housing continuum as their circumstances improve.

The Authority primarily contributes to the following government goal:

�� Goal 3: Results-Based Service Delivery–greater focus on achieving results in key service delivery areas for the benefit of all Western Australians.

The Authority seeks to enhance the quality of life and wellbeing of all people throughout Western Australia by satisfying the basic need for shelter. In the wider context, affordable, available and appropriate housing assists in contributing to positive social outcomes in health, education and employment. The Authority contributes to Goal 3 by providing housing through its rental housing, home finance, home ownership, and land development activities for eligible Western Australians who may not otherwise be able to obtain housing. Through the provision of Government Regional Officers’ Housing, the Authority also provides government employees with suitable and appropriate housing in regional and remote areas to support the delivery of public services such as education and policing.

Eligibility for public rental housing and for home loans is determined by

169


Effectiveness indicator 1 The extent to which the Housing Authority is responsive to the housing needs of eligible Western AustraliansThis indicator measures the Authority’s capacity to respond to expressed unmet housing demand. It is calculated as the ratio of the total number of units of housing assistance provided each year, to the number on the waiting list at 30 June of the previous year. The higher the ratio, the greater the assistances provided in relation to expressed unmet demand.

Housing assistances comprise: people housed from the waiting list into public housing or community housing options; bond assistance loans; new home loans; and land sales (lower quartile). The Authority’s public rental housing waiting list is used to represent total expressed unmet housing demand, as the other forms of housing assistance do not have a waiting list.

Ratio of the number of units of housing assistance per annum to the number on the waiting list at the start of the reporting period

0.00

0.25

0.50

0.75

1.00

1.25

TargetRatio

Ratio

2015-162014-152013-142012-132011-12

Actual Target

2011-12 2012-13 2013-14 2014-15 2015-16 2015-16

Total housing assistances 1 13,796 14,577 16,824 17,022 19,098

Public rental waiting list at 30 June previous financial year 2

23,411 22,871 21,121 20,013 20,127

Ratio 0.59 0.64 0.80 0.85 0.95 0.81

Comment on performanceThe ratio (0.95) of assistances provided to demand was higher than the Target (0.81) in 2015-16, reflecting a greater number of assistances relative to expressed unmet demand. This was primarily due to a higher than anticipated number of bond assistance loans provided as a result of a reduction in residential rental prices and an increase in the vacancy rate in the private rental market.

A comparison of results for the past five years shows a sustained improvement in the Authority’s response to housing eligible Western Australians as a result of an increase in the provision of housing assistances and a gradual decline in the public rental waiting list.

Notes:1 For 2015-16 the total units of housing assistance comprises (2014-15 result indicated within

brackets): number of people (applications) allocated from the waiting list into community housing options: 271 (227); number of new home loans approved: 2,489 (3,420); number of Housing Authority (including Joint Venture partner) land sales below $192,000a: 344 (516); number of public rental occupations: 2,873 (2,720); number of bond assistance loans approved: 13,121 (10,139).

a The benchmark cut-o� for the lower end of the market ($192,000) lower quartile is derived from the Real Estate Institute of Western Australia’s Market Update Report (March Quarter 2016), which contains the �nal December Quarter 2015 lower quartile. The report provides the lower quartile for Western Australia (State) residential land sales, (2011-12=$168,000; 2012-13=$175,000 2013-14=$175,000; 2014-15=$189,000). Excluded from the lower quartile lot sales are multiple sales to the same person; lots over 1,000 square metres; sales to companies or other government departments; and internal transfers.

2 The total number of applications recorded on the public rental waiting list varies over time as applicants’ eligibility changes. Applications may be withdrawn from the waiting list if applicants fail to meet ongoing eligibility requirements or re-instated if they are later considered eligible. The number of applications to calculate this indicator is based on the waiting list as at 30 June in the previous �nancial year.


170

Effectiveness indicator 2 Waiting times for accommodation – applicants housedThis indicator measures the Authority’s capacity to provide public rental housing to eligible applicants who are on the waiting list. Waiting times for accommodation measures the time between an applicant being listed on the waiting list and when they are housed. The greater the capacity to meet demand, the shorter the waiting time. The waiting time indicator includes properties that are head leased to community housing providers.

The graph indicates the waiting times of all applicants housed during the year in terms of average and median.

Waiting times for accommodation – applicants housed average and median in weeks

Comment on performanceThe average and median wait times for accommodation (153 weeks; 121 weeks respectively) were higher than the Target (148 weeks; 115 weeks respectively) in 2015-16. The Target anticipated a higher proportion of priority applicants housed during the year.

An increase in the number of public rental properties available for occupation resulted in a reduction in public housing waiting times compared to 2014-15.

A comparison of results for the past five years shows a steady increase in the wait times between 2011-12 and 2014-15, with a reduction in 2015-16 due to a noticeable increase in the percentage of applicants housed between one and 12 months.

Factors influencing the time an applicant may wait to be housed include the area in which housing is being sought, turnover of properties in the region, the type of accommodation required, the applicant’s place on the waiting list and whether they have a priority need.

40

80

120

160

Target median

Target average

Median

Average

2015-162014-152013-142012-132011-12

2011-12 2012-13 2013-14 2014-15 2015-16

131 132 146 158 153

111 98 114 125 121

148

115

Wee

ks

The table below illustrates the distribution of wait times for applicants housed.

2011-12 (%)

2012-13 (%)

2013-14 (%)

2014-15 (%)

2015-16 (%)

< 1 month 12.19 14.47 11.88 6.47 4.56

1-12 months 21.18 21.90 21.03 21.76 27.04

1-3 years 30.17 27.44 28.12 29.38 28.92

3-5 years 20.73 18.24 18.08 19.49 18.13

5+ years 15.73 17.96 20.89 22.90 21.34

171


Effectiveness indicator 3 The extent to which the Government Regional Officers’ Housing is responsive to the provision of housing to meet the needs of eligible Western Australian government employeesThis indicator measures the capacity to provide accommodation in response to requests from government departments. This is calculated as supply divided by demand and is presented as a percentage. Supply is represented by the number of properties allocated to departments at the end of the �nancial year. Demand is calculated by adding the number of properties allocated to departments to the number of unmet accommodation requests from departments at the end of the �nancial year.

Percentage of demand met

90

95

100TargetActual

2015-162014-152013-142012-132011-12

Perc

enta

ge

The table below illustrates the supply and demand for Government Regional O�cers’ Housing.

Actual Target

2011-12 2012-13 2013-14 2014-15 2015-16 2015-16

Supply 5,213 5,235 5,054 5,014 4,708

Demand 5,439 5,554 5,308 5,188 4,836

Percentage of demand met 96% 94% 95% 97% 97% 95%

Comment on performanceThe percentage of demand met (97 per cent) was higher than the Target (95 per cent) in 2015-16. Overall demand reduced from the previous year in all regions with the exception of the Great Southern which remained stable.

A comparison of results for the past five years demonstrates that the Authority continues to consistently provide government employees with suitable and appropriate housing in regional and remote areas supporting the delivery of public services. Supply peaked in 2012-13 but has declined over the last three years following a downturn in the mining sector.


172

Efficiency indicatorsThe Authority provides four major services: rental housing, home loans, residential land and housing supply, and Government Regional O�cers’ Housing.

Service 1: Rental HousingThis Service contributes to the Authority’s outcome by providing eligible Western Australians with:

�� public rental housing

�� community housing managed properties: rental properties managed by not-for-profit housing companies, community organisations, housing associations, and local governments through the Authority’s joint venture and community housing and crisis accommodation programs

�� rental housing for key workers in regional Western Australia

�� properties for remote Aboriginal communities.

173


Efficiency indicator 1 Operating cost per rental propertyThe operating cost per rental property measures the cost efficiency of rental housing, and is calculated by dividing the total cost of the Service (total expenses) by the total number of rental properties.

The total operating cost of the Rental Housing Service comprises:

�� administration costs (employee benefits, supplies and services, and accommodation)

�� rental expenses

�� finance costs

�� depreciation and amortisation

�� other expenses

�� community support (includes the repair and maintenance of infrastructure, as well as power, water and wastewater in Aboriginal communities and town reserves, which cannot be directly attributed to a property).

Expenses relating to community housing managed properties are borne by both the Authority and the community housing organisations. Comment on performance

The operating cost per rental property ($15,342) was consistent with the Target ($15,619).

A comparison of results for the past five years shows a consistent trend in operating cost per rental property.

$7,500

$10,000

$12,500

$15,000

$17,500

Operating cost per rental property

2015-16 Target

2015-162014-152013-142012-132011-12

2011-12 2012-13 2013-14 2014-15 2015-16

$15,619

$15,342$14,670 $14,766 $15,419 $14,750

Ope

ratin

g co

st

Operating cost per rental property


174

Service 2: Home LoansThis Service contributes to the Authority’s outcome by providing home ownership schemes for eligible applicants.

Efficiency indicator 2 Operating cost per current loan accountThe operating cost per current loan account measures the cost efficiency in home ownership products and services. It is calculated by dividing the total cost of the Service (total expenses) by the total number of loans (Keystart and other loan products).

The total operating cost of the Home Loans Service comprises:



�� other expenses.

Keystart finance costs for loan advances to clients are excluded as borrowing costs are incurred and borne by clients and do not relate to the resources required to approve and process loan applications and manage loan accounts. Comment on performance

The operating cost per current loan account ($2,395) was higher than the Target ($2,002) in 2015-16. This was the result of an increased provision for doubtful debts on the loan portfolio, and expenditure on the part divestment of the loan portfolio.

A comparison of results for the past five years shows a relatively consistent trend for the period 2011-12 to 2014-15. The increase in 2015-16 is caused by the same factors as the Target variance described above.

$0

$1,000

$2,000

$3,000

Operating cost per current loan account

2015-16 Target

2015-162014-152013-142012-132011-12

2011-12 2012-13 2013-14 2014-15 2015-16

$2,002

$2,395$1,845 $2,078 $1,972 $1,996

Ope

ratin

g Co

st

Operating cost per current loan account

175


Service 3: Land and Housing SupplyThis Service contributes to the Authority’s outcome by developing land for housing and providing housing for sale to the market.

Efficiency indicator 3 Operating cost per lot developedThis indicator measures the cost efficiency of the Authority’s land development activities. It is calculated by dividing the total cost of the land component of the Service by the number of lots or dwelling unit equivalents developed. The Authority’s land development activities include joint venture partnerships, urban development, urban renewal and urban redevelopment. The total operating cost of the land supply component of the Land and Housing Supply Service comprises:






$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

Operating cost per lot developed

2015-16 Target

2015-162014-152013-142012-132011-12

2011-12 2012-13 2013-14 2014-15 2015-16

$19,014

$25,107$19,841 $24,367 $18,552 $17,268

Ope

ratin

g Co

st

Operating cost per lot developed

Comment on performanceThe operating cost per lot developed ($25,107) was higher than the Target ($19,014) in 2015-16. This was primarily due to lower lot production driven by a significant softening in market conditions.

A comparison of results for the past five years shows an increasing trend with movements year to year caused by variability in operating expenses and lot production levels.


176

Efficiency indicator 4 Operating cost per property soldThis indicator measures the cost efficiency in supplying housing for purchase by home buyers. It is calculated by dividing the total expenses of the housing supply component of the Service by the number of properties sold.

The Authority has a number of programs which supply housing to the market including house and land sales, affordable housing programs including the SharedStart shared equity program and other housing built for sale through the Authority’s development activities.

The total operating cost for the housing supply component of the Land and Housing Supply Service comprises:






Comment on performanceThe operating cost per property sold ($31,737) was higher than the Target ($19,422). While operating expenses were less than the Target due to the Authority’s successful management of costs, the number of properties sold was lower than anticipated resulting in the higher cost per property sold. The Target set in 2015-16 State Budget for the number of sales was adjusted down at the 2015-16 Mid-Year Review due to a change in market conditions and a re-focus of the Authority’s priorities on the delivery on the Social Housing Investment Package. The Authority expects this efficiency indicator to be realigned to expected target levels in future years.

The operating cost per property sold was higher in 2015-16 compared to 2014-15 due to a weakening property market resulting in lower sales. Furthermore, operating costs were slightly higher than the prior year, due to overheads incurred for the delivery of stock to be sold in future financial years.

Actual Target

2014-15 (1) 2015-16 2015-16

Operating cost per property sold $22,025 $31,737 $19,422

Note:

(1) This indicator was reported for the first time in 2014-15.

177


Service 4: Government Regional Officers’ HousingThis Service contributes to the Authority’s outcome by providing government employees with suitable and appropriate housing in regional and remote areas to support the delivery of public services such as education and policing.

Efficiency indicator 5 Operating cost per propertyThis indicator measures the cost efficiency of providing Government Regional Officers’ Housing. It is calculated by dividing the total cost of the Service (total expenses) by the total number of properties at the end of the year. The total operating costs of the Government Regional Officers’ Housing Service comprise:

�� administration costs (employee benefits, supplies and services)





This service is operated on a cost neutral basis with costs being fully recovered from client agencies.

Comment on performanceThe operating cost per property ($27,912) was lower than the Target ($32,557) in 2015-16. This was primarily due to the continual reduction in lease costs, particularly in the Pilbara region. Savings were also made on improvements and depreciation as surplus properties were sold throughout the year, thereby eliminating the associated costs.

A comparison of results for the past five years shows a steady increase from 2011-12 to 2013-14 due to the rise in the number of leased properties in the Kimberley and Pilbara regions, where lease costs were generally higher compared to the rest of the State. The result has decreased in the past two years due to a reduction in lease costs particularly in the Pilbara.

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

Operating cost per property

2015-16 Target

2015-162014-152013-142012-132011-12

2011-12 2012-13 2013-14 2014-15 2015-16

$32,557

$27,912$29,520 $31,151 $32,703 $30,771

Ope

ratin

g Co

st

Operating cost per property


178

Ministerial directivesNo ministerial directives were received during 2015-16.

Other �nancial disclosuresAct of grace paymentsAs at 30 June 2016, there were no act of grace payments recorded.

Pricing policies – RentRent charged to tenants is determined by the Authority and approved by the Minister for Housing under section 30(1) of the Housing Act 1980. Public housing rents are determined based on household capacity to pay. Tenants who remain eligible for public housing are required to pay either 25 per cent of assessable household income in rent or the notional market rent of the property, whichever is the lower amount. Market rents for public housing are obtained from the Valuer General’s Office.

As part of the 2015-16 State Budget, the State Government approved a rent increase to further move tenants to 25 per cent of gross household income, with a maximum weekly increase of up to $12 for existing tenants in 2015-16. This one-off increase occurred in March 2016. Approval was given for new tenants to move straight to the 25 per cent of income standard.

These changes ensure that tenants make a fair and equitable contribution towards their housing costs, which are still heavily subsidised by taxpayers.

Capital projectsIn accordance with Treasurer’s Instruction 903(13)(ii), the Authority identifies the projects that remain ongoing at the end of the financial year (Table 9) and the projects completed during the year (Table 10). Explanations have been provided for variations for actual expenditure that differ by more than $2 million and 10 per cent greater/less than the estimated cost.

In 2015-16, the Affordable Housing – Hamilton Precinct project was cancelled and funding is to be refunded to the Department of Regional Development.

179


Table 9: Summary of capital works projects in progress in 2015-16 (1) (2)

Project Expected year of

completion

Estimated cost to

complete

Estimated total cost of project

Variance from previous financial year

Explanation

($’000) ($’000) ($’000)

Acute homeless shelter 2017-18 $131 $5,434 –

Disability Services Commission – National Disability Insurance Scheme My Way (4)

2017-18 $700 $700 $700 New grant funding was approved after the 2015-16 Original Budget was finalised.

Disability Services Commission – Port Hedland respite

2017-18 $2,773 $2,800 –

Disability Services Commission – Capital allocation

2017-18 $9,398 $45,031 $4,618 New grant funding was approved after the 2015-16 Original Budget was finalised.

Disability Services Commission – My Way Busselton

2016-17 $169 $1,600 –

Domestic violence accommodation

2016-17 $366 $2,000 –

Government Regional Officers’ Housing – Onslow

2016-17 $4,973 $7,000 –

Mental Health National Partnerships Agreement – Broome sub-acute

2017-18 $7,681 $7,681 $5,181 Change of project requirements and scope.

Non-government organisation housing – stage 2

2017-18 $31,898 $54,500 –

Public Housing Stock Redevelopment Strategy – Shared equity program (3)

2016-17 $13,222 $24,783 $24,783

Replacement of public housing rental stock (3)

2016-17 $1,307 $21,604 $21,604

Royalties for Regions –Broome Aboriginal short stay accommodation facility (4)

2017-18 $17,872 $21,115 $21,115

Royalties for Regions – Exmouth

2016-17 $818 $8,820 –


180

Royalties for Regions – Government Regional Officers’ Housing boost

2016-17 $33 $32,487 $7,427 Addition of refurbishment costs as part of the costs of this program that were not previously included.

Royalties for Regions – Housing for Workers

2018-19 $16,422 $16,991 $8,492 Program reduced by the Department of Regional Development due to funding constraints.

Royalties for Regions – Kimberley housing project

2016-17 $243 $7,687 –

Royalties for Regions - West Kimberley transitional housing

2016-17 $13,284 $33,000 –

Social Housing – Mental Health Care Units

2017-18 $2,972 $12,800 –

Social Housing – Mental Health Commission

2016-17 $1,138 $57,985 –

Social housing boost 2016-17 $160 $133,103 $203

Social Housing Investment Package – Build stream (4)

2017-18 $141,439 $182,395 NA

Social Housing Investment Package – Buy stream (4)

2016-17 $109,901 $117,809 NA

Social Housing Investment Package – Redevelop stream (4)

2017-18 $18,809 $21,059 NA

Social Housing Investment Package – Renew stream (4)

2018-19 $60,392 $67,287 NA

Stimulus – stage 3 2018-19 $43,033 $56,158 –

Notes:(1) The table includes all programs with defined funding sources. (2) Table 9 does not include ongoing programs that contain multiple projects without one specific completion date, which are internally funded based on Corporate Executive approved allocation of funding. (3) This is a project reported for the first time in 2015-16 and was reclassified from an inventory project to the Asset Investment Program. (4) This was a new project which commenced in 2015-16.

Table 9: Summary of capital works projects in progress in 2015-16 (1) (2) (continued)

Project Expected year of

completion

Estimated cost to

complete

Estimated total cost of project


Explanation

($’000) ($’000) ($’000)

181


Table 10: Summary of capital works projects completed in 2015-16 (1) (2)

Project Total cost of project


Explanation

($’000) ($’000)

Avon Valley - Royalties for Regions - Housing for Workers

$3,733 –

Country rental housing stock $7,440 ($60)

Disability Services Commission – Respite $6,340 $6,340 This item was not included in 2014-15 Asset Investment Program as, at that time, further expenditure was not anticipated. Balances were transferred to Disability Services Commission – Capital allocation project.

Disability Services Commission – Young people in residential care

$4,671 $4,671 This item was not included in 2014-15 Asset Investment Program as, at that time, further expenditure was not anticipated. Balances were transferred to Disability Services Commission – Capital allocation project.

East Kimberley development project (3) $7,916 ($84)

Fairbridge Farm - Evelyn Cottage (recurrent) (3) $500 –

Notes:(1) The table includes all programs with defined funding sources. (2) Table 10 does not include ongoing programs that contain multiple projects without one specific completion date, which are internally funded based on Corporate Executive approved allocation of funding. (3) This project forms part of the Royalties for Regions – Housing for Workers initiative.


182

Special Purpose StatementIn accordance with Treasurer’s Instruction 950, the Authority is required to publish in its Annual Report the special purpose statement approved, in accordance with sections 17 and 36 of the Financial Management Act 2006, for the year in which the statement was approved. In June 2016 a Special Purpose Statement was approved for Municipal and Essential Services.

Housing Authority – Special Purpose StatementMunicipal and Essential Services

NAME An account titled the Municipal and Essential Services Account (the Account) shall be established and maintained as an agency special purpose account pursuant to section 16(1)(d) of the Financial Management Act 2006 by the Housing Authority.

PURPOSE To hold the balance of the Commonwealth’s final funding for the provision of municipal and essential services to remote Aboriginal communities in Western Australia.

RECEIPTS There shall be credited to the Account such moneys as are received from the Commonwealth for the purposes of the Account.

PAYMENTS Moneys standing to the credit of the Account may be applied for the provision of Municipal and Essential Services to remote Aboriginal communities in Western Australia subject to approvals by the Government (Economic and Expenditure Reform Committee).

ADMINISTRATION OF ACCOUNT

The Account shall be administered by the Housing Authority in accordance with the Financial Management Act 2006, Financial Management Regulations 2007, and the Treasurer’s instructions.

ACCOUNTING RECORDS There shall be maintained a detailed record of transactions processed through the Account, together with such other accounting records and procedures as are prescribed in the Housing Authority’s financial management manual.

FINANCIAL STATEMENTS There shall be prepared financial statements, together with supplementary information in accordance with the provisions of the Financial Management Act 2006, Financial Management Regulations 2007 and the Treasurer’s instructions.

DISPOSAL OF FUNDS ON CESSATION

Any balance standing to the credit of the Account upon cessation of operations for which the Account was created shall be credited to the Consolidated Account.

I have examined and agree to the provisions of this special purpose statement Approved

Mr Paul WhyteActing Director General, Housing Authority

Anthony SmithAssistant Director, Financial Policy, Department of Treasury

Date: 18/06/15 Date: 19/06/15

I have examined and agree to the provisions of this special purpose statement

Approved

183


Employment and industrial relations

Our sta�ng pro�leAt the close of the financial year, 1,647 employees were employed by the Authority or 1,523 full-time equivalent employees (Table 11).

Table 11: Authority’s employment profile from 2013-14 to 2015-16

2013-14 2014-15 2015-16

Permanent full-time 1,130 1,190 1,169

Permanent part-time 88 96 84

Contract full-time and part-time 338 275 259

Seconded in 12 4 7

Seconded out 6 5 4

Total full-time equivalents 1,574 1,570 1,523

Industrial relationsThe Authority has a Joint Consultative Committee in place with the Civil Service Association which meets bi-monthly to address employment and industrial relations matters. There have been no matters involving the Industrial Magistrates Court in 2015-16. Three applications have been lodged with the Western Australian Industrial Relations Commission under the provisions of the Industrial Relations Act 1979. One matter has been dismissed and two applications are ongoing in that jurisdiction.

Two applications were lodged with the Equal Opportunity Commission under the provision of the Equal Opportunity Act 1984. Subsequent to conciliation, both matters were referred to the Equal Opportunity Commissioner for review and were dismissed. There is no further action in that jurisdiction.

Under the provisions of the Equal Opportunity Act 1984, one application dismissed by the Equal Opportunity Commissioner, was referred by the applicant to the State Administrative Tribunal. Following conciliation, the application was withdrawn and there is no further action in that jurisdiction.

Voluntary redundancyAs part of the whole of Government initiative to reduce the size of the sector, the Authority ran three voluntary severance schemes commencing in 2014-15 funded by the Authority. The third phase was finalised in 2015-16, which resulted in 66 employees accepting an offer of redundancy. These redundancies will reduce agency salaries by approximately $7.5 million per annum into the future.

Personal expenditure on the Authority’s credit cardsIn accordance with Treasurer’s Instruction 321, officers are prohibited from using Government issued credit cards for personal purposes. Treasurer’s Instructions 903(13)(iv) requires the Authority to disclose information relating to personal use.

Table 12: Personal expenditure using Government issued credit cards in 2015-16

2015-16

Number of instances the Western Australian Government Purchasing Card has been used for a personal purpose

21

Aggregate amount of personal use expenditure for the reporting period

$2,308

Aggregate amount of personal use expenditure settled by the due date

$2,308

Aggregate amount of personal use expenditure settled after the period required by the due date

$0

Aggregate amount of personal use expenditure outstanding at the end of the reporting period

$0

Number of referrals for disciplinary action instigated by the notifiable authority during the reporting period

0


184

Governance DisclosuresSubsidiariesThe Authority is the instigator of the Keystart Housing Scheme and has effective control over the whole structure, either directly or indirectly through various agreements which constitute the structure and to which it is a party. The Board of Directors of the Keystart group of companies comprise one director from the Authority and five directors from the private sector. The majority ownership interest held by the Authority in Keystart is as follows:

�� Keystart Bonds Ltd: 100 per cent of the total shareholding

�� Keystart Loans Ltd: 100 per cent of the total shareholding

�� Keystart Support Pty Ltd: 100 per cent of the total shareholding

�� Keystart Support (Subsidiary) Pty Ltd: 100 per cent of the total shareholding

�� Keystart Scheme Management Pty Ltd: 100 per cent owned by Keystart Loans Ltd.

The Authority is the majority shareholder in Goldmaster Enterprises Pty Ltd with 88 per cent ownership. The board comprises two directors from the Authority and one from the private sector. The Authority also holds minority interests in the following incorporated entities:

�� Ocean Springs Pty Ltd: 47 per cent

�� Dalyellup Beach Pty Ltd: 50 per cent

�� Ellenbrook Management Pty Ltd: 47 per cent

�� Seacrest Corporation Pty Ltd: 50 per cent.

In addition, the Authority holds interests in other non-incorporated entities and joint ventures (further information is available in the Financial Statements).

Director’s indemnity insuranceIn 2015-16, the Authority paid insurance premiums in respect of the Authority’s directors’ and officers’ liability and legal expenses for current and former directors and officers, including executive officers, of the Authority.

The insurance contracts cover: costs and expenses incurred by the relevant officers in defending proceedings, whether civil or criminal and whatever their outcome; and other liabilities that may arise from their position, with the exception of conduct involving a wilful breach of duty or improper use of information or position to gain a personal advantage.

Litigation in progressThe value of legal actions and claims against the Authority involving asbestos related illnesses is estimated at $300,000. Liability is being denied in each matter and the proceedings defended. In addition, legal proceedings and claims against the Authority that do not involve asbestos related illnesses are valued at about $10,000.

185


InsuranceIn accordance with Treasurer’s Instruction 812, the Authority maintains an appropriate level of insurance cover for insurable risks. Effective from 1 July 2004, the Authority has adopted a policy of not insuring its residential property assets as it is considered uneconomical. As part of the Authority’s ongoing risk management processes, a comprehensive review of the Authority’s policy of not insuring its residential property was completed during 2012. As a result the Authority’s residential property assets are generally uninsured as it is considered uneconomical to do so.

The Authority does, however, insure:

�� residential properties related to employment related accommodation (non-Government Regional Officers’ Housing)

�� key worker villages

�� residential property constructed by the Authority under the Affordable Housing Strategy for sale to private individuals

�� residential properties (complexes) with a replacement value of $10 million or greater.

The Authority’s other insurance programs are a combination of insurance policies provided by commercial insurance providers and the State Government’s RiskCover fund. As per Treasurer’s Instruction 825, insurance is complemented by a comprehensive approach to risk management and prudent management policies and practice.

Contracts with senior o�cersIn accordance with Treasurer’s Instruction 903(14)(iii), senior officers of the Authority are required to disclose particulars, other than normal contracts of employment of service, of any interest in any existing or proposed contract which a senior officer; or a firm of which a senior officer is a member; or an entity in which a senior officer has a substantial financial interest, has made with the agency or any subsidiary body, related body or affiliated body of the agency. At the date of reporting, no senior officers had declared any interests in existing or proposed contracts with the Authority other than normal contracts of employment of service.


186

Other legal requirementsAdvertisingIn accordance with section 175ZE of the Electoral Act 1907, the Authority incurred expenditure in advertising and media advertising. Total expenditure for 2015-16 was $1,019,411 (Table 13).

Table 13: Advertising expenditure for 2015-16

Category Amount

Advertising agencies $43,163

Rare Pty Ltd $1,519

Trilogy Advertising $41,644

Market research organisations Nil

Polling organisations Nil

Direct mail organisations Nil

Media advertising agencies $976,248

Adcorp $77,383

Carat Australia Media Services $898,865

Disability Access and Inclusion Plan outcomesThe Authority is committed to ensuring its functions, facilities, services and employment opportunities are accessible and inclusive for people with disability, their families and carers. The Disability Services Act 1993 (the Act) requires that Public Authorities develop and implement a Disability Access and Inclusion Plan (DAIP) detailing the overarching strategies that will be undertaken by the Authority in support of the access and inclusion outcomes specified by the Disability Services Commission.

The Authority’s DAIP 2013-2018 was developed in accordance with the Act and has been designed to provide focus and guidance on access and inclusion to achieve the following objectives:

�� eliminate barriers and foster inclusiveness

�� raise awareness and understanding of our customers’ and staff needs in order to deliver services and information to add value

�� create an environment that embraces and values diversity

�� have a systemic approach to managing access and inclusion which is integral to the way we do business.

A DAIP Working Group has been established, with representation across the agency to develop and monitor an internal action plan to implement DAIP strategies. Progress implementing the internal action plan is reviewed biannually by the Authority’s Corporate and Business Performance Committee.

187


In 2015-2016, the Authority undertook the following initiatives to deliver access and inclusion outcomes for its staff and customers:

Outcome 1: People with disability have the same opportunities as other people to access the services of, and any events organised by the Authority.

�� Incorporated information regarding the Authority’s DAIP and its requirements in tenders and contract documents, where practicable.

�� Included disability access and inclusion information in the staff corporate induction program.

�� Implemented disability awareness training for staff.

Outcome 2: People with disability have the same opportunities as other people to access the buildings and other facilities of the Authority.

�� Completed access audits at six offices to identify disability access issues.

�� Refurbished a number of offices which now include facilities such as accessible front counters, Australian Council for Rehabilitation of Disabled (ACROD) parking and automatic sliding doors.

�� Installed floor padding on an ACROD parking bay at the head office and provided wheelchair storage adjacent to the bay.

Outcome 3: People with disability receive information from the Authority in a format that will enable them to access the information as readily as other people are able to access it.

�� Ensured all new publications contain standard wording advising clients that they are available in alternative formats.

�� Promoted National Relay Service information on service delivery brochures and through the Authority’s website.

Outcome 4: People with disability receive the same level and quality of service from staff of the Authority as other people receive.

�� Raised awareness amongst staff of the Authority’s DAIP and events such as Disability Awareness Week through internal promotion.

Outcome 5: People with disability have the same opportunity as other people to make a complaint to the Authority.

�� Maintained a feedback page on the Authority’s website and provided assistance if required.

�� Commenced a review of the complaints management and feedback process which will identify accessibility issues.

Outcome 6: People with disability have the same opportunities as other people to participate in any public consultation by the Authority.

�� Maintained an internal consultation guide to assist staff to consider access and inclusion issues when conducting consultation and promoted internally.

�� Maintained an accessible events checklist to assist staff with the organisation of accessible events.

Outcome 7: People with disability have the same opportunities as other people to obtain and maintain employment within the Authority.

�� Delivered panel recruitment training for inclusive selection processes in chairing a selection panel to selected staff with plans underway to provide it to business units across the Authority.

�� Delivered individual coaching to users of assistive technology.


188

Recordkeeping PlanThe Authority’s amended Recordkeeping Plan was approved by the State Records Commission on 26 March 2016. During 2015-16, the Authority conducted 29 reviews of its business classification scheme. A further 24 reviews were conducted on record security and one on the corporate recordkeeping system settings (HP Records Manager).

In addition to these reviews the Authority integrated more systems with HP Records Manager and during the year created approximately 35,000 files and captured close to 1.2 million documents through process automation.

Recordkeeping training is required to be completed by all employees. Training initiatives and materials are reviewed regularly to comply with relevant legislation and standards. All new staff are enrolled in training within a month of commencing.

Existing staff are enrolled in all new modules as they are implemented. Due to the geographical locations of our offices, induction training is provided through the online training suite. The outcomes of the Authority’s recordkeeping and information management training suite for this period are detailed in Table 14.

Recordkeeping information, policies and procedures are also available on the intranet. The effectiveness of the induction program in addressing employee roles and responsibilities is regularly reviewed to ensure compliance with the State Records Act 2000.

Table 14: Outcomes for recordkeeping course completions

Course Completions In progress Total

Business classification 223 541 764

Recordkeeping awareness training

154 392 546

Recordkeeping awareness refresher training

23 10 33

TRIM Essentials 65 35 100

Housekeeping (recordkeeping in the Authority)

238 813 1,051

Compliance with public sector standards and ethical codesIn accordance with section 31(1) of the Public Sector Management Act 1994, the Authority complied with the Public Sector Standards and the Western Australian Public Sector Code of Ethics. Policies and procedures designed to ensure such compliance (including the Authority’s Code of Conduct) were in place and appropriate internal assessments were conducted.

Activities undertaken by the Authority relating to ensuring compliance with Public Sector Standards, the Western Australian Public Sector Code of Ethics and the Authority’s Code of Conduct in 2015-16:

�� Provided information and training on the Authority’s Code of Conduct and the Western Australian Public Sector Code of Ethics to new employees as part of the induction program.

�� Affirmed employees’ understanding of the Authority’s Code of Conduct and related legislation and policies, in line with Commissioner’s Instruction No.8 – Codes of Conduct and integrity training, through high participation in the online Accountable and Ethical Decision Making training, achieving a 94 per cent completion rate (as at 30 June 2016).

�� Strengthened employees’ understanding of the Authority’s Code of Conduct and related legislation and policies through high participation in the Code of Conduct and Integrity training, achieving a 92 per cent completion rate (as at 30 June 2016).

189


progression of key objectives within the Service Delivery frontline safety project during the year to improve employees’ safety. The project team is working collaboratively with business partners on the development of an online Incident/Hazard Reporting program for iPads and mobile devices, and security software for frontline employees. It is envisaged that when available the Incident Reporting program will deliver a more accessible reporting tool in addition to an improved level of personal safety. It is expected that the capture of an increased number of incidents will allow meaningful trends to be extracted to support changes to safety policy and procedures.

The Authority’s Health and Wellness Program continues to deliver positive outcomes for staff. The Employee Assistance Program continues to be available to staff at no cost.

Workers’ compensation and injury managementThe Authority provides injury management support, including return to work plans for injured employees, in accordance with the requirements of the Workers’ Compensation and Injury Management Act 1981.

Twenty-six claims were received in 2015-16, which included 10 lost time injury claims of which two were categorised as severe. Slips, trips and falls, was the injury mechanism identified in 23 per cent of all claims followed by psychological stress, which accounted for approximately 19 per cent. The Authority’s performance is presented in Table 15.

Government policy requirementsOccupational safety, health and injury management

Our commitmentThe Authority recognises that the health and safety of its employees is of prime importance in all aspects of its planning and operations. Additionally management is conscious of the Authority’s duty to provide adequate information, training and supervision to assist in the provision of a safe working environment.

In the event of a workplace injury the Authority ensures that injury management is implemented in accordance with the requirements of the Workers’ Compensation and Injury Management Act 1981 (the Act) and the Code of Practice: Occupational Safety and Health in the Western Australian Public Sector. The Authority has an Injury Management System which is compliant with the requirements of the Act and the Code of Practice.

The Authority’s health and safety information is available to staff on the Authority’s intranet site.

Consultation mechanismsThe Authority’s Corporate Executive, managers and employees are committed to an objective of continuous improvement in the quality of workplace occupational health and safety. It is

committed to effective workplace consultation, with the opportunity for employees to fully participate in decisions which impact their work life and environment.

The Authority’s Occupational Safety and Health Steering Committee consist of a senior management representative, management representatives and staff representatives. The Steering Committee supports an extensive network of Occupational Safety and Health Committees and more than 50 elected employee representatives across the State.

Safety auditDuring 2014-15, an independent audit of the Authority’s systems for Service Delivery frontline staff, exposed to the greatest level of risk, was completed and the recommendations accepted by the Corporate Executive. A project team dedicated to this initiative is underway to address the key initiatives arising out of recommendations.

The Authority has reviewed and updated its safety key performance indicators to include lead and lag indicators and targets and is committed to obtaining a Silver WorkSafe Plan Certificate of Achievement.

Our progressThe Authority continues its commitment to occupational safety and health, which included


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Table 15: Occupational safety, health and injury management performance

Measure Actual results Target Results against target

2013-14 2014-15 2015-16

Number of fatalities 0 0 0 0 Target achieved.

Lost time injury and/or disease incidence rate

0.76 (1) 0.64 (1) 0.66 Zero or 10% improvement on previous 3 years

Target achieved.

The implementation of the frontline safety project and engagement of additional resources will provide a greater focus on both prevention of injury and improved injury management

Lost time injury and/or disease severity rate

25 (1) 40 (1) 30 Zero or 10% improvement on previous 3 years

Target was not achieved. An increase in severe claims in 2015-16 had an adverse impact on the result.

Percentage of injured workers return to work within:

13 weeks 67 (1) % 70 (1) % 70%

26 weeks 67 (1) % 70 (1) % 70% Greater than 80% return to work within 26 weeks

Target was not achieved due to an increase in complex and severe claims.

Percentage of managers trained in occupational safety, health and injury management

85 (1) % 87 (1) % 84% Greater than or equal to 80%

Target achieved.

Note: (1) Figures for the previous reporting period have been amended to reflect accurate calculations as per the Public Sector Commissioner’s Circular guidelines.

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Substantive EqualityThe Authority is committed to ensuring that substantive equality principles are reflected appropriately in its policies, procedures and practices in accordance with the State Government’s Policy Framework for Substantive Equality (Policy Framework). The Policy Framework aims to achieve substantive equality in the Western Australian public sector by addressing and eliminating systemic discrimination in the provision of public sector services and promoting sensitivity to the different needs of client groups.

The Authority established a Substantive Equality Committee to provide advice on the implementation of the Policy Framework and to develop and implement an internal action plan. This year an internal action plan was approved by the Corporate Executive. The internal action plan supports the integration of substantive equality principles into our business practices. The Authority has commenced actioning the tasks within the plan. Completion of the tasks will be monitored by the Substantive Equality Committee with regular progress reporting to senior management.

Audit

Audit CommitteeThe Audit Committee is a six member committee comprising members of the Corporate Executive. The Committee was established to assist the Accountable Authority (the Chief Executive Officer) to discharge his responsibilities under section 53 of the Financial Management Act 2006. The Office of the Auditor General is invited to attend as an observer. The Committee met three times during 2015-16.

Internal AuditIn accordance with the requirements of the Financial Management Act 2006, the Management Review and Audit Branch operates as an independent appraisal unit within the Authority.

In addition to the internal audit services, there is also scope for the branch to undertake management reviews as permitted under this Act. This has broadened the focus of internal audit to include strategic and operational risks as well as business improvement. Comprehensive audit plans that address core business activities and key strategic business risks are developed annually and contribute to the Authority’s control framework. The audit function helps the Authority promote mechanisms that encourage a culture that is conscious of risk, control and process; assists the Authority in its drive for business improvement and the achievement of its objectives; and assesses enabling systems and technology.

The approved audit plan for 2015-16 encompassed 13 reviews addressing corporate governance, operational, compliance, financial, information systems, probity and risk assessments.

Delegation of AuthorityThe authority to undertake transactions under the Housing Act 1980 (the Act), is conferred on the Accountable Authority (the Chief Executive Officer) or the Minister for Housing in most circumstances.

Section 13 of the Act, however, allows the Accountable Authority to delegate any of its powers or functions under the Act. Through delegation, the Chief Executive Officer does not need to be approached for approval of many administrative matters associated with day-to-day operations and activities.

A delegation framework and a comprehensive register exist to record formal delegations that empower staff to approve and negotiate matters on behalf of the Authority.


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Risk managementThe Chief Executive Officer is accountable for ensuring that the Authority appropriately identifies and manages its risk and is supported in this by the Corporate Executive. The Authority has in place a risk management framework consisting of a risk management policy, the Risk Management Committee, risk appetite in the form of risk reference tables, a risk management implementation plan and the corporate risk register.

During the year Corporate Executive reviewed the Authority’s strategic risks and in doing so identified a number of new or amended risks to be monitored at the executive level.

The Risk Management Committee (the Committee) comprises of senior management representatives, observers and technical advisors. The Committee provides oversight of the risk management process and works to ensure that appropriate risk identification and risk mitigation processes are in place across all Divisions. The Committee is also responsible for regularly reviewing, monitoring and where appropriate, providing advice to the Corporate Executive regarding significant risks to the Authority and risk management matters generally.

In accordance with the Committee’s oversight role it reviewed quarterly corporate risk register reports that identified risks rated as high or extreme, any overdue risk reviews and the effectiveness of current risk controls and progress of treatment actions to ensure that operational and project risk owners monitored their risks.

The Committee also reviewed the corporate financial risk appetite, expressed in the financial impact/loss impact category of the corporate risk reference tables, and recommended changes to the Corporate Executive. The Corporate Executive endorsed the amendments to the risk reference table.

During the year the Authority �nalised the selection of a replacement corporate risk register. The new register was required to replace the existing system which was no longer supported and had become cumbersome to maintain. The new risk register will provide much greater transparency of risks at whole of agency level to support a more strategic approach to risk management. The Authority’s Risk Management Policy and Business Continuity Policy were both updated following the issue of the Public Sector Commissioner’s Circular 2015-03.

Business continuity planning The annual update of the Authority’s business continuity plans was completed in accordance with the Authority’s Business Continuity Management Policy and the Public Sector Commissioner’s Circular: 2015-03 Risk Management and Business Continuity Planning. This update for head office business units and the network of regional and area offices covered revising critical personnel lists, external contact details and re-affirming the availability of alternate sites. There were no business continuity incidents impacting on business operations during the year.

Crisis management control and coordination information along with notification and escalation processes remain in place and regular checks are carried out to confirm that resources are available should a business continuity incident escalate.

The Authority maintained its representation on the Recovery and Community Engagement Sub-Committees of the State Emergency Management Committee and submitted responses to the Committee’s 2015 Capability Assessment and Preparedness Report. The Authority also participated at District Emergency Management Committee meetings in respective regional areas.

WESTPLAN Heatwave was activated by the Department of Health on 4 February 2016 and the Authority’s response plan subsequently initiated. The response actions included the provision of health information to staff via the intranet and to tenants and customers via the Authority’s website, hard copy at counters and outbound telephone calls by the Housing Direct customer contact centre to 300 tenants aged over 80 years of age. WESTPLAN Heatwave was stood down by Department of Health on 12 February 2016 and the Authority provided feedback to Department of Health on actions taken.

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Government building contracts Through the Government Building Training Policy, the State Government is aiming to increase the overall numbers of apprentices and trainees in the building and construction industry. This will be achieved by requiring government building, construction and maintenance contractors to commit to meet or exceed a target training rate through the employment of construction apprentices and trainees by their company and the subcontractors they use for the contract.

In accordance with Premier’s Circular 2015/02 - Government Building Training Policy, the Authority has complied with the policy by updating tender documentation to include the policy and reporting requirements as well as monitoring building, construction or maintenance projects accordingly. The Government Building Training Policy applies from 1 October 2015 to building and construction contracts (including civil and engineering contracts) with an estimated labour value of $2 million or more for the construction component of the contract.

Table 16: Government building contracts (1 October 2015 to 30 June 2016)

Government building contracts measures Number

Active contracts within the scope of the policy in the reporting period

1

Contracts granted a variation to the target training rate in the reporting period

0

Head contractors involved in the contracts 1

Construction apprentices/trainees required to meet target training rate

5

Construction apprentices/trainees employed by head contractors; and the subcontractors they are using for the contracts

5

Contracts which met or exceeded the target training rate 1

During the January 2016 fires that devastated Yarloop and surrounding areas, the Housing Authority worked effectively and efficiently to manage the situation for tenants.

The Authority cancelled scheduled inspections and advised tenants in the area to follow emergency advice. A local Regional Coordinator for Bushfire Response was appointed to function as the Authority’s central point of contact for tenants and agencies, and to liaise with emergency services and community housing organisations.

When the �res reached Yarloop, the local o�ce initiated an emergency response. Displaced tenants were contacted immediately to ensure their safety.

In the wake of the devastation, 12 public housing rental properties and a Government Regional Officers’ Housing lease property were destroyed. A five-unit complex was also damaged. Affected tenants included seven families with children, five pensioners, two couples and two single adults.

Yarloop residents were granted priority applicant status for new eligible applicants. Bond Assistance Loan application restrictions were relaxed to assist those affected.

Staff worked hard with other agencies to rehouse affected tenants. The Authority’s other regional offices also showed strong support and helped to find properties and facilitate sign-ups.

SNAPSHO

T

Response to Yarloop fires


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AppendicesThis section contains the glossary, description of key functions, housing statistics and contact details and office locations.

195

Housing Authority Annual Report 2015–16 | Appendices

Appendix 1: GlossaryACROD Australian Council for Rehabilitation of Disabled

AHURI Australian Housing and Urban Research Institute

CBD Central Business District

DAIP Disability Access and Inclusion Plan

NAIDOC National Aborigines and Islanders Day Observance Committee

NPARIH National Partnership Agreement on Remote Indigenous Housing

NRAS National Rental Affordability Scheme

RAESP Remote Area Essential Services Program

REIWA Real Estate Institute of Western Australia

STEP Support and Tenant Education Program


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Appendix 2: Authority’s key functionsFunctions Target group

Land development

Our residential land supply across the State is principally delivered through our joint ventures with the private sector as well as urban renewal and infill projects undertaken by the Authority. We supply land for entry-level housing in the market and for government social programs including social housing. A significant proportion of the Authority’s revenue supports delivery of our social outcomes (public housing).

People on very low, low and moderate incomes

Affordable housing construction

Affordable housing is delivered to the market through innovative and market transforming procurement and construction techniques and partnerships with the private sector. Diversity of housing across the continuum is the main focus from homelessness to home ownership with products ranging from single homes, to lifestyle villages, to large-scale apartment developments.

People on very low, low and moderate incomes

Home ownership

The Authority ensures home ownership remains an attainable aspiration for people on low to moderate incomes who cannot raise a deposit to secure bank finance. Products offered include low deposit loans through Keystart and shared equity schemes which combine the Authority’s co-ownership with Keystart loans to make home ownership a reality for specific target households.

People on low and moderate incomes

Keystart low deposit loans (moderate incomes) usually first homebuyers

Shared equity (lower incomes) and other disadvantaged groups such as sole parents, Aboriginal people and people with disability

Affordable private rentals

Renters are assisted in the private rental market through a number of activities including bond loan assistance, discounted rentals through the NRAS which offers at least 20 per cent discount on market rent, and the Authority’s investment in affordable housing projects.

People on low and moderate incomes

Investors in private rentals (NRAS)

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Functions Target group

Regional worker housing

Workers providing essential services in regional and remote areas are assisted with accommodation through programs such as Government Regional Officers’ Housing and key worker initiatives.

Government workers

Young adult Aboriginal apprentices and trainees

Key and service workers including small business and non-government organisations in targeted high cost locations

Social housing

The most vulnerable and in need in our community are supported through social housing including public housing, community housing and transitional housing.

People on very low to low incomes

Support for health service agencies

Remote Indigenous housing and essential services

Housing and essential services maintenance (power, water, sewerage) in remote Aboriginal communities are delivered through a network of the Authority’s regional offices and contracted regional service providers.

Residents of remote Aboriginal communities and town-based communities

Policy, innovation and asset optimisation People on very low, low and moderate incomes

Driving delivery of the State’s Government’s Affordable Housing Strategy across private and the not-for-profit sector. This includes reforming the social housing system to ensure it is fair and sustainable into the future, facilitating increased supply and diversity of well-located housing to better meet population needs at the affordable end of the market, working across government and with industry to streamline government processes and reduce barriers to market efficiency and leveraging government roles and assets both owned and through partnering arrangements (land and housing) to catalyse investment for development that delivers social and economic benefits.


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Appendix 3: Head Maintenance ContractHead contractor performance 2014-15Table 17: Head Maintenance Contract key performance indicator performance: 1 November 2014 - 31 December 2014

Key performance indicator (1) Benchmark Head Maintenance Contractors

A B C D

KPI 1 Health, Safety and Environmental Management Plan 100% 100% 100% 100% 100%

KPI 2 Statutory notices 100% 100% 100% 100% 100%

KPI 3 Emergency (8 hours) 100% 97.6% 56.6% 76.8% 91.5%

KPI 4 Urgent (24 hours) 95% 97.5% 44.0% 68.9% 58.2%

KPI 5 Priority (48 hours) 95% 96.2% 56.5% 75.0% 63.8%

KPI 6 Void (average days) 14.0 5.2 8.4 10.0 7.3

KPI 7 Routine (28 days) 95% 99.5% 96.9% 93.3% 96.0%

KPI 8 Timeliness of invoices 90% 48.1% 80.3% 37.5% 39.8%

KPI 9 Pending invoices (2) 95% 90.4% 95.4% 82.5% 84.6%

KPI 10 Non defective works 90% 99.6% 97.5% 99.8% 95.2%

KPI 11 Improvement Notices 95% 100.0% 100.0% 100.0% 0.0%

KPI 12 Compliance Notices 100% 100.0% 100.0% 100.0% 100.0%

KPI 13 Industry Participation Plan 100% 100.0% 100.0% 100.0% 0.0%

KPI 14 Indigenous Employment and Enterprise Plan 100% 0.0% 0.0% 0.0% 0.0%

KPI 15 Apprenticeship Plan 100% 100.0% 100.0% 100.0% 0.0%

Note:(1) The definition for each key performance indicator is provided in Table 24 of this Appendix.(2) KPI 9: Pending invoices was used during 2014-15. It measures the number of completed works orders that had not been invoiced within the relevant performance quarter. It was determined that this

indicator did not drive contractor performance and it was replaced with a tenant satisfaction measurement for 2015-16.

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Table 18: Head Maintenance Contract key performance indicator performance: 1 January 2015 - 31 March 2015


A B C D

KPI 1 Health, Safety and Environmental Management Plan 100.0% 100.0% 100.0% 100.0% 100.0%

KPI 2 Statutory notices 100.0% 100.0% 0.0% 100.0% 100.0%

KPI 3 Emergency (8 hours) 100.0% 92.2% 39.6% 86.3% 86.6%

KPI 4 Urgent (24 hours) 95.0% 93.6% 36.5% 67.3% 48.5%

KPI 5 Priority (48 hours) 95.0% 91.8% 53.1% 73.1% 53.8%


KPI 7 Routine (28 days) 95.0% 97.0% 81.9% 80.9% 83.7%

KPI 8 Timeliness of invoices 90.0% 47.8% 70.7% 60.2% 56.5%

KPI 9 Pending invoices (2) 95.0% 75.6% 92.3% 77.9% 76.7%

KPI 10 Non defective works 90.0% 93.8% 94.5% 94.7% 91.4%

KPI 11 Improvement Notices 95.0% 100.0% 100.0% 100.0% 100.0%

KPI 12 Compliance Notices 100.0% 100.0% 100.0% 100.0% 100.0%

KPI 13 Industry Participation Plan 100.0% 0.0% 100.0% 100.0% 0.0%

KPI 14 Indigenous Employment and Enterprise Plan 100.0% 0.0% 100.0% 0.0% 0.0%

KPI 15 Apprenticeship Plan 100.0% 0.0% 0.0% 100.0% 0.0%




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Table 19: Head Maintenance Contract key performance indicator performance: 1 April 2015 – 30 June 2015


A B C D

KPI 1 Health, Safety and Environmental Management Plan 100.0% 100.0% 100.0% 100.0% 100.0%

KPI 2 Statutory notices 100.0% 100.0% 100.0% 100.0% 100.0%

KPI 3 Emergency (8 hours) 100.0% 91.5% 52.8% 77.8% 86.6%

KPI 4 Urgent (24 hours) 95.0% 88.4% 37.5% 70.3% 45.2%

KPI 5 Priority (48 hours) 95.0% 87.4% 45.1% 72.0% 46.8%


KPI 7 Routine (28 days) 95.0% 93.2% 71.5% 72.6% 62.0%

KPI 8 Timeliness of invoices 90.0% 47.1% 80.0% 69.3% 74.1%

KPI 9 Pending invoices (2) 95.0% 77.3% 92.2% 85.2% 86.6%

KPI 10 Non defective works 90.0% 100.0% 100.0% 100.0% 100.0%

KPI 11 Improvement Notices 95.0% 100.0% 100.0% 100.0% 100.0%

KPI 12 Compliance Notices 100.0% 100.0% 100.0% 100.0% 100.0%

KPI 13 Industry Participation Plan 100.0% 100.0% 100.0% 100.0% 100.0%

KPI 14 Indigenous Employment and Enterprise Plan 100.0% 100.0% 0.0% 100.0% 100.0%

KPI 15 Apprenticeship Plan 100.0% 100.0% 100.0% 100.0% 100.0%



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2015-16 head contractor performanceTable 20: Head Maintenance Contract key performance indicator performance: 1 July 2015 - 30 September 2015

Key performance indicator (1) Benchmark Contract areas

1 2 3 4 5 6 7 8 9 10 11

KPI 1 Health, Safety and Environmental Management Plan

100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

KPI 2 Statutory notices 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

KPI 3 Emergency (8 hours) 100.0% 97.0% 100.0% 94.3% 96.9% 91.5% 96.1% 69.6% 63.7% 76.2% 91.1% 89.3%

KPI 4 Urgent (24 hours) 95.0% 94.0% 94.8% 96.6% 94.2% 87.4% 80.1% 67.8% 40.8% 56.3% 58.3% 65.1%

KPI 5 Priority (48 hours) 95.0% 93.2% 92.9% 94.9% 93.4% 88.7% 81.5% 71.6% 45.2% 66.5% 62.5% 68.0%

KPI 6 Void (average days) 14.0 7.3 8.6 5.9 6.8 8.5 15.7 12.7 12.2 23.5 12.8 18.1

KPI 7 Routine (28 days) 95.0% 97.7% 95.1% 96.2% 96.1% 89.7% 76.1% 83.2% 67.3% 79.4% 73.8% 68.5%

KPI 8 Timeliness of invoices 90.0% 84.6% 76.2% 83.2% 80.6% 97.2% 92.8% 93.6% 92.9% 97.5% 92.8% 92.0%

KPI 9 Tenant satisfaction (2) 95.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

KPI 10 Non defective works 90.0% 97.4% 98.8% 98.4% 98.2% 98.7% 98.1% 96.5% 98.2% 97.4% 96.3% 95.8%

KPI 11 Improvement Notices 95.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

KPI 12 Compliance Notices 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

KPI 13 Industry Participation Plan 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

KPI 14 Indigenous Employment and Enterprise Plan

100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

KPI 15 Apprenticeship Plan 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

Note:(1) The definition for each key performance indicator is provided in Table 24 of this Appendix.(2) KPI 9: Tenant satisfaction was added in 2015-16 and replaces KPI 9: Pending invoices.


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Table 21: Head Maintenance Contract key performance indicator performance: 1 October 2015 - 31 December 2015


1 2 3 4 5 6 7 8 9 10 11


100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%



KPI 4 Urgent (24 hours) 95.0% 88.6% 78.7% 87.3% 95.6% 65.2% 70.7% 74.9% 78.0% 83.0% 71.5% 70.9%



KPI 7 Routine (28 days) 95.0% 93.6% 96.1% 96.8% 92.9% 83.6% 88.5% 90.4% 73.7% 92.8% 76.0% 69.7%








100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%



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Table 22: Head Maintenance Contract key performance indicator performance: 1 January 2016 - 31 March 2016


1 2 3 4 5 6 7 8 9 10 11


100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%



KPI 4 Urgent (24 hours) 95.0% 97.2% 90.9% 94.7% 93.2% 55.5% 69.9% 68.5% 73.8% 68.5% 84.6% 81.1%



KPI 7 Routine (28 days) 95.0% 96.7% 97.3% 97.3% 93.2% 81.2% 88.9% 88.3% 65.2% 72.5% 84.2% 80.5%








100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%




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Table 23: Head Maintenance Contract key performance indicator performance: 1 April 2016 - 30 June 2016


1 2 3 4 5 6 7 8 9 10 11


100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%



KPI 4 Urgent (24 hours) 95.0% 97.8% 91.6% 94.4% 97.9% 66.6% 70.3% 68.2% 77.1% 62.6% 82.3% 84.8%



KPI 7 Routine (28 days) 95.0% 98.3% 97.2% 96.9% 97.9% 83.7% 87.3% 80.1% 79.9% 72.0% 87.3% 87.7%








100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%



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Key performance indicator de�nitionsTable 24 provides an explanation of each of the fifteen key performance indicators including confirmation as to which of the five overarching performance categories (timeliness, quality, cost, safety, and participation) each key performance indicator applies.

Table 24: Explanation of the fifteen key performance indicators including overarching performance categories and target

Key performance indicator

Category Name Explanation Performance benchmark score

KPI 1 Safety Health, Safety and Environmental Management Plan

Plan complied with including:

�� Safety Inspections carried out for each Category of Work accord with safety inspections

�� Contractor has an internal Corporate Occupational safety and health representative with relevant training and qualifications

�� Safety Work Method Statement completed for all high risk construction work

�� Take five safety check (or equivalent) completed for all Schedule of rates work.

100% of Health, Safety and Environmental Management Plan provided.

KPI 2 Safety Statutory notices

Provision of statutory notices to the Principal. 100% of statutory notices provided to the Principal immediately (and no later than five hours from receipt of the notice from a regulator).

KPI 3 Timeliness Emergency Attend and restore or repair life threatening safety issue within 8 hours of issue of the Works Order to the Contractor.

100% of paid emergency works orders completed within eight hours of issue of the works orders to the contractor.

KPI 4 Timeliness Urgent Attend and restore or repair essential service(s) within 24 hours of issue of the works order to the contractor.

95% of paid urgent works orders completed within 24 hours of issue of the works orders to the contractor.

KPI 5 Timeliness Priority Attend and repair within 48 hours of issue of the works order to the contractor.

95% of paid priority works orders completed within 48 hours of issue of the works orders to the contractor.


206



KPI 6 Timeliness Void Attend and complete void maintenance activity within 14 days of issue of the works order to the Contractor.

Average of 14 days for the Completion of paid void maintenance works orders for the relevant performance review quarter.

KPI 7 Timeliness Routine Attend and repair within 28 days of issue of the works order to the contractor.

95% of paid routine works orders completed within 28 days of issue of the works orders to the Contractor.

KPI 8 Timeliness Timeliness of invoices (Payment claims)

Submission of compliant payment claims (compliant with all requirements of the contract) within 14 days following completion of all maintenance works and services the subject of a works order.

90% of payment claims submitted within 14 days of completion of all maintenance works and services the subject of a works order.

KPI 9 (2014-15)

Cost Pending invoices

Number of completed works orders that had not been invoiced within the relevant performance quarter.

95%

KPI 9 (2015-16)

Tenant satisfaction

Tenant satisfaction

% of satisfactory or above (measuring four-out-of-five or above) ratings in sample Tenant Satisfaction surveys in each performance review quarter. Tenant surveys will be randomly selected from paid works orders on a monthly basis and results will be collated to assess the key performance indicator for the relevant performance review quarter.

90%

KPI 10 Quality Non defective works

Non-defective works orders as a percentage of total maintenance works and services works orders completed in the relevant performance review quarter.

90%

Table 24: Explanation of the fifteen key performance indicators including overarching performance categories and target (continued)

207




KPI 11 Quality Improvement Notices

Number of Improvement Notices achieving the outcome sought to the satisfaction of the Principal in the agreed time for completion against the number issued for the relevant performance review quarter.

95%

KPI 12 Quality Compliance Notices

Number of Compliance Notices achieving the outcome sought to the satisfaction of the Principal in the agreed time for completion against the number issued for the relevant performance review quarter.

100%

KPI 13 Participation Industry Participation Plan

Plan complied with. 100% compliance

KPI 14 Participation Indigenous Employment and Enterprise Plan


KPI 15 Participation Apprenticeship Plan


Table 24: Explanation of the fifteen key performance indicators including overarching performance categories and target (continued)


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Audit methodologyThe maintenance audit methodology is outlined in Figure 8.

Figure 8: Head Maintenance Contract model’s audit methodology

Head Maintenance Contractors Quality System

Head Maintenance Contract Contractual Obligation

Compliance and assurance activities

ISO9001:2008 Standards

• Onsite inspections• Desk top analysis• Tenant satisfaction surveys• 100% vacant properties

inspected

Compliance and assurance results provided to the Housing Authority

Physical inspectionsOccur where works orders contain the following:• Void (vacant properties)• Tenant liability of charges• Budget code of insurance,

planned or cyclical • Safety device or appliance• Absestos removal and

remediation• Over $500 for a metro region

(excluding travel)• Over $1,000 for a country region

(excluding travel)

Housing Authority Payment Authorisations

Staff check:• Schedule of rates• Budget codes• Documentation

Housing Authority Quality Assurance Audits

5% of paid works orders

Sample selection criteria

Testing regime including:• Onsite inspections• Desktop audits (process)• Works orders reviews (technical)

Testing checklist

Results

Actions

• Rectify• Recoup• Business improvement activities• Contract management

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Head contractor quality assurance systemUnder the Head Maintenance Contracts, the head contractors must have a quality system which includes a minimum number of inspections on all completed works comprising onsite inspections, desktop analysis and tenant satisfaction surveys. In addition to this, 100 per cent of vacant properties (Voids) are physically inspected.

Compliance and assurance activities to ISO9001:2008 standards are a key component of the Head Maintenance Contract. ISO 9001:2008 is focused on meeting customer expectations and delivering customer satisfaction.

Quality assurance audits The Authority’s agreed audit methodology for selecting physical and desktop compliance inspections on paid works orders per head contractor includes:

�� identification of high risk/high volume works orders, for example electrical safety devices, emergency premium claims and travel claims

�� trend analysis (month to month) across all licensed and general trades based on previous audit findings

�� seasonal issues, for example room heaters, flues, gutters and roof leaks

�� the Authority’s maintenance technical advisors (which includes licenced electricians and plumbers/gas fitters and experienced general tradesmen) conduct physical inspections on works orders to identify compliance, check measurements, quantity and review workmanship and quality

�� technical advisors conduct reviews to identify works order claims that do not comply with contractual business rules, general and technical specifications

�� desktop audits are conducted to identify issues relating to the accuracy and appropriateness of quantity or measurements and document compliance. Any issues identified are raised directly with the head contractor to rectify or can result in a physical inspection to verify.

Each of these audit methods may result in the Authority issuing a direction to re-perform or correct any matters identified, to the head contractor.

Payment authorisations The Authority’s staff checks works orders prior to payment for the following:

�� correct schedule of rates applied for location, quantities and measurements are claimed (including travel)

�� correct budget codes have been applied

�� required documentation supplied in line with schedule of rates requirements.

In addition, a physical inspection of the works must be completed where the works order contains any of the following criteria:

�� Void (vacant properties)

�� tenant liability charges (where tenants have been charged for repairs)

�� any budget code for insurance, planned or cyclical (quoted works)

�� any safety device or appliance installed

�� asbestos removal and remediation

�� works orders over $500 for a metro region or over $1,000 for a country region (excluding travel).

Works found to be non compliant are referred to the head contractor for rectification prior to payment being made.


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Non compliant items de�nitionsTable 25 provides definitions for each of the non compliant items within the Head Maintenance Contract.

Table 25: Definition of Head Maintenance Contract non compliant items

Item Definition

Labour claimed without authority Head contractor has added a labour claim to a works order without authorisation from the Authority.

Labour issued without details Authority staff has added a labour schedule of rates without sufficient detail.

Material value incorrectly claimed Receipt produced by head contractor does not match the value being claimed on the works order.

Schedule of rates incorrectly claimed Schedule of rates item has either been issued incorrectly by Authority staff or incorrectly claimed by head contractor.

Incorrect measurement claimed As a result of an audit of works, measurements have been found to be incorrect.

Schedule of rates added not related to original task Head contractor has added an additional Schedule of rates task to the works order, which does not relate to the original task requested by Authority.

Duplication of Schedule of rates Schedule of rates item has been duplicated either by issuing officer (the Authority) or by head contractor duplicating Schedule of rates item when returning works order.

Multiple of Schedule of rates cannot be claimed The Authority’s business rules do not allow for more than one of the Schedule of rates items to be claimed on each works order.

Incorrect or illogical location Location listed on works order at the time of issuance, or when returned by head contractor, does not reflect the correct location of works undertaken. This only affects Authority’s historical records.

Detail not provided as required by Schedule of rates The Authority’s specifications require certain documents to be returned upon completion of works. Documents may include receipts, inspection reports and compliance certificates.

Included in other Schedule of rates claimed New Schedule of rates task has been added to the works order. New works incorporate the original task, which has not been removed prior to returning the works order to the Authority.

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Item Definition

Incorrect Schedule of rates issued Incorrect Schedule of rates issued by the Authority. The head contractor has not corrected the works order prior to returning to the Authority. Incorrect issuance may be as a result of information supplied by tenant.

Incorrect measurement issued The Authority has issued works order with incorrect measurement or quantity, and head contractor has not amended prior to returning works order. Incorrect measurement or quantity may be as a result of information supplied by the tenant.

Faulty workmanship Works are of poor quality e.g. painting light switches.

Task on work order not done The head contractor has omitted to do the task on the works order.

Task on work order not complete The head contractor has not completed the task on the works order.

Work not to technical specifications The required work was not completed to technical specifications.

Warranty management Appliances or products that are covered under warranty have been removed and new products installed or have had service works completed when warranty should have covered the works.

Product or manufacturer defect There was a product or manufacturer defect causing the item or works order task to be non compliant.

System issue (1) A system issue caused the works order to be non compliant.

Variable travel The head contractor has claimed travel in conflict with the agreed travel rules.

Emergency premium The head contractor has claimed an emergency premium payment in conflict with the agreed business rules.

Note: (1) In 2015-16 ‘system issue’ was included as a non compliance reason.

Table 25: Definition of Head Maintenance Contract non compliant items (continued)


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Appendix 4: Housing statisticsTable 26: Public housing rental statistics 2010-11 to 2015-16 (1)

2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Rental waiting list by customer type

Family 11,710 11,359 10,198 9,174 7,875 6,782

Senior (2) 3,648 3,349 3,186 3,146 3,227 3,047

Single (3) 8,053 8,163 7,737 7,693 8,330 8,630

Pending assessment (4) 695 71

TOTAL 23,411 22,871 21,121 20,013 20,127 18,530

Rental waiting list by bedroom entitlement

Family 2 bedroom 5,886 5,825 5,170 4,677 3,801 3,370

Family 3 bedroom 4,048 3,821 3,405 3,123 2,649 2,100

Family 4 bedroom 1,384 1,359 1,294 1,072 1,060 992

Family 5+ bedroom 392 354 329 302 365 320

Senior 1 bedroom 3,006 2,841 2,757 2,764 2,868 2,723

Senior 2 bedroom 642 508 429 382 359 324

Single 1 bedroom 8,053 8,163 7,737 7,693 8,330 7,963

Single 2 bedroom Not reported Not reported Not reported Not reported Not reported 667

Pending assessment (4) 695 71

TOTAL 23,411 22,871 21,121 20,013 20,127 18,530

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Table 26: Public housing rental statistics 2010-11 to 2015-16 (1) (continued)

2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

New tenancies by customer type

Family 1,960 1,748 1,518 1,656 1,579 1,798

Senior (2) 850 736 717 661 686 686

Single (3) 507 675 633 603 455 389

TOTAL 3,317 3,159 2,868 2,920 2,720 2,873

Rental stock by bedroom number

Bedsitter 130 119 82 78 N/A N/A

1 bedroom 8,518 8,654 8,771 8,825 8,986 8,911

2 bedroom 11,198 11,304 11,332 11,361 11,360 11,311

3 bedroom 13,077 13,023 12,875 12,730 12,625 12,497

4 bedroom 2,966 2,979 2,975 2,976 2,964 2,973

5+ bedroom 650 670 679 698 709 711

TOTAL 36,539 36,749 36,714 36,668 36,644 36,403

Rental stock by dwelling type

House 12,314 12,193 13,827 13,701 11,868 11,705

Duplex 4,629 4,639 4,592 4,581 4,592 4,585

Medium/high-density (5) 19,596 19,917 18,295 18,386 20,184 20,113

TOTAL 36,539 36,749 36,714 36,668 36,644 36,403

Notes:(1) All stock numbers relate to public housing dwellings only.(2 ‘Senior’ includes entitlement to one and two bedroom for rental housing. A new tenancy management system was implemented which now records bedroom entitlement for this customer type. ‘Senior’

combines previously reported ‘Senior singles’ and ‘Senior couples’ for the period 2010-11 to 2014-15. (3) ‘Single’ includes entitlement to one and two bedroom for rental housing. A new tenancy management system was implemented which now records bedroom entitlement for this customer type.(4) These applications are pending assessment of bedroom entitlement.(5) Medium/high-density: Townhouses, flats and apartments.


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Housing Construction and Spot Purchase Completed

Public rental housing

General rental 255

Community housing general 0

Community Disability Housing Program 14

Joint venture 0

House and land for sale 5

Sub total 274

Aboriginal housing

Aboriginal housing – communities 130

Sub total 130

Community housing

Community Housing Program 0

Crisis Accommodation Program 12

State Community Housing Investment Program 0

Sub total 12

Affordable housing

Affordable housing 897

Sub total 897

Worker housing

Government Regional Officers’ Housing 29

Key worker housing 16

Sub total 45

TOTAL 1,358

Refurbishments Completed

New Living (retained properties)

Refurbishments 125

Sub total 125

Aboriginal housing

Aboriginal housing – communities refurbishments 170

Indigenous community housing organisations refurbishments

0

Sub total 170

Community housing

Community Housing Program 0

Crisis Accommodation Program 2

State Community Housing Investment Program 0

Sub total 2

TOTAL 297

GRAND TOTAL 1,655

Notes:(1) Community Housing General includes units transferred or earmarked for transfer to community

housing organisations. Some units originally designated as General Rental in previous years’ Annual reports, can change to Community Housing General, as the specific use is finalised. The distribution between General Rental and Community Housing General is subject to possible further changes.

(2) Aboriginal housing communities construction includes units in Aboriginal communities as well as units for employment-related accommodation and visitors centres (includes caretaker quarters for Visitors Centre).

(3) Figures include activity from all funding sources including Commonwealth and State Stimulus packages.

(4) Construction and spot purchase figures include units that have been transferred between programs.

Table 27: Construction, spot purchases and refurbishments in 2015-16 (1) (2) (3) (4)

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Head O�ce99 Plain Street East Perth 6004 Tel: (08) 9222 4666 Toll free: 1800 093 325

Metropolitan o�ces North Metropolitan

Mirrabooka8 Sudbury Road Mirrabooka 6061 Tel: (08) 9345 9655

City O�ce605 Wellington Street Perth 6000 Tel: (08) 9476 2444

JoondalupUnit 4/7 Wise Street (Corner of Collier Pass and Wise Street) Joondalup 6027 Tel: (08) 9404 3300

Midland21 Old Great Northern Highway Midland 6056 Tel: (08) 9250 9191

South Metropolitan

Fremantle42 Queen Street Fremantle 6160 Tel: (08) 9432 5300

Kwinana2 Stidworthy Way Kwinana 6167 Tel: (08) 9411 9500

Mandurah1/17 Sholl Street Mandurah 6210 Tel: (08) 9583 6100

South East Metropolitan

Cannington17 Manning Road Cannington 6107 Tel: (08) 9350 3244

ArmadaleShop 2a, Armadale Shopping Centre Jull Street (Cnr Third Road) Armadale 6112 Tel: (08) 9391 1600

Victoria Park269 Albany Highway Victoria Park 6100 Tel: (08) 9350 3700

Great Southern

Albany131 Aberdeen Street Albany 6330 Tel: (08) 9845 7144

Katanning6 Daping Street Katanning 6317 Tel: (08) 9891 1800

South West

Bunbury22 Forrest Avenue Bunbury 6230 Tel: (08) 9792 2111

BusseltonSuite 1A, 9 Harris Road Busselton 6280 Tel: (08) 9781 1300

ManjimupUnit 10, 30-32 Rose Street Manjimup 6258 Tel: (08) 9771 7800

Gold�elds

KalgoorlieUnit 1-2/84-90 Brookman Street Kalgoorlie 6430 Tel: (08) 9093 5200

Esperance92 Dempster Street Esperance 6450 Tel: (08) 9072 3000

Mid West

GeraldtonUnion Bank Building 201 Marine Terrace Geraldton 6530 Tel: (08) 9923 4444

Carnarvon30 Robinson Street Carnarvon 6701 Tel: (08) 9941 6500

Appendix 5: Our o�ces


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Meekatharra Main Street Meekatharra 6642 Tel: (08) 9956 5000

Pilbara

South HedlandCnr Brand and Tonkin Streets South Hedland 6722 Tel: (08) 9160 2800

Karratha3-5 Welcome Road Karratha 6714 Tel: (08) 9159 1700

East Kimberley

Kununurra16 Coolibah Drive Kununurra 6743 Tel: (08) 9166 5100

Halls CreekLot 72 and 73 Great Northern Highway Halls Creek 6770 Tel: (08) 9168 9300

West Kimberley

BroomeFrederick Street Broome 6725 Tel: (08) 9158 3600

Derby16-22 Loch Street Derby 6728 Tel: (08) 9158 4000

Wheatbelt

NorthamMcIver House 5 Elizabeth Place Northam 6401 Tel: (08) 9690 1900

Merredin27 Mitchell Street Merredin 6415 Tel: (08) 9081 3800

NarroginGovernment Building 11-13 Park Street Narrogin 6312 Tel: (08) 9881 9400

Government Regional O�cers’ Housing Central O�ce203 Nicholson Road Shenton Park 6008 Tel: (08) 9286 6000 Toll Free: 1800 644 708

KalgoorlieUnits 1-2/84-90 Brookman Street Kalgoorlie 6430 Tel: (08) 9093 5200

Karratha3-5 Welcome Road Karratha 6714 Tel: (08) 9159 1700

South HedlandCnr Brand and Tonkin Street South Hedland 6722 Tel: (08) 9160 2800

Keystart/Country Housing Authority2 Brook Street East Perth 6892 Toll Free (metro): 1300 578 278 Toll Free (country): 1800 158 200 Website: www.keystart.com.au Email: [email protected]

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Copies of this document are available in alternative formats upon request.

99 Plain Street, East Perth, WA 6004 Telephone: 08 9222 4666 TTY: 08 9476 2446 Email: [email protected]

housing.wa.gov.au

ANNUAL REPORT 201516

HOUSING AUTHORITY

www.housing.wa.gov.au

mailto://[email protected]

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