Government of Western Australia Department of Housing · 2011. 9. 29. · Glossary 4 Introducing...

1Housing Authority 2010–2011 Annual Report | www.housing.wa.gov.au

Government of Western Australia Department of Housing

www.housing.wa.gov.au

Housing Authority2010–11 Annual Report

Housing Authority 2010–2011 Annual Report | www.housing.wa.gov.au 2

Cover images

Six-year-old Logan gives mum Megan Martin a big hug.

The family (including Megan’s partner Peter Handerson) are among the first residents of the new 24-bed Halls Creek Workers Hostel. Megan works as a store manager in Halls Creek. Peter is training to operate heavy machinery. The hostel, also called Burraluba Yura Ngurra, offers supportive accommodation for Indigenous workers and trainees. It is the first of four hostels planned for the Kimberley region. As well as providing accommodation, the hostels will build social and economic independence and help to provide a safe environment for children like Logan and future generations.

The hostel is funded by the Western Australian Housing Authority and the federal Department of Families, Housing, Community Services and Indigenous Affairs. The Housing Authority owns the property. Wunan manages the hostel and the community of Halls Creek provides all kinds of support. A hostel manager and support workers stay on site. Photographer: Michele Seymour

ContentsStatement of compliance 3Glossary 4Introducing ourselves 5Our Customer Service Charter 6Chief Executive Officer’s overview 8Operational structure 10Organisational structure 12Executive profiles 13Performance management framework 16Agency performance summary 18 Summary of key performance indicators 19Agency performance – report on operations 24Our divisions 26– Strategy and Policy 28– Service Delivery 34– Commercial and Business Operations 42– Organisational Transformation 76Home ownership 81Significant issues impacting upon the Authority 82Independent auditor’s report 84Financial Statements 87Certification of key performance indicators 146Key performance indicators 147Ministerial directives 158Other financial disclosures 159Governance disclosures 165Other legal requirements 167Government policy requirements 170Housing statistics 173Our offices 178


For the year ended 30 June 2011

To the Hon Troy Buswell MLA Minister for Housing

In accordance with section 63 of the Financial Management Act 2006, I hereby submit for your information and presentation to Parliament, the Annual Report of the Housing Authority for the financial year ending 30 June 2011.

The annual report has been prepared in accordance with the provisions of the Financial Management Act 2006.

Grahame SearleChief Executive Officer

Statement of compliance


GlossaryATBC Aboriginal town-based communitiesCCB Combined Capital BidCHA Community Housing AgreementCHO Community housing organisationCOAG Council of Australian GovernmentsDBMS Disruptive Behaviour Management StrategyEKDP East Kimberley Development PackageEOC Equal Opportunity CommissionFTE Full-time equivalent (staffing numbers)GROH Government Regional Officers HousingHART Housing Advisory RoundtableHMA Housing Management AgreementJV Joint ventureNGO Non-government organisationNLS New Living Skills programNPA National Partnership AgreementNPARIH National Partnership Agreement on Remote Indigenous HousingNPASH National Partnership Agreement on Social Housing NRAS National Rental Affordability SchemePRBS Private Rental Brokerage SchemeRAESP Remote Area Essential Services ProgramRSP Regional Service ProvidersSHAP Supported Housing Assistance ProgramTRRP Town Reserve Regularisation Program


Through the State Government’s Affordable Housing Strategy 2010–2020 (Opening Doors), the Authority is focused on increasing the range and diversity of housing options—from social housing and private rental to affordable home ownership—for low-to-moderate income Western Australian households.

We provide public housing for those in need; affordable land and housing; housing finance through Keystart; rental assistance; and quality homes in regional areas for government employees so that they can deliver the necessary services to their communities.

We play a pivotal role in connecting stakeholders and partners from the private and not-for-profit sectors, local government authorities and other State Government agencies. The aim is to work together to deliver at least 20,000 more affordable homes by 2020 for low-to-moderate income earners.

Introducing ourselves

Our missionWorking in partnership to build economic and social prosperity by enabling Western Australians to have a place to call home.

Our roleWe have more than 1,200 staff working across the state to help achieve our goal of building a better community. Our primary role is to provide and support housing for Western Australians who cannot otherwise afford their own homes.

Our valuesAccountability – We take responsibility for our actions and outcomes.

Our vision - ‘Opening Doors’

Continuous improvement – We proactively incorporate innovation and best practiceto change.

Teamwork – We work together in a respectful, supportive and enjoyable environment.

Customer satisfaction – We strive to meet the needs of customers based on respect and fairness.

Open communication – We share knowledge honestly, clearly and constructively.

Respect – We positively acknowledge everyone’s contributions.

Housing Authority 2010–2011 Annual Report | www.housing.wa.gov.au

Our Customer Service CharterWe will strive to deliver a standard of service that our customers are proud to receive and we are proud to provide.

When you visit our office we will:zz Greet you and let you know if there may be service delays zz Keep waiting time to a minimum zz Treat you with respect, courtesy

and dignity zz Listen to you carefully and fully consider your issues zz Help you with accurate information on our products and services zz Ensure you understand documents

and forms zz Assist you to contact other officers or agencies if required

When you write to us we will:zz Reply to you promptly by phone or letter, depending on your request zz Invite you to contact us again if we can’t solve your problem

completelyWhen you phone us we will:zz Answer the phone promptly zz Try to solve your problem ourselves or refer you quickly to someone

who can zz Call you back if we cannot resolve your query promptly

6


How you can help us: zz Treat us with respect and courtesy;

we will do our best for you zz Tell us if your contact details change zz Let us know if there’s anything you don’t

understand zz Give us feedback on our service

If you don’t agree with an officer’s decision:zz We will help you access the review

process

In this report, the Authority fulfils its reporting obligation by identifying the relevant strategic outcomes and its contributions to them in 2010–11 through:

zzoperational reports which show the effectiveness and efficiency of our housing services (pages 16–23)

zzaudited key performance indicators (pages 146–157)

z audited financial statements (pages 88–145)


I am pleased to present the Authority’s annual report for the year ending 30 June 2011. This year must be recorded as a very successful one in view of the difficult task the Authority faced in implementing a massive construction program while consolidating many of its other activities.A major feature of the year’s activities was one of continuing change to help those most in need in our community.

We have had to change because our clients demanded it, our ever-increasing population has raised the demand for affordable housing and, despite economic growth, many people in the community are in need.

Change was effected across a wide range of operations as we worked towards a revitalised vision for the state—one in which every Western Australian has a place to call home.

A number of these initiatives will have an immediate effect on helping provide accommodation to low-income Western Australians, while others will provide the

means to help people move across the housing continuum from social housing to affordable private rental or home ownership.In terms of housing, our aim is simple. We want to house more Western Australians by creating new and better ways to increase the housing options available in the market.

A large commitment was the 10-year Affordable Housing Strategy (‘Opening Doors’) introduced by the State Government in May this year. The release of this strategy provides a government-wide response to housing affordability that greatly affects low-to-moderate income households, typically those on incomes between $35,000 and $90,000.

The first major initiative to be launched under the strategy was the release of a ‘call for submissions’ (EOI) for builders and developers to bring affordable housing proposals to Government.

To coincide with the availability of new housing stock under the EOI, the Authority also expanded the Keystart shared equity loan scheme.

Chief Executive Officer’s overview

‘Change was put into effect across a wide range of operations as we worked towards a revitalised vision for the state—one in which every Western Australian has a place to call home.’


This scheme benefits not only low-to-moderate income earners but the building industry as well. In this way, the strategy will see the State Government lead the way to drive long-term solutions—often in partnership—to increase affordable housing for low-to-moderate income earners.

Substantial additional funding, primarily through Stimulus package investments, has shown Governments’ enormous determination to do things better and to better meet demand. Without question, it is a challenging job.

There have been important accomplishments on other fronts too. We had great success in rebuilding the Kimberley town of Warmun, which was almost destroyed by floods in March. The Authority played an integral role in the Government’s emergency response to the crisis.

Another success was the completion and launch to market of Stage 2 of the Stella Orion Apartments in Success. The development was an innovative approach to affordable and social housing and won the

Best Multi-unit Development under $50 million in the 2011 Master Builders-Bankwest Excellence Awards in Construction.

In May, the Government introduced a revised Disruptive Behaviour Management Strategy to help curb antisocial behaviour in public housing. This policy clearly sets out how the Authority will respond to incidents based on their severity and frequency. In addition, a new reporting line managed through Housing Direct streamlines our complaint management process.

The major change to a head contractor model for our maintenance system was less successful in its implementation. We had some information technology and communication problems which adversely impacted on some of our tenants. Overall however, we are achieving outcomes, including significant savings of $5 million, with further savings expected in the longer term.

While we acknowledge there are still areas where attention is required, this report also gives me an opportunity to focus on the genuinely good things that staff employed

by the Authority accomplish through their daily labours. For example, a staff member arranged to replace a broken smoke alarm in a house in Broome. Four days later, the house was extensively damaged by fire but the young family—a single father with three young sons— was warned and able to escape. This incident shows the vital nature of much of our routine work and its contribution to the welfare of the people of Western Australia.

Both internally and externally the Authority is undergoing change and a corresponding investment in staff was not forgotten. We continued to conduct workshops throughout the year to build more efficient leadership skills to help manage the ongoing transformation.

I believe the Authority met our challenges in a positive way during the year and our staff can be justifiably proud of their efforts.


The Housing Authority is responsible for:

zz creating social and affordable housing in Western Australia

zz setting policy and regulating community housing

zz providing housing for State Government employees in regional and remote areas of the state

zz leading the State Government’s commitment to increasing the range and diversity of affordable housing for low-to-moderate income households in Western Australia.

Enabling legislationThe Housing Authority is a statutory authority established under the Housing Act 1980. The Act aims to improve housing standards and conditions in Western Australia; encourage the development and redevelopment of land for housing and related purposes; and carry out agreements and arrangements with respect to housing.

In 2006, under the Machinery of Government (Miscellaneous Amendments) Act 2006,

Operational structure

the former State Housing Commission was renamed the Housing Authority after it was merged with the former Government Employees Housing Authority.

The Director General of the Department of Housing, pursuant to section 51 of the Public Sector Management Act 1994, is the Chief Executive Officer of the Housing Authority.

The Housing Authority is accountable to Parliament through the Minister for Housing.

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

zz Country Housing Act 1998zz Government Employees’ Housing Act

1964zz Housing Act 1980zz Housing Societies Repeal Act 2005

(Repeal of the Housing Loan Guarantee Act 1957 and Housing Societies Act 1976).

Responsible ministerThe Housing Authority and legislation administered are under the control of the Hon Troy Buswell BEc MLA Minister for Transport; Housing.

Changes to legislation administeredHousing Societies Repeal Act 2005Part 3 of the Housing Societies Repeal Act 2005 came into effect on 10 July 2010 and repealed the Housing Loan Guarantee Act 1957 and the Housing Societies Act 1976 (all housing societies operating under the Housing Societies Act 1976 have been wound up).

Aboriginal Housing Legislation Amendment Act 2010The Amendment Act came into effect on 1 July 2010 and amended the Housing Act 1980 and the Aboriginal Affairs Planning Authority Act 1972. The Amendment Act meets the requirements of the National Partnership Agreement on Remote Indigenous Housing, a 10-year program established under the Council of Australian Governments’ reforms in 2008 to deliver up


to 4,200 new houses and refurbish up to 4,800 existing houses nationally in remote Aboriginal communities.

The Amendment Act establishes a new framework consisting of five agreements to facilitate ongoing housing reforms in remote Aboriginal communities without affecting land tenure or creating any interest in the land. The agreements are:

zz Housing Management Agreement (HMA) which, although voluntary, must be in place before the Housing Authority can assume management of the letting and leasing of housing on Aboriginal land on behalf of an Aboriginal entity

zz Agreement to Construct between the Housing Authority and the relevant Aboriginal entity to cover the construction of new housing at a specific location, which is then managed under an HMA

zz Tenancy Agreement to establish the legal rights and responsibilities of the Housing Authority and the Aboriginal tenant

zz Service Level Agreement for the Housing Authority to engage contractors to

carry out obligations such as property maintenance under a Tenancy Agreement

zz Joint venture or other arrangement which enables the same range of activities on freehold land owned by an Aboriginal entity.

Housing Amendment Regulations 2011 At the request of the Commonwealth (as part of the funding arrangement under the National Partnership Agreement on Remote Indigenous Housing), the Amendment Act limited the use of HMAs to certain land categories—Crown land or freehold land owned by the Aboriginal Lands Trust, the Aboriginal Affairs Planning Authority or the State.

Subsequent to the resolution of Commonwealth issues relating to the Amendment Act, the Housing Amendment Regulations 2011 (which commenced on 28 May 2011) extended the use of HMAs to freehold land owned by other Aboriginal entities.


Organisational structure

Strategy and Policy Organisational Transformation

General ManagerTania Loosley-Smith

Affordable Housing Strategy

Strategic Human Resources

Inter Governmental

Relations

Project Management

Office

Housing System Reform

Office of the Director General

Integrity and Governance

Market Design and

Development

Business Planning and Improvement

Aboriginal Housing Policy

Communications and Marketing

General ManagerDuncan Mackay

Commercial and Business Operations

Land and Housing

Development

HousingPrograms

Complex Projects

General ManagerPaul Whyte

Business Operations

Built Form and Civil

Construction

Service Delivery

General ManagerSteve Parry

Aboriginal Housing and

Client Services North

Client Services South

Service Delivery Central

Minister for HousingHon Troy Buswell

Chief Executive Officer Grahame Searle


Executive profiles

Grahame SearleChief Executive OfficerGrahame Searle has a Bachelor of Business and extensive experience in service delivery, leadership and organisational change.

As Chief Executive Officer, Grahame is focused on forging new and innovative ways to meet the increasing demand for housing, including establishing new partnerships with community housing organisations across the state. His vision of Opening Doors is accompanied by a mission statement of ‘working in partnership to build economic and social prosperity, thus enabling Western Australians to have a place to call home’.

Grahame has a strong background in information technology and, in particular, integrating computer systems for customer service delivery. He has extensive experience in managing information technology projects in Victoria and Western Australia.

In the decade from 1998 to 2008, he drove the transformation of the Department of Land Administration from its origins as a traditional public service agency to Landgate, a statutory authority.

He is an honorary fellow of the Spatial Sciences Institute of Australia, past president of the Institute of Public Administration (WA Division), board member of the Western Australian Treasury Corporation and a member of the Western Australian Planning Commission.

Grahame is focused on forging new and innovative ways to

meet the increasing demand for housing,

including establishing new partnerships with

community housing organisations across

the state.

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Tania Loosley-SmithGeneral Manager, Strategy and Policy/Deputy Chief Executive OfficerIn August 2008 Tania joined the Housing Authority and was appointed General Manager of the Strategy and Policy divisionin December 2009.

This division is responsible for providing leadership in the implementation of the Opening Doors Affordable Housing Strategy; creating new policy options, pathways and market-based solutions to help address the demand for social and affordable housing; driving the growth of social housing stock; and shaping and negotiating national reform priorities and funding arrangements.

Tania is the Western Australian housing representative on the Policy and Review Working Group and the Housing Ministers’ Advisory Committee.

Tania has a Bachelor of Social Science and was selected in the inaugural WA cohort of the Australian and New Zealand School of Government (ANZSOG) Executive Masters in Public Administration. She joined the public service in 1994 and has worked in the Disability Services Commission and Landgate.

Steve ParryGeneral Manager, Service DeliverySteve Parry was appointed General Manager, Service Delivery, in January 2010.

Steve has had substantial experience across the Authority in a career that has taken him from regional work to leadership roles in key areas of service delivery, housing management, Aboriginal housing and infrastructure delivery. In his current role, Steve is responsible for driving and overseeing a diverse portfolio focused on housing service delivery and Aboriginal housing services. The combined portfolio is responsible for managing and maintaining 41,234 social housing homes, consisting of public housing rental properties, joint venture and community housing properties and homes in remote Aboriginal communities.

In recent years, Steve has been closely involved in a number of major housing initiatives, in particular the National Partnership Agreement on Remote Indigenous Housing. In 2009–10 the Authority outperformed the nation and received a $4 million bonus from the Commonwealth for these results. In 2010–11, the Authority exceeded its targets, delivering 84 new homes and 271 refurbishments across remote Aboriginal communities.

Steve holds a Graduate Diploma in Social Science (Housing Management and Policy) and is a Member of the Australian Institute of Company Directors and the Australasian Housing Institute.


Duncan MackayGeneral Manager,Organisational TransformationDuncan leads the Organisational Transformation division, which focuses on developing the culture and capabilities required to take the agency into the future. The division initiates and drives change through corporate planning and performance, business improvement, communications and marketing, and human resources.

Duncan has broad experience in organisational change and strategy, communications and market regulation. Before joining the Authority in April 2011, he was the Director of Consumer Protection Policy at the Department of Commerce for two years. He was responsible for policy and legislative reform in many areas of consumer affairs, including aspects of the land and housing markets.

Between 2001 and 2008, Duncan played a major role in helping transform the State Government agency, now Landgate, that provides services for the titling, mapping and valuation of land. Duncan’s role involved developing and implementing strategic change, corporate planning, organisational development, governance reform and change management for staff and stakeholders. Before joining the Western Australian public service, Duncan worked in the media as a journalist, historian and author. He holds postgraduate qualifications in political science and journalism.

Paul WhyteGeneral Manager,Commercial and Business OperationsPaul has wide experience in the private and public sectors. Before joining the Housing Authority in September 2009, he was Acting Chief Executive Officer at Landgate and held the permanent position of Executive Director, Business Development.

Paul was with Landgate (formerly the Department of Land Information and, before that, the Department of Land Administration) from 2001.

Prior to this, he was a member of the Corporate Executive at the Valuer General’s Office.

He has held the position of policy adviser to the Western Australian Treasury Corporation and has worked in the private sector as a management consultant and 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.


Outcome Based Management FrameworkThe Authority enhances the quality of life and wellbeing of all Western Australians by satisfying the fundamental human need for shelter. In the wider context, affordable, safe and secure housing contributes to a better society by providing the basis for a better quality of life.

Specifically, we contribute by providing housing through our rental program, home finance and land development activities for eligible Western Australians who may not otherwise be able to afford housing.

We contribute through Government Regional Officers Housing (GROH) which provides government employees with suitable housing in country areas. This supports the Government’s commitment of delivering public services such as education, health and policing throughout the state.The diagram on page 17 illustrates our key outcome, services and performance indicators for the community of Western Australia.

Performance management framework


Government goal, outcome, services, effectiveness and efficiency measures

Results Based Service Delivery

Greater focus on achieving results in key

service delivery areas for the benefit of all Western

Australians

Government goal Service Efficiency measuresOutcome

Effectiveness measures

Rental Housing Operating cost per rental property

Home Loans Operating cost per current loan account

Land Operating cost per lot developed

Government Regional Officers Housing Operating cost per property

Desired housing outcome for governmenthousing eligible Western Australians

The extent to which the Housing Authority is responsive to the housing needs of eligible Western Australians[total housing assistance to the public

rental waiting list]

Waiting time for accommodation [applicants housed]

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 employees[total demand relative to current supply]

Changes to Outcome Based Management FrameworkThe Housing Authority’s Outcome Based Management Framework did not change during 2010–11.


Agency performance summary

Actual results versus budget targetsThe following performance information (financial) 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 targets

2010–11 Target $’000 2010–11 Actual $’000 Variation $’000 Explanation

Total cost of services 1,105,058 1,399,391 294,333Transfer of assets to community housing organisations not forecast in the 2010–11 targets

Net cost of services 143,811 386,807 242,996 See aboveTotal equity 12,590,901 12,717,684 126,783

Net increase (decrease) in cash held

(67,101) (289,684) (222,583)

Cash assets at the beginning of the reporting period higher than forecast due to project completions and payments occurring in the next financial year


Summary of key performance indicatorsOutcome: Housing eligible Western AustraliansEffectiveness indicator 1

The extent to which the Housing Authority is responsive to the housing needs of eligible Western Australians

Actual TargetReason for variance

2009–10 2010–11 2010–11

Total housing assistances

22,378 16,555 19,554

The ratio was lower than the target as there was a decrease in the number of housing assistances. Keystart more than doubled the value of its loan portfolio from $1.09 billion to $4.1 billion in the two previous financial years to assist borrowers during the severe credit tightening caused by the global financial crisis. Such a record level of activity significantly brought forward Keystart’s 100 per cent loan product’s future demand. This resulted in the decrease in the number of Keystart loans approved in 2010–11. The other contributing factors were the number of public rental occupations, bond assistance loans and lower quartile residential land sales.

Public rental waiting list at June previous financial year

21,728 24,136 24,559

Ratio 1.03 0.69 0.80


Effectiveness indicator 2

Effectiveness indicator 3

Waiting times for accommodation – applicants housed


2009–10 2010–11 2010–11

Average (weeks) 93 113 103The average and median wait times have been impacted by the decrease in the percentage housed in the less than one month category and an increase in the 3–5 years and 5+ years categories. This resulted in the percentage housed over one year to increase to 63.85 per cent. There have been more long-term applicants housed during the year.

Median (weeks) 72 91 86

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 employees


2009–10 2010–11 2010–11

Demand 5,227 5,332 -Demand for additional accommodation remained relatively steady from the previous year, while the Authority provided a net increase of 155 allocated units.

Supply 4,944 5,099 -

Ratio 95% 96% 95%


Service 1Rental HousingEfficiency Indicator 1

Operating cost per rental property


2009–10 2010–11 2010–11

Nominal rental cost $12,505 $12,539 $11,535

The target included the properties to be asset transferred to the community housing organisations to grow the community housing sector (a key requirement of Commonwealth Economic Stimulus funding) while the 2010–11 result excludes these properties. The treatment of the asset transfers was not determined at the time of budget preparation. Predicted stock numbers not meeting the original forecast also contributed to the variance. Supplies and services and employee benefits expense were also higher than originally budgeted.


Service 2Home LoansEfficiency indicator 2

Service 3LandEfficiency indicator 3

Operating cost per current loan account


2009–10 2010–11 2010–11

Nominal loan cost $1,330 $1,575 $2,167

The original budget target is higher due in part to the inclusion of loan origination fees, which are not included in the result. The cost of loan administration has also reduced from the 2010–11 original budget target due to the transfer of the Housing Authoritys home loan business to Keystart.

Operating cost per lot developed


2009–10 2010–11 2010–11

Nominal loan cost $14,231 $12,857 $13,856

Mainly due to 2,228 lots yielding in 2010–11 compared to the original budget target of 1,990 with development brought forward mainly at Golden Bay, Banksia Grove and Beachlands, and partly due to a marginal increase in operating costs of 3.89 per cent.


Service 4Government Regional Officers Housing (GROH)Efficiency Indicator 4

Operating cost per property


2009–10 2010–11 2010–11

Nominal property cost

$26,899 $26,522 $23,355Attributed to increases in rental expenses and depreciation.


Agency performance – report on operations

Introduction–Opening DoorsWith the strong economic growth of the past decade, increases in property prices and rents have consistently outstripped wages growth, creating a housing affordability concern for more Western Australians and an increase in the social housing waiting list.

The release this year of the State Government’s Affordable Housing Strategy 2010–2020: Opening Doors to Affordable Housing is a first for Western Australia. It provides for a system-wide response to increase the number of key entry points to affordable rentals and home ownership. The strategy is based on four key themes:

zz strong social housing sectorzz affordable landzz affordable rentalszz affordable home ownership.

The Minister for Housing launched Opening Doors on 11 May 2011. The strategy takes an innovative across-government and system-wide approach to address the growing decline in housing affordability over the past 30 years. It sets a direction to strengthen social housing and increase the availability of affordable land, rentals and home ownership opportunities for low-to-moderate income households and aims to deliver at least 20,000 more affordable homes by 2020.

A key feature of the strategy is partnership with the private and community housing sectors. This network will boost the supply of affordable housing and the number of entry points.

Collectively, Opening Doors will re-establish social housing as a pathway, rather than a destination, for tenants with financial means. Tailored interventions will support mobility from affordable and market-rate rental towards home ownership. The ultimate goal of the strategy is for low-to-moderate income households to have the opportunity to choose the type of housing that best meets their needs and empowers them to gain greater self-sufficiency. The Authority is also working with other government agencies to clear the way for planning medium-density mixed-use or multi-unit developments and trialling zoning requirements and incentives for affordable housing.


Achievements in 2010–11 include:

zz completion and launch to market of Stage 2 of the Stella Apartments in Success. In partnership with the private sector, this development delivers 900 mixed-use residential units of various configurations (winner of the Best Multi-unit Development under $50 Million in the 2011 Master Builders-Bankwest Excellence Awards in Construction)

zz participation in an affordable housing trial in Goderich Street, East Perth, as an equity partner with the City of Perth

zz asset transfers of 1,041 to the community housing sector to enable further growth in community-based social housing

zz fast-tracking the release of affordable housing lots (80 per cent of which are sold below the median land price) through the Housing Authority at Henley Brook, Hammond Park and Golden Bay.


Our divisions

The Authority is organised into four broad divisions which each contribute to supporting the goals of the State Government through the Opening Doors strategy.

Strategy and Policy – Page 28This group provides advice, coordination and leadership for Opening Doors by:

zz creating new policy options, pathways and market-based solutions to help increase affordable housing options

zz negotiating national reform priorities and funding arrangements.

Commercial and Business Operations – Page 41This group is responsible for a wide range of commercial operations including:

zz complex projects such as the State and Commonwealth Stimulus Project and larger construction projects

zz built form and civil construction to increase housing stockszz land and housing development including the New Living Program,

which is the largest urban renewal program ever undertaken in WAzz housing programs such as housing for government employees in

regional WA and community housing.

The Business Operations arm is responsible for providing corporate support and governance to the organisation.

Organisational Transformation – Page 75This group focuses on developing the culture and capabilities required to take the agency into the future. The division initiates and drives change through:

zz corporate planning and performancezz business improvementzz communications and marketingzz human resources.

Service Delivery – Page 33Service Delivery enables clients to progress along the housing continuum by:

zz assisting eligible clients to access public rental housing zz managing and maintaining the Authority’s rental properties zz providing information and assistance to ineligible clients so that

they can access alternative housing and rental options.

Service Delivery comprises a number of business areas, related sites and specialist areas. It is managed centrally by Service Delivery Central.


Strategy and Policy

Strong social housing sectorAffordable rentalsAffordable home ownershipMore affordable pathways and entry pointsBetter use of government land and housing assets

27

28 30 31 31 32


Strategy and Policy

During the year Strategy and Policy took the lead in overseeing the implementation of the Opening Doors strategy.

The 10-year strategy aims to combine the resources of Government with the expertise, resources and experience of the private and not-for-profit sectors to increase the supply and diversity of affordable housing across regional and metropolitan WA.

With Opening Doors, the Authority is working with clients, other government agencies and community housing organisations (CHOs) to provide a wider diversity of accommodation, pathways and transition options for people in line with their unique needs and circumstances, and grow more community-based social and affordable housing.

Opening Doors was based on recommendations from the Social Housing Taskforce’s report, More than a roof and four walls, and the Housing 2020 directions paper.

Strong social housing sectorMajor achievements of the division towards building a stronger social housing sector in

2010–11 include:

zz implementing Community Housing Agreements, known as CHAs. Under the agreements, more than 1,041 dwellings, funded largely by the Commonwealth Government’s Nation Building program, were transferred to seven community housing organisations in this financial year. Performance agreements ensure that each property is efficiently managed and that any surplus income generated from the properties is used to attract investment in projects to house people in need

zz developing a Tripartite Agreement. The Authority has developed a financier side deed between the Government, financiers and community housing organisations to enable and encourage private sector, institutional and philanthropic investment in community housing projects. Such a deed is in addition to the terms set out in the CHAs. It makes it clear that the Government retains a public interest in any asset transferred to a community housing organisation under the CHAs The deed also means that such properties can be used for security in

favour of the financier, provided that the financier is a party to the deed

zz introducing an allocations framework. As well as CHAs, complementary regimes for allocating public and community housing were introduced to ensure we can meet our commitments to the Commonwealth and State Governments to provide housing to certain groups, reduce under-utilisation of social housing stock and improve waiting list management

zz providing input into the Residential Tenancies Amendment Bill 2011 in line with Government policy. The Authority has worked with the Department of Commerce and Parliamentary Counsel to introduce provisions that will allow greater flexibility in terminating social housing tenancy agreements when appropriate, including:– the removal of some procedural

constraints from the process of seeking termination of a tenancy for disruptive behaviour and illegal uses of social housing tenancies

– the insertion of new provisions that deal with tenants who have become ineligible for their social housing properties

‘I feel more independent,

more free and for

every dollar I spend on the

mortgage, I’ve bought a

brick.’

‘Opening Doors’ neatly sums up what staff at Housing are all trying to do. But it’s not just a catchy slogan: there are real doors being opened and real people walking through them.

Eight years ago, Neil Gardner was living in one of the Authority’s older units in Palmyra.

Then, with steady work in a government department, he was able to buy his own home, a nice two-bedroom unit in Hamilton Hill.

‘It’s been a good learning curve—tough at times—but I know I’m better off having equity in my own home,’ Neil says.

‘I’ve put carpet in, have my own washing machine and having two bedrooms means I can get a flatmate if I want.

‘Owning my own place and having a stable base allows me to borrow for holidays and so on if I need to. It’s a nice feeling.’



–zthe insertion of new provisions that deal with cases where the Authority has made reasonable offers to transfer tenants to alternative premises for legitimate reasons.

zz reviewing the Supported Housing Assistance Program (SHAP). The Authority has commenced a review of its existing tenancy support programs, including SHAP. The review aims to develop a statewide program that better meets tenants’ needs.

zz coordinating the Housing Advisory Roundtable (HART). HART is a peak stakeholder advisory group formed to engage with, and provide advice to, the Authority on strategic social housing policy issues. Such issues include the Community Housing Growth Initiative, the Equal Opportunity Commission Section 80 Committee Status Report, the National Affordable Housing Agreement, other National Partnership Agreements, and the development of a Housing Needs Register.

zz establishing the Growth Partnership Forum. This body was formed in November 2010 to facilitate strategic discussions on a quarterly basis between

the Minister for Housing, community housing organisations who have signed CHAs, and the Authority’s senior management. The community housing organisations involved are: z– Foundation Housing Limitedz– Access Housing Limited z– Southern Cross Housing Limitedz– Great Southern Housing z– Stellar Living (affiliated with

Centrecare)z– Community Housing Limitedz– Bethanie Housing Group.

Affordable RentalsMajor achievements in increasing the range of affordable rental opportunities in 2010–11 include the following initiatives:

zz National Rental Affordability Scheme (NRAS). After a slow uptake in earlier rounds, WA saw a strong response in applications in 2010–11. The Commonwealth and State Governments jointly assessed 41 Western Australian applications in rounds 3 and 4. Delivery time frames were altered due to floods in Queensland. WA is now to deliver

4,500 dwellings by 30 June 2014 and the remainder by 30 June 2016

zz Private Rental Brokerage Scheme. The Authority laid the groundwork for a pilot scheme under which the Authority will initially broker the leasing of 120 properties (with the potential to increase to 500 over three years) to assist over-income public housing tenants into the private rental market

zz housing for regional employees of non-government organisations (NGOs). State Government Royalties for Regions funding of $35 million will be allocated to deliver 58 houses in eight priority locations in the Pilbara and the Kimberley regions. The houses will be made available to NGOs at a heavily discounted rate specifically for rental to NGO employees. The initiative aims to ensure critical community services are maintained in high-cost locations that are struggling to retain staff because of a shortage of affordable housing

zz East Kimberley Development Package. This model for transitional housing was completed during the year; the tender to deliver the program will be advertised


during 2011–12. The program will provide housing and support services to eligible Aboriginal workers. It aims to encourage independence and help residents to make the transition from public housing to private rental or home ownership.

Affordable home ownershipOpening Doors sets out a number of strategies to assist low-to-moderate income households into home ownership. In 2010–11, the Authority began exploring some of these options, including expanding the current shared equity scheme, perpetual shared equity schemes and the feasibility of community land trusts in Western Australia.

More affordable pathways and entry pointsMajor activities for 2010–11 include:

zz participation in a national approach to housing affordability. The Authority has worked closely with State Governments and the Commonwealth to develop options to improve housing affordability for all Australians. Much of this work revolved around potential taxation and planning changes, which tend to be a

Commonwealth responsibility. The aim was to influence the COAG agenda as well as to provide input into the review of the National Affordable Housing Agreement and the various National Partnership Agreements

zz research into workforce disincentives. The Authority is examining ways in which income support and public housing policies may combine to act as disincentives for public housing tenants to undertake employment. This research will contribute to the following outcomes:z– improved training and workforce

outcomesz– changes to rent-setting policies to

reduce workforce disincentivesz– improved transition from public housing

to other affordable housing optionszz assistance to residents of caravan

parks. The Authority reconvened the Interagency Working Group on Caravan Park Closures. The aim is to ensure better coordination at State and local levels to assist residents affected by caravan park closures. The group

included representatives from the Departments of Commerce, Regional Development and Lands, Planning, and Local Government. The group’s role is to promote a coordinated response through an Assistance Protocol for Caravan Park Closures, investigate the supply of future sites, and ensure effective regulation and compliance. The group has been liaising with long-term residents upon the declared closure of Aqua Caravan Park at Furnissdale and the commencement of redevelopment proposals at the Belvedere Caravan Park in Mandurah

zz increasing options for public housing tenants who have become income ineligible. As part of a program to transfer public housing assets to the community housing sector, 30 per cent of dwellings were allocated to public housing tenants who had become ineligible due to a change of circumstances. This initiative will help to ensure that public housing properties are available to those most in need and that community housing providers have sufficient revenue to leverage growth.


Better use of government land and housing assetszz completion of Stage 1 of the Housing

Demand Model. The model forecasts demand for affordable and social housing up until 2031. Developed with Curtin University, the model will enable the State Government to better target the development of land and housing assets to projected areas of greatest need

zz Housing Industry Forecasting Group. Comprising industry and key State Government departments, this group continues to be a reliable source of robust housing supply forecasts for the metropolitan area. The group provides valuable information to inform policy makers and industry on supply trends.


Service Delivery

Aboriginal housingNew construction, refurbishments and employment and workforce developmentBond assistanceDisruptive behaviour management strategyHousing DirectMaintenanceNational Partnership Agreement on HomelessnessAppeals

33

34

35 38 38 38 39 40 40


Service DeliveryThe Service Delivery division is responsible for the provision of public housing to approximately 40,000 households across Western Australia, as well as delivering and managing housing in remote Aboriginal communities.

The management of the public housing tenancies and associated maintenance is delivered via 10 regional offices across the state. The Service Delivery Central arm, based in East Perth, supports and manages the regional network in key areas such as operational training, policy and performance analysis and measurement. Service Delivery Central’s focus is on driving and managing change within the regional offices to provide excellent service to our customers and the wider community.

Housing and infrastructure in remote communities is managed via annual construction programs focused on delivering new and refurbished homes in partnership with the Commonwealth Government.

Aboriginal housingNational Partnership Agreement on Remote Indigenous HousingThe National Partnership Agreement on Remote Indigenous Housing (NPARIH) is a COAG agreement valued at $496 million for WA up to 30 June 2013.

We delivered a significant capital works and reform program under this partnership in 2010–11. This included:

zz construction of 84 houses (target of 76 new houses exceeded by 11 per cent)

zz refurbishment of 271 houses (target of 258 houses exceeded by 5 per cent)

zz receipt of a $4.02 million bonus payment from the Commonwealth as a result of meeting or exceeding all construction targets in 2009–10. This payment has been used primarily to deliver additional houses.

On 21 October 2010 the Authority’s Indigenous National Partnership team was awarded the Australasian Housing Institute’s award for professional excellence for ‘Leading Housing Solutions for 2010’.


The Authority also negotiated 34 HMAs with remote Aboriginal communities, allowing us to manage housing on Aboriginal land to a public housing standard.

Employment-based accommodationzz Burraluba Yura Ngura Halls Creek. The

Authority constructed a 24-bed hostel to provide safe, supported and affordable accommodation for Aboriginal workers, trainees and apprentices five kilometres from Halls Creek in the heart of the Kimberley. The 24-bed hostel is due to open in July 2011. The hostel will be managed by the Wunan Foundation, an Aboriginal development organisation in the East Kimberley. The hostel is part of an overall commitment to provide 100 employment and training-related beds in the Kimberley as part of NPARIH

zz Fitzroy Crossing. The Authority is constructing units to provide accommodation for eight residents (two lots of four-bedroom units), a shared kitchen facility and accommodation for the house parent at the Pindan Workers’

Camp. The facility is due to open in September 2011.

New construction, refurbishments and employment and workforce developmentThe Authority used a close relationship-management approach (early builder involvement) with the private sector to build new projects and undertake refurbishments. The Commonwealth has mandated an average 20 per cent Aboriginal employment level for all housing capital works projects. During 2010–11, the Authority has achieved an average 36.8 per cent Aboriginal employment rate and at 30 June 2011, 1,039 Aboriginal people were employed in NPARIH projects.

Housing management servicesThe property and tenancy management branch of Aboriginal Housing Services delivers comprehensive services to 2,494 houses in 130 communities. Over five years, $66.6 million in funding provided by NPARIH will be spent on repairs and maintenance, service delivery, and property and tenancy management reform activities. For managed communities, the target is to have 100 per

cent of tenancy management, rent collection and tenant support services in place for all houses by 2018.

Direct managementIn January 2009 the Authority adopted a new way of delivering housing management services to remote Aboriginal communities by directly managing the properties using departmental staff in the West Kimberley, Gascoyne, Mid-West and Halls Creek regions. At the end of the 2010–11 financial year, this direct management system covered 1,016 properties in 33 communities—at a cost of $8.13 million— for repairs, maintenance and operational support.

Contract servicesThe Authority currently engages six Regional Service Providers (RSPs) across the state to provide housing management services to 1,417 properties. The RSPs are mainly Aboriginal corporations with boards largely made up of representatives from local Aboriginal communities. In 2010 Community Housing Limited was engaged in the north-east Kimberley following a restricted procurement process targeted at existing


Community Housing Growth Providers. The RSPs are funded $4,000 per house annually for repairs and maintenance, and $4,000 per house annually for operational support, with a total funding of $11.34 million released to the Regional Service Providers this year.

Tenancy support programsThe Authority funded six service providers and one community throughout the state to deliver the In-home Practical Support program. This $1.73 million program provides tenancy support to Aboriginal families and individuals to improve housing in remote, regional and urban areas. It does this through practical assistance, informal counselling or advice, group activities, linking people into available community resources, support networks and other programs.

Under the terms of the NPARIH, all prospective tenants moving into a new residence will be offered the New Living Skills (NLS) program through the housing management team which will provide a comprehensive induction to the property.

The tenancy management team also undertakes a follow-up visit with tenants who participate in the NLS program to promote the In-home Practical Support program and offer further support if required.

Make Good ReformThis is a component of the NPARIH to refurbish housing owned and managed by urban Indigenous community housing organisations. The five major organisations affected by the reform have agreed to work towards registration as a community housing provider under the Western Australian Community Housing Regulatory Framework. Up to $92.84 million will be spent on supporting the business improvement activities of these organisations, as well as refurbishing up to 420 urban Aboriginal community housing properties. As at 30 June 2011, refurbishments had been completed on 103 properties, with contracts awarded for an additional 48 properties.

Aboriginal Town-Based Communities The Aboriginal Town-Based Communities (ATBC) project was allocated $35.33 million over 2007–11 to improve Community and Housing Management services. The Town Reserve Regularisation Program’s aim is to upgrade essential services (power, water and sewerage) in ATBCs to the equivalent standard of the adjacent town. The long-term objective of the project is to transfer the responsibility of the services to the relevant utility or local authority.

To 30 June 2011, $22 million has been spent. All planned housing and community services have been delivered, which includes power upgrades (completed in 25 communities) and water upgrades (in one community). Six more communities have been scheduled for water upgrades using the remaining funds.


On 13 March 2011 a flood in Warmun in the East Kimberley caused significant damage to the town’s housing and infrastructure. Some 300 community members were evacuated to the Garrjang Workers Village in Kununurra. As a result of damage, 34 homes are to be demolished and rebuilt and 31 homes refurbished. Seventeen of these homes were rebuilt by 30 June 2011 and eight refurbished. Reconstruction of infrastructure and repair or replacement of additional houses will continue over the second half of 2011.

The Warmun Aboriginal Community Re-establishment Taskforce was formed by Cabinet on 21 March 2011 to oversee the rebuilding of the Warmun community. To enable Warmun residents to move back as soon as possible, self-contained temporary accommodation was commissioned in the town while new homes are built or existing homes refurbished. A new Community Layout Plan was developed in close consultation with the Warmun Community Council and community members. The Housing Authority has worked with the Warmun community and contractors to employ as many community members in the clean-up and reconstruction as possible.


Bond assistanceThe Bond Assistance Loan Scheme assists eligible Western Australians to access the private rental market. It involves an interest-free loan for private rental bonds and two weeks rent in advance. In 2010–11, a total of $12.8 million was spent on 11,495 private rental and bond loans against a budget of $12.9 million and expected demand of 12,600 applicants. This was a slight reduction from last year’s total of 12,491.

Expenditure on bond loansThe total expenditure and number of new bond loans includes:

zz $8.04 million to 11,120 people to access the private rental market by providing interest-free bond loans (against a budget of $8.05 million and 12,300 bond clients)

zz $4.33 million to 10,736 people to cover the required two weeks rent in advance (against a budget of $4.49 million and 11,600 applicants)

zz $293,100 to cover reimbursement of pre-paid bonds for 326 clients of whom 237 also received two weeks rent in advance at a value of $114,959

zz $57,341 to 49 people for the Private Rental Aboriginal Assistance Loan scheme.

Bond loan accountsIn 2010–11, a total of 21,037 bond loans were managed with a value of $15.55 million.

zz $11.26 million was repaid during the year (against a target of $8.5 million)

zz 60 per cent of all loan repayments were made through direct deductions from Centrelink.

Disruptive behaviour management strategyThe Government’s disruptive behaviour management strategy aims to deal with public housing tenants who seriously or continuously disrupt their neighbours. The Government has strengthened the Authority’s implementation of the strategy by introducing a new disruptive behaviour policy, which has been operational since 3 May 2011. The policy sets out how the Authority will respond to incidents based on their severity.We established a reporting line, managed through Housing Direct, that allows people to lodge complaints about the behaviour of their neighbours in public housing. A central Disruptive Behaviour Unit intervenes

in cases in the metropolitan area where disruptive behaviour is ongoing.

Housing DirectHousing Direct provides a centralised contact service for tenants and members of the public for public housing property maintenance, disruptive behaviour reports, homeless advice and contractor inquiries. In 2010–11 the role of the centre was refined and consolidated to reflect changes to the way we deliver maintenance services and manage disruptive behaviour.During 2010–11:zz The centre handled 157,624 inbound calls.zz The average waiting time experienced by

callers was 5 minutes 36 seconds.zz The new telephone system introduced in

April 2010 has proved to be significantly more reliable and offers new caller functionality. For example, a new ‘virtual hold’ function allows a caller to enter their telephone number using their keypad and hold their place in the queue rather than waiting on the phone. When they reach the front of the queue, a call is made to the client. This is significantly more efficient than the voicemail feature and reduces unsuccessful contacts and call handling times.


In October 2010 Housing Direct won the International Quality and Productivity Center (IQPC) award for the Best Government Contact Centre with less than 30 FTEs.

MaintenanceMaintenance is carried out regularly on all rental properties to ensure asset protection and longevity of existing stock. Work is carried out on an as-needs basis when a property is vacated and through planned refurbishment programs. During 2010–11 a total of $101.79 million was spent on day-to-day maintenance, vacated maintenance, refurbishments and improvements, planned and cyclical maintenance, estates maintenance and insurance work.

On 1 July 2010 the Authority moved to a head contractor model to manage its maintenance operations. The new model involves having a regional single contact point for maintenance—with three head contractors across 10 regions. This is far more efficient than under the old model where the Authority directly managed 700

maintenance contracts and undertook direct engagement with more than 300 contractors across 81 zone areas. The key benefits of the new maintenance model included:zz value-for-money outcomes with savings

to the contract sum estimated to be in excess of $20 million (three-year term) on the previous preferred contractor price submissions. Savings made to date ($5 million in 2010–11) will be reinvested into improvement works in 2011–12

zz improved efficiency, procurement, quality assurance and management of maintenance contracts

zz local employment as a key requirement of the new contracts

zz buy local policy a key requirement for successful contractors

zz respondents had to address quality in terms of their experience of management teams, organisational capacity, experience in similar contracts, good-quality business and technology systems, and financial capacity.

The Authority experienced difficulties following the introduction of the new model, largely due to process and systems issues impacting on service performance. A level of stakeholder resistance was experienced. A re-implementation project was put in place to address these difficulties. We are progressing towards resolution of key issues and in February 2011 introduced Service Level Agreements (SLAs) which measure contractor performance. A quality assurance and desktop auditing program has been put in place to ensure compliance with the agreements.

Re-implementation included stabilisation of the IT platform, resolution of process issues, and new business practices to better support the new model. Detailed compliance data is now produced monthly following the implementation of the SLAs in February. The Authority can now identify problems on an ongoing basis, require improvements and apply penalties as appropriate.


We are now focusing on business as usual and ensuring the ongoing integrity of data, monitoring of processes, and management of performance via SLA key performance indicators. The first six months of 2011 has seen close liaison between the Authority and head contractors and there has been a significant reduction in the average vacancy time under maintenance over this period. Progress has been consistent with other states, which have experienced similarly challenging issues associated with the changeover to a head contractor model.

National Partnership Agreement on HomelessnessThe National Partnership Agreement on Homelessness has seen the Authority contribute significantly to housing homeless people through various initiatives. We support clients in finding homes and help them maintain their tenancy. To date, 391 clients have been supported in Authority properties. The inter-agency approach being used to find accommodation for homeless people also provides a sound foundation forfuture ventures.

AppealsThe Authority’s two-tier appeal process, which was restructured in late 2009, delivers an improved mechanism to review adverse decisions affecting public rental housing clients.

This process allows tenants to provide further information regarding their appeal and, at Tier 2, to have a face-to-face discussion with members of the Appeals Committee. The Regional Appeals Committee consists of one Authority representative and two community members who are independent of the Authority.

In August 2010 we implemented a structured training program for members of the Regional Appeals Committees and relevant staff across the state. Additionally, community representatives on the committees are now subject to annual review by the Authority.

This will help ensure committee members better understand their obligations and that potential conflicts of interests are managed. The Authority has recently undertaken a statewide advertising campaign to recruit suitable community representatives to ensure that the independence of regional committees is maintained.

Note: Not all appeals received in the 2010–11 reporting period are finalised in that period.

Appeal statistics 2010–11

Appeal requests received 1,766

Ineligible appeals 43

Appeals concluded at Tier 1 557

Tier 1 appeals where tenant liability was partly waived 8

Tier 1 appeals referred to Tier 2 817

Tier 2 unsuccessful appeals 374

Tier 2 partially successful appeals 76


Appeal statistics 2010–11

Appeal requests received 1,766

Ineligible appeals 43

Appeals concluded at Tier 1 557

Tier 1 appeals where tenant liability was partly waived 8

Tier 1 appeals referred to Tier 2 817

Tier 2 unsuccessful appeals 374

Tier 2 partially successful appeals 76


Built form and civil constructionComplex ProjectsHousing programsLand and housing developmentConstruction, spot purchase, refurbishment and bed-sitter conversions

4245 50 63

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The key achievement towards Opening Doors during the year via this division was the preparation for two calls for submissions (EOI) for Affordable Housing and Social Housing.

The scheme seeks to procure new housing from the market to increase the supply of social and affordable housing.

Under the scheme, the Authority is seeking housing on both the respondent’s land and also innovative housing solutions suitable for the Authority’s land.

Built form and civil constructionHousing constructionDuring the year, the Authority project-managed the construction of houses for community housing organisations, public housing, government employees, the Department of Health and Aboriginal people in remote communities. We also commenced work on the Roebourne Rejuvenation program.Key programs and specific projects that either commenced or were completed in the year include:

National Partnership on Remote Indigenous HousingAs an Authority in 2010–11 we delivered 84 new houses against the Commonwealth target of 76, and 271 refurbishments against the Commonwealth target of 258. The target of 20 per cent local Aboriginal training and employment was also exceeded. The Authority achieved a bonus payment for being one of the few states and territories to meet its targets in 2009–10. This bonus payment allowed the Authority to purchase seven existing houses, and commence the construction of a further two houses in 2010–11. These additional houses are not included in the figures for new houses or refurbishments.

Warmun Recovery projectSeventeen houses were fast-tracked to completion and a further eight houses were refurbished following flooding at Warmun.

East Kimberley Development PackageThis $50 million funding package requires the Authority to construct 100 dwellings in Wyndham and Kununurra. During the year, 40 dwellings were completed and construction is in progress on a further 60 dwellings. All 100 dwellings are expected to be completed by May 2012.



Roebourne Rejuvenation programDemolition of the ‘Village’ precinct is underway and 21 new houses were constructed. An agreement to purchase 50 lots in the Yaburriji Estate has been finalised with design work progressing for 36 houses. Construction of eight social housing dwellings is expected to be completed by 30 June 2012.

A tenancy support program called ‘House2Home’ has been developed and will be rolled out in the new financial year.

Housing innovationWork commenced on the construction of seven dwellings in Nollamara and Innaloo with structural insulated panels replacing traditional wall and roofing materials. Four units are due to be completed by the end of 2011, with the remaining three units in Innaloo to be completed in early 2012.

Community HousingEleven dwellings were constructed at the historic Sister Kate’s facility in Queens Park. For 50 years, Sister Kate’s was home to hundreds of Western Australian children

and the new dwellings will be occupied by former residents.

Essential Services branchThe Essential Services branch has the responsibility to provide water, wastewater and power services to remote Aboriginal communities to a standard that would be expected in a similarly-sized mainstream community. This program is delivered to 91 communities which meet the criteria forthe Remote Area Essential Services Program (RAESP).

The RAESP has three components:

zz repairs and maintenance services for power, water and wastewater infrastructure for approximately 11,000 people

zz a water quality program that requires approximately 3,600 microbiological and 230 chemical water samples being taken annually to ensure that water quality is maintained in compliance with Australian Drinking Water Guidelines. This testing resulted in the program complying with the 95 per cent success rate set by the

Department of Healthzz an emergency repair service for

approximately 200 non-RAESP communities. (Funding of $900,000 is provided by the Commonwealth Government.)

Flooding and erosion due to widespread rainfall across the Kimberley, Pilbara and Goldfields in the past year caused significant damage to essential services infrastructure. The inundation of bores for potable water resulted in some instances of water quality failure, which were expediently rectified by contractors, often under trying conditions.

Essential Services Capital Works programThis program was historically funded by the Commonwealth and State Governments through a pooled arrangement under the Indigenous Housing and Infrastructure Agreement.

No program funding was provided for 2010–11 to enable infrastructure upgrades or asset replacement. This has placed additional stress on the RAESP maintenance budget


and is likely to affect program delivery in the future.

A one-off allocation of $3.1 million of Commonwealth funding was provided for six capital works projects in June 2010. A further $12.2 million was provided through the Royalties for Regions program for additional capital works projects within RAESP communities.

Capital works projects commenced and completed during 2010–11 from funding received in late February 2010 include:

zz Kimberley power automation at Muludja, Kupungarri and Ngallagunda

zz Warburton community power upgradezz Bidyadanga power and sewer service

extension for 16 new lotszz Bayulu water service upgradezz Karmulinunga sewer upgradezz Bardi sewer upgradezz power station engine replacements in

eight communitieszz Drinking Water Source Protection Plans

completed for 25 RAESP communitieszz delivery of water services to new houses

at the Warmun communityzz installation of water and sewer services to

the Warmun accommodation facilityzz delivery of water, power and wastewater

services to the Halls Creek Workers Hostel for Indigenous workers and trainees.

Projects undertaken on behalf of Government include:

zz Looma—essential service upgrades for the multifunctional police facility and GROH

zz Warburton Work Camp—upgrade of power generation and distribution network and delivery of potable water to the site

zz Burringurrah— temporary upgrade of power for the multifunctional police facility and GROH housing

zz upgrade of services at various communities to support components of the Building the Education Revolution (BER) program.

Town Reserves Regularisation ProgramAn important milestone was achieved during

the year with the regularisation of water and wastewater services at Nambi Village, adjacent to the town of Leonora. This is the first community regularised for both power and water services under the Town Reserve Regularisation Program (TRRP).

Contracts under this program have now been committed to regularise water services at the following communities:

zz Mindi Rardizz Kurnangkizz Nicholson Campzz Lundjazz Bondini.


Complex ProjectsThe role of Complex Projects is to initiate, transact and manage complex programs and projects.

Complex Programs are typically significant programs that require the concurrent construction of multiple projects across the state. They tend to be significant in dollar value, broad in nature and incorporate tight time frames and other wide-ranging targets and outcomes. The Nation Building Economic Stimulus Plan is one such program, with Stage 2 alone being valued at $479 million.

Complex Projects are typically complex built form projects, which are generally large in dollar value and size, and involve a variety of technical and design challenges. They often involve sophisticated transactions with private sector developer/contractor partners. Given their size, the projects often incorporate a range of housing outcomes pursuant to the objectives of the State’s Affordable Housing Strategy, including social rental, affordable rental and affordable home ownership.

A selection of key Complex Programs and Complex Projects are detailed below.

Complex Programs State StimulusIn 2009 the State Government announced a significant funding injection for housing construction in Perth and regional Western Australia, bringing forward expenditure of $116 million to build upon the injection of $30 million of additional capital funding provided in December 2008. This funding was to provide immediate support to the housing and construction industry and reduce pressure on the social housing system in WA by funding the construction of 735 dwellings.

The Authority has exceeded this target, commencing 759 dwellings across the state with the majority of these dwellings already completed.

Nation Building Economic Stimulus Plan: New Construction – Stage 2

Stage 2 of the Nation Building Economic Stimulus Plan commenced in 2009. The Authority was awarded $479 million from the Commonwealth Government to construct a range of new housing across the state. At present, the Stage 2 program consists of 1,764 dwellings.

The first phase of Stage 2 was completed by the Federal Government deadline of 31 December 2010 with 1,111 dwellings being completed. This exceeded the target by 56 dwellings, and the Authority was one of the few states to complete this phase within the prescribed deadline. The second and smaller phase of Stage 2 is currently in progress.

A large portion of dwellings constructed under Stage 2 meet universal and adaptable design requirements and are rated as NatHERS 6-star energy efficient.

The program has provided a significant boost to the construction sector since 2009, as well as boosting public housing and housing administered by the community housing sector in Western Australia. Approximately three-quarters of the dwellings in the program will be ultimately transferred to community housing organisations, pursuant to a key objective of this program.

National Partnership Agreement on Social Housing

In 2010–11 the Authority successfully completed the building program under the Commonwealth-funded National Partnership Agreement on Social Housing (NPASH). A total of 28 projects spread


across Western Australia were undertaken by the Authority that resulted in 172 new social housing dwellings over Stage 1 and Stage 2. The Commonwealth has reported that Western Australia was the first major jurisdiction to complete the program by the 30 June 2011 deadline.

Western Australia was allocated $40 million under this initiative. The aim was to increase the supply of social housing through new construction, help reduce homelessness and improve outcomes for homeless and Indigenous Australians. The NPASH program was initiated to assist and complement the National Partnership Agreement on Homelessness.

East Kimberley Development Package

This is a $50 million Federal Government funded project that targets the construction of approximately 100 dwellings in the Wyndham and Kununurra areas. The dwellings will be used for both social housing and transitional housing purposes.

Substantial progress was made during the year with the program due to be completed in the 2011/2012 financial year.

Call for submissions to provide affordable and social housing

In line with the State Government’s Affordable Housing Strategy, two related ‘call for submissions’ (EOI) were launched in mid-2011 to increase the supply of housing available for affordable rental and affordable home ownership.

The submissions program seeks to procure housing on land owned by industry respondents as well as seek innovative housing solutions for the Authority’s land holdings.

They will allow the Authority to procure new housing from the

Final figures reported to the Commonwealth confirmed that the Authority delivered 1,111 dwellings under Stage 2 of the Nation Building Economic Stimulus Program by 31 December 2010.

‘I am proud of all the hard work and commitment our team has shown to ensure our goals were met. The support of the project managers, superintendents, support staff and builders has also to be recognised. Without them we could not have done it.’ Laurie McGillSocial Housing Coordinator

47

market through a range of industry stakeholders.

The program reflects the expanded role of the Authority with its activities focused on supplying sufficient housing opportunities and creating more entry points for eligible individuals and families at each stage of the housing continuum, be it public housing, affordable rental or affordable home ownership. This includes the development of affordable housing for sale to low-to-moderate income households.

Complex Projects

Stella Orion, Success

The Stella Orion project commenced in September 2009 and was completed in March 2011. The development was funded under Stage 2 of the Nation Building Economic Stimulus Plan. Stella Orion is a part of the larger Stella Apartments project—7ha master-planned residential project located in Success. The Stella Orion project is a partnership between the Authority and Goodland Properties. It consists of 130 one and two-bedroom apartments in four separate buildings of two and three levels, as well as a recreation centre.

The Stella Apartments project was named Best Multi-unit Development under $50 million in the 2011 Master Builders–Bankwest Excellence in Construction Awards.

Built in partnership with Goodland Properties and funded under Stage 2 of the Commonwealth’s Nation Building Economic Stimulus Plan, the development will ultimately have 900 residential apartments, with recreational facilities.

‘It is gratifying to see Stimulus projects like Stella Apartments recognised in the industry. The team has put in a lot of hard work to ensure projects run smoothly and efficiently.’

Laurie McGillSocial Housing Coordinator



villas, predominantly for seniors, sited in a well-designed group housing complex. The housing is contemporary in design and boasts a NatHERS six-star energy rating.

The project was funded under Stage 2 of the Nation Building Economic Stimulus Plan.

Bellerive Pass, Meadow Springs

The Meadow Springs project was developed in conjunction with Mirvac Homes (WA) and consists of 65 one-, two- and three-bed villas, predominantly for seniors, in a well-designed group housing complex. The housing is contemporary in design and boasts a NatHERS six-star energy rating.

The project was funded under Stage 2 of the Nation Building Economic Stimulus Plan.

MacLaggan Turn, Coodanup

This project was undertaken in partnership with Bethanie Housing, a community housing provider. The project incorporates 96 apartments for seniors with associated community centre and landscaped grounds. The project incorporates adaptable design principles and the apartments have a minimum of a

Stella Orion is strategically located along the Southern Suburbs Railway line with easy access to public transport and a shopping precinct. As part of the Cockburn Central transit-oriented development, it provides affordable and attractive housing options for people who want to live more sustainably. The development features innovative architecture and design, quality fixtures and fittings, and balcony areas. Ten of the Stella Orion apartments have been sold under the National Rental Affordability Scheme (NRAS), with a further 10 sold for the Authority as shared equity stock.

Signal Terrace, Cockburn Central

Following a request for proposals in 2010, the Authority selected Probuild Constructions (Aust) as its partner to design and construct a major residential project in Cockburn Central. The construction is funded under Stage 2 of the Nation Building Economic Stimulus Plan.

The project consists of 130 apartments, with one-, two- and three-bed options as well as six commercial units. The project boasts innovative architecture with five separate multi-storey buildings

surrounding a central courtyard.

The project is strategically located along the Southern Suburbs Railway line within metres of the Cockburn Central railway station and affords great access to the town centre facilities.

The project is scheduled to be completed in mid 2012, and will offer a wide range of affordable housing options for people who want to live more sustainably.

Beach Street, Fremantle

The Fremantle project commenced in late 2010 and is scheduled to be completed in early 2012. The project is funded under Stage 2 of the Nation Building Economic Stimulus Plan and is being constructed by M Construction (WA).

The project consists of 58 one-bed apartments located in two buildings, constructed behind a retained heritage facade associated with the adjacent Fort Knox heritage building. The project is well located close to public transport and all the facilities that Fremantle has to offer.

Highcliffe Circle, Lakelands

The Lakelands project was developed in conjunction with Mirvac Homes (WA) and consists of 86 one-, two- and three-bed


NatHERS six-star energy rating.

The project received funding through Stage 2 of the Nation Building Economic Stimulus Plan.

Kambany Approach, DalyellupThis project was undertaken in partner-ship with Bethanie Housing, a community housing provider. The project incorporates 104 apartments for seniors with associ-ated community centre and landscaped grounds. The project incorporates adapt-able design principles and the apartments have a minimum of NatHERS six-star energy rating.

The project received funding through Stage 2 of the Nation Building Economic Stimulus Plan.

Housing ProgramsCommunity housing managed accommodationThe Authority understands the need to create a wider and more diverse social housing system in WA and recognises that community housing plays a vital role in delivering an effective social housing mix. To achieve this goal, unnecessary barriers between the public

and not-for-profit sectors must be removed. The Authority has been working collaboratively with community housing organisations, not-for-profit housing companies, community organisations and local government to provide community housing that is available, affordable and appropriate.

At 30 June 2011, a total of 7,836 units of accommodation across the state were being managed by community housing organisations under various arrangements.

The Authority has invested in the growth of community housing managed accommodation this year. The community housing capital works programs completed 1,477 units in 2010–11.

A further 43 units of public rental housing were leased to community housing organisations (CHOs) to manage through the Community Disability Housing Program (CDHP).


Community housing accommodation options Units

Crisis Accommodation ProgramResidential premises for people in housing crisis such as women’s refuges, night shelters and emergency accommodation for youth

563

State Community Housing Investment ProgramLong-term housing aimed at attracting equity contributions from community housing organisations to meet the housing needs of people on the Authority’s public rental waiting list

753

Joint Venture Housing Investment ProgramEnables organisations that have resources to contribute to the development of rental accommodation options for people on low incomes

2,012

Lease for Life joint venturesIn a resident-funded joint venture, organisations and the Authority pooled their resources to provide low-income housing to seniors in Western Australia. Eligible applicants are able to purchase a lease for life under this option

155

Community Housing Program (a)Community-managed rental housing for people on low-to-moderate incomes

1,723

Community Disability Housing ProgramCommunity-managed rental housing for people with disabilities and people with mental health issues

1,589

Asset transferUnits transferred to community housing organisations for the purpose of building capacity within the community housing sector

1,041

(a) Community Housing Program numbers include 186 properties delivered under Community Housing General and 479 properties delivered through the Public Housing Leasing Program.


Broome MotelIn late 2010 the Authority financed Foundation Housing Limited (FHL) to purchase the Broome Motel at 34 Frederick Street, Broome. FHL is a registered community housing organisation. The acquisition, which cost $7.7 million, will provide up to 56 motel-style units to accommodate service and key industry workers in Broome who currently have limited access to affordable and appropriate housing. A further $500,000 is being spent to improve the property and provide kitchenettes in all units. FHL will operate the property as a lodging house.

Former St Emilie’s ConventIn August 2010 the Authority purchased the former St Emilie’s Convent at 75 Kalamunda Road, Kalamunda, for $3.85 million. This property has been leased with the objective of providing supported housing for youth at risk of homelessness. Subject to renovations and modifications, it will house approximately 50 young people at risk of homelessness.

Outsourced projectsIn 2009–10 the Authority commenced a program of outsourcing projects with the community housing sector. The aim of this partnership approach is to develop the capacity of community housing organisations to project manage new construction projects and tap into the skills and knowledge of grassroots service providers to help those most in need of housing support.

The benefits of the program are already being realised. This year marks a milestone for the program, with the first of these outsourced projects (Foundry Road, Midland) completed in February 2011.

Foundry Road, MidlandThis is a new three-storey community housing construction comprising seven one-bedroom units, 18 two-bedroom units, four three-bedroom dwellings and four commercial units. The Authority contributed $7 million (85 per cent) of the project cost, with registered housing provider FHL contributing the 15 per cent balance.

152 Lime Street, East PerthRegistered housing provider St Bartholomew’s is developing this project in partnership with the Authority. The construction of the facility includes 66 one-bedroom residential units, 40 aged care units and 42 transitional lodging house beds. This is a jointly funded project between the Authority, the Commonwealth Government and St Bartholomew’s, with funding totalling $30.6 million. It is due for completion in the last quarter of the 2011–12 financial year.

Lot 371 Newcastle Street, NorthbridgeThis multistorey development comprises 17 residential units, a 44-bed hostel and nine commercial units. The Authority is funding the $12.8 million development on land owned by FHL. It is due for completion in October 2011.

196 Oxford Street (Oxford Foyer), LeedervilleAustralia’s first purpose-built Foyer, which is based on an international housing model, is due to be built in Perth at the Central Institute of Technology campus on Oxford Street, Leederville. The project is part of


the National Partnership Agreement on Homelessness (NPAH) and the ‘A Place to Call Home’ initiative.

Oxford Foyer will provide accommodation and training to help 98 Western Australians between the ages of 16 and 25. The Authority is contributing 46 per cent of this $19.83 million project, with the Commonwealth providing 54 per cent. Construction is due to begin in August 2011.

Commitments to Disability Services CommissionThe Authority provided additional homes for people with disabilities who receive support funding from the Disability Services Commission to help them live independently.

During the year we provided one property in Derby and will provide one property in High Wycombe for young people previously residing in aged care facilities. We have also commenced design work for the construction of one property in Broome and two properties in Kalgoorlie for this target group.The Government’s election commitment to

provide five respite facilities statewide is being delivered. One property was provided in Broome in the previous financial year and construction commenced on a facility in Clarkson in 2010–11. Design work is under way for the remaining three facilities with land identified in Rockingham, Gosnells and York.

Commitments to the Mental Health Commission Last year, the Authority committed to providing 50 units of accommodation across the metropolitan area. This was in addition to obligations under the previous Mental Health Strategy. Thirty-two of the 50 units have been completed with 10 more due for completion by the end of 2011. The remaining eight units are due to be completed in 2012.

State Cabinet approved $12.8 million capital funding in 2011–12 to purchase two facilities in Rockingham and Joondalup. This will complete the commitment under the previous Mental Health Strategy.In addition, two flagship mental health

facilities built in the previous financial year became fully operational in 2010–11.

Perth Hostel, 96 Moore Street, PerthThis $8.8 million 32-bedroom facility provides accommodation for people with mental health issues making the transition from supervised care to living independently in the community. It caters for males and females aged 18 years and over, and is managed under a Community Disability Housing Program (CDHP) lease by the Richmond Fellowship of WA, a registered community housing organisation.

Fremantle Youth Hostel, 5–9 Alma Street, FremantleThe Authority funded the construction of these 16 one-bedroom lodging house units on a budget of $3.8 million.

The hostel provides accommodation for male and female youth between 15 and 17 who are undergoing the final phase of rehabilitation/counselling for mental illness before living independently in the community. It is managed under a CDHP


lease by Life Without Barriers, a not-for-profit organisation providing care and support services.

Asset Transfer ProgramThe Asset Transfer Program forms part of the Opening Doors strategy to increase the supply of social and affordable housing in WA. Under this program the Authority is transferring the management of some leasehold stock and title to freehold public assets to the community housing sector. Community housing organisations will then leverage these assets to borrow funds and provide additional social and affordable housing. In excess of 7,000 lease and freehold assets are now being managed by the community housing organisations, with 1,041 units transferred in 2010–11. It is anticipated this will enable the sector to increase the supply of affordable housing by a further 1,000 units.

The transfer of Authority assets to community housing organisations (CHOs) will be strengthened under the new Affordable Housing Strategy, Opening Doors. The Asset Transfer Program will help the Authority to provide more rental homes for people on the waiting list for social housing. The CHOs will be able to borrow funds against the income generated by the transfers and their equity in these assets to build further affordable housing.

‘The program has enabled hundreds of applications to be removed from

the Joint Wait List since late last year and an increasing number of

community housing homes are being rented to people transitioning

out of public housing as well.’

Ruth CharlesPrincipal Policy Officer Asset Transfer

54


Combined capital bid – new initiativeAs part of the State Budget, the Government approved a Combined Capital Bid (CCB) for funding to house people with physical and mental disabilities and those recovering from alcohol and other drug-related health issues.

The CCB—which was submitted by the Minister for Mental Health; Disability Services and supported by the Minister for Housing—provides $150.7 million in capital funding over the next three years to 2014. This will deliver an additional:

zz 169 homes for 340 people with severe and profound disabilities who will be accessing personal care and supported accommodation

zz 100 community-based homes for 100 people living with mental illness leaving inpatient facilities

zz 15 supported short-term transitional houses for individuals and their families exiting residential alcohol and other drug treatment services.

As a requirement of this funding, the Authority entered into three Memoranda of Understanding governing the timing and milestones for delivering the CCB with the:

zz Mental Health Commissionzz Drug and Alcohol Office zz Disability Services Commission.

Workers’ housingAffordable, appropriate and available housing is important in helping to attract and retain regionally-based employees. The Authority has long-term experience and a large network of services to support the housing needs of government employees. We are now managing a strategic intervention to provide housing for non-government employees to help alleviate immediate pressure on the housing market.

Government Regional Officers HousingThe aim of the Government Regional Officers Housing (GROH) program is to improve the supply of appropriate government employee housing across the state. The program plays a vital role in

attracting and retaining key government workers in regional and remote communities.The year 2010–11 was again a period of record activity, with the delivery of unprecedented numbers of new properties. This housing was provided through capital acquisitions and leasing programs. An extensive refurbishment program wasalso undertaken.

At 30 June 2011 the Authority manageda total of 5,503 units of government employee housing. Of these, 3,162 units were owned by the Authority and 2,341 units were leased from the private market. Leases represent approximately 43 per cent of GROH’s rental portfolio.

In 2010–11 a total of $120.3 million was spent on capital works, including projects funded through the Government’s Royalties for Regions program, with a carryover commitment of $33.8 million at June 30, 2011. Procurement of 164 properties commenced and 196 units of accommodation were completed during this financial year.


Summary of GROH housing procurement activity 2010–2011

Region District Commencements Completions Housing under construction

Goldfields

Eucla 1 1 0

Grass Patch 0 1 0

Kalgoorlie 0 4 0

Laverton 0 10 0

Leonora 1 1 0

Norseman 0 1 0

Wiluna 0 0 3

Total 2 18 3

Kimberley

Bidyadanga 2 0 2

Broome 18 5 18

Camballin 2 0 2

Derby 42 19 29

Fitzroy Crossing 0 15 0

Halls Creek 0 6 0

Kalumburu 1 0 1

Kununurra 8 13 5

Looma 0 0 3




Kimberley Wyndham 0 9 0

Total 73 67 60

Mid-West/ Gascoyne

Burringurrah 0 3 0

Carnarvon 2 0 8

Denham 3 0 3

Geraldton 0 0 4

Jurien Bay 0 3 0

Morawa 0 2 0

Mount Magnet 1 1 1

Mullewa 0 2 0

Northhampton 0 0 2

Three Springs 1 1 0

Total 7 12 18

PilbaraKarratha 21 27 27

Marble Bar 1 0 1




Pilbara

Newman 1 3 11

Port Hedland 8 0 6

Roebourne 9 9 0

South Hedland 14 3 14

Tom Price 4 0 8

Total 58 42 67

Great Southern

Cranbrook 2 0 2

Gnowangerup 1 2 0

Katanning 3 6 0

Kojonup 2 4 0

Kukerin 0 1 0

Lake Grace 0 2 0

Mount Barker 3 5 0

Pingrup 0 2 0

Wellstead 0 1 0




Total 11 23 2

South-West

Augusta 1 1 0

Bridgetown 0 1 0

Collie 1 1 0

Harvey 1 4 0

Manjimup 0 4 0

Northcliffe 0 1 0

Walpole 0 2 0

Waroona 0 1 0

Total 4 15 0

Wheatbelt

Boddington 1 1 0

Bruce Rock 0 2 0

Corrigin 0 2 0

Cunderin 0 4 0

Dowerin 0 0 1

Kulin 1 1 0

Moora 0 0 6




Wheatbelt

Narrogin 4 2 0

Northam 2 2 0

Southern Cross 1 1 0

Williams 0 3 0

York 0 1 0

Total 9 19 7

Grand Total 164 196 157


Housing in the north-westDemand for government employee housing remains strong in the north-west and the Authority delivered 109 additional houses to this region in 2010–11.

Fifty-eight properties were commenced in the Pilbara along with a further 73 in the Kimberley. Locations include Derby, Broome, Karratha, Hedland and Roebourne.

West Kimberley Regional Prison projectThe West Kimberley regional prison being built in Derby will significantly increase the need for government services and, in turn, government housing within the town. Twenty-seven new dwellings have been completed and a further 53 will be provided in the first quarter of 2012.

High-amenity lifestyle initiativesAs part of the drive to attract and retain government workers in regional areas, the Authority has entered into purchase arrangements to deliver ‘high-amenity lifestyle’ accommodation in three locations in regional Western Australia.

Caprice Gardens, GeraldtonThis project is a lifestyle village in the centre of the city. The Authority has invested in a number of two-bedroom apartments in a growing modern complex that will feature a swimming pool, barbecue area and running track. Subject to review, the Authority may purchase additional units in the future.

Pelago West, KarrathaThis project will be an eight-storey residential and commercial development forming part of the central business district revitalisation consistent with the Royalties for Regions’ Pilbara Cities initiative. The development offers 114 one-, two- and three-bedroom apartments including commercial spaces, a shopping precinct, swimming pool and gym. The Authority has negotiated the purchase of 12 units off the plan and the expected completion is the end of February 2012.

Captains by the Bay, BroomeThis is a 16-unit development constructed in 2009 and currently used for short- and long-term accommodation. The development

includes a swimming pool and large outdoor entertainment areas. The Authority has negotiated the purchase of 10 two-bedroom, fully-furnished units in the complex.

Non-government organisationsThe Non-Government Organisations (NGO) Housing Strategic Intervention will provide $35 million to deliver 58 houses for NGO workers in the north of the state. Funding will be allocated from the 2010–11 and 2011–12 Royalties for Regions program. The houses will be located in eight communities identified as having difficulties in providing affordable housing and where NGO services are constrained or are at risk of being withdrawn. Housing will be distributed across the Kimberley and Pilbara in Broome, Derby, Halls Creek, Karratha, Kununurra, Newman, Roebourne and South Hedland.

The NGO housing initiative is proposed asa strategic intervention to alleviate immediate housing/service pressures in key regional areas.


Royalties for Regions: housing for workersThe State Government’s Royalties for Regions program aims to foster long-term regional development in WA. It allows for the equivalent of 25 per cent of the state’s mining and offshore petroleum royalties to be returned to regional areas each year. The program is being used to deliver worker housing and rental accommodation, particularly in high demand locations such as the north-west.

Under the Royalties for Regions program, the Authority was allocated $200 million to deliver 400 new units of government employee housing between May 2009 and June 2012.

By 30 June 2011 a total of $166 million had been spent and a further $21.6 million had been committed. A total of 381 dwellings have been commenced with 306 completed. The table (at right) shows the number of dwellings commenced and completed in each region.

The Royalties for Regions program has continued to drive business activity through 2010–11 and will deliver additional and replacement housing stock in 2011–12.

Construction commencements and completions (funded by Royalties for Regions)

Region Commenced Completed

Great Southern 37 35South-West 15 15Goldfields 31 28

Mid-West/Gascoyne 36 20Pilbara 109 61

Kimberley 98 98Wheatbelt 55 49

Total units 381 306


Refurbishment programIn 2010–11 a total of $6.39 million was spent on property refurbishments to improve the amenity of some properties and extend their economic life.

GROH salesProperties that are no longer needed to meet the demand for government employee housing, or that have reached the end of their economic life, are often sold. Funds generated from the sales program are used to improve the quality of stock through the construction of new housing and the refurbishment of older stock.

A total of 41 dwellings were sold in 2010–11 for $5.58 million. This included three tenant sales (properties sold to the tenant in occupation) valued at $0.71 million. Additionally, two blocks of land were sold at a value of $0.22 million.

Regulation – community housing providersThe Authority implemented a new CHA to provide a comprehensive legal framework

to regulate community housing in WA before the transfer of freehold assets to the community housing sector.

The regulation of community housing providers aims to improve tenant outcomes, protect vulnerable tenants, protect government funding and equity, and increase investor confidence in the sector.

A total of 33 community housing providers were registered during 2010–11. Five are growth providers, 13 are preferred providers and 15 are third-tier registered providers.

‘Growth Providers’ are typically large housing providers with the capacity and strategic intent to grow and develop social and affordable housing.

‘Preferred Providers’ typically house people from a specific target group or geographical location and have the potential for growth and development of social and affordable housing.

‘Registered Providers’ are typically smaller organisations with a limited capacity for growth and development of social and affordable housing, but a strong commitment to quality service provision.

All registered community housing providers are required to meet high-level criteria, proportionate to the scale and scope of the organisation, to demonstrate that the organisation is well managed, well governed and financially viable.

Land and housing developmentThrough the development and sale of land holdings, the Authority:

zz maintains land affordability through supply

zz provides a return to the Authority to help fund other social housing programs

zz retains lots for social and community housing programs.


These objectives are met via the following programs:

zz Urban Redevelopment program—infill development programs in existing suburbs

zz Urban Renewal program—the redevelopment of existing, high public housing presence locations to provide more sustainable suburbs

zz broadacre land development—land development programs conducted either in-house or in partnership with the private sector.

Supply of affordable land During 2010–11 the Authority was able to increase its lot yield by 14 per cent from 1,953 to 2,228. Conversely, sales decreased by nearly 26 per cent from 2,243 to 1,666 due to declining market conditions.

The Authority continues to meet its objective of providing affordable land in the lower quartile. In 2010–11 some 29.8 per cent of lots sold were in the lower quartile and 66.4 per cent at or below the median price. * Only individual residential sales are taken into account.

Lot sales in the lower quartile

2009–10 Actuals 2010–11 Actuals 2010–11 Budget

Lots*Per cent

63835.1%

34629.8% 30%


Return to the AuthorityThe Authority is a self-funded, integrated provider of land and housing focusing on low-to-moderate income families. In 2010–11 the land function provided a net cash return of $99.72 million to the Authority. This dividend was part of the funding for the Authority to perform its social housing activities.

Lots retainedPart of the objective of the Authority’s land functions is to retain lots for use in its public housing program. During 2010–11, 148 lots were retained from its various joint venture, urban development and urban renewal programs. These land parcels equate to approximately 408 dwellings. Many of these lots have been used to fulfil the state’s obligations under the Commonwealth and State stimulus package.

Revenue by program


Joint venturesUrban renewal

133.16m46.07m

109.12m23.04m

111.14m29.49m

Urban developmentand redevelopment 63.20m 41.04m 46.58m

Total 242.43m 173.19m 187.22m

Development expenditure by program



44.75m12.08m

47.90m14.62m

62.72m15.61m

Urban developmentand redevelopment 20.03m 24.82m 13.88m

Total 76.85m 87.35m 92.20m


Land development programsJoint ventures

The Authority develops the majority of its landholdings in partnership with the private sector. There were a number of highlights in 2010–11 that demonstrate the effectiveness of these developments.

EllenbrookWith housing affordability an issue, the Ellenbrook joint venture undertook a national research program to identify different housing models that could significantly lower the entry price for new housing in Perth’s growth areas. Together with the Homebuyers Centre, the joint venture has developed ‘green title’ homes consisting of two bedrooms, one bathroom and a garage on 150 square metres of land with a five-metre frontage. At $100,000, the land component is approximately 40 per cent of the price of a traditional 550-square metre lot. The total house-and-land package was priced from $260,000, compared to the traditional house-and-land average at Ellenbrook of approximately $400,000.

Sales



1679268

1344103

1433178

Urban developmentand redevelopment 296 219 236

Total 2,243 1,666 1847

Yield



1199312

1543163

1494185

Urban developmentand redevelopment 442 522 311

Total 1,953 2,228 1990

* NOTE: The Urban Redevelopment program reports yields on the number of dwelling units.


HarrisdaleThe Authority has been successful in receiving a grant of $3.7 million under the Federal Government’s Housing Affordability Fund to be used in its Harrisdale development. The grant was awarded for infrastructure works to extend essential water, sewer and power mains to the site and the construction of earthworks and a stormwater drainage system for the first two stages of the development comprising 107 lots. Payment of the grant will be made over the next four years as the lots are constructed, and the savings achieved by the grant will be passed on to eligible purchasers via rebates in the order of $16,000.

WellardIn 2010 the Wellard joint venture won the national and state Inclusive and Connected Communities award as well as the Town of Kwinana Mayor’s ‘Looking Forward’ award. This means the project has won a total of 18 Australasian, national, state and local awards.

BrightonAn innovative built-form project at Kahana Parkway in the Brighton joint venture estate was an exercise in testing market acceptance of a range of small but innovative housing options for homebuyers.

Brighton is a joint venture development between the Authority and its private sector partner, the Butler Land Company. The development at Brighton is project managed by the Satterley Property Group.

Twenty-two homes were designed and built over a 12-month period to demonstrate different types of dwelling options. The dwellings were designed to meet the criteria of affordable housing and included one-, two- and three-bedroom apartments as well as a one-bedroom unit built over the rear garage of one of the houses. The development was well received with prices starting at $199,000 for the one-bedroom units.

Urban renewal and developmentRental Sales programThe Rental Sales program is open to eligible

tenants who are interested in purchasing their rental properties. In 2010–11, 18 properties totalling $5.31 million were sold to Authority tenants.

An additional program involves the sale of vacant former rental properties which were:

zz beyond economical repairzz located in an area with a high public

rental housing presence, or zz valued at twice the current metropolitan

median house price (High Value Housing Strategy).

In 2010–11 a total of 47 properties totalling $17.41 million were sold. Of these, 35 were in the metropolitan area and 12 were in regional areas. Of those in the metropolitan area, six properties were sold under the High Value Housing Strategy.

Urban RedevelopmentThe Urban Redevelopment program enables the better use of appropriately zoned land within established areas across the state. In 2010–11 the program


rationalised 21 lots, increasing the yield potential from 21 to 176 dwellings.

Urban Renewal The Urban Renewal program aims to redevelop older public housing estates to create more attractive living environments. Key highlights from the program include:

New NorthNew North involves the revitalisation of the suburbs of Balga, Girrawheen, Koondoola and Westminster. During the year, 38 dwellings were refurbished and sold to the general public, primarily to first home owners and owner-occupiers. Forty-four properties were also refurbished and returned to the Authority’s rental program. A 16-unit complex was demolished in Pannell Way, Girrawheen. Twenty-nine residential lots are currently being developed on the site and will be offered for sale to the public in 2011.

Queens ParkQuattro—‘The New Queens Park’—produced further land sales reinforcing the popularity and quality of the new subdivision.

The subdivision was selected as a finalist for environmental excellence in the 2010 Urban Development Institute of Australia (UDIA) Awards for Excellence.

Phoenix Rise-Hamilton HillThis project is due to be completed in 2011–12 after major project works in 2010–11. During this financial year 24 dwellings were refurbished for sale. Of these, 15 were sold to owner-occupiers with gross proceeds of $4.49 million. In the same period, refurbishment of a further 11 dwellings was completed and these dwellings were returned to the Authority’s public rental housing stock.

South HedlandThe South Hedland New Living Urban Renewal project continued its successful program of land development, property refurbishment, community development and infrastructure upgrades to revitalise the township. The project was successful in winning the judges’ award at the 2010 Urban Development Institute of Australia (UDIA) Awards for Excellence.

Urban DevelopmentThe Urban Development program develops broadacre land for residential building purposes in both metropolitan and regional areas. Key highlights from the program include:

Golden BayThe Authority commenced first stage development of its Golden Bay landholding (150 lots). The land is located between Rockingham and Mandurah and is close to the proposed Karnup railway station. When complete, the development will create more than 1,700 lots over a minimum 10-year period. The overall design will allow for a large portion of affordable lots.

In late 2010 the Authority advertised for expressions of interest for project management services for the Golden Bay project and in January it entered into negotiations with Peet Ltd, which was the preferred respondent.


KwinanaA total of 109 lots were created in stages 7 and 8 at Belgravia Central, Bertram. The lots where primarily sold to first home buyers with incentives such as landscaping, fencing and an early construction rebate provided. A further 63 lots is planned for development in 2011–12.

McKailIn January, four cottage-lot demonstration homes were completed in Clydesdale Park, Albany, and are now open for inspection. They demonstrate the quality of homes that can be built on a small laneway lot.

Land acquisitions and planningThe Authority has a strategic approach to land development, which involves acquiring parcels of land and planning future releases. Continuity in the supply of land for affordable housing relies on the timely acquisition and planning of land. Land acquisitionsDuring the year the Authority acquired land valued at more than $65 million for its immediate and longer term needs. The

land included titled lots for immediate use, through to broadacre strategic parcels.

Some $20 million was allocated to acquiring single residential and group housing sites in the Authority’s joint venture project areas of Banksia Grove, Butler, Dalyellup, Ellenbrook, Harrisdale, Oyster Harbour (Albany) and Seacrest (Geraldton).

A 17-hectare strategic site was acquired in Whiteman for $10.75 million. This site will consolidate the Authority’s land holdings in the area and complement the current Whiteman Edge development.

In addition, a number of sites valued at $25 million were secured from the State Government’s Property Asset Clearing House. The sites include:

zz former East Greenwood Primary School (3.8 ha for $7.71 million)

zz former Hainsworth Primary School, Girrawheen (4.2 ha for $3.44 million)

zz former Ferndale Primary School (3.8 ha for $4.13 million)

zz former Kinlock Primary School, Ferndale (4.1 ha for $6.15 million)

zz land at Lot 12663 Rawlins Street, Glendalough (6,579 square metres for $3.32 million).

We continued to seek land opportunities in LandCorp developments throughout the state.

Fifteen lots valued at $3.6 million were acquired in the Broome North estate. Similarly, 15 lots valued at $3.34 million were acquired in stages 3 to 8 of LandCorp’s Baynton West subdivision in Karratha.

Land planningMajor projects that advanced through the planning phase included:

KeralupThe Authority has lodged a request for region scheme rezoning to urban/urban deferred with the Western Australian Planning Commission. The proposal is supported by a draft district structure plan and associated environmental, economic and transport analysis. The rezoning


consists of three amendments with priority to West Keralup.

Tuart Brook (Bunbury)A local structure plan has been advertised for public comment and is currently subject to refinement and further environmental investigations.

Southern RiverA local structure plan has been advertised for public comment and is currently subject to further environmental studies.

Golden BayA revised comprehensive development plan has been lodged with the City of Rockingham.

Stratton/West StrattonOutline development plans have been lodged with the City of Swan.

Bentley (Brownlie Towers Precinct)The Authority has completed site analysis and is preparing a local structure plan with the City of Canning.

Construction, spot purchase, refurbishment and bed-sitter conversionsThe tables on pages 72–74 provide information on construction, spot purchases, refurbishments and bed-sitter conversions undertaken under the Authority’s various capital works programs. The table includes details of the number of units commenced and completed during 2010–11.

Carryover completions reflect units that commenced in a previous financial year but were still under construction or refurbishment at 30 June 2011. Carryover expenditure shows the committed funds required to complete those units still under construction or refurbishment at 30 June 2011.


Construction, spot purchase, refurbishment and bed-sitter conversions

Commenced Completed Expenditure ($m) Carryover completions

Carryover expenditure ($m)

Construction and spot purchase

Public rental housing

General rental 695 834

Community Housing General 251 1171

Community Disability Housing Program 22 29

Mental Health Strategy 0 0

Joint venture 15 33

House and land for sale 6 0

Total 989 2067 429.59 813 151.56

Aboriginal housing

Aboriginal housing – urban 7 7 2.69 0 0

Aboriginal housing – communities 84 114 57.44 10 9.74

Total 91 121 60.13 10 9.74

Community housing

Community Housing Program 9 5 2.04 6 1.32

Crisis Accommodation Program 12 11 8.01 1 0.37

State Community Housing Investment Program 231 228 52.77 309 15.13

Total 252 244 62.82 316 16.82

TOTAL 1332 2432 552.54 1139 178.12


Construction, spot purchase, refurbishment and bed-sitter conversions

Commenced Completed Expenditure ($m) Carryover completions

Carryover expenditure ($m)

Refurbishment and bed-sitter conversions

Public rental housing

Refurbishments 83 58 2.75 25 0.20

Bed-sitter conversions 0 14 0.40 0 0.36

Total 83 72 3.16 25 0.56

New Living (retained properties)

Refurbishments 145 140 17.26 110 5.86

Bed-sitter conversions 0 0 0 0 0

Total 145 140 17.26 110 5.86

Aboriginal housingAboriginal housing – communities Refurbishments 276 271 39.91 31 9.84

Indigenous Community Housing Organisations refurbishments 136 103 8.36 48 0.75

Total 412 374 48.28 79 10.59

Community housing

Community Housing Program 0 16 0.18 0 0

Crisis Accommodation Program 20 18 0.91 2 0.12

State Community Housing Investment Program 186 0 0.49 186 7.23

Total 206 34 1.57 188 7.36

TOTAL 846 620 70.26 402 24.37

GRAND TOTAL 2178 3052 622.81 1541 202.49


Construction, spot purchase, refurbishment and bed-sitter conversions (continued)

Notes:

1. Expenditure on public rental housing and Aboriginal urban housing excludes capitalised administration costs.

2. Community Housing General includes units transferred or earmarked for transfer to Community Housing Organisations. In the previous year’s Annual Report, these units were included under General Rental, as specific units were still being finalised at that time. The distribution between General Rental and Community Housing General is subject to possible further changes.

3. Aboriginal housing communities construction includes units in Aboriginal communities as well as units for Employment Related Accommodation (ie: 8 units commenced and 24 units completed).

4. Expenditure on public rental housing bed-sitter conversions includes other upgrade works.

5. Expenditure on Aboriginal communities refurbishments includes other works.

6. Expenditure on Indigenous Community Housing Organisations refurbishments includes other upgrade works.

7. Community Housing Program and Crisis Accommodation Program refurbishments include other upgrade and maintenance works.

8. Figures include activity from all funding sources including Commonwealth and State Stimulus packages.


Organisational Transformation

Learning and developmentLeadership and diversityReconciliationValues and behavioursWorkforce planning and change managementEmployment – staffing levels – workers compensation – industrial relations – occupational health and safety – recruitment

76 76 76 77 77

78 78 79 79 80


Our people are our best assets. The Organisational Transformation division provides leadership and skills development for all employees to help them achieve the goals of Opening Doors. We help to build effective structures and processes to maximise business outcomes.

Learning and developmentThe Authority is developing a whole-of-organisation learning and development framework which is to be complemented by a new performance development system. Both initiatives are to be implemented in the second half of 2011. A new, two-day corporate induction program has also been put in place.

Leadership and diversityThe Authority has maintained its commitment to its established leadership, graduate and traineeship programs, continuing intakes in all areas. A new Equity and Diversity Management Plan taking the agency through to 2014 has been endorsed by the Authority’s Corporate Executive and the Equal Opportunity Commission (EOC). Similarly, a Disability Access and Inclusion

Plan has been developed and approved and will be implemented over the next two years. ReconciliationIn a demonstrated commitment to diversity, the Authority has commenced development of a Reconciliation Action Plan which is being overseen by a representative group from within the Authority and the Indigenous community. Indigenous traineeships are available and the Authority is working with specialist, local Aboriginal employment agencies to promote entry-level opportunities within the Authority.

Organisational Transformation

77

Values and behavioursThe Authority continues to address issues arising out of last year’s climate survey, and bullying education workshops have been carried out across the state. A second climate survey will be conducted in 2012 to measure progress across a range of human resource issues. The agency’s Code of Conduct, values and behaviours have been promoted across the state with the Chief Executive Officer taking a lead role in embedding these principles within the Authority’s organisational culture.

Workforce planning and change management Workforce planning is to be a priority during 2011–12 with a specific focus on regional attraction, recruitment and retention. As the Authority implements the Opening Doors strategy and other high-level initiatives, change management strategies will be put in place to support and develop staff. The Authority’s commitment to employee assistance and health and lifestyle programs will also assist with regard to ongoing support for all staff.

The Housing Authority is proud to be part of the Reconciliation Action Plan (RAP) program. A working party is meeting monthly to develop a unique vision for reconciliation in the context of housing. Members of the working party and the Independent Indigenous Advisory Group held a workshop in February 2011, which marked an important milestone in the process.

‘The RAP is an important and courageous first step in seeking to understand how to build better and more enduring relationships between the department and its clients.’

Peter YuCEO of Nyamba Buru Yawuru Ltd



Employment Staffing levelsThe Authority’s full-time equivalent (FTE) staffing numbers are detailed in the table below:

Workers compensationThe Authority received 20 claims for the 2010–11 financial year, of which six involved time lost from work. All staff in this category were provided access to the Authority’s injury management and employee assistance programs.

2008–09 2009–10 2010–11

Permanent full-time 794.38 842.11 861

Permanent part-time 59.25 58.13 66.07

Contract full-time and part-time 179.71 192.19 278.90

Seconded in 6 1 0

Seconded out 7.64 5 8

Total FTE 1046.98 1098.43 1213.97


(a) Number of lost time injuries per million hours worked.(b) Number of lost time injuries and diseases per 100 workers employed.

Indicator 2008–09 2009–10 2010–11

Number of fatalities 0 0 0

Lost time injuries: 7 9 6

Frequency rate (a) 3.35 4.19 2.37

Incident rate (b) 0.66 0.81 0.49

Lost time injury 7.64 5 8

severity rate 0.16 0.12 0.33

Percentage of injured workers returned to work within 28 weeks 100% 55% 66%

Percentage of managers trained in occupational safety and health and injury management responsibilities

Not Reported 37.5% 59%

Six rehabilitation cases were carried over into 2010–11 and there were two new rehabilitation cases established during 2010–11.

Industrial relationsThe Authority has a joint consultative committee in place with the Community and Public Sector Union and the Civil Service Association which meets monthly. Only one matter involving the Authority was brought before the Industrial Magistrates Court in 2010–11 and this was resolved informally.

There are currently no pending actions related to the Authority at the Industrial Relations Commission and the Authority is developing new guidelines around the amendments to the Public Sector Management Act 1994 concerning disciplinary matters.

Occupational health and safetyThe Authority has developed new policies and has commissioned an independent audit of its systems to be completed by the end of August 2011. Two-day accredited


training for all managers with supervisory responsibilities is also being developed for implementation during early 2011–12.

RecruitmentThe Authority has developed and implemented new policies and procedures to accommodate changes to the Recruitment Standard. There has been continued development of the online recruitment system and there is a dedicated careers link on our new website.

We are committed to more closely matching our workforce and client profiles and specific targeted recruitment strategies have been identified in our diversity plan.

There is a continued focus on reducing the time taken to complete recruitment processes and targets will be embedded in an organisational service level agreement. Attraction and retention packages have been developed to support regional and remote recruitment.


The Authority helps Western Australians to achieve home ownership through our Keystart lending division and low-deposit home ownership schemes.

Keystart provides full home ownership and shared equity schemes to help low-to-moderate income earners buy a property or build a new home.

In the two previous financial years, Keystart more than doubled the value of its portfolio of loans. During the global financial crisis private lending institutions tightened lending cirteria and Keystart, with the assistance of the temporary boost to First Home Owners Grants, was required to meet the significant demand gap at that time. This record level of activity significantly brought forward Keystart’s future demand. The activity for the 2010–11 financial year reflected the resultant reduced current demand.

Major achievements for 2010–11 include:

Keystart GeneralKeystart advanced new loans amounting to $314.8 million. This included approval of 526 loans spread evenly between new construction and established properties.

GoodStart shared equity schemeThis scheme helps public housing rental tenants and non-first home buyers to own their own homes. During the year, GoodStart assisted 98 Housing Authority rental tenants and applicants on the Authority’s rental waiting list into home ownership valued at $19.5 million.

Access shared equity schemeThis scheme helps people with disabilities to purchase a home. The scheme assisted 38 families with disabilities into home ownership valued at $4.8 million.

Aboriginal shared equity schemeThis scheme assists Aboriginal and Torres Strait Islanders. The scheme helped 60 families make the transition from renting to home ownership valued at $16.18 million.

Shared Equity SchemeWestern Australians struggling to secure affordable housing will benefit from an expanded shared equity home loan scheme to be launched in September 2011. The scheme, provided through Keystart, will provide up to 2,000 shared equity loans over the next two years.

Home ownership


With the strong economic growth of the past decade, increases in property prices and rents have consistently outstripped the rise in incomes for many people, creating a housing affordability crisis for more Western Australians and an increase in the social housing waiting list.

The release of the 10-year State Affordable Housing Strategy known as (‘Opening Doors’) in 2010–11 is a first for Western Australia. It provides a system-wide response to help address the decline in affordable housing.

The provision of essential services to remote Indigenous communities presents challenges for the Authority and its contracted service providers, with much of the infrastructure in remote communities ageing and becoming increasingly expensive to maintain and repair.

In 2011–12 the Authority will receive additional funding of $25.3 million to continue services under the Remote Area Essential Services Program and $6 million for the continued regularisation of services under the Town Reserves Regularisation Program for

Indigenous town-based communities.In addition, $12.2 million has been allocated from the State Government’s Royalties for Regions funding to improve water quality in up to 16 remote Indigenous communities. This funding will enable the Authority to improve water supply and treatment infrastructure in these communities in order to address public health risks and ensure compliance with Australian Drinking Water Guidelines.

Under Stage 2 of the Commonwealth stimulus program 1,764 dwellings will be completed by 2011–12. As part of the State Government’s strategy to build the capacity of the community housing sector to meet the housing needs of Western Australians, a significant portion of these properties will be transferred to community housing growth providers by June 2012. The transfer and head lease of public housing stock to these large community housing providers will enable them to borrow private funds to build an additional 1,000 homes by 2020. Creating a wider, more diverse social housing system will break down unnecessary barriers between

Significant issues impacting upon the Authority


the public and not-for-profit sectors and provide more opportunities for more clients. The community housing sector enjoys a number of tax and financial advantages over government in the provision of social and affordable housing that allows it to operate in a more cost-effective manner.

Funding of $33.2 million has been approved to support the new West Kimberley regional prison, scheduled for commissioning in early 2012. The State Government will provide up to 53 homes for employees of the Department of Corrective Services who will work at the prison.

In 2010–11 further progress was made on the Government’s initiative to identify and dispose of high-value Authority properties in order to reinvest the sale proceeds to buy affordable housing in more sustainable and less expensive suburbs. Under this initiative, at 30 June 2011, a total of 24 properties had been sold, realising $22.7 million and resulting in the acquisition of 25 established properties and the construction of 56 new units on land owned by the Authority.

The Authority continues to pursue critical partnerships with the private sector and build on the success of current Public Private Partnerships (PPPs) by using government land to attract private sector capital.

In 2011–12, the Government revised its Disruptive Behaviour Management Strategy and introduced a new disruptive behaviour policy in response to community concerns regarding the behaviour of some public housing tenants. The strategy aims to ensure that tenants who are seriously or continuously disruptive will be held to account for their behaviour.

Bethanie Peel residents Madeline and Dave Emery are very happy in their new home.


Independent auditor’s report


Financial Statements

87


Certification of Financial Statements

For the year ended 30 June 2011

The accompanying financial statements of the Housing Authority and the accompanying consolidated financial statements have been prepared in compliance with the provisions of the Financial Management Act 2006, from proper accounts and records, to present fairly the financial transactions for the financial year ended 30 June 2011 and the financial position as at 30 June 2011. 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.

Grahame Searle CHIEF EXECUTIVE OFFICER ACCOUNTABLE AUTHORITY

Lorne O’Mara CHIEF FINANCE OFFICER

31 August 2011


Financials table of contents Statement of comprehensive income 90 Statement of financial position 91 Statement of changes in equity 92 Statement of cash flows 93 Notes to the financial statements 94

Certification of key performance indicators 146Key performance indicators 147

Ministerial directives 158Other financial disclosures 159Pricing policies 159 Major Capital works 159 Staffing 164

Governance disclosures 165Other legal requirements 167Government policy requirements 170Housing statistics 173Our offices 178

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ousing Authority 2010–2011 A

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The Housing A

uthority and Controlled Entities Statem

ent of Com

prehensive Income for the year ended 30 June 2011

Note

Consolidated

Parent

20112010

20112010

$000$000

$000$000

INC

OM

ER

evenueS

ales6

174,254 244,711

174,254 244,711

Rental revenue

7352,056

321,187 352,056

321,187 C

omm

onwealth grants and contributions

8198,692

296,536 198,692

296,536 Interest revenue

9285,846

208,517 206,815

148,024 D

evelopers’ contributions3,070

3,391 3,070

3,391 O

ther revenue 10

10,013 12,623

60,775 11,053

TOTA

L INC

OM

E1,023,931

1,086,965 995,662

1,024,902

EX

PE

NS

ES

Cost of sales

6117,253

143,707 117,253

143,707 R

ental expenses12

275,122 302,192

275,122 302,192

New

Living expenses12

28,381 39,829

28,381 39,829

Com

munity support expense

13164,544

130,741 164,544

130,741 E

mployee benefi ts expense

1483,996

67,434 83,825

67,255 S

upplies and services15

44,221 30,370

40,011 27,063

Depreciation &

amortisation expense

16112,357

113,247 111,507

112,642 Finance costs

17257,089

190,893 257,048

190,860 A

ccomm

odation expenses18

8,113 7,167

6,597 6,043

Loss on disposal of non-current assets11

8,594 19,137

8,453 19,137

Other expenses

19318,930

43,261 306,704

34,084 TO

TAL EXPEN

SES1,418,600

1,087,978 1,399,445

1,073,553 Loss before grants and subsidies from

State G

overnment

(394,669)(1,013)

(403,783)(48,651)

Grants and subsidies from

State G

overnment

834,418

117,040 34,418

117,040 PR

OFIT/(LO

SS) FOR

THE PER

IOD

5(i)(360,251)

116,027 (369,365)

68,389

OTH

ER C

OM

PREH

ENSIVE IN

CO

ME

Changes in asset revaluation surplus

38852,042

(721,236)852,054

(721,215)G

ains on cash fl ow hedges

386

--

-Total other com

prehensive income

852,048 (721,236)

852,054 (721,215)

TOTA

L CO

MPR

EHEN

SIVE INC

OM

E FOR

THE PER

IOD

491,797 (605,209)

482,689 (652,826)

R

efer note 5 ‘Schedule of incom

e and expenses by service’

The S

tatement of C

omprehensive Incom

e should be read in conjunction with the accom

panying notes.

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The Housing A


ent of Financial Position as at 30 June 2011N

oteC

onsolidatedP

arent2011

20102011

2010$000

$000$000

$000A

SSETSC

urrent Assets

Cash and cash equivalents

2093,553

408,438 86,799

374,146 Inventories

21133,921

102,941 133,921

102,941 Loans and receivables

22877,285

893,265 138,146

86,109 O

ther current assets23

29,879 24,644

60,278 46,059

Non-current assets classifi ed as held for sale

2411,797

2,820 11,797

2,820 O

ther fi nancial assets25

270,066 80,081

--

Total Current A

ssets1,416,501

1,512,189 430,941

612,075

Non-C

urrent Assets

Inventories21

541,276 592,379

541,276 592,379

Loans and receivables22

3,175,824 3,336,653

3,913,916 3,997,711

Other fi nancial assets

2524

24 24

24 R

ental properties26

11,435,210 10,360,456

11,435,210 10,360,456

Com

munity housing properties

27741,067

669,667 741,067

669,667 S

hared equity properties28

573,477 527,491

573,477 527,491

Other properties

29100,543

80,921 100,543

80,921 P

lant & equipm

ent30

10,702 10,289

7,268 8,084

Buildings under construction

31275,832

265,633 275,832

265,633 Intangible assets

324,207

3,682 3,470

3,066 Total N

on-Current A

ssets16,858,162

15,847,195 17,592,083

16,505,432 TO

TAL A

SSETS18,274,663

17,359,384 18,023,024

17,117,507

LIAB

ILITIESC

urrent LiabilitiesP

ayables33

51,468 39,509

51,468 39,509

Borrow

ings34

70,332 76,517

70,332 76,517

Provisions

3524,455

23,916 24,455

23,916 O

ther current liabilities36

16,203 16,965

13,066 14,470

Total Current Liabilities

162,458 156,907

159,321 154,412

Non-C

urrent LiabilitiesP

ayables33

24 24

24 24

Borrow

ings34

5,110,196 5,227,090

5,110,196 5,227,090

Provisions

3535,278

35,966 35,278

35,966 Total N

on-Current Liabilities

5,145,498 5,263,080

5,145,498 5,263,080

TOTA

L LIAB

ILITIES5,307,956

5,419,987 5,304,819

5,417,492 N

ET ASSETS

12,966,707 11,939,397

12,718,205 11,700,015

EQU

ITY

Contributed equity

371,504,576

1,065,962 1,504,576

1,065,962 R

eserves38

8,580,441 7,728,399

8,579,671 7,727,617

Retained earnings

392,881,690

3,145,036 2,633,958

2,906,436 TO

TAL EQ

UITY

12,966,707 11,939,397

12,718,205 11,700,015

The S

tatement of Financial P

osition should be read in conjunction with the accom

panying notes.

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The Housing A


ent of Changes in Equity for the year 30 June 2011

Note

Consolidated

Parent

20112010

20112010

$000$000

$000$000

Balance of equity at start of period

11,939,397 11,933,378

11,700,015 11,741,634

CO

NTR

IBU

TED EQ

UITY

37B

alance at start of period1,065,962

612,361 1,065,962

612,361 C

apital contribution375,064

359,601 375,064

359,601 O

ther contributions by owner

63,550 94,000

63,550 94,000

Balance at end of period

1,504,576 1,065,962

1,504,576 1,065,962

RESER

VES38

Balance at start of period

7,728,399 8,449,635

7,727,617 8,448,832

(Loss)/profi t from asset revaluation

948,941 (563,609)

948,941 (563,609)

Transfer from S

tatement of C

omprehensive

Income

6 -

--

Transfer to retained earnings(96,905)

(157,627)(96,887)

(157,606)B

alance at end of period8,580,441

7,728,399 8,579,671

7,727,617

RETA

INED

EAR

NIN

GS

39B

alance at start of period3,145,036

2,871,382 2,906,436

2,680,441 3,145,036

2,871,382 2,906,436

2,680,441 Transfer from

reserves96,905

157,627 96,887

157,606 P

rofi t for the period(360,251)

116,027 (369,365)

68,389 B

alance at end of period2,881,690

3,145,036 2,633,958

2,906,436 B

alance of equity at end of period12,966,707

11,939,397 12,718,205

11,700,015

Total income and expense for the period (a)

588,690 (447,582)

579,576 (495,220)

(a) The aggregate net amount attributable to

each category of equity is:

Surplus

(360,251)116,027

(369,365)68,389

Asset R

evaluation loss948,941

(563,609)948,941

(563,609)588,690

(447,582)579,576

(495,220)

The Statem

ent of Changes in E

quity should be read in conjunction with the accom

panying notes.

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The Housing A


ent of Cash Flow

s for the year ended 30 June 2011N

oteC

onsolidated P

arent 2011

20102011

2010$000

$000$000

$000C

ASH

FLOW

S FRO

M O

PERATIN

G A

CTIVITIES

ReceiptsC

omm


198,692 296,536

198,692 296,536

Rental receipts

352,758 321,219

352,758 321,219

Interest received299,223

214,392 197,773

129,910 Inventory receipts on sales

138,010 225,139

138,010 225,139

Other receipts

11,169 17,955

36,190 17,973

GS

T receipts on sales14,184

5,579 14,184

5,579 G

ST receipts from

taxation authority38,760

10,965 38,760

10,965 D

evelopers contributions3,070

3,391 3,070

3,391

Payments

Em

ployee benefi ts(74,571)

(62,155)(74,592)

(62,155)A

ccomm

odation(6,597)

(6,043)(6,597)

(6,043)S

upplies & services

(69,800)(57,455)

(46,667)(33,509)

Finance costs paid to C

omm

onwealth governm

ent(21,461)

(22,049)(21,461)

(22,049)W

A Treasury Corporation

(225,267)(151,823)

(225,267)(151,823)

Other

(373)(394)

(373)(394)

Purchase and D

evelopment of Inventory

(198,362)(190,763)

(198,362)(190,763)

GS

T payments on purchases

(73,624)(36,661)

(73,624)(36,661)

GS

T payments to taxation authority

(626)(525)

(626)(525)

New

Living payments

(28,381)(39,829)

(28,381)(39,829)

Rental property paym

ents(282,663)

(310,315)(282,663)

(310,315)O

ther Paym

ents(182,991)

(166,840)(182,991)

(166,840)N

ET CA

SH U

SED IN

OPER

ATING

AC

TIVITIES40

(108,850)50,324

(162,167)(10,194)

CA

SH FLO

WS FR

OM

INVESTIN

G A

CTIVITIES

Receipts

Proceeds from

the sale of non-current physical assets78,534

96,026 78,512

96,026 H

ome loan repaym

ents received506,486

284,920 21

3 O

ther investing receipts-

-110,000

-Paym

entsP

urchase of non-current physical assets41

(625,587)(507,298)

(623,224)(505,092)

New

home loans advanced

(314,915)(1,757,293)

(2)(7)

Other investing paym

ents-

-(30,000)

(1,420,000)N

ET CA

SH U

SED IN

INVESTIN

G A

CTIVITIES

(355,482)(1,883,645)

(464,693)(1,829,070)

CA

SH FLO

WS FR

OM

FINA

NC

ING

AC

TIVITIESR

eceiptsP

roceeds from borrow

ingsW


30,000 1,521,554

30,000 1,521,554

Payments

Repaym

ent of borrowings from

WA Treasury C

orporation(149,294)

(22,341)(149,294)

(22,341)C

omm

onwealth governm

ent(13,733)

(13,396)(13,733)

(13,396)N

ET CA

SH U

SED IN

FINA

NC

ING

AC

TIVITIES(133,027)

1,485,817 (133,027)

1,485,817

CA

SH FLO

WS FR

OM

STATE GO

VERN

MEN

TC

apital Contribution

374,574 359,601

374,574 359,601

Royalties for regions funds

63,550 94,000

63,550 94,000

Proceeds from

grants34,418

117,040 34,418

117,040 N

ET CA

SH PR

OVID

ED B

Y STATE GO

VERN

MEN

T472,542

570,641 472,542

570,641 N

et increase in cash and cash equivalents(124,817)

223,137 (287,345)

217,194 C

ash and cash equivalents at the beginning of the period488,427

265,290 374,135

156,941 C

ASH

AN

D C

ASH

EQU

IVALEN

TS AT THE EN

D O

F PERIO

D42

363,610 488,427

86,790 374,135

The S

tatement of C

ash Flows should be read in conjunction w

ith the accompanying notes.

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NO

TES TO A

ND

FOR

MIN

G PA

RT O

F THE A

CC

OU

NTS

1. Australian A

ccounting Standards

General

The Housing A

uthority (the “parent entity”) and controlled entities fi nancial statements for the year ended 30 June 2011

have been prepared in accordance with A

ustralian Accounting S

tandards. The term ‘A


tandards’ includes S

tandards and Interpretations issued by the Australian A

ccounting Standard B

oard (AA

SB

). The Housing

Authority has adopted any applicable, new

and revised Australian A

ccounting Standards from

their operative dates.

Early adoption of standards

The Consolidated E

ntity cannot early adopt an Australian A

ccounting Standard unless specifi cally perm

itted by TI 1101 ‘A

pplication of Australian A

ccounting Standards and O

ther Pronouncem

ents’. No A


tandards that have been issued or am

ended but not operative have been early adopted by the Housing A

uthority for the annual reporting period ended 30 June 2011.

2. Summ

ary of signifi cant accounting policies

The following accounting policies adopted by the C

onsolidated Entity are stated in order to assist in a general

understanding of the fi nancial statements. U

nless otherwise stated these policies are consistent w

ith those adopted in the previous year.

(a) General Statement

The fi nancial statements constitute general purpose fi nancial statem

ents that have been prepared in accordance with

the Australian A

ccounting Standards, the Fram

ework, S

tatements of A

ccounting Concepts and other authoritative

pronouncements of the A


tandards Board as applied by the Treasurer’s instructions. S

everal of these are m

odifi ed by the Treasurer’s Instructions to vary application, disclosure, format and w

ording.

The Financial Managem

ent Act and the Treasurer’s instructions are legislative provisions governing the preparation

of fi nancial statements and take precedence over A


tandards, the Framew

ork, Statem

ents of A

ccounting Concepts and other authoritative pronouncem

ents of the AA

SB

.

Where m

odifi cation is required and has had a material or signifi cant fi nancial effect upon the reported results, details of

that modifi cation and the resulting fi nancial effect are disclosed in the notes to the fi nancial statem

ents.

(b) Basis of Preparation

The fi nancial statements have been prepared on the accrual basis of accounting using the historical cost convention,

modifi ed by the revaluation of land and buildings, and certain fi nancial instrum

ents which have been m

easured at fair value. The accounting policies adopted in the preparation of the fi nancial statem

ents have been consistently applied throughout all periods presented unless otherw

ise stated. The fi nancial statements are presented in A

ustralian dollars and all values are rounded to the nearest thousand dollars ($’000) or, in certain cases, to the nearest dollar.

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2. Summ

ary of signifi cant accounting policies (continued)

(c) Basis of Consolidation

The consolidated fi nancial statements have been prepared by com

bining the fi nancial statements of all entities that

comprise the C

onsolidated Entity, being The H

ousing Authority (the “parent entity”) and its controlled entities, in

accordance with A

AS

B 127 “C

onsolidated and Separate Financial S

tatements” and m

odifi ed by Treasurer’s Instruction 1105. A list of controlled entities appears in note 2(d). C

onsistent accounting policies have been applied in the preparation and presentation of the consolidated fi nancial statem

ents.

The consolidated fi nancial statements include the inform

ation and results of each controlled entity from the date

on which the H

ousing Authority obtains control and until such tim

e as the Housing A

uthority ceases to control such entities.In preparing the consolidated fi nancial statem

ents, all inter entity balances and transactions, and unrealised profi ts arising w

ithin the consolidated entity are eliminated in full.

(d) Legal form of Controlled Entities

(i) The Keystart H

ousing Schem

e includes a trust and company structure set up to enable funds to be raised through

the H

ousing Authority at com

petitive rates and on lent to Keystart borrow

ers for the purchasing of owner occupied

hom

es. The structure comprises:

•

The Keystart H

ousing Schem

e Trust established by a Deed of Trust in the S

tate of Western A

ustralia, dated 5

April 1989 w

ith Keystart Loans Ltd (a special purpose nom

inal capital company) as trustee and the A

uthority is

the sole benefi ciary of the trust. Keystart S

cheme M

anagement P

ty Ltd has been appointed as Manager

•

Keystart S

upport Trust - A special purpose trust used to provide fi nancial support to the Schem

e if required.

The Housing A

uthority is the sole benefi ciary of this trust.

•

Keystart Bonds Ltd - A special purpose nominal capital com

pany being the Issuer with O

akvale Capital Ltd as

treasury advisor.

•

Keystart S

upport Pty Ltd - A special purpose nom

inal capital company as trustee of the support trust. The

m

anager is Keystart S

cheme M

anagement P

ty Ltd.

•

Keystart S

upport (Subsidiary) P

ty Ltd - A special purpose nominal capital com

pany created to assist Keystart

S

upport Pty Ltd in its obligations.

•

Keystart S

cheme M

anagement P

ty Ltd - A special purpose nominal capital com

pany created to provide

managem

ent services to the Keystart Trustee and group of com

panies. All of these K

eystart trusts and

companies have been established in the S

tate of Western A

ustralia.

•

The fi nancial transactions for these entities have no effect on the net profi t of the Housing A

uthority. The

Housing A

uthority provides a support arrangement to the structure through the S

upport Trust.

(ii) Hom

eswest Loan S

cheme Trust - A special purpose Trust established by a Trust D

eed dated 19 Septem

ber

1995 to operate as an agent for the Housing A

uthority’s home loan schem

es. In its capacity as agent, the Trust

receives advances for the purpose of providing mortgages to W

estern Australians. The H

ousing Authority is the

sole benefi ciary of the Trust, and K

eystart Loans Ltd is the trustee of the Trust.

(e) Ownership Interest The H

ousing Authority is the instigator of the Keystart Housing Schem

e and has effective control over the whole structure

either directly or indirectly through various Agreements w

hich constitute the structure and to which it is a party.

The Board of D

irectors of the Keystart group of com

panies comprise one D

irector from the H

ousing Authority and

seven Directors from

the private sector.

The ow

nership interest held by the Housing A

uthority in the Com

panies is as follows:

•

Keystart B

onds Ltd : 100% of the total shareholding

•

Keystart Loans Ltd : 100%

of the total shareholding

•

Keystart S

upport Pty Ltd : 100%

of the total shareholding

•

Keystart S

upport (Subsidiary) P

ty Ltd: 100% of the total shareholding

•

Keystart S

cheme M

anagement P

ty Ltd: 100% ow

ned by Keystart Loans Ltd.

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(e) Ownership Interest (continued)

C

ontrolled entities and contribution to retained earningsN

ame

PercentageO

wned

Contribution to

Consolidated E

ntity result ($000)

Investment S

haresat cost ($)

20112010

20112010

20112010

Keystart B

onds Ltd100

100N

ilN

il6

6 K

eystart Loans Ltd100

100N

ilN

il6

6 K

eystart Support P

ty Ltd100

100N

ilN

il2

2 K

eystart Support (S

ubsidiary) Pty Ltd

100100

Nil

Nil

2 2

Keystart H

ousing Schem

e Trust P

rofi ts9,114

47,638 Transfer from

Reserve

18 21

Keystart S

upport TrustN

ilN

ilH

omesw

est Loan Schem

e TrustN

ilN

il

The Housing A

uthority is obligated to the Schem

e in that it has given various representations and obligations to investors or other creditors to the extent that it w

ill meet cash shortfalls and losses from

the Schem

e. Funding for Keystart is

through the Housing A

uthority with no borrow

ings outstanding through Keystart B

onds Ltd. The Housing A

uthority’s obligations to the various participants are contained in a S

upport Agreem

ent of the Schem

e. No subsidies w

ere required from

the Housing A

uthority for the 2010/2011 fi nancial year.

(f) Property, Plant and Equipment

C

apitalisation/expensing of assets

Items of property, plant and equipm

ent costing $5,000 or more are recognised as assets and the cost of utilising assets

is expensed (depreciated) over their useful lives. Items of property, plant and equipm

ent costing less than $5,000 are im

mediately expensed direct to the S

tatement of C

omprehensive Incom

e (other than where they form

part of a group of sim

ilar items w

hich are signifi cant in total).

Initial recognition and measurem

ent A

ll items of property, plant and equipm

ent are initially recognised at cost.

For items of property, plant and equipm

ent acquired at no cost or for nominal cost, the cost is the fair value at the date

of acquisition.

Subsequent m

easurement

Subsequent to initial recognition as an asset, the revaluation m

odel is used for the measurem

ent of land, buildings and the cost m

odel for all other property, plant and equipment. Land and buildings are carried at fair value less accum

ulated depreciation on buildings and accum

ulated impairm

ent losses. All other item

s of property, plant and equipment are stated

at historical cost less accumulated depreciation and accum

ulated impairm

ent losses.

Additions to non - current physical assets are m

easured at cost and are considered to represent fair value. P

roperties less than one year old are measured at construction cost, w

hich is considered to represent fair value, plus land at fair value

Where m

arket-based evidence is available, the fair value of land and buildings is determined on the basis of current

market buying values determ

ined by reference to recent market transactions. W

here market-based evidence is not

available, the fair value of land and buildings is determined on the basis of existing use. This norm

ally applies where

buildings are specialised or where land use is restricted. Fair value for existing use assets is determ

ined by reference to the cost of replacing the rem

aining future economic benefi ts em

bodied in the asset, i.e. the depreciated replacem

ent cost.

Land and buildings are independently valued annually by the Western A

ustralian Land Information A

uthority (Valuation S

ervices) and recognised annually to ensure that the carrying amount does not differ m

aterially from the asset’s fair value

at the end of the reporting period.

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(f) Property, Plant and Equipment (continued)

When buildings are revalued, the accum

ulated depreciation is eliminated against the gross carrying am

ount of the asset and the net am

ount restated to the revalued amount.

R

ental Properties represent the properties acquired or constructed for public housing. They also include S

tate owned

properties leased to State G

overnment departm

ents for Governm

ent employees housing.

Com

munity H

ousing Properties include properties acquired under the C

omm

onwealth and S

tate programs of C

risis A

ccomm

odation and Com

munity H

ousing and Joint Charity P

roperties.

Shared E

quity Properties represent the equity in dw

ellings constructed or purchased under the Shared E

quity Schem

e. U

nder the scheme the H

ousing Authority and the purchaser are co-ow

ners of the properties constructed or purchased as Tenants in C

omm

on with the purchaser having total occupation of the dw

elling.

Other P

roperties includes offi ces and comm

ercial properties which are ow

ned or are leased from various

organisations and individuals.

Depreciation and A

mortisation

A

ll non-current assets having a limited useful life are system

atically depreciated over their estimated useful lives in a

manner that refl ects the consum

ption of their future economic benefi ts. Land is not depreciated. D

epreciation for the C

onsolidated Entity’s assets is calculated on a straight line basis, using rates w

hich are reviewed annually.

Major depreciation rates are:

20112010

Rental P

roperties2%

2%C

omm

unity Housing P

roperties2%

2%S

hared Equity P

roperties3%

3%O

ther Properties

- Com

mercial P

roperties2%

2% - O

ffi ce Properties

5%5%

Plant &

Equipm

ent10%

- 50%10%

- 50%Intangible assets

20% - 50%

20% - 50%

Other N

on-current assets20%

- 50%20%

- 50%

(g) Buildings Under Construction

Buildings under construction are recorded at cost w

hich includes all costs directly related to specifi c constructions plus capitalised adm

inistration charges incurred in connection with these activities.

(h) Inventories

C

urrent Inventories are measured at the low

er of cost or net realisable value. Cost includes the cost of acquisition/

development and other capitalised costs. After developm

ent is completed, other holding charges are expensed as incurred

Non-C

urrent Inventories consists of both broad hectare land and lots under development, excluding lots available for

external sale (current inventory), which are valued at acquisition cost plus capitalised costs. D

eveloped lots on which

dwellings are subsequently constructed by the H

ousing Authority are transferred to the stock of R

ental Properties

at fair value as determined by the Valuer G

eneral at the date of practical completion. The difference betw

een this valuation and the cost of the land transferred to R

ental Properties represents a revaluation increm

ent which is brought

to account as an increase in the Asset R

evaluation Reserve.

Joint Venture Land

Joint Venture Land represents the H

ousing Authority’s equity in Joint Venture land developm

ent projects. Developm

ent costs represent the agreed proportion of developm

ent costs incurred plus capitalised costs. Land owned by the

Housing A

uthority is shown at cost plus capitalised costs.

Interests in joint venture operations have been incorporated in the fi nancial statements by including the H

ousing Authority’s share of assets em

ployed in the joint ventures, the share of liabilities incurred in relation to the joint ventures and the share of any expenses incurred in relation to the joint ventures in their respective classifi cation categories.

Details of the H

ousing Authority’s interests are set out in note 21.

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(i) Loans and Receivables

Receivables are recognised at original invoice am

ount less an allowance for any uncollectible am

ounts (i.e. impairm

ent). The collectability of receivables is review

ed on an ongoing basis and any receivables identifi ed as uncollectable are written-

off against the allowance account. The allow

ance for uncollectable amounts is raised w

hen there is objective evidence that the C

onsolidated Entity will not be able to collect the debts. The carrying am

ount is equivalent to fair value. These debts are due and payable w

ithin 30 days with the exception of the follow

ing receivable categories.

Receivables Land - are carried at nom

inal amounts. S

ales and receivables are recognised once the debtor has obtained fi nancing and the sale has becom

e unconditional. Land sales are on a 30 day term once the sale has

become unconditional.

Receivables R

ent from Tenants - are carried at nom

inal amounts due less any provision for im

pairment. R

ent receivable is due w

eekly in advance.

Receivables R

ental Bonds - are carried at nom

inal amounts due less any provision for im

pairment. R

ental bond assistance receivables represent advances m

ade to qualifying persons for the purpose of renting properties external to the H

ousing Authority. E

ach advance is repayable in minim

um fortnightly paym

ents of $15 for loans granted prior to 1 July 2009 and $25 per fortnight for loans granted from

1 July 2009 with rem

aining balance being collectable on vacation of property.

Loans

Loans and receivables are non-derivative fi nancial assets with fi xed or determ

inable payments that are not quoted in

an active market. The collateral held for these loans is by a registered m

ortgage held over the property.

Recognition and D

erecognition

Regular w

ay purchases and sales of fi nancial assets are recognised on trade-date – the date on which the

Consolidated E

ntity comm

its to purchase or sell the asset. Financial assets that are carried at fair value through profi t or loss are initially recognised at fair value and transaction costs are expensed in the S

tatement of C

omprehensive

Income. Loans and receivables are initially recognised at fair value. Transaction costs, including loan origination

expenses, are included in the measurem

ent of all loans and advances. The loan origination fees are being amortised

in equal instalments over the average life of the loans.

Financial assets are derecognised when the right to receive cash fl ow

s from the fi nancial assets have expired or have

been transferred and the Consolidated E

ntity has transferred substantially all the risks and rewards of ow

nership.

Subsequent M

easurement

Loans and receivables are carried at am

ortised cost using the effective interest method.

Fair Value

The fair value of the fi nancial assets traded in active m

arkets is based on quoted market prices at the S

tatement of

Financial Position date. If the m

arket for a fi nancial asset is not active (and for unlisted securities), the Consolidated

Entity establishes fair value by using valuation techniques These include the use of recent arm

’s length transactions, reference to other instrum

ents that are substantially the same, discounted cash fl ow

analysis, and option pricing m

odels making m

aximum

use of market inputs and relying as little as possible on entity-specifi c inputs.

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(i) Loans and receivables (continued)

Impairm

ent of Loans

The Consolidated Entity assesses at the end of the reporting period w

hether there is objective evidence that a fi nancial asset or group of fi nancial assets is im

paired. In case of loans and receivables, a provision for impairm

ent is made w

hen there is objective evidence that the loan w

ill not be collectable. When a receivable is im

paired, the Consolidated Entity

reduces the carrying amount to its recoverable am

ount, being the estimated future cash fl ow

discounted at the original effective interest rate of the instrum

ent and continues unwinding the discount as interest incom

e.

The carrying amount of the asset is reduced through the use of an allow

ance account and the amount of the loss is

recognised in the Statement of C

omprehensive Incom

e within ‘Im

pairment of R

eceivables’. When a loan or advance is

uncollectable, it is written off against the allow

ance account for loans and advances. Subsequent recoveries of amounts

previously written off are credited against ‘Im

pairment of R

eceivables’ in the Statement of C

omprehensive Incom

e.

(j) Derivative financial instruments and hedging

The Consolidated Entity uses derivate fi nancial instrum

ents to hedge its risks associated with interest rate fl uctuations.

Such derivative fi nancial instruments are initially recognised at fair value on the date a derivative contract is entered

into and are subsequently remeasured to fair value. The accounting for subsequent changes in fair value depends on

whether the derivative is designated as a hedging instrum

ent, and if so, the nature of the item being hedged.

The Consolidated E

ntity designates derivatives as hedges of the cash fl ows of recognised assets and liabilities and

highly probable forecast transactions (cash fl ow hedges).

The Consolidated E

ntity documents at the inception of the hedging transaction the relationship betw

een hedging instrum

ents and hedged items, as w

ell as its risk managem

ent objective and strategy for undertaking various hedge transactions. The C

onsolidated Entity also docum

ents its assessment, both at hedge inception and on an ongoing

basis, of whether the derivatives that are used in hedging transactions have been and w

ill continue to be highly effective in offsetting changes in fair values or variability of cash fl ow

s of hedged transactions. Hedged effectiveness is

always calculated w

hen the terms of the derivative and hedged item

are matched.

Keystart uses interest rate caps and sw

aps to hedge its risks associated with interest rate fl uctuations.

C

ash Flow H

edge

The effective portion of changes in the fair value of derivatives that are designated and qualify as cash fl ow hedges

is recognised in equity in the hedging reserve and reclassifi ed into profi t and loss when the hedge interest expense is

recognised. The gain or loss relating to the ineffective portion is recognised imm

ediately in the Statem

ent of C

omprehensive Incom

e within other incom

e or other expenses.

If the hedging instrument no longer m

eets the criteria for hedge accounting, expires or is sold, terminated or exercised,

then hedge accounting is discontinued prospectively. The cumulative gain or loss existing in equity at that tim

e remains

in equity and is recognised when the forecast transaction is ultim

ately recognised in the Statem

ent of Com

prehensive Incom

e. When a forecast transaction is no longer expected to occur, the cum

ulative gain or loss that was reported in

equity is imm

ediately transferred to the Statem

ent of Com

prehensive Income.

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(k) Intangible Assets

Com

puting Softw

are and Developm

ent

Capitalisation/expensing of assets

Acquisition of intangible assets costing less than $5,000 are expensed in the year of acquisition. W

here software is

an integral part of the related hardware, it is treated as property, plant and equipm

ent. Where the softw

are is not an integral part of the related hardw

are, it is treated as an intangible asset.

All acquired and internally developed intangible assets are initially recognised at cost. For assets acquired at no cost or

for nominal cost, the cost is their fair value at the date of acquisition.

Costs associated w

ith the acquisition and development of com

puter systems and softw

are are amortised from

the com

mencem

ent of live production of the system. D

evelopment costs are deferred to future periods to the extent that

future benefi ts, are expected beyond any reasonable doubt, to be equal to or exceed those costs. Deferred costs are

amortised, from

the comm

encement of live production of the system

, on a straight line basis over the period of their expected benefi t

Am

ortisation for intangible assets with fi nite useful lives is calculated for the period of the expected benefi t (estim

ated useful life w

hich is reviewed annually) on the straight line basis. A

ll intangible assets controlled by the Consolidated

Entity have a fi nite useful life and zero residual value. The expected useful lives for each class of intangible asset are:

20112010

Com

puting software

20% - 50%

20% - 50%

Com

puting development

20%

20%

(l) Other Financial Assets

D

eposits at Call

The fair values of the B

ank bills are determined using generally accepted pricing m

odels based on discounted cash fl ow

analysis using prices from observable current m

arket transactions.

(m) Non-Current Assets Held For Sale

Non-current assets are classifi ed as assets held for sale if their carrying am

ount is to be recovered principally through a sale transaction rather than through continuing use, the asset is available for im

mediate sale and the sale is highly

probable. Non-current assets held for sale are recognised at the low

er of carrying amount or fair value less costs

to sell and are disclosed separately in the Statem

ent of Financial Position. A

ssets classifi ed as held for sale are not depreciated or am

ortised.

(n) Im

pairment of Assets

Property, plant and equipment and intangible assets are tested for any indication of im

pairment at the end of each

reporting period. Where there is an indication of im

pairment, the recoverable am

ount is estimated. W

here the recoverable am

ount is less than the carrying amount, the asset is considered im

paired and is written dow

n to the recoverable am

ount and an impairm

ent loss is recognised. As the Consolidated Entity is a not-for-profi t entity, unless an asset has

been identifi ed as a surplus asset, the recoverable amount is the higher of an asset’s fair value less costs to sell and

depreciated replacement cost.

The risk of impairm

ent is generally limited to circum

stances where an asset’s depreciation is m

aterially understated, w

here the replacement cost is falling or w

here there is a signifi cant change in useful life. Each relevant class of assets

is reviewed annually to verify that the accum

ulated depreciation/amortisation refl ects the level of consum

ption or expiration of the asset’s future econom

ic benefi ts and to evaluate any impairm

ent risk from falling replacem

ent costs.

Intangible assets with an indefi nite useful life and intangible assets not yet available for use are tested for im

pairment

at the end of each reporting period irrespective of whether there is any indication of im

pairment.

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(o) Payables

Payables are recognised w

hen the Consolidated E

ntity becomes obliged to m

ake future payments as a result of a

purchase of assets or services at the amounts payable. The carrying am

ount is equivalent to fair value, as they are generally settled w

ithin 30 days with the exception of the follow

ing classes of payables.

P

ayables Land Deposits - are recognised on receipt of cash.

When the sale becom

es unconditional the Housing A

uthority retains the deposit as part of the sale process. P

ayables Construction R

etention monies - are repaid upon 100%

completion of the contract w

ith 2.5% w

ithheld to satisfactory com

pletion of maintenance agreem

ent.Payables R

ental Bonds - tenant bonds are payable on the tenant vacating the premises. The ultim

ate amount 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. P

ayables Water C

onsumption - liabilities are recognised for am

ounts to be paid in the future for w

ater usage.Liabilities are settled on 90 day term

s.

(p) Borrowings

All borrow

ings are initially recognised at fair value. Subsequent m

easurement is at am

ortised cost using the effective interest rate m

ethod. Interest is charged as an expense as it accrues.

Term

s

Borrow

ings - WATC

. Are variable rate borrow

ings and repayable when due. Fixed rate borrow

ings are subject to interest paym

ents only with the full loan being due on m

aturity.

B

orrowings - C

omm

onwealth A

dvances. Are fi xed rates and repayable on an annual basis w

ith fi nal instalments

being due between June 2012 and June 2042.

(q) Income

Revenue R

ecognition

Revenue is recognised and m

easured at the fair value of consideration received or receivable. Revenue is recognised

for the major business activities as follow

s:

(i) Rental P

roperty Revenue

The Housing A

uthority charges rents in accordance with section 30 of the H

ousing Act. The basis for the am

ount of rent to be charged is determ

ined from m

arket rent information received from

the Valuer General and due

consideration to regional rental markets. R

ental property revenue represents the net rental revenue which consists

of market rents less vacancies, concessions and rental subsidies granted throughout the year. R

ental income is

recognised on a straight-line basis over the lease term.

(ii) Sales

Revenue from

land sales is recognised when the contract for sale becom

es unconditional.

(iii) Grants, donations, gifts and other non-reciprocal contributions.

Revenue is recognised at fair value w

hen the Consolidated E

ntity obtains control over the assets comprising the

contributions, usually when cash is received.

Other non-reciprocal contributions that are not contributions by ow

ners are recognised at their fair value. C

ontributions of services are only recognised when a fair value can be reliably determ

ined and the services would

be purchased if not donated.

Royalties for R

egions funds are recognised as revenue at fair value in the period in which the H

ousing Authority

obtains control over the funds. The Housing A

uthority obtains control of the funds at the time the funds are

deposited into the Housing A

uthority’s bank account.

(iv) InterestInterest incom

e 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 the disposal of

non-current assets.

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(r) Insurance

In accordance with Treasurer’s Instruction 812 the H

ousing Authority m

aintains an appropriate level of insurance cover over insurable risks.

A comprehensive review

of the Housing A

uthority’s insurances was undertaken during 2010/2011. E

ffective from 1

July 2004 the Housing A

uthority has adopted a self insurance policy for its residential property assets. The Housing

Authority’s other insurance program

s continue to be a combination of insurance policies provided by com

mercial

insurance providers and the Western A

ustralian Governm

ent’s RiskC

over fund.

As per Treasurer’s Instruction 825, Insurance is com

plemented by a com

prehensive approach to Risk

M

anagement and prudent m

anagement policies and practices.

(s) Provisions

Provisions are liabilities of uncertain tim

ing or amount. The H

ousing Authority only recognises a provision w

here there is a present legal, equitable or constructive obligation as a result of a past event and w

hen the outfl ow of resources

embodying econom

ic benefi ts is probable and a reliable estimate can be m

ade of the amount of the obligation.

Provisions are review

ed at the end of each reporting period and adjusted to refl ect the current best estimate.

(i) Em

ployee Benefi ts

A

ll annual leave and long service leave provisions are in respect of employees’ services up to the end of the

reporting period.

Annual Leave

The liability for annual leave expected to be settled within 12 m

onths after the reporting period is recognised and m

easured at the undiscounted amounts expected to be paid w

hen the liability is settled. Annual leave not

expected to be settled within 12 m

onths after the reporting period is recognised and measured at the present

value of amounts expected to be paid w

hen the liabilities are settled using the remuneration rate expected to

apply at the time of settlem

ent.

When assessing expected future paym

ents consideration is given to expected future wage and salary levels

including non-salary components such as em

ployer superannuation contributions as well as the experience of

employee departures and periods of service.

The expected future payments are discounted to present value using m

arket yields at the end of the reporting period on national governm

ent bonds with term

s to maturity that m

atch, as closely as possible, the estimated

future cash outfl ows.

The provision for annual leave is classifi ed as a current liability as the Housing A

uthority does not have an unconditional right to defer settlem

ent of the liability for at least 12 months after the reporting period.

Long Service Leave

The liability for long service leave expected to be settled within 12 m

onths after the reporting period is recognised and m

easured at the present value of amounts expected to be paid w

hen the liabilities are settled using the rem

uneration rate expected to apply at the time of settlem

ent.

When assessing expected future paym

ents consideration is given to expected future wage and salary levels

including non-salary components such as em

ployer superannuation contributions, as well as the experience of

employee departures and periods of service. The expected future paym

ents are discounted using market yields

at the end of the reporting period on national government bonds w

ith terms to m

aturity that match, as closely as

possible, the estimated future cash outfl ow

s

Unconditional long service leave provisions are classifi ed as current liabilities as the H

ousing Authority does not

have an unconditional right to defer settlement of the liability for at least 12 m

onths after the reporting period.

Conditional long service leave provisions are classifi ed as non-current liabilities because the H

ousing Authority

has an unconditional right to defer the settlement of the liabilities until the em

ployee has completed the requisite

years of service.

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(s) Provisions (continued)

S

uperannuation

The Governm

ent Em

ployees Superannuation B

oard (GE

SB

) administers public sector superannuation

arrangements in W

estern Australia in accordance w

ith legislative requirements.

Eligible em

ployees contribute to the Pension S

cheme, a defi ned benefi t pension schem

e closed to new

mem

bers, since 1987, or to the Gold S

tate Superannuation S

cheme (G

SS

), a defi ned benefi t lump sum

scheme

closed to new m

embers since 1995. E

mployees com

mencing em

ployment prior to 16 A

pril 2007 who w

ere not m

embers of either the P

ension Schem

e or the GS

S S

chemes becam

e non-contributory mem

bers of the West

State S

uperannuation Schem

e (WS

S). E

mployees com

mencing em

ployment on or after 16 A

pril 2007 became

mem

bers of the GE

SB

Super S

cheme (G

ES

BS

). Both of these schem

es are accumulation schem

es. The Housing

Authority m

akes concurrent contributions to GE

SB

on behalf of employees in com

pliance with the C

omm

onwealth

Governm

ent’s Superannuation G

uarantee (Adm

inistration) Act 1992. These contributions extinguish the liability for

superannuation charges in respect of the WS

S and G

ES

BS

Schem

es

The Pension S

cheme and the pre-transfer benefi t for em

ployees who transferred to the G

SS

Schem

e are defi ned benefi t schem

es. These benefi ts are wholly unfunded and the liabilities for future paym

ents are provided for at the end of the reporting period. The liabilities under these schem

es have been calculated separately for each scheme

annually by external actuaries using the projected unit credit method.

The expected future payments are discounted to present value using m

arket yields at the end of the reporting period on national governm

ent bonds with term

s to maturity that m

atch, as closely as possible, the estimated

future cash outfl ows.

The GS

S S

cheme, the W

SS

Schem

e, and the GE

SB

S S

cheme, w

here the current service superannuation charge is paid by the A

uthority to the GE

SB

, are defi ned contribution schemes. The liabilities for current service

superannuation charges under the G

SS

Schem

e, the WS

S S

cheme, and the G

ES

BS

Schem

e are extinguished by the concurrent paym

ent of employer contributions to the G

ES

B.

The Gold S


cheme is a defi ned benefi t schem

e for the purposes of employees and w

hole-of-governm

ent reporting. How

ever, from an agency perspective, apart from

the transfer benefi ts, it is a defi ned contribution plan under A

AS

B 119.

(ii) Other

Em

ployment on-costs

Em

ployment on-costs, including w

orkers’ compensation insurance and payroll tax, are not em

ployee benefi ts and are recognised separately as liabilities and expenses w

hen the employm

ent to which they relate has occurred.

Em

ployment on-costs are included as part of the A

uthority’s ‘Other expenses’ and the related liability is included in

Em

ployment on-costs provision.

Developm

ent Levies

Is a provision calculated on lots sold and comm

unity projects representing fencing and landscaping incentives for fi rst hom

e buyers to purchase Housing A

uthority land. The provision represents the estimated liability at balance

sheet date for future claims by the purchasers against the H

ousing Authority.

(t) Accrued Salaries

Accrued salaries represent the am

ount due to staff but unpaid at the end of the fi nancial year. Accrued salaries are

settled within a fortnight of the fi nancial year end. The H

ousing Authority considers the carrying am

ount of accrued salaries to be equivalent to the net fair value.

(u) Borrowing costs

Borrow

ing costs are expensed when incurred and represents the total fi nance costs in the S

tatement of

Com

prehensive Income.

(v) Superannuation expense

The superannuation expense of the defi ned benefi t plans is made up of the follow

ing elements:

• C

urrent service cost;•

Interest cost (unwinding of the discount);

• A

ctuarial gains and losses; and•

Past service cost.

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2. Summ


(v) Superannuation expense (continued)

Actuarial gains and losses of the defi ned benefi t plans are recognised im

mediately as incom

e or expense in the S

tatement of C

omprehensive Incom

e. The superannuation expense of the defi ned contribution plans is recognised as and w

hen the contributions fall due and forms part of the ‘E

mployee B

enefi ts expense’.

See also note 2(s)(i) ‘P

rovisions – Em

ployee Benefi ts’ under the heading “S

uperannuation”.

(w) Leases

The Housing A

uthority has entered into a number of operating lease arrangem

ents for buildings and vehicles where

the lessors effectively retain the majority of the risks and benefi ts incidental to ow

nership of the items held under the

operating leases. Equal instalm

ents of the lease payments are charged to the S

tatement of C

omprehensive Incom

e over the lease term

, as this is representative of the pattern of benefi ts to be derived from the leased property.

(x) Rental Expenses

Expenses incurred relating to the H

ousing Authority’s ow

ned or leased rental properties are accounted for in the R

ental Expenses line of the S

tatement of C

omprehensive Incom

e. These expenses which directly relate to the R

ental P

rogram include m

aintenance, rates, insurance expenses and renovations and improvem

ents.

(y) New Living Expenses



ned rental properties involved in the New

Living Program

are accounted for in the N

ew Living E

xpenses line of the Statem

ent of Com

prehensive Income. These expenses include

renovations and minor im

provements.

(z) Comparative Figures

Com

parative fi gures are, where appropriate, reclassifi ed to be com

parable with the fi gures presented in the current

fi nancial year.

(aa) Segment Inform

ation

The Consolidated E

ntity’s operations are divided into four specifi c services.

These are:

Rental P

ublic Housing - providing access to affordable rental accom

modation for low

to moderate incom

e W

estern Australians;

Rental G

overnment E

mployees - providing access to rental accom

modation for governm

ent employees in

regional areas;Loans - providing realistic hom

e ownership opportunities for low

to moderate incom

e Western A

ustralians provided by the H

ousing Authority and through its K

eystart Housing S

cheme;

Land operations - provision of low to m

edium priced subdivided land for sale.

(ab) Financial Instruments

(Refer to note 49 for quantitative disclosure including interest rate risk and liquidity risk analysis.)

In addition to cash, the Consolidated E

ntity has three categories of fi nancial instruments:

Loans and receivables

Financial liabilities

Financial assets at fair value through profi t and loss

These have been disaggregated into the follow

ing classes:

Financial Assets



Short term

deposits

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2. Summ


(v) Superannuation expense (continued)

Actuarial gains and losses of the defi ned benefi t plans are recognised im

mediately as incom

e or expense in the S

tatement of C

omprehensive Incom

e. The superannuation expense of the defi ned contribution plans is recognised as and w

hen the contributions fall due and forms part of the ‘E

mployee B

enefi ts expense’.

See also note 2(s)(i) ‘P

rovisions – Em

ployee Benefi ts’ under the heading “S

uperannuation”.

(w) Leases

The Housing A

uthority has entered into a number of operating lease arrangem

ents for buildings and vehicles where

the lessors effectively retain the majority of the risks and benefi ts incidental to ow

nership of the items held under the

operating leases. Equal instalm

ents of the lease payments are charged to the S

tatement of C

omprehensive Incom

e over the lease term

, as this is representative of the pattern of benefi ts to be derived from the leased property.

(x) Rental Expenses



ned or leased rental properties are accounted for in the R

ental Expenses line of the S

tatement of C

omprehensive Incom

e. These expenses which directly relate to the R

ental P

rogram include m

aintenance, rates, insurance expenses and renovations and improvem

ents.

(y) New Living Expenses



ned rental properties involved in the New

Living Program

are accounted for in the N

ew Living E

xpenses line of the Statem

ent of Com

prehensive Income. These expenses include

renovations and minor im

provements.

(z) Comparative Figures

Com

parative fi gures are, where appropriate, reclassifi ed to be com

parable with the fi gures presented in the current

fi nancial year.

(aa) Segment Inform

ation

The Consolidated E

ntity’s operations are divided into four specifi c services.

These are:

Rental P

ublic Housing - providing access to affordable rental accom

modation for low

to moderate incom

e W

estern Australians;

Rental G

overnment E

mployees - providing access to rental accom

modation for governm

ent employees in

regional areas;Loans - providing realistic hom

e ownership opportunities for low

to moderate incom

e Western A

ustralians provided by the H

ousing Authority and through its K

eystart Housing S

cheme;

Land operations - provision of low to m

edium priced subdivided land for sale.

(ab) Financial Instruments

(Refer to note 49 for quantitative disclosure including interest rate risk and liquidity risk analysis.)

In addition to cash, the Consolidated E

ntity has three categories of fi nancial instruments:


Financial liabilities

Financial assets at fair value through profi t and loss

These have been disaggregated into the follow

ing classes:

Financial Assets



Short term

deposits

2. Summ


(ab) Financial Instruments (continued)

Financial Liabilities

Payables

WATC

borrowings

Com

monw

ealth borrowings

Initial recognition and measurem

ent of fi nancial instruments is at fair value w

hich normally equates to the transaction

cost or the face value. Subsequent m

easurement is at am

ortised cost using the effective interest rate method. The

Consolidated E

ntity does not enter into fi nancial instruments for speculative purposes.

Keystart

The Entity’s activities expose it to a variety of fi nancial risks; m

arket risk (including interest rate risk), credit risk and liquidity risk. The overall risk m

anagement program

focuses on the unpredictability of fi nancial markets and seeks

to minim

ise potential adverse effects on the fi nancial performance of the E

ntity. The Entity uses derivative fi nancial

instruments such as interest rate caps and interest rate sw

aps to hedge interest rate risk exposure. The Entity

uses different methods to m

easure different types of risk to which it is exposed. These m

ethods include sensitivity analysis (specifi cally VaR

- Value at Risk m

odel) in the case of interest rate risk and ageing analysis for credit risk and beta analysis in respect of investm

ent portfolios to determine m

arket risk.

Risk m

anagement is carried out by the Treasury C

omm

ittee under policies approved by the Keystart B

oard of D

irectors. The Treasury Com

mittee identifi es, evaluates and hedges fi nancial risks in close co-operation w

ith the E

ntity’s operating units. The Keystart B

oard provides written principles for overall risk m

anagement, as w

ell as policies covering specifi c areas, such as interest rate risk, credit risk, use of derivative fi nancial instrum

ents and non-derivative fi nancial instrum

ents, and investment of excess liquidity.

Market R

isk

Keystart

(i) Interest Rate R

isk

B

orrowings issued at short term

rates expose the Entity to interest rate risk if changes to rates are not passed on to

customers. B

orrowings issued at fi xed rates expose the E

ntity to fair value interest rate risk. The Entity’s policy is to

hedge (i.e fi x) a portion of its borrowings portfolio w

ithin the following hedge ratio lim

its of total liabilities:

HE

DG

E R

ATIO LIM

ITS

BM

Min

Max

BM

= Benchm

ark

0-1 Year55%

0%70%

1-2 Years20%

0%30%

2-3 Years10%

0%20%

3+ Years0%

0%15%

The ratio of hedging applied is calculated with reference to the borrow

ings only, and does not factor the loan assets held by the E

ntity.

During the fi nancial year ending 30 June 2011 and prior fi nancial year, the E

ntity’s borrowings w

ere denominated in

Australian D

ollars.

Based on various scenarios, the E

ntity manages its cash fl ow

interest rate risk by using fl oating-to-fi xed interest rate sw

aps and interest rate caps. Such interest rate sw

aps have the economic effect of converting borrow

ings from

fl oating rates to fi xed rates. Under interest rate caps, the E

ntity receives funds from its cap counterparty should the

fl oating interest rate exceed the value of the capped interest rate. Under interest rate sw

aps, the Entity agrees w

ith other parties to exchange, at specifi ed intervals (m

onthly and quarterly), the difference between fi xed contract rates

and fl oating-rate interest amounts calculated by reference to the agreed notional principal am

ounts.

(ii) Sum

marised S

ensitivity Analysis

Keystart uses Value at R

isk (VaR) A

nalysis to measure its sensitivity to m

ovements in interest rates.

The VaR risk m

easure estimates the potential loss in profi t over a given holding period for a specifi ed confi dence

level. The VaR m

ethodology is a statistically defi ned, probability – based approach that takes into account market

volatilities as well as risk diversifi cation by recognising offsetting positions and correlations betw

een products. The m

ain risk arises where K

eystart cannot pass changes in its borrowing interest rates to its loan receivables. The VaR

for K

eystart is traditionally low because K

eystart passes on changes in its borrowing interest rates.

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2. Summ

ary of signifi cant accounting policies (continued)(ab) Financial Instrum

ents (continued)

Based on a 99%

confi dence level and a 250 day observation period, the VaR for K

eystart was favourable at 0.12%

of its capital at 30 June 2011 (2010: 0.23%

)

The limitation of the VaR

model is that historical data m

ay not provide the best estimates of the risk factor changes in

the future and may fail to capture the risk of possible extrem

e adverse market m

ovements w

hich have not occurred in past calculations.

2011H

istorical VaR (99%

, one day) By risk type

Average$’000

Minim

um$’000

Maxim

um$’000

Year End

$’000

Total VaR E

xposure1,329

2932,968

293

2010H

istorical VaR (99%


Average$’000

Minim

um$’000

Maxim

um$’000

Year End

$’000

Total VaR E

xposure976

2762,133

535

Credit R

isk Exposure

The Consolidated E

ntity’s maxim

um exposures to credit risk at reporting date in relation to each class of recognised

fi nancial asset is the carrying amount of those assets as indicated in the S


osition. The C

onsolidated Entity’s credit risk is spread over a signifi cant num

ber of parties and is concentrated only to the extent of the W

A residential market. The C

onsolidated Entity is therefore not m

aterially exposed to any particular individual party or group of parties. In relation to derivative fi nancial instrum

ents, whether recognised or unrecognised, credit

risk arises from the potential failure of counterparties to m

eet their obligations under the contract or arrangement.

The Consolidated E

ntity’s maxim

um credit risk exposure in relation to these is as follow

s:

The Consolidated E

ntity minim

ises concentrations of credit risk in relation to loans and advances by undertaking transactions w

ith a number of borrow

ers, within specifi ed m

aximum

limits based upon the assessm

ent of each borrow

er’s ability to service a mortgage. The C

onsolidated Entity concentrates 100%

of its lending to purchase of residential real estate w

ithin Western A

ustralia. Security is provided to the C

onsolidated Entity through a m

ortgage over the property.

The maxim

um exposure to credit risk at reporting date is the higher of the carrying value and fair value of each

class of receivables.

Keystart

Credit risk arises from

transactions that give rise to actual, contingent or potential claims against any borrow

er or counterparty.

Credit risk is m

anaged on a group basis through having prudential lending policies to mitigate borrow

er risk. This includes having m

aximum

Debt S

ervicing Ratios and strict incom

e verifi cation procedures. In addition to these credit policies, K

eystart maintains adequate provisions for bad and doubtful debts and capital adequacy ratios to m

anage the effects of any losses. C

ounterparty credit risk arises from cash and cash equivalents, loans and receivables,

derivative fi nancial instruments and deposits w

ith banks and fi nancial institutions including outstanding receivables and com

mitted transactions. For banks and fi nancial institutions, only independently rated parties w

ith a minim

um

rating of ‘A’ are accepted. Individual risk limits are set based on internal or external ratings in accordance w

ith limits

set by the Board. C

ounterparties must have S

tandard and Poor’s long term

rating of at least “A+” for any derivative

transaction executed and “A” (or better) for authorised investm

ents.

Housing A

uthority

In relation to other receivables (including rental and bond debtors), the Housing A

uthority has a minim

al credit risk due to the receivables debt being spread across a num

ber of debtors exceeding 45,000. The collectability of rental receivables is review

ed on an ongoing basis in accordance with the H

ousing Authority’s policy and procedure

manuals. These policy and procedure m

anuals are reviewed by M

anagement on a regular basis.

Liquidity Risk

The Consolidated Entity is exposed to liquidity risk in respect of its payable, accrued em

ployee expenses and governm

ent borrowings, in that the C

onsolidated Entity needs to be able to pay these amounts w

hen they fall due. The C

onsolidated Entity has implem

ented and maintains robust cash m

anagement practices, including day-to-day

monitoring and regular liquidity reporting to the Accountable O

ffi cer. These practices ensure cash resources are adequate to m

eet future comm

itments.

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2. Summ

ary of signifi cant accounting policies (continued)(ab) Financial Instrum

ents (continued)

Based on a 99%

confi dence level and a 250 day observation period, the VaR for K

eystart was favourable at 0.12%

of its capital at 30 June 2011 (2010: 0.23%

)

The limitation of the VaR

model is that historical data m

ay not provide the best estimates of the risk factor changes in

the future and may fail to capture the risk of possible extrem

e adverse market m

ovements w

hich have not occurred in past calculations.

2011H

istorical VaR (99%


Average$’000

Minim

um$’000

Maxim

um$’000

Year End

$’000

Total VaR E

xposure1,329

2932,968

293

2010H

istorical VaR (99%


Average$’000

Minim

um$’000

Maxim

um$’000

Year End

$’000

Total VaR E

xposure976

2762,133

535

Credit R

isk Exposure

The Consolidated E

ntity’s maxim

um exposures to credit risk at reporting date in relation to each class of recognised

fi nancial asset is the carrying amount of those assets as indicated in the S


osition. The C

onsolidated Entity’s credit risk is spread over a signifi cant num

ber of parties and is concentrated only to the extent of the W

A residential market. The C

onsolidated Entity is therefore not m

aterially exposed to any particular individual party or group of parties. In relation to derivative fi nancial instrum

ents, whether recognised or unrecognised, credit

risk arises from the potential failure of counterparties to m

eet their obligations under the contract or arrangement.

The Consolidated E

ntity’s maxim

um credit risk exposure in relation to these is as follow

s:

The Consolidated E

ntity minim

ises concentrations of credit risk in relation to loans and advances by undertaking transactions w

ith a number of borrow

ers, within specifi ed m

aximum

limits based upon the assessm

ent of each borrow

er’s ability to service a mortgage. The C

onsolidated Entity concentrates 100%

of its lending to purchase of residential real estate w

ithin Western A

ustralia. Security is provided to the C

onsolidated Entity through a m

ortgage over the property.

The maxim

um exposure to credit risk at reporting date is the higher of the carrying value and fair value of each

class of receivables.

Keystart

Credit risk arises from

transactions that give rise to actual, contingent or potential claims against any borrow

er or counterparty.

Credit risk is m

anaged on a group basis through having prudential lending policies to mitigate borrow

er risk. This includes having m

aximum

Debt S

ervicing Ratios and strict incom

e verifi cation procedures. In addition to these credit policies, K

eystart maintains adequate provisions for bad and doubtful debts and capital adequacy ratios to m

anage the effects of any losses. C

ounterparty credit risk arises from cash and cash equivalents, loans and receivables,

derivative fi nancial instruments and deposits w

ith banks and fi nancial institutions including outstanding receivables and com

mitted transactions. For banks and fi nancial institutions, only independently rated parties w

ith a minim

um

rating of ‘A’ are accepted. Individual risk limits are set based on internal or external ratings in accordance w

ith limits

set by the Board. C

ounterparties must have S

tandard and Poor’s long term

rating of at least “A+” for any derivative

transaction executed and “A” (or better) for authorised investm

ents.

Housing A

uthority

In relation to other receivables (including rental and bond debtors), the Housing A

uthority has a minim

al credit risk due to the receivables debt being spread across a num

ber of debtors exceeding 45,000. The collectability of rental receivables is review

ed on an ongoing basis in accordance with the H

ousing Authority’s policy and procedure

manuals. These policy and procedure m

anuals are reviewed by M

anagement on a regular basis.

Liquidity Risk

The Consolidated Entity is exposed to liquidity risk in respect of its payable, accrued em

ployee expenses and governm

ent borrowings, in that the C

onsolidated Entity needs to be able to pay these amounts w

hen they fall due. The C

onsolidated Entity has implem

ented and maintains robust cash m

anagement practices, including day-to-day

monitoring and regular liquidity reporting to the Accountable O

ffi cer. These practices ensure cash resources are adequate to m

eet future comm

itments.

2. Summ


(ac) Cash and Cash Equivalents

K

eystartP

rudent liquidity risk managem

ent implies m

aintaining suffi cient cash and marketable securities, the availability of

funding through an adequate amount of com

mitted credit facilities and the ability to close out m

arket positions.

Due to the dynam

ic nature of the underlying businesses, the Treasury Com

mittee aim

s at maintaining fl exibility in

funding by keeping comm

itted credit lines available.

Managem

ent monitors rolling forecasts of the E

ntity’s liquidity reserve on the basis of expected cash fl ow.

For the purpose of the Statem

ent of Cash Flow

s, cash and cash equivalents assets comprise cash on hand and

short-term deposits w

ith original maturities of three m

onths or less that are readily convertible to a known am

ount of cash and w

hich are subject to insignifi cant risk of changes in value.

(ad) Capitalisation policy

The cost of non-current assets constructed by the Housing Authority includes the cost of all m

aterials used in construction, direct labour costs incurred on the project during construction and an appropriate proportion of overheads.

(ae) Income tax

The Consolidated E

ntity is an income tax exem

pt body.

(af) Contributed equity

AA

SB

Interpretation 1038 ‘Contributions by O

wners M

ade to Wholly-O

wned P

ublic Sector E

ntities’ requires transfers in the nature of equity contributions to be designated by the G

overnment (the ow

ner) as contributions by owners (at

the time of, or prior to transfer) before such transfers can be recognised as equity contributions. C

apital contributions (appropriations) have been designated as contributions by ow

ners by TI 955 ‘Contributions by O

wners m

ade to W

holly Ow

ned Public S

ector Entities’ and have been credited directly to C

ontributed Equity.

Transfer of net assets to/from other agencies are designated as contributions by ow

ners where the transfers are

non-discretionary and non-reciprocal.

3. Disclosure of changes in accounting policy and estim

ates

Initial application of an Australian A

ccounting Standard

AA

SB

2009-5 Further amendm

ents to Australian A

ccounting Standards arising from

the Annual Im

provements

Project [A

AS

B 5,8,101,107,117,118,136 &

139]

Under am

endments to A

AS

B 117, the classifi cation of land elem

ents of all existing leases has been assessed to determ

ine whether they are in the nature of operating or fi nance leases. The A

uthority have operating leases for buildings and vehicles w

here the lessors retain the majority of risks and benefi ts of ow

nership (obsolescence, m

aintenance costs, depreciation). Lessees use the asset for some of the asset’s life leaving the lessors w

ith a substantial investm

ent at the completion of the lease (residual value).

Under am

endments to A

AS

B 107, only expenditures that result in a recognised asset are eligible for classifi cation as

investing activities in the Statem

ent of Cash Flow

s. The Housing A

uthority already complies w

ith these requirements.

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ates (continued)

Future im

pact of Australian A

ccounting Standards not yet operative

The Housing A

uthority cannot early adopt an Australian A





ther Pronouncem

ents’. Consequently, the H

ousing Authority has

not applied early any following A


tandards that have been issued that may im

pact the Housing

Authority. W

here applicable, the Housing A

uthority plans to apply these Standards from

their application date.

AA

SB

2009-14 Am

endments to A

ustralian Interpretation - Prepaym

ents of a Minim

um Funding R

equirement [A

AS

B

Interpretation 14] Actuaries perform

this task for the Authority.

AA

SB

9 Financial Instruments this S

tandard supersedes AA

SB

139 Financial Instruments: R

ecognition and M

easurement, introducing a num

ber of changes to accounting treatments. The S

tandard was reissued on 6 D

ec 2010 and the H

ousing Authority is currently determ

ining the impact of the S

tandard. DTF has not yet determ

ined the application or the potential im

pact of the Standard for agencies.

AA

SB

2010-7 Am

endments to A


tandards arising from A

AS

B 9 (D

ecember 2010) [A

AS

B 1,3,

4,5,7,101,102,108,112,118,120,121,127,128,131,132,136,137,139,1023 & 1038 and Interpretations 2,5,10,12,19 &

127]. This A

mending S

tandard makes consequential adjustm

ents to other Standards as a result of issuing A

AS

B 9

Financial Instruments in D

ecember 2010. D

TF has not yet determined the application or the potential im

pact of the S

tandard for Agencies.

AA

SB

1054 Australian A

dditional Disclosures. This S

tandard in conjunction with A

AS

B 2011-1 A

mendm

ents to A


tandards arising from the Trans-Tasm

an Convergence P

roject, removes disclosure

requirements from

other Standards and incorporates them

in a single Standard to achieve convergence betw

een A

ustralian and New

Zealand Accounting S

tandards.

AA

SB

2011-1 Am

endments to A



an Convergence

Project [A

AS

B 1,5,101,107,108,121,128,132 &

134 and Interpretations 2, 112 & 113] This A

mending S

tandard, in conjunction w

ith AA

SB

1054 Australian A

dditional Disclosures, rem

oves disclosure requirements from

other S

tandards and incorporates them in a single S

tandard to achieve convergence between A

ustralian and New

Zealand A

ccounting Standards.

4. Key sources of estim

ation uncertainty

Defi ned benefi t superannuation plan

In determining the H

ousing Authority’s ultim

ate cost of its defi ned benefi t superannuation plans, actuarial assumptions

are required to be made. The principal actuarial assum

ptions used are disclosed in note 35 ‘Provisions’.

Long service leave liability

In calculating the Housing A

uthority’s long service leave provision, actuarial assumptions are required to be m

ade. The principal actuarial assum


Depreciation and am

ortisation

The depreciation and amortisation rates for the C

onsolidated Entity have been review

ed. The estimation of the useful

lives of assets has been based on historical experience with the retention and disposal of assets. R

efer to note 2 (f) for depreciation rates.

R

evaluation

The revaluation of the Housing A

uthority’s assets is undertaken by the Western A


uthority annually. Valuation estim

ates for fi nancial reporting purposes are determined under the accounting concept of fair value.

Fair value is defi ned as ‘the amount for w

hich the asset could be exchanged or a liability settled, between know

ledgeable, w

illing parties at an arms length transaction’. It is based on the assum

ption that the Housing A

uthority is a going concern w

ithout the need or intention to liquidate or wind up its operations or undertake a transaction on adverse term

s.

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ates (continued)

Future im

pact of Australian A

ccounting Standards not yet operative

The Housing A

uthority cannot early adopt an Australian A





ther Pronouncem

ents’. Consequently, the H

ousing Authority has

not applied early any following A


tandards that have been issued that may im

pact the Housing

Authority. W

here applicable, the Housing A

uthority plans to apply these Standards from

their application date.

AA

SB

2009-14 Am

endments to A

ustralian Interpretation - Prepaym

ents of a Minim

um Funding R

equirement [A

AS

B

Interpretation 14] Actuaries perform

this task for the Authority.

AA

SB

9 Financial Instruments this S

tandard supersedes AA

SB

139 Financial Instruments: R

ecognition and M

easurement, introducing a num

ber of changes to accounting treatments. The S

tandard was reissued on 6 D

ec 2010 and the H

ousing Authority is currently determ

ining the impact of the S

tandard. DTF has not yet determ

ined the application or the potential im

pact of the Standard for agencies.

AA

SB

2010-7 Am

endments to A


tandards arising from A

AS

B 9 (D

ecember 2010) [A

AS

B 1,3,

4,5,7,101,102,108,112,118,120,121,127,128,131,132,136,137,139,1023 & 1038 and Interpretations 2,5,10,12,19 &

127]. This A

mending S

tandard makes consequential adjustm

ents to other Standards as a result of issuing A

AS

B 9

Financial Instruments in D

ecember 2010. D

TF has not yet determined the application or the potential im

pact of the S

tandard for Agencies.

AA

SB

1054 Australian A

dditional Disclosures. This S

tandard in conjunction with A

AS

B 2011-1 A

mendm

ents to A



an Convergence P

roject, removes disclosure

requirements from

other Standards and incorporates them

in a single Standard to achieve convergence betw

een A

ustralian and New

Zealand Accounting S

tandards.

AA

SB

2011-1 Am

endments to A



an Convergence

Project [A

AS

B 1,5,101,107,108,121,128,132 &

134 and Interpretations 2, 112 & 113] This A

mending S

tandard, in conjunction w

ith AA

SB

1054 Australian A

dditional Disclosures, rem

oves disclosure requirements from

other S

tandards and incorporates them in a single S

tandard to achieve convergence between A

ustralian and New

Zealand A

ccounting Standards.

4. Key sources of estim

ation uncertainty

Defi ned benefi t superannuation plan

In determining the H

ousing Authority’s ultim

ate cost of its defi ned benefi t superannuation plans, actuarial assumptions

are required to be made. The principal actuarial assum


Long service leave liability

In calculating the Housing A

uthority’s long service leave provision, actuarial assumptions are required to be m

ade. The principal actuarial assum


Depreciation and am

ortisation

The depreciation and amortisation rates for the C

onsolidated Entity have been review

ed. The estimation of the useful

lives of assets has been based on historical experience with the retention and disposal of assets. R

efer to note 2 (f) for depreciation rates.

R

evaluation

The revaluation of the Housing A

uthority’s assets is undertaken by the Western A


uthority annually. Valuation estim

ates for fi nancial reporting purposes are determined under the accounting concept of fair value.

Fair value is defi ned as ‘the amount for w

hich the asset could be exchanged or a liability settled, between know

ledgeable, w

illing parties at an arms length transaction’. It is based on the assum

ption that the Housing A

uthority is a going concern w

ithout the need or intention to liquidate or wind up its operations or undertake a transaction on adverse term

s.

2011 2010

RentalPublic

Housing

RentalGovernmentEmployees

Loans Land Elimination Total CONSOLIDATED Note Rental Public

Housing

Rental Government Employees

Loans Land Elimination Total

$000 $000 $000 $000 $000 $000 INCOME $000 $000 $000 $000 $000 $000

Revenue510 248 - 193,668 - 194,426 Sales 6 2,514 10 - 258,866 - 261,390

- - - - (20,172) (20,172) Intersegment sales - - - - (16,679) (16,679)179,736 172,151 8 161 - 352,056 Rental revenue 7 170,733 150,209 13 232 - 321,187 198,692 - - - - 198,692 Commonwealth grants and contributions 8 296,536 - - - - 296,536

2,716 1,682 279,620 1,828 - 285,846 Interest revenue 9 7,012 1,047 198,266 2,192 - 208,517 3,070 - - - - 3,070 Developers contributions 3,391 - - - - 3,391 3,801 82 3,258 2,872 - 10,013 Other revenues 10 1,231 9 3,187 8,196 - 12,623

388,525 174,163 282,886 198,529 (20,172) 1,023,931 Total revenue 481,417 151,275 201,466 269,486 (16,679) 1,086,965 Gains

- - 2,055 - - 2,055 Gain on the disposal of non-current assets 11 - - - - - -- - 2,055 - - 2,055 Total gains - - - - - -

388,525 174,163 284,941 198,529 (20,172) 1,025,986 Total income 481,417 151,275 201,466 269,486 (16,679) 1,086,965

EXPENSES1,217 248 - 115,788 - 117,253 Cost of sales 6 2,835 10 - 140,862 - 143,707

163,265 111,711 2 144 - 275,122 Rental expenses 12 192,025 109,986 4 177 - 302,192 28,381 - - - - 28,381 New Living expenses 12 39,829 - - - - 39,829

164,509 - 35 - - 164,544 Community support expense 13 130,692 - 49 - - 130,741 65,446 8,599 1,992 7,959 - 83,996 Employee benefi ts expense 14 48,989 8,055 3,382 7,008 - 67,434 35,480 356 4,931 3,454 - 44,221 Supplies and services 15 22,373 265 4,795 2,937 - 30,370 92,860 12,258 7,007 232 - 112,357 Depreciation & amortisation expense 16 94,937 11,382 6,566 362 - 113,247 23,471 12,398 213,184 8,036 - 257,089 Finance costs 17 24,008 11,199 147,610 8,076 - 190,893

5,934 118 1,612 449 - 8,113 Accommodation expenses 18 5,386 90 1,312 379 - 7,167 7,920 2,576 141 12 - 10,649 Loss on the disposal of non-current assets 11 16,480 2,529 114 14 - 19,137

296,560 260 13,738 8,372 - 318,930 Other expenses 19 22,887 341 11,178 8,855 - 43,261 885,043 148,524 242,642 144,446 - 1,420,655 Total expenses 600,441 143,857 175,010 168,670 - 1,087,978

Profi t/(loss) before grants and subsidies (496,518) 25,639 42,299 54,083 (20,172) (394,669) from government (119,024) 7,418 26,456 100,816 (16,679) (1,013)

34,418 - - - - 34,418 Grants and subsidies from government 8 113,220 - 3,820 - - 117,040 Profi t/(loss) after grants and subsidies

(462,100) 25,639 42,299 54,083 (20,172) (360,251) from government (5,804) 7,418 30,276 100,816 (16,679) 116,027 90,000 - (50,000) (40,000) - - Intersegment transfers - - - - - -

(372,100) 25,639 (7,701) 14,083 (20,172) (360,251) Profi t/(loss) for the period (5,804) 7,418 30,276 100,816 (16,679) 116,027

5. (i) Schedule of Income and Expenses by Service

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RentalPublic

Housing


Loans Land Elimination Total RentalPublic

Housing



$000 $000 $000 $000 $000 $000 INCOME $000 $000 $000 $000 $000 $000

Revenue510 248 - 193,668 - 194,426 Sales 6 2,514 10 - 258,866 - 261,390



388,525 174,163 254,617 198,529 (20,172) 995,662 Total revenue 481,417 151,275 139,403 269,486 (16,679) 1,024,902 Gains


388,525 174,163 256,672 198,529 (20,172) 997,717 Total income 481,417 151,275 139,403 269,486 (16,679) 1,024,902



164,509 - 35 - - 164,544 Community support expense 13 130,692 - 49 - - 130,741 65,446 8,599 1,821 7,959 - 83,825 Employee benefi ts expense 14 48,989 8,055 3,203 7,008 - 67,255 35,480 356 721 3,454 - 40,011 Supplies and services 15 22,373 265 1,488 2,937 - 27,063 92,860 12,258 6,157 232 - 111,507 Depreciation & amortisation expense 16 94,937 11,382 5,961 362 - 112,642 23,471 12,398 213,143 8,036 - 257,048 Finance costs 17 24,008 11,199 147,577 8,076 - 190,860 5,934 118 96 449 - 6,597 Accommodation expenses 18 5,386 90 188 379 - 6,043 7,920 2,576 - 12 - 10,508 Loss on the disposal of non-current assets 11 16,480 2,529 114 14 - 19,137


Profi t/(loss) before grants and subsidies (496,518) 25,639 33,185 54,083 (20,172) (403,783) from government (119,024) 7,418 (21,182) 100,816 (16,679) (48,651)


(462,100) 25,639 33,185 54,083 (20,172) (369,365) from government (5,804) 7,418 (17,362) 100,816 (16,679) 68,389 90,000 - (50,000) (40,000) - - Intersegment transfers - - - - - -

(372,100) 25,639 (16,815) 14,083 (20,172) (369,365) Profi t/(loss) for the period (5,804) 7,418 (17,362) 100,816 (16,679) 68,389

5. (i) Schedule of Income and Expenses by Service (continued)

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RentalPublic

Housing


Loans Land Elimination Total RentalPublic

Housing



$000 $000 $000 $000 $000 $000 INCOME $000 $000 $000 $000 $000 $000

Revenue510 248 - 193,668 - 194,426 Sales 6 2,514 10 - 258,866 - 261,390



388,525 174,163 254,617 198,529 (20,172) 995,662 Total revenue 481,417 151,275 139,403 269,486 (16,679) 1,024,902 Gains


388,525 174,163 256,672 198,529 (20,172) 997,717 Total income 481,417 151,275 139,403 269,486 (16,679) 1,024,902



164,509 - 35 - - 164,544 Community support expense 13 130,692 - 49 - - 130,741 65,446 8,599 1,821 7,959 - 83,825 Employee benefi ts expense 14 48,989 8,055 3,203 7,008 - 67,255 35,480 356 721 3,454 - 40,011 Supplies and services 15 22,373 265 1,488 2,937 - 27,063 92,860 12,258 6,157 232 - 111,507 Depreciation & amortisation expense 16 94,937 11,382 5,961 362 - 112,642 23,471 12,398 213,143 8,036 - 257,048 Finance costs 17 24,008 11,199 147,577 8,076 - 190,860 5,934 118 96 449 - 6,597 Accommodation expenses 18 5,386 90 188 379 - 6,043 7,920 2,576 - 12 - 10,508 Loss on the disposal of non-current assets 11 16,480 2,529 114 14 - 19,137


Profi t/(loss) before grants and subsidies (496,518) 25,639 33,185 54,083 (20,172) (403,783) from government (119,024) 7,418 (21,182) 100,816 (16,679) (48,651)


(462,100) 25,639 33,185 54,083 (20,172) (369,365) from government (5,804) 7,418 (17,362) 100,816 (16,679) 68,389 90,000 - (50,000) (40,000) - - Intersegment transfers - - - - - -

(372,100) 25,639 (16,815) 14,083 (20,172) (369,365) Profi t/(loss) for the period (5,804) 7,418 (17,362) 100,816 (16,679) 68,389

5. (i) Schedule of Income and Expenses by Service (continued)

Consolidated

Parent

2011$000

2010$000

2011$000

2010$000

6. Trading Profi tS

ales Joint venture land

109,870133,256

109,870133,256

Land64,384

109,70564,384

109,705 H

ouse and land packages-

1,750-

1,750174,254

244,711174,254

244,711Less cost of land sold Joint venture land

60,90965,667

60,90965,677

Land55,127

75,22455,127

75,224 H

ouse and land packages1,217

2,806 1,217

2,806 117,253

143,707 117,253

143,707 Trading Profi t

57,001101,004

57,001 101,004

7. Rental revenue

Rental properties

346,277 315,205

346,277 315,205

Rental am

enities4,107

4,112 4,107

4,112 C

omm

ercial properties1,660

1,858 1,660

1,858 C

omm

unity housing properties12

12 12

12 Total rental revenue

352,056 321,187

352,056 321,187

8. Com

monw

ealth and State grantsC

omm


Aboriginal housing

85,523 167,779

85,523 167,779

Com

monw

ealth rental grants101,717

117,492 101,717

117,492 C

risis accomm

odation & com

munity housing

11,452 11,265

11,452 11,265

Total Com

monw

ealth grants198,692

296,536 198,692

296,536

State grants and subsidiesD

epartment of Treasury and Finance

16,976 101,462

16,976 101,462

Departm

ent of Child P

rotection153

337 153

337 O

ffi ce of Energy

4,002 373

4,002 373

Royalties for R

egions480

-480

-D

isability Services C

omm

ission12,807

14,868 12,807

14,868 Total State grants

34,418 117,040

34,418 117,040

9. Interest revenueLoan interestK

eystart secured mortgage advances

259,817 188,321

--

259,817 188,321

--

The Housing A

uthority loan schemes

2 1

2 1

Less mortgage subsidies

--

--

2 1

2 1

Total Loan Interest259,819

188,322 2

1

Other interest

Interest on cash at bank13,808

14,002 13,808

14,002 Interest on investm

ents10,594

4,631 191,380

132,459 Interest other

1,625 1,562

1,625 1,562

Total other interest26,027

20,195 206,813

148,023 Total interest revenue

285,846 208,517

206,815 148,024

10. Other revenue

Bad debts recovered

459 421

459 421

Conveyancing fees

987 2,479

987 2,479

Dividends

--

53,470 -

Other revenue

8,567 9,723

5,859 8,153

Total other revenues 10,013

12,623 60,775

11,053

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Consolidated

Parent

2011$000

2010$000

2011$000

2010$000

11. Net gain/(loss) on disposal of

non-current assetsC

osts on disposal of non-current assetsR

ental properties 64,084

93,194 64,084

93,194 C

omm


1,820 179

1,820 S

hared equity properties22,684

24,750 22,684

24,750 P

roperties plant & equipm

ent511

325 370

325 87,458

120,089 87,317

120,089 Proceeds from

the disposal of non-current assets

Rental properties

53,688 74,536

53,688 74,536

Com


225 1,641

225 1,641

Shared equity properties

24,742 24,638

24,742 24,638

Properties plant &

equipment

209 137

209 137

78,864 100,952

78,864 100,952

Net loss

(8,594)(19,137)

(8,453)(19,137)

12. Rental expenses

Maintenance expenses

85,173 117,963

85,173 117,963

Debt collection expenses

1,344 1,221

1,344 1,221

Estate m

anagement expenses

6,275 6,878

6,275 6,878

General expenses

9,879 8,386

9,879 8,386

Insurance expenses8,793

9,460 8,793

9,460 R

ates expenses65,592

61,780 65,592

61,780 R

enovations & im

provements

18,103 23,719

18,103 23,719

Non cancellable operating leases:

- Rental properties

79,963 72,785

79,963 72,785

Total rental expenses275,122

302,192 275,122

302,192

New

living expenses(see note 2(y))R

enovations & im

provements

26,730 37,472

26,730 37,472

Infrastructure expenses1,117

1,266 1,117

1,266 D

emolition costs

534 1,091

534 1,091

Total new living expenses

28,381 39,829

28,381 39,829

13. Com


Aboriginal H

ousing (i)161,249

124,463 161,249

124,463 C

omm

unity Housing (ii)

3,260 6,229

3,260 6,229

Mortgage and rental assistance program

- cash assistance

35 49

35 49

Total comm

unity support expense164,544

130,741 164,544

130,741

(i) Aboriginal housing com

munity support consists of expenses incurred in the provision of rem

ote indigenous com

munity housing and support program

mes.

(ii) Com

munity housing support consists of expenses incurred in the provision of housing undertaken by

comm

unity groups.

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Consolidated

Parent

2011$000

2010$000

2011$000

2010$000

11. Net gain/(loss) on disposal of

non-current assetsC

osts on disposal of non-current assetsR

ental properties 64,084

93,194 64,084

93,194 C

omm


1,820 179

1,820 S


24,750 22,684

24,750 P

roperties plant & equipm

ent511

325 370

325 87,458

120,089 87,317

120,089 Proceeds from

the disposal of non-current assets

Rental properties

53,688 74,536

53,688 74,536

Com


225 1,641

225 1,641

Shared equity properties

24,742 24,638

24,742 24,638

Properties plant &

equipment

209 137

209 137

78,864 100,952

78,864 100,952

Net loss

(8,594)(19,137)

(8,453)(19,137)

12. Rental expenses

Maintenance expenses

85,173 117,963

85,173 117,963

Debt collection expenses

1,344 1,221

1,344 1,221

Estate m

anagement expenses

6,275 6,878

6,275 6,878

General expenses

9,879 8,386

9,879 8,386

Insurance expenses8,793

9,460 8,793

9,460 R

ates expenses65,592

61,780 65,592

61,780 R

enovations & im

provements

18,103 23,719

18,103 23,719

Non cancellable operating leases:

- Rental properties

79,963 72,785

79,963 72,785

Total rental expenses275,122

302,192 275,122

302,192

New

living expenses(see note 2(y))R

enovations & im

provements

26,730 37,472

26,730 37,472

Infrastructure expenses1,117

1,266 1,117

1,266 D

emolition costs

534 1,091

534 1,091

Total new living expenses

28,381 39,829

28,381 39,829

13. Com


Aboriginal H

ousing (i)161,249

124,463 161,249

124,463 C

omm

unity Housing (ii)

3,260 6,229

3,260 6,229

Mortgage and rental assistance program

- cash assistance

35 49

35 49

Total comm

unity support expense164,544

130,741 164,544

130,741

(i) Aboriginal housing com

munity support consists of expenses incurred in the provision of rem

ote indigenous com

munity housing and support program

mes.

(ii) Com

munity housing support consists of expenses incurred in the provision of housing undertaken by

comm

unity groups.

Consolidated

Parent

20112010

20112010

$000$000

$000$000

14. Employee benefi ts expense

Salaries &

wages

88,808 79,610

88,656 79,447

Superannuation - defi ned contribution plans

8,253 7,266

8,253 7,266

Superannuation - defi ned benefi t plans

2,835 1,853

2,835 1,853

99,896 88,729

99,744 88,566

Less Credits:

Adm

inistration capitalised8,621

11,421 8,621

11,421 R

ecoups7,279

9,874 7,298

9,890 Total credits

15,900 21,295

15,919 21,311

Total employee benefi ts expenses

83,996 67,434

83,825 67,255

15. Supplies and servicesO

ther personnel costs11,102

7,887 11,102

7,887 Travel

2,885 2,076

2,885 2,076

Stationery &

supplies1,047

1,155 850

913 C

omm

unication3,875

3,739 3,777

3,593 O

ther costs & expenses

22,346 12,561

18,769 9,850

External and Internal A

udit fees725

663 387

455 M

otor vehicles932

1,051 932

1,051 42,912

29,132 38,702

25,825 Lease expensesN

on cancellable operating leases:- M

otor vehicles1,309

1,238 1,309

1,238 1,309

1,238 1,309

1,238 Total supplies and services

44,221 30,370

40,011 27,063

16. Depreciation and am

ortisation expenseD

epreciationR

ental properties92,864

95,293 92,864

95,293 C

omm

unity housing properties6,994

7,370 6,994

7,370 S


5,905 6,123

5,905 O

ther properties1,557

806 1,557

806 P

lant & equipm

ent3,206

2,951 2,582

2,518 A

mortisationIntangible assets

1,387 750

1,387 750

Other assets

226 172

--

Total depreciation and amortisation expense

112,357 113,247

111,507 112,642

17. Finance costsInterest on interest-bearing liabilities

257,048 190,860

257,048 190,860

Finance charges35

30 -

-C

hange in time value of cash fl ow

hedge6

3 -

-Total fi nance costs

257,089 190,893

257,048 190,860

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Consolidated

Parent

20112010

20112010

$000$000

$000$000

18. Accom

modation expenses

Offi ce rental &

accomm

odation5,171

5,206 5,010


on cancellable operating leases:- O

ffi ce properties2,942

1,961 1,587

1,088 Total accom

modation expenses

8,113 7,167

6,597 6,043

19. Other expenses

Doubtful debts expense

9,325 6,889

5,690 5,602

Fees - Keystart

8,443 8,215

--

Grants &

subsidies3,074

2,279 3,074

2,279 Land expenses

7,028 7,579

7,028 7,579

Loan scheme expenses

829 742

829 742

Write dow

n of assets classifi ed as held for sale1,033

932 1,033

932 E

mployee on costs

5,420 4,737

5,420 4,737

Other expenses

12,821 11,888

12,673 12,213

Assets Transferred to C

omm

unity Housing (a)

270,957 -

270,957 -

Total other expenses 318,930

43,261 306,704

34,084

(a) As at 30 June 2011, the H

ousing Authority transferred 1041 property assets valued at $270,957,411 to

Com

munity H

ousing Organisations in accordance w

ith Com

monw

ealth Stim

ulus funding requirements.

20. Cash and cash equivalents

Cash at bank - operational

27,827 352,047

21,073 317,755

Cash at bank - superannuation

20,700 20,700

20,700 20,700

Cash advances

9 11

9 11

48,536 372,758

41,782 338,466

Restricted cash

Rental tenants bonds

14,002 13,171

14,002 13,171

Joint venture cash16,712

14,409 16,712

14,409 R

emote indigenous housing

4,543 568

4,543 568

Indigenous strategic intervention program3,250

-3,250

-R

oyalties for regions6,510

7,532 6,510

7,532 45,017

35,680 45,017

35,680 Total cash and cash equivalents

93,553 408,438

86,799 374,146

Rental Tenants Bonds represents bond m

onies received by the Housing Authority from

rental clients. These funds are held in trust in accordance w

ith the Residential Tenancies Act. Joint Venture C

ash is restricted for the use of joint venture operations and is controlled by the respective m

anagement groups. U

nspent funds for Royalties for R

egions are com

mitted to projects and program

s in WA regional areas. The H

ousing Authority is a property manager for rem

ote indigenous com

munities and does not have ow

nership of these properties. The cash held represents unspent funds for these properties. U

nspent funds for the indigenous strategic intervention program are com

mitted to these program

s.

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Consolidated

Parent

20112010

20112010

$000$000

$000$000

18. Accom

modation expenses

Offi ce rental &

accomm

odation5,171

5,206 5,010


on cancellable operating leases:- O

ffi ce properties2,942

1,961 1,587

1,088 Total accom

modation expenses

8,113 7,167

6,597 6,043

19. Other expenses


9,325 6,889

5,690 5,602

Fees - Keystart

8,443 8,215

--

Grants &

subsidies3,074

2,279 3,074

2,279 Land expenses

7,028 7,579

7,028 7,579

Loan scheme expenses

829 742

829 742

Write dow

n of assets classifi ed as held for sale1,033

932 1,033

932 E

mployee on costs

5,420 4,737

5,420 4,737

Other expenses

12,821 11,888

12,673 12,213

Assets Transferred to C

omm

unity Housing (a)

270,957 -

270,957 -

Total other expenses 318,930

43,261 306,704

34,084

(a) As at 30 June 2011, the H

ousing Authority transferred 1041 property assets valued at $270,957,411 to

Com

munity H

ousing Organisations in accordance w

ith Com

monw

ealth Stim

ulus funding requirements.

20. Cash and cash equivalents

Cash at bank - operational

27,827 352,047

21,073 317,755

Cash at bank - superannuation

20,700 20,700

20,700 20,700

Cash advances

9 11

9 11

48,536 372,758

41,782 338,466

Restricted cash

Rental tenants bonds

14,002 13,171

14,002 13,171

Joint venture cash16,712

14,409 16,712

14,409 R

emote indigenous housing

4,543 568

4,543 568

Indigenous strategic intervention program3,250

-3,250

-R

oyalties for regions6,510

7,532 6,510

7,532 45,017

35,680 45,017

35,680 Total cash and cash equivalents

93,553 408,438

86,799 374,146

Rental Tenants Bonds represents bond m

onies received by the Housing Authority from

rental clients. These funds are held in trust in accordance w

ith the Residential Tenancies Act. Joint Venture C

ash is restricted for the use of joint venture operations and is controlled by the respective m

anagement groups. U

nspent funds for Royalties for R

egions are com

mitted to projects and program

s in WA regional areas. The H

ousing Authority is a property manager for rem

ote indigenous com

munities and does not have ow

nership of these properties. The cash held represents unspent funds for these properties. U

nspent funds for the indigenous strategic intervention program are com

mitted to these program

s.

Consolidated

Parent

20112010

20112010

$000$000

$000$000

21. InventoriesC

urrentLand held for sale at cost (note 2(h)) currentC

ost of acquisition and development

55,517 46,169

55,517 46,169

Capitalised rates, taxes, adm

inistration and interest1,645

1,858 1,645

1,858 57,162

48,027 57,162

48,027 Joint venture land at cost (note 2 (h))

59,819 54,914

59,819 54,914

House and land packages at cost

16,940 -

16,940 -

Total current inventories133,921

102,941 133,921

102,941

Non-current

Land held for sale at cost (note 2(h)) non - currentC

ost of acquisition and development

433,081 492,081

433,081 492,081

Capitalised rates, taxes, adm

inistration and interest7,307

7,682 7,307

7,682 440,388

499,763 440,388

499,763 Joint venture land at cost (a)

100,888 92,616

100,888 92,616

Total non-current inventories541,276

592,379 541,276

592,379

(a) The Housing Authority enters into joint venture operations for the development of Land holdings.

Listed below are the current joint venture operations

Butler

The Housing A

uthority holds a 46.78% interest in a joint venture operation nam

ed Ocean S

prings for the development of

land at Brighton estate. The H

ousing Authority contributes developm

ent costs and receives revenues on the basis of the interest held in the joint venture operation.

Brighton B

eachside Estate

The Housing A

uthority holds a 50% interest in a joint venture operation nam

ed Brighton B

eachside Estate for the

development of land at Q

uinns. The Housing A

uthority contributes development costs and receives revenues on the basis

of the interest held in the joint venture operation.

Dalyellup B

each

The Housing A


ed Dalyellup B

each for the development of

land at Dalyellup B

each, Bunbury. The H



Ellenbrook

The Housing A

uthority holds a 47.138% interest in a joint venture operation nam

ed Ellenbrook for the developm

ent of land at E

llenbrook. The Housing A

uthority contributes development costs and receives revenues on the basis of the

interest held in the joint venture operation.

Seacrest

The Housing A


ed Seacrest for the developm

ent of land at W

andina, Geraldton. The H



Oyster H

arbour

The Housing A

uthority holds a 50% interest in the O

yster Harbour joint venture for the developm

ent of land at the Oyster

Harbour E

state, Bayonet H

ead, Albany. The H



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Beeliar

The Housing A

uthority holds an interest in a joint venture operation named M

eve for the development of H

ousing A

uthority land in Beeliar. The H

ousing Authority does not contribute to the developm

ent of the land. The revenue received is 33%

of the sale price of each lot and 50% share in the net proceeds after developm

ent costs, managem

ent fees and the A

uthority’s 33% has been deducted.

Clarkson

The Housing A

uthority holds an interest in a joint venture operation named S

omerley for the developm

ent of Housing

Authority land in C

larkson. The Authority does not contribute to the developm

ent of the land. The revenue received is 17.5%


ent costs, managem

ent fees and the A

uthority’s 17.5% has been deducted.

Woodrise E

state

The Housing A

uthority holds an interest in a joint venture operation named W

oodrise Estate for the developm

ent of H

ousing Authority land in A

lbany. The Housing A

uthority does not contribute to the development of the land. The revenue

received is 30% of gross sales.

Wellard

The Housing A


ellard for the development of H

ousing A

uthority land in Wellard. The H




ent costs, managem

ent fees and the H

ousing Authority’s 10%

has been deducted.

Banksia G

rove

The Housing A

uthority holds an interest in the Banksia G

rove joint venture for the development of its landholdings at

Banksia G

rove. The Housing A

uthority does not contribute to the development of the land. The revenue received is 35%

of the sale price of each lot and 40%

share in the net proceeds after development costs, m

anagement fees and the

Authority’s 35%

has been deducted.

Brookdale

The Housing A


ed Brookdale for the developm

ent of land at B

rookdale. The Housing A

uthority contributes development costs and receives revenues on the basis of interest held in

the joint venture operation.

Harrisdale

Harrisdale G

reen is a farm in joint venture arrangem

ent with the H

ousing Authority providing land and the other

participant meeting the developm

ent costs. The Authority receives a 30%

land payment on the sale of lots and a 10%

land paym

ent on the sale of built form. P

rofi ts are shared with the H

ousing Authority at 67%

and Cedar W

oods at 33%

Ham

mond P

ark

The Housing A

uthority holds a 45.91% interest in a joint venture operation w

ith Gold E

states for the development of land

at Ham

mond P

ark. The Authority contributes to the developm

ent costs and receives revenues on the basis of the interest held in the joint venture w

ith Gold E

states.

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Beeliar

The Housing A

uthority holds an interest in a joint venture operation named M

eve for the development of H

ousing A

uthority land in Beeliar. The H




ent costs, managem

ent fees and the A

uthority’s 33% has been deducted.

Clarkson

The Housing A

uthority holds an interest in a joint venture operation named S

omerley for the developm

ent of Housing

Authority land in C

larkson. The Authority does not contribute to the developm

ent of the land. The revenue received is 17.5%


ent costs, managem

ent fees and the A

uthority’s 17.5% has been deducted.

Woodrise E

state

The Housing A


oodrise Estate for the developm

ent of H

ousing Authority land in A

lbany. The Housing A

uthority does not contribute to the development of the land. The revenue

received is 30% of gross sales.

Wellard

The Housing A


ellard for the development of H

ousing A

uthority land in Wellard. The H




ent costs, managem

ent fees and the H

ousing Authority’s 10%

has been deducted.

Banksia G

rove

The Housing A

uthority holds an interest in the Banksia G

rove joint venture for the development of its landholdings at

Banksia G

rove. The Housing A

uthority does not contribute to the development of the land. The revenue received is 35%

of the sale price of each lot and 40%

share in the net proceeds after development costs, m

anagement fees and the

Authority’s 35%

has been deducted.

Brookdale

The Housing A


ed Brookdale for the developm

ent of land at B

rookdale. The Housing A

uthority contributes development costs and receives revenues on the basis of interest held in

the joint venture operation.

Harrisdale

Harrisdale G

reen is a farm in joint venture arrangem

ent with the H

ousing Authority providing land and the other

participant meeting the developm

ent costs. The Authority receives a 30%

land payment on the sale of lots and a 10%

land paym

ent on the sale of built form. P

rofi ts are shared with the H

ousing Authority at 67%

and Cedar W

oods at 33%

Ham

mond P

ark

The Housing A

uthority holds a 45.91% interest in a joint venture operation w

ith Gold E

states for the development of land

at Ham

mond P

ark. The Authority contributes to the developm

ent costs and receives revenues on the basis of the interest held in the joint venture w

ith Gold E

states.

21. Inventories (continued)Joint venture operations

2011Butler Brighton

Beachside Estate

Dalyellup Beach

Ellenbrook Seacrest Oyster Harbour

Brookdale Albany Harrisdale Beeliar Clarkson Wellard Banksia Grove

Total

$000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000CURRENT ASSETSCash and cash equivalents 20 8,900 - 3,250 3,881 491 190 - - - - - - - 16,712 Receivables 22 5,658 - 681 2,002 194 1,440 - - - - - - - 9,975 Inventories 21 14,282 25 5,996 35,127 - 4,389 - - - - - - - 59,819 Other current assets 23 - - - 3,245 - - - - - - - - 3,245

28,840 25 9,927 44,255 685 6,019 - - - - - - - 89,751 NON-CURRENT ASSETSReceivables - - - - 130 - - - - - - - - 130 Offi ce Equipment 31 - - - 75 - - - - - - - - 75 Buildings 30 281 - 443 570 - - - - - - - - 1,294 Development costs (1) 21 23,722 - 15,515 8,018 4,748 3,187 7,591 - - - - - - 62,781

24,003 - 15,958 8,663 4,878 3,187 7,591 - - - - - - 64,280 Total assets 52,843 25 25,885 52,918 5,563 9,206 7,591 - - - - - - 154,031

CURRENT LIABILITIESPayables 35 5,239 121 321 1,264 192 1,455 - - - - - - - 8,592 Other Liabilities - - - - - - - - - - - - - -Provisions 37 4,325 - 589 3,699 241 - - - - - - - - 8,854

9,564 121 910 4,963 433 1,455 - - - - - - - 17,446 NON-CURRENT LIABILITIESPayables and Interest-bearing liabilities 35 - - - 24 - - - - - - - - - 24 Provisions - - - 159 - - - - - - - - - 159

- - - 183 - - - - - - - - - 183 Total liabilities 9,564 121 910 5,146 433 1,455 - - - - - - - 17,629 NET ASSETS 43,279 (96) 24,975 47,772 5,130 7,751 7,591 - - - - - - 136,402

Land (1) 21 3,462 - - 4,079 413 6,636 4,176 109 1,329 104 - 7,099 10,700 38,107

1. The total of development costs ($62.781 million) and Authority land ($38.107 million) represents the total ($100.888 million) joint venture land.

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2010Butler Brighton

Beachside Estate

Dalyellup Beach


Brookdale Albany Forestdale Beeliar Clarkson Wellard Banksia Grove

Total

$000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000CURRENT ASSETSCash and cash equivalents 20 5,214 24 3,780 4,216 940 235 - - - - - - - 14,409 Receivables 22 9,481 - 3,879 4,778 334 400 - - - - - - - 18,872 Inventories 21 10,600 - 5,575 31,111 - 7,628 - - - - - - - 54,914 Other current assets 23 - - - 3,184 - - - - - - - - - 3,184

25,295 24 13,234 43,289 1,274 8,263 - - - - - - - 91,379 NON-CURRENT ASSETSReceivables - - - - - - - - - - - - - -Offi ce Equipment 31 - - - 92 - - - - - - - - - 92 Buildings 30 248 - 426 654 - - - - - - - - - 1,328 Development costs (1) 21 24,742 - 12,988 8,233 2,565 - 3,128 - - - - - - 51,656

24,990 - 13,414 8,979 2,565 - 3,128 - - - - - - 53,076 Total assets 50,285 24 26,648 52,268 3,839 8,263 3,128 - - - - - - 144,455

CURRENT LIABILITIESPayables 35 2,724 5 1,035 1,806 66 292 86 - - - - - - 6,014 Other Liabilities - - - - - 800 - - - - - - - 800 Provisions 37 4,163 - 1,212 4,464 263 - - - - - - - - 10,102

6,887 5 2,247 6,270 329 1,092 86 - - - - - - 16,916 NON-CURRENT LIABILITIESPayables and Interest-bearing liabilities 35 - - - 24 - - - - - - - - - 24 Provisions - - - - - - - - - - - - - -

- - - 24 - - - - - - - - - 24 Total liabilities 6,887 5 2,247 6,294 329 1,092 86 - - - - - - 16,940 NET ASSETS 43,398 19 24,401 45,974 3,510 7,171 3,042 - - - - - - 127,515

Land (1) 21 4,108 - - 4,533 452 6,667 4,309 629 288 433 - 7,564 11,977 40,960

(-1. The total of development costs ($51.656 million) and Authority land ($40.960 million) represents the total ($92.616 million) joint venture land.

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2010Butler Brighton

Beachside Estate

Dalyellup Beach


Brookdale Albany Forestdale Beeliar Clarkson Wellard Banksia Grove

Total

$000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000CURRENT ASSETSCash and cash equivalents 20 5,214 24 3,780 4,216 940 235 - - - - - - - 14,409 Receivables 22 9,481 - 3,879 4,778 334 400 - - - - - - - 18,872 Inventories 21 10,600 - 5,575 31,111 - 7,628 - - - - - - - 54,914 Other current assets 23 - - - 3,184 - - - - - - - - - 3,184

25,295 24 13,234 43,289 1,274 8,263 - - - - - - - 91,379 NON-CURRENT ASSETSReceivables - - - - - - - - - - - - - -Offi ce Equipment 31 - - - 92 - - - - - - - - - 92 Buildings 30 248 - 426 654 - - - - - - - - - 1,328 Development costs (1) 21 24,742 - 12,988 8,233 2,565 - 3,128 - - - - - - 51,656

24,990 - 13,414 8,979 2,565 - 3,128 - - - - - - 53,076 Total assets 50,285 24 26,648 52,268 3,839 8,263 3,128 - - - - - - 144,455

CURRENT LIABILITIESPayables 35 2,724 5 1,035 1,806 66 292 86 - - - - - - 6,014 Other Liabilities - - - - - 800 - - - - - - - 800 Provisions 37 4,163 - 1,212 4,464 263 - - - - - - - - 10,102

6,887 5 2,247 6,270 329 1,092 86 - - - - - - 16,916 NON-CURRENT LIABILITIESPayables and Interest-bearing liabilities 35 - - - 24 - - - - - - - - - 24 Provisions - - - - - - - - - - - - - -

- - - 24 - - - - - - - - - 24 Total liabilities 6,887 5 2,247 6,294 329 1,092 86 - - - - - - 16,940 NET ASSETS 43,398 19 24,401 45,974 3,510 7,171 3,042 - - - - - - 127,515

Land (1) 21 4,108 - - 4,533 452 6,667 4,309 629 288 433 - 7,564 11,977 40,960

(-1. The total of development costs ($51.656 million) and Authority land ($40.960 million) represents the total ($92.616 million) joint venture land.

Consolidated

Parent

20112010

20112010

$000$000

$000$000

22. Loans and receivablesC

urrentG

eneral58,976

30,646 86,737

29,446 Loans to hom

ebuyers766,900

805,956 -

-Joint venture receivables

9,975 18,872

9,975 18,872

Rental and Lease bonds

21,222 20,711

21,222 20,711

Rents from

tenants and other rents25,207

21,535 25,207

21,535 882,280

897,720 143,141

90,564 Less provision for im

pairment

4,995 4,455

4,995 4,455

Total receivables current877,285

893,265 138,146

86,109

A provision for impairm

ent loss is recognised when there is objective evidence that an individual receivable is im

paired.

Movem

ent in Provisions for Im

pairment

Carrying am

ount at start of year4,455

3,385 4,455

3,385 C

harge for the year5,690

5,602 5,690

5,602 A

mounts w

ritten off(5,150)

(4,532)(5,150)

(4,532)C

arrying amount at end of year

4,995 4,455

4,995 4,455

An im

pairment loss of $5,690,000 (2010 $5,602,000) has been recognised by the H

ousing Authority.

Current receivables individually determ

ined as impaired at the end of the reporting period:

Carrying am

ount before deducting any impairm

ent loss465

392 465

392 Im

pairment loss

(465)(392)

(465)(392)

--

--

Non-current

Non-current loans and advances

Keystart preferential shares (a)

--

3,900,000 3,980,000

Loans to homebuyers (b)

3,166,632 3,321,574

15 33

Loans otherC

omm

ercial organisations (c)139

145 139

145 Local &

statutory Authorities

19 19

19 19

Less provision for impairm

ent4,709

2,599 -

-3,162,081

3,319,139 3,900,173

3,980,197

Joint venture receivables130

-130

-G

eneral receivables13,613

17,514 13,613

17,514 Total receivables non-current

3,175,824 3,336,653

3,913,916 3,997,711

Provision for im

pairment loss

As at 30 June 2011, loans to hom

ebuyers with a nom

inal value of $1,581,000 (2010: $892,000) were im

paired, and w

ritten off against provision for impairm

ent following disposal of m

ortgaged property. The amount of the

provision was $4,709,000 (2010: $2,599,000). The individually im

paired 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 debts expenses

in the Statem

ent of Com

prehensive Income. A

mounts charged to the allow

ance account are generally written off

when there is no expectation of recovering additional cash.

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onsolidated P

arent 2011

20102011

2010$000

$000$000

$00022. Loans and receivables (continued)

Movem


pairment

Carrying am


2,149 -

-C


1,286 -

-A

mounts w

ritten off(1,526)

(836)-

-C


4,709 2,599

--

Ageing analysis of receivables past due but not im

paired at the end of the reporting period

Not m

ore than 3 months

36,746 22,024

13,141 10,253

More than 3 m

onths but less than 6 months

4,668 4,136

4,668 4,136

More than 6 m

onths but less than 1 year5,658

5,333 5,658

5,333 M

ore than 1 year9,905

8,677 9,905

8,677 56,977

40,170 33,372

28,399

All loans and advances are review

ed and graded according to the anticipated level of credit risk. The classifi cation adopted is described below

:

Outstanding balance on loans for w

hich collateral will

be repossessedB

alance23,813

12,570 -

-P

rovision for impairm

ent (3,688)

(2,107)-

-20,125

10,463 -

-

Interest foregone on non-accrual and restructured loans

1,250 616

--

Restructured Loans

Balance w

ithout provisions986

1,712 -

-

A Safety N

et Schem

e is offered to clients who require assistance because of changes in their fi nancial situation.

In most cases, P

hase 1 assistance is suffi cient and is granted for short terms of up to six (6) m

onths. Those who

require longer periods are assigned to Phase 2. These 2 stages provide assistance in the form

of an interest rate reduction to low

er repayments. The table show

s the position as at the end of the fi nancial period.

Num

ber2011

Num

ber2010

Phase 1

5112,321

35 6,761

Phase 2

--

--

5112,321

35 6,761

Past due loans

Balance w

ithout provision-

3,058 -

2,294

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onsolidated P

arent 2011

20102011

2010$000

$000$000

$00022. Loans and receivables (continued)

Movem


pairment

Carrying am


2,149 -

-C


1,286 -

-A

mounts w

ritten off(1,526)

(836)-

-C


4,709 2,599

--

Ageing analysis of receivables past due but not im

paired at the end of the reporting period

Not m

ore than 3 months

36,746 22,024

13,141 10,253

More than 3 m

onths but less than 6 months

4,668 4,136

4,668 4,136

More than 6 m

onths but less than 1 year5,658

5,333 5,658

5,333 M

ore than 1 year9,905

8,677 9,905

8,677 56,977

40,170 33,372

28,399

All loans and advances are review

ed and graded according to the anticipated level of credit risk. The classifi cation adopted is described below

:

Outstanding balance on loans for w

hich collateral will

be repossessedB

alance23,813

12,570 -

-P

rovision for impairm

ent (3,688)

(2,107)-

-20,125

10,463 -

-

Interest foregone on non-accrual and restructured loans

1,250 616

--

Restructured Loans

Balance w

ithout provisions986

1,712 -

-

A Safety N

et Schem

e is offered to clients who require assistance because of changes in their fi nancial situation.

In most cases, P

hase 1 assistance is suffi cient and is granted for short terms of up to six (6) m

onths. Those who

require longer periods are assigned to Phase 2. These 2 stages provide assistance in the form

of an interest rate reduction to low

er repayments. The table show

s the position as at the end of the fi nancial period.

Num

ber2011

Num

ber2010

Phase 1

5112,321

35 6,761

Phase 2

--

--

5112,321

35 6,761

Past due loans

Balance w

ithout provision-

3,058 -

2,294

22. Loans and receivables (continued)

“Non-accrual loans” are loans and advances w

here the recovery of all interest and principal is considered to be reasonably doubtful, and hence allow

ances for impairm

ent are recognised.

“Assets acquired through the enforcem

ent of security” are assets acquired in full or partial settlement of a loan or

similar facility through the enforcem

ent of security arrangements.

“Restructured loans” arise w

hen the borrower is granted a concession due to continuing diffi culties in m

eeting the original term

s, and the revised terms are not com

parable to new facilities. Loans w

ith revised terms are included

in non-accrual loans when im

pairment provisions are required.

“Past-due loans” are loans w

here payments of principal and/or interest are at least 90 days in arrears. Full

recovery of both principal and interest is expected. If an impairm

ent provision is required, the loan is included in non- accrual loans.

(a) Keystart P

referential Shares

The Western A

ustralian Treasury Corporation has provided the H

ousing Authority w

ith a $4,503.2 million loan

facility to fund Keystart Loans Ltd. The H

ousing Authority has purchased redeem

able preference shares in K

eystart Loans Ltd to the same value as the draw

n down loan facility as security over the funds. The term

s and conditions of the shares refl ect the term

s and conditions of the loan facility. Keystart Loans Ltd. m

eets all principal, interest and other costs associated w

ith the facility. To date $3,900 million (June 2010 $3,980 m

illion) of this facility has been draw

n down.

(b) Loans to Hom

ebuyers

(a) Interest Rate R

isk

Refer to note 2 (ab) for an analysis of the C

onsolidated Entity’s exposure to interest rate risk in relation to loan and other receivables. Sum

marised analysis of the sensitivity of loan and other receivables to interest rate is illustrated in

note 2 (ab).

(b) Fair Value and credit risk

Current loan and other receivable

Due to the short term

nature of these receivables, their carrying value is assumed to approxim

ate their fair value

The maxim

um exposure to credit risk at the reporting date is the fair value of each class of receivables m

entioned above. (R

efer to note 2 (ab) for more inform

ation on the risk managem

ent policy of the Consolidated E

ntity.)

Non-current loan and other receivables

Fair valueC

onsolidated P

arent 2011

20102011

2010The fair values and carrying values of non-current receivables are as follow

s:$’000

$’000$’000

$’000

Loan and receivables - fair value3,925,242

4,114,905173

335

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Credit R

isk

The maxim

um exposure to credit risk at the reporting date is the higher of the carrying value and fair value of

each class of receivables mentioned above. (R



ent policy of the C

onsolidated Entity).

(c) Collateral held

Collateral is in the form

of registered fi rst mortgages over residential properties in W

estern Australia

purchased with the proceeds of loans from

Keystart. The parties granting the m

ortgage must be the sam

e as the K

eystart borrowers.

Terms and conditions associated w

ith the use of collateral are such that should a borrower breach the term

s and conditions of their m

ortgage, Keystart has the facility to recover all or part of the outstanding exposure by;

(a) exercising its rights under the mortgage, including the pow

er of sale and (b) the 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 residential property.

Consolidated

Parent

20112010

20112010

$’000$’000

$’000$’000

Fair value of collateral obtained in terms of the

collateral obtained during the period in terms of the

exercising of rights under the mortgages

20,125 10,463

--

Mortgagee sales are considered as the last resort in relation to continually defaulting borrow

ers. The execution of the m

ortgagee sales must com

ply with the U

niform C

onsumer C

redit Code (U

CC

C), w

here appropriate.

Repossessed collateral is sold at best possible m

arket price, with any surpluses being returned to the borrow

ersconcerned. A

ny shortfalls are written-off against allow

ance.

(c) The Housing A

uthority has one interest free loan with a face value of $112,000 (original principal w

as $200,000 in 2001) w

hich is carried at amortised cost w

ith an effective interest rate of 5.34%. The carrying am

ount as at June 30 2011 is $78,018.36 (June 2010 $81,714.94).

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Credit R

isk

The maxim

um exposure to credit risk at the reporting date is the higher of the carrying value and fair value of

each class of receivables mentioned above. (R



ent policy of the C

onsolidated Entity).

(c) Collateral held

Collateral is in the form

of registered fi rst mortgages over residential properties in W

estern Australia

purchased with the proceeds of loans from

Keystart. The parties granting the m

ortgage must be the sam

e as the K

eystart borrowers.

Terms and conditions associated w

ith the use of collateral are such that should a borrower breach the term

s and conditions of their m

ortgage, Keystart has the facility to recover all or part of the outstanding exposure by;

(a) exercising its rights under the mortgage, including the pow

er of sale and (b) the 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 residential property.

Consolidated

Parent

20112010

20112010

$’000$’000

$’000$’000

Fair value of collateral obtained in terms of the

collateral obtained during the period in terms of the

exercising of rights under the mortgages

20,125 10,463

--

Mortgagee sales are considered as the last resort in relation to continually defaulting borrow

ers. The execution of the m

ortgagee sales must com

ply with the U

niform C

onsumer C

redit Code (U

CC

C), w

here appropriate.

Repossessed collateral is sold at best possible m

arket price, with any surpluses being returned to the borrow

ersconcerned. A

ny shortfalls are written-off against allow

ance.

(c) The Housing A

uthority has one interest free loan with a face value of $112,000 (original principal w

as $200,000 in 2001) w

hich is carried at amortised cost w

ith an effective interest rate of 5.34%. The carrying am

ount as at June 30 2011 is $78,018.36 (June 2010 $81,714.94).

Consolidated

Parent

20112010

20112010

$000$000

$000$000

23. Other current assets

Accrued revenue

Interest on cash at bank2,871

4,164 2,871

4,164 Interest K

eystart investments

--

30,399 21,415

2,871 4,164

33,270 25,579

Prepaym

entsInsurance prem

iums

29 7

29 7

Lease rentals6,962

6,124 6,962

6,124 D

evelopment proposals

16,772 11,165

16,772 11,165

Joint venture3,245

3,184 3,245

3,184 27,008

20,480 27,008

20,480 Total other current assets

29,879 24,644

60,278 46,059

24. Non-current assets classifi ed as held for sale

Opening B

alanceR


1,435 2,820

1,435 A

ssets reclassifi ed as held for saleR


37,344 37,110

37,344 Less im

pairment

1,033 932

1,033 932

36,077 36,412

36,077 36,412

Total assets classifi ed as held for saleR


37,847 38,897

37,847 Less assets sold

Rental properties

27,100 35,027

27,100 35,027

Closing balance

Rental properties

11,797 2,820

11,797 2,820

These properties are the Housing A

uthority’s New

Living and Redevelopm

ent programs properties that form

part of the rental property class that are m

arketed and available for imm

ediate sale in accordance with A

AS

B 5. A

ssets held for sale are held at fair value less selling costs.

25. Other fi nancial assets

Current

Deposits at call (a)

270,066 80,081

--

Total current other fi nancial assets270,066

80,081 -

-

Non-current investm

entsE

llenbrook Managem

ent Pty Ltd S

hares (b)24

24 24

24 Total non-current other fi nancial assets

24 24

24 24

(a) The fair values of the short term deposits are determ

ined using generally accepted pricing models based

on discounted cash flow analysis using prices from

observable current market transactions.

(i) Risk exposure - Inform

ation about the Consolidated Entity’s exposure to m

arket risk, credit risk and liquidity risk is provided in note 2 (ab)

(ii) Impairm

ent - Financial assets are assessed for indicators of impairm

ent regularly. Financial assets are impaired

where there is objective evidence that as a result of one or m

ore events that occurred after initial recognition of the fi nancial asset the investm

ent has been impacted.

Disclosed in the fi nancial statem

ents as:C

urrent other fi nancial assets270,066

80,000 -

-270,066

80,000 -

-

124H


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25. Other fi nancial assets (continued)

(b) Interest is held in the following com

pany.

Nam

eP

rincipalA

ctivitiesType ofshares

Percentage of each share

class held D

ividendsreceived($000)

Value ofS

hares atcost ($000)

20112010

Real estate

development

%%

Ellenbrook M

anagement P

ty LtdO

rd.47.14

47.14N

il24

Consolidated

Parent

20112010

20112010

26. Rental properties

$000$000

$000$000

Rental properties at fair value

Improvem

ents5,283,792

4,629,953 5,283,792

4,629,953 Land

6,157,128 5,735,085

6,157,128 5,735,085

11,440,920 10,365,038

11,440,920 10,365,038

Less accumulated depreciation

5,779 4,655

5,779 4,655

11,435,141 10,360,383

11,435,141 10,360,383

Leasehold improvem

ents at cost201

224 201

224 Less accum

ulated depreciation132

151 132

151 69

73 69

73

Total rental properties11,435,210

10,360,456 11,435,210

10,360,456

27. Com


Crisis accom

modation properties at fair value

Improvem

ents64,968

55,742 64,968

55,742 Land

108,547 101,229

108,547 101,229

173,515 156,971

173,515 156,971

Com

munity housing properties at fair value

Improvem

ents193,352

156,622 193,352

156,622 Land

213,045 182,066

213,045 182,066

406,397 338,688

406,397 338,688

Joint charity projects at fair valueIm

provements

114,068 125,870

114,068 125,870

Land37,529

42,114 37,529

42,114 151,597

167,984 151,597

167,984 Indigenous urban housing at fair value

Improvem

ents4,605

3,840 4,605

3,840 Land

5,628 3,285

5,628 3,285

10,233 7,125

10,233 7,125

741,742 670,768

741,742 670,768

Less accumulated depreciation:

Crisis accom

modation

44 15

44 15

Com

munity housing

618 698

618 698

Joint charity projects 13

562 13

562 Indigenous urban housing

-(174)

-(174)

675 1,101

675 1,101

Total comm


669,667 741,067

669,667

28. Shared equity propertiesS

hared Equity P

roperties at fair valueIm

provements

232,833 203,316

232,833 203,316

Land340,895

325,199 340,895

325,199 573,728

528,515 573,728

528,515 Less A

ccumulated D

epreciation:251

1,024 251

1,024 Total shared equity properties

573,477 527,491

573,477 527,491

125H


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25. Other fi nancial assets (continued)

(b) Interest is held in the following com

pany.

Nam

eP

rincipalA

ctivitiesType ofshares

Percentage of each share

class held D

ividendsreceived($000)

Value ofS

hares atcost ($000)

20112010

Real estate

development

%%

Ellenbrook M

anagement P

ty LtdO

rd.47.14

47.14N

il24

Consolidated

Parent

20112010

20112010

26. Rental properties

$000$000

$000$000

Rental properties at fair value

Improvem

ents5,283,792

4,629,953 5,283,792

4,629,953 Land

6,157,128 5,735,085

6,157,128 5,735,085

11,440,920 10,365,038

11,440,920 10,365,038

Less accumulated depreciation

5,779 4,655

5,779 4,655

11,435,141 10,360,383

11,435,141 10,360,383

Leasehold improvem

ents at cost201

224 201

224 Less accum

ulated depreciation132

151 132

151 69

73 69

73

Total rental properties11,435,210

10,360,456 11,435,210

10,360,456

27. Com


Crisis accom

modation properties at fair value

Improvem

ents64,968

55,742 64,968

55,742 Land

108,547 101,229

108,547 101,229

173,515 156,971

173,515 156,971

Com

munity housing properties at fair value

Improvem

ents193,352

156,622 193,352

156,622 Land

213,045 182,066

213,045 182,066

406,397 338,688

406,397 338,688

Joint charity projects at fair valueIm

provements

114,068 125,870

114,068 125,870

Land37,529

42,114 37,529

42,114 151,597

167,984 151,597

167,984 Indigenous urban housing at fair value

Improvem

ents4,605

3,840 4,605

3,840 Land

5,628 3,285

5,628 3,285

10,233 7,125

10,233 7,125

741,742 670,768

741,742 670,768


Crisis accom

modation

44 15

44 15

Com

munity housing

618 698

618 698

Joint charity projects 13

562 13

562 Indigenous urban housing

-(174)

-(174)

675 1,101

675 1,101

Total comm


669,667 741,067

669,667

28. Shared equity propertiesS

hared Equity P

roperties at fair valueIm

provements

232,833 203,316

232,833 203,316

Land340,895

325,199 340,895

325,199 573,728

528,515 573,728

528,515 Less A

ccumulated D

epreciation:251

1,024 251

1,024 Total shared equity properties

573,477 527,491

573,477 527,491

Consolidated

Parent

20112010

20112010

$000$000

$000$000

29. Other properties

Other properties at fair value

Offi cesIm

provements

10,124 11,339

10,124 11,339

Land35,305

30,157 35,305

30,157 45,429

41,496 45,429

41,496 C

omm

ercialIm

provements

2,173 2,482

2,173 2,482

Land6,367

3,776 6,367

3,776 8,540

6,258 8,540

6,258 Joint venture buildings

1,821 1,732

1,821 1,732

55,790 49,486

55,790 49,486


Com

mercial

26 1

26 1

Joint venture buildings527

404 527

404 553

405 553

405 55,237

49,081 55,237

49,081 Leasehold im

provements at cost

2,050 803

2,050 803


1,310 387

1,310 387

740 416

740 416

GR

OH

vacant land at fair value44,566

31,424 44,566

31,424 Total other properties

100,543 80,921

100,543 80,921

30. Plant and equipment

Plant &

equipment at cost

Air conditioning

1,171 1,178

1,171 1,178

Com

mercial vehicles

207 207

207 207

Com

puting facilities & equipm

ent16,335

17,319 13,110

13,214 Furniture &

fi ttings2,235

488 327

339 O

ffi ce machines &

equipment

3,314 3,292

3,133 3,015

Joint venture offi ce equipment

163 163

163 163

Plant &

equipment

106 106

106 106

23,531 22,753

18,217 18,222


Air conditioning

855 789

855 789

Com

mercial vehicles

187 175

187 175

Com


ent9,962

9,676 8,274

7,635 Furniture &

fi ttings345

378 280

286 O

ffi ce machines &

equipment

1,290 1,286

1,163 1,093

Joint venture offi ce equipment

88 71

88 71

Plant &

equipment

102 89

102 89

12,829 12,464

10,949 10,138

Total plant and equipment

10,702 10,289

7,268 8,084

126H


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2011 CONSOLIDATED 2010

Rental Properties

Community Housing

Properties

Shared Equity

Properties

Other Properties

Plant & Equipment

Buildings under Construction

Total Rental Properties

Community Housing

Properties

Shared Equity

Properties

Other Properties

Plant & Equipment


Total

$000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $00010,360,456 669,667 527,491 80,921 10,289 265,633 11,914,457 Carrying amount at start of year 10,777,779 610,900 500,855 86,793 8,594 211,051 12,195,972

178,887 111,615 13,992 28,406 3,930 477,778 814,608 Additions 161,463 35,714 23,962 15,608 4,767 365,999 607,513 232,168 220,829 8,799 5,783 - (467,579) - Transfers 235,395 28,356 47,402 264 - (311,417) -(72,163) (263,567) (22,849) (14,560) (3,152) - (376,291) Disposals (116,442) (3,219) (24,937) (14,828) (398) - (159,824)(37,110) - - - - - (37,110) Classifi ed as held for sale (37,344) - - - - - (37,344)865,672 9,516 52,002 1,639 - - 928,829 Revaluation increments (a) (565,369) 4,926 (14,074) (6,111) - - (580,628)(92,700) (6,993) (5,958) (1,646) (365) - (107,662) Depreciation (95,026) (7,010) (5,717) (805) (2,674) - (111,232)

11,435,210 741,067 573,477 100,543 10,702 275,832 13,136,831 Carrying amount at end of year 10,360,456 669,667 527,491 80,921 10,289 265,633 11,914,457

2011 PARENT 2010

Rental Properties

Community Housing

Properties

Shared Equity

Properties

Other Properties

Plant & Equipment



Community Housing

Properties

Shared Equity

Properties

Other Properties

Plant & Equipment


Total




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 suffi cient regularity to ensure that the carrying amount does not differ materially from the asset's fair value at the end of the reporting period.

31. PROPERTY, PLANT AND EQUIPMENT RECONCILIATION

127H


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2011 CONSOLIDATED 2010

Rental Properties

Community Housing

Properties

Shared Equity

Properties

Other Properties

Plant & Equipment



Community Housing

Properties

Shared Equity

Properties

Other Properties

Plant & Equipment


Total




2011 PARENT 2010

Rental Properties

Community Housing

Properties

Shared Equity

Properties

Other Properties

Plant & Equipment



Community Housing

Properties

Shared Equity

Properties

Other Properties

Plant & Equipment


Total




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 suffi cient regularity to ensure that the carrying amount does not differ materially from the asset's fair value at the end of the reporting period.

31. PROPERTY, PLANT AND EQUIPMENT RECONCILIATIONC

onsolidated P

arent 2011

20102011

2010$000

$000$000

$00032. Intangible assets

Com

puting software at cost

6,014 9,573

4,799 4,830

Less accumulated am

ortisation4,169

8,198 3,691

4,071 1,845

1,375 1,108

759 C

omputing developm

ent at cost12,971

12,506 12,971

12,506 Less accum

ulated amortisation

10,609 10,199

10,609 10,199

2,362 2,307

2,362 2,307

Total intangible assets4,207

3,682 3,470

3,066

Intangible assets reconciliationC

arrying amount at start of year

3,682 2,714

3,066 2,386

Additions

2,170 2,121

1,792 1,662

Disposals

(1,389)(674)

(1,358)(674)

Am

ortisation expense(256)

(479)(30)

(308)C


4,207 3,682

3,470 3,066

33. PayablesC

urrentC

ontractors retention monies

12,086 14,253

12,086 14,253

Joint venture creditors8,592

6,014 8,592

6,014 R

ental properties water consum

ption2,075

1,931 2,075

1,931 R

ental tenants bonds14,002

13,171 14,002

13,171 Trade creditors

14,713 4,140

14,713 4,140

Total current payables51,468

39,509 51,468

39,509

Included in the trade creditors line are the unspent funds associated with the Indian O

cean Territories (IOT) service

delivery arrangements as per the follow

ing:

20112010

$$

Am

ounts carried forward from

previous fi nancial year.24,552

345,609P

ayments m

ade by the Com

monw

ealth for IOT services.

00

Cost of services.

26,219133,428

Construction paid

17,138187,629

Am

ounts carried forward to follow

ing fi nancial year.-18,805

24,552

Due to the short term

nature of these payables, their carrying value is assumed to approxim

ate their fair value.

Non-current

Joint venture creditors24

24 24

24 Total non-current payables

24 24

24 24

34. B

orrowings

Current

Borrow

ingsW


56,271 62,800

56,271 62,800

Com

monw

ealth advances14,061

13,717 14,061

13,717 Total current borrow

ings70,332

76,517 70,332

76,517

128H


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Consolidated

Parent

20112010

20112010

$000$000

$000$000

34. Borrow

ings (continued)

Non-current

Borrow

ings

WA Treasury C

orporation4,658,377

4,761,194 4,658,377

4,761,194 C

omm

onwealth advances

451,819 465,896

451,819 465,896

Total non-current borrowings

5,110,196 5,227,090

5,110,196 5,227,090

Total borrowings

5,180,528 5,303,607

5,180,528 5,303,607

The fair values for WATC

borrowings have been calculated by W

estern Australian Treasury C

orporation, based on m

arket valuations. The State N

ominated and C

omm

onwealth advances have been calculated using a discount rate of

5.20% w

hich is the Com

monw

ealth bond rate. (June 2010, 5.11%)

C

onsolidated

Total carrying amount

Aggregate N

et Fair Value2011

20102011

2010$000

$000$000

$000

Borrow

ings - WATC

4,714,6484,823,994

4,725,3974,796,242

Borrow

ings - Com

monw


479,613434,793

450,7105,180,528

5,303,607 5,160,190

5,246,952

ParentTotal carrying am

ountA

ggregate Net Fair Value

20112010

20112010

$000$000

$000$000

Borrow

ings - WATC

4,714,648 4,823,994

4,725,397 4,796,242

Borrow

ings - Com

monw


479,613 434,793

450,710 5,180,528

5,303,607 5,160,190

5,246,952

35. Provisions C

urrentE

mployee benefi ts

Long service leave7,330

6,758 7,330

6,758 A

nnual leave7,458

6,335 7,458

6,335 14,788

13,093 14,788

13,093 O

therE

mployee benefi ts on-costs

813 721

813 721

Joint venture provisions8,854

10,102 8,854

10,102 Total current provisions

24,455 23,916

24,455 23,916

Non - C

urrentE

mployee benefi ts


4,680 5,395

4,680 S

uperannuation26,100

26,505 26,100

26,505 31,495

31,185 31,495

31,185 O

therE

mploym

ent on-costs297

257 297

257 Joint venture provisions

159 -

159 -

Developm

ent levies (note 2s(ii))3,327

4,524 3,327

4,524 Total non-current provisions

35,278 35,966

35,278 35,966

129H


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Consolidated

Parent

20112010

20112010

$000$000

$000$000

34. Borrow

ings (continued)

Non-current

Borrow

ings

WA Treasury C

orporation4,658,377

4,761,194 4,658,377

4,761,194 C

omm

onwealth advances

451,819 465,896

451,819 465,896

Total non-current borrowings

5,110,196 5,227,090

5,110,196 5,227,090

Total borrowings

5,180,528 5,303,607

5,180,528 5,303,607

The fair values for WATC

borrowings have been calculated by W

estern Australian Treasury C

orporation, based on m

arket valuations. The State N

ominated and C

omm

onwealth advances have been calculated using a discount rate of

5.20% w

hich is the Com

monw

ealth bond rate. (June 2010, 5.11%)

C

onsolidated

Total carrying amount

Aggregate N

et Fair Value2011

20102011

2010$000

$000$000

$000

Borrow

ings - WATC

4,714,6484,823,994

4,725,3974,796,242

Borrow

ings - Com

monw


479,613434,793

450,7105,180,528

5,303,607 5,160,190

5,246,952

ParentTotal carrying am

ountA

ggregate Net Fair Value

20112010

20112010

$000$000

$000$000

Borrow

ings - WATC

4,714,648 4,823,994

4,725,397 4,796,242

Borrow

ings - Com

monw


479,613 434,793

450,710 5,180,528

5,303,607 5,160,190

5,246,952

35. Provisions C

urrentE

mployee benefi ts


6,758 7,330

6,758 A

nnual leave7,458

6,335 7,458

6,335 14,788

13,093 14,788

13,093 O

therE

mployee benefi ts on-costs

813 721

813 721


10,102 8,854

10,102 Total current provisions

24,455 23,916

24,455 23,916

Non - C

urrentE

mployee benefi ts


4,680 5,395

4,680 S

uperannuation26,100

26,505 26,100

26,505 31,495

31,185 31,495

31,185 O

therE

mploym

ent on-costs297

257 297

257 Joint venture provisions

159 -

159 -

Developm

ent levies (note 2s(ii))3,327

4,524 3,327

4,524 Total non-current provisions

35,278 35,966

35,278 35,966

Consolidated

Parent

20112010

20112010

$000$000

$000$000

35. Provisions (continued)

Long service leave liabilities have been established by actuarial assessment dated 5 July 2011. The assessm

ent of the non-current portion of the liability is at net present value allow

ing for a salary infl ation rate of 3.5% and an investm

ent earning rate (discount) of 4.76%

.

(a) A

nnual leave liabilities have been classifi ed as current as there is no unconditional right to defer settlement for

at least 12 m

onths after the reporting period. Assessm

ents indicate that actual settlements of the liabilities w

ill occur

as follows:

Within 12 m

onths of the end of the reporting period7,458

6,335 7,458

6,335

(b) Long service liabilities have been classifi ed as current where there is no unconditional right to defer settlem

ent for

at least 12 months after the end of the reporting period. A

ssessments indicate that actual settlem

ents of the liabilities will

occur as follow

s:

Within 12 m

onths of the end of the reporting period7,330

6,758 7,330

6,758 M

ore than 12 months after the reporting period

5,395 4,680

5,395 4,680

12,725 11,438

12,725 11,438

The settlement of annual and long service leave liabilities gives rise to the paym

ent of employm

ent on-costs including w

orkers’ compensation prem

iums and payroll tax. The provision is the present value of expected future paym

ents. The associated expense, apart from

the unwinding of the discount (fi nance cost), is included at note 19 ‘O

ther expenses’.

M

ovement in P

rovisions

Em

ployment on-costs

1,110 978

1,110 978

Carrying am

ount at start of year978

871 978

871 A

dditional provisions recognised5,028

4,547 5,028

4,547 P

ayments

(4,896)(4,440)

(4,896)(4,440)

Carrying am

ount at end of year1,110

978 1,110

978

Developm

ent levies 3,327

4,524 3,327

4,524 C


4,524 2,866

4,524 2,866

Additional provisions recognised

1,884 3,382

1,884 3,382

Paym

ents(3,081)

(1,724)(3,081)

(1,724)C


3,327 4,524

3,327 4,524


10,102 9,013

10,102 C


10,102 8,589

10,102 8,589

Additional provisions recognised

8,926 10,210

8,926 10,210

Paym

ents(10,015)

(8,697)(10,015)

(8,697)C


9,013 10,102

9,013 10,102

Defi ned benefi t superannuation plans

The superannuation liability has been established from data supplied by the G

overnment Em

ployees Superannuation Board.

The am

ounts recognised in the Statem

ent of C

omprehensive Incom

e are as follows:

Pension S

cheme

Pre-transfer benefi t - G

old S


cheme

20112010

20112010

$000$000

$000$000

Interest cost1,062

1,075 305

360 N

et actuarial losses/(gains) recognised1,267

650 303

(167)Total included in E

mployee benefi ts expense

2,329 1,725

608 193

The amounts recognised in the S


osition are as follows:

Present value of unfunded obligations

20,449 20,608

5,651 5,897

Liability in the Statem

ent of Financial Position

20,449 20,608

5,651 5,897

130H


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35. Provisions (Continued)

The Authority has no legal liability to m

ake up the liability other than by continuing to comply w

ith the employer funding

arrangements as detailed below

.

Reconciliation of the unfunded liability recognised in the S


osition is as follows:

Pension S

cheme

Pre-transfer benefi t -

Gold S

tate Superannuation

Schem

e

20112010

20112010

$000$000

$000$000

Liability at the start of the year20,608

21,402 5,897

7,064 C

urrent service cost-

--

-Interest cost (unw

inding of the discount)1,062

1,075 305

360 N


650 303

(167)B

enefi ts paid(2,488)

(2,519)(854)

(1,360)Liability at the end of the year

20,449 20,608

5,651 5,897

Reconciliation of the fair value of plan assets is as follow

s:

Fair value of plan assets at the start of the year

--

--

Em

ployer contributions2,488

2,519 854

1,360 B


(2,519)(854)

(1,360)Fair value of plan assets at the end of the year

--

--

The principal actuarial assumptions used (expressed as w

eighted averages) were as follow

s:

20112010

20092008

Discount rate

5.28%5.48%

5.34%6.64%

Future salary increases4.50%

4.50%4.50%

4.50%Future pension increases

2.50%2.50%

2.50%2.50%

Historic sum

mary

Pension schem

e:P

resent value of unfunded obligation20,449

20,608 21,402

21,010 Fair value of plan assets

--

--

Defi cit

20,449 20,608

21,402 21,010


old State superannuation

Schem

e:P


5,897 7,064


--

--

Defi cit

5,651 5,897

7,064 8,277

Experience adjustm

ents arising on plan liabilities:P

ension scheme

985 144

3,153 355

Pre-transfer benefi t - Gold State superannuation Schem

e224

(112)161

430

The funding policy adopted by the G

overnment in respect of the defi ned benefi t plans is directed at ensuring that benefi ts

accruing to mem

bers and benefi ciaries are fully funded at the time the benefi ts becom

e payable. As such, the S

chemes’

actuary has considered long-term trends in such factors as schem

e mem

bership, salary growth and average m

arket value of the schem

es’ assets when advising the G

overnment on em

ployer and employee contribution rates. The em

ployer funding arrangem

ents for the defi ned benefi t plans under the State S

uperannuation Act 2000 are sum

marised as follow

s:

P

ension Schem

e

The P

ension Schem

e is a unit-based scheme. The level of pension payable is determ

ined by the number of units

purchased, the length of service and the fi nal salary of the mem

ber. The employer liability is funded only on the em

ergence of a m

ember’s pension benefi t entitlem

ent and is recouped by the Governm

ent Em


oard fortnightly follow

ing the payment of each pension.

Em

ployer contributions of $2,530,000 are expected to be paid to the Pension S

cheme for the year ending 30 June 2012.

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The Authority has no legal liability to m

ake up the liability other than by continuing to comply w

ith the employer funding

arrangements as detailed below

.

Reconciliation of the unfunded liability recognised in the S


osition is as follows:

Pension S

cheme

Pre-transfer benefi t -

Gold S

tate Superannuation

Schem

e

20112010

20112010

$000$000

$000$000

Liability at the start of the year20,608

21,402 5,897

7,064 C

urrent service cost-

--

-Interest cost (unw

inding of the discount)1,062

1,075 305

360 N


650 303

(167)B


(2,519)(854)

(1,360)Liability at the end of the year

20,449 20,608

5,651 5,897

Reconciliation of the fair value of plan assets is as follow

s:

Fair value of plan assets at the start of the year

--

--

Em

ployer contributions2,488

2,519 854

1,360 B


(2,519)(854)

(1,360)Fair value of plan assets at the end of the year

--

--

The principal actuarial assumptions used (expressed as w

eighted averages) were as follow

s:

20112010

20092008

Discount rate

5.28%5.48%

5.34%6.64%

Future salary increases4.50%

4.50%4.50%

4.50%Future pension increases

2.50%2.50%

2.50%2.50%

Historic sum

mary

Pension schem

e:P


20,608 21,402


--

--

Defi cit

20,449 20,608

21,402 21,010


old State superannuation

Schem

e:P


5,897 7,064


--

--

Defi cit

5,651 5,897

7,064 8,277

Experience adjustm

ents arising on plan liabilities:P

ension scheme

985 144

3,153 355

Pre-transfer benefi t - Gold State superannuation Schem

e224

(112)161

430

The funding policy adopted by the G

overnment in respect of the defi ned benefi t plans is directed at ensuring that benefi ts

accruing to mem

bers and benefi ciaries are fully funded at the time the benefi ts becom

e payable. As such, the S

chemes’

actuary has considered long-term trends in such factors as schem

e mem

bership, salary growth and average m

arket value of the schem

es’ assets when advising the G

overnment on em

ployer and employee contribution rates. The em

ployer funding arrangem

ents for the defi ned benefi t plans under the State S

uperannuation Act 2000 are sum

marised as follow

s:

P

ension Schem

e

The P

ension Schem

e is a unit-based scheme. The level of pension payable is determ

ined by the number of units

purchased, the length of service and the fi nal salary of the mem

ber. The employer liability is funded only on the em

ergence of a m

ember’s pension benefi t entitlem

ent and is recouped by the Governm

ent Em


oard fortnightly follow

ing the payment of each pension.

Em

ployer contributions of $2,530,000 are expected to be paid to the Pension S

cheme for the year ending 30 June 2012.


G

old State S

uperannuation Schem

e

The G

old State S

uperannuation Schem

e is a lump sum

scheme. The H

ousing Authority is required under the S

tate S

uperannuation Regulations 2001 to m

ake concurrent employer contributions direct to the S

cheme in respect of

contributory mem

bers who are the A

uthority’s employees.

The employer contribution rate for 2010/11 for contributory m

embers w

as 12% (2009/10: 12%

) of a mem

ber’s salary, based on a 5%

mem

ber contribution. The employer contribution rate is proportionately less or m

ore where m

embers elect a

contribution rate of 3%, 4%

, 6% or 7%

of salary.

In respect of those m

embers w

ho transferred their mem

bership from the P

ension Schem

e, the employer liability in

relation to service or period of employm

ent constituted as service for the purposes of the State S

uperannuation Act 2000,

is calculated at a rate of 12% of fi nal average salary for each year of such service, based upon a 5%

mem

ber’s average contribution rate to the schem

e (this rate is proportionately less where a m

ember’s average contribution rate is less than

5%). This em

ployer liability becomes payable on the paym

ent of the benefi t to the mem

ber.

Em

ployer contributions of $653,000 are expected to be paid to the Gold S


cheme for the year ending

30 June 2012.

Consolidated

Parent

20112010

20112010

$000$000

$000$000

36. Other liabilities

Current

Accrued expenses:

Adm

inistrative & general expenses

7,184 8,374

4,942 5,879

7,184 8,374

4,942 5,879

Joint venture liabilities-

800 -

800 U

nearned income

9,019 7,791

8,124 7,791

Total current other liabilities16,203

16,965 13,066

14,470

37. Contributed equity

Opening balance

1,065,962 612,361

1,065,962 612,361

Capital contributions

375,064 359,601

375,064 359,601

Other contributions by ow

nerR

oyalties for regions fund - regional infrastructure and headw

orks account63,550

94,00063,550

94,000

Closing balance

1,504,576 1,065,962

1,504,576 1,065,962

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Consolidated

Parent

20112010

20112010

38. Reserves

$000$000

$000$000

(i) Asset R

evaluation Reserve

Balance brought forw

ard from prior year

7,727,617 8,448,832

7,727,617 8,448,832

Transferred to retained earnings(96,887)

(157,606)(96,887)

(157,606)R

evaluations during the year948,941

(563,609)948,941

(563,609)C

losing balance 8,579,671

7,727,617 8,579,671

7,727,617

Revaluations recognised during the year w

ere in respect of:R

ental properties - current865,672

(565,369)865,672

(565,369)C

omm

unity housing properties - current9,516

4,926 9,516

4,926 S

hared equity properties - current52,002

(14,074)52,002

(14,074)O

ther properties - current1,639

(6,111)1,639

(6,111)Land transferred to rental properties

20,112 17,019

20,112 17,019

948,941 (563,609)

948,941 (563,609)

Transferred to retained earningsR

evaluation amount of rental properties - sold

(50,870)(72,614)

(50,870)(72,614)

Revaluation am

ount of rental properties - dem

olished(40,872)

(71,048)(40,872)

(71,048)

Revaluation am

ount of comm

unity housing properties - sold

87 (3,899)

87 (3,899)

Revaluation am

ount of other properties - sold(226)

(143)(226)

(143)R

evaluation amount of shared equity

properties - sold(5,006)

(9,902)(5,006)

(9,902)

(96,887)(157,606)

(96,887)(157,606)

The asset revaluation reserve is used to record increments and decrem

ents on the revaluation of non-current assets, as described in accounting policy note 2(f).

(ii) Interest Assistance Low

start Reserve


ard from prior year

788 809

--

Transfer to retained profi ts (18)

(21)-

-C

losing balance 770

788 -

-

The reserve was established to fund the forgone interest portion of reconstructed K

eystart Lowstart hom

e loans.

(iii) H

edging Reserve

B

alance brought forward from

prior year(6)

(6)-

-Transfer from

Statem

ent of Com

prehensive Incom

e6

--

-

Closing balance

-(6)

--

Total Reserves

8,580,441 7,728,399

8,579,671 7,727,617

39. Retained earnings

Opening balance

3,145,036 2,871,382

2,906,436 2,680,441

3,145,036 2,871,382

2,906,436 2,680,441

Transfer from asset revaluation reserve upon

disposal96,887

157,606 96,887

157,606

Transfer from interest assistance low

start reserve

18 21

--

Net profi t/(loss) for the year

(360,251)116,027

(369,365)68,389

Total retained earnings2,881,690

3,145,036 2,633,958

2,906,436

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Consolidated

Parent

20112010

20112010

38. Reserves

$000$000

$000$000

(i) Asset R

evaluation Reserve


ard from prior year

7,727,617 8,448,832

7,727,617 8,448,832

Transferred to retained earnings(96,887)

(157,606)(96,887)

(157,606)R

evaluations during the year948,941

(563,609)948,941

(563,609)C

losing balance 8,579,671

7,727,617 8,579,671

7,727,617

Revaluations recognised during the year w

ere in respect of:R

ental properties - current865,672

(565,369)865,672

(565,369)C

omm

unity housing properties - current9,516

4,926 9,516

4,926 S

hared equity properties - current52,002

(14,074)52,002

(14,074)O

ther properties - current1,639

(6,111)1,639

(6,111)Land transferred to rental properties

20,112 17,019

20,112 17,019

948,941 (563,609)

948,941 (563,609)

Transferred to retained earningsR

evaluation amount of rental properties - sold

(50,870)(72,614)

(50,870)(72,614)

Revaluation am

ount of rental properties - dem

olished(40,872)

(71,048)(40,872)

(71,048)

Revaluation am

ount of comm

unity housing properties - sold

87 (3,899)

87 (3,899)

Revaluation am

ount of other properties - sold(226)

(143)(226)

(143)R

evaluation amount of shared equity

properties - sold(5,006)

(9,902)(5,006)

(9,902)

(96,887)(157,606)

(96,887)(157,606)

The asset revaluation reserve is used to record increments and decrem

ents on the revaluation of non-current assets, as described in accounting policy note 2(f).

(ii) Interest Assistance Low

start Reserve


ard from prior year

788 809

--

Transfer to retained profi ts (18)

(21)-

-C

losing balance 770

788 -

-

The reserve was established to fund the forgone interest portion of reconstructed K

eystart Lowstart hom

e loans.

(iii) H

edging Reserve

B

alance brought forward from

prior year(6)

(6)-

-Transfer from

Statem

ent of Com

prehensive Incom

e6

--

-

Closing balance

-(6)

--

Total Reserves

8,580,441 7,728,399

8,579,671 7,727,617

39. Retained earnings

Opening balance

3,145,036 2,871,382

2,906,436 2,680,441

3,145,036 2,871,382

2,906,436 2,680,441

Transfer from asset revaluation reserve upon

disposal96,887

157,606 96,887

157,606

Transfer from interest assistance low

start reserve

18 21

--

Net profi t/(loss) for the year

(360,251)116,027

(369,365)68,389

Total retained earnings2,881,690

3,145,036 2,633,958

2,906,436

Consolidated

Parent

20112010

20112010

$000$000

$000$000

40. Reconciliation of cash fl ow

s fromoperations w

ith profi t for the period

Net P

rofi t (360,251)

116,027 (369,365)

68,389 N

on - cash items:

Depreciation &

amortisation expense

117,082 118,409

111,507 112,643


5,690 5,602

5,690 5,602

Loss on disposal of non-current assets12,228

20,425 8,452

19,138 C

ash items:

Grants &

subsidies and from governm

ent(34,418)

(117,040)(34,418)

(117,040)(Increase)/decrease in assets:R

eceivables(2,482)

7,322 (27,726)

13,337 Inventories

(108,668)(68,163)

(108,668)(68,163)

Other assets

(10,058)(18,292)

(10,058)(18,292)

Increase/(decrease) in liabilities:P

rovisions(14,340)

(13,714)(14,340)

(13,714)P

remium

s on fi nancial instruments

-3

--

Payables

307,672 20,388

298,064 8,549

Net G

ST paym

ents(21,305)

(20,643)(21,305)

(20,643)N

et cash fl ows (used in) provided by

operating activities(108,850)

50,324 (162,167)

(10,194)

41. Purchase of non-current physical assets

Buildings under construction

492,612 360,551

492,612 360,551

Com


ent3,751

6,450 3,296

4,244 O

ffi ce machines &

equipment

2,349 441

441 441

Properties

126,875 139,856

126,875 139,856

Total purchase of non-current physical assets625,587

507,298 623,224

505,092

42. Reconciliation of cash

For the purposes of this S

tatement of C

ash Flows cash includes cash at bank and in interest bearing deposits w

ith Banks.

C

ash at the end of the year is shown in the S


osition as:

C

ash at bank - operational27,827

352,047 21,073

317,755 C

ash at bank - superannuation 20,700

20,700 20,700

20,700 D

eposits at call270,066

80,000 -

-R

ental tenants bonds14,002

13,171 14,002

13,171 Joint venture cash

16,712 14,409

16,712 14,409

Rem

ote indigenous comm

unities4,543

568 4,543

568 Indigenous strategic intervention program

3,250 -

3,250 -

Royalties for regions

6,510 7,532

6,510 7,532

363,610 488,427

86,790 374,135

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43. Rem

uneration of the accountable authority and senior offi cers

R

emuneration of M

embers of the A

ccountable Authority

The number of m

embers of the accountable authority w

hose total of fees, salaries, superannuation, non-monetary benefi ts

and other benefi ts for the fi nancial year, falls within the follow

ing bands:

20112010

$350,001 - $360,0001

1 1

1

The total remuneration of the m

embers of

the accountable authority359

353

The total remuneration includes the superannuation expense incurred by the H

ousing Authority in respect of m

embers of

the accountable authority.

There are no m


ho are currently mem

bers of the Pension S

cheme.

R

emuneration of S

enior Offi cers

The num

ber of Senior Offi cers other than senior offi cers reported as m

embers of the accountable authority, w

hose total of fees, salaries, superannuation, non-m

onetary benefi ts and other benefi ts for the fi nancial year fall within the follow

ing bands:

2011

2010$20,001 - $30,000

1 -

$30,001 - $40,0001

-$50,001 - $60,000

-1

$60,001 - $70,000-

2 $70,001 - $80,000

1 -

$80,001 - $90,000-

1 $90,001 - $100,000

1 -

$120,001 - $130,000-

1 $130,001 - $140,000

-1

$140,001 - $150,000-

1 $150,001 - $160,000

-1

$160,001 - $170,000-

1 $170,001 - $180,000

1 -

$180,001 - $190,0002

-7

9

The total remuneration of senior offi cers

766 980

The total rem

uneration includes the superannuation expense incurred by the Housing A

uthority in respect of Senior O

ffi cers other than senior offi cers reported as m

embers of the accountable authority.

There are no S

enior Offi cers presently em

ployed who are currently m

embers of the P

ension Schem

e.

Consolidated

Parent

20112010

20112010

$000$000

$000$000

44. Rem

uneration of auditor

Rem

uneration paid or payable to the Auditor G

eneral in respect of the audit for the current fi nancial year is as follow

s:

Fees for the Auditor G

eneral for auditing the Financial S

tatements and P

erformance Indicators

388 372

283 290

388 372

283 290

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43. Rem

uneration of the accountable authority and senior offi cers

R

emuneration of M

embers of the A

ccountable Authority

The number of m


hose total of fees, salaries, superannuation, non-monetary benefi ts

and other benefi ts for the fi nancial year, falls within the follow

ing bands:

20112010

$350,001 - $360,0001

1 1

1

The total remuneration of the m

embers of

the accountable authority359

353

The total remuneration includes the superannuation expense incurred by the H

ousing Authority in respect of m

embers of

the accountable authority.

There are no m


ho are currently mem

bers of the Pension S

cheme.

R

emuneration of S

enior Offi cers

The num

ber of Senior Offi cers other than senior offi cers reported as m

embers of the accountable authority, w

hose total of fees, salaries, superannuation, non-m

onetary benefi ts and other benefi ts for the fi nancial year fall within the follow

ing bands:

2011

2010$20,001 - $30,000

1 -

$30,001 - $40,0001

-$50,001 - $60,000

-1

$60,001 - $70,000-

2 $70,001 - $80,000

1 -

$80,001 - $90,000-

1 $90,001 - $100,000

1 -

$120,001 - $130,000-

1 $130,001 - $140,000

-1

$140,001 - $150,000-

1 $150,001 - $160,000

-1

$160,001 - $170,000-

1 $170,001 - $180,000

1 -

$180,001 - $190,0002

-7

9

The total remuneration of senior offi cers

766 980

The total rem

uneration includes the superannuation expense incurred by the Housing A

uthority in respect of Senior O

ffi cers other than senior offi cers reported as m

embers of the accountable authority.

There are no S

enior Offi cers presently em

ployed who are currently m

embers of the P

ension Schem

e.

Consolidated

Parent

20112010

20112010

$000$000

$000$000

44. Rem

uneration of auditor

Rem

uneration paid or payable to the Auditor G

eneral in respect of the audit for the current fi nancial year is as follow

s:

Fees for the Auditor G

eneral for auditing the Financial S

tatements and P

erformance Indicators

388 372

283 290

388 372

283 290

Consolidated

Parent

20112010

20112010

$000$000

$000$000

45. Com

mitm

ents for expenditure

A

t June 30 2011 the expenditure comm

itments being contracted capital expenditure additional to the am

ounts reported in the fi nancial statem

ents, are payable as follows:

(a) C

apital expenditure comm

itments

Within 1 year

252,372 460,620

252,372 460,620

Later than 1 year & not later than 5 years

1,067 12,232

1,067 12,232

253,439 472,852

253,439 472,852

The capital comm

itments include am

ounts for the following:

D

welling construction &

upgrades208,445

384,504 208,445

384,504 Land developm

ent and redevelopment

4,765 11,625

4,765 11,625

Crisis accom

modation program

1,095 3,933

1,095 3,933

Joint venture land development

11,429 20,691

11,429 20,691

New

living3,306

74 3,306

74 Local governm

ent & com

munity housing program

s24,399

52,025 24,399

52,025 253,439

472,852 253,439

472,852

(b) Other expenditure com

mitm

ents

Within 1 year

30,143 220,693

--

30,143 220,693

--

The other expenditure comm

itments include am

ounts for the following:

Loans to Hom

e Buyers

30,143 220,693

--

30,143 220,693

--

Expenditure com

mitm

ents have decreased by $409 million from

the previous year.

The 2009-10 Capital com

mitm

ents for construction of houses was higher than 2010-11 due to the large program

em

anating from the respective S

tate and Com

monw

ealth Stim

ulus Packages to the D

epartment in 2009-10. C

onstruction com

mitm

ents in 2010-11 predominantly represent new

tenders and some residual funding from

the Com

monw

ealth S

timulus P

ackage to be expended in 2011-12.

GR

OH

Capital com

mitm

ents have also decreased as projects under the Royalties for R

egions Housing for W

orkers are near com

pletion. It is forecast that projects from this funding source w

ill be completed by June 2012.

C

omm

itted carry over for Land Developm

ent, has decreased from the previous year due to projects m

aturing. There is ongoing expenditure planned for G

olden Bay, K

eralup, Geraldton, B

entley Brow

nlie Towers and K

winana/B

ertram. N

ew

Living developments com

mitm

ents have increased in comparison to the previous year, this is due to Q

ueens Park and

South H

edland as planned expenditure in 2010-11 was delayed as a result of com

plex infi ll developments, supply of C

rown

Land and Council approvals.

A decrease in Joint Venture developm

ent expedited comm

itment is a result of a soft land sales m

arket during the year, w

hich slowed after the First H

ome B

uyers Grant incentive reduced and uncertainty w

ith interest rate movem

ents. Major

joint venture projects are still progressing to produce affordable lots, however buyer sentim

ent is still uncertain.

Com

mitted carry over for C

omm

unity Housing has decreased as a num

ber of projects under the Strategic C

omm

unity H

ousing Investment P

rogram (S

CH

IP) have been com

pleted or are nearing completion. The C

omm

unity Housing S

ector, in partnership w

ith the Departm

ent of Housing, w

ill continue to play an increasing role in the delivery of growth in social

housing in the State.

Com

mitted carryover for Loans to H

omebuyers has decreased by $190.55 m

illion. During 2008-09 and 2009-10 fi nancial

years, Keystart acted counter cyclical to the market to assist hom

e buyers with hom

e loan fi nance during the Global Financial

crisis. At the same tim

e the First homebuyer grant w

as increased to stimulate fi rst hom

ebuyers to purchase or construct dw

ellings. The reduced capital comm

itments for 2010-11 refl ects the tightening of lending criteria by Keystart and the expiry of

the fi rst home buyer grant incentive, these factors have reduced Keystart loan activity and com

mitted carryover.

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Consolidated

Parent

20112010

20112010

$000$000

$000$000

45. Com

mitm

ents for expenditure (continued)

(c) Lease comm

itments

C

omm

itments in relation to leases contracted for at the end of the reporting period but not recognised in the fi nancial

statements as liabilities are payable as follow

s:

Rental property leases:

Lease com

mitm

ents on non cancellable operating leases are:

Within 1 year

65,939 38,287

65,939 38,287


67,138 42,410

67,138 42,410

Later than 5 years3,075

3,017 3,075

3,017 136,152

83,714 136,152

83,714

Motor vehicle leases:

Lease com

mitm


Within 1 year

1,049 886

1,049 886


453 285

453 285

1,502 1,171

1,502 1,171

Consolidated

Parent

20112010

20112010

$000$000

$000$000

Offi ce property leases:

Lease com

mitm


Within 1 year

2,534 1,067

1,847 1,033


4,983 187

2,234 2,536

Later than 5 years757

24 12

360 8,274

1,278 4,093

3,929

46. C

ontingent liabilities

U

nder the Contam

inated Sites A

ct 2003, the Housing A

uthority is required to report known and suspected contam

inated sites to the D

epartment of E

nvironment and C

onservation (DE

C). In accordance w

ith the Act, D

EC

classifi es these sites on the basis of the risk to hum

an health, the environment and environm

ental values. Where sites are classifi ed as

contaminated - rem

ediation required or possibly contaminated – investigation required, the H

ousing Authority m

ay have a liability in respect of investigation or rem

ediation expenses. There are three sites that have been identifi ed as ‘Contam

inated - R

emediation R

equired’.

D

uring the year the Housing A

uthority reported one new suspected contam

inated site to DE

C. This site has yet to be

classifi ed. The Housing A

uthority is unable to assess the likely outcome of the classifi cation process, and accordingly, it

is not practicable to estimate the potential fi nancial effect or to identify the uncertainties relating to the am

ount or timing of

any outfl ows. W

hilst there is no possibility of reimbursem

ent of any future expenses that may be incurred in the rem

ediation of this site, the H

ousing Authority m

ay apply for funding from the C

ontaminated S

ites Managem

ent Account to undertake

further investigative work or to m

eet remediation costs that m

ay be required.

Litigation in progress

The Housing A

uthority has been joined in legal actions involving asbestos related illness. The estimated value of these

claims against the H

ousing Authority is $300,000. Liability is being denied and any legal claim

will be defended.

47. Losses to the H

ousing Authority through thefts, defaults or other causes:

The H

ousing Authority, for the year ended 30 June 2011, incurred C

ashiers Shortages totalling $248.00

(June 2010 $13.90) all of which have been funded by the H

ousing Authority.

R

eportable thefts in 2010/2011 was nil (June 2010 nil).

B

ad Debts w

ritten off by the Accountable A

uthority in the year ended 30 June 2011 totalled $5,184,322

(June 2010 $4,531,960).

Bad D

ebts recovered totalled $458,866 (June 2010 $420,597)

48. Gifts of public property

In the year ended 30 June 2011 the H

ousing Authority m

ade no gifts of public property.

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Consolidated

Parent

20112010

20112010

$000$000

$000$000

45. Com

mitm

ents for expenditure (continued)

(c) Lease comm

itments

C

omm

itments in relation to leases contracted for at the end of the reporting period but not recognised in the fi nancial

statements as liabilities are payable as follow

s:

Rental property leases:

Lease com

mitm


Within 1 year

65,939 38,287

65,939 38,287


67,138 42,410

67,138 42,410

Later than 5 years3,075

3,017 3,075

3,017 136,152

83,714 136,152

83,714

Motor vehicle leases:

Lease com

mitm


Within 1 year

1,049 886

1,049 886


453 285

453 285

1,502 1,171

1,502 1,171

Consolidated

Parent

20112010

20112010

$000$000

$000$000

Offi ce property leases:

Lease com

mitm


Within 1 year

2,534 1,067

1,847 1,033


4,983 187

2,234 2,536

Later than 5 years757

24 12

360 8,274

1,278 4,093

3,929

46. C

ontingent liabilities

U

nder the Contam

inated Sites A

ct 2003, the Housing A

uthority is required to report known and suspected contam

inated sites to the D

epartment of E

nvironment and C

onservation (DE

C). In accordance w

ith the Act, D

EC

classifi es these sites on the basis of the risk to hum

an health, the environment and environm

ental values. Where sites are classifi ed as

contaminated - rem

ediation required or possibly contaminated – investigation required, the H

ousing Authority m

ay have a liability in respect of investigation or rem

ediation expenses. There are three sites that have been identifi ed as ‘Contam

inated - R

emediation R

equired’.

D

uring the year the Housing A

uthority reported one new suspected contam

inated site to DE

C. This site has yet to be

classifi ed. The Housing A

uthority is unable to assess the likely outcome of the classifi cation process, and accordingly, it

is not practicable to estimate the potential fi nancial effect or to identify the uncertainties relating to the am

ount or timing of

any outfl ows. W

hilst there is no possibility of reimbursem

ent of any future expenses that may be incurred in the rem

ediation of this site, the H

ousing Authority m

ay apply for funding from the C

ontaminated S

ites Managem

ent Account to undertake

further investigative work or to m

eet remediation costs that m

ay be required.

Litigation in progress

The Housing A

uthority has been joined in legal actions involving asbestos related illness. The estimated value of these

claims against the H

ousing Authority is $300,000. Liability is being denied and any legal claim

will be defended.

47. Losses to the H

ousing Authority through thefts, defaults or other causes:

The H

ousing Authority, for the year ended 30 June 2011, incurred C

ashiers Shortages totalling $248.00

(June 2010 $13.90) all of which have been funded by the H

ousing Authority.

R

eportable thefts in 2010/2011 was nil (June 2010 nil).

B

ad Debts w

ritten off by the Accountable A

uthority in the year ended 30 June 2011 totalled $5,184,322

(June 2010 $4,531,960).

Bad D

ebts recovered totalled $458,866 (June 2010 $420,597)

48. Gifts of public property

In the year ended 30 June 2011 the H

ousing Authority m

ade no gifts of public property.

49. Financial instrument disclosures

Financial instruments held by the C

onsolidated Entity are cash and cash equivalents, short term

deposits, loans to

homebuyers, loans to com

mercial organisations, loans to local and statutory parties, S

tate Nom

inated borrowings,

W

ATC borrow

ings, Com

monw

ealth Advances, rental deposits and tenant bonds.

The carrying amounts of each of the follow

ing categories of fi nancial assets and fi nancial liabilities at the balance sheet

date are as follows:

Consolidated

Parent

20112010

20112010

$000$000

$000$000

(i) Financial Assets


93,553 408,438

86,799 374,146

Short term

deposits270,066

80,000 -

- R

eceivables - preferential shares

- -

3,900,000 3,980,000

- general50,604

14,245 49,895

13,045 - land debtors

60,480 52,757

60,480 52,757

- rent from tenants and other

21,992 18,310

21,992 18,310

- rental and lease bonds19,522

19,511 19,522

19,511 - loans to hom

ebuyers3,928,823

4,124,931 15

33 - loans to com

mercial organisations

139 145

139 145

- loans to local and statutory parties19

19 19

19 Total fi nancial assets

4,445,198 4,718,356

4,138,861 4,457,966

(ii) Financial LiabilitiesB

orrowings

- WATC

4,667,874 4,787,168

4,667,874 4,787,168

- Com

monw

ealth advances 465,880

479,613 465,880

479,613 P

ayables -

- general 35,391

25,160 35,391

25,160 - rental deposits and tenant bonds

14,002 13,171

14,002 13,171

- rental property water consum

ption 2,075

1,931 2,075

1,931 Total fi nancial liabilities

5,185,222 5,307,043

5,185,222 5,307,043

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49. Financial instrument disclosures (continued)

Interest Rate R

isk

The following table represents a sum

mary of the interest rate sensitivity of the C

onsolidated Entity’s fi nancial assets and

liabilities at the end of the reporting period on the profi t for the period and equity for a 1% change in interest rates. It is

assumed that the change in interest rates is held constant throughout the reporting period.

The C

onsolidated Entity’s exposure to m

arket interest rates relates primarily to the C

onsolidated Entity’s long term

debt obligations.

C

ON

SOLID

ATED

Interest rate risk

-1%+1%

2011 C

arrying am

ount $000

Profi t

$000 E

quity $000

Profi t

$000 E

quity $000



93,553 (936)

(936)936

936 S

hort term deposits

270,066 (2,701)

(2,701)2,701

2,701 Loans to hom

ebuyers 3,933,532

(39,335)(39,335)

39,335 39,335

(refer to note 2 (ab))


orrowings

- WATC

fl oating 3,485,000

34,850 34,850

(34,850)(34,850)

- WATC

fi xed * 1,182,874

- -

- -

- Com

monw

ealth advances * 465,880

- -

- -

Total Increase/(Decrease)

5,133,754 (8,122)

(8,122)8,122

8,122

Interest rate risk

-1%+1%

2010 C

arrying am

ount $000

Profi t

$000 E

quity $000

Profi t

$000 E

quity $000



408,438 (4,084)

(4,084)4,084

4,084 S

hort term deposits

80,000 (800)

(800)800

800 Loans to hom

ebuyers 4,127,530

(41,275)(41,275)

41,275 41,275

(refer to note 2 (ab)) Interest rate caps (notional principal

13(130)

(130)130

130 am

ount)


orrowings

- WATC

fl oating 3,050,000

30,500 30,500

(30,500)(30,500)

- WATC

fi xed * 1,737,167

- -

- -

- Com

monw


- -

- -


5,266,780 (15,789)

(15,789)15,789

15,789

* C

omm

onwealth A

dvances and WATC

(fi xed) are fi xed interest loans that are not affected by interest rates.

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Interest Rate R

isk

The following table represents a sum

mary of the interest rate sensitivity of the C

onsolidated Entity’s fi nancial assets and

liabilities at the end of the reporting period on the profi t for the period and equity for a 1% change in interest rates. It is

assumed that the change in interest rates is held constant throughout the reporting period.

The C

onsolidated Entity’s exposure to m

arket interest rates relates primarily to the C

onsolidated Entity’s long term

debt obligations.

C

ON

SOLID

ATED

Interest rate risk

-1%+1%

2011 C

arrying am

ount $000

Profi t

$000 E

quity $000

Profi t

$000 E

quity $000



93,553 (936)

(936)936

936 S

hort term deposits

270,066 (2,701)

(2,701)2,701

2,701 Loans to hom

ebuyers 3,933,532

(39,335)(39,335)

39,335 39,335

(refer to note 2 (ab))


orrowings

- WATC

fl oating 3,485,000

34,850 34,850

(34,850)(34,850)

- WATC

fi xed * 1,182,874

- -

- -

- Com

monw


- -

- -


5,133,754 (8,122)

(8,122)8,122

8,122

Interest rate risk

-1%+1%

2010 C

arrying am

ount $000

Profi t

$000 E

quity $000

Profi t

$000 E

quity $000



408,438 (4,084)

(4,084)4,084

4,084 S

hort term deposits

80,000 (800)

(800)800

800 Loans to hom

ebuyers 4,127,530

(41,275)(41,275)

41,275 41,275

(refer to note 2 (ab)) Interest rate caps (notional principal

13(130)

(130)130

130 am

ount)


orrowings

- WATC

fl oating 3,050,000

30,500 30,500

(30,500)(30,500)

- WATC

fi xed * 1,737,167

- -

- -

- Com

monw


- -

- -


5,266,780 (15,789)

(15,789)15,789

15,789

* C

omm

onwealth A

dvances and WATC



Parent

Interest rate risk-1%

+1% 2011

Carrying

amount

$000

Profi t

$000 E

quity $000

Profi t

$000 E

quity $000



86,799 (867)

(867)867

867 P

referential shares 3,900,000

(39,000)(39,000)

39,000 39,000

(ii) Financial Liabilities

Borrow

ings - W

ATC fl oating

3,485,000 34,850

34,850 (34,850)

(34,850) - W

ATC fi xed *

1,182,874 -

- -

- - C

omm

onwealth advances *

465,880 -

- -

-Total Increase/(D

ecrease)5,133,754

(5,017)(5,017)

5,017 5,017

Interest rate risk-1%

+1% 2010

Carrying

amount

$000

Profi t

$000 E

quity $000

Profi t

$000 E

quity $000



374,146 (3,741)

(3,741)3,741

3,741 P

referential shares 3,980,000

(39,800)(39,800)

39,800 39,800


orrowings

- WATC

fl oating 3,050,000

30,500 30,500

(30,500)(30,500)

- WATC

fi xed * 1,737,167

- -

--

- Com

monw


- -

--


5,266,780 (13,041)

(13,041)13,041

13,041

* C

omm

onwealth A

dvances and WATC


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Liquidity risk analysis

CONSOLIDATED Contractual Maturity DatesWeightedAverageEffective

Interest Rate

InterestBearing

Non-InterestBearing

Within 1 year 1 - 2 years 2 - 3 years 3 - 4 years 4 - 5 years More than 5 years

Adjustmentfor

discounting

Totalcarrying amount

2011 % $000 $000 $000 $000 $000 $000 $000 $000 $000 $000


Borrowings - WATC 4.96% 4,667,874 - 1,357,726 2,885,234 878,318 933,054 444,099 2,344,802 4,175,359 4,667,874 - Commonwealth advances 4.54% 465,880 - 34,915 34,632 34,355 34,074 33,763 601,508 307,367 465,880 Payables- general * - 35,391 35,391 - - - - - - 35,391 - rental deposits and tenant bonds ** *** - 14,002 14,002 - - - - - - 14,002

- rental property water consumption *** - 2,075 2,075 - - - - - - 2,075

Total fi nancial liabilities *** 5,133,754 51,468 1,444,109 2,919,866 912,673 967,128 477,862 2,946,310 4,482,726 5,185,222

2010


Borrowings - WATC 4.16% 4,787,168 - 3,016,785 1,328,148 1,025,193 516,912 162,921 4,025,709 5,288,500 4,787,168 - Commonwealth advances 4.53% 479,613 - 35,177 34,902 34,620 34,342 34,060 635,613 329,101 479,613 Payables- general * *** - 25,160 25,160 - - - - - - 25,160 - rental deposits and tenant bonds ** *** - 13,171 13,171 - - - - - - 13,171 - rental property water consumption *** - 1,931 1,931 - - - - - - 1,931 Total fi nancial liabilities 5,266,781 40,262 3,092,224 1,363,050 1,059,813 551,254 196,981 4,661,322 5,617,601 5,307,043

* Payables general includes an amount of $322,394 (2010 $72,108) for estate improvements. These funds are committed to various groups across the state. The repayment 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 necessary the amount that will be repaid upon vacation as this money can be offset against any outstanding rental payments or other payments that are outstanding. *** Not applicable for non-interest bearing fi nancial instruments.


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Liquidity risk analysis

CONSOLIDATED Contractual Maturity DatesWeightedAverageEffective

Interest Rate

InterestBearing

Non-InterestBearing


Adjustmentfor

discounting


2011 % $000 $000 $000 $000 $000 $000 $000 $000 $000 $000


Borrowings - WATC 4.96% 4,667,874 - 1,357,726 2,885,234 878,318 933,054 444,099 2,344,802 4,175,359 4,667,874 - Commonwealth advances 4.54% 465,880 - 34,915 34,632 34,355 34,074 33,763 601,508 307,367 465,880 Payables- general * - 35,391 35,391 - - - - - - 35,391 - rental deposits and tenant bonds ** *** - 14,002 14,002 - - - - - - 14,002

- rental property water consumption *** - 2,075 2,075 - - - - - - 2,075

Total fi nancial liabilities *** 5,133,754 51,468 1,444,109 2,919,866 912,673 967,128 477,862 2,946,310 4,482,726 5,185,222

2010


Borrowings - WATC 4.16% 4,787,168 - 3,016,785 1,328,148 1,025,193 516,912 162,921 4,025,709 5,288,500 4,787,168 - Commonwealth advances 4.53% 479,613 - 35,177 34,902 34,620 34,342 34,060 635,613 329,101 479,613 Payables- general * *** - 25,160 25,160 - - - - - - 25,160 - rental deposits and tenant bonds ** *** - 13,171 13,171 - - - - - - 13,171 - rental property water consumption *** - 1,931 1,931 - - - - - - 1,931 Total fi nancial liabilities 5,266,781 40,262 3,092,224 1,363,050 1,059,813 551,254 196,981 4,661,322 5,617,601 5,307,043


49. Financial instrument disclosures (continued)PARENT Contractual Maturity Dates

Weighted Average Effective Interest

Rate

Interest Bearing

Non-Interest Bearing


Adjustmentfor discounting


2011 % $000 $000 $000 $000 $000 $000 $000 $000 $000 $000


Borrowings

- WATC 4.96% 4,667,874 - 1,357,726 2,885,234 878,318 933,054 444,099 2,344,802 4,175,359 4,667,874 - Commonwealth advances 4.54% 465,880 - 34,915 34,632 34,355 34,074 33,763 601,508 307,367 465,880 Payables- general * *** - 35,391 35,391 - - - - - - 35,391 - rental deposits and tenant bonds ** *** - 14,002 14,002 - - - - - - 14,002 - rental property water consumption *** - 2,075 2,075 - - - - - - 2,075 Total fi nancial liabilities 5,133,754 51,468 1,444,109 2,919,866 912,673 967,128 477,862 2,946,310 4,482,726 5,185,222

2010


Borrowings - WATC 4.16% 4,787,168 3,016,785 1,328,148 1,025,193 516,912 162,921 4,025,709 5,288,500 4,787,168 - Commonwealth advances 4.53% 479,613 35,177 34,902 34,620 34,342 34,060 635,613 329,101 479,613 Payables- general * *** - 25,160 25,160 - - - - - - 25,160 - rental deposits and tenant bonds ** *** - 13,171 13,171 - - - - - - 13,171 - rental property water consumption *** - 1,931 1,931 - - - - - - 1,931

Total fi nancial liabilities 5,266,781 40,262 3,092,224 1,363,050 1,059,813 551,254 196,981 4,661,322 5,617,601 5,307,043



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50(a). CO

MPA

RISO

NS O

F ESTIMATES 2010/2011 A

ND

AC

TUA

L OPER

ATING

RESU

LTS FOR

2010/11

Section 40 of the Financial Managem

ent Act 2006 requires The Housing Authority to prepare annual budget estim

ates. Treasurer’s Instruction 945 requires an explanation of signifi cant variations betw

een these estimates and actual results.

Signifi cant variations are considered to be those greater/less than $10,000,000 or 10% greater/less than the budgeted am

ount.

Budget

Actual

Variation$000

$000$000

1. Revenues have varied by the follow

ing:

Sales

Sales revenue cam

e in under the original budget of $207.21 m

illion by 15.90%. There has been a softening

of buyer interest in the land market during 2010-11 due to

uncertainty of interest rate movem

ents and less demand for

land in some country areas.The access to affordable land

developed by the Authority is available w

hen buyer activity in the m

arket again escalates.

207,216 174,254

(32,962)

R

ental Revenue

The variance of $30.42 million is prim

arily attributable to an increase in G

RO

H rents due to an escalation in the

number of properties required to m

eet demand for housing

government w

orkers in remote and regional areas. This in

combination w

ith increased lease costs for accomm

odation in the N

orth-west of the state has led to the budget for R

ent R

evenue being exceeded.

321,628 352,057

30,429

Interest R

evenueThe variance for Interest R

evenue refl ects the slowing of

Keystart loans issued to home buyers over the past tw

elve m

onths as a consequence of a softening of buyer activity in the real estate m

arket. Keystart sources its loan funds from

Western Australian Treasury C

orporation (WATC

) and passes on variations of cost of funds on to its hom

e loan clients. Partially offsetting this, due to the Authority’s cash at bank exceeding initial forecasts, interest earned w

as $1.28 million

above initial expectations.

191,721 206,815

15,094

O

ther Revenues

The variance of $18.97 million is due m

ainly to the Keystart

dividend declared for 2009-2010 being brought to account in 2010-11. P

artly offsetting this, developers contributions for C

omm

unity Housing did not m

eet the original forecast as contributions by this sector w

as not cash alone and in some

instances contributions of equity in projects included land. A

lso Other Incom

e did not meet budget as G

ST refunds

forecast from previous years land sales did not occur.

44,875 63,845

18,970

Loss on D

isposal of Non-C

urrent Assets

The over budget position of $7.66 million is prim

arily due to the cost of properties dem

olished exceeding budget and the value of the proceeds from

sale of rental properties held for sale not m

eeting forecast profi t levels due to a realignment

down of property values across the state during 2010-11.

791 8,453

7,662

2. Expenses have varied by the follow

ing:

New

LivingN

ew Living expenditure is under its original forecast due to

actual costs for a New

North com

plex of units being less than forecast. D

ue to the demand for rental properties in

South H

edland, South K

algoorlie and Moora, access to

properties for the program has slow

ed resulting in budget not being m

et. In addition, due to delays in approvals, works

will not com

mence until next fi nancial year in G

eraldton.

37,746 28,381

(9,365)

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50(a). CO

MPA

RISO

NS O


ND

AC

TUA

L OPER

ATING

RESU

LTS FOR

2010/11

Section 40 of the Financial Managem

ent Act 2006 requires The Housing Authority to prepare annual budget estim

ates. Treasurer’s Instruction 945 requires an explanation of signifi cant variations betw

een these estimates and actual results.

Signifi cant variations are considered to be those greater/less than $10,000,000 or 10% greater/less than the budgeted am

ount.

Budget

Actual

Variation$000

$000$000

1. Revenues have varied by the follow

ing:

Sales

Sales revenue cam

e in under the original budget of $207.21 m

illion by 15.90%. There has been a softening

of buyer interest in the land market during 2010-11 due to

uncertainty of interest rate movem

ents and less demand for

land in some country areas.The access to affordable land

developed by the Authority is available w

hen buyer activity in the m

arket again escalates.

207,216 174,254

(32,962)

R

ental Revenue

The variance of $30.42 million is prim

arily attributable to an increase in G

RO

H rents due to an escalation in the

number of properties required to m

eet demand for housing

government w

orkers in remote and regional areas. This in

combination w

ith increased lease costs for accomm

odation in the N

orth-west of the state has led to the budget for R

ent R

evenue being exceeded.

321,628 352,057

30,429

Interest R

evenueThe variance for Interest R

evenue refl ects the slowing of

Keystart loans issued to home buyers over the past tw

elve m

onths as a consequence of a softening of buyer activity in the real estate m

arket. Keystart sources its loan funds from

Western Australian Treasury C

orporation (WATC

) and passes on variations of cost of funds on to its hom

e loan clients. Partially offsetting this, due to the Authority’s cash at bank exceeding initial forecasts, interest earned w

as $1.28 million

above initial expectations.

191,721 206,815

15,094

O

ther Revenues

The variance of $18.97 million is due m

ainly to the Keystart

dividend declared for 2009-2010 being brought to account in 2010-11. P

artly offsetting this, developers contributions for C

omm

unity Housing did not m

eet the original forecast as contributions by this sector w

as not cash alone and in some

instances contributions of equity in projects included land. A

lso Other Incom

e did not meet budget as G

ST refunds

forecast from previous years land sales did not occur.

44,875 63,845

18,970

Loss on D

isposal of Non-C

urrent Assets

The over budget position of $7.66 million is prim

arily due to the cost of properties dem

olished exceeding budget and the value of the proceeds from

sale of rental properties held for sale not m

eeting forecast profi t levels due to a realignment

down of property values across the state during 2010-11.

791 8,453

7,662


ing:

New

LivingN

ew Living expenditure is under its original forecast due to

actual costs for a New

North com

plex of units being less than forecast. D

ue to the demand for rental properties in

South H

edland, South K

algoorlie and Moora, access to

properties for the program has slow

ed resulting in budget not being m

et. In addition, due to delays in approvals, works

will not com

mence until next fi nancial year in G

eraldton.

37,746 28,381

(9,365)

50(a). CO

MPA

RISO

NS O


ND

AC

TUA

L OPER

ATING

RESU

LTS FOR

2010/2011 (continued)

Budget

Actual

Variation$000

$000$000

Com

munity S

upportC

omm

unity support expenditure is under budget $22.79 m

illion due to the State C

omm

unity Housing Investm

ent P

rogram $41.61 m

illion initially being treated as recurrent expenditure. This is now

capital expenditure.Partly offsetting

this, expenditure on remote indigenous housing exceeded

budget by $17.26 million due to the W

armun R

ecovery project (as a consequence of the severe fl ooding in that region). In addition, the Indigenous H

ousing Managem

ent S

ervice Agreem

ent program perform

ed ahead of expectations.

187,340 164,544

(22,796)

Supplies and S

ervicesThe variance is m

ostly the result of increased expenditure for tem

porary personnel expenses to source and meet

targets for the delivery of construction and refurbishment

for the remote Indigenous housing program

. Also additional

technical and specialist services have been engaged to facilitate the progressive change in business activities in the A

uthority.

27,944 40,011

12,067

Accom

modation E

xpenseE

xpenses exceeded budget during the year due to increased costs in leasing and increased m

aintenance of the A

uthority’s offi ces.

5,556 6,597

1,041

G

rants and Subsidies

This variance is primarily the result of funding for an

affordable housing project in the Perth inner city that

occurred subsequent to original budget forecast.

2,133 3,074

941

Other E

xpensesO

ther Expenses signifi cant change is the Asset Transfer to C

omm

unity Housing O

rganisations of $270 million not

originally budgeted for. The transfer of stock to grow the

comm

unity housing sector was a key requirem

ent of the C

omm

onwealth Econom

ic Stimulus funding to the state.

32,041 303,630

271,589

3. G

rants and subsidies from S

tate Governm

ent have varied by the following:

The variance of $13.54 m

illion is the result of $12.80 million

funding from the D

epartment of D

isability Services that w

as not part of the original budget forecasts. A

lso a $0.48 million

Royalties for R

egions payment w

as made for a R

egional W

orkers Incentive program that w

as not budgeted for.

20,876 34,418

13,542

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50(b). CO

MPA

RISO

NS O

F AC

TUA

L OPER

ATING

RESU

LTS FOR

2010/2011 WITH

THO

SE OF TH

E PREC

EDIN

G YEA

R

D

etails and reasons for signifi cant variations between actual operating results for 2010/2011 and the preceding year are

detailed below. S

ignifi cant variations are considered to be those greater/less than $10,000,000 or 10% greater/less than the

actual amount for the preceding year.

Actual2011$000

Actual2010$000

Variation

$0001. R

evenues have varied by the following:

Sales revenue has decreased by $70.457 million. There has

been a softening of buyer interest in the land market during

the year due to uncertainty of interest rate movem

ents.

174,254 244,711

(70,457)

Rental revenue has increased by $30.869 m

illion prim

arily due to an increase in the number of

Governm

ent Regional O

ffi cers Housing properties

required to meet the dem

and for housing government

workers in rem

ote and regional areas.

352,056 321,187

30,869

Com

monw

ealth grants and contributions has decreased by $97.844 m

illion. Funding under the National P

artnership A

greement for rem

ote indigenous comm

unities reduced by $83 m

illion in 2010/2011. Funding by the Com

monw

ealth N

ational Partnership agreem

ent had a reduction in funding of $22.244 m

illion in 2010/2011.

198,692 296,536

(97,844)

Interest revenue has increased by $58.791 m

illion. This is predom

inately due to an increase in the interest rates on preference shares w

hich is linked to an increase in rates of W

ATC borrow

ings for Keystart.

206,815 148,024

58,791

Other revenue has increased by $49.722 m

illion due to the declaration of the dividend from

Keystart from

the 2009/2010 fi nancial year of $53.470 m

illion.

60,77511,053

49,722


ing:

Cost of sales has decreased by $26.454 m

illion due to the softening of buyer interest in the land m

arket during the year due to the uncertainty of interest rate m

ovements.

117,253 143,707

(26,454)

Rental expenses has decreased by $27.070 m

illion

predominately due to the cessation of m

aintenance

expenses for the Com

monw

ealth Stim

ulus Package

to preserve assets of the Housing A

uthority ($34.789 m

illion in 2009/2010).

275,122 302,192

(27,070)

New

Living expenses has decreased by $11.448 m

illion due to the demand for rental properties in S

outh H

edland, Kalgoorlie and M

oora, access to the properties for the program

has slowed. In addition, due to the

delays in approvals, works w

ill not comm

ence until next fi nancial year in G

eraldton, Mt Lockyer, Frem

antle N

ortham and K

atanning.

28,381 39,829

(11,448)

Com

munity support expenses has increased by $33.803

million as a result of the N

ational Partnership A

greement

which includes increased spending for the developm

ent of Indigenous rem

ote comm

unities. The Departm

ent has met

the targets in the agreement and the expenditure on the

Warm

un recovery project.

164,544 130,741

33,803

50(b). CO

MPA

RISO

NS O

F AC

TUA

L OPER

ATING

RESU

LTS FOR

2010/2011 WITH

THO

SE OF TH

E PREC

EDIN

G YEA

R

(continued)

Actual2011$000

Actual2010$000

Variation

$000

Em

ployee benefi ts expense has increased by $16.570 m

illion. This is due to an increase in the number of

employees and a pay increase of 4%

in April. A

lso a reduction in the capitalisation of adm

inistration due to few

er construction contracts comm

encing in the year.

83,825 67,255

16,570

S

upplies and services expense has increased by $12.948 m

illion. This is due to an increase in the paym

ent of contract employees of $2.689 m

illion, an increase of $6.781 m

illion in consultants and technical specialists, an increase in com

munications

and computing expenses of $0.836 m

illion, also an increase in the purchase of com

puting assets under $5000 of $1.029 m

illion.

40,011 27,063

12,948

Finance costs have increased by $66.188 m

illion due to an increase in borrow

ings from W

estern A

ustralian Treasury Corporation for K

eystart home

loans of $58.922 million and $6.551 m

illion for FirstS

tart loan portfolio.

257,048 190,860

66,188

Loss on sale of non-current assets has decreased

by $10.684 m

illion due to a decrease in the number

of properties sold and a reduction in the number of

properties demolished.

8,453 19,137

(10,684)

Other expenses have increased by $272.619 m

illion predom

inately due to the transfer of properties to the C

omm

unity Housing S

ector under the Com

monw

ealth S

timulus program

of $270.957 million.

306,704 34,085

272,619

3. Grants and subsidies from

State G

overnment have varied by the follow

ing:

S

tate grants have decreased by $82.622 million due

to the following reasons. In the 2009/2010 fi nancial

year, the Departm

ent received an additional $20.244 m

illion for recurrent funding from the C

omm

onwealth

National P

artnership program. The S

tate also reduced the A

uthorities appropriations by $53.47 m


34,418 117,040

(82,622)

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50(b). CO

MPA

RISO

NS O

F AC

TUA

L OPER

ATING

RESU

LTS FOR

2010/2011 WITH

THO

SE OF TH

E PREC

EDIN

G YEA

R

(continued)

Actual2011$000

Actual2010$000

Variation

$000

Em

ployee benefi ts expense has increased by $16.570 m

illion. This is due to an increase in the number of

employees and a pay increase of 4%

in April. A

lso a reduction in the capitalisation of adm

inistration due to few

er construction contracts comm

encing in the year.

83,825 67,255

16,570

S

upplies and services expense has increased by $12.948 m

illion. This is due to an increase in the paym

ent of contract employees of $2.689 m

illion, an increase of $6.781 m

illion in consultants and technical specialists, an increase in com

munications

and computing expenses of $0.836 m

illion, also an increase in the purchase of com

puting assets under $5000 of $1.029 m

illion.

40,011 27,063

12,948

Finance costs have increased by $66.188 m

illion due to an increase in borrow

ings from W

estern A

ustralian Treasury Corporation for K

eystart home

loans of $58.922 million and $6.551 m

illion for FirstS

tart loan portfolio.

257,048 190,860

66,188

Loss on sale of non-current assets has decreased

by $10.684 m

illion due to a decrease in the number

of properties sold and a reduction in the number of

properties demolished.

8,453 19,137

(10,684)

Other expenses have increased by $272.619 m

illion predom

inately due to the transfer of properties to the C

omm

unity Housing S

ector under the Com

monw

ealth S

timulus program

of $270.957 million.

306,704 34,085

272,619

3. Grants and subsidies from

State G

overnment have varied by the follow

ing:

S

tate grants have decreased by $82.622 million due

to the following reasons. In the 2009/2010 fi nancial

year, the Departm

ent received an additional $20.244 m

illion for recurrent funding from the C

omm

onwealth

National P

artnership program. The S

tate also reduced the A

uthorities appropriations by $53.47 m


34,418 117,040

(82,622)

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Certification of key perform

ance indicators

I hereby certify that the key performance indicators are based on proper records, are relevant

and appropriate for assisting users to assess the performance of the H

ousing Authority, and

fairly represent the performance of the H

ousing Authority and its subsidiary for the financial

year ended 30 June 2011.

GR

AH

AM

E S

EA

RLE

CH

IEF E

XE

CU

TIVE

OFFIC

ER

AC

CO

UN

TAB

LE A

UTH

OR

ITY

31 August 2011

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Key perform

ance indicatorsO

utcome: H

ousing eligible Western A

ustralians

The Authority prim

arily contributes to the following governm

ent goal:

zz

Goal 3: R

esults-Based S

ervice Delivery–greater focus on achieving results in key service

delivery areas for the benefit of all Western A

ustralians.

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 w

ider context, affordable, safe and secure housing assists in contributing to positive social outcom

es in health, education and em

ployment. The Authority contributes to G

oal 3, by providing housing through its rental housing, hom

e finance and land activities for eligible Western Australians w

ho may not

otherwise be able to obtain housing. Through the provision of G

overnment R

egional Officers

Housing (G

RO

H), the Authority also provides governm

ent employees w

ith suitable and appropriate housing in regional and rem

ote areas to support the delivery of public services such as education and policing.

Eligibility for public rental housing and hom

e loans is determined by assessable incom

e limits

and other eligibility criteria. The opportunity to purchase Authority land, priced in the low

-to-m

edium price bracket, is available to all W

estern Australians. In addition, the A

uthority 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 w

aiting list for public housing by offering low

-to-moderate incom

e earners the opportunity to purchase their own hom

e, either through the purchase of a low

-to-medium

priced housing lot or through a home loan.

The Authority also offers a bond loan to incom

e-eligible applicants to enter the private rental m

arket.

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Effectiveness indicator 1The extent to w

hich the Housing A

uthority is responsive to the housing needs of eligible W

estern Australians

This indicator measures the Authority’s capacity to respond to dem

and as expressed by the w

aiting list for public rental housing. The ratio of the total number of units of housing assistance

provided each year, to the number on the w

aiting list at 30 June of the previous year, is an indicator of the Authority’s capacity to respond to expressed dem

and for housing assistance from

eligible Western Australians. The higher the ratio, the greater the assistances provided.

Ratio of the num

ber of units of housing assistance per annumto the num

ber on the waiting list at the start of the reporting period

1.601.501.401.301.201.101.000.900.800.700.600.50

2006–072007–08

2008–092009–10

2010–11

Ratio

Target

Ratio

Actual

Target2006–07

2007–082008–09

2009–102010–11

2010–11Total housing assistances *

14,99116,382

19,43122,378

16,55519,554

Public rental w

aiting list at June previous financial year

13,78015,438

16,93221,728

24,13624,559

Ratio

1.091.06

1.151.03

0.690.80

* For 2010–11, the total units of housing assistance comprised:

– num

ber of bond assistance loans approved

11,446

– num

ber of home loans approved (new

and increased*) #1

526

– number of public rental occupations

3,317

– num

ber of people (applications) allocated from the w

aiting list into comm

unity housing options 920

– num

ber of Housing A

uthority (including Joint Venture partner) land sales below ($172,000) #2

346

#1 From 2010–11 increased loans are only provided to clients to buy additional equity.

#2 The benchmark cut-off for the low

er end of the market ($172,000 low

er quartile) is derived from the R

eal Estate

Institute of Western A

ustralia’s Market U

pdate Report (M

arch Quarter 2011), w

hich contains the final Decem

ber Q

uarter 2010 lower quartile. The report provides the low

er quartile for Western A

ustralia (State) residential land

sales. (2006–07=$169,000; 2007–08=$195,000; 2008–09=$175,000; 2009–10=$161,000).

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The ratio 0.69 was low

er than the target of 0.80. There was a decrease in num

ber of housing assistances in 2010–11 com

pared to the target. This was due to:

zz

Keystart m

ore than doubling the value of its loan portfolio from $1.09 billion to $4.1 billion

in the two previous financial years to assist borrow

ers during the severe credit tightening caused by the global financial crisis. S

uch a record level of activity significantly brought forw

ard Keystart’s 100%

loan product’s future demand and this resulted in the decrease in

the number of K

eystart loans approved in 2010–11 zz

overestimating the target of the num

ber of public rental occupationszz

setting the original budget target for bond assistance loans on the assumption that grow

th in dem

and for bonds would continue along the sam

e pattern of the three previous years, but this did not occur. The low

er than expected figures can be attributed to the tightening of the rental m

arket. The vacancy rate declined for five consecutive quarters from a rate of

4.6 percent registered in the March 2010 quarter to 3.4 percent in the June 2011 quarter

zz

lower quartile residential land sales less than both the original budget target and the

previous year mainly due to few

er overall land sales compared to the target and previous

year.

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Waiting tim

es for accomm

odation–applicants housedaverage and m

edian in weeks

Weeks

120110100908070605040302010

2006–072007–08

2008–092009–10

2010–11

Average M

edian Target average Target median

Average83

8391

93113

Median

5553

6372

91

Target average103

Target median

86

Effectiveness indicator 2W

aiting times for accom

modation – applicants housed

The waiting tim

e for accomm

odation measures the extent to w

hich the provision of public rental housing is responding to the needs of eligible rental applicants. It dem

onstrates the Authority’s capacity to respond to dem

and on the waiting list. The greater the capacity to m

eet demand, the

shorter the waiting tim

e. Waiting tim

e is defined as the difference between the tim

e when the

customer w

as listed on the waiting list and w

hen they were housed. The w

aiting times include

properties that are head leased to comm

unity housing providers.

The graph below show

s the waiting tim

es of all applicants housed during the year in terms of

average and median.

The table below breaks these figures dow

n to show how

quickly people are housed.

*An increase in the allocation of housing to com

munity housing providers (head leases) w

here the wait tim

es are negligible

has impacted upon the category for w

ithin one month.

The average and median w

ait times w

ere both above the target for 2010–11 and above the previous year. They have both been im

pacted by the decrease in the percentage housed in the less than one m

onth category and an increase in the 3–5 years and 5+ years categories. This resulted in the percentage housed over one year to increase to 63.85 per cent. There have been m

ore long-term applicants housed during the year.

Distribution of w

aiting times

2006–07 (%)

2007–08 (%)

2008–09 (%)

2009–10 (%)

2010–11 (%)

< 1 month

14.0612.65

17.22*21.38*

14.08

1–12 months

34.8536.53

26.8220.90

22.07

1–3 years30.58

31.2034.44

35.1434.34

3–5 years17.34

15.6815.28

15.5219.11

5+ years3.17

3.936.24

7.0710.40

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Effectiveness Indicator 3The extent to w

hich the Governm

ent Regional O

fficers Housing is responsive to the

provision of housing to meet the needs of eligible W

estern Australian governm

ent em

ployees

This indicator measures the capacity to provide accom

modation in response to requests

from governm

ent departments. This is calculated as a percentage of supply divided by

demand. S

upply is represented by the number of properties allocated to departm

ents at the end of the financial year. D

emand is calculated by the num

ber of additional accomm

odation requests from

departments throughout the year plus the num

ber of properties allocated to departm

ents at the end of the previous financial year.

Total demand and current supply

Supply ratio (%)

1008060

2006–072007–08

2008–092009–10

2010–11

2010–11 Target Ratio

Dem

and and supply

Actual

Target

2006–072007–08

2008–092009–10

2010–112010–11

Dem

and4,709

5,0425,225

5,2275,332

Supply4,392

4,6964,902

4,9445,099

Ratio

93%93%

94%95%

96%95%

In 2010-11, the Authority continued its efforts to im

prove the quality and supply of governm

ent employee housing across the S

tate and exceeded the target of a 95 per cent ratio of supply to dem

and.

Dem

and for additional accomm

odation remained relatively steady from

the previous year, w

hile the Authority provided a net increase of 155 allocated units.

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Efficiency indicators:The A

uthority provides four major services: rental housing, hom

e loans, residentialland and governm

ent regional officers housing (GR

OH

).

Service 1: Rental H

ousingThis service contributes to the A

uthority’s outcome by providing eligible W

estern Australians

with:

zz

public rental housing and State-ow

ned Indigenous public housingzz

comm

unity housing managed properties: rental properties m

anaged by not-for-profit housing com

panies, comm

unity organisations, housing associations and local governm

ents through our joint venture and comm

unity housing and crisis accomm

odation program

szz

properties built for Indigenous comm

unities.

Efficiency indicator 1O

perating cost per rental property

The 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) of the Authority by the total num

ber of rental properties.

The total operating cost of the rental service consists of:

zz

administration costs (em

ployee benefits, supplies and services, and accomm

odation)zz

comm

unity support (includes the repair and maintenance of infrastructure, as w

ell as pow

er, water and w

astewater in Indigenous com

munities and tow

n reserves, which cannot

be directly attributed to a property)zz

depreciation and amortisation

zz

finance costszz

New

Living program (refurbishm

ent of public housing in high density areas)zz

rental expenseszz

other expenses.

Expenses relating to com

munity housing m

anaged properties are borne byboth the A

uthority and the comm

unity housing organisations.

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Operating cost per rental property (nom

inal and real)

13,000 12,500 12,000 11,500 11,000 10,500 10,000

9,500 9,000 8,500 8,000 7,500 7,000 6,500 6,000 5,500 5,000 4,500

2006–072007–08

2008–092009–10

2010–11

2010–11 Nom

inal cost target$11,535

Nom

inal rental cost*$8,959

$9,853$11,624

$12,505$12,539

Real rental cost**

$8,959$9,512

$10,891$11,429

$11,140

*Nom

inal refers to the face value of the money.

**Real refers to the value of m

oney adjusted for inflation (Consum

er Price Index – A

ll Groups P

erth): the cost per rental property has been adjusted to 2006–07prices.A

n adjustment has been m

ade to the 2006–07 nominal rental cost figure because of a change in the accounting

treatment of fixed assets. P

reviously fixed assets with a value over $1,000 w

ere capitalised. This threshold has been increased to $5,000. Therefore any assets purchased betw

een $1,000 and $5,000 are now expensed. The expenses

have been adjusted.

The operating cost per rental property was $12,539 in 2010–11, $1,004 above the

original budget target of $11,535. The target included the properties to be asset transferred to the com

munity housing organisations to grow

the comm

unity housing sector (a key requirem

ent of Com

monw

ealth Econom

ic Stim

ulus funding) while the

2010–11 result excludes these properties. The treatment of the asset transfers w

as not determ

ined at the time of budget preparation. P

redicted stock numbers not m

eet-ing the original forecast also contributed to the variance. S

upplies and services and em

ployee benefits expense were also higher than originally budgeted.

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Service 2: Hom

e Loans

This service contributes to the A

uthority’s outcome by providing hom

e ownership schem

es for eligible applicants.


perating cost per current loan account

The cost per current loan account measures the cost efficiency in hom

e ownership products

and services. It is calculated by dividing the total cost of the service (total expenses) by the total num

ber of loans (Keystart and other loan products).

The total operating cost of the home loans service consists of:

zz


ployee benefits, supplies and services and accomm

odation)zz

comm

unity supportzz


zz

rental expenses andzz

other expenses.

Keystart finance costs for loan advances to clients are excluded, as borrow

ing costs are incurred and borne by clients and therefore do not relate to the resources in approving and processing loan applications and m

anaging loan accounts.

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*Nom





ll Groups P

erth): the cost per loan has been adjusted to 2006–07 prices.

An adjustm

ent has been made to the 2006–07 nom

inal loan cost figure because of a change in the accounting treatment of

fixed assets. Previously fixed assets w

ith a value over $1,000 were capitalised. This threshold has been increased to $5,000.

Therefore any assets purchased between $1,000 and $5,000 are now

expensed. The loan expenses have been adjusted.

The operating cost per current loan account for the 2010–11 financial year was $1,575, w

hich w

as $592 below the original budget target of $2,167. The 2010–11 original budget target is

higher due in part to the inclusion of loan origination fees, which are not included in the result.

The cost of loan administration has also reduced from

the 2010–11 original budget target due to the transfer of the H

ousing Authority’s hom

e loan business to Keystart.

The operating cost increased from $1,330 in 2009–10 to $1,575 in 2010–11 w

hich was in part

due to a decrease in the number of current active loans in 2010–11, and an increase in other

expenses mainly relating to the provision for bad and doubtful debts.

The decrease in the number of current active loans w

as due to the private financial institutions re-entering the loan m

arket with incentive discounted rates and encouraging Keystart borrow

ers to discharge. This fits w

ith Keystart’s transitional role. The provisioning for doubtful debts was

increased to reflect the seasoning of the two previous financial years’ large lending volum

es.

Operating cost per current loan account (nom

inal and real)

2,500 2,250 2,000 1,750 1,500 1,250 1,000

750 500 250 0

2006–072007–08

2008–092009–10

2010–11

2010–11 Nom


Nom

inal loan cost *$1,361

$1,476$1,520

$1,330$1,575

Real loan cost **

$1,361$1,425

$1,424$1,216

$1,399

156H


nnual Report | w

ww

.housing.wa.gov.au

Service 3: LandThis service contributes to the A

uthority’s outcome by providing housing lots.


perating cost per lot developed

This indicator measures the efficiency of the land service. It is calculated by dividing the total

cost of the service (total expenses) by the number of lots developed for sale.

The total operating cost of the land service consists of:

zz


ployee benefits, supplies and services and accomm

odation)zz


zz

finance costszz

rental expenseszz

other expenses.

*Nom





ll Groups P

erth): the cost per lot developed has been adjusted to 2006–07 prices.A

n adjustment has been m

ade to the 2006–07 Nom

inal Land Cost figure because of a change in the accounting treatm

ent of fixed assets. P

reviously fixed assets with a value over $1,000 w

ere capitalised. This threshold has been increased to $5,000. Therefore any assets purchased betw

een $1,000 and $5,000 are now expensed. The land expenses have been adjusted.

The operating cost per lot developed in 2010–11 was $12,857, w

hich was $999 below

the original budget target of $13,856. This is m

ainly due to 2,228 lots yielding in 2010–11 compared

to the original budget target of 1,990 with developm

ent brought forward m

ainly at Golden B

ay, B

anksia Grove and B

eachlands. It was also partly due to a m

arginal increase in operating costs of 3.89 per cent com

pared to the original budget target.

Operating cost per lot developed (nom

inal & real)

18,500 16,500 14,500 12,500 10,500

8,500 6,500 4,500

2006–072007–08

2008–092009–10

2010–11

2010–11 Nom


Nom

inal land cost *$6,923

$8,744$17,616

$14,231$12,857

Real land cost **

$6,923$8,441

$16,506$13,007

$11,423

157H


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ww

.housing.wa.gov.au

Service 4: Governm

ent Regional O

fficers Housing (G

RO

H)


perating cost per property

This indicator measures the cost efficiency of providing G

RO

H housing. It is calculated by

dividing the total costs by the total number of properties at the end of the year.

*Nom





ll Groups P

erth): the cost per property has been adjusted to 2006–07 prices.

The operating cost per property was $26,522 in the 2010–11 financial year. The increase

per property was $3,167 above the $23,355 target and is attributed to increases in rental

expenses and depreciation.

The increase in rental expenses was prim

arily as a result of a 2.5 per cent increase in the ratio of leased properties in the K

imberley and P

ilbara regions, where lease costs are

generally higher, when com

pared to the rest of the state. The lease function is operated on a cost neutral basis w

hich is fully recouped from the A

uthority’s client agencies.

Total depreciation costs increased due to the increase in number of new

er properties.

Operating cost per property

28,000 24,000 20,000 16,000 12,000 8,000 4,000 0

2006–072007–08

2008–092009–10

2010–11

2010–11 Target$23,355

Nom

inal property cost *$16,459

$19,702$24,651

$26,899$26,522

Real property cost **

$16,459$19,020

$23,098$24,584

$23,563


Ministerial directives

No ministerial directives were received during 2010–11.


Other financial disclosures 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.

Each property is allotted a market rent based on information provided by Landgate. Tenants are required to pay no more than 25 per cent of assessable household income in rent. Tenants who are unable to pay the full market rent receive a rental concession. Tenants who receive a rental concession, and were in occupation before 12 July 1997, pay 23 per cent of their assessable household income in rent; and those who moved in after that date, pay 25 per cent.

Tenants paying less than 25 per cent of gross assessable income as rent will have their percentage increased incrementally over two years from 1 October 2010.

Payments such as Family Tax Benefit (above the basic amount) and child maintenance payments are assessed

at lower rates and various payments for specific purposes are not assessed for rent.

Major capital works The value of the Authority’s 2010–11 capital works program was estimated at $682 million made up mostly of the construction and purchase of new dwellings and land acquisition and development.

Details of estimates (as published in the 2010–11 Budget papers) and actual expenditure across capital works programs are shown in the table below.

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.


Housing

Program Estimated cost ($’000) Actual ($’000) Variance

($’000) Explanation

Commonwealth NPP for social housing 10,649 10,291 (358)

Community housing 4,966 2,358 (2,608)This decrease reflects a funding reallocation to crisis accommodation to meet the Authority’s higher priority needs.

Computer hardware and software 6,237 3,296 (2,941) Expenditure on the systems renewal project was not as high as anticipated in 2010–11.

Construction and purchase of houses 115,588 148,650 32,526Budget was increased at the First Review to reflect unspent funds from 2009–10 carried over and spent this year.

A Place to Call Home – Commonwealth election commitment

19,527 10,989 (8,538)

A Place to Call Home expenditure is under budget due to the Foyer project progressing slower than anticipated. Budget will be fully expended in 2011–12.

Commonwealth Stimulus Package for social housing 262,572 260,485 (2,087) Stage 1 completed, and Stage 2 delivered

against December 31 2010 completion targets.

Major capital projects




State Community Housing Program 53,256 53,256

This program was reclassified from recurrent to Capital. The program exceeds the original recurrent budget ($41,161) due to the early commencement on a number of projects causing accelerated spending together with the unbudgeted payment of GST on outsourced projects. The GST paid on outsourced projects will be claimed back in 2011–12.

Crisis accommodation 4,272 8,918 4,464

Crisis accommodation received a reappropriation from the 2009–10 & 2010–11 Community Housing program in order to meet Departmental priorities. Among these was the acquisition a 36-bedroom lodging house in Kalamunda for young women at risk of homelessness.

East Kimberley Development Project 30,350 20,393 (9,957)

Several significant projects were commenced slightly later in the year than anticipated, with unspent funds now expected to be acquitted in early 2011–12.

Royalties for Regions – Indigenous Visitor Hostels

500 0 (500)Funding was not received in 2010–11. All funds will be acquitted in 2011–12.

Royalties for Regions – Roebourne Housing Initiatives

5,000 5,000




GROH construction and purchase 250 38,298 38,048

The Authority increased the GROH capital works program to meet the needs of client agencies. The increase was funded via a decrease in both maintenance and upgrade programs and additional rental revenue.

Royalties for Regions – election commitment

79,000 59,490 (19,510)

The variance is due to a proposed reallocated of $10 million to the new NGO initiative and a delay in the commencement of 10 units at Halls Creek and a further 9 units earmarked for Coral Bay.

Urban Renewal – New Living (Estate Improvement Land Redevelopment)

15,754 14,694 (1,060)Expenditure is lower than original budget, mainly due to reduced development at New North.

Land

Acquisition 40,000 70,338 30,338The 2010–11 acquisition expenditure is in line with an increase at the mid-year review to meet joint venture commitments.




Land acquisition (GROH) 0 22,481 22,481

The increased activity reflects the boost in 2010–11 capital works together with unbudgeted acquisitions in readiness for the 2011–12 and 2012–13 capital works programs.

Development 73,764 66,735 (7,029)Expenditure is in line with a decision at mid-year review to bring forward developments at Banksia Grove and Golden Bay.

Holding costs 312 366 54

Redevelopment 832 6,091 5,259Expenditure is greater than original budget mainly due to development brought forward at Beachlands.

Shared Equity Program 10,000 16,029 6,029Expenditure related to pre-approved Firststart loans was carried over from the previous year.

Minor works 2,101 403 (1,698)Funds were reallocated to maintenance and improvements to meet the Authority’s priorities.

Offices and shops 1,000 1,049 49

Other 308 441 133

Additional multifunction devices were purchased to replace print only machines and to provide services in new office accommodation.

TOTAL 682,982 820,051 137,069


Commentary on the Authority’s 2010–11 Capital Works ProgramThe following comments provide a reconciliation of actual completions to those forecast in the budget papers.

As published in the 2010–11 Budget Papers, the Authority planned a program of 2,842 dwelling unit completions. As shown in the table on page 72 of the annual report, the Authority completed 2,318 units (excludes Aboriginal housing remote communities).

The Authority’s land development activities were expected to yield 1,990 lots in 2010–11. Actual yields were 2,228.

StaffingEmployee disclosures are outlined in the Organisational Transformation section under ‘Agency Performance Report on Operations’ from page 75 to 80.


Subsidiaries Keystart Loans Limited (‘Keystart’) is a special-purpose, nominal company controlled by the Housing Authority. Keystart acts as trustee for the Keystart Housing Scheme Trust and the Homeswest Loan Scheme Trust. It also controls Keystart Bonds Limited, Keystart Scheme Management Pty Ltd, Keystart Support Pty Ltd, and Keystart Support (Subsidiary) Pty Ltd. Keystart is managed by a board of directors.

Directors’ indemnity insuranceFollowing the abolition of the State Housing Commission and the Government Employees’ Housing Authority boards on 1 July 2006, an insurance policy has remained in force to protect past commissioners, board members and the two authorities in accordance with the Statute of Limitations. An insurance premium of $66,308 was paid to indemnify the commissioners and board members against liabilities under sections 13 and 14 of the Statutory Corporations (Liability of Directors) Act 1996.This included indemnifying the board of directors of Keystart against liabilities under the Corporations Act 2001.

Litigation in progressThe Housing Authority has been joined in legal actions involving asbestos-related illness. The estimated value of these claims against the Housing Authority is $300,000. Liability is being denied and any legal claim will be defended.

InsuranceIn accordance with Treasurer’s Instruction 812, the Authority maintains an appropriate level of insurance cover over insurable risks.

Effective from 1 July 2004, the Housing Authority has adopted a policy of self-insuring its residential property assets. A comprehensive review of the Housing Authority’s policy of self-insuring its residential property assets is being undertaken. The Housing Authority’s other insurance programs continue to be a combination of insurance policies provided by commercial insurance providers and the Western Australian 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 practices.

Governance disclosures


Contracts with senior officersAt the date of reporting, no senior officers, or firms of which senior officers are members, or entities in which senior officers have substantial interests, had any interests in existing or proposed contracts with the Housing Authority other than normal contracts of employment of service.


AdvertisingIn accordance with section 175ZE of the Electoral Act 1907, the following table details expenditure incurred by, or on behalf of, the Housing Authority in the 2010–11 period.

$

Advertising agencies 420,524.68

Think Creative 2,326.00

Linc Integrated 416,861.74

Vinten Browning 1,336.94

Direct mail organisations 87,325.09

Salmat 87,325.09

Media advertising organisations 583,658.82

Adcorp Australia 433,559.47

Optimum Media Decisions 150,099.35

Disability Access and Inclusion Plan outcomesThe Authority continues to fulfil its obligations under Project 50, which is a joint initiative

Other legal requirements


between the Commonwealth Mental Health Commission and the Housing Authority. Under this arrangement, the Authority is required to deliver public housing properties for people with mental illness who are homeless or at risk of being homeless. The Authority also continues to construct purpose-built accommodation in partnership with the Disability Services Commission.

Any business premises constructed or leased by the Authority are required to comply with relevant legislative requirements. The Authority has developed an action plan that outlines a range of strategies to support six key outcomes:

zz people with disabilities receive the same opportunities as other people to access any of the Authority’s services and events

zz people with disabilities have the same opportunities as other people to access the buildings and other facilities of the Authority

zz people with disabilities 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

zz people with disabilities receive the same level and quality of service from Authority staff

zz people with disabilities have the same opportunities as other people to make complaints to the Authority

zz people with disabilities have the same opportunities as other people to participate in any public consultation by the Authority.

The Authority is upgrading its new website to comply with web content accessibility guidelines as recommended by the Disability Services Commission and a cross-agency reference group is being established to oversee implementation of the action plan.

The Authority’s online education package has also been reviewed and updated.

A new Diversity Plan taking the Authority to 2014 has been endorsed by the Corporate Executive. The new plan makes specific provisions regarding the employment of people with disabilities.

Recordkeeping plansThe Authority complies with the State Records Act 2000 and is committed to the principles and standards provided by the State Records Commission.

The Authority’s recordkeeping plan was reviewed in early 2009 and approved by the State Records Commission on 22 June 2009.

The next review of the plan is due in 2014.

Recordkeeping training programAll new staff members are enrolled for recordkeeping training sessions within a month of commencing. Existing staff are enrolled in all new modules as they are implemented.

The outcomes of the recordkeeping and information management training for this period are:


Courses identified for release in 2011–12 are:

zz HouseKeeping, an introduction to recordkeeping in the Housing Authority

zz Operational Recordkeeping Training.

Compliance with Public Sector Standards and Ethical CodesInformation is available and communicated to all staff regarding the Public Sector Standards and Code of Ethics both at induction and through the Authority’s intranet. New policies and procedures are being developed to accommodate changes to the recruitment standard and new instructions from the Public Sector Commissioner.

Course Completion (%)

Business Classification 52

Recordkeeping Awareness Training (RAT) 70

Recordkeeping Awareness Training Refresher 40

TRIM Essentials (recordkeeping system) 52

The Authority has clearly documented processes for resolving grievances and investigating alleged breaches of the Code of Conduct. In 2010–11 there were no successful breach claims involving the Recruitment, Selection and Appointment Standard.


Substantive EqualityThe Housing Authority continues to incorporate substantive equality in all aspects of its service delivery and has demonstrated this commitment by continuing to implement the Needs and Impact Assessment’s initial screening of policies, practices and procedures within the Service Delivery division. This initial screening has provided the opportunity to determine any adverse impacts of policies, practices or procedures on different client groups.

Working in collaboration with the Equal Opportunity Commission (EOC), the Authority has been successful in attaining Level 2 of the State Government’s Policy Framework for Substantive Equality. This involves:

zz a clear understanding of service needs and barriers to service provision for Indigenous and ethnic groups

zz effective consultation practices for Indigenous and ethnic groups as standard practice

zz assessing policies that affect service delivery to identify the unmet needs and any adverse impacts on different Indigenous and ethnic groups.

Over the past six years the Authority has worked with the EOC and the Section 80 implementation and monitoring committee to implement the recommendations of the Finding a Place report which had looked at discriminatory practices in relation to Aboriginal people and housing. The work undertaken to address the recommendations closely correlates with work undertaken as part of the Policy Framework for Substantive Equality which has resulted in policies and practices being reviewed.

This year the Final Report: Implementation of Finding a Place was released which summarises the work undertaken to address the recommendations. Successful initiatives relating to the consultation and communication as a result of the recommendations include:

zz revision of correspondence to clientszz consultation through the Housing

Advisory Round Table (HART)zz consultation and communication though

Aboriginal open forums (statewide).

Government policy requirements


While the Finding a Place project has formally closed, the Authority is continuing to work with the EOC and engage with peak bodies to ensure better outcomes for our clients.

Audit and risk management Audit Committee The Audit Committee is a five-member advisory committee comprised of members of the corporate executive. The committee was established to assist the Accountable Authority (the Chief Executive Officer) discharge his responsibilities under section 53 of the Financial Management Act 2006. The committee met four times during 2010–11.

Internal audit function In 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 internal audit services, there is also scope for the branch to undertake management reviews as permitted under the

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 achieve its objectives; and assesses enabling systems and technology.

Approximately 16 reviews were delivered as part of the 2010–11 audit program, which incorporated corporate governance, operational, compliance, financial, information systems, probity, risk assessment and forensic investigations.

Delegation of Authority Under the Housing Act 1980, authority to undertake transactions 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 approval of the Chief Executive Officer does not need to be sought for what are essentially administrative matters associated with day-to-day operations and activities.

Since the proclamation of the Machinery of Government (Miscellaneous Amendments) Act 2006 and the creation of the Housing Authority, the power to delegate hasbeen extended to Government Regional Officers Housing.

A delegation framework and a comprehensive register exist to record formal delegations that empower officers to approve and negotiate matters on behalf of the Housing Authority.Resultant of the proclamation of the Aboriginal Housing Legislation Amendment Act 2010 on 1 July 2010, a review of the register was undertaken in September 2010, which resulted in a significant change in


the format to the register that was originally developed in 1993.

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 Risk Management Committee, consisting of senior managers, oversees 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 providing advice to the Corporate Executive regarding significant risks to the Authority. The committee also reviews components of the risk management framework.

Risk assessment is an integral part of project planning and execution for departmental projects.

Business continuity planningBusiness continuity plans for critical Head Office functions were reviewed and updated following a tabletop exercise in November 2010. The regional and area office network of 28 offices delivering frontline customer services completed business continuity plans for their specific locations across the state.


The key aim of the Housing Authority is to ensure that Western Australians have access to housing that is affordable, appropriate, safe, sustainable and secure.

We have stock throughout Western Australia, which includes:

zz 36,539 rental properties for individuals and families on low-moderate incomes. Subsidies ensure that tenants do not pay more than 25 percent of their income in rent

zz 2,012 units in joint venture projects with supporting organisations

zz 917 properties for community housing groups

zz 544 properties for crisis accommodationzz 753 properties for State Community

Housing Investment Program (SCHIP).

In addition there are:

zz 30 properties for Aboriginal urban community housing

zz 1,697 properties built in remote areas for Aboriginal people.

Notes:1. Community housing numbers exclude 141 properties that are public housing assets leased to community housing providers and used as community housing accommodation.2. Crisis accommodation numbers exclude 19 properties that are public housing assets that are leased to community housing providers and used as crisis accommodation.3. In addition, 10 stock replacements and two staff houses were completed during 2010–11.

Housing statistics


Public housing rental statistics

Rental waiting list by customer type 2010–11 2009–10 2008–09 2007–08 2006–07

Family 11,710 12,176 11,437 9,209 8,639

Senior Single 3,006 3,277 2,887 2,446 1,946

Senior Couple 642 828 878 896 793

Singles 8,053 7,855 6,526 4,381 4,060

TOTAL 23,411 24,136 21,728 16,932 15,438

Rental waiting list by bedroom entitlement 2010–11 2009–10 2008–09 2007–08 2006–07

2 Bedroom family 5,886 6,125 5,577 4,464 4,278

3 Bedroom family 4,048 4,270 4,201 3,426 3,165

4 Bedroom family 1,384 1,386 1,283 1,021 939

5+ Bedroom family 392 395 376 298 257

Senior Single 3,006 3,277 2,887 2,446 1,946

Senior Couple 642 828 878 896 793

Singles 8,053 7,855 6,526 4,381 4,060

TOTAL 23,411 24,136 21,728 16,932 15,438


Note: This excludes externally leased properties

New tenancies by customer type 2010–11 2009–10 2008–09 2007–08 2006–07

Family 1,960 1,861 1,743 1,787 1,900

Senior Single 521 512 572 583 660

Senior Couple 329 345 231 219 245

Single 507 407 660 715 822

TOTAL 3,317 3,125 3,206 3,304 3,627

Tenant income sources 2010–11 2009–10 2008–09 2007–08 2006–07

Age Pension 23.9 24.0 24.2 24.6 23.5

Disability Support Pension

23.2 22.6 22.0 21.9 20.8

Parenting Payment Single

9.2 11.4 11.8 12.6 13.8

Newstart Allowance 7.1 7.9 7.4 6.7 6.0

Veteran Services 1.2 1.3 1.4 1.6 1.7

Low Wage Income 6.4 5.7 6.8 8.0 5.9

Other 9.8 6.1 6.6 7.0 7.0

Full Rent and Concessions 19.2 21.0 19.7 17.8 21.3


Rental arrears 2010–11 2009–10 2008–09 2007–08 2006–07

Average arrears per account

$49.12 $35.73 $35.15 $37.52 $17.09

Percentage of accounts in arrears

9.8% 9.8% 9.8% 11.8% 9.0%

Rental stock by bedroom number 2010–11 2009–10 2008–09 2007–08 2006–07

Bedsitter 130 175 176 186 198

1 Bedroom 8,518 8,342 8,331 8,231 8,075

2 Bedroom 11,198 10,823 10,729 10,439 10,187

3 Bedroom 13,077 13,074 13,140 13,251 13,180

4 Bedroom 2,966 2,927 2,863 2,830 2,742

5+ Bedroom 650 609 561 536 497

Singles 8,053 7,855 6,526 4,381 4,060

TOTAL 36,539 35,950 35,800 35,473 34,879


Notes:All stock numbers relate to Public Housing and Aboriginal Rental Housing Program dwellings only. 1. Medium-High Density: townhouses, flats and apartments.2. Commencements: Letter of Acceptance, excludes Purchase Housing (homes built for sale). Includes Spot Purchase (acquisitions), Joint Ventures and Community Housing General.3. Lots produced include land development and redevelopment, estates improvement and joint ventures.

Rental stock by dwelling type 2010–11 2009–10 2008–09 2007–08 2006–07

House 12,314 12,281 12,348 12,270 12,123

Duplex 4,629 4,562 4,578 4,519 4,454

Medium-High Density1 19,596 19,107 18,874 18,684 18,302

TOTAL 36,539 35,950 35,800 35,473 34,879

Building commencements2 by

customer type2010–11 2009–10 2008–09 2007–08 2006–07

Family 468 1,219 242 615 485

Singles 338 435 18 169 99

Seniors 184 585 50 101 109

TOTAL 990 2,239 310 885 693

Land Production 2010–11 2009–10 2008–09 2007–08 2006–07

Lots Produced3 2,228 1,953 1,332 2,554 2,975


■ Housing regional head office

Head Office99 Plain Street, East Perth 6004 Tel: (08) 9222 4666 Toll free: 1800 093 325 TTY (Text Telephone): (08) 9476 2446Translation and Interpreting Service 13 14 50 Website: www.housing.wa.gov.au Email: [email protected]

Metropolitan officesArmadaleUnit 1, 42 Commerce Avenue, Armadale 6112 Tel: (08) 9391 1600

BentleyBrownlie Towers, Shop 5, 32 Dumond Street, Bentley 6102 Tel: (08) 9350 3700

■ Cannington – South East Metropolitan17 Manning Road, Cannington 6107 Tel: (08) 9350 3244

Our offices

City Office605 Wellington Street, Perth 6000 Tel: (08) 9476 2444

■ Fremantle – South Metropolitan42 Queen Street, Fremantle 6160 Tel: (08) 9432 5300

KwinanaShop 13, Hub Commercial Centre, 40 Meares Avenue, Kwinana 6167 Tel: (08) 9411 9500

Mandurah11 Pinjarra Road, Mandurah 6210 Tel: (08) 9583 6100

Midland21 Old Great Northern Highway, Midland 6056 Tel: (08) 9250 9191

■ Mirrabooka – North Metropolitan 8 Sudbury Road, Mirrabooka 6061 Tel: (08) 9345 9655

GoldfieldsEsperanceBalmoral Square, The Esplanade, Esperance 6450 Tel: (08) 9071 2046

■ Kalgoorlie – CentralUnits 1 & 2 Brookman Mews, 80–94 Brookman Street, Kalgoorlie 6430 Tel: (08) 9093 5200

Great Southern■ Albany 131 Aberdeen Street, Albany 6330 Tel: (08) 9845 7144

Katanning8 Daping Street, Katanning 6317 Tel: (08) 9891 1800

Kimberley■ Broome Frederick Street, Broome 6725 Tel: (08) 9158 3600

DerbyLot 265 Loch Street, Derby 6728 Tel: (08) 9158 4000


Halls CreekLot 73, Great Northern Highway (or PO Box 276), Halls Creek 6770 Tel: (08) 9168 9300

KununurraCorner Messmate Way and Konkerberry Drive, Kununurra 6743 Tel: (08) 9168 1588

Mid-West/GascoyneCarnarvon30 Robinson Street, Carnarvon 6701 Tel: (08) 9941 6500

■ Geraldton Union Bank Building, 201 Marine Terrace, Geraldton 6530 Tel: (08) 9923 4444

MeekatharraMain Street, Meekatharra 6642 Tel: (08) 9981 1115

PilbaraKarratha3–5 Welcome Road, Karratha 6714 Tel: (08) 9159 1700

■ South Hedland Corner Brand and Tonkin streets, South Hedland 6722 Tel: (08) 9160 2800

South-West■ Bunbury 22 Forrest Avenue, Bunbury 6230 Tel: (08) 9792 2111

BusseltonSuite 4, 8–10 Prince Street, Busselton 6280 Tel: (08) 9781 1300

ManjimupUnit 10, 30–32 Rose Street, Manjimup 6258 Tel: (08) 9771 7800

WheatbeltMerredin27 Mitchell Street, Merredin 6415 Tel: (08) 9881 3800

NarroginGovernment Building, 11–13 Park Street, Narrogin 6312 Tel: (08) 9881 9400

■ Northam297 Fitzgerald Street, Northam 6401 Tel: (08) 9690 1900

Government Regional Officers Housing (GROH)Central Office203 Nicholson Road, Shenton Park 6008 Tel: (08) 9286 6000 Toll free: 1800 644 708

KalgoorlieUnits 1 & 2 Brookman Mews, 80–94 Brookman Street, Kalgoorlie 6430 Tel: (08) 9093 5200

Karratha3–5 Welcome Road, Karratha 6714 Tel: (08) 9144 4213

South HedlandCorner Tonkin and Brand streets, South Hedland 6722 Tel: (08) 9160 2800

Keystart/Country Housing Authority2 Brook Street, East Perth 6892 Tel: (08) 9338 3100Toll Free (metro): 1300 578 278Toll Free (country): 1800 158 200Website: www.keystart.com.au Email: [email protected]


Government of Western Australia Department of Housing

© Housing Authority 2010–11 Annual ReportCopies of this document are available inalternative formats upon request.99 Plain Street, East Perth WA 6004

Tel: (08) 9222 4666TTY (08) 9476 2446Email: [email protected]

Government of Western Australia Department of Housing · 2011. 9. 29. · Glossary 4 Introducing...

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