Land Development Agency Annual Report...

ANNUAL REPORT2015–16Land Development Agency

i Land Development Agency : Annual Report 2015-16

ISSN: 1835-1727

© Australian Capital Territory, Canberra 2016

This work is copyright. Apart from any use as permitted under the Copyright Act 1968, no part may be reproduced by any process without written permission from the Territory Records Office, ACT Government. GPO Box 158, Canberra City ACT 2601.

First published October 2016

Website – www.act.gov.au

Produced by: ACT Government Publishing Services

AccessibilityThe ACT Government is committed to making its information, services, events and venues accessible to as many people as possible. If you have difficulty reading a standard printed document and would like to receive this publication in an alternative format – such as large print and audio – please call the Canberra Blind Society on (02) 6247 4580.

If English is not your first language and you require the translating and interpreting service, please call the Telephone Interpreter Service on 131 450. If you are deaf or hearing impaired and require assistance, please call the National Relay Service on 133 677.

This report is also available online at www.lda.act.gov.au/en/publications-and-reports

Inquiries about this publication should be directed to:

Land Development Agency02 6207 1295www.act.gov.au

Postal address:

GPO Box 158Canberra City ACT 2601

Produced by Publishing Services for the Land Development Agency.

© Australian Capital Territory, Canberra, October 2016Material in this publication may be reproduced provided due acknowledgment is made.

Publication No 16/1039

Printed on recycled paper

ii

CONTENTS

Accessibility i

Contents ii

Abbreviations and Acronyms 1

SECTION A Transmittal Certificate and Compliance Statement 4

Transmittal Certificate 5

Compliance Statement 6

SECTION B Organisational Overview and Performance 8

B.1 Organisational Overview 9

B.2 Performance Analysis 22

B.3 Scrutiny 27

B.4 Risk Management 29

B.5 Internal Audit 30

B.6 Fraud Prevention 30

B.7 Work Health and Safety 31

B.8 Human Resources Management 33

B.9 Ecologically Sustainable Development 38

SECTION C Financial Management Reporting 58

C.1 Financial Management Analysis 59

C.2 Financial Statements 74

C.3 Capital Works 166

C.4 Asset Management 172

C.5 Government Contracting 172

C.6 Statement of Performance 180

SECTION D Exception and Agency Specific Reporting 190

D.1 Dangerous Substances 191

D.2 Medicines, Poisons and Therapeutic Goods 191

SECTION E Education and Training 193

SECTION F Health 195

SECTION G Gambling and Racing 196

SECTION H Ministerial and Director-General Directions 198

SECTION I Public Land Management Plans 200

SECTION J Third Party Insurance 202

SECTION K Victims of Crime 204

SECTION L Waste Minimisation Contraventions 206

SECTION M Community Engagement and Support 208

SECTION N Justice and Community Safety 214

SECTION O Public Sector Standards and Workforce Profile 216

SECTION P Territory Records 218

Alphabetical Index 220

1 Land Development Agency : Annual Report 2015-16

ABBREVIATIONS AND ACRONYMS

ACT Australian Capital Territory

ACTPG ACT Property Group

ACTPLA ACT Planning and Land Authority

ACTPS ACT Public Service

API Australian Property Institute

ARI Asset Recycling Initiative

ARIn Attraction and Retention Incentive

BARC Board Audit and Risk Committee

CBUS Construction and Building Unions Superannuation

CEO Chief Executive Officer

CFO Chief Financial Officer

CHC Community Housing Canberra

CIO Chief Information Officer

CIT Canberra Institute of Technology

CITC Construction Industry Training Council

CMTEDD Chief Minister, Treasury and Economic Development Directorate

COAG Council of Australian Governments

CRIP Community Recreation Irrigated Park

CSD Community Services Directorate

CW Civil Works (Indicator)

DA Development Application

DD Due Diligence (Indicator)

DHA Defence Housing Australia

DRP Design Review Panel

EAP Employee Assistance Program

ED Economic Development

EDP Estate Development Plan

EPBC Environment Protection and Biodiversity Conservation Act 1999 (C’wealth)

EPD Environment and Planning Directorate

FMA Financial Management Act 1996

FOI Freedom of Information

FTE Full Time Equivalent

GBCA Green Building Council of Australia

HA Hectare

HR Human Resources

2

IAP2 International Association for Public Participation

ILRP Indicative Land Release Program

IZ1 General Industrial Land

IZ2 Mixed Use Industrial Land

KPI Key Performance Indicator

LDA Land Development Agency

LED Light Emitting Diode

MBA Master Builders Association

MoU Memorandum of Understanding

NCA National Capital Authority

NLA Net Lettable Area

NSW New South Wales

OCG Office of the Coordinator-General

PAP Principle Authorised Person

PDA Planning and Development Act 2007

PHRT Public Housing Renewal Taskforce

PIA Planning Institute of Australia

PL Planning (Indicator)

PO Post Occupancy (Indicator)

PSMA Public Sector Management Act 1994

PTD Project to Date

RED Respect, Equity and Diversity

RFP Request for Proposal

RFT Request for Tender

SEA Special Employment Arrangement

SERBIR Senior Executive Responsible for Business Integrity Risk

SOI Statement of Intent

TAMS Territory and Municipal Services Directorate

UDIA Urban Development Institute of Australia

WhoG Whole of Government

WHS Work Health and Safety

WHS Act Work Health and Safety Act 2011

WHSMS Work Health and Safety Management System

WSUD Water Sensitive Urban Design

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SECTION A: TRANSMITTAL CERTIFICATE AND COMPLIANCE STATEMENT

6

COMPLIANCE STATEMENT

The 2015-16 Land Development Agency (LDA) Annual Report complies with the 2015 Annual Report Directions (the Directions) provided in the Annual Reports (Government Agencies) Notice 2015. The Directions are available on the ACT Legislation Register:

http://www.legislation.act.gov.au/ni/annual/2015.asp

This Compliance Statement indicates the subsections, under the five Parts of the Directions that are applicable to the LDA, and the location of information that satisfies these requirements:

PART 1 DIRECTIONS OVERVIEW

The requirements under Part 1 of the Directions relate to the purpose, timing and distribution, and record keeping of annual reports. This Annual Report complies with all subsections of Part 1 under the Directions.

In compliance with section 13 Feedback, Part 1 of the Directions, contact details for the LDA are provided within the report to provide readers with the opportunity to provide feedback.

PART 2 AGENCY ANNUAL REPORT REQUIREMENTS

The requirements within Part 2 of the Directions are mandatory for all agencies and the LDA complies with all subsections as follows:

A. Transmittal Certificate, see page no. 5

B. Organisational Overview and Performance, inclusive of all subsections, see pages 9 - 57

C. Financial Management Reporting, inclusive of all subsections, see pages 59 - 189

PART 3 REPORTING BY EXCEPTION

The LDA has nil information to report by exception under Part 3 of the Directions for the 2015-16 reporting period.

PART 4 AGENCY SPECIFIC ANNUAL REPORT REQUIREMENTS

The following subsections of Part 4 of the 2015-16 Directions are applicable to the LDA and can be found within this Annual Report:

H. Ministerial and Director-General Directions, see page no. 199

I. Public Land Management Plans, see page no. 201

PART 5 WHOLE OF GOVERNMENT ANNUAL REPORTING

All subsections of Part 5 of the Directions apply to the LDA. Consistent with the Directions, the information satisfying these requirements is reported in the one place for all ACT Public Service Directorates, as follows:

M. Community Engagement and Support, see pages 209 - 213, noting that some of this information is also included in the 2015-16 Chief Minister, Treasury and Economic Development Directorate Annual Report.

N. Justice and Community Safety, including all subsections N.1 – N.4, in the 2015-16 Justice and Community Safety Directorate Annual Report;

O. Public Sector Standards and Workforce Profile, including all subsections O.1 – O.3, in the 2015-16 State of the Service Report produced by the Commissioner for Public Administration; and

P. Territory Records, in the 2015-16 Director of Territory Records Annual Report, annexed to the 2015-16 Chief Minister, Treasury and Economic Development Directorate Annual Report.

ACT Public Service Directorate annual reports are found at the following web address:

http://www.cmd.act.gov.au/open_government/report/annual_reports

http://www.legislation.act.gov.au/ni/annual/2015.asp



SECTION B: ORGANISATIONAL OVERVIEW AND PERFORMANCE


B.1 ORGANISATIONAL OVERVIEW

OUR VISIONThe Land Development Agency (LDA) strives to be an organisation of excellence that:

> recognises it is a key instrument for the delivery of ACT Government policies;

> acts commercially;

> promotes and rewards innovation;

> is adaptable;

> behaves ethically and professionally in all that it does; and

> appropriately values its people and its customers.

MISSION AND VALUESThe LDA will continue to contribute positively to the economic and social development of the ACT by building vibrant and sustainable communities through greenfield and urban renewal projects for the development of residential, commercial, industrial and community land.

The LDA is committed to the core values of professionalism, honesty, integrity, innovation and cooperation, and pursues these values in all its business dealings.

OUR ROLEThe LDA is an ACT Government agency within the Economic Development portfolio (ED). Its core business is developing and selling land on behalf of the ACT Government. The LDA releases and develops government owned land for residential, commercial, industrial and community purposes. In doing so, the LDA seeks to balance potentially competing public sector and commercial priorities, and provide opportunities for private sector development to optimise the community benefit from the ACT’s land assets.

ESTABLISHMENTThe LDA is a Territory authority established by Section 31 of the Planning and Development Act 2007 (PDA). The LDA does not administer any enactments, but is bound by Chapter 4 of the PDA. The PDA provides for planning (ACT Planning and Land Authority (ACTPLA) as custodian of the Territory Plan) and development (the LDA as land developer in compliance with the Territory Plan) in implementing a land system that contributes to the orderly and sustainable development of the ACT.

The LDA Governing Board is established by Section 42 of the PDA and Board members are appointed under that section. The role of the Board is to govern the LDA in accordance with the Financial Management Act 1996 (FMA) and the PDA. The Board has appointed a Board Audit and Risk Committee (BARC) that meets at least quarterly (see also Section B.5 Internal Audit).

As part of the annual budget process, the government approves a Statement of Intent (SOI) for the LDA that sets out the objectives and deliverables for the LDA, including land release and land sales revenue targets. An explanation of the LDA’s performance against these objectives is provided at Section B.2 (Performance Analysis) of this report.

The LDA must also comply with any directions given to it by the relevant minister under Section 37 of the PDA. The LDA is staffed under the Public Sector Management Act 1994 (PSMA).

The Chief Executive Officer (CEO) of the LDA holds all the powers of a CEO of a Territory instrumentality under the PSMA and is a member of the LDA Board. The CEO manages the LDA in accordance with governance arrangements determined by the LDA Board.

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FUNCTIONS AND SERVICESThe key objectives of the LDA, as set out in its 2015-16 SOI, were to:

> ensure that an adequate supply of land is maintained to meet market demand and to stimulate economic activity in the residential, commercial, industrial and community land development sectors;

> contribute to the provision of advice to Government on the ACT property market to support the development of its land release targets;

> contribute to the delivery of the Government’s policies and priorities as they relate to land development, urban renewal and urban sustainability;

> cultivate and maintain productive relationships across the ACT Government;

> cultivate and maintain productive working relationships and linkages with the private sector;

> operate efficiently in the markets in which it operates and provide agreed returns to the Territory;

> ensure that key commercial decisions on land in the ACT are consistent with the long-term sustainability of the Territory; and

> engage the community in a timely manner in the land development process and continue to improve community engagement processes for high profile redevelopments.

In attaining these objectives, the LDA’s key deliverables for 2015-16 were to:

> deliver the Government’s Indicative Land Release Program (ILRP) for residential, commercial, industrial and community land uses;

> deliver the Government’s priority urban renewal projects;

> provide timely support for direct sales of land by the Government;

> support the delivery of urban intensification along the Capital Metro corridor;

> support the work of the Government’s Asbestos Response Taskforce in dealing with homes affected by loose-fill asbestos;

> support the work of the Public Housing Renewal Taskforce (PHRT) in delivering modern and fit for purpose public housing;

> deliver high quality, sustainable developments, including public realm and community development;

> provide a variety of land and housing options that set benchmarks for quality and timeliness in sustainable building and design;

> contribute to diversity in the supply of new housing in the Territory, reflective of current and anticipated demographic change; and

> pursue development opportunities where such opportunities would be consistent with the Government’s policy framework for land acquisitions.

CLIENTS AND STAKEHOLDERS

The ACT community is the LDA’s principal client. The LDA engages with the community in all facets of its land development activities. The LDA actively engages with the community to seek its views and apply due consideration wherever possible to deliver high quality land development outcomes to provide a social and financial return on the land asset.

Our primary stakeholder is the ACT Government. Other stakeholders include (in no particular order):

> the ACT community;

> industry and business groups;

> builders, suppliers and contractors;

> Community Councils and groups;

> National Capital Authority (NCA); and

> ACT Government directorates, agencies and authorities.


ORGANISATIONAL STRUCTUREThe LDA is an ACT Government agency within the ED, which is part of the Chief Minister, Treasury and Economic Development Directorate (CMTEDD). Under a Memorandum of Understanding (MoU), CMTEDD and LDA provide and/or share a range of management and support functions. For example during 2015-16 the LDA provided financial resources to the ED, while CMTEDD provides community engagement and corporate services to the LDA. In addition, the CEO of the LDA is also the Director-General of the ED, while the Deputy Director-General, Land Development, of the ED is also the Deputy CEO of the LDA.

OFFICE OF THE CHIEF EXECUTIVE OFFICER

The LDA functional responsibilities of the Office of the Chief Executive Officer include:

> preparation and monitoring the implementation of the LDA SOI;

> provision of policy, secretariat and administrative support to the LDA Board and the BARC;

> facilitation of the LDA’s responses to issues raised by the community, industry and other government agencies; and

> leading community engagement activities associated with land development in the Territory.

LAND DEVELOPMENT

The core responsibilities of the Greenfield and Urban Projects branches of the LDA include:

> developing government owned land for release for residential, commercial, industrial and community purposes, in accordance with the ILRP;

> obtaining relevant statutory and other approvals, including those of environmental and heritage matters;

> undertaking due diligence activities to inform the ILRP and resolve strategic environmental and other planning issues for future land releases;

> assessing greenfield sites for potential future release and development;

> procuring and project managing services and civil and landscape construction activities;

> working with the Procurement and Capital Works division within ED to maximise efficient and timely delivery of LDA estate works that interface with capital works;

> managing the Civil Engineering Consultancy Services Relating to Site Investigations;

> providing support for government direct sales by undertaking site investigations minor works;

> managing the LDA’s Minor Works Program;

> integrating sustainable design through management of the LDA’s Design Review Panel (DRP);

> maintaining the LDA strategic risk register;

> monitoring the master program and key performance indicators; and

> developing and continuous improvement of work, health and safety systems to ensure compliance with obligations under the Work Health and Safety Act 2011.

SALES, MARKETING AND LAND MANAGEMENT

The responsibilities of the Sales, Marketing and Land Management branch include:

> managing the marketing and sales of residential, commercial, industrial and community land;

> engaging and managing valuation services;

> undertaking land management services, including land custodian and licence arrangements;

> managing corporate branding and sponsorships;

> providing strategic advice to the LDA executive on sales matters in the ILRP;

> engaging with and providing advice to LDA project teams on new suburbs, precincts and development sites on matters relating to product mix, type and affordable housing options;

> managing the LDA panels of commercial and residential property agents;

> building and maintaining relationships with external stakeholders; and

> managing the LDA’s Mingle community development program.

STRATEGIC FINANCE

The LDA’s Strategic Finance branch is responsible for the delivery of value-added tactical and strategic financial services, support, analysis and advice to the LDA Board, management, project teams and other key stakeholders. The branch provides a range of financial compliance activities including statutory financial reporting, taxation administration and financial framework development and implementation. The branch also leads the LDA’s business systems integration and underlying business process reform.

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OUR STRUCTURE – AS AT 30 JUNE 2016

Chief Minister

Minister for Economic Development

Minister for Urban Renewal

Minister for Tourism and Events

Mr Andrew Barr MLA

Land Development Agency Governing Board

*Chief Executive O�icer, Land Development Agency

Mr David Dawes

*Director, O�ice of the

Chief Executive O�icer

Mr Chris Wilson

*Deputy Chief Executive O�icer, Land Development Agency

Ms Karen Doran (Acting)

*Executive Director, Sales, Marketing and Property Management

Mr Daniel Bailey

Director, Sales, Marketing and Land Management

Mr John Mason

Executive Director, Greenfield

Mr Tom Gordon

*Executive Director, Urban Renewal

Ms Liz Lopa

Director, Urban Projects

Mr Nicholas Holt

Director, City to the Lake

Mr Nicholas HudsonChief Financial O�icer

Ms Anita Hargreaves

* These positions have dual responsibilities within the ED.


FUTURE PRIORITIESIn June 2016, the ACT Government published its 2016-17 to 2019-20 ILRP, which sets out the ACT Government’s intended program of residential, commercial, industrial and community land releases over the next four years.

The four year ILRP enables the ACT Government to deliver on its economic and social strategies for the Territory. It also contributes to financial and environmental objectives by seeking to:

> facilitate the provision of affordable housing choices;

> meet the demand for land in the Territory;

> establish an appropriate inventory of serviced land;

> enable the operation of a competitive land development and construction market; and

> achieve satisfactory returns from the sale of unleased Territory land.

The 2016-17 ILRP includes a sales target of 17,780 dwelling sites between 2016-17 and 2019-20. This reflects an increase of 590 dwelling sites on the program published with the 2015-16 Budget.

The following table shows the number of dwellings expected to be sold as reported in the 2015-16 ILRP and the 2016-17 ILRP.

2016-17 2017-18 2018-19 2019-20

Dwellings

2015-16 ILRP 3,713 4,566 5,398

2016-17 ILRP 4,550 4,430 4,700 4,100

The LDA’s key outputs for 2016-17 are:

In contributing positively to the economic and social development of the ACT, the LDA will:

> deliver the ACT Government’s ILRP for residential, commercial, industrial and community land uses;

> provide advice to the ACT Government on property market conditions to inform development of targets in the ILRP and support direct sales of land;

> deliver high quality, sustainable developments, including public realm and community development;

> deliver an adequate and diverse supply of land for construction and developments in the Territory that meets market demand and anticipates demographic changes; and

> contribute to the strategic delivery of the ACT Government policies and priorities including those related to land development, urban and public housing renewal, suburban sustainability, strategic land acquisitions, the asbestos response, housing affordability and urban intensification, particularly along the Capital Metro corridor.

In June 2014, the Planning and Development (Land Acquisition Policy Framework) Direction 2014 (No. 1) took effect. The Framework sets out the principles that govern the exercise of the Land Development Agency’s (LDA) functions under the Planning and Development Act 2007.

Clause 2.4.3 of the Framework requires the LDA to include in its annual report, details of all acquisitions completed during a financial year.

The LDA 2015-16 strategic land acquisitions are shown below.

Strategic Land Acquisitions Approved Date

Stromlo September 2015

Stromlo January 2016

INTERNAL ACCOUNTABILITY

LDA BOARD

The LDA Board is established by section 42 of the PDA as a governing board. The Board must have at least five but not more than eight members. In appointing Board members, the Minister seeks to ensure that the following disciplines and areas of expertise are represented:

> land development;

> landscape architecture;

> sustainable development;

> economics;

> public law;

> finance or accounting;

> public administration; and

> engineering.

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Under section 56 of the FMA the LDA Board is responsible, under the responsible minister, for the efficient and effective financial management of the Agency. Section 77 of the FMA provides that a governing board has the following functions:

a. setting the authority’s policies and strategies;

b. governing the authority consistently with the authority’s establishing Act and other relevant legislation;

c. ensuring, as far as practicable, that the authority operates in a proper, effective and efficient way; and

d. ensuring, as far as practicable, that the authority complies with applicable governmental policies (if any).

From 1 July 2015 to 30 June 2016 the LDA Board consisted of six members. There were a total of 12 meetings during that period.

Board Attendance 2015-16

Name Position Meetings Attended Total of 12

Ross Barrett Chair 12

Robert Tonkin Deputy Chair 11

Sandra Lambert Member 10

Jim Shonk Member 10

Chris Purdon Member 11

David Dawes CEO & Member 12

Notes:1. In addition to 11 scheduled monthly meetings, the Board

held one Extraordinary meeting.

Ross Barrett, OAM (Chairman of the LDA Board)

Ross Barrett is a civil engineer with a Bachelor of Engineering degree from the University of NSW and a Local Government Engineers Certificate (NSW). Mr Barrett has been a Fellow of the Institution of Engineers Australia since 1986 and in 2011 and again in 2012 was recognised by Engineers Australia as one of Australia’s top 100 most influential engineers.

Mr Barrett has a long history of membership and leadership of professional bodies. He is a former President of the Master Builders ACT branch and is a Life Member of the Association. He is also a Life Member of Master Builders Australia and was a National Board member for 11 years.

Mr Barrett was a National Board member of the Civil Contractors Federation for 18 years and is a former National President of the Federation. He has been a Fellow of the Australian Institute of Company Directors since 1990.

Mr Barrett has served on a number of regional advisory and professional organisations. He was Chair of the Capital Region Development Board (2007-8); Chair of the Community Housing Canberra Ltd (2007-11) and Chair of Regional Development Australia ACT (2009-10). He was a member of the Residential Advisory Committee to the ACT from 1998 until his appointment to the LDA.

Robert Tonkin (Deputy Chairman)

Robert Tonkin is a former senior Commonwealth and ACT public servant and has been a resident of Canberra since 1973. Mr Tonkin is a former Chief Executive of the ACT Chief Minister’s Department, Associate Secretary in the Department of the Prime Minister and Cabinet, and Deputy Secretary in the Department of Defence.

Mr Tonkin has extensive high-level experience in public sector governance, strategic policy and resource management, and in national security and risk management.

Within the Department of the Prime Minister and Cabinet, Mr Tonkin led the Australian Government’s Taskforce on Offshore Maritime Security, and headed the Secretariat of the COAG National Enquiry on Bushfire Mitigation and Management. In the ACT he led the Service’s response to the 2003 bushfires and served on the Bushfire Recovery Taskforce.

As a Deputy Secretary in the Department of Defence Mr Tonkin was concurrently CFO and CIO, oversighted a number of divisions including resource management, corporate planning, government relations, estate management, corporate support and audit and lead the Department’s successful implementation of major reform and efficiency initiatives.

Mr Tonkin has chaired a number of Commonwealth department audit committees and has been a board member of the Defence Housing Authority.

He has previously been a member of the Council of the Order of Australia and of the Australian Bravery Decorations Council, was Deputy Chair of the Defence Reserves Support Council of the ACT, and National Secretary and ACT Chair of the Australian Industry and Defence Network.

Currently, Mr Tonkin is the Independent Chair of the Audit and Risk Committee of the Attorney-General’s Department.

Mr Tonkin has an Honours degree in urban geography and is a Fellow of the Australian Institute of Management and a Member of the Australian Institute of Company Directors.


Sandra Lambert, AM (Member)

Sandra Lambert has worked for the public sector for all of her career spanning over 30 years. She has worked as a teacher and held a number of school based leadership positions including as a College Principal. She has also worked for the Australian Government and has held several senior executive and leadership positions in the ACT Government. Her most recent was as the inaugural Chief Executive of the then Department of Disability, Housing and Community Services (2002 – 2010) a position in which she exercised the Statutory role of The Commissioner for Housing, responsible for the Public Trading Enterprise known as Housing ACT.

During this period, in 2009, she also undertook the role of ACT Coordinator General of the Stimulus Taskforce responsible for delivering the Australian Government’s National Building Package in the ACT. As Chief Executive Ms Lambert was also actively engaged in national committees including as Chair of the Community, Disability Services Ministers’ Advisory Committee for three years. She was also a Board member of the Australian Housing and Urban Research Institute and of the Australian Institute of Health and Welfare. Before becoming a Chief Executive Ms Lambert’s roles included driving and implementing whole of government policy development, implementation and evaluation and being responsible for leading significant, often high profile projects. Leading the project team which established Canberra Connect is one example.

Ms Lambert has a Bachelor of Arts degree from Canterbury University (NZ) and a Diploma of Teaching, Distinction Award. She is a Fellow of the Australian Institute of Management and a Member of the Australian Institute of Company Directors.

Ms Lambert’s current activities include consulting roles. She is also a member of the Hands Across Canberra Board which is a philanthropic organisation in the ACT.

Jim Shonk (Member)

Jim Shonk is well known and highly regarded in the ACT for his achievements and expertise in property valuation, commercial real estate and board operations.

He was the founding Director of the Vikings Club in Tuggeranong, past President of Clubs ACT, and is also the Director of Argus Property Investments, which he co founded in 2012.

Mr Shonk was the Director of Commercial Sales at Colliers International’s Canberra office and as Managing Director (1992 to 2002), became the most successful sales agent in Colliers International’s global history, and consistently finished in the top four commercial agents in Australia.

Mr Shonk has also been President of the Vikings Club in Tuggeranong between 1991 and 1996, then in 1998, and again from 2001 to 2003. He was a founding Director of the Club between 1978 and 1980. During his years with the Club, Mr Shonk initiated and oversaw a review of all aspects of company performance and standards, resulting in best practice audit procedures and vastly improved governance and administration, and the expansion of the Club in Lanyon and Tuggeranong Town Centre.

He is a Fellow of the Australian Property Institute and a licensed Real Estate Agent and licensed Valuer in the ACT and NSW.

Chris Purdon (Member)

Chris Purdon has an extensive background in town planning and experience working within the private sector. As a current Fellow of the Planning Institute of Australia, Ms Purdon’s qualifications include a Bachelor of Arts (Honours) and a Masters degree in Town and Country Planning from the University of Sydney. Ms Purdon founded Purdon Associates, a Canberra based planning and social research consulting company specialising in the provision of expert and practical advice on urban planning and social policy issues. Purdon Associates has continued to provide expertise in town planning to the Canberra region since 1985 and the company has received a number of awards – the most recent being: Property Council – ACT Property Professional of the Year 2010; and PIA National Award for Excellence – Social and Community Based Planning for ‘Future Use of Former School Sites’ (2009).

Throughout her career, Ms Purdon has contributed to various boards and committees including Chairperson of the ACT Ministerial Housing Advisory Committee from 1993 to 2003 and Chairperson (on behalf of the Minister for Housing), for the ACT Affordable Housing Taskforce in 2002.

Ms Purdon was also appointed as the independent representative on the Common Ground Strategic Partnership Group that oversaw the construction of the Common Ground facility in the Gungahlin Town Centre.

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David Dawes (Chief Executive Officer and Member)

David Dawes commenced his roles as Chief Executive Officer of the Land Development Agency and Director-General of the Economic Development Directorate in May 2011. Prior to that, he was Chief Executive of the Government’s Department of Land and Property Services (created in December 2009) responsible for implementing major government initiatives such as the land release program and aspects of the nationally recognised Affordable Housing Action Plan.

During this time, David also oversaw the ACT Property Group, responsible for managing and preparing long-term plans for office accommodation for ACT public servants. In addition, he led the Strategic Project Facilitation group which facilitated numerous private sector, government and projects including development of the National Arboretum Canberra.

David joined the ACTPS in April 2007 as Deputy Chief Executive, Business and Projects, Chief Minister’s Department. Prior to joining the ACT Public Service he was the Executive Director of the Master Builders Association of the ACT for nine years. In that role he represented the Association with industry, government and business groups including the Canberra Business Council, Local Area Planning and Advisory Committees and was a member of the Occupational Health and Safety Council.

During his time at the Association, he was a founding member of OzHelp – an organisation which has now been launched nationally to prevent youth suicide. He commenced the ‘Housing for Life’ advisory service in the ACT and built the first ‘Housing for Life’ display house in conjunction with Housing ACT.

In 2003 he instigated a single demolition package to assist the victims of the bushfires and was the Chairman on the Planning and Infrastructure Task Force and the Community Expert Reference Group which was established following the 2003 Canberra bushfires.

As Director-General of Economic Development, Mr Dawes is responsible for:

> providing programs, initiatives and policy advice aimed at supporting economic and business development in the Territory;

> implementing redevelopment of the ACT Government owned land along Northbourne Avenue;

> delivering the National Partnership Agreement on Asset Recycling, the Land Release Program and Public Housing Renewal program;

> delivering a diverse range of capital works projects and continuing to improve the ACTPS procurement, including its focus on local industry;

> implementing the 2020 Tourism Strategy, the 2015 Arts Policy and the ACT Events policy;

> delivering the targeted programs that continue to support the ACT’s high levels of sport and recreation participation; and

> managing ACT Government properties/Territory venues through ACT Property Group and Venues Canberra.

In the role of Coordinator-General, Mr Dawes is responsible for coordinating government responses to high value/high complexity investment/development enquiries and proposals identified by the Minister or from the private sector.

Remuneration for Chief Executive and the LDA Board members

The Remuneration Tribunal, pursuant to the Remuneration Tribunal Act 1995, determines the remuneration for the CEO and Board members.

Senior Executives (Band 2 and Band 3) as at 30 June 2016

Name Position

David Dawes Chief Executive Officer, LDADirector-General, Economic Development

Karen Doran Acting Deputy Chief Executive Officer, LDAActing Deputy Director-General, Land DevelopmentActing Coordinator-General, Urban Renewal

Liz Lopa Executive Director, Urban Renewal

Tom Gordon Executive Director, Greenfield

Daniel Bailey Executive Director, Sales, Marketing and Property Management

Anita Hargreaves Chief Financial Officer


JOINT VENTURE MANAGEMENT COMMITTEES

The joint ventures in Crace, Forde and West Belconnen are each managed by a Joint Venture Management Committee / Board. Project Control Groups for each joint venture manage the operational aspects of each site.

CraceCrace has been developed as a joint venture between the LDA and Crace Developments Pty Ltd which is a consortium led by CIC Australia Limited (as project manager and majority partner of the consortium), Defence Housing Australia (DHA), Tatebrook Pty Ltd and Community Housing Canberra Affordable Housing.

FordeForde was developed as a joint venture development in Gungahlin between the LDA and Forde Development Pty Ltd. Forde Development Pty Ltd is a consortium between Lend Lease Communities and CIC Australia Limited.

West BelconnenThe LDA entered into in a Joint Venture Agreement on 19 May 2016 on behalf of the Territory. The Joint Venture participants are Riverview Pty Limited with a 40 per cent ownership interest and the Territory (LDA) with a 60 per cent ownership interest. The Joint Venture will develop land with the potential to deliver up to 11,500 new homes accommodating about 30,000 people, which will help to meet existing and future demand for housing for the next 30-40 years.

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REPORT BY THE CHAIR On behalf of the LDA Board, management and staff, I am pleased to present the Agency’s 2015-16 Annual Report.

The LDA performed strongly in 2015-16, achieving key land release and revenue targets set out in its Statement of Intent (SOI).

During 2015-16, land for 4,024 dwellings was released, exceeding the 3,513 target in the SOI. Sales continued to be strong for Mixed Use and Multi Unit product with the single residential market showing signs that supply is beginning to meet demand.

Significant releases included an auction for 515 dwellings at Section 52 Braddon, which was keenly contested and ultimately purchased for $47 million. A site for the first service station in the Molonglo Valley was offered in November 2015 with spirited bidding seeing it sell for $5.75 million. The release of the Kingston Arts Precinct via a two stage process was another important milestone for the Territory.

Initial releases in Throsby, Gungahlin’s newest suburb, were well received with land for 543 dwelling sites in the suburb offered to the market in 2015-16. Releases continued in Moncrieff, with land for 710 dwellings and Coombs with sites for 514 dwellings released.

The LDA also met its SOI targets for the release of Commercial Land - 120,725m² released against a target of 57,194m² – and Community/Non-Urban Land, with 198,649m² released in 2015-16 against a target of 57,154m². The significant increase in Community/Non-Urban Land was due to the inclusion of a 91,428 m² site to the Education Directorate for the development of a second school in Molonglo in the suburb of Denman Prospect. Notable releases in 2015-16 included the release of the former Higgins school site for development of 100 independent living units and a 4,575 m² site for a child care centre.

The LDA released 90,687m² of Industrial Land to the market which exceeded the 2015-16 SOI target of 64,485m². The increase was largely due to the additional release of sites in Hume as well as a direct sale in Fyshwick to the Master Builders Association (MBA).

The LDA exceeded its land sales revenue targets for 2015-16, with land sales revenue of $593.7 million, almost $35.4 million above the target set in the SOI of $557.8 million. This resulted in a return to government of $349.0 million, above the SOI target of $313.6 million.

The LDA continues to play an important role in the delivery of government priorities, including the visionary City to the Lake project and re-development of significant sites along Northbourne Avenue, to support urban intensification along transport corridors. The ACT Government’s commitment under the Australian Government’s ARI, effective February 2015, has been and will continue to be an important focus over the next few years, including through the Public Housing Renewal Program, which is providing 1,288 new homes for some of Canberra’s most vulnerable citizens.

During 2015-16 members of the Board met with key industry stakeholders to canvass their views about the challenges and opportunities facing Canberra’s future development in the medium to longer term.

The range of stakeholders was wide, encompassing the national and local chapters of the Property Council of Australia, the Planning Institute of Australia, the Housing Industry Association, the MBA, the Green Building Council of Australia (GBCA), the Urban Development Institute of Australia and the NCA. The views of peak valuation and real estate stakeholders were similarly sought and considered in the broader discussion.

The resultant messages from these consultations were, as in previous years, the need for strategic forward planning and an inclusive plan which caters to all Canberrans, especially first time home owners, recipients of public housing and those who seek to achieve environmental sustainability.

The LDA is committed to achieving these significant priorities.

The LDA’s strong relationship with industry was further demonstrated in a partnership with the MBA to deliver a Display Village in Moncrieff, which opened in March 2016. The village consists of 12 homes.

I give my sincere thanks to my fellow Board members, Deputy Chair Rob Tonkin, Chris Purdon, Jim Shonk and Sandra Lambert who each made significant contributions both at Board meetings and through the Board sub-committees.

I also give my thanks on behalf of the Board, to the LDA CEO, David Dawes, his executives and staff, as well as the numerous companies that contribute to the delivery of our projects. They are the heart and soul of our business and can be proud of the significant achievements made in 2015-16.

Ross Barrett OAMLDA Board Chair


CHIEF EXECUTIVE OFFICER REPORT

2015-16 has been a year of solid achievements for the LDA, with all (SOI) targets being met, particularly in the key target areas of revenue from land sales and residential land releases.

The Chief Minister’s announcement in February 2015 to establish an Urban Renewal ministerial portfolio, demonstrated the Government’s commitment to infrastructure renewal and modern suburban design. In recognition of these objectives, a Coordinator-General, Urban Renewal, has also been established and is supported by the LDA, to bring together the functional areas involved in Urban Renewal activities. This includes City to the Lake, Urban Infill and the Office of the Coordinator-General.

Land ReleasesThe release of 4,024 residential dwelling sites in 2015-16 was above the target set out in the LDA SOI of 3,513. Of note is that the release targets were achieved with a 100 per cent clearance rate for land put to the market, combined with sales results well above reserve prices. This result included the release of 382 sites as part of the public housing renewal program, which will provide new and fit for purpose housing for some of the those most in need in our community.

As acknowledged by the LDA Board Chair in his report, the LDA has achieved its release targets for commercial, industrial and community/non-urban land.

Inventory LevelsThe LDA is working to grow its inventory of serviced residential land to provide maximum choice and flexibility for potential purchasers. As at 30 June 2016, 170 single residential blocks were held in inventory. In addition, six Multi-Unit and eight mixed-use Multi-Unit sites in Molonglo, three Multi-Unit sites in Moncrieff and one Multi-Unit site in Amaroo were serviced and held in inventory, ready for release in line with market demand.

As noted above, an inventory of serviced industrial land has been established with over 30,588m² available for sale in the New West Estate at Hume.

Significant works were completed in Molonglo clearing land of unexploded ordinance that will facilitate the release of the new suburb of Whitlam and future suburbs in Molonglo 3.

The LDA undertook planning studies and community consultation that has led to the zoning of land in West Belconnen for residential development. This will see approximately 11,500 dwellings being released over the next 30–40 years.

Work Health and SafetyWork health and safety (WHS) both in the office environment and in the field continues to be a central component of the LDA’s workplace culture.

The LDA utilises the ACT Government guidelines for managing WHS in construction projects. The principles of the guidelines are embedded in the LDA’s Contract Management System reinforcing the government’s approach to WHS.

The LDA abides by the ACT Government’s Active Certification program. Audits continue to be well received by the LDA’s civil contractors with vast and continuous improvements being made in safety systems across the civil construction industry.

Housing Affordability InitiativesIt has been another steady year for housing affordability. The release of 4,024 dwelling sites by the LDA contributed to stabilising house and unit prices and easing pressure in the rental market. Of particular note has been the release of 924 affordable dwellings including 320 dwelling sites at or below $300,000 which has seen many lower income families entering into home ownership for the first time. In addition, a further 317 families accessed land rent on LDA released sites over the year.

For further information on the land rent scheme refer to: www.lda.act.gov.au/en/land-rent-scheme

Robust population growth is continuing and the contraction in the Federal Public Service has now turned to expansion. This is likely to lift housing demand in the ACT over the coming years.The programs within the ACT Government’s Affordable Housing Action Plan will continue to provide opportunities for moderate to low income earners, in particular through the public and community housing sectors.

The LDA continues to release a number of sites for affordable housing in Moncrieff with 254 dwellings released in 2015-16. Additionally the LDA released 69 dwellings to Public Housing Renewal Taskforce (PHRT) and a further five residential dwellings for affordable housing in Throsby.

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In July 2015 an englobo land parcel known as Denman Prospect Stage 1B was sold to a private developer. The estate will provide in excess of 1,000 dwellings and was sold with a Deed of Agreement which included a clause requiring the provision of no less than 20 per cent of the development, plus an additional 56 dwellings as affordable housing.

In May 2016, the LDA handed over 24 single residential blocks for the development of public housing within the recently completed stage 1A of Denman Prospect to the PHRT to assist in the delivery of new community housing stock.

Within Molonglo Stage 1, the suburb of Coombs will provide 150 dwellings for public housing use which are being developed by PHRT.

Sustainability and Climate ChangeThe LDA has continued to incorporate the principles of ecologically sustainable development to its activities. Sustainability data from all LDA projects is reported under eight key themes:

> energy and emissions;

> water;

> landscape and biodiversity;

> waste and materials;

> influencing design;

> community;

> transport; and

> affordability

This reporting allows the LDA to target and track performance of its sustainability measures throughout the lifetime of its developments.

The LDA has supported the use of sustainability tools such as EnviroDevelopment and Green Star Communities rating.

West Belconnen is on the path to achieving a 6 star rating under Green Building Council of Australia (GBCA) accreditation.

The LDA also provided detailed technical advice to assist in resolving land development issues with the Commonwealth, especially in relation to obtaining environmental clearances under the Commonwealth’s Environment Protection and Biodiversity Conservation Act 1999.

Financial Outcome (from 2015-16)The LDA’s total income and profits in 2015-16 were higher than the levels achieved in the previous financial year. Total income was $617.7 million ($360.9 million in 2014-15) and profit before tax of $247.5 million ($111.6 million in 2014-15). The change from 2014-15 was primarily due to an increase in land sales revenue. The LDA achieved $593.7 million in land sales revenue in 2015-16, which was $240.1 million higher than 2014-15. The increase was largely due to higher than anticipated land sale settlements in Moncrieff, Denman Prospect, Lawson and Greenway, partially offset by the finalisation of land sales in Campbell 5 and Flemington Road and a reduction of land sales in Coombs and Kingston Foreshore.

As at 30 June 2016, the LDA had exchanged sales contracts totalling $380 million, that are scheduled to settle in 2016-17. This level of carry forward of exchanged contracts demonstrates the scale of the LDA’s activities and achievements during 2015-16. As a consequence, the LDA remains in a strong position to continue to make a significant contribution to the Territory’s finances in 2016-17.

Community EngagementThe LDA remains committed to engaging effectively with all Canberrans in a meaningful, accountable, responsive and equitable way. The LDA is continuing to invest time and resources to ensure that the people affected by a decision should have some involvement in the process and outcomes that affect them. The LDA also recognises that there are often areas of knowledge and expertise within the community and amongst stakeholders that can benefit the planning and development of a project.

The LDA’s community engagement strategies and approach vary for each project depending on a range of factors including the project scope, community interest, its location and the extent to which the community can influence the outcome. These strategies use different engagement methods including online engagement and social media, letters, newsletters, community briefings and information sessions and community panel workshops. In addition, LDA officers liaise directly with relevant stakeholder and community groups including community councils, sporting clubs and activity groups about projects and plans they may have an interest in.


A new collaborative community engagement process for the Canberra Brickworks Precinct (CBP) was developed by the LDA’s Urban Projects team and the CMTEDD Community Engagement team, to deliver Request for Proposal (RFP) sales documents with community objectives, as requested by the Board. The CBP team established a Community Panel of six stakeholders to develop Precinct Objectives for the evaluation criteria within the RFP sales documents. This process received considerable support from the engaged community groups and broader community which was reflected in the media. The Community Panel will continue to be involved in the sales process and selection of the preferred tenderer.

The success of the approach was recognised by the ACT Government when the CBP team was awarded the CMTEDD Staff Award 2016 in Innovation for the Canberra Brickworks Community Engagement Panel.

In April 2016, the LDA hosted two international urban renewal experts, Professor Larry Beasley and Mr Gordon Harris, who conducted public lectures, master classes and workshops sharing their experiences on creating successful, sustainable cities valued by the community. A strong focus of their time here was advice on conducting effective community engagement to help influence the future of central Canberra. Community members and representatives from community groups, including the community councils, met with the Professor Beasley and Mr Harris and attended the public events.

Other community engagement activities throughout 2015-16 included:

> Furzer Street Precinct upgrade in Phillip;

> Dickson intersections upgrade;

> Horse Park Drive upgrade and the development of the new suburb of Throsby;

> Parkes Section 3 urban development;

> Woden Bus Interchange upgrade including construction of a new lift and stairs;

> Southquay Greenway Park naming competition; and

> Wright and Coombs development.

In 2015-16 the LDA’s community development program Mingle continued in Bonner and Molonglo Valley (Wright and Coombs) and commenced in Moncrieff. The program is designed to build vibrant local communities within new LDA estates and encourage new residents to feel part of the community that they have joined.

Mingle activities included fitness classes, Bike Day, Cancer Council’s Biggest Morning Tea, Ranger Walk, Easter Egg Hunt and Astronomy Nights.

The LDA has also engaged with the community through other events including the Gungahlin Movie Marathon, ‘Celebrate Gungahlin’ festival, the opening of the Franklin Recreation Park, the Real Estate Institute ACT Home Buyers’ Expo, Parties at the Shops and park naming activities in Southquay Greenway and Campbell.

In July 2016 I engaged the former Commonwealth Auditor-General, Mr Ian McPhee, to review the effectiveness of the governance arrangements in the Land Development Division (including the LDA) and the Procurement and Capital Works (PCW) Division of the Economic Development stream of the Chief Minister, Treasury and Economic Development Directorate. The purpose of the governance review is to identify improvements that can be implemented to provide assurance that appropriate processes are in place for effective governance, particularly with respect to the divisions' adherence to statutory and policy requirements. I am expecting Mr McPhee's report late September / early October 2016.

I would like to finish by acknowledging the contribution of the LDA Board Chair and all Board Members. The dedication the Board members bring to their role reflects their passion for Canberra and its future development.

I would also like to acknowledge the hard working staff within the LDA for their commitment and efforts throughout the year. They can be proud of their achievements in 2015-16.

David DawesChief Executive Officer

Further information can be obtained from:

Chris WilsonDirectorOffice of the Chief Executive Officer+ 61 2 6205 [email protected]

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B.2 PERFORMANCE ANALYSIS

2015-16 OBJECTIVE 1Ensure that an adequate supply of land is maintained to meet market demand and to stimulate economic activity in the residential, commercial, industrial and community land development sectors.

The 2015-16 to 2018-19 four-year Residential Release Program was planned to deliver land for approximately 17,190 dwellings with a target of 3,513 in 2015-16, increasing steadily to 3,713, 4,566, and 5,398 in the following three years.This level of supply is above the estimated level of demand for new housing.

The LDA released 4,024 dwelling sites in 2015-16, which exceeds the published target of 3,513. Public housing renewal is driving urban renewal in key parts of the city, including along the Capital Metro corridor and in the City with the disposal of ageing public housing properties.

The achieved residential dwelling releases included some changes from those forecast in the 2015-16 SOI:

> 210 additional dwelling sites have been released in Moncrieff and 40 additional dwelling sites in Throsby to offset a delay in the release of 300 sites in Taylor due to infrastructure issues;

> sites for an additional 514 dwellings have been released in Coombs to offset other delays including sites for 250 dwellings in West Belconnen, 168 dwelling sites in Forrest held up due to delays in obtaining planning approvals, and a site for 259 dwellings in Parkes that has been deferred to be integrated into a future larger development that will form part of the City to the Lake initiative;

> the release of 2,001 dwellings in stages 1a and 1b of Denman Prospect has increased the available land by 300 dwellings, as sites for 1,700 dwellings had already been released to the market in previous years; and

> the release of the Kingston Foreshore Arts Precinct, together with Block 2 Section 67 at Kingston is anticipated to deliver a total of 500 additional dwellings.

The Commercial Land Release Program included a supply of mixed use commercial sites predominantly to support demand for residential uses in urban renewal areas and infill development in Inner Canberra and the Tuggeranong town centre. The release of mixed use sites is an important part of delivering the ACT Planning Strategy target of achieving 50 per cent of new housing to be delivered as urban intensification. The release of the Coombs local centre will see the development of the first shopping centre in the Molonglo district.

The LDA released 120,725m2 of commercial land to the market in 2015-16, against a target of 57,194m2. Approximately 63,531m² of additional commercial land was delivered comprising additional sites brought forward to offset the anticipated delay in the release of some 45,000m2 of programmed sites. Significant changes to the forecast program included:

> the inclusion of a 40,295m2 mixed use site in the Kingston Foreshore Arts Precinct release;

> 8,367m2 as part of the Government Office Accommodation project in the City; and

> 14,700m2 as part of the Asset Recycling Initiative (ARI) redevelopments of the Allawah public housing site at Braddon.

The demand for general industrial land (IZ1) zoned land is being met from land inventory established in previous years. Demand continues to exist for mixed use industrial land (IZ2) with work continuing to obtain the necessary environmental and planning clearances for future IZ2 land releases in Majura/Pialligo, and Fyshwick and Symonston.

The LDA released 90,687m2 of industrial land to the market in 2015-16, which is above the target of 64,485m². The additional release of sites in Hume as well as a direct sale in Fyshwick to the MBA accounted for the increase.

The Community and Non-Urban Land Release Program supplied a large volume of land required to support community needs arising from Canberra’s urban growth. The LDA released 198,649m2 in 2015-16 against a target of 57,154m2. The additional supply reflects the inclusion of a 91,428m2 site to the Education Directorate for the development of a second school in the Molonglo suburb of Denman Prospect. Notable releases in 2015-16 include the release of the former Higgins school site for redevelopment of 100 independent living units and a 4,575 m2 site for a child care centre.


Asset Recycling Initiative:

The ACT Government signed the National Partnership Agreement on Asset Recycling with the Australian Government in February 2015. Under this program, 18 land based assets are to be sold before the end of 2018-19. The Office of the Coordinator-General, Urban Renewal in CMTEDD is responsible for the implementation of this agreement, with the LDA supporting the sale of these assets through assistance with due diligence, demolition of buildings, sales and marketing and other works. The sale proceeds from

these assets are delivered through the LDA as a special dividend payment to government.

The sites contained under the ARI are public housing and ACT Government commercial buildings, which are delivering urban renewal opportunities across Canberra including in the City, and particularly in Dickson and along the Capital Metro corridor.

Section 52, Braddon was the first ARI site to be released to market in February 2016 and contributed 515 dwellings and 14,700m² to the residential dwelling and commercial area release targets respectively.

District/Suburb Block Section Residential Dwellings

Commercial Site Area

Industrial Site Area

Community Site Area

ARI/Urban Renewal

Braddon 1 52 515 14,700

Belconnen

Bruce 3 10 48,042

Higgins 4 11 100 40,482

Higgins 3 11 4,575

Holt 12 52 12 1,263

Nicholls 1 83 1,570

Scullin 28 43 1,800

Central Canberra

Barton 26 33 2,566

City 1 & 3 113 74

City 35 100 300 8,367

Downer 4 61 300

Kingston 2 67 100 3,697

Kingston Arts Precinct 49 400 40,295

Gungahlin

Moncrieff 710

Throsby 543

Molonglo

Coombs 514

Denman Prospect 1 26 91,428

Denman Prospect Various Various 301

Tuggeranong

Greenway 1 78 229 10,967

Tharwa 11 10 32,470

Woden/Weston

Deakin 1 & 24 68 & 84 385

Garran 3 24 7,812

Rivett 22 28 1,944

Weston Creek part 1218 6,937

Industrial Estates

Fyshwick 14 83 3,035

Hume 72 22 6,390

Hume 9 21 22,671

Hume 10 21 32,211

Hume 11 21 24,868

Mitchell 29 4 1,512

4,024 120,725 90,687 198,649

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2015-16 OBJECTIVE 2Contribute to the provision of advice to Government on the ACT property market to support the development of its land release targets.

The LDA has continued to provide advice to ACT Government on the state of the ACT property market.

This has been undertaken through regular briefings on the state of the housing market, turnover and prices through the ACT Government’s Residential and Commercial Advisory Group meetings held quarterly over 2015-16.

In addition, reports on economic trends and residential land and building activity are regularly produced. An updated version of these reports relating to 2015-16 is in development.

In 2014-15, an Aged Care Dwelling demand model was developed to forecast the demand for residential aged care facilities and retirement village dwellings in order to inform the number and location of sites that are required to meet the needs of an ageing population.

Updates to the Aged Care Dwelling demand model were undertaken in 2015-16. Additionally, updates to the Child Care Demand model were undertaken to track supply and forecast demand for child care facilities to inform the number of location of sites required to meet the needs in Greenfield areas and areas of urban intensification.

2015-16 OBJECTIVE 3Contribute to the delivery of the Government’s policies and priorities as they relate to land development, urban renewal and urban sustainability.

The LDA supports key strategic priorities such as Public Housing Renewal and other Urban Infill projects such as City to the Lake, the Kingston Arts Precinct, ARI and the Capital Metro corridor.

The ACT Planning Strategy has set a target to deliver 50 per cent or more of new housing through urban intensification. Of the 17,190 dwelling sites in the 2015-16 to 2018-19 ILRP, 61 per cent are within the existing urban boundary. In 2015-16, the LDA delivered 1,956 out of a total of 4,024 dwelling sites in the urban area across Braddon, Dickson, Downer, Greenway, Higgins, Holt, Kingston, and the City.

The LDA has contributed to improving sustainability by increasing urban density and green infrastructure. Increasing urban density reduces car dependence and increases opportunities for active travel, promoting greater lifestyle choices. In all estates, the LDA provides for pedestrian and cycle connections

within the estate, as well as connecting to existing networks outside the estate, enhancing opportunities for pedestrian activity. All housing is located within 400 metres safe walking distance to a bus route.

The LDA has initiated a number of measures that deliver a more sustainable Canberra. These include seeking Green Star Community accreditation for West Belconnen, compulsory solar hot water in Lawson and Coombs, Light Emitting Diode (LED) street light trials in Lawson and community gardens in a number of estates.

With endorsement from the Chief Minister, the LDA and the MBA (in association with Renaissance Homes and other sponsor agencies) developed the Deakin Charity House Project. The Charity House Project will deliver two house and land packages to market for auction in late 2016, the net proceeds of which will be distributed to local charities supporting people with a disability. The Project is based on:

> showcasing adaptability features;

> good design including solar orientation, efficient use of space and light;

> sound selection of materials which maintain a balance of amenity and low lifetime cost; and

> inclusions that provide high efficiency ratings for energy and water appliances.

The LDA’s Mingle program held a number of events focussing on sustainability including Actsmart Pre-Build Energy Efficiency Workshops, a resident Open Green Home Tour and Ranger Walks within Molonglo Valley.

The LDA partnered with other areas of ACT Government in the refurbishment of the Stromlo Cottage property, which will be used as a community facility for the Molonglo Valley community from 2016.

The LDA won the National Property Council’s Excellence and Innovation Award for Best Master Planned community for the suburb of Franklin.

2015-16 OBJECTIVE 4Cultivate and maintain productive relationships across the ACT Government.

The LDA works closely with Economic Development and other relevant parts of government to provide technical input to various forums that assist in coordinating land delivery. This includes the Capital Works Coordinators Working Group to improve the integration of design management and delivery of capital works with estate works; the Residential and Commercial Advisory Committees; and other informal management level discussion groups.


The LDA also provided detailed technical advice to assist in resolving land development issues with the Commonwealth, especially in relation to obtaining environmental clearances under the Commonwealth’s Environment Protection and Biodiversity Conservation Act 1999 (EPBC).

The Kingston Arts Precinct has seen the LDA work closely with Cultural Canberra and the Environment and Planning Directorate (EPD) in ensuring the needs of each stakeholder group are acknowledged through the sales documentation and subsequent release to market. A key focus of the LDA’s Mingle program has been developing productive relationships across ACT Government including the following programs:

> partnering with ACT Property Group on the refurbishment of Stromlo Cottage;

> delivery of EPD’s Actsmart program to residents in Molonglo Valley;

> promotion of Capital Metro initiatives at Mingle events;

> coordination of ACT Government involvement at major regional events including the ‘Celebrate Gungahlin’ festival and Gungahlin Movie Marathon event;

> partnering with the Education Directorate for the delivery of the community programs in Molonglo Valley, Bonner, Franklin, Moncrieff and Throsby;

> establishing opportunities with Territory and Municipal Services Directorate (TAMS) activities including Molonglo Valley Ranger Walks, Molonglo River Corridor, ACT NoWaste; and

> utilising LDA information forums such as the Molonglo Valley Resident Advisory Group and Sales Information sessions to introduce guest speakers from the PHRT, TAMS and EPD.

The LDA has also partnered with the following agencies/directorates across 2015- 2016:

> the Office of the Coordinator-General (OCG), Community Services Directorate (CSD) and the PHRT in the preparation for sale of ARI sites;

> the Asbestos Response Taskforce in the rollout of the sales of the asbestos-affected blocks; and

> ACT Place Names within EPD for the development of two park naming initiatives in Campbell and Greenway.

In addition the LDA coordinated a number of ACT events with support of Access Canberra, Cultural Canberra, TAMS, ACTPG and VisitCanberra.

2015-16 OBJECTIVE 5Cultivate and maintain productive working relationships and linkages with the private sector.

The LDA works closely with and undertakes regular engagement activities with the private sector through pre-tender briefings, post-sale developer meetings, sponsorships, engagement of specialist consultants, and representation at roundtables with industry advocates.

Within Greenfield Estates the LDA continues to foster and maintain relations with private industry through the following brief examples. The LDA has entered into a Joint Venture agreement with the Riverview Group for a unique urban development in West Belconnen. The project will involve a master planned community spanning the ACT/NSW border, which will provide a land supply of 11,500 dwellings over the next 30-40 years. The Joint Venture will implement innovative methods for the management of the interface with the Murrumbidgee River corridor, and will provide a range of community and commercial infrastructure.

In July 2015 the LDA entered into contracts with a locally owned private entity known as Capital Estate Developments for the sale of 377 residential sites and an englobo land parcel for residential, community and commercial uses within Denman Prospect. Capital Estate Developments and the LDA continue to work together to deliver completed public housing sites, affordable housing, community, childcare and place of worship uses, which will be ultimately handed back to the Territory. The LDA partnered with the MBA in 2015-16 on two key initiatives:

> the Deakin Charity House Project as referred to in Objective 3; and

> the development and successful launch of the Moncrieff Display Village, which enabled networking opportunities with both the MBA and its associated builders and suppliers. The LDA partnered with a number of organisations for the delivery of the Gungahlin Movie Marathon in June 2016. This included the Gungahlin Community Council, My Gungahlin, Communities@Work and local Gungahlin businesses.

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2015-16 OBJECTIVE 6Operate efficiently in the markets in which it operates and provide agreed returns to the Territory.

As at 30 June 2016, the LDA received land sales revenue totalling $593.7 million in the period since 1 July 2015 against the SOI of $557.8 million.

2015-16 OBJECTIVE 7Ensure that key commercial decisions on land in the ACT are consistent with the long-term sustainability of the Territory.

The LDA ensures its key commercial decisions on land are made with due consideration to the sustainability of the Territory by identifying and integrating economic, social and environmental factors into decision making. These elements are transferred into the business cases that are considered by the LDA Board for all major developments.

2015-16 OBJECTIVE 8Engage the community in a timely manner in the land development process and continue to improve community engagement processes for high profile redevelopments.

The LDA Community Engagement team continuously reviews and improves its strategies and practices to ensure open, proactive and meaningful community engagement. Comprehensive communications strategies are prepared for all urban renewal projects and these are tailored to specific target audiences and project goals. The Canberra Brickworks development, in particular, involved a range of community engagement processes aimed at ensuring close involvement by the community in the proposed development. Following extensive community engagement, in August 2015 the Chief Minister announced the development proposal for the Brickworks precinct. The proposal took account of feedback from the community which resulted in broad support for the proposal. To prepare for the sale process for the Canberra Brickworks Precinct, the LDA convened a ‘community panel’ to contribute to the Request for Proposal (RFP).

This new engagement approach generated strong collaboration between the LDA and the community in defining the precinct objectives. As a result of the effectiveness of this approach, planning is underway to apply a similar approach to future urban renewal projects.

The LDA continues to liaise with key contacts within the Franklin, Bonner, Wright, Coombs and Moncrieff communities through the Mingle program. Regular forums are held with both Molonglo Valley and Bonner residents to establish good channels of communication and feedback. Community surveys are conducted regularly to ensure the programs are tailored for each community. The LDA commenced a Gungahlin community forum with representatives from Bonner, Crace, Casey, Franklin and Forde to establish improved links with connecting suburbs.

The LDA partnered with ACT Place Names in the development of park naming initiatives at Campbell and Greenway. This involved significant consultation and engagement with both the families of possible name options, as well as the community via a polling system for Campbell, and a nomination process for Greenway.

The LDA continues to improve the process of providing current community information to new residents via social media and online tools and has a number of ‘open’ facebook pages to encourage community interaction and engagement.




B.3 SCRUTINY

Standing Committee on Public Accounts Report No. 4 – Inquiry into Annual and Financial Reports 2012-13

Recommendation No. and Summary Action Status

11. The Committee recommended the ACT Government continue to take measures to realise a new convention centre.The ACT Government agreed noting work to progress the Australia Forum Convention Centre project is continuing with a functional brief expected to be finalised by the end of 2013-14. The next step will be the preparation of a reference design, which will be a key input to the final business case, which will be completed by the end of 2014-15. This work will continue to be undertaken in close collaboration with the Canberra Convention Bureau and Canberra Business Council.

In 2014-15 a reference design, commercial and economic analysis including market sounding and ancillary facilities studies have been prepared. The design and analysis will support the ACT Government’s decision making on a new convention centre.Work on the business case will continue into 2015-16.

Complete. Australia Forum is investment ready.

Standing Committee on Planning, Environment and Territory and Municipal Services Report No.4 – Report on Annual and Financial Reports 2012-13


1. The Committee congratulated the Government for the success of the Planning Institute of Australia award for the City to the Lake Project and recommended the Government continue to seek guidance from authorities such as the Planning Institute of Australia.The Government agreed noting a Project Reference Group comprising representatives of these institutes will continue to review and advise on the City to Lake project in the next detailed planning phase of the work.

Continuing with peer review from the planning and design profession through committees such as the Project Reference Group and Design Review Panels. The first stage of the project on West Basin has progressed through peer group review from the planning and design profession and is nearing works approval after significant consultation and dialogue with the community.The LDA will continue to consult with the planning and design profession as it progresses further phases of the City to the Lake project.

Ongoing.Works Approval to commence the first stage of the West Basin boardwalk and associated parkland was received from the National Capital Authority (NCA) in May 2016.The LDA continues to work on the final detailed designs for the remainder of the West Basin Waterfront, which is expected to receive NCA Works Approval by the end of 2016.As other elements of the City to the Lake project move towards design stage, the LDA will continue to engage with the LDA Design Review Panel, community and professional sector.

3. That, noting the increase in land releases, the LDA continues to provide information to the community on its development in Denman Prospect.The Government agreed noting the LDA will continue to liaise with community and industry, as part of the design and development of these areas and through the preparation of Estate Development Plans, on:• proposed development outcomes;• sale of finished blocks or private

development of larger packages of land; and

• planning, approval and construction processes to improve outcomes in the Molonglo Valley.

The community and industry is continuing to be engaged at all stages of development in Denman Prospect.

Consultation with the community will continue until the suburb of Denman Prospect is completed. Completion of the suburb is anticipated within an eight year period.

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4. That the ACT Government looks at the success of the recent land auction in Lawson as a model for sales in future new suburbs.The GovernmEnt agreed in principle. The LDA will review the process and results from the Lawson auction while continuing to make commercial decisions on land sales based on market demand through releasing a variety of land and housing options.

The ACT Government releases land by a variety of methods to ensure equitable access by all Canberrans. Lawson’s unique location and limited supply lent the suburb to release by auction, which maximised the return for the Territory. However, other release methods are required to meet other social and policy objectives, including Land Rent options, affordable housing, adaptable housing, as well as Public Housing and Community Housing.The LDA will continue to weigh the return for the Territory against government objectives to ensure a balance is achieved. This will result in continued release by auction, ballot, over the counter and tender.

Complete and ongoing.For the LDA estates the LDA weighs up and considers the return for the Territory against Government objectives to ensure a balance is achieved.

5. The Committee recommended the Government continues the use of the Green Star Communities Tool.The Government agreed.

The LDA is continuing use of the Green Building Council Green Star Communities rating tool and is currently progressing certification for both Lawson and West Belconnen developments.

In Progress.The LDA has continued the use of the Green Star Communities rating tool for West Belconnen and is expecting a Green Star Communities 6 Star rating for the development. The suburb of Lawson was also used as a pilot project to test the tool. While Lawson was unable to achieve a 4 star rating without significant resources provided, the exercise provided valuable information to the LDA and the Green Building Council of Australia as to the performance of a typical ACT greenfield development.

Select Committee on Estimates 2014-2015 Report No.1 – Inquiry into Appropriation Bill 2014-2015 and the Appropriation (Office of the Legislative Assembly) Bill 2014-2015


87. The Committee recommended the Government ensure the scoping study for a new Theatre Facility include the possibility of establishing a National Performing Arts Centre in the ACT.The Government agreed stating CMTEDD, in conjunction with the Cultural Facilities Corporation, will explore consideration of a performing arts facility of national status within the existing funding envelope identified for theatre studies.

Williams Ross Architects together with Marshall Day Entertech, two of Australia’s leading theatre design firms, have been engaged to develop a concept design for a new performing arts facility for Canberra. The design will take into account the need for the new facility to be of an appropriate status for the national capital and to play a major role on the national theatre touring circuit, in terms of its size, facilities and physical presence in the city.

The action for this recommendation is the responsibility of the Office of the Coordinator-General within CMTEDD.




B.4 RISK MANAGEMENT

Risk management in the LDA is monitored and regularly reviewed by the LDA Board, including through the LDA BARC, and the LDA Executive, with recommendations in relation to risk management provided by these bodies and the ACT Audit Office as appropriate. The LDA Executive is committed to, and places a high priority on, effective risk management across the full range of organisational functions. The overarching approach to managing risk at strategic and operational levels includes incorporation of appropriate fraud prevention and control processes and practices, to ensure the early identification and treatment of emerging risks.

All planning processes within the LDA, including strategic planning, and organisational project management, incorporate risk management.

The LDA’s approach to risk management conforms to the International Standard ISO 31000:2009 - Risk Management - Principles and Guidelines. This standard applies throughout the ACT public sector.

During 2015-16:

> the existing LDA risk management documents were reviewed;

> the LDA recruited a Risk and WHS Compliance manager to assist with the review; and

> the LDA abides by the ACT Government’s Active Certification program. Audits continue to be well received by our civil contractors with vast and continuous improvements being made in safety systems across the civil construction industry.

In April 2016, the LDA BARC approved a review of the suite of risk management documents within the Agency. That review produced a Strategic Risk Register 2016-17; Risk Management Framework and Policy Statement 2016-17; and Risk Management Plan 2016-17 for consideration by the Committee and Board with a view to implementing the revised suite for the beginning of the 2016-17 financial year.

A complementary suite of compliance documents was also prepared for the LDA BARC to augment the revised risk management suite. These documents will be implemented from the beginning of the 2016-17 financial year following approval by the BARC and Board. Risks continue to be reviewed and reported regularly through project business plans, to ensure risk management strategies are effective and current.

Monitoring of Work Health and Safety (WHS) issues during the construction phase of projects is undertaken by the relevant contractor or consultant and regularly reported to the LDA. The LDA reviews the information provided and strategic risks are identified and reviewed monthly by the LDA Board to ensure strategies are being put in place by contractors and consultants to address identified emerging strategic safety risks or trends.



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B.5 INTERNAL AUDIT

The LDA BARC and internal auditors provide independent assurance and assistance to the LDA Board on risk management, financial controls and legal compliance, as well as external accountability responsibilities.

The LDA BARC Charter provides the framework for the conduct of the internal audit function of the LDA. Annual and rolling forward audit programs are guided by governance, risk and compliance programs and supported by an audit recommendations register.

The following internal audits were completed during 2015-16:

> the LDA Financial Delegations;

> the LDA Management and Procedures in the Development of Greenfield and Urban Infill Sites for Land Release (after inclusion in the ILRP);

> the LDA Procurement and Tendering Processes; and

> the LDA Performance in the Development of LDA Estates.

The LDA BARC met six times during 2015-16.

Membership of the Internal LDA Board Audit and Risk Committee

Name of Member Position Meetings attended (of the total of 6)

Robert Tonkin Chair 6

Ben Ponton* Member 4

Karen Doran* Member 1

Sandra Lambert Member 5

Dan Stewart** Member 1

* Mr Ben Ponton’s membership commenced in October 2015 and Ms Karen Doran acted in Ben Ponton’s position for the June 2016 meeting.

** Mr Dan Stewart’s membership of the LDA BARC ceased on 20 July 2015.

A member of the ACT Audit Office attended all LDA BARC meetings as an observer.



B.6 FRAUD PREVENTION

The ACT Integrity Policy requires the ACT Government directorates to prepare a Fraud and Corruption Prevention Plan and Fraud Risk Assessment every two years. As part of the review process an integrity risk assessment must be undertaken assessing changes to the organisation’s operations and environment since the previous plan.

The LDA Fraud and Corruption Control Plan 2015-2017 (the Plan) provides the basis of the LDA’s responsibilities as they relate to the prevention of fraud and corruption. Fraud risks are captured in a fraud risk register that forms part of the Plan. The LDA Executive, LDA Board and LDA BARC oversee the development and implementation of fraud prevention activities consistent with the Plan.

Fraud awareness and ethics training is available through Fraud Information Sessions, and is a core component of CMTEDD Tier One Induction. This training is available to all LDA staff. Fraud awareness education programs will continue to be made available to all employees in 2016-17.

SENIOR EXECUTIVE RESPONSIBLE FOR BUSINESS INTEGRITY RISKThe Senior Executive Responsible for Business Integrity Risk (SERBIR) during 2015-16 was the Executive Director Corporate Management CMTEDD. SERBIR reports were provided to the LDA Board and the LDA BARC. During 2015-16 there were no findings of fraudulent behaviour.




B.7 WORK HEALTH AND SAFETY

Work Health and Safety (WHS) is a priority for the LDA and is managed in accordance with the statutory provisions of the Work Health and Safety Act 2011 (the WHS Act) and supported by a range of whole of government work health and safety and return to work policies and initiatives. CMTEDD Corporate People and Capability team and the CMTEDD Safety Support team provided guidance and support to the LDA in implementing the requirements under the WHS Act.

During 2015-16 the LDA was not issued (under Part 10 of the WHS Act) with any improvement, prohibition or non-disturbance notices, nor did the LDA fail to comply with any enforceable undertakings under Part 11 or Part 2 (Divisions 2.2, 2.3 and 2.4) of the WHS Act.

HEALTH AND SAFETY STRUCTURES AND CONSULTATION ARRANGEMENTSThe LDA was represented on the ED Tier 2 Health and Safety Committee which fed into the CMTEDD Tier 1 Health and Safety Committee. Both Tier 1 and Tier 2 Committees met on a quarterly basis to provide a mechanism for consultation, coordination and communication between employees, represented unions and management. The Committees monitored the effectiveness of the safety management system, considered injury prevention initiatives and programs, and promoted the achievement of improved health and safety outcomes. The CMTEDD Safety Support Team attended Committee meetings to provide safety advice.

The LDA Board received monthly WHS updates and copies of the Health and Safety Committee meetings minutes were uploaded to the staff intranet. The LDA has two elected Health and Safety Representatives.

During the reporting period:

> the LDA Executives and staff attended WHS training sessions delivered by the CMTEDD Safety Support Team;

> a WHS Risk Register Management Procedure was developed;

> work commenced on the development of a WHS Management System (WHSMS) specific to the LDA that will align with the WhoG WHSMS Framework; and

> the RiskMan Accident and Incident reporting tool continued to be promoted to staff across the LDA.

INJURY PREVENTION AND HEALTH AND WELLBEINGThe LDA implemented a range of injury prevention and health and wellbeing initiatives and continued to promote a culture where health, safety and wellbeing are a part of everyday business. Initiatives implemented included:

SAFETY PROMOTION

> promotion of Safe Work Australia's Safety Month in October 2015;

> a range of activities were held during the month to help reduce the risk of accidents and incidents within the office; and

> development and promotion of WHS policies.

HEALTH AND WELLBEING

> ‘Health and Wellbeing’ reimbursement initiative (not exceeding $100 per annum, from April 2015 to March 2016) to financially support employees to participate in health and wellbeing activities;

> representation on the WhoG Health and Wellbeing Network and WHS working group through CMTEDD Corporate People and Capability branch representation;

> influenza vaccinations offered onsite to staff (April 2016);

> mental health awareness promotion activities (October 2015);

> healthy weight week held in February 2016 was promoted across the LDA including the delivery of a range of health promotion activities. For example, cooking demonstrations by Nutrition Australia; and

> staff participated in a ‘10,000 steps a day’ challenge during healthy weight week to improve health and wellbeing.

HEALTH AND SAFETY TRAINING

> induction sessions that included WHS information;

> management of workplace psychological illness in the workplace program for supervisors; and

> First Aid Officer and Health and Safety Representative training.

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EARLY INTERVENTION AND INJURY MANAGEMENT

> ongoing provision of work station assessments;

> engagement of rehabilitation providers for both compensable and non-compensable injuries/illnesses to support employees to an early, safe and supported return to the workplace;

> a carer’s room, located within the workplace, is provided for staff to utilise to assist in reducing pressures that can arise through caring responsibilities;

> provision and promotion of professional and confidential counselling services available to staff and their families through the Employee Assistance Program (EAP) provided by Converge International;

> provision and promotion of the EAP Manager Assist Program; and

> NewAccess early intervention services information sessions were provided for staff.

NOTIFIABLE INCIDENTSThe LDA did not report any ‘notifiable incidents’ to the regulator in accordance with Part 3, Section 38 of the Work Health and Safety Act 2011.


Michelle WicksDirectorCMTEDD People and Capability+ 61 2 6207 [email protected]


B.8 HUMAN RESOURCES MANAGEMENT

Under an arrangement between the LDA and CMTEDD, the CMTEDD Corporate Human Resource (HR) unit provided strategic, operational and technical advice and HR support to executives, managers and staff of the LDA. The unit performed a number of HR functions for the LDA and facilitated the provision of support directly from Shared Services. The human resource priorities were guided by the CMTEDD Corporate Framework, and as specified within the CMTEDD Strategic People Plan 2015-2017, centred on:

> Culture: To develop and maintain a positive workplace culture that positions CMTEDD (including the LDA) as a collaborative workplace that optimises retention and engagement of staff.

> Capability: To identify, develop and maintain a workforce with the skills and capabilities required to meet organisational goals now and into the future.

> Accountability: To maximise relevant legislative and policy compliance, and contribution to the One Government approach.

LEARNING AND DEVELOPMENTThe LDA continued to provide learning and development opportunities to strengthen its workforce, build organisational capability, encourage retention and enhance ongoing performance. This has been achieved by providing a range of in-house learning and development opportunities provided as part of the CMTEDD Learning and Development Program as well as utilising the ACT Public Service training calendar, attending conferences and various specialist programs.

Learning and Development activities offered in-house included, but were not limited to, the programs outlined below.

IN-HOUSE LEARNING AND DEVELOPMENT

Respect, Equity and Diversity (RED) (General and Managers): These training programs were designed to increase awareness and understanding of the ACT Public Service RED Framework. The manager’s training looked specifically at managerial responsibilities, particularly their role in bullying prevention.

Cultural Awareness Training: This program increased staff understanding and awareness of Aboriginal and Torres Strait Islander cultures, and assisted in the development of effective communication and engagement with Aboriginal and Torres Strait Islander people.

Work Health and Safety: A range of WHS training is provided as outlined in Section B.7.

Privacy: Introductory Privacy training increased participants’ knowledge of the Information Privacy Act 2014 and awareness of the issues that arise in the debate about information privacy and the use and disclosure of personal information.

Freedom of Information: The ACT Government Freedom of Information (FOI) training introduced the operations of the Freedom of Information Act 1989, FOI processing and the exemption provisions.

Fraud and Ethics Awareness: This program enhanced staff awareness and understanding of obligations and issues in relation to fraud and ethics.

Managing Psychological Illness in the Workplace: This program provided managers and supervisors with the knowledge and skills to manage workers who experience psychological ill health.

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OTHER INTERNALLY FACILITATED IN-HOUSE LEARNING AND DEVELOPMENTStaff Induction: The induction program was divided into two half day sessions, with the first providing new employees with an overview of the functions of CMTEDD (including the LDA) and an understanding of expectations in the workplace, conditions of service and WHS. The second session focused more specifically on the ED portfolio and provided greater detail of business units and their objectives, local WHS and staff consultative arrangements. This included staff gaining an understanding of how land is developed in the ACT.

Executive Assistants Network: A formal network was established to support the professional development of Executive Assistants and related administrative professionals in CMTEDD. Network members were able to participate in quarterly information sessions, including participation in the ACTPS Executive Assistance and Business Support Conference in August 2015, coordinated by CMTEDD.

Employee Mobility Program: The program was designed to contribute to workforce agility and employee engagement through the provision of opportunities to gain experience beyond current roles. A pilot program involving the Senior Officer Grade A cohort was undertaken. Three employees within CMTEDD were successful in gaining placements, including an LDA staff member.

Recruiting a Diverse Workforce: This program introduced participants to the CMTEDD Workforce Diversity Strategy, barriers to employment, pathways available to recruit people from diverse groups, and information on the Australian Government’s Employment Assistance Fund.

Total Records Information Management (TRIM) Training: This training develops the skills of staff who use the TRIM dataset and provides the skills necessary to register documents and how to use the action tracking capabilities.

Dissemination Limiting Marker (DLM) Information Sessions: This training session introduces staff to the change in information security and how to apply the dissemination limiting markers to emails and documents.

OTHER WHOLE OF GOVERNMENT LEARNING AND DEVELOPMENT

During the year, LDA continued its commitment to WhoG learning and development activities, including participation in the Executive Professional Development Presentation series. LDA also had one participant in the 2015 ACTPS Graduate Program.

SHARED SERVICES TRAINING

Shared Services Training Calendar was promoted to staff with approximately twelve staff attending training with an estimated cost of $2,761.

STUDIES ASSISTANCE

LDA supported one staff member through the Studies Assistance Program by providing paid and unpaid leave payment or course costs during the reporting period with an investment by the LDA of $4,950.

WORKPLACE RELATIONSConditions of employment for LDA employees are provided by two stream based enterprise agreements including the ACT Public Service Administrative and Related Classification Enterprise Agreement 2013-2017 (the Administrative Agreement) and the ACT Public Service Technical and Other Professionals Enterprise Agreement 2013-2017 (the Technical and Other Professionals Agreement). These agreements continued operation throughout the 2015-16 reporting period. The Technical and Other Professionals Agreement introduced a new classification structure for Infrastructure Officers, being engineering, architecture and project management professionals engaged in major or significant infrastructure projects. A second stage transition as per the terms of the agreement, allowed for eligible employees to translate to Infrastructure Manager/Specialist classifications. Seven LDA positions were translated to this classification structure in May 2016.

Throughout the 2015-16 reporting period, LDA utilised attraction and retention incentives under the terms of the ACTPS enterprise agreements to attract and maintain a skilled and diverse workforce.


Attraction and Retention Incentive (ARIn)

Description No. of Individual ARIns

Number of ARIns as at 30 June 2016 5

Number of employees who transferred from SEAs during the period 0

Number of ARIns entered into during period 2

Number of ARIns terminated during period 9

Number of ARIns providing for privately plated vehicles as at 30 June 2016 0

Description Classification Range Remuneration as at 30 June 2016

Individual and Group ARIns Senior Officer Grade B to Infrastructure Officer 5

$146,790 - $173,790

STAFFING PROFILEFTE and Headcount by Division/Branch

Division/branch FTE Headcount

Office of the Deputy Director-General /

Deputy CEO

4.0 4.0

Strategic Finance 13.7 14.0

City to the Lake 6.4 7.0

Greenfield 28.8 29.0

Sales, Marketing and Land Management 21.7 22.0

Urban Renewal 22.2 23.0

Total 96.8 99.0

FTE and Headcount by Gender

Description Female Male Total

FTE by Gender 51.8 45.0 96.8

Headcount by Gender 54.0 45.0 99.0

% of Workforce 54.5% 45.5% 100.0%

Headcount by Classification Group and Gender

Classification Group Female Male Total

Administrative Officers 16 7 23

Executive Officers 3 6 9

Professional Officers 3 3 6

Senior Officers 32 29 61

Total 54 45 99

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Headcount by Employment Category and Gender

Employment Category Female Male Total

Casual 0 0 0

Permanent Full-time 37 34 71

Permanent Part-time 7 0 7

Temporary Full-time 8 11 19

Temporary Part-time 2 0 2

Total 54 45 99

Headcount by Diversity Group

Description Headcount Percentage of agency workforce

Aboriginal and/or Torres Strait Islander 2 2.0%

Culturally and Linguistically Diverse 12 12.1%

People with a disability 6 6.1%

*NB: Employees may identify with more than one of the diversity groups.

Headcount by Age Group and Gender

Age Group Female Male Total

Under 25 2 1 3

25-34 14 6 20

35-44 18 13 31

45-54 15 14 29

55 and over 5 11 16

Total 54 45 99

Average Length of Service by Gender

Description Female Male Total

Average years of service 8.4 9.6 8.9


Recruitment and Separation Rates by Branch

Division/branch Recruitment Rate Separation Rate

Office of the Deputy Director-General 0.0% 0.0%

Strategic Finance 7.5% 7.5%

City to the Lake 0.0% 0.0%

Greenfield 7.9% 11.8%

Sales, Marketing and Land Management 8.0% 0.0%

Urban Renewal 0.0% 12.7%

Total 5.3% 7.9%

Recruitment and Separation Rates by Classification Group

Classification Group Recruitment Rate Separation Rate

Executive Officers 83.6% 11.9%

Administrative Officers 5.9% 11.9%

Professional Officers 0.0% 0.0%

Senior Officers 5.3% 7.1%


Michelle WicksDirectorCMTEDD People and Capability+ 61 2 6207 [email protected]

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B.9 ECOLOGICALLY SUSTAINABLE DEVELOPMENT

CONTRIBUTION TO ECOLOGICALLY SUSTAINABLE DEVELOPMENT

BACKGROUND

Each year the LDA comprehensively reports on sustainability in its core business – land development. This approach covers environmental, social and economic considerations in LDA operations, thus helping to address the principles of Ecologically Sustainable Development.

The 2015-16 LDA SOI outlined a commitment by the LDA to:

> ‘contribute to the delivery of the Government’s policies and priorities as they relate to land development, urban renewal and urban sustainability’;

> ‘ensure that key commercial decisions on land in the ACT are consistent with the long-term sustainability of the Territory’; and

> ‘deliver high quality, sustainable developments, including public realm and community development’.

The SOI also included six non-financial Key Performance Indicators (KPIs). In this section of the Annual Report, the LDA is addressing the KPIs covering urban water cycle management, biodiversity and landscape and design excellence. The KPIs regarding housing affordability and sustainable community programs are also partially addressed in this section.

In 2015-16 the LDA has continued to focus on delivering urban intensification in a sustainable way in line with ACT Government targets. Of the projects reported on in this section, more than half are located in existing urban areas. These sites help to increase density in town centres and along transport corridors, and provide a diversity of housing options for Canberra. In many of these sites the LDA needs to balance complex requirements such as decontamination and the creation of quality urban open spaces.

The LDA had previously received a number of achievements which have received industry recognition. For instance:

> Wright received EnviroDevelopment re-certification in the elements of ecosystems, energy, waste and community in 2013-14, making it one of Australia’s most sustainable developments;

> Wright and Coombs received re-certification under the ecosystems, energy, waste and community categories of the Urban Development Institute of Australia (UDIA) EnviroDevelopment program.

More recently, the LDA has received the following achievements:

> Franklin received the Property Council of Australia’s 2016 Award for Best Master Planned Community in Australia;

> Campbell 5 open space received the 2016 Master Builders and Cbus Excellence in Building Award for Landscape Design and Construction Commercial;

> Westside Action received the Australian Institute of Architects’ 2016 ACT Architecture Award for Westside Acton for Sustainable Architecture.

In 2015-16, work progressed on West Belconnen as a pilot project for the Green Star – Communities rating tool developed by the Green Building Council of Australia (GBCA). This is a national scheme to assess the sustainability of community-level projects. The LDA, with other Government Land Organisations, has been a sponsor of the tool. The suburb of Lawson was also tested against the Green Star tool. Due to the development stage Lawson was at when the test was undertaken, the possibility for Lawson to achieve a creditable Green Star rating was significantly reduced. However, the exercise provided valuable information to the LDA and the GBCA as to the performance of a typical ACT development.


SUSTAINABILITY THEMES

The LDA has identified the following key sustainability themes for reporting in its projects:

> energy and emissions

> water

> landscape and biodiversity

> waste and materials

> influencing design

> community

> transport

> affordability

REPORTING PHASES

LDA projects progress through a process of development. Different stages of this process have been targeted as Reporting Phases. The four phases cover the major steps which are necessary for an area of land to be developed and sold, and are divided by key milestones.

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The Reporting Phases and Key Milestones are shown in the figure below.

Due Diligence

Refers to projects where due diligence procedures are being

undertaken to ensure the land is ready for development

Post Occupancy

Refers to projects where civil works have been completed, assets have

been handed over, and people are living or working in the area

Planning

Refers to projects that are being planned, but are prior to Estate

Development Plan approval

Civil Works

Refers to projects where planning is complete but civil works and

landscaping are underway

Business Plan approval

Handover of assets

End of LDA involvement

Estate Development Plan approval


Due Diligence Phase Reporting

The Due Diligence Phase refers to projects where due diligence procedures are being undertaken to ensure the land is ready for development (for example ecological, contamination and other studies). These processes influence ‘where, what and how’ development will occur on each site. This Phase includes LDA projects that have yet to reach sale or Business Plan Approval for 2015-16.

In 2015-16, 30 sites have been reported within the Due Diligence Phase. This includes 17 urban release sites.

Planning Phase Reporting

The Planning Phase includes LDA projects where more detailed planning is underway. This Phase includes projects that are between Business Plan Approval and Estate Development Plan Approval for 2015-16.

In 2015-16, eight LDA projects have been reported within the Planning Phase.

Civil Works Phase Reporting

The Civil Works Phase refers to projects where planning is complete but civil works and landscaping activities are underway. This Phase includes LDA projects that are between Estate Development Plan Approval and handover of assets for 2015-16.

In 2015-16, six LDA projects have been reported within the Civil Works Phase.

Post Occupancy Phase Reporting

The Post Occupancy Phase refers to projects where civil works have been completed, assets have been handed over, and people are living or working in the area. LDA projects are reported in this Phase until the end of LDA involvement.

In 2015-16, eight LDA projects have been reported within the Post Occupancy Phase.

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PROJECTS REPORTED IN 2015-16

The following table indicates each project and its reporting phase/s for 2015-16.

Project Name Type of Development Approx Total Site Area (ha)

Due Diligence

Planning Civil Works

Post Occupancy

Belconnen Lathlain

Street Precinct

Residential, commercial, community

2.5 X

Belconnen Section 149 Commercial 0.1 X

Belconnen Section 152 Residential, commercial 0.6 X

Bonner Residential estate 230.9 X

Campbell 5 Mixed Use 6.4 X X

Canberra Brickworks Precinct Residential, commercial 16 X

City to the Lake Mixed Use 70 X

Coombs Residential estate 79 X

Denman Prospect Stage 1A Residential estate 53 X

Denman Prospect Stage 1B Residential estate 100 X

East Lake Residential, commercial, community

57 X

Fyshwick Section 45 Industrial 95 X

Fyshwick Section 47 Industrial 36 X

Gungahlin Town Centre East Residential, commercial, community

38 X

Hume New West Industrial 56 X

Kingston Foreshore High density residential, commercial

44.5 X X X X

Lawson Stage 1 Residential estate 43.5 X

Lawson Stage 2 Residential estate 30 X

Molonglo Town Centre Commercial, Mixed Use 116 X

Molonglo 3 Residential estate 820 X

Moncrieff Residential estate 191 X

Parkes Section 3 Mixed Use 3.4 X

Pialligo Industrial 135 X

Southquay Greenway Mixed Use, residential 24 X X

Symonston Industrial 37 X

Taylor Stage 1 Residential estate 102 X

Throsby Residential estate 106 X

West Belconnen Residential estate 600 X

Woden Furzer Street Precinct Mixed Use 2.3 X

Wright Residential estate 80 X

Urban Releases ** Various single block or section releases

33.3 17 Sites

Total LDA Projects Reported in 2015-16 3,208.5 30 8 6 8

* For specific zones, please refer to Territory Plan.** Does not include Public Housing Renewal and Asset Recycling Initiative sites.


Notes:

It is important to note that the planning and land development process often occurs over several years. Accordingly, many projects will report on the same phase for two or more consecutive years.

The number of projects reported within any given year can vary significantly in response to the ILRP. This must be considered when undertaking any comparisons between reporting periods. A project may be divided into different stages for reporting if some areas are at a different phase to other areas. For example, a project may have some areas where civil works are still being conducted while residents have moved into other areas. This is the case with Kingston Foreshore, where there are several precincts, each in a different phase.

Equivalents to key milestones may be used as alternatives in some cases. For example, approval by the NCA may be used as an alternative to Estate Development Plan (EDP) approval for projects in designated areas.

A number of projects crossed key milestones during 2015-16. If the milestone (such as EDP approval) occurred during the financial year the project was required to report on whichever phase applied for the majority of the given financial year. If the milestone occurred close to halfway through the financial year then the project was required to report on both applicable phases.

Work on a number of new projects also commenced during 2015-16. These projects have now been included for sustainability reporting.

Some LDA sites are sold as englobo sites after the Due Diligence Phase. Therefore, not all projects will proceed from the Due Diligence Phase to the Planning Phase. Similarly, a site may occasionally be sold as englobo after the Planning Phase. In these cases, once the sale has occurred it is the end of LDA involvement.

The LDA also engages in Joint Venture projects which are largely managed by the Joint Venture Partner, for example West Belconnen. LDA involvement is reduced following Business Plan approval, with Business Plans being approved by the Joint Venture Management Committee rather than the LDA Board. For these reasons, Joint Venture projects in the planning or later phases have not been reported against in 2015-16.

Urban releases include Due Diligence reporting for projects such as Northbourne Avenue corridor (mixed use and residential development). Data on sustainability reporting for Public Housing Renewal and ARI sites is not available this financial year and will be included for reporting in 2016-17.

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SUSTAINABILITY INDICATORS

The LDA has developed a selection of indicators to be used for reporting on environmental, social and economic sustainability during the land development process. Indicators reflect on non-financial operations that the LDA controls and influences directly. The indicators are grouped by theme and separated by Reporting Phases.

Projects within an individual phase will only report on the indicators directly related to that phase.

2011-12 was the first time that this approach to sustainability reporting had been used by the LDA in the Annual Report. Evaluation of the indicators has taken place each year, resulting in some amendments and additions.

Indicator Due Diligence (DD) Planning (PL) Civil Works (CW) Post Occupancy (PO)

Energy and emissions • Solar access • Public lighting• Rebate schemes or

mandates

• Actsmart Energy Efficiency workshops for residents

Water • Catchment management analysis and/or flooding studies

• Water Sensitive Urban Design (WSUD)

• Sediment and erosion control

• Water Sensitive Urban Design (WSUD) monitoring

Landscape and

biodiversity

• Ecological assessments

• Tree assessments• Contamination

studies• Geotechnical

assessments• Bushfire risk

assessments

• Public open space• Protection of

threatened species, populations and ecological communities

• Protection or management of identified areas of ecological importance

• Tree protection• Weed and pest

control

Waste and materials • Cut and fill minimisation

• Recycled or reused materials

Influencing design • Design Review Panel • Project evaluation

Community • Community engagement

• Heritage assessments

• Noise assessments

• Community engagement

• Protection or management of identified areas of heritage importance

• Residential community development programs

Transport • Traffic and parking assessments

• Public transport proximity

• Pedestrian and cycle networks and facilities

• Area of roads

Affordability • Planning for affordability

• Affordable dwellings• Land Rent blocks


ENERGY AND EMISSIONS

Reporting Phase Indicators 2012–13 2013-14 2014-15 2015–16

PL Percentage of LDA projects that comply with or exceed solar access requirements

100% 100% 100% * 100%

CW Percentage of LDA projects that comply with or exceed public lighting energy efficiency standards

100% 100% 100% 100%

CW LDA projects that used rebate schemes or mandates to encourage use of efficient appliances and hot water

4 projects 4 projects 1 project 1 project

* Throsby has now been included in the previous financial year, as the level of detail for this indicator has been determined and met.

Each of the indicators will be addressed and the results of sustainability reporting for the current and previous financial years are provided below.

Solar AccessSolar access requirements are outlined in the Territory Plan. In all LDA estates, the layout and orientation of streets and blocks are designed to facilitate good solar access once dwellings have been built.

Public LightingPublic lighting in LDA projects must meet energy efficient design standards. Several LDA projects have promoted or trialled energy efficient lighting above usual standards.

Denman Prospect, Lawson and Furzer Street Precinct in Phillip will have street lights installed with LED luminaries.

Rebate Schemes or MandatesRebate schemes or mandates have been used in some LDA residential estates to encourage the use of efficient appliances and hot water systems.

Rebates for energy meters on single residential dwellings have been offered to residents in Lawson, to date there is no record of uptakes.

Rebates for the installation of solar water heater systems are offered to residents in Wright, whilst Coombs has a mandatory solar water heater requirement. To date, all single residential dwellings in Coombs have a solar water heater installed that complies with the requirements in the Coombs Housing Development Guide. This is the first LDA estate to implement a mandatory solar water heater requirement with a landscape rebate incentive of $5,000, ensuring a 100% uptake.

46

WATER


DD Number of catchment management analysis and/or flooding studies conducted for LDA projects

10 8 5 15

PL Percentage of LDA projects with WSUD strategies appropriate to the size and location of the projects

100% 100% 100% 100%

CW Percentage of LDA projects that have met or exceeded sediment and erosion control requirements

100% 100% 100% 100%

PO LDA projects that have post occupancy water monitoring

1 0 0 1

Catchment Management Analysis and Flooding StudiesCatchment management analysis studies assess a development’s impact on drainage, existing water bodies or water courses and ground water. In 2012-13 this indicator was amended to include flooding studies. Flooding studies may be conducted on larger Greenfield sites and for smaller development sites, to assess potential flooding risks and the impact that development may have on flooding.

Water Sensitive Urban Design (WSUD)WSUD is included in all new developments under the Territory Plan, as part of the ACT Government’s broader strategy of responsible water resource management. WSUD seeks to use a more sustainable approach by integrating water management into urban development.

In the 2015-16 LDA SOI, a non-financial KPI required all LDA projects to have a specific WSUD strategy appropriate to the size and location of the project. This target has been achieved with all LDA projects reported during the Planning Phase having WSUD strategies in place.

A combination of treatment technologies will be used across the City to the Lake project. These include bioretention rain gardens and bioretention tree pits in streets, bioretention within parks and waterfront planted zones, gross pollutant traps and tertiary stormwater quality improvement proprietary products in order to provide an efficient way of targeting the range of pollutant reductions required before entering Lake Burley Griffin.

Measures to enhance water quality in Bonner include grassed swales, gross pollutant traps and water quality control ponds. Water from two ponds in Bonner Stage 1B is used for stormwater harvesting and irrigation of the Bonner Primary School neighbourhood oval. In Southquay Greenway, WSUD is delivered through rain gardens in streetscapes and Stormceptors placed in-line to remove 80%+ of gross pollutants and sediment runoff before entering Tuggeranong Pond.

The LDA has also installed a range of innovative WSUD technologies to assist in filtering stormwater runoff and improving water quality. This includes Stratacell™ at Campbell 5 and Amaroo Group Centre and Hydrocon™ in Wright and Coombs.


Sediment and Erosion ControlsSediment and erosion controls help to reduce pollutants run off from a site. Pollutants can contribute to environmental degradation and the devastation of terrestrial and aquatic ecosystems.

Sediment ponds, silt fences and stormwater diversions are examples of sediment and erosion control methods used in LDA projects. In Lawson, a Construction and Environmental Management Plan was in place to ensure all sediment and erosion is minimised. Frequent turbidity readings have been undertaken with positive results. Silt fences are installed on downstream flow paths, silt traps have been installed on all inlets to sumps and clean water diverted around the site where possible. Exposed surfaces were sealed as soon as practicable to ensure runoff remains clean. The site has been divided into zones which are stabilised when completed to minimise potential high environmental risks associated with exposed earthworks and topsoil.

Post Occupancy Water MonitoringOne of the current projects in the Post Occupancy Phase had water monitoring actively undertaken by the LDA in 2015-16. The Sustainability and Innovation Unit has contracted the Institute of Applied Ecology at the University of Canberra to undertake water quality monitoring for the suburbs of Amaroo and Campbell 5.

Water monitoring was undertaken in Campbell 5 in 2015-16 and is to be continued over the next two years to determine the impacts of development at different stages, including post-occupancy, on water quality targets, including potable water usage, suspended solids, phosphorus and nitrogen. The work at Amaroo monitored the effectiveness of permeable pavers installed, which are designed to filter nutrients and pollutants from stormwater and road water runoff before it enters Yerrabi pond, prior to the site being extensively used. This project was completed in 2015-16.

The LDA is investigating options for other water monitoring in the future, including linkages with other ACT Government agencies.

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LANDSCAPE AND BIODIVERSITY

Reporting Phase

Indicators 2012–13 2013-14 2014-15 2015–16

DD Number of ecological assessments conducted for LDA projects

42 30 47 6*

DD Number of tree assessments conducted for LDA projects

37 21 27 15*

DD Number of contamination studies undertaken (and remediation conducted as required) for LDA projects

41 36 59 18*

DD Number of geotechnical assessments conducted for LDA projects

39 22 30 15*

DD Number of bushfire risk assessments conducted for LDA projects

7 7 3 1*

PL Area of public open space included in LDA projects

149ha of 339ha total site area



99.4ha of 411ha total site area

PL Amount of land set aside or created for the protection of threatened species, populations and ecological communities

112ha 0ha(NB: No projects

in this Phase had threatened

species, populations

or ecological communities

identified)

87ha(plus 277ha

offsite)

20ha

CW Percentage of LDA projects that have measures in place to protect or manage identified areas of ecological importance

100% 100% 100% 100%

CW Percentage of LDA projects that have tree protection measures in place

100% 100% 100% 100%

CW Percentage of LDA projects that have weed and pest control measures in place

100% 100% 100% 100%

* Number of Due Diligence studies has reduced as many LDA projects completed these in previous financial years or were not required.


Ecological AssessmentsEcological assessments are performed during the Due Diligence Phase and are an important part of land development investigations. Ecological assessments help to identify threatened or endangered species, populations or ecological communities on a site, and include any referrals processes relating to the Australian Government’s EPBC Act.

Further vegetation assessments have been undertaken in Molonglo 3 and the deferred area of Molonglo 2 (Denman Prospect) to assist with determining possible impacts of land management and urban development.

Tree AssessmentsThe LDA conducts an extensive amount of work around the management, assessment and data collection of trees within its developments. Tree assessments capture the following information:

> all trees including regulated or registered trees;

> location;

> species;

> height;

> canopy spread;

> trunk circumference;

> number of trunks;

> arboricultural assessment;

> urban amenity assessment; and

> recommendation to retain and manage or to remove.

Most LDA projects under the Due Diligence Phase have already had tree assessments done in previous financial years. Other than individual tree assessments undertaken to determine heritage or habitat value at specific sites or as part of a Site Investigation Report for urban release blocks. The Canberra Brickworks Precinct is the only major project that had a tree assessment undertaken within 2015-16. This includes a tree assessment in such areas as around the Brickworks Quarry, Plantations adjacent to Denman Street, and Pine Plantation to the south-eastern edge.

Contamination StudiesContamination studies and remedial requirements are established during the Due Diligence Phase. Contamination is prevalent in both Greenfield and infill locations with remediation actions required for a wide variety of sources (sheep dips, farm garbage tips, stockpiles from unknown sources, illegal dumping, former buildings and structures).

Geotechnical AssessmentsGeotechnical assessments are conducted to assess whether areas are suitable for future construction and development.

Bushfire Risk AssessmentsDevelopments within or adjacent to potentially fire prone areas require bushfire risk assessments to be conducted.

Public Open SpaceThe area of public open space refers to all areas which are zoned as Parks and Recreation, or Non-Urban in the Territory Plan.

As an example, in the new suburb of Taylor (Stage 1) up to 36.5 ha has been allocated as urban open space or parks and recreation, which is approximately 34.5% of the development area.

Protection of Threatened Species, Population and Ecological CommunitiesThe LDA is responsible for reserving and managing areas of land in order to protect threatened species, populations or ecological communities. These sites can include land reserved onsite (within the development) or off-site (including offset areas). Once construction commences the LDA implements measures to protect threatened species, populations or ecological communities located onsite.

A number of sites under investigation for future development are subject to the Eastern Broadacre Strategic Assessment. This assessment will determine what land is to be set aside for environmental purposes and what land has development potential in West Majura, Symonston, Fyshwick and Hume.

50

Tree ProtectionTree Management Plans are required for LDA projects where trees are identified for retention and management through tree assessments, undertaken during the Due Diligence Phase. Tree Management Plans describe how trees within a development will be protected and managed through the Civil Works Phase when earthworks and construction take place.

Approximately 1,673 trees were planted (including street trees and trees in landscaped areas), 213 trees retained and 286 trees were removed within LDA developments during 2015-16.

This is approximately 6.5 times more trees planted and retained than were removed in the process of land development.

Weed and Pest Control MethodsWeed and pest control methods are specific to each site. For example, all imported soils in Lawson are checked to ensure they are free of weeds and after grass is laid landscape works are monitored for weed growth.

WASTE AND MATERIALS


CW Percentage of LDA projects that minimised cut and fill through design and landscaping

100% 100% 100% 100%

CW LDA projects that have used recycled or reused materials in civil works and landscaping

4 4 4 5

Cut and Fill MinimisationBy balancing the amount of cut and fill required on site, LDA projects reduce earthworks and associated impacts on the site. Wright and Coombs have limited the amount of cut and fill to a maximum of 1.5 metres as part of the requirement for Urban Development Institute of Australia (UDIA) EnviroDevelopment accreditation. Denman Prospect Stage 1A was designed to be as sympathetic to the sloping topography as possible while achieving design and safety standards.

Recycled or Reduced MaterialsWhere possible, LDA projects have recycled or reused materials in construction.

Construction practices and planning are incorporated into civil works to minimise wastage of materials in five of the six projects under the Civil Works Phase. Onsite rocks in Throsby are reused for feature boulders in landscape works.

Some rocks have been crushed to produce gravel based material for use in road pavements, under paths and driveways and as backfill under roads. Other examples include using demolished concrete on new retaining walls and reuse asphalt and base grades from roads and car park for new road constructions.

Existing spoil stockpile of material is processed and reincorporated into on-site works where possible to minimise the removal of contaminated materials. Recycled gravel is used for footpath and driveway preparation, and topsoil is spread on blocks and verges. All excess clean concrete and asphalt is removed from the site and taken to recyclers. In addition, mulch generated from clearing on-site is re-used in landscaping works to protect trees, on site clay material is excavated and used to provide a capping layer in wetland ponds, and site rock is used for outflow protection within pond spillways, retaining walls and landscape features.


INFLUENCING DESIGN


PL Number of LDA projects that use the Design Review Panel at the Planning Phase

3 4 5 5

PO Number of LDA projects that conducted a form of evaluation

No historical data – indicator

introduced in 2013-14

3 2 4

Design Review Panel (DRP)The LDA Design Review Panel (DRP) consists of respected academics, planners, architects and landscape architects who meet to review the LDA and ED projects. Projects are presented to the DRP for comments and advice regarding design outcomes. Five projects within the Planning Phase were presented to the DRP in 2015-16.

Eleven other projects were also presented to the DRP in 2015-16. This includes LDA projects in other reporting Phases such as West Belconnen. It also includes a number of projects from other agencies including Economic Development and the Environment and Planning Directorate (EPD).

A non-financial KPI requirement is for key LDA projects to be presented to the DRP prior to the Board’s consideration of the Project Business Plan. In 2015-16, the Project Business Plan for Taylor Stage 1 was submitted to the Board following presentations of the project to the DRP.

EvaluationEvaluating projects once they reach the Post Occupancy Phase is one way the LDA can assess whether the projects met their original objectives, ecological requirements and sustainability goals. Although no projects in the Post Occupancy Phase had separate evaluation processes commissioned, two projects (Moncrieff and Bonner) were assessed internally against their original Business Plan objectives. This indicator has been introduced in 2014-15 to allow the LDA to collect data about this for the future.

As mentioned above, other useful tools for evaluation of sustainability in developments are UDIA’s EnviroDevelopment and GBCA’s GreenStar Communities certification programs. The LDA, with other Government Land Organisations, has been a sponsor of these tools. For instance, Wright received EnviroDevelopment re-certification in the elements of ecosystems, energy, waste and community in 2013-14, making it one of Australia’s most sustainable developments. Further, both Wright and Coombs received re-certification under the ecosystems, energy, waste and community categories of the UDIA EnviroDevelopment program.

52

COMMUNITY


DD Number of projects that conducted community engagement

30 15 27 13*

DD Number of heritage assessments conducted for LDA projects

40 11 47 3*

DD Number of noise assessments conducted for LDA projects

4 3 1 1*

PL Percentage of LDA projects that conducted community engagement

100% 100% 67% ** 75%**

CW Percentage of LDA projects that have measures in place to protect or manage identified areas of heritage importance

100% 100% 100% 100%

PO Residential LDA estates using community programs

4 4 4 5

* Number of Due Diligence activities has reduced as many LDA projects completed these in previous financial years.** Denotes a small number of projects that are yet to undertake community engagement.

Community EngagementThe CMTEDD community engagement team provides strategies and services to the LDA with the aim of ensuring open, proactive and meaningful communications and community engagement.

A complete outline on all community engagement activities is at Section M. Community Engagement and Support of this Annual Report.

Heritage Assessments and ProtectionHeritage assessments were conducted on some LDA projects in 2015-16. Where areas of heritage importance were identified, protection measures were in place in the majority of the LDA developments in the Civil Works Phase. This includes heritage areas that have community value but are not formally listed on the Heritage Register.

In Taylor, a Construction Management Plan was developed for an Aboriginal Scar Tree and salvage of archaeological material has been undertaken. At Kingston Foreshore, heritage trees have been managed in accordance with the Tree Management Plan. A heritage site located within Denman Prospect Stage 1B has been protected, and civil contractors and consultants made aware of the site and advised to avoid the area as part of standard site induction.


Noise AssessmentNoise assessments are conducted where required to assess the potential impacts of proposed developments on existing surrounds, and where infrastructure works will impact on future residents.

Community ProgramsAs part of the community process, the LDA (in conjunction with CMTEDD) conducts consultation sessions with stakeholders, community groups, adjacent land lessees, and the broader ACT community. Community engagement is used not only to inform but to consult, involve and collaborate with the community.

The LDA continues to implement its community development program called Mingle, which is designed to build vibrant local communities within new LDA estates. The program aims to achieve a number of social objectives based around the notion of encouraging new residents to feel part of the community and become involved in community life and activities. Mingle ultimately assists residents to create networks, groups and programs that will become self-sustaining.

The program is tailored for each suburb to suit demographics, resident feedback and proximity to surrounding services. The LDA continues to work closely with other ACT Government Directorates to help meet program objectives and to deliver events.

In 2015-16 the Mingle program continued in Bonner and Molonglo Valley (Wright and Coombs) and supported community initiatives in Franklin including Neighbourhood Watch. It also commenced in Moncrieff.

In Bonner there were a total of six activities and two community newsletters. Activities included community conversation workshop, ACT Brumbies sports day, Astronomy Night, Easter Egg Hunt, Party at the Shops and a photography competition.

In Moncrieff there was one launch activity linked to the opening of the Moncrieff Display Village, and one community newsletter.

In Wright and Coombs there were a total of 22 activities and three community newsletters. Activities included fitness classes, Bike day, Cancer Council’s Biggest Morning Tea, Ranger Walk, Easter Egg Hunt, Dogs Day Out and Astronomy Night. The LDA has also continued to partner with a Resident Advisory Group to oversee, support and provide guidance to the community development activities. This group is comprised of volunteers from the local community.

The LDA has continued to partner with Communities@Work to deliver a Community Development Officer to assist with planning and delivery of the Mingle program in Wright and Coombs.

Activities across Bonner, Moncrieff, Wright and Coombs were supported by newsletters, online communications, community signage, letterbox delivery and social media.

The LDA has also engaged with the community through other events including the Gungahlin Movie Marathon, ‘Celebrate Gungahlin’ festival and the Real Estate Institute ACT Home Buyers Expo.

54

TRANSPORT


DD Number of traffic and parking assessments conducted for LDA projects

32 25 40 18*

PL Percentage of projects in which all dwellings are located within required proximity to public transport

100% 100% 100% 100%

PL Percentage of projects that comply with or exceeds standards for pedestrian and cycle networks and facilities

100% 100% 100% 100%

PL Area of roads No historical data – indicator

introduced in 2013-14


52.6ha of 186ha total site area

59.9ha of 411ha total site

area

* The number of traffic and parking assessments under the Due Diligence phase reduced significantly due to some projects having the assessment done in previous financial years.

Traffic and Parking AssessmentsTraffic and parking assessments review the existing road networks and traffic conditions around a site, and assess the required onsite parking demand and traffic impact of new developments.

Public Transport ProximityAll projects within the Planning Phase met the requirements for proximity to public transport according to the Territory Plan.

Pedestrian and Cycle Networks and FacilitiesAll projects within the Planning Phase complied with the standards for pedestrian and cycle networks and facilities.

Area of RoadsCollecting data about the area of roads allows the LDA to consider the proportion of a site covered by impervious (hard) surfaces. Increased hard surfaces can have implications for the amount of runoff as well as the urban heat island effect. This indicator has been introduced for 2014-15 to allow the LDA to collect data about this for the future.


AFFORDABILITY


PL Percentage of projects that comply with affordability requirements

100% 67%

(NB: Affordability requirements of

relevant projects will be met in the Planning Phase)

100% 100%

PO Number of blocks settled under Land Rent

730 289 787 308

Affordable HousingHousing affordability is a key issue in the ACT. In the LDA’s 2015-16 SOI, the LDA has committed to provide support in housing choice and affordability. This includes the non-financial KPI to ensure both englobo and LDA Greenfield developments have 20 percent of dwelling sites released for the purpose of providing affordable housing. All residential LDA projects in the Planning Phase complied with these affordability requirements, where applicable.

In 2015-16, the LDA released the following affordable releases:

> Moncrieff - 254 dwellings;

> Coombs – 164 dwellings;

> Throsby – 5 dwellings;

> Denman Prospect - 24 dwellings; and

> Public Housing Response Taskforce:

• Holt – 12 dwellings; and

• Throsby - 69 dwellings.

The LDA has committed to delivering affordable housing through most of its projects. For example, affordable dwellings are delivered in Coombs on Multi-Unit sites. To date, 10 Multi-Unit sites with 96 affordable dwellings have been approved and a further 15 sites to be delivered, six of which have been provided to the PHRT for the provision of Public Housing. These sites have been created by way of a subdivision of existing blocks that have not been sold and equate to 144 additional affordable dwellings, which are currently under construction.

Most projects in the Post Occupancy Phase have delivered affordable dwellings in previous years. For example, the LDA has required 30 percent of Multi-Unit sites to include affordable dwellings in Wright. To date, five Multi-Unit sites have approved Development Applications (DA’s) in Coombs, with a further 20 sites delivered, six of which have been provided to the PHRT for the provision of public housing. In addition, an average of 20 percent affordable housing will apply across Lawson, 25 percent of which will be applied in Stage 2.

Land RentIn accordance with the ACT Government’s Affordable Housing Action Plan, the LDA provides the option for purchasers of land in LDA residential estates to participate in the Land Rent scheme which commenced on 1 July 2008.

In 2015-16, 308 blocks in Moncrieff were settled under the land rent scheme.

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SUSTAINABLE DEVELOPMENT PERFORMANCE

The following table provides information on the LDA’s energy, water, transport fuel and waste consumption and the associated greenhouse gas emissions. Consumption is reported for the LDA’s

office accommodation and external usage within LDA developments for the current and previous financial years.

Indicator as at 30 June Unit Current FY (2015-2016)

Previous FY (2014-2015)

Percentage change

Agency staff and area

Agency staff FTE 96.8 87.7 +10.4

Workplace floor area Area (m2) 1,573 1,559 +0.9

Stationary energy usage

Electricity use Kilowatt hours 167,490 139,375 +20.2

Renewable electricity use Kilowatt hours 0 0 0

Natural gas use Megajoules 0 0 0

Transport fuel usage

Total number of vehicles Number 4 4 0

Total kilometres travelled Kilometres 76,563 78,933 -3.0

Fuel use – Petrol Kilolitres 2.0 2.2 -9.1

Fuel use – Diesel Kilolitres 6.7 6.0 11.7

Fuel use – Liquid Petroleum Gas (LPG) Kilolitres 0 0 0

Fuel use – Compressed Natural Gas (CNG) Kilolitres 0 0 0

Water usage

Water use Kilolitres 3 1,171 -99.8

Resource efficiency and waste

Reams of paper purchased Reams 896 1,122 -20.2

Recycled content of paper purchased Percentage 61.5 66.0 -6.8

Waste to landfill Litres see notes see notes

Co-mingled material recycled Litres 33,042 37,552 -12.0

Paper & Cardboard recycled

(incl. secure paper)

Litres 38,020 75,703 -49.8

Organic material recycled Litres 3,527 1,995 76.8

Greenhouse gas emissions

Emissions from stationary energy use Tonnes CO2-e 129.5 111.8 15.8

Emissions from transport Tonnes CO2-e 24.0 22.1 8.6

Total emissions Tonnes CO2-e 153.5 133.9 14.6


Supporting notes to table

General

Full-time equivalent (FTE) figures include all the LDA staff members.

All the LDA staff members occupy the office located at TransACT House, Dickson on the ground floor, level 6 and level 7. The TransACT House office accommodation is shared with staff from the CMTEDD. The net lettable area (NLA) of office space has been apportioned based on the number of FTE staff within CMTEDD and LDA at TransACT House.

Stationary Energy

Stationary Energy is the combined energy consumption of the LDA’s internal business operations and the LDA managed estates and properties throughout the ACT.

Internal business operations includes the office tenant light and power generated at TransACT House ground floor, level 6 and level 7.

The amount of Stationary Energy reported for the LDA changed significantly for the LDA in 2015-16. This was due to the transfer of several sites from the LDA to ACT Property Group and TAMS.

Internal business operations do not include the LDA’s proportion of central services consumption (from heating, cooling or water systems) of TransACT House consumption data.

Other energy consumption is generated at the LDA managed estates and properties throughout the ACT. These estates change over time as land is developed and sold. This consumption includes, but is not limited to, irrigation pumps, sewer valves, gross pollutant traps, offsite storage sheds.

Transport

The LDA vehicle fleet is managed by SG Fleet (WhoG provider) who provides accurate data on the kilometres travelled and fuel consumption of all the LDA vehicles.

Two cars are used for the purpose of staff site visits, inspections and stakeholder engagements and the other two cars are used for the estate management purposes.

Water

Water consumption in TransACT House is managed through the building owner and hence not included in 2014-15 and 2015-16. Therefore all water reported is from LDA managed estates and properties in the ACT. These sites change over time as land is developed and sold. Water uses include irrigation water, public buildings and bubblers.

The amount of water use reported for LDA changed significantly for the LDA in 2015-16. This was due to the transfer of various assets from the LDA to ACTPG, TAMS and to a private entity in one instance. For example, two public areas at Gungahlin Place were handed over to TAMS.

Resource Efficiency and Waste

Paper for the LDA and CMTEDD staff is purchased together for TransACT House. Paper consumption has been apportioned based on the number of FTE staff within CMTEDD and the LDA at TransACT House.

Waste is reported based on the number of bins collected for a particular waste/recycling stream. Unless all bins are full, the reported figures may not be the actual amount of waste produced but are the best estimate available at this point in time. Bins were calculated at 240 litres per bin. There has only been minor change in the number of bins collected between 2014-15 and 2015-16. However, organic waste collection did increase significantly in 2015-16. General waste from the LDA offices is not separately sorted from other waste generated by other tenants in TransACT House and is therefore not available for inclusion in this report.

Carbon BudgetThe LDA is an ACT Government agency within CMTEDD. Carbon Budget is reported on a directorate level. Thus, for Carbon Budget information, please refer to the CMTEDD Annual Report.



SECTION C: FINANCIAL MANAGEMENT REPORTING


C.1 FINANCIAL MANAGEMENT ANALYSIS

LAND DEVELOPMENT AGENCY

FINANCIAL YEAR ENDED 30 JUNE 2016

60

1

Management Discussion and Analysis

Land Development Agency

Financial Year Ended 30 June 2016 Objectives The key objectives of the Land Development Agency (LDA) for 2015-16 are to:

ensure that an adequate supply of land is maintained to meet market demand and to stimulate economic activity in the residential, commercial, industrial and community land development sectors;

contribute to the provision of advice to Government on the ACT property market to support the development of its land release targets;

contribute to the delivery of the Government’s policies and priorities as they relate to land development, urban renewal and urban sustainability;

cultivate and maintain productive relationships across the ACT Government; cultivate and maintain productive working relationships and linkages with the private sector; operate efficiently in the markets in which it operates and provide agreed returns to the Territory; ensure that key commercial decisions on land in the ACT are consistent with the long-term sustainability of

the Territory; and engage the community in a timely manner in the land development process and continue to improve

community engagement processes for high profile redevelopments.

Public Trading Enterprise The LDA is a Public Trading Enterprise. Consistent with the ACT Government’s policy statement on competitive neutrality (Competitive Neutrality in the ACT, October 2010), the LDA applies similar costing and pricing principles, taxation and debt guarantee requirements and appropriate regulations as a fully corporatised business, including:

the acquisition of unleased land for development from the Territory on a commercial basis; land holding cost payments; stamp duty equivalency payments; application of the National Tax Equivalents Regime; and providing a commercial return to Government through the development and sale of the land.


2

Returns to the Territory

The total return to the ACT Government from the LDA’s activities consists of:

acquisitions of Territory land at market value; the payment of national tax equivalents; the payment of dividends; the payment of land holding and stamp duty equivalents; and payroll tax.

Table 1 below compares the total returns to the Territory in 2015-16, with the 2015-16 Budget (Statement of Intent) and the actual returns in 2014-15.

Table 1: Comparison of Returns to the Territory

Actual

2016

$’m

Budget

2016

$’m

Actual

2015

$’m

Dividends paid 173 157 78

National tax equivalent payments 74 67 33

Payments for land acquisitions 92 80 46

Payroll tax 1 1 1

Stamp duty equivalents / Land holding cost equivalents 9 9 5

Total Returns to the Territory 349 314 163

Total returns to the Territory are higher than the previous year primarily due to an increase in land sales revenue. Detailed variances between the 2015-16 result, the 2014-15 result and the 2015-16 Budget (Statement of Intent) are provided below.

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3

Risk Management The residential, commercial and industrial markets are highly cyclical, when market conditions change the land sales revenue and profit is impacted. Consequently, this may adversely impact on the LDA’s ability to deliver forecast returns to the ACT Government if market conditions deteriorate. It could also lead to higher than forecast returns if market conditions are more favourable than forecast. Specific risks include regulatory risk, industry capacity and performance risks, market risks and stakeholder risks as detailed below.

Regulatory Risks The availability of an adequate supply of appropriately zoned residential, commercial, industrial and

community land, together with concept plans and timely approvals to enable development activity to take place within planned timeframes.

Unforseen delays in approvals and clearances from relevant directorates and Commonwealth agencies that would result in slippage in the achievement of the indicative land release program and associated revenue, including Asset Recycling Initiative releases, which are also subject to a range of dependencies such as advance delivery of replacement housing stock.

Changes in Commonwealth or other regulatory requirements may add uncertainty or increase costs for LDA activities impacting on delivery timeframes.

Industry Capacity and Performance Risks

Inability of the LDA to attract, recruit and retain a sufficient number of skilled staff.

Delays in the planning and timely delivery by other directorates and utilities providers of the necessary budget funded capital works infrastructure in order to support the land release program.

Increases in costs due to contract performance or extension of time (e.g. from sustained wet weather) impacting on development schedules and the financial performance of projects, resulting in lower or delayed forecast returns to the Government.

Contractor’s failure to meet the requirements of the Work Health and Safety Act 2011.

The adequacy or otherwise of industry capacity and skills availability to provide necessary services to deliver land servicing and broader capital works activities.

Market Risks Volatility in market demand for land as a result of the economic environment.

Whether the Government’s Indicative Land Release Program can be absorbed by the market.

Possible increases in land servicing and construction costs.

Stakeholder Risks Whether the sales revenue and land release targets can be achieved.

Addressing diverse and/or conflicting community views on development.


4

Strategies for 2015-16 The key strategies for 2015-16 that the LDA employed to achieve its objectives and effectively manage risks included:

collaborating with government agencies to establish an inventory of environmentally cleared, planned, release ready and serviced land;

active management of the full range of contractors and consultants providing services to the LDA;

exploring alternative project delivery methods and project management models to achieve the most timely and cost-effective delivery of land development;

providing detailed technical advice to the Chief Minister, Treasury and Economic Development Directorate (CMTEDD) to assist it in resolving land development issues with the Commonwealth;

working with government agencies and the community to implement strategies for key government development priorities in the city centre, town centres, major transport corridors and urban infill areas;

effectively engaging with local communities, industry associations, special interest groups and the broader ACT community to ensure relevant interests are identified and considered in LDA developments and land release activities;

maintaining a detailed understanding of relevant regulatory requirements, monitoring approval processes and liaising with relevant agencies to manage any issues that could otherwise delay projects;

effectively engaging with the private sector to capture market knowledge and encourage innovation and the transfer of skills;

pursuing initiatives to deliver affordable housing, consistent with the Affordable Housing Action Plan;

improving integration of design management and delivery of capital works with estate works;

encouraging viable and liveable communities by providing a variety of block and dwelling types and public spaces to suit the needs of residents and surrounding communities;

delivering community development to encourage involvement and support for community building;

positioning the LDA as a place of preferred employment through effective succession planning, rewarding performance and investing in staff development; and

contributing to the redevelopment of the Capital Metro Corridor and the implementation of the City to the Lake project.

64

5

Financial Performance The following financial information is based on the audited 2015-16 Financial Statements and the forward estimates contained in the 2016-17 Statement of Intent.

Income

Components of Income As shown in Figure 1 below, the LDA derived 96.1% of its total income for the year ended 30 June 2016 from land sales, 1.8% from resources received free of charge, 1.0% from Share of Joint Venture Profit, 0.7% from interest and 0.4% from other income.

Figure 1: Components of Income

Land Sales (96.1%)

Resource Received Free of Charge (1.8%)

Share of Joint Venture Profit (1.0%)

Interest (0.7%)

Other Income (0.4%)


6

Components of Land Revenue As shown in Figure 2, 90.5% of the LDA land revenue was derived from sales of land in LDA estates for the year ended 30 June 2016, 4.4% from commercial and industrial land sales, 2.4% from community land sales, 1.8% from additional yield, 0.8% from infrastructure revenue delivered by third parties and 0.1% from recovery of overpaid Goods and Services Tax (GST).

Figure 2: Components of Land Revenue

Sales of Land in LDA Estates (90.5%)

Commercial and Industrial Land Sales (4.4%)

Community Land Sales (2.4%)

Additional Yield (1.8%)

Infrastructure Delivered by Third Parties (0.8%)

Recovery of Overpaid GST (0.1%)

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7

Components of Gross Profit

As shown in Figure 3, 89.8% of the LDA gross profit was derived from sales of land in LDA estates for the year ended 30 June 2016, 3.8% from additional yield, 3.2% from community and other land sales, 3.0% from commercial and industrial land sales and 0.2% from recovery of overpaid GST.

Comparison to 2015-16 Budget Actual income, including share of profit from joint ventures of $617.7 million was $54.7 million (9.7%) higher than budget amount of $563.0 million. Actual land sales revenue of $593.7 million was $35.9 million (6.4%) higher than budget amount of $557.8 million. The higher than anticipated land sales is mainly due to higher than budgeted prices realised in Belconnen Section 200, additional revenue received from a variation to the deed agreement for City Section 84 and the settlement of the first part of Denman Prospect stage 1. This was partially offset by the deferral of the sale of Asset Recycling Initiative (ARI) sites to future years. Comparison to 2014-15 Actual Actual income, including share of profit from joint ventures of $617.7 million was $256.8 million (71.2%) higher than the 2014-15 actual result of $360.9 million. Actual land sales revenue of $593.7 million was $240.2 million (67.9%) higher than revenue achieved in 2014-15 of $353.5 million due to:

increased land settlements in Moncrieff, Denman Prospect, Lawson and Greenway;

increased community land sales including the sale of several aged care sites; and

additional revenue from a variation to the deed agreement for City Section 84.

The above increases were partially offset by:

the finalisation of land sales in Coombs, Campbell 5, Flemington Road Corridor and Kingston Foreshore.

Figure 3: Components of Gross Profit 2015-16

Sales of Land in LDA Estates (89.8%)

Additional Yield (3.8%)

Community Land Sales/Other (3.2%)

Commercial and Industrial Land Sales (3.0%)

Recovery of Overpaid GST (0.2%)


8

Future Trends - Income Figure 4 below shows the actual total income, total expenses and operating profit before tax for 2014-15, 2015-16, the 2016-17 Budget and the forward estimates. The future trend in total income reflects the Government’s currently published land release program in future years (2016-17: 4,550 dwellings; 2017-18: 4,430; 2018-19: 4,700 dwellings and 2019-20: 4,100 dwellings). Note the dwellings in the budget years and forward estimates also include dwellings under the Asset Recycling Initiative.

0

100

200

300

400

500

600

700

2014-15 Actual 2015-16 Actual 2016-17 Estimate 2017-18 Estimate 2018-19 Estimate 2019-20 Estimate

$'m

Future Trends

Figure 4: Future Trends

Total Income

Total Expenses

Operating Profit before Tax

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9

Total Expenses

Components of Expenses

Total expenses for the year ended 30 June 2016 (as shown in Figure 5) were predominantly for cost of land sold, which was 83.3% of the total. The two components of cost of land sold are development costs 58.5% and land acquisitions 24.8%. The balance of total expenses was for other expenses 9.8%, supplies and services 4.1% and employee expenses 2.8%.

Comparison to 2015-16 Budget Actual expenses of $370.2 million exceeded the budget amount of $339.0 million by $31.2 million ($9.2%) due mainly to higher than expected:

other expenses of $22.6 million as the result of transfer of assets from other government agencies free of charge and subsequent inventory write-offs in accordance with the Australian Accounting Standard AASB 102: ‘Inventories’, and the transfer of the Black Mountain Peninsula Slipway to ACT Property Group free of charge; and

cost of land sold of $11.2 million due to an increase in overall land sales.

These were partially offset by $3.4 million lower employee expenses as a result of the allocation of direct labour costs to inventory that was not anticipated in the budget.

Figure 5: Components of Expenditure 2015-16

Cost of Land Sold - development costs (58.5%)

Cost of Land Sold - land acquisitions (24.8%)

Other Expenses (9.8%)

Supplies and Services (4.1%)

Employee Expenses (2.8%)


10

Comparison to 2014-15 Actual Total expenses for 2015-16 of $370.2 million were $120.9 million (48.5%) higher than the 2014-15 amount of $249.3 million mainly due to higher than expected cost of land sold of $121.1 million, driven by an increase in land sales. As shown in Figure 4 above, total expenses are budgeted to vary in line with the ACT Government’s land release program, which directly impacts both the level of construction activity and subsequent land sales.

Dividends The LDA operates under a policy of a 100% dividend to the ACT Government. The dividend declared for the 2015- 16 year was $173.3 million of which an interim dividend of $75 million was paid in June 2016. This compares to a budget of $156.8 million resulting in an increase of $16.5 million (10.5%) as a consequence of higher than budgeted land sales.

The dividend declared for the 2015-16 year was $95.2 million (121.9%) higher than 2014-15 dividend of $78.1 million due to higher land sales.

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11

Financial Position Key indicators of the health of the LDA’s financial position are the ability to sustain its asset base, to pay debts as they fall due and to maintain long-term liabilities at prudent levels.

Total Assets

Components of Total Assets In 2015-16 the LDA maintained a strong net asset position due to its cash, receivables and inventory holdings in comparison with its liabilities.

Total assets at 30 June 2016 (as shown in Figure 6) comprise cash and cash equivalents 48.0%, current and non-current inventories 41.2%, receivables 6.3%, property, plant and equipment 4.3% and other assets 0.2%.

Comparison to Budget at 30 June 2016

The LDA’s total asset position at 30 June 2016 of $590.6 million exceeded the budget amount of $455.7 million by $134.9 million (29.6%) due mainly to higher than expected:

cash and cash equivalents of $183.2 million largely due to the timing of the receipt of a high number of land sales towards the end of the financial year;

property, plant and equipment of $25.4 million due to the purchase of rural land; and

other assets of $1.0 million mainly due to goodwill recognised on business acquisitions.

These were partially offset by lower than anticipated:

inventories of $47.9 million mainly due to lower than budgeted development activity and associated expenditure;

investment in the West Belconnen joint venture of $16.3 million was budgeted to occur in 2015-16. This will now occur in future years.

receivables of $10.6 million due to the lower than budgeted right to receive infrastructure as the associated works have been completed and received.

Figure 6: Components of Total Assets

Cash and Cash Equivalents (48.0%)

Inventories (41.2%)

Receivables (6.3%)

Property, plant and equipment (4.3%)

Other Assets (0.2%)


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Comparison to Actual at 30 June 2015 The LDA’s total asset position at 30 June 2016 of $590.6 million is $72.7 million (14%) higher than the 30 June 2015 restated asset position of $517.9 million mainly due to an increase in:

cash and cash equivalents of $159.9 million largely due to the timing of the receipt of a higher number of land sales towards the end of the financial year;

property, plant and equipment of $24.9 million due to the purchase of rural land; and

receivables of $13.8 million due to the increase in trade receivables mainly due to unpaid land rent sales and cost recoveries from the Public Housing Renewal Taskforce at 30 June 2016.

These were partially offset by decreases in inventories ($124.6 million), mainly due to decreased development activity and associated expenditure.

Liquidity Liquidity refers to the ability of the LDA to satisfy its short-term debts as they fall due. This ability is demonstrated by the LDA’s ‘current ratio’ (set out in Table 2 below), which compares the ability to fund short-term liabilities from short-term assets. The current ratio of 1.2 shows that the LDA is able to meet its short-term debts at 30 June 2016. LDA has strategies in place to mitigate forecast liquidity issues in 2017-18 and 2018-19, including the use of credit facilities from the ACT Government, if required.

Table 2: Current Assets to Current Liabilities

Actual Actual Budget Budget Budget Budget

At 30 June 2015 2016 2017 2018 2019 2020

$'000 $'000 $'000 $'000 $'000 $'000

Total Current Assets 414,023 446,826 447,301 330,340 407,024 280,592

Total Current Liabilities 272,503 379,023 433,293 363,327 449,849 282,438

Current Ratio 1.5 1.2 1.0 0.9 0.9 1.0

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Total Liabilities Figure 7 illustrates the LDA’s total liabilities comprising other provisions 30.1%, other liabilities 24.4%, payables 21.4%, national tax equivalents payable 17.2%, deferred tax liability 5.9% and employee benefits 1.0%.

Other liabilities reflect revenue received in advance for exchanged land blocks and the balance of the dividend to be paid to the ACT Government. Other provisions reflect the expected costs required to finish public domain works in LDA estates where operational acceptance has been obtained and the value of infrastructure assets that are to be transferred to the relevant ACT Government agency when construction is completed. Payables largely comprise of the GST payable to the Australian Taxation Office and accrued development costs and administration expenses. The LDA’s national tax equivalents payable and deferred national tax equivalents payable reflect the balance of national tax equivalents payable to the ACT Government in 2015-16 and future periods.

Comparison to Budget at 30 June 2016

The LDA’s total liability position at 30 June 2016 of $468.2 million exceeded the budget amount of $329.9 million by $138.3 million (41.9%) due mainly to higher than expected:

payables of $56.5 million largely due to amounts payable to Territory and Municipal Services Directorate for land that the LDA has custodianship of and has either developed and not settled or yet to be developed;

national tax equivalents payable of $58.1 million due to higher land sales in the fourth quarter of the financial year; and

other provisions of $33.8 million mainly due to a higher provision for project completion related to settlement ready blocks in LDA estates; partially offset by a lower liability to transfer infrastructure after the associated works have been completed and transferred.

Figure 7: Components of Total Liabilities

Other Provisions (30.1%)

Other Liabilities (24.4%)

Payables (21.4%)

National Tax Equivalents Payable (17.2%)

Deferred Tax Liability (5.9%)

Employee Benefits (1.0%)


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Comparison to Actual at 30 June 2015 The LDA’s total liability position at 30 June 2016 of $468.2 million is $76.1 million (19.4%) higher than the 30 June 2015 liability position of $392.1 million due to increases in:

national tax equivalents payable of $103.3 million primarily reflecting the restatement of prior year comparatives due to the revised inventory policy resulting in inventories were recorded when the custodianship of land were received, the higher operating surplus and timing of National Tax Equivalents payments; and

other liabilities of $43.0 million mainly due to the increase in dividend payable resulting from a higher operating surplus; partially offset by prior period adjustment for accrued land relating to the revised inventory policy.

other provisions of $34.0 million mainly due to increase in the value of the provision for project completion related to settlement ready blocks in LDA estates; and

These were partially offset by decreases in:

deferred tax liability of $46.2 million due to national tax equivalents payable in future periods from taxable temporary differences in inventory; and

payables of $58.4 million largely due to amounts payable to Territory and Municipal Services Directorate for land the LDA has custodianship of and is yet to be developed.

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C.2 FINANCIAL STATEMENTS

FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2016


INDEPENDENT AUDIT REPORT


To the Members of the ACT Legislative Assembly

Report on the financial statements

The financial statements of the Land Development Agency for the year ended 30 June 2016 have been audited. These comprise the statement of comprehensive income, balance sheet, statement of changes in equity, cash flow statement and accompanying notes.

Responsibility for the financial statements

The Governing Board of the Land Development Agency is responsible for the preparation and fair presentation of the financial statements in accordance with the Financial Management Act 1996. This includes responsibility for maintaining adequate accounting records and internal controls that are designed to prevent and detect fraud and error, and the accounting policies and estimates used in the preparation of the financial statements.

The auditor’s responsibility

Under the Financial Management Act 1996, I am responsible for expressing an independent audit opinion on the financial statements of the Land Development Agency.

The audit was conducted in accordance with Australian Auditing Standards to obtain reasonable assurance that the financial statements are free of material misstatement.

I formed the audit opinion following the use of audit procedures to obtain evidence about the amounts and disclosures in the financial statements. As these procedures are influenced by the use of professional judgement, selective testing of evidence supporting the amounts and other disclosures in the financial statements, inherent limitations of internal control and the availability of persuasive rather than conclusive evidence, an audit cannot guarantee that all material misstatements have been detected.

Although the effectiveness of internal controls is considered when determining the nature and extent of audit procedures, the audit was not designed to provide assurance on internal controls.

INDEPENDENT AUDIT REPORT



Report on the financial statements

The financial statements of the Land Development Agency for the year ended 30 June 2016 have been audited. These comprise the statement of comprehensive income, balance sheet, statement of changes in equity, cash flow statement and accompanying notes.

Responsibility for the financial statements

The Governing Board of the Land Development Agency is responsible for the preparation and fair presentation of the financial statements in accordance with the Financial Management Act 1996. This includes responsibility for maintaining adequate accounting records and internal controls that are designed to prevent and detect fraud and error, and the accounting policies and estimates used in the preparation of the financial statements.

The auditor’s responsibility

Under the Financial Management Act 1996, I am responsible for expressing an independent audit opinion on the financial statements of the Land Development Agency.

The audit was conducted in accordance with Australian Auditing Standards to obtain reasonable assurance that the financial statements are free of material misstatement.

I formed the audit opinion following the use of audit procedures to obtain evidence about the amounts and disclosures in the financial statements. As these procedures are influenced by the use of professional judgement, selective testing of evidence supporting the amounts and other disclosures in the financial statements, inherent limitations of internal control and the availability of persuasive rather than conclusive evidence, an audit cannot guarantee that all material misstatements have been detected.

Although the effectiveness of internal controls is considered when determining the nature and extent of audit procedures, the audit was not designed to provide assurance on internal controls.

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The audit is not designed to provide assurance on the appropriateness of budget information included in the financial statements or to evaluate the prudence of decisions made by the Land Development Agency.

Electronic presentation of the audited financial statements

Those viewing an electronic presentation of the financial statements should note that the audit does not provide assurance on the integrity of information presented electronically and does not provide an opinion on any other information which may have been hyperlinked to or from the financial statements. If users of statements are concerned with the inherent risks arising from the electronic presentation of information, then they are advised to refer to the printed copy of the audited financial statements to confirm the accuracy of this electronically presented information.

Independence

Applicable independence requirements of Australian professional ethical pronouncements were followed in conducting the audit.

Audit opinion

In my opinion, the financial statements of the Land Development Agency for the year ended 30 June 2016:

(i) are presented in accordance with the Financial Management Act 1996, Australian Accounting Standards and other mandatory financial reporting requirements in Australia; and

(ii) present fairly the financial position of the Land Development Agency at 30 June 2016 and the results of its operations and cash flows for the year then ended.

The audit opinion should be read in conjunction with other information disclosed in this report.

Dr Maxine Cooper Auditor-General 15 September 2016



FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2016


Draft

Land Development Agency Statement of Comprehensive Income

For the Year Ended 30 June 2016 Hidden word

6

Original Actual Budget Actual Note 2016 2016 2015 No. $’000 $’000 $’000 Income Revenue Land Sales 5 593,666 557,802 353,529 User Charges 6 754 1,221 955 Interest 7 4,119 3,800 3,111 Resources Received Free of Charge 8 11,308 - 3,465 Other Revenue 9 1,502 185 496 Total Revenue 611,349 563,008 361,556 Total Income 611,349 563,008 361,556 Expenses Employee Expenses 10 9,288 12,267 11,132 Superannuation Expenses 11 1,109 1,522 1,536 Supplies and Services 12 15,210 16,016 17,498 Depreciation and Amortisation 13 351 75 141 Purchased Services 14 4,064 3,357 3,906 Cost of Land Sold 15 308,341 297,125 187,201 Interest Expense 16 4,876 4,232 2,535 Other Expenses 17 26,957 4,387 25,320 Total Expenses 370,196 338,981 249,269 Share of Operating Profit/(Loss) from Joint Ventures accounted for using the Equity Method 36 6,358 - (693) Operating Surplus before National Tax Equivalents 247,511 224,027 111,594 National Tax Equivalents 20 74,254 67,209 33,478 Operating Surplus 173,257 156,818 78,116 Items that will not be reclassified subsequently to profit or loss Other Comprehensive Income Asset Revaluation (Loss) 24 (3,362) - - Total Other Comprehensive (Deficit) (3,362) - - Total Comprehensive Income 169,895 156,818 78,116

The above Statement of Comprehensive Income should be read in conjunction with the accompanying notes.

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Draft

Land Development Agency Balance Sheet

As at 30 June 2016 Hidden words

7

Original Restated Restated Actual Budget Actual Actual (1) Note 2016 2016 2015 1 July 2014 No. $’000 $’000 $’000 $’000 Current Assets Cash and Cash Equivalents 21 283,887 100,678 123,983 92,711 Receivables 22 28,737 39,655 12,602 79,819 Inventories 23 133,803 153,625 275,197 256,436 Investments - Joint Ventures 36 399 - 2,241 1,422 Other Assets - - - 94 Total Current Assets 446,826 293,958 414,023 430,482 Non-Current Assets Receivables 22 8,235 7,919 10,592 7,919 Inventories 23 109,468 137,516 92,663 79,329 Investments - Joint Ventures - 16,266 - - Property, Plant and Equipment 24 25,420 - 502 3,780 Intangible Assets 26 670 47 107 10 Total Non-Current Assets 143,793 161,748 103,864 91,038 Total Assets 590,619 455,706 517,887 521,520 Current Liabilities Payables 27 96,619 43,796 158,731 160,605 Finance Leases - 53 - 53 Employee Benefits 28 4,311 5,242 3,893 5,248 Other Provisions 29 83,561 73,256 61,675 61,455 National Tax Equivalents Payable / (Receivable) 30 80,297 22,209 (23,025) (34,840) Other Liabilities 31 114,235 122,283 71,229 93,637 Total Current Liabilities 379,023 266,839 272,503 286,158 Non-Current Liabilities Finance Leases - 77 - 77 Payables 27 3,694 - - - Employee Benefits 28 210 217 222 216 Other Provisions 29 57,557 34,104 45,424 34,103 Deferred Tax Liability 32 27,717 28,688 73,958 75,186 Total Non-Current Liabilities 89,178 63,086 119,604 109,582 Total Liabilities 468,201 329,925 392,107 395,740 Net Assets 122,418 125,781 125,780 125,780 Equity Accumulated Funds (a) 77,634 77,634 77,634 77,634 Retained Profits (a) 48,146 48,147 48,146 45,267 Asset Revaluation (Loss)/Surplus (3,362) - - 2,879 Total Equity 122,418 125,781 125,780 125,780

(a) The original budget included an amount of $125,781,000 as Accumulated Funds. This amount was the aggregate of Contributed Equity and Retained Profits.

(1) See Note 3 for details.

The above Balance Sheet should be read in conjunction with the accompanying notes.


Draft

Land Development Agency Statement of Changes in Equity

For the Year Ended 30 June 2016 Hidden words

8

Asset Contributed Retained Revaluation Total Equity Profits (Loss) Equity Original Actual Actual Actual Actual Budget 2016 2016 2016 2016 2016 $’000 $’000 $’000 $’000 $’000 Balance at 1 July 2015 77,634 48,146 - 125,780 125,781 Comprehensive Income Operating Surplus - 173,257 - 173,257 156,818 Asset Revaluation (Loss) - - (3,362) (3,362) - Total Comprehensive Income/(Loss) - 173,257 (3,362) 169,895 156,818 Transactions Involving the Owner Affecting Retained Profits Assets Contributed by the Owner - 5,335 - 5,335 - Capital (Distributions) - (5,335) - (5,335) - Dividends Approved - (173,257) - (173,257) (156,818) Total Transactions Involving the Owner Affecting Retained Profits - (173,257) - (173,257) (156,818) Balance at 30 June 2016 77,634 48,146 (3,362) 122,418 125,781

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

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Draft

Land Development Agency Statement of Changes in Equity - Continued


9

Asset Contributed Retained Revaluation Total Equity Profits Surplus Equity Actual Actual Actual Actual 2015 2015 2015 2015 $’000 $’000 $’000 $’000 Balance at 1 July 2014 77,634 45,267 2,879 125,780 Comprehensive Income Operating Surplus - 78,116 - 78,116 Total Comprehensive Income - 78,116 - 78,116 Transfers to/(from) reserves - 2,879 (2,879) - Transactions Involving the Owner Affecting Retained Profits Assets Contributed by the Owner - 8,858 - 8,858 Capital (Distributions) - (8,858) - (8,858) Dividends Approved - (78,116) - (78,116) Total Transactions Involving Owners Affecting Retained Profits - (78,116) - (78,116) Balance at 30 June 2015 (Restated) 77,634 48,146 - 125,780

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


Draft

Land Development Agency Cash Flow Statement


10

Original Actual Budget Actual Note 2016 2016 2015 No. $’000 $’000 $’000 Cash Flows from Operating Activities Receipts Land Sales 585,033 540,250 392,120 User Charges 770 981 1,922 Interest Received 4,317 3,500 3,019 Goods and Services Tax (GST) Collected from Customers and GST Input Tax Credits from the Australian Taxation Office 17,513 31,722 25,500 Other 576 185 1,764 Total Receipts from Operating Activities 608,209 576,638 424,325 Payments Employee 11,464 12,267 11,990 Superannuation 1,661 1,522 1,535 Supplies and Services 14,394 16,012 19,826 Development Costs 130,503 225,520 162,775 Land Acquisitions 88,704 79,843 82,067 Borrowing Costs 4,876 4,225 2,530 Purchased Services 3,751 3,357 2,335 Goods and Services Tax Paid to Suppliers and Remitted to the Australian Taxation Office 17,925 26,910 18,780 National Tax Equivalent Payments 17,172 63,139 22,894 Payments to Crace Joint Venture for Overpaid GST 13,552 - - Other 6,993 4,387 2,093 Total Payments from Operating Activities 310,995 437,182 326,825 Net Cash Inflows from Operating Activities 37 297,214 139,456 97,500 Cash Flows from Investing Activities Receipts Proceeds from Sale of Property, Plant and Equipment - - 40 Cash Distributions from Joint Ventures 8,200 - 1,000 Total Receipts from Investing Activities 8,200 - 1,040 Payments Payments for Property, Plant and Equipment 22,394 - 548 Payments for Investments - 3,500 - Total Payment from Investing Activities 22,394 3,500 548 Net Cash (Outflows)/ Inflows from Investing Activities (14,194) (3,500) 492

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Draft

Land Development Agency Cash Flow Statement - Continued For the Year Ended 30 June 2016

Hidden words

11

Original Actual Budget Actual Note 2016 2016 2015 No. $’000 $’000 $’000 Cash Flows from Financing Activities Payments Repayment of Finance Leases - - 57 Dividends Paid 123,116 110,374 66,663 Total Payment from Financing Activities 123,116 110,374 66,720 Net Cash (Outflows) from Financing Activities (123,116) (110,374) (66,720) Net Increase in Cash and Cash Equivalents 159,904 25,582 31,272 Cash and Cash Equivalents at the Beginning of the Reporting Period 123,983 75,096 92,711 Cash and Cash Equivalents at the End of the Reporting

Period 37 283,887 100,678 123,983 The above Cash Flow Statement should be read in conjunction with the accompanying notes.


Draft

LAND DEVELOPMENT AGENCY NOTE INDEX

Hidden words

12

Introductory Notes Note 1 Objectives of the Land Development Agency Note 2 Significant Accounting Policies Note 3 Change in Accounting Policy and Accounting Estimates Note 4 Significant Accounting Judgements and Estimates Income Notes Note 5 Land Sales Note 6 User Charges Note 7 Interest Note 8 Resources Received Free of Charge Note 9 Other Revenue Expense Notes Note 10 Employee Expenses Note 11 Superannuation Expenses Note 12 Supplies and Services Note 13 Depreciation and Amortisation Note 14 Purchased Services Note 15 Cost of Land Sold Note 16 Interest Expense Note 17 Other Expenses Note 18 Waivers, Impairment Losses and Write-Offs Note 19 Auditor's Remuneration Note 20 National Tax Equivalents Asset Notes Note 21 Cash and Cash Equivalents Note 22 Receivables Note 23 Inventories Note 24 Property, Plant and Equipment Note 25 Business Combinations Note 26 Intangible Assets Liability Notes Note 27 Payables Note 28 Employee Benefits Note 29 Other Provisions Note 30 National Tax Equivalents Payable / (Receivable) Note 31 Other Liabilities Note 32 Deferred Tax Liability Other Notes Note 33 Financial Instruments Note 34 Commitments Note 35 Contingent Liabilities and Contingent Assets Note 36 Interest in Joint Ventures Note 37 Cash Flow Reconciliation Note 38 Events Occurring after Balance Date Note 39 Related Party Disclosures Note 40 Budgetary Reporting

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Draft

Land Development Agency Notes to and Forming Part of the Financial Statements


13

NOTE 1 OBJECTIVES OF THE LAND DEVELOPMENT AGENCY (a) Operations and Principal Activities The Land Development Agency (the LDA) operates under the Planning and Development Act 2007 and was created by the ACT Government to maintain stability in the supply of land, to deliver high quality urban development and to realise a better return on the Territory's land holdings. The key objectives of the LDA are to: - ensure that an adequate supply of land is maintained to meet market demand and to stimulate economic

activity in the residential, commercial, industrial and community land development sectors; - contribute to the provision of advice to the ACT Government on the ACT property market to support the

development of its land release targets; - contribute to the delivery of the ACT Government’s policies and priorities as they relate to land

development, urban renewal and urban sustainability; - cultivate and maintain productive relationships across the ACT Government; - cultivate and maintain productive working relationships and linkages with the private sector; - operate efficiently in the markets in which it operates and provide agreed returns to the Territory; - ensure that key commercial decisions on land in the ACT are consistent with the long-term sustainability

of the Territory; and - engage the community in a timely manner in the land development process and continue to improve

community engagement processes for high profile redevelopments. (b) Public Trading Enterprise The LDA is a Public Trading Enterprise. Consistent with the ACT Government’s policy statement on competitive neutrality (Competitive Neutrality in the ACT, October 2010), the LDA applies similar costing and pricing principles, taxation and debt guarantee requirements and appropriate regulations as a fully corporatised business, including: - the acquisition of unleased land for development from the Territory on a commercial basis; - land holding cost payments; - stamp duty equivalency payments; - application of the National Tax Equivalents Regime; and - providing a commercial return to the ACT Government through the development and sale of the land. The total return to the ACT Government from the LDA's activities consists of:

- land acquisitions from the Territory at market value; - the payment of national tax equivalents; - the payment of dividends based on operating profit after tax; - the payment of land holding costs and stamp duty equivalents; and - payroll tax.


Draft



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NOTE 2 SIGNIFICANT ACCOUNTING POLICIES

(a) Basis of Preparation The Financial Management Act 1996 requires the preparation of annual financial statements for Territory authorities. The Financial Management Act 1996 and the Financial Management (Periodic and Annual Financial Statements) Guidelines 2016 Disallowable instrument DI2016—121 issued under the Act, requires the LDA's financial statements to include: (i) a Statement of Comprehensive Income for the reporting period; (ii) a Balance Sheet at the end of the reporting period; (iii) a Statement of Changes in Equity for the reporting period; (iv) a Cash Flow Statement for the reporting period; (v) the significant accounting policies adopted for the reporting period; and (vi) such other statements as are necessary to fairly reflect the financial operations of the LDA during the

reporting period and its financial position at the reporting period.

These general-purpose financial statements have been prepared in accordance with 'Generally Accepted Accounting Principles' (GAAP) as required by the Financial Management Act 1996. The financial statements have been prepared in accordance with: (i) Australian Accounting Standards; and (ii) ACT Accounting and Disclosure Policies.

The financial statements have been prepared using the accrual basis of accounting, which recognises the effects of transactions and events when they occur. The financial statements have also been prepared according to the historical cost convention, except for assets such as those included in property, plant and equipment valued at fair value in accordance with the valuation policies applicable to the LDA during the year.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. These financial statements are presented in Australian dollars, which is the LDA's functional currency.

The LDA is an individual reporting entity.

(b) The Reporting Period

These financial statements state the financial performance, changes in equity and cash flows of the LDA for the year ended 30 June 2016 together with the financial position of the LDA as at 30 June 2016.

(c) Comparative Figures

Budget Figures The Financial Management Act 1996 requires the financial statements to facilitate a comparison with the Statement of Intent. The budget numbers are as per the LDA’s 2015-16 Statement of Intent. Prior Year Comparatives Comparative information has been disclosed in respect of the previous period for all amounts reported in the financial statements, except where an Australian Accounting Standard does not require comparative information to be disclosed.

Where the presentation or classification of items in the financial statements is amended, the comparative amounts have been reclassified where practical. Where a reclassification has occurred, the nature, amount and reason for the reclassification is provided.

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Draft



15

NOTE 2 SIGNIFICANT ACCOUNTING POLICIES – CONTINUED

(c) Comparative Figures - Continued

In 2015-16, the LDA changed its inventory policy. The inventory policy now recognises that LDA has control of land when it receives custodianship of the land. The inventory also recognises land as property, plant and equipment when the land will not be developed in the foreseeable future.

Applying the new inventory policy provides more reliable and relevant information as it recognises when the LDA takes control of the land and includes recognition in inventory and a corresponding liability to the Territory and Municipal Services Directorate (TAMSD).

The financial affect of the retrospective correction to the accounting policy is disclosed in Note 3: ‘Change in Accounting Policy, Accounting Estimates and Correction of a Prior Period Error’.

(d) Rounding

All amounts in the financial statements have been rounded to the nearest thousand dollars ($’000). Use of "-" represents amounts equal to or rounded down to zero. Tables and notes may not add due to rounding.

(e) Revenue Recognition

Land Sales Land sales revenue is recognised when the significant risks and rewards of the sale of land are transferred to the purchaser. Whilst the point of recognition for one sale may differ from another depending on the individual terms of each contract of sale, in most cases, sales completed via auction, direct grant, ballot or over the counter will be recognised on settlement. Sales under the Land Rent Scheme are recognised on settlement, at which point the LDA raises an invoice to the Chief Minister, Treasury and Economic Development Directorate (CMTEDD) to facilitate a payment for compensation for foregone land revenue. The compensation paid to the LDA reflects the amount the LDA would have received if the sale had been a capital sale rather than a rent lease (not for capital) sale to the land owner. Should sale proceeds be received by instalments over more than 12 months, the initial amount to be recorded as revenue is the fair value of the consideration, calculated by discounting the contracted value (nominal value) using a prevailing rate for a similar instrument of an issuer with a similar credit rating to the LDA. The difference which arises between the fair value of the consideration to be received over the deferral period and the contracted (nominal) value of the land is recognised as interest income over the deferral period.

Proceeds from land sales may comprise both cash related transactions and the value of infrastructure required to be provided by the purchaser as part of the Deed of Agreement associated with the sale of land. The Right to Receive Infrastructure from the purchaser is recognised as revenue and a receivable at the time of settlement. User Charges A user charge is revenue directly related to the sale of goods or provision of services. It is generated by consumer demand and is non-regulatory in nature. User charges revenue is recognised when the goods are provided or when the fee in respect of services provided is receivable. Interest Income Interest income is recognised using the effective interest method.


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NOTE 2 SIGNIFICANT ACCOUNTING POLICIES – CONTINUED (f) Resources Received and Provided Free of Charge

Resources received free of charge or provided free of charge are recorded as a revenue or as an expense in the Statement of Comprehensive Income at fair value or an asset in the Balance Sheet. The revenue is separately disclosed under resources received free of charge, with the expense being recorded in the line item to which it relates. Goods and services received free of charge from ACT Government agencies are recorded as resources received free of charge, whereas goods and services received free of charge from entities external to the ACT Government are recorded as donations. Services that are received free of charge are only recorded in the Statement of Comprehensive Income if they can be reliably measured and would have been purchased if not provided to the LDA free of charge. Resources provided free of charge are recorded at their fair value in the expense line items to which they relate. From time to time, the LDA receives Territory-owned land from other ACT Government agencies free of charge, which it prepares for sale on behalf of the Territory.

(g) Repairs and Maintenance The LDA undertakes cyclical maintenance as required on its buildings and plant and equipment. Where the maintenance leads to an upgrade of the asset, and increases the service potential of the existing buildings or plant and equipment, the cost is capitalised. Maintenance expenses which do not increase the service potential of the asset are expensed. (h) Waivers of Debt Debts that are waived are expensed during the year in which the right to payment was waived. Further details of waivers are disclosed at Note 18: 'Waivers, Impairment Losses and Write-offs’. (i) Taxation The LDA is registered with the National Tax Equivalent Regime, and is required to calculate income tax in accordance with the Income Tax Assessment Act 1997 and to account for the resulting amounts under the requirements of Australian Accounting Standard AASB 112 ‘Income Taxes’. The charge for the current national tax equivalent expense is based on the surplus/ (deficit) for the year adjusted for any non-assessable or non-deductible items. It is calculated using the tax rates that have been enacted or are substantially enacted by the balance date. Deferred tax is accounted for using the balance sheet liability method in respect of temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. No deferred income tax will be recognised from the initial recognition of an asset or liability, excluding a business combination, where there is no effect on accounting or taxable surplus or deficit. Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is realised or the liability settled. Deferred tax is credited in the Statement of Comprehensive Income except where it relates to items that may be credited directly to equity, in which case the deferred tax is adjusted directly against equity. Deferred income tax assets are recognised to the extent that it is probable that future tax profits will be available against which deductible temporary differences can be utilised. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised.

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NOTE 2 SIGNIFICANT ACCOUNTING POLICIES - CONTINUED (i) Taxation – Continued The LDA applies the margin scheme for land which is improved at the date of sale, which allows the sellers of real property to pay Goods and Services Tax (GST) equal to one-eleventh of the 'margin' rather than one-eleventh of the sale price. The 'margin' is generally the difference between the sale price and a valuation of the property at the relevant date. Where permitted, the LDA sells unimproved land ‘GST-Free’ consistent with the GST-free supply provisions of A New Tax System (Goods and Services Tax) Act 1999. (j) Current and Non-Current Items Assets and liabilities are classified as current or non-current in the Balance Sheet and in the relevant notes. Assets are classified as current where they are expected to be realised within 12 months after the reporting date. Liabilities are classified as current when they are due to be settled within 12 months after the reporting date or the LDA does not have an unconditional right to defer settlement of the liability for at least 12 months after the reporting date. Assets or liabilities which do not fall within the current classification are classified as non-current. (k) Impairment of Assets The LDA assesses, at each reporting date, whether there is any indication that an asset may be impaired. Assets are also reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Any resulting impairment losses, for land and buildings, are recognised as a decrease in the available Asset Revaluation Surplus relating to these assets. Where the impairment loss is greater than the available balance in the Asset Revaluation Surplus for the asset, the difference is expensed in the Statement of Comprehensive Income. Impairment losses for plant and equipment and leasehold improvements are recognised in the Statement of Comprehensive Income as these assets are carried as cost. Also, in all cases the carrying amount of the asset is reduced to its recoverable amount. Impairment of receivables is discussed at Note 2(m): ‘Receivables’.

(l) Cash and Cash Equivalents Cash includes cash at bank, cash on hand and cash equivalents. Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash and are not subject to price risk.


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NOTE 2 SIGNIFICANT ACCOUNTING POLICIES - CONTINUED

(m) Receivables Receivables include the Right to Receive Infrastructure, Trade Receivables, Deferred Payment Receivables, Accrued Revenue and Goods and Services Tax Refunds Due. Right to Receive Infrastructure The sale of land by the LDA can involve the right to receive infrastructure assets (such as roads, services and landscaping) required to be constructed by the purchaser as part of the sale conditions. Upon its completion and handover to the LDA by the purchaser, the infrastructure works are transferred to the TAMSD and Icon Water. At contract settlement, the LDA recognises the value of the infrastructure to be developed as a receivable. Trade Receivables Trade Receivables arise in the normal course of providing goods and services to other agencies and the public. Trade Receivables are payable within 30 days after the issue of an invoice or after the goods or services have been provided under a contractual arrangement and in accordance with the terms and conditions of that contract.

Accounts receivable (including trade receivables and other trade receivables) are initially recognised at fair value and are subsequently measured at amortised cost, with any adjustments to the carrying amount being recorded in the Statement of Comprehensive Income. Deferred Payment Receivables Should sale proceeds be received by instalments over more than 12 months, the initial amount to be recorded as a receivable is the fair value calculated by discounting the future instalments using a prevailing rate for a similar instrument of an issuer with a similar credit rating to the LDA. The deferred payment receivable is increased by the amount recognised as interest revenue during the year so that the carrying amount of the receivable at the end of the discount period equals the final cash payment to be received. Refer Note 2(e): ‘Revenue Recognition’. Impairment of Receivables Any allowance for impairment of receivables represents the amount of trade and other receivables the LDA estimates will not be collected. The allowance for impairment losses is based on objective evidence and a review of overdue balances. The LDA considers the following is objective evidence of impairment, unless individual debts have been assessed as recoverable: (a) becoming aware of financial difficulties of debtors; (b) default payments; or (c) debts more than 90 days overdue. The amount of the allowance is recognised in the Statement of Comprehensive Income. The allowance for impairment losses is written off against the allowance account when the LDA ceases action to collect the debt as it considers that it will cost more to recover the debt than the debt is worth.

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NOTE 2 SIGNIFICANT ACCOUNTING POLICIES - CONTINUED (n) Property, Plant and Equipment Acquisition and Recognition of Property, Plant and Equipment Property, plant and equipment are initially recorded at cost. Cost includes the purchase price, directly attributable costs and the estimated cost of dismantling and removing the item (where, upon acquisition, there is a present obligation to remove the item). Where property, plant and equipment is acquired at no cost, or minimal cost, cost is its fair value as at the date of acquisition. The LDA capitalises all property, plant and equipment with a value of $5,000 or more. Land acquisitions that are long term in nature and not readily identifiable for development and/or are recorded as land under property, plant and equipment as disclosed in Note 24. Land will be available for development when it first appears in the Indicative Land Release Program. Measurement of Property, Plant and Equipment after Initial Recognition Property, plant and equipment is valued using the cost or revaluation model of valuation. Cost includes the purchase price, directly attributable costs and the estimated cost of dismantling and removing the item (where, upon acquisition, there is a present obligation to remove the item). Land and buildings are measured at fair value. Plant and equipment, leasehold improvements and heritage assets are measured at cost. Fair value for land and non-specialised buildings is measured using the market approach valuation technique. This approach uses prices and other relevant information generated by market transactions involving identical or similar assets. Fair value for specialised buildings is measured by reference to the cost of replacing the remaining future economic benefits embodied in the asset (i.e. depreciated replacement cost). This is the cost approach valuation technique. The LDA obtains an independent valuation for its land and buildings every three years. The latest valuation was at 30 June 2016. If at any time, management considers the carrying amount of an asset materially differs from its fair value, then the asset will be revalued regardless of when the last valuation took place. Land and buildings that are acquired between revaluations are held at cost until the next valuation, where they are re-valued to fair value. (o) Intangible Assets An intangible asset is an identifiable non-monetary asset without physical substance. The LDA’s intangible assets are composed of externally acquired software for internal use and goodwill.

Intangible assets acquired separately are measured on initial recognition at cost. Goodwill on the acquisition of a business combination is recognised at acquisition date when consideration paid for the business exceeds the fair value of assets and liabilities of the business acquired at the date of acquisition.

Externally acquired software is recognised and capitalised when:

(i) it is probable that the expected future economic benefits that are attributable to the software will flow to the LDA;

(ii) the cost of the software can be measured reliably; and (iii) the acquisition cost is equal to or exceeds $50,000.

Capitalised software has a finite useful life. Software is amortised on a straight-line basis over its useful life. Intangible assets are measured at cost.


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NOTE 2 SIGNIFICANT ACCOUNTING POLICIES - CONTINUED (p) Depreciation and Amortisation of Non-Current Assets

Amortisation is used in relation to intangible assets and depreciation is applied to physical assets such as buildings, leasehold improvements, and plant and equipment.

Land and some community and heritage assets have an unlimited useful life and are therefore not depreciated.

Leasehold improvements are depreciated over the estimated useful life of each asset, or the unexpired period of the relevant lease, whichever is shorter. All depreciation and amortisation is calculated after first deducting any residual values which remain for each asset.

Depreciation and amortisation for non-current assets is determined as follows:

Class of Asset Depreciation/Amortisation Useful Life* (Years) Buildings Straight Line 10-50 Leasehold Improvements Straight Line 5 Plant and Equipment Straight Line 3-5 Intangibles Straight Line 2-5 * Useful life commences when an asset is first acquired. When an asset is re-valued, it is depreciated or amortised over the remaining useful life of that asset.

(q) Inventories

Inventories held for sale include Developed Land and Land Being Developed - Work in Progress, and are valued at the lower of cost and net realisable value. Land Being Developed - Work in Progress is transferred to Developed Land when operational acceptance is provided by TAMSD and the land becomes available for sale. The cost of Developed Land includes land acquisition and land development costs. Land transferred from the TAMSD is recognised in Work in Progress inventory when custodianship of land is received by the LDA. Land Acquisitions Unleased Territory land is acquired at market value and the LDA makes payment to the TAMSD when the land is sold to third parties. The LDA also purchases land from other ACT Government agencies and third parties at market value as required. It also receives land for no cost through transfers from other ACT Government agencies. When land acquired is classified as a strategic land acquisition under the Planning and Development (Land Acquisition Policy Framework) Direction 2014 (No 1) it is recorded as Property, Plant and Equipment as further disclosed in Note 24. Also, as explained in Note 3 (c): ‘Changes in Accounting Policy’ the cost of developing land as inventories now includes staff costs. Capitalised Development Costs Costs of development are costs that directly relate to preparing sites for sale as serviced land. These include expenditure associated with the implementation of estate planning, demolition, remediation activities, and relocation or construction of infrastructure services. Costs associated with marketing and selling activities are not considered to be directly related to the preparation of the sites for sale as serviced land, and are expensed as incurred. Land sites held for development and sale are classified as current assets when they are expected to be sold within 12 months.

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NOTE 2 SIGNIFICANT ACCOUNTING POLICIES - CONTINUED (r) Payables Payables are initially recognised at fair value based on the transaction cost and subsequent to initial recognition at amortised cost, with any adjustments to the carrying amount being recorded in the Statement of Comprehensive Income. All amounts are normally settled within 30 days after the invoice date. Payables include Trade Payables, Accrued Expenses, Payable to TAMSD for Land Sold and Other Payables. (s) Other Provisions Provision for Project Completion For any parcel of Developed Land, the proportion of costs anticipated but not yet incurred is accounted for in the Provision for Project Completion. An estimate is made of the amount of work still to be completed by the LDA. This estimate takes the form of a ‘project completion percentage’ and is calculated on a monthly basis. The Provision for Project Completions is a calculation combining the total anticipated costs of each finished parcel of Developed Land together with the project completion percentage. Provision to Transfer Infrastructure The sale of land by the LDA can involve the receipt of cash as well as the value of infrastructure assets (such as roads, services and landscaping) required to be constructed by the purchaser as part of the sale conditions. Upon completion, the infrastructure works are transferred to TAMSD and Icon Water. At contract settlement, LDA recognises the value of the future infrastructure to be transferred to TAMSD and Icon Water as a liability. (t) Joint Arrangements Investments in joint arrangements are classified as either joint ventures or joint operations. The classification depends on the rights and obligations of the parties to the arrangement, rather than the legal structure of the joint arrangement. Joint Ventures A Joint Venture is a joint arrangement that the LDA controls jointly with another investor(s) and has rights to the net assets of the arrangement. The LDA uses the equity method to account for its interest in two unincorporated joint ventures (Forde Joint Venture and Crace Joint Venture). Under the equity method, on initial recognition, the investment in a joint venture is recognised at cost and the carrying amount is increased or decreased to recognise the LDA’s share of the profit or loss of the joint venture after the date of acquisition. The LDA’s share of the joint venture’s profit or loss is recognised in the Statement of Comprehensive Income. Distributions received from a joint venture reduce the carrying amount of the investment. During the year the LDA entered into a Joint Arrangement to develop land to the west of Belconnen. The agreement has been executed, however, it has not yet commenced. The Joint Arrangement will commence once the disallowance period for Draft Amendment 86 of the National Capital plan has ended, without it being disallowed.

(u) Employee Benefits Employee benefits include:

short-term employee benefits, such as salaries and superannuation, annual leave loading and other applicable on-costs (on-costs include payroll tax and fringe benefits tax), if expected to be settled wholly before twelve months after the end of the annual reporting period in which the employees render the related services;


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(u) Employee Benefits - Continued

other long-term benefits, such as long service leave and annual leave; and termination benefits.

On-costs include annual leave, long service leave, superannuation and other costs that are incurred when employees take annual leave and long service leave.

Accrued Salaries and Superannuation

Accrued salaries and superannuation are measured at the amount that remains unpaid to employees at the end of the reporting period.

Annual and Long Service Leave

Annual and long service leave, including applicable on-costs that are not expected to be wholly settled before twelve months after the end of the reporting period when the employees render the related service are measured at the present value of estimated future payments to be made in respect of services provided by employees up to the end of the reporting period. Consideration is given to the future wage and salary levels, experience of employee departures and periods of service. At the end of each reporting period end, the present value of future annual leave and long service leave payments is estimated using market yields on high quality corporate bonds, with the terms to maturity that match, as closely as possible, the estimated future cash flows. Annual leave liabilities have been estimated on the assumption that they will be wholly settled within three years. At 30 June 2016, the rate used to estimate the present value of future annual leave payments is 100.5% (100.4% at 30 June 2015). At 30 June 2016, the rate used to estimate the present value of future payments for long service leave is 101.3% (92.4% at 30 June 2015). The long service leave liability is estimated with reference to the minimum period of qualifying service. For employees with less than the required minimum period of 7 years of qualifying service, the probability that employees will reach the required minimum period has been taken into account in estimating the provision for long service leave and applicable on-costs. The provision for annual leave and long service leave includes estimated on-costs. As these on-costs only become payable if the employee takes annual and long service leave while in-service, the probability that employees will take annual and long service leave while in service has been taken into account in estimating the liability for on-costs. Annual leave and long service leave liabilities are classified as current liabilities in the Balance Sheet where there is no unconditional right to defer the settlement of the liability for at least 12 months. Conditional long service liabilities are classified as non-current because the agency has an unconditional right to defer the settlement of the liability until the employee has completed the requisite years of service. (v) Superannuation Superannuation payments are made to the Territory Banking Account each fortnight to cover the LDA's superannuation liability for the Commonwealth Superannuation Scheme (CSS) and the Public Sector Superannuation Scheme (PSS). This payment covers the CSS/PSS employer contribution but does not include the productivity component. The productivity component is paid directly to the Commonwealth Superannuation Corporation (CSC) by the LDA. The CSS and PSS are defined benefit superannuation plans meaning that the defined benefits received by employees are based on the employee's years of service and average final salary.

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NOTE 2 SIGNIFICANT ACCOUNTING POLICIES – CONTINUED (v) Superannuation – Continued Superannuation payments have also been made directly to superannuation funds for those members of the Public Sector who are part of superannuation accumulation schemes. This includes the Public Sector Superannuation Scheme Accumulation Plan (PSSAP) and schemes of employee choice. The total Territory Superannuation liability for the CSS, PSS, and CSC is recognised in the Chief Minister, Treasury and Economic Development Directorate’s Superannuation Provision Account and the external schemes recognise the superannuation liability for the PSSAP and other schemes respectively. This superannuation liability is not recognised at individual agency level. The ACT Government is liable for the reimbursement of the emerging costs of benefits paid each year to members of the CSS and PSS in respect of the ACT Government service provided after 1 July 1989. These reimbursement payments are made from the Superannuation Provision Account. (w) Equity Contributed by the ACT Government Contributions made by the ACT Government through its role as owner of the LDA are treated as contributions of equity. Property transferred to the LDA from other agencies identified as part of the Asset Recycling Initiative has been treated as a contribution of equity. (x) Insurance Major risks are insured through the ACT Insurance Authority. The excess payable, under this arrangement, varies depending on each class of insurance held. (y) Leases The LDA has entered into operating leases. Operating Leases Operating leases do not effectively transfer to the LDA substantially all of the risks and rewards incidental to ownership of the asset under an operating lease. Operating lease payments are recorded as an expense in the Statement of Comprehensive Income on a straight line basis over the term of the lease. (z) Business Combinations and Goodwill Business combinations are accounted for using the acquisition method. The cost of an acquisition is measured as the aggregate of the consideration paid, which is at fair value on the acquisition date. Goodwill is initially measured at cost. If the fair value of the net assets of the Business acquired exceeds the aggregate consideration paid, the LDA re-assesses whether it has correctly identified all of the assets acquired and all of the liabilities assumed and reviews the procedures used to measure the amounts to be recognised at the acquisition date. If the reassessment still results in an excess of the fair value of net assets acquired over the aggregate consideration paid, then a gain is recognised in profit or loss. After initial recognition, goodwill is measured at cost less any accumulated impairment losses.


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NOTE 2 SIGNIFICANT ACCOUNTING POLICIES - CONTINUED (aa) Finished Inventory - Land Value The land value of finished inventory represents the land portion of inventory ready for sale but yet to be sold. This is recorded as a liability when an Estate Development Plan is approved as the LDA is obligated to pay TAMSD for the value of land once it is sold. (ab) Budgetary Reporting – Explanations of Major variances between Actual Amounts and Original Budget

Amounts Explanations of major variances between the 2015-16 original budget and the 30 June 2016 actual results are discussed in Note 40: ‘Budgetary Reporting’. A definition of ‘major variances’ is provided in Note 4: ‘Significant Accounting Judgements and Estimates’- Budgetary Reporting–Explanations of Major Variances between Actual Amounts and Original Budget Amounts.

(ac) Impact of Accounting Standards Issued but yet to be applied The following new and revised accounting standards and interpretations have been issued by the Australian Accounting Standards Board but do not apply to the current reporting period. The application date applies to the first reporting period beginning on or after this date. The LDA does not intend to adopt these standards and interpretations early. Where applicable, these Australian Accounting Standards will be adopted from their application date. The LDA only discloses those standards and amending standards that are expected to have a material impact or where it has not yet assessed its impact. AASB 9 Financial Instruments (December 2014) (application date 1 January 2018)

This standard supersedes AASB 139 Financial Instruments: Recognition and Measurement. The main impact of AASB 9 is that it will change the classification, measurement and disclosures of LDA’s financial assets. The LDA has determined that there would be no material impact on its balance unless loans were into with a third party. AASB 15 Revenue from Contracts with Customers (application date 1 January 2018)

AASB 15 is the new standard for revenue recognition. It establishes a comprehensive framework for determining whether, how much and when revenue is recognised. It replaces AASB 111 Construction Contracts and AASB 118 Revenue. The LDA has determined that the changes to AASB could have a material impact on its recognition of revenue it receives for infrastructure depending on the contracts entered into when the new standard takes effect. On the adoption of AASB 15 revenue will be recognised when infrastructure assets are progressively transferred to the LDA instead at the time of land settlement. AASB 16 Leases (application date 1 January 2019)

AASB 16 is the new standard for leases. It introduces a single lessee accounting model and requires a lessee to recognise assets and liabilities for all leases with a term of more than 12 months, unless the underlying asset value is low. The LDA has determined that AASB 16 will have a material impact on its financial statements. The LDA will make a more detailed assessment of the impact over the next 12 months.

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(ac) Impact of Accounting Standards Issued but yet to be applied - Continued AASB 2014-3 Amendments Australian Accounting Standards – Accounting for Acquisitions of Interests in

Joint Operations [AASB 1 and 11] (application date 1 January 2016);

These amendments could have a material impact on the LDA financial statements if the LDA acquires an interest in a Joint Operation. AASB 2014-10 Amendments to Australian Accounting Standards – Sale or Contribution of Assets between

an Investor and its Associate or Joint Venture [AASB 10 and 128] (application date 1 January 2018)

This standard makes amendments to address an inconsistency between the requirements in AASB 10 and those in AASB 128 (August 2011), in dealing with the sale or contribution of assets between an investor and its associate or joint venture.

The LDA has determined that these amendments could have a material impact on its financial statements depending on the value of any assets sold or transferred to its Joint Ventures.

AASB 2015-8 Amendments to Australian Accounting Standards – Effective date of AASB 15 (application

date 1 January 2017)

This standard defers the application date of AASB 15 Revenue from Contracts with Customers to 1 January 2018. At this stage LDA is not able to estimate the impact of AASB 15 on its financial statements.

The LDA has determined that the changes to AASB could have a material impact on its recognition of revenue it receives for infrastructure depending on the contracts entered into when the new standard takes effect. On adoption of AASB 15, revenue will now be recognised when infrastructure assets are progressively transferred to the LDA instead at the time of land settlement. AASB 2015-10 Amendments to Australian Accounting Standards – Effective Date of Amendments to

AASB 10 and AASB 128 (application date 1 January 2016)

This standard defers the application date of amendments to AASB 10 and AASB 128 that were made in AASB 2014-10, Amendments to Australian Accounting Standards – Sale or Contribution of Assets between an Investor and its Associate or Joint Venture, from 1 January 2016 to 1 January 2018.

The LDA has determined that these amendments could have a material impact on its financial statements depending on the value of any assets sold or transferred to its Joint Ventures.


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NOTE 3 CHANGE IN ACCOUNTING POLICY, ACCOUNTING ESTIMATES AND CORRECTION OF A PRIOR PERIOD ERROR

(a) Change in Accounting Policy

Capitalisation of staff costs in inventories

In 2015-16, the LDA implemented a time capture system “Intertec” to accurately record the time staff spent on various projects. As this information can now be reliably measured, the LDA has capitalised the staff costs that can be directly attributed to developing land as inventories. This has resulted in a net decrease of wages and salaries by $2.9 million and superannuation expenses by $0.4 million in the Statement of Comprehensive Income. (b) Change in Accounting Estimates Bi-annual review of project costing On a bi-annual basis, the LDA undertakes a detailed review of its estimated project costs to determine remaining funding requirements. During this process estimates of project contingency costs are also reviewed. Any adjustments as a result of the Bi-Annual Reviews has an impact on the value of inventory and cost of land sold. Refer Note 15: ‘Cost of Land Sold’ for a detailed explanation. (c) Correction of a Prior Period Error

In 2015-16 the LDA corrected its accounting policy for inventory, the key change to the policy is when land is recorded. Land was previously recorded when operational acceptance was received from Territory and Municipal Services Directorate. It has since been determined that the LDA has control of the land when the custodianship of the land transfers to the LDA. This change in the timing of recording has led to misstatements in certain prior year line items in the LDA’s financial statements. The LDA has reviewed all land transfers during the reporting periods presented in its financial statements and restated its comparatives.

As this correction affects the reporting periods prior to the comparative period, the Balance Sheet balances at 30 June 2014 were restated as follows:

Inventory was increased by $121,510,334 to record land inventory that had not previously been recorded in the LDA’s Balance Sheet; and

Payables were increased by $78,506,058 to recognise a financial liability to the Territory and Municipal Services Directorate for land that the LDA has custodianship of, and received development approval for, but is yet to be developed. In addition $21,074,000 was reclassified from other liabilities to recognise a financial liability to the Territory and Municipal Services Directorate for land that has been developed and has received operational acceptance.

Accrued expenses were increased by $43,004,276 to recognise an obligation to Territory and Municipal Services Directorate for the land custodianship transfers offset by the $21,074,000 reclassification to payables.

As a result of the prior period correction for land recorded in inventory:

A decrease of $36,453,100 to National Tax Equivalents Payable was recorded to reflect the overpayment of income tax in previous periods, and

An increase of $36,453,100 to Deferred Tax Liability was recorded to reflect overpayment of income tax in previous periods.

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NOTE 3 CHANGE IN ACCOUNTING POLICY, ACCOUNTING ESTIMATES AND CORRECTION OF A PRIOR PERIOD ERROR - CONTINUED

(c) Correction of a Prior Period Error - Continued

In addition, the Balance Sheet balances were also understated at 30 June 2015 and consequently the following line items have been restated at 30 June 2015:

Inventory was increased by $86,882,693 to record land inventory that had not previously been recorded in the LDA’s Balance Sheet, and

Payables were increased by $78,405,933 to recognise a financial liability to the Territory and Municipal Services Directorate for land that the LDA has custodianship of and received development approval for but is yet to be developed. In addition $27,808,000 was reclassified from other liabilities to recognise a financial liability to the Territory and Municipal Services Directorate for land that has been developed and has received operational acceptance.

Accrued expenses were increased by $8,476,760 to record an obligation to the Territory and Municipal Services Directorate for the land custodianship transfers offset by the $27,808,000 reclassification to payables.

As a result of the prior period correction for land recorded in inventory:

A decrease of $26,064,808 to National Tax Equivalents Payable was recorded to reflect the overpayment of income tax in previous periods, and

An increase of $26,064,808 to Deferred Tax Liability was recorded to reflect the overpayment of income tax in previous periods.

30 June 2015 Comparative year Note No.

Actual 2015 Correction of Error Adjustment

Restated Actual 2015

Financial Statement Balance Affected

$’000 $’000 $’000

Balance Sheet Extract

Current Assets

Inventories 23 188,314 86,883 275,197

Total Current Assets 327,140 86,883 414,023

Total Assets 431,004 86,883 517,887

Current Liabilities

Payables 27 52,517 106,214 158,731

National Tax Equivalents Payable 30 3,040 (26,065) (23,025)

Other Liabilities 31 90,560 (19,331) 71,229

Total Current Liabilities 211,685 60,818 272,503

Non-Current Liabilities

Deferred Tax Liability 32 47,893 26,065 73,958

Total Non-Current Liabilities 93,539 26,065 119,604

Total Liabilities 305,224 26,065 392,107

Net Assets 125,780 - 125,780


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NOTE 3 CHANGE IN ACCOUNTING POLICY AND ACCOUNTING ESTIMATES - CONTINUED (c) Correction of a Prior Period Error - Continued

1 July 2014 (Comparative Year Opening Balances)

Note No.

Actual 2014

Correction of Error

Adjustment

Restated Actual 2014

Financial Statement Balance Affected

$’000 $’000 $’000

Balance Sheet Extract

Current Assets

Inventories 23 134,926 121,510 256,436

Total Current Assets 308,972 121,510 430,482

Total Assets 400,010 121,510 521,520

Current Liabilities

Payables 27 61,025 99,580 160,605

National Tax Equivalents Payable 32 1,613 (36,453) (34,840)

Other Liabilities 31 71,707 21,930 93,637

Total Current Liabilities 201,101 85,057 286,158

Non-Current Liabilities

Deferred Tax Liability 34 38,733 36,453 75,186

Total Non-Current Liabilities 73,129 36,453 109,582

Total Liabilities 274,230 121,510 395,740

Net Assets 125,780 - 125,780

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NOTE 4 SIGNIFICANT ACCOUNTING JUDGEMENTS AND ESTIMATES In the process of applying the accounting policies listed in this note, the LDA has made the following judgements and estimates that have the most significant impact on the amounts recorded in the financial statements: (i) Fair Value of Assets: The LDA has made a significant estimate regarding the fair value of its assets. Land

and buildings have been recorded at fair value as determined by an independent Valuer. In some circumstances, buildings that are purpose built may in fact realise more or less than their carrying values.

(ii) Employee Benefits: Significant judgements have been applied in estimating the liability for employee

benefits. The estimated liability for annual and long service leave requires a consideration of the future wage and salary levels, experience of employee departures, probability that leave will be take in service and periods of service. The estimate also includes an assessment of the probability that employees will meet the minimum service period required to qualify for long service leave and that on-costs will become payable.

The significant judgements and assumptions included in the estimation of annual and long service leave liabilities include an assessment by an actuary. The Australian Government Actuary performed this assessment in May 2014. The assessment by an actuary is performed every 5 years. However it may be performed more frequently if there is a significant contextual change in the parameters underlying the 2014 report. The next actuarial review is expected to be undertaken by May 2019.

(iii) Inventories: Unleased Territory land acquired by the LDA from the TAMSD is recorded at the lower of cost

and net realisable value. Significant judgement is made based on management experience to determine net realisable value of the land. The cost of land held for sale includes acquisition and land development costs.

(iv) Project Costing: As detailed at Note 2(s) Other Provisions, the LDA has made a significant estimate of its Provision for Project Completion based on the difference between the actual expenditure incurred to date, the estimated percentage of the project that is complete and total forecast expenditure. The methodology is a consultative process involving both financial and operational executive staff. The calculations are based on invoices paid to date, accrued expenditure and an estimation of costs still to be incurred to ensure satisfactory completion of the project. Furthermore, an appropriate contingency is calculated based on management experience and expertise together with accepted industry norms.

(v) Allocation of Costs to Blocks Sold: Significant estimates have been made to calculate the cost of each block of land sold. The methodology applied allocates a percentage of the estimated total forecast expenditure (including capitalised development costs and land costs) to each individual block based on the square metres of each individual block as a proportion of the overall size of the land being developed.

(vi) Depreciation: The LDA has made a significant estimate in the lengths of useful lives over which it’s Property, Plant and Equipment and Intangible assets are depreciated. This estimation is the period in which utility will be gained from the use of assets, based on estimates of officers of the LDA.


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NOTE 4 SIGNIFICANT ACCOUNTING JUDGEMENTS AND ESTIMATES – CONTINUED (vii) Interest Rate Applicable to Deferred Payment Receivables: The LDA has made an estimate of the rate of

interest required to discount the contracted value (nominal value) of consideration to the fair value of consideration for those sales where payment has been deferred for more than 12 months. This occurs when proceeds are received by instalments. The rate of interest is calculated on a case by case basis and involves estimating the prevailing rate for a similar instrument that would be offered by an issuer with a similar credit rating to the LDA.

(viii) Contingent Liabilities: Based on an Australian Taxation Office (ATO) review finalised in 2014-15, the ATO agreed that the government margin scheme applied to approximately 90% of LDA’s claim leaving approximately 10% unresolved (the agreed ATO position). This has provided certainty for treatment of GST on unimproved land sales that fall within the agreed position. The LDA and the ATO are in discussions to address the remaining unresolved issues, which are due to the different interpretations of “unimproved land” and whether specific human interventions improve the land.

At the end of the reporting period, the LDA has assessed its position on the recoverability of the GST refunds, taking into consideration the unresolved issues with the ATO, the level of LDA’s control over certain outcomes to achieve the economic benefits and supporting external tax and legal advice received.

For overpaid GST on unimproved land, which does not meet the agreed ATO position, it is considered possible, not probable that the LDA position will be successful. Notwithstanding legal and tax advice received in support of LDA’s position, the resolution of the remaining issues are not within LDA’s control. As a consequence, amounts previously recognised as revenue for unimproved land falling outside of the agreed ATO position are recognised as a contingent liability.

(ix) Budgetary Reporting – Explanation of Major Variances between Actual Amounts and Original Budget Amounts: Significant judgements have been applied in determining what variances are considered as ‘major variances’ requiring explanations in Note 40 Budgetary Reporting. Variances are considered to be major variances if both of the following criteria are met: the line item is a significant line item: the line item actual amount accounts for more than 10% of

the relevant associated category (Income, Expenses and Equity totals) or sub-element (e.g. Current Liabilities and Receipts from Operating Activities totals) of the financial statements; and

the variances (original budget to actual) are greater than plus (+) or minus (-) 10% of the budget for the financial statement line item.

Further information on this is provided in Note 2 (ab) Budgetary Reporting.

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NOTE 5 LAND SALES 2016 2015 $’000 $’000 Sales of Land in LDA Estates (a) 526,241 323,287 Market Value of the Land Sold to Public Housing Renewal Taskforce 23,231 - (Less) Discount Provided to the Public Housing Renewal Taskforce (12,031) - Net Consideration Received for Land sold to Public Housing Renewal Taskforce (b) 11,200 - Commercial and Industrial Land Sales 26,265 25,306 Community Land Sales (c) 14,096 501 Additional Yield (d) 10,875 2,884 Infrastructure Delivered by Third Parties 4,412 3,950 Recovery of Overpaid GST (e) 577 (2,399) Total Land Sales 593,666 353,529

(a) The increase in land sales in 2015-16 was primarily due to increased sales in Moncrieff, Denman Prospect

Lawson and Greenway. These were partially offset by the finalisation of land sales in Campbell 5 and Flemington Road Corridor and a reduction in sales in Coombs and Kingston Foreshore.

(b) In 2015-16 the LDA has made an ‘in-kind’ contribution to the ACT Government by selling land to the Chief Minister, Treasury and Economic Development Directorate (Public Housing Renewal Taskforce) at a discount to its market value. The land sold will be used to construct new public housing to replace old stock being sold under the Asset Recycling Initiative program.

(c) There were more community land sales, including the sale of several aged care sites, in 2015-16 than in 2014-15.

(d) Additional revenue was received during 2015-16 from a variation to the deed agreement for City Section 84.

(e) In 2014-15, the LDA accounted for revenue for GST previously remitted to the Australian Taxation Office on land sales. The LDA has since received refunds for overpaid GST as a result of the Australian Taxation Office’s definition of improved land in its application of section 75-5 of the A New Tax System (Goods and Services Tax) Act 1999.


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NOTE 6 USER CHARGES 2016 2015 $’000 $’000 User Charges - ACT Government Service Charges (a) 539 841 Total User Charges - ACT Government 539 841 User Charges - Non-ACT Government Rental Income (b) 215 114 Total User Charges - Non-ACT Government 215 114 Total User Charges 754 955 (a) The LDA provided executive and financial management services to the Chief Minister, Treasury and

Economic Development Directorate (CMTEDD) under the Memorandum of Understanding between CMTEDD and the LDA.

(b) The LDA derived rental income from sites in Civic, Gungahlin, Westside Container Village (Westside Acton Park) and Belconnen.

NOTE 7 INTEREST

2016 2015 $’000 $’000 Revenue from ACT Government Entities Interest Revenue from the Territory Banking Account 2,275 2,255 Total Interest Revenue from ACT Government Entities 2,275 2,255 Revenue from Non-ACT Government Entities Interest from Banks (a) 1,256 261 Other Interest Revenue - Late Settlements and Deferred Payments 588 595 Total Interest Revenue from Non-ACT Government Entities 1,844 856 Total Interest Revenue 4,119 3,111 (a) Interest from Banks increased in 2015-16 due to the higher average cash reserves held in the LDA bank

account.

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NOTE 8 RESOURCES RECEIVED FREE OF CHARGE Resources received free of charge relate to goods and/or services being provided free of charge from other entities within the ACT Government.

2016 2015 $’000 $’000 Revenue from ACT Government Entities Resources Received from ACT Government Entities (a) 11,308 3,465 Total Resources Received Free of Charge 11,308 3,465

(a) Resources received free of charge relate to transfers of land from ACT Government agencies to the LDA at no cost. In 2015-16, these transfers included Narrabundah Block 45 Section 100, Higgins Blocks 3 and 4 Section 11.

NOTE 9 OTHER REVENUE 2016 2015 $’000 $’000 Forfeited Land Sale Deposits 306 284 Refund of Australian Taxation Office Settlement Fee (a) 927 - Application Fees 78 99 Gain on De-recognition of Finance Lease Liability - 103 Other Revenue (b) 191 10 Total Other Revenue 1,502 496 (a) In 2015-16 the Australian Taxation Office refunded a previous settlement fee paid by the LDA for unpaid

GST liabilities.

Other revenue is primarily represented by the forfeiture of a bond for non-compliance by a contractor for the delivery of contracted works.D


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NOTE 10 EMPLOYEE EXPENSES 2016 2015 $’000 $’000 Wages and Salaries 10,725 10,496 Salary Costs Capitalised in Inventories (2,918) - Subtotal Wages and Salaries 7,807 10,496 Payroll Tax 734 714 Long Service Leave - Movement in Provision 545 (72) Annual Leave - Movement in Provision 125 (65) Workers' Compensation Insurance Premium 72 57 Fringe Benefit Tax 5 2 Total Employee Expenses (a) 9,288 11,132 Australian Accounting Standard AASB 102 Inventories requires other costs attributable to bringing inventories to their present location and condition such as direct labour costs to be recorded (capitalised) in inventories where these costs can be reliably measured. In 2015-16 the LDA implemented a time capture system for staff to record their time against various projects which enabled direct staff costs attributable to inventories to be reliably measured. This has resulted in a net decrease in salaries and wages in the Statement of Comprehensive Income. Note 3(c) provides more information on this change in accounting policy.

NOTE 11 SUPERANNUATION EXPENSES

(a) Where it can be reliably measured Australian Accounting Standard AASB 102 Inventories requires other

costs attributable to bringing inventories to their present location and condition such as direct labour costs to be recorded (capitalised) in inventories where these costs can be reliably measured. In 2015-16 the LDA implemented a time capture system for staff to record their time against various projects which enabled direct staff cost attributable to inventories to be reliably measured. This has resulted in a net decrease in superannuation expenses in the Statement of Comprehensive Income. Note 3(c) provides more information on this change in accounting policy.

2016 2015 $’000 $’000 Superannuation Contributions to the Territory Banking Account 851 833 Superannuation to External Providers 502 525 Commonwealth Superannuation Corporation (CSC) 85 81 Productivity Benefit 116 97 Subtotal Superannuation Expenses 1,554 1,536 Superannuation Costs Capitalised in Inventories (a) (445) - Total Superannuation Expenses 1,109 1,536

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NOTE 12 SUPPLIES AND SERVICES 2016 2015 $’000 $’000 Selling Costs (a) 6,107 6,737 Contractors and Consultants (b) 3,409 4,967 Asset Management 1,865 1,618 Advertising and Marketing Costs 1,424 1,544 Operating Lease Rental Payments 737 698 Insurance 458 577 Office Services 296 377 Staff Development 214 194 Office Equipment and Consumables 119 137 Other (c) 581 649 Total Supplies and Services 15,210 17,498 (a) Selling costs reduced in 2015-16 due to the fewer sales contracts being exchanged in comparison to 2014-

15.

(b) Contractors and consultants include a cost reimbursement of professional fees from the Crace Joint Venture. The fees were originally incurred for the submission of a GST refund claim with the Australian Taxation Office for land sales in Crace, which has reduced the LDA’s contractors and consultants’ costs by $1.4 million.

(c) Other supplies and services comprise other operating expenses including travel expenses, vehicle expenses and the construction industry training levy.

NOTE 13 DEPRECIATION AND AMORTISATION 2016 2015 Depreciation $’000 $’000 Buildings 279 67 Leasehold Improvements 14 9 Plant and Equipment 5 4 Motor Vehicles under a Finance Lease - 21 Total Depreciation (a) 298 101 Amortisation Intangible Assets 53 40 Total Amortisation 53 40 Total Depreciation and Amortisation 351 141 (a) The increase in depreciation is due to the commencement of depreciation of the Westside Container

Village (Westside Acton Park) which was acquired in 2015-16.


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NOTE 14 PURCHASED SERVICES

Purchased services are amounts paid to obtain services from other ACT Government agencies.

2016 2015 $’000 $’000 Purchased Services (a) 4,064 3,906 Total Purchased Services 4,064 3,906

(a) Purchased services comprise: Chief Minister, Treasury and Economic Development Directorate Memorandum of Understanding (MOU) 2,310 2,110 Shared Services Finance 130 126 Shared Services Information and Communication Technology 783 697 Shared Services Human Resources 54 53 Procurement and Capital Works 223 225 Government Solicitor's Office 564 695 Total Purchased Services 4,064 3,906

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NOTE 15 COST OF LAND SOLD 2016 2015 $’000 $’000 Land Transfers and Acquisitions (a) 91,696 46,279 Development Costs (a) 212,233 136,972 Transfer of Infrastructure Assets (b) 4,412 3,950 Total Costs of Land Sold 308,341 187,201

(a) Cost of Land Sold represents the cost of inventories sold during the reporting period, which includes the acquisition of land, direct costs relating to the development of land and the value of infrastructure constructed by land purchasers and transferred to the TAMSD and Icon Water. Estimates of direct development costs are made for unfinished project wide works.

The cost of inventories sold is expensed in the Statement of Comprehensive Income when the developed land is sold. The increase in capitalised development costs and land transfers and acquisitions were driven by an increase in land sales. The increase in Land Acquisitions and Development Costs is consistent with the increase in land sales when compared to 2014-15. The increase in development costs has been partially offset by a change in estimates of the development costs, which are reviewed on a biannual basis. As a result of the bi-annual review there was a change in estimate of $6.3 million and accounted for as a decrease in Cost of Land Sold.

(b) The increase in infrastructure sales delivered by third parties was due to an increased number of contracts settled that required infrastructure to be delivered by third parties.

NOTE 16 INTEREST EXPENSES 2016 2015 $’000 $’000 Land Holding Costs Equivalents (a) 4,873 2,530 Other 3 5 Total Borrowing Costs 4,876 2,535 (a) Consistent with the ACT Government’s policy on competitive neutrality, the LDA applies similar costing

and pricing principles, taxation and debt guarantee requirements and appropriate regulations as a fully corporatised business (see Note 1b: Public Trading Enterprise).

The increase in land holding costs equivalents (interest) on land purchased from the Territory was due to the value of the land purchased in LDA estates being higher than in the previous financial year.


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NOTE 17 OTHER EXPENSES 2016 2015 $’000 $’000 Inventory Loss (a) 20,672 18,881 Stamp Duty Equivalents (b) 3,876 2,627 Direct Sales Inventory Write-off - 5 Contribution to Projects - 131 Loss on De-recognition of Motor Vehicles under a Finance Lease - 102 Resources Provided to Other Agency Free of Charge (c) 2,409 3,574 Total Other Expenses 26,957 25,320

(a) Inventories held for sale are valued at the lower of cost and net realisable value. The difference between the cost and net realisable value is recorded as an Inventory Loss. In 2015-16, this included the revaluation of Narrabundah Block 45 Section 100, Higgins Block 3 and 4 Section 11 and Lyneham Block 7 and 8 Section 51 (Owen Flats) following the transfer from other ACT Government agencies. Also included are pre-development costs written off for the Canberra Brickworks project that have since changed in scope compared to the original project concept plans.

(b) Consistent with the ACT Government’s policy on competitive neutrality, the LDA applies similar costing and pricing principles, taxation and debt guarantee requirements and appropriate regulations as a fully corporatised business (see Note 1b: Public Trading Enterprise). The increase in stamp duty equivalents was due to the higher value of land purchased in LDA estates from the Territory in 2015-16.

(c) The LDA transferred the Black Mountain Peninsula Slipway to ACT Property Group at no cost to the ACT Property Group.

NOTE 18 WAIVERS, IMPAIRMENT LOSSES AND WRITE-OFFS A waiver is the relinquishment of a legal claim to a debt over which the LDA has control. The write-off of a debt is the accounting action taken to remove a debt from the books but does not relinquish the legal right of the LDA to recover the amount. The write-off of debts may occur for reasons other than waivers.

During the reporting period, there were no Waivers, Impairment Losses or Write-offs. (2014-15: Nil)

NOTE 19 AUDITOR’S REMUNERATION Auditor’s remuneration consists of financial audit services provided to the LDA by the ACT Audit Office. No other services were provided by the ACT Audit Office. 2016 2015 $’000 $’000 Audit Services Audit Fees Paid or Payable to the ACT Audit Office 113 109 Total Audit Fees 113 109

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NOTE 20 NATIONAL TAX EQUIVALENTS National Tax Equivalents 2016 2015 The major components of National Tax Equivalents are: $’000 $’000 Provision for Current Year National Tax Equivalents 95,086 19,273 Prior Year Adjustment to Current Year National Tax Equivalents 26,065 10,388 Current Year Movement in the Net Deferred Tax Liability, refer Note 32: 'Deferred Tax Liability' (20,832) 14,205 Prior Year Adjustment to Deferred Tax Liability (26,065) (10,388) National Tax Equivalents 74,254 33,478 Numeric Reconciliation of National Tax Equivalents to Prima Facie Tax Payable

Operating Surplus before National Tax Equivalents 247,511 111,594 National Tax calculated at 30% 74,254 33,478 National Tax Equivalents 74,254 33,478 NOTE 21 CASH AND CASH EQUIVALENTS NATIONAL TAX EQUIVALENTS 2016 2015 $’000 $’000 Cash on Hand 2 2 Cash at Bank (a) 283,885 27,481 Investments with the Territory Banking Account - Cash Facility (a) - 96,500 Total Cash and Cash Equivalents (b) 283,887 123,983 (a) During 2015-16 the LDA revised its Investment Policy to include an option of leaving surplus cash in the

Westpac transaction account (Cash at Bank) or the Cash facility (Investments with the Territory Banking Account) depending on which account had the more favourable interest rate at the time of investment. As the Westpac transaction account has the more favourable rate, cash from the Cash facility was transferred to Cash at Bank.

(b) The increase in cash is primarily due to timing of receipt of cash for a high number of land sales towards the end of the financial year.


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NOTE 22 RECEIVABLES 2016 2015 Current Receivables $’000 $’000 Trade Receivables (a) 17,547 3,584 Deferred Payment Receivables 4 4 Accrued Revenue 311 510 Right to Receive Infrastructure (b) 10,875 8,504 Total Current Receivables 28,737 12,602 Non-Current Receivables Deferred Payment Receivables 26 30 Right to Receive Infrastructure (b) 8,209 10,562 Total Non-Current Receivables 8,235 10,592 Total Receivables 36,972 23,194 (a) Trade receivables are primarily represented by Intra ACT Government debtors. The increase in Trade

Receivables is mainly due to unpaid sales of blocks to purchasers that qualify for the land rent scheme due from ACT Revenue Office (Chief Minister, Treasury and Economic Development Directorate). In addition outstanding cost recoveries from the Asset Recycling Initiative (Public Housing Renewal Taskforce) at 30 June 2016 for demolition costs.

(b) The variance in the Right to Receive Infrastructure is due to the reclassification of receivables from non-current assets to current assets due to receivables becoming due and recoverable within the next twelve months.

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NOTE 22 RECEIVABLES - CONTINUED Ageing of Receivables Not Overdue Overdue Total Greater than 30 to 60 Days 60 to 90 Days 90 Days $'000 $'000 $'000 $'000 $'000 2016 Not Impaired Receivables (1) 32,624 2,729 - 1,619 (2) 36,972 Impaired Receivables - - - - - 2015 Not Impaired Receivables 21,653 - - 1,541 (2) 23,194 Impaired Receivables - - - - - (1) 'Not impaired' refers to Net Receivables (that is Gross Receivables less Impaired Receivables). The

majority of receivables represent the right to receive infrastructure which are considered to be low risk. No allowance has been made for impairment of receivables.

(2) Management assessed that the debtor greater than 90 days overdue is collectible. The debtors greater than 90 days mainly relates to the $1.5 million receivable from the Commonwealth Department of Finance recorded in June 2014 for the remediation works undertaken at Kingston Foreshore. The parties agreed to continue discussions to resolve the matter.


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NOTE 22 RECEIVABLES - CONTINUED 2016 2015 $’000 $’000 Classification of ACT Government/Non-ACT Government Receivables Receivables from ACT Government Entities Trade Receivables (a) 15,101 1,149 Accrued Revenue 311 510 Total Receivables from ACT Government Entities 15,412 1,659 Receivables from Non-ACT Government Entities Right to Receive Infrastructure 19,085 19,066 Trade Receivables 2,445 2,435 Deferred Payment Receivables 30 34 Total Receivables from Non-ACT Government Entities 21,560 21,535 Total Receivables 36,972 23,194 (a) The increase in Trade Receivables is mainly due to higher sales of blocks to purchasers that qualify for the

land rent scheme to the ACT Revenue Office (Chief Minister, Treasury and Economic Development Directorate) owing at 30 June 2016.

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NOTE 23 INVENTORIES

2016 Restated 2015

$’000 $’000 Current Inventories

Developed Land, Construction Completed and Available for Sale, at Cost (a) 108,591 94,444 Land Being Developed - Work in Progress Land Acquisition Costs (b) 1,720 87,679 Development Costs (c) 23,492 93,074 Total Land Being Developed - Work in Progress 25,212 180,753 Total Current Inventories (e) 133,803 275,197 Non-Current Inventories

Land Being Developed - Work in Progress Land Acquisition Costs (d) 33,249 27,706 Development Costs 76,219 64,957 Total Land Being Developed - Work in Progress 109,468 92,663 Total Non-Current Inventories 109,468 92,663 Total Inventories (e) 243,271 367,860 (a) The increase in land available for sale is mainly due to an increase in finished land in Moncrieff not yet

settled.

(b) Land acquisition costs are costs incurred in acquiring land from the Territory in accordance with the LDA's status as a Public Trading Enterprise (see Note 1(b) Public Trading Enterprise). The decrease is due to the completion and sales of land in Moncrieff, Coombs, Wright and Denman Prospect during 2015-16.

(c) The decrease in development costs is due to the completion and sales of the land in Denman Prospect, Greenway, Kingston, Lawson and Moncrieff.

(d) The increase in non-current land inventory is due to recognising additional land acquired through

increased land development activity. The additional land recognised includes land in Molonglo, Hume West, Throsby, Taylor and Phillip section 9.

(e) The decrease in total current inventories is mainly due to settlements in Moncrieff, Lawson and Denman Prospect. The increase in non-current development costs is due to the development activities in Molonglo, Throsby and Taylor.


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NOTE 24 PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment includes the following classes of assets – land and buildings, leasehold improvements, plant and equipment and heritage assets. Land and Buildings held includes rural properties, property held for use as office buildings, storage facilities, and commercial display space. Land which is used for trading is classified as inventory (See Note 23: Inventories). Leasehold Improvements represent capital expenditure incurred in relation to leased assets. LDA has fit-outs in its leased buildings. Plant and Equipment includes furniture, fittings and electronic office equipment. Heritage assets held includes the John Fowler & Co Locomotive. 2016 2015 $’000 $’000 Land and Buildings Land at Fair Value 24,033 - Total Land Assets (a) 24,033 - Buildings at Fair Value (b) 1,174 - Less: Accumulated Depreciation (279) - Total Written-Down Value of Buildings 895 - Total Land and Written-Down Value of Land and Buildings (a) 24,928 - Leasehold Improvements at Cost Leasehold Improvements at Cost 2,379 2,379 Less: Accumulated Depreciation (2,348) (2,334) Total Written-Down Value of Leasehold Improvements Assets 31 45 Plant and Equipment at Cost Plant and Equipment at Cost 92 90 Less: Accumulated Depreciation (73) (68) Total Written-Down Value of Plant and Equipment 19 22 Heritage Assets at Cost Heritage Assets at Cost 442 435 Less: Accumulated Depreciation - - Total Written-Down Value of Heritage Assets 442 435 Total Written-Down Value of Property, Plant and Equipment 25,420 502

(a) The LDA has purchased rural land in Tuggeranong, Belconnen and Molonglo district as part of the

ACT Government’s long term plan to accommodate population growth.

(b) As part of the City to the Lake project the LDA has constructed the Westside Container Village (Westside Acton Park).

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NOTE 24 PROPERTY, PLANT AND EQUIPMENT - CONTINUED Valuation of Property, Plant and Equipment Jones Lang LaSalle Advisory Services Pty Ltd performed a valuation of LDA’s Land and Buildings at 30 June 2016.

Reconciliation of Property, Plant and Equipment at 30 June 2016

The following table shows the movement of Property, Plant and Equipment in 2015-16

Leasehold Plant and Heritage Land Buildings Improvements Equipment Assets Total $’000 $’000 $’000 $’000 $’000 $’000 Carrying Amount at the Beginning of the Reporting Period - - 45 22 435 502 Additions 27,395 1,174 - 2 7 28,578 Depreciation - (279) (14) (5) - (298) Revaluation Loss (3,362) - - - - (3,362) Carrying Amount at the End of the Reporting Period 24,033 895 31 19 442 25,420

Reconciliation of Property, Plant and Equipment at 30 June 2015

The following table shows the movement of Property, Plant and Equipment in 2014-15

Leasehold Plant and Heritage Land Buildings Improvements Equipment Assets Total $’000 $’000 $’000 $’000 $’000 $’000 Carrying Amount at the Beginning of the Reporting Period 1,100 2,541 8 131 - 3,780 Additions - - 46 48 435 529 Disposals (1,100) (2,675) - (77) - (3,852) Disposal Depreciation Written Back - 201 - 47 - 248 Depreciation - (67) (9) (25) - (101) De-recognition of Leased Motor Vehicles - - - (102) - (102) Carrying Amount at the End of the Reporting Period - - 45 22 435 502


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NOTE 24 PROPERTY, PLANT AND EQUIPMENT - CONTINUED Carrying Value of Assets Measured at Fair Value under the Cost Model The following classes of Property, Plant and Equipment, which are carried at fair value (as indicated above), would have had carrying values, if measured using the cost model, as follows: 2016 2015 $’000 $’000 Carrying value if measured using Cost Model Land Cost 27,395 - Net Carrying Amount of Land at Cost 27,395 - Buildings Cost 1,174 - Accumulated Depreciation and Impairment (279) - Net Carrying Amount of Buildings at Cost 895 -

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NOTE 24 PROPERTY, PLANT AND EQUIPMENT – CONTINUED Fair Value Hierarchy The LDA is required to classify property, plant and equipment into a Fair Value Hierarchy that reflects the significance of the inputs used in determining their fair value. The Fair Value Hierarchy is made up of the following three levels:

Level 1 - quoted prices (unadjusted) in active markets for identical assets or liabilities that the LDA can access at the measurement date;

Level 2 - inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly; and

Level 3 - inputs that are unobservable for particular assets or liabilities. Details of the LDA’s property, plant and equipment at fair value and information about the Fair Value Hierarchy at 30 June 2016 are as follows: 2016 Classification According to the Fair Value Hierarchy Level 1 Level 2 Level 3 Total $’000 $’000 $’000 $’000 Property, Plant and Equipment at Fair Value Land - 24,033 - 24,033 Buildings - 895 - 895 - 24,928 - 24,928

Transfers between Categories There were no transfers between Levels 1, 2 and 3 during the current and previous reporting period. Valuation Techniques, inputs and processes Level 2 Valuation Techniques and Inputs Valuation Technique: The valuation technique used to value land and buildings is the market approach that reflects recent transaction prices for similar properties and buildings (comparable in location and size). Inputs: Prices and other relevant information generated by market transactions involving comparable land and buildings were considered. Regard was taken of the Crown Lease terms and tenure, Australian Capital Territory Plan and National Capital Plan, where applicable, as well as current zoning. There has been no change to the above valuation techniques during the year. Transfers in and out of a fair value level are recognised on the date of the event or change in circumstances that caused the transfer.


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NOTE 25 BUSINESS COMBINATIONS Acquisitions in 2015-16 In 2015-16 the LDA acquired 100% of Lake Burley Griffin Boat Hire and 100% of Mr. Spokes Bike Hire and associated land. The boat hire and bike hire businesses are located in the West Basin on the shores of Lake Burley Griffin. The acquisitions are for the City to the Lake project and not to own and operate the businesses. In the short term, the bike hire business will continue to operate under a licence arrangement with a third-party. The boat hire business no longer operates. As the land was acquired for the City to the Lake project and land development is in the ordinary course of LDA’s business, it has been accounted for as land inventory. NOTE 26 INTANGIBLE ASSETS 2016 2015 $’000 $’000 Computer Software Externally Purchased Software Balance at the Beginning of the Reporting Period 218 81 Additions 43 137 Subtotal 261 218 Less: Accumulated Amortisation (164) (111) Total Externally Purchased Software 97 107 Total Computer Software 97 107 Other Intangibles Externally Purchased Goodwill Additions (a) 573 - Total Externally Purchased Goodwill 573 - Total Other Intangibles 573 - Total Intangible Assets 670 107 (a) Goodwill on acquisition of a business combination is recognised at acquisition date.

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NOTE 27 PAYABLES 2016 2015 $’000 $’000 Current Payables Other Payables (a) 32,942 36,295 Payables to Territory and Municipal Services Directorate for Land Sold (b) 11,792 762 Payables to Territory and Municipal Services Directorate for Land yet to be developed (b) 42,086 106,214

Accrued Expenses (c) 9,799 15,460 Total Current Payables 96,619 158,731 Non-Current Payables Payables to Territory and Municipal Services Directorate for Land yet to be Developed (b) 3,694 -

Total Non-Current Payables 3,694 - Total Payables 100,313 158,731 (a) Other payables include retention monies and land rent security payments. Retention monies are provided as security by purchasers that are held by the LDA, pending satisfactory completion of works under the terms of contracts, deeds or project delivery agreements. The decrease in 2015-16 compared to 2014-15 represents the completion of securitised works allowing monies to be released. Land rent security payments are amounts held by the LDA in respect of land rent blocks sold after 18 February 2013. Following settlement, the security amount is transferred to the Chief Minister, Treasury and Economic Development Directorate and credited against future land rent payments. The security payment is retained by the LDA to offset the costs of holding and re-selling the land in the event that a person enters into a contract for the purchase of land and, in breach of the contract, refuses to complete the purchase. The decrease in other payables was due to refunds of overpaid GST to the Crace Joint Venture. This was partially offset by capital distribution of $14.2 million to the ACT Government which is higher than last year ($8.8 million) following the transfer of Lyneham Block 7 and 8 Section 51 (Owen Flats) to the LDA as a capital injection. (b) The increase in payables to the Territory and Municipal Services Directorate relates to higher outstanding land payments at 30 June 2016 land in Moncrieff and Coombs.

(c) The decrease in accrued expenses relates to unpaid outstanding works completed up to 30 June 2016 compared to 30 June 2015 which had not yet been invoiced and fewer unpaid invoices at 30 June 2016.


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NOTE 27 PAYABLES - CONTINUED 2016 2015 $’000 $’000 Payables are aged as follows: Not Overdue 100,313 158,731 Overdue for Less than 30 Days - - Total Payables 100,313 158,731 Classification of ACT Government/Non-ACT Government Payables Payables with ACT Government Entities Other Payables (a) 14,193 8,858 Payables to Territory and Municipal Services Directorate for Land Sold (b) 11,792 762 Payables to Territory and Municipal Services Directorate for Land yet to be Developed (b) 45,780 106,214

Accrued Expenses 1,601 988 Total Payables with ACT Government Entities 73,366 116,822 Payables with Non-ACT Government Entities Other Payables (c) 18,749 27,437 Accrued Expenses (d) 8,198 14,472 Total Payables with Non-ACT Government Entities 26,947 41,909 Total Payables 100,313 158,731

(a) Other payables of $14.2 million as a capital distribution to the ACT Government which is higher than last

year ($8.8 million) following the transfer of Lyneham Block 7 and 8 Section 51 (Owen Flats) to the LDA as a capital injection.

(b) The decrease in payables to Territory and Municipal Services Directorate relates to lower land payments at 30 June 2016 for land in Moncrieff and Coombs.

(c) The decrease of other payables was due to refunds of overpaid GST to the Crace Joint Venture. (d) The decrease in accrued expenses related to fewer outstanding works completed up to 30 June 2016

compared to 30 June 2015, which had not yet been invoiced and fewer unpaid invoices payable at 30 June 2016.

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NOTE 28 EMPLOYEE BENEFITS 2016 2015 $’000 $’000 Current Employee Benefits Long Service Leave (a) 2,759 2,201 Annual Leave 1,416 1,282 Accrued Salaries and Superannuation (b) 96 409 Accrued Payroll Tax 39 - Accrued Fringe Benefits Tax 1 1 Total Current Employee Benefits 4,311 3,893 Non-Current Employee Benefits Long Service Leave 210 222 Total Non-Current Employee Benefits 210 222 Total Employee Benefits 4,521 4,115

The classification of current employee provisions above include amounts for which there is not an

unconditional right to defer settlement by 12 months. This classification does not represent the amount expected to be settled within 12 months of the reporting date. The average annual leave and long service leave paid over the past three years is used to estimate the expected amounts of these benefits to be paid during the next 12 months and is detailed below.

Estimate of when Leave is Payable Estimated Amount Payable within 12 months 2016 2015 $’000 $’000 Long Service Leave 243 167 Annual Leave 869 839 Accrued Salaries (b) 96 409 Accrued Payroll Tax 39 - Accrued Fringe Benefits Tax 1 1 Total Employee Benefits Payable within 12 months 1,248 1,416 Estimated Amount Payable after 12 months Long Service Leave (a) 2,726 2,256 Annual Leave 547 443 Total Employee Benefits Payable after 12 months 3,273 2,699 Total Employee Benefits 4,521 4,115

(a) The increase in long service leave was mainly due to new staff transferring long service leave balances to

the LDA from other Agencies and Directorates.

(b) The decrease in accrued salaries and superannuation was due to the accrual of only one day of salary and superannuation expenses at 30 June 2016 compared to 9 days at 30 June 2015.

At 30 June 2016, the LDA employed 96.8 full time equivalent (FTE) staff. There were 88 FTE staff at 30 June 2015. The increase in staff numbers is due to new positions resulting from LDA’s increased responsibilities.


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NOTE 29 OTHER PROVISIONS 2016 2015 $’000 $’000 Current Other Provisions Provision for Project Completion 72,686 53,171 Provision to Transfer Infrastructure 10,875 8,504 Total Current Other Provisions 83,561 61,675 Non-Current Other Provisions Provision for Project Completion 49,348 34,862 Provision to Transfer Infrastructure 8,209 10,562 Total Non-Current Other Provisions 57,557 45,424 Total Other Provisions 141,118 107,099

Reconciliation of the Provision for Project Completion Provision for Project Completion at the Beginning of the Reporting Period 88,033 63,938 Increase in Provision due to blocks becoming Settlement Ready (a) 216,996 156,304 Decrease in Provision due to Payments (b) (182,995) (132,209) Provision for Project Completion at the End of the Reporting Period 122,034 88,033

Reconciliation of the Provision to Transfer Infrastructure Provision to Transfer infrastructure at the Beginning of the Reporting Period 19,066 31,620 Add: New Infrastructure to be Developed by Other Developers 4,379 3,950 Less: Transfer of Infrastructure to ACT Government Entities (4,361) (16,504) Provision to Transfer Infrastructure at the End of the Reporting Period 19,084 19,066

(a) In 2015-16, the increase in the value of Provision for Project Completion related to settlement ready blocks in LDA estates. The major contributors were $27.6 million from Lawson; $116.7 million from Moncrieff; $45.3 million from Denman Prospect Stage 1 and $9.3 million from Kingston.

(b) The decrease in the Provision for Project Completion in 2015-16 was mainly due to payments made for estate development costs. As blocks of land in LDA estates become available for settlement a Provision for Project Completion is raised for work to be completed on public assets in order to receive final completion from Territory and Municipal Services Directorate.

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NOTE 30 NATIONAL TAX EQUIVALENTS PAYABLE / (RECEIVABLE)

2016 2015 $’000 $’000 Opening Balance 3,040 1,613 Prior Year Adjustment (26,065) (36,453) Opening Balance Restated (23,025) (34,840) Payment of Previous Year's National Tax (3,039) (1,613) Deferral of National Tax Payment to Future Periods 20,832 (14,205) National Tax Expense for Current Year (a) 74,253 33,478 Prior Year Adjustment to Current Year Income Tax Expense 26,065 10,388 Instalments Paid for Current Year's National Tax (14,789) (16,233) Total National Tax Equivalents Payable / (Receivable) (b) 80,297 (23,025) (a) The increase is mainly due to the higher operating surplus and timing of National Tax Equivalents

payments.

(b) Increase in National Tax Equivalents Payable primarily results from the restatement of prior year comparatives due to the revised inventory policy. Under the revised inventory policy, land is recognised when custodianship transfer is agreed between the two parties. This resulted in the LDA increasing prior year inventory balances, which in turn resulted in a reduction of tax payable for the previous periods. As the LDA then records the land settlements the income tax becomes payable and hence the tax payable in 2015-16 increases to reflect the operating surplus.


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NOTE 31 OTHER LIABILITIES

2016

Restated 2015

Current Other Liabilities $’000 $’000 Dividend Payable (a) 98,257 48,116 Revenue Received in Advance 15,978 14,636 Accrued Land Value (b) - 8,477 Total Current Other Liabilities 114,235 71,229 Total Other Liabilities 114,235 71,229 Reconciliation of Dividends Payable Dividends Payable at the Beginning of the Reporting Period 48,116 36,663 Dividends Declared during the Reporting Period 173,257 78,116 Dividends Paid during the Reporting Period for Previous Year (48,116) (36,663) Dividends Paid during the Reporting Period for Current Year (75,000) (30,000) Dividend Payable at the End of the Reporting Period 98,257 48,116 (a) The increase in dividend payable relates to the higher operating surplus.

(b) The decrease in accrued land value primarily relates to the completion and sales of land in Moncrieff, Coombs, Wright and Denman Prospect during 2015-16.

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NOTE 32 DEFERRED TAX LIABILITY Deferred tax liabilities are the amounts of national taxes payable in future periods relating to temporary differences between the calculation of accounting and taxation profit.

2016

Restated 2015

$’000 $’000 The balance comprises temporary differences attributable to: Opening Balance 47,893 38,733 Prior Year Adjustments 26,065 36,453 Restated Opening Balance 73,958 75,186 Prior Year Adjustments (26,065) (10,388) (Decrease)/Increase in Inventories (10,626) 21,876 (Decrease) in Provision for Project Completion (10,200) (7,228) (Decrease)/Increase in Employee Benefits (190) 16 Accelerated Depreciation 32 37 Other 152 (496) Current year movements 27,061 79,003 Adjustments for previous period share to Joint Venture Profit (a) 656 (5,045) Net Deferred Tax Liability (b) 27,717 73,958

(a) The adjustments relate to Joint Venture profits for taxation purposes for the previous financial year, which

are not available until after the financial statements are completed for the relevant financial year. (b) The decrease in the deferred tax liability is due to tax liabilities being realised for associated land sales

occurring in the current financial year and recognised in the Statement of Comprehensive Income as a current year tax expense.


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NOTE 33 FINANCIAL INSTRUMENTS Outlined below are the terms and conditions of financial assets and liabilities held by the LDA at 30 June 2016. Details of significant policies and methods adopted, including the criteria for recognition, the basis of measurement, and the basis on which income and expenses are recognised, with respect to each class of financial asset and financial liability, are disclosed at Note 2: ‘Significant Accounting Policies’. Interest Rate Risk Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The LDA holds most financial assets in floating interest rate arrangements. The LDA is not exposed to movements in interest payable as its financial liabilities are non-interest bearing. However, it is exposed to movements in interest receivable. Financial assets subject to floating interest rates include investments held in commercial banking accounts and the Territory Banking account together with receivables in respect to sales completed via instalments. The LDA manages the interest rate risk on investments held in a commercial banking account and Territory Banking Account by only investing in floating interest rate investments that are low risk. The receivables with instalment payments are not actively managed due to the associated interest payments being immaterial. Interest rate risk for financial liabilities is not actively managed by the LDA as all financial liabilities are non-interest bearing. A sensitivity analysis of the interest rate risk has not been performed, because the LDA's exposure to interest rate risk has been assessed as immaterial. Credit Risk Credit risk is the risk that one party to a financial instrument will fail to discharge an obligation and cause the other party to incur a financial loss. The LDA’s credit risk is limited to the amount of the financial assets it holds net of any allowance for impairment. The LDA expects to collect all financial assets that are not past due or impaired. The LDA's credit risk mainly includes the investment of excess cash and exposure to deferred payment receivables. Credit risk is managed by the LDA by only investing surplus funds in commercial bank account or with the Territory Banking Account, which has appropriate investment criteria for the external fund manager engaged to manage the Territory’s surplus funds. Credit risk for deferred payment receivables relates to sales in which proceeds are received via instalments. All contracts of this nature are effectively secured by the Deed of Agreement for each sale. Credit risk for receivables mainly relates to sales proceeds receivable from the Chief Minister, Treasury and Economic Development Directorate for land rent sales which are considered to be low risk. Therefore, the exposure to credit risk from the investment of excess cash and from receivables is low.

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NOTE 33 FINANCIAL INSTRUMENTS – CONTINUED Liquidity Risk Liquidity risk is the risk that the LDA will encounter difficulties in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset. To limit its exposure to liquidity risk, the LDA ensures that it does not have a large portion of its financial liabilities maturing in any one reporting period and that, at any particular point in time. The LDA has a sufficient amount of current financial assets to meet its current financial liabilities. LDA's exposure to liquidity risk and the management of this risk has not changed since the previous reporting period. Price Risk Price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices (other than those arising from interest rate risk or currency risk), whether these changes are caused by factors specific to the individual financial instrument or its issuer, or by factors affecting all similar financial instruments traded in the market. The LDA was not subject to price risk for its investment in the Cash Facility as the price for each unit is fixed at $1 by the Territory Banking Account. Sensitivity Analysis A sensitivity analysis of the price risk has not been performed as the LDA is not exposed to price risk.


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NOTE 33 FINANCIAL INSTRUMENTS - CONTINUED Fair Value of Financial Assets and Liabilities The carrying amounts and fair values of financial assets and liabilities at the end of the reporting period are: Note Carrying Fair Value Carrying Fair Value No. Amount Amount Amount Amount 2016 2016 2015 2015 $’000 $’000 $’000 $’000 Financial Assets Cash and Cash Equivalents 21 283,887 283,887 123,983 123,983 Receivables (a) 22 17,577 17,577 3,618 3,618 Total Financial Assets 301,464 301,464 127,601 127,601 Financial Liabilities Payables 27 54,533 54,533 52,517 52,517 Total Financial Liabilities 54,533 54,533 52,517 52,517

(a) The amounts reported are net of the Right to Receive Infrastructure and Accrued Revenue which do not

meet the definition of a Financial Instrument under AASB 139 ‘Financial Instruments: Recognition and Measurement’.

Reconciliation of Receivables as Financial Assets to Receivables: 2016 2015 Current Receivables $’000 $’000 Trade Receivables (a) 17,547 3,584 Deferred Payment Receivables 4 4 Accrued Revenue 311 510 Right to Receive Infrastructure (a) 10,875 8,504 Total Current Receivables 28,737 12,602 Non-Current Receivables Deferred Payment Receivables 26 30 Right to Receive Infrastructure (a) 8,209 10,562 Total Non-Current Receivables 8,235 10,592 Total Receivables 36,972 23,194 Less: Current Right to Receive Infrastructure (a) 10,875 8,504 Non-Current Right to Receive Infrastructure (a) 8,209 10,562 Accrued Revenue 311 510 19,395 19,576 Total Receivables as Financial Assets 17,577 3,618 Fair Value Hierarchy All financial assets and liabilities are measured, subsequent to initial recognition, at amortised cost and therefore the Fair Value Hierarchy disclosure is not required.

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NOTE 33 FINANCIAL INSTRUMENTS – CONTINUED Maturity Analysis The following table sets out LDA's maturity analysis for financial assets and liabilities as well as the exposure to interest rates, including the weighted average interest rates by maturity period as at 30 June 2016. Except for non-current payables, financial assets and liabilities which have a floating interest rate or are non-interest bearing will mature in one year or less. All amounts appearing in the following maturity analysis are shown on an undiscounted cash flow basis. Fixed Interest Maturing In: Note Weighted Floating 1 Year Over 1 to More Non- Total No. Average Interest or Less 5 Years than 5 Interest Rate Rate Years Bearing $’000 $’000 $’000 $’000 $’000 $’000 Financial Assets Cash and Cash Equivalents 21 2.60% 283,885 - - - 2 283,887 Receivables (a) 22 7.17% 30 - - - 17,547 17,577 Total Financial Assets 283,915 - - - 17,549 301,464 Financial Liabilities Payables 27 - - - - 54,533 54,533 Total Financial Liabilities - - - - 54,533 54,533 Net Financial Assets/(Liabilities) 283,915 - - - (36,984) 246,931 (a) The amounts reported are net of the Right to Receive Infrastructure and Accrued Revenue which do not

meet the definition of a Financial Instrument under Australian Accounting Standard AASB 139 ‘Financial Instruments: Recognition and Measurement’.

Reconciliation of Receivables to Receivables as Financial Assets: Current Receivables Trade Receivables (a) 17,547 3,584 Deferred Payment Receivables 4 4 Accrued Revenue 311 510 Right to Receive Infrastructure (a) 10,875 8,504 Total Current Receivables 28,737 12,602 Non-Current Receivables Deferred Payment Receivables 26 30 Right to Receive Infrastructure (a) 8,209 10,562 Total Non-Current Receivables 8,235 10,592 Total Receivables 36,972 23,194 Less: Current Right to Receive Infrastructure (a) 10,875 8,504 Non-Current Right to Receive Infrastructure (a) 8,209 10,562 Accrued Revenue 311 510 19,395 19,576 Total Receivables as Financial Assets 17,577 3,618


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NOTE 33 FINANCIAL INSTRUMENTS – CONTINUED The following table sets out LDA's maturity analysis for financial assets and liabilities as well as the exposure to interest rates, including the weighted average interest rates by maturity period as at 30 June 2015. Except for non-current payables, financial assets and liabilities which have a floating interest rate or are non-interest bearing will mature in one year or less. All amounts appearing in the following maturity analysis are shown on an undiscounted cash flow basis. Fixed Interest Maturing In: Note Weighted Floating 1 Year Over 1 to More Non- Total No. Average Interest or Less 5 Years than 5 Interest Rate Rate Years Bearing $’000 $’000 $’000 $’000 $’000 $’000 Financial Instruments Financial Assets Cash and Cash Equivalents 21 2.73% 123,981 - - - 2 123,983 Receivables (a) 22 7.17% 34 - - - 3,584 3,618 Total Financial Assets 124,015 - - - 3,586 127,601 Financial Liabilities Payables 27 - - - - 52,517 52,517 Total Financial Liabilities - - - - 52,517 52,517 Net Financial Assets/(Liabilities) 124,015 - - - (48,931) 75,084

Carrying Amount of Each Category of Financial Asset and Financial Liability 2016 2015 $’000 $’000 Financial Assets Loans and Receivables Measured at Amortised Cost (a) 17,577 3,618 Financial Liabilities Financial Liabilities Measured at Amortised Cost 54,533 52,517 (a) The amounts reported are net of the Right to Receive Infrastructure which does not meet the definition of

a Financial Instrument under the Australian Accounting Standard AASB 139: ‘Financial Instruments: Recognition and Measurement’.

The LDA does not have any financial assets in the 'Available for Sale' category or the 'Held to Maturity' category and as such these categories are not included above. Also, the LDA does not have any financial liabilities in the 'Financial Liabilities at Fair Value through Profit and Loss' category and as such this category is not included above.

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NOTE 34 COMMITMENTS 2016 2015 $’000 $’000 Operating Leases Non-Cancellable operating lease commitments are payable as follows: Within One Year 1,205 1,175 Later than One Year but not later than Five Years 1,592 2,778 Total Operating Lease Commitments 2,797 3,953 The operating leases relate to: the lease of the Dickson Office from CMTEDD; motor vehicles from SG Fleet; and IT equipment and mobile phones provided by Shared Services ICT.


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NOTE 35 CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Contingent Liabilities

Legal Claims

The ACT Government Solicitor’s Office is acting for the Land Development Agency in matters involving legal claims. At 30 June 2016, the current estimate of potential claims is $791,328 (30 June 2015: $410,000).

GST Liabilities / Refunds

The Australian Taxation Office completed a review in 2014-15 of the LDA’s refund claims of overpaid GST on land sales that were lodged in prior years and recorded as a receivable.

The recoverability of refunds claimed on overpaid GST on unimproved land, which does not meet the agreed Australian Taxation Office position, is reliant on the occurrence of the Alternate Dispute Resolution process, which is an event not wholly within LDA’s control, refer Note 4(viii). As a consequence, the LDA has estimated it has a contingent liability for amounts that may be required to be repaid to the Australian Taxation Office of $2.4 million (2014-15: $2.4 million).

Contingent Assets

Legal Claims

The LDA holds insurance policies with the ACT Insurance Authority that covers the above legal claims. The estimated receipts if the above claims were successful are $751,328 (2014-15: $385,000).

The Australian Taxation Office invited the LDA to resubmit GST claims previously settled for the Crace Joint Venture. The majority of these claims were refunded during the year.

As at 30 June 2016 the LDA’s share of the potential GST claim for land sales for the Crace Joint Venture is $0.4 million (2014-15: in the vicinity of $8 million to $9 million).

Settlement amounts

The LDA received independent tax advice that an amount paid to the Australian Taxation Office for a previous Settlement Deed in relation to GST claims was likely to be refunded by the Australian Taxation Office. This amount was refunded during the year. At 30 June 2016 a contingent asset for this refund was $nil (30 June 2015: $0.9 million).

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NOTE 36 INTEREST IN JOINT VENTURES The LDA entered into in a Joint Arrangement on 19 May 2016 on behalf of the Territory. The Joint Arrangement will commence once the disallowance period for Draft Amendment 86 of the National Capital plan has ended, without it being disallowed. The Joint Arrangement participants are Riverview Pty Ltd with a 40% ownership interest and the LDA with a 60% ownership interest. The joint arrangement will develop land to the west of Belconnen. In addition to the above-mentioned arrangement the LDA was involved in two unincorporated joint ventures during the reporting period for the residential development of the suburbs of Forde and Crace. A summary of the LDA's total interest in its Joint Ventures is detailed below. The joint ventures are accounted for by LDA using the equity method. 2016 2015 $’000 $’000 Share of the Joint Venture Profit are as follows: Revenue 6,594 1,414 Expenses 146 (387) Operating Profit before Income Tax per Joint Venture Statements 6,448 1,801 Write-back Impairment Expenses - - Write-back Bad Debt Recovery - (1,272) Previous Year’s Adjustment (90) (1,222) Operating Profit / (Loss) After Income Tax (a) 6,358 (693) Share of Joint Venture Assets and Liabilities are as follows: Assets 504 2,691 Liabilities 105 450 Net Assets 399 2,241 (a) The increase in net income was due to the receipt of GST refunds from the Australian Taxation Office for the Crace Joint Venture.


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NOTE 36 INTEREST IN JOINT VENTURES - CONTINUED 2016 2015 $’000 $’000 The Carrying Amount of the Investments in the Joint Ventures Balance of Investments in Joint Ventures at the Beginning of the Reporting Period 2,241 1,422 Previous Year's Adjustment (90) (1,222) Previous Year's Legal Fee Adjustment - (464) Share of Operating Profit from Joint Ventures 6,448 531 Distribution from Joint Ventures (8,200) (1,000) Elimination of Net Payable at Year-End - 2,974 Balance of Investment in Joint Ventures at the End of the Reporting Period 399 2,241 Classification in the Balance Sheet Future Joint Venture Distributions Current 399 2,241 399 2,241

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NOTE 36 INTEREST IN JOINT VENTURES - CONTINUED Joint Venture Name Estate Name Forde Joint Venture Forde The LDA was involved in an unincorporated joint venture during the reporting period, for the residential development of Forde. The two joint venture partners in the Forde Joint Venture are the LDA and Forde Developments Pty Ltd, each party having a 50% ownership interest and 50% voting power in the Joint Venture. The reporting date of the LDA and Forde Joint Venture is 30 June. 2016 2015 $’000 $’000 Share of Joint Venture Profit is as follows: Revenue 24 1,376 Expenses 2 (54) Operating Profit before Income Tax per Forde Joint Venture Statement 22 1,430 Write-back Bad Debt Recovery - (1,272) Previous Years Adjustment - (1,222) Total Net Income /(Loss) 22 (1,064) Share of Joint Venture Assets and Liabilities is as follows: Assets 207 2,175 Liabilities 32 232 Net Assets as per Forde Joint Venture Financial Statements 175 1,943 The Carrying Amount of the Investments in the Joint Venture Balance of Investments in Joint Venture at the Beginning of the Reporting Period 1,943 494 Share of Operating Profit from Joint Venture 22 160 Previous Year’s Adjustment (90) (1,222) Previous Years Legal Fee Adjustment (1,700) (463) Elimination of Net Payable at Year-End - 2,974 Balance of Investment in Joint Venture at the End of the Reporting Period 175 1,943


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NOTE 36 INTEREST IN JOINT VENTURES - CONTINUED Joint Venture Name Estate Name Forde Joint Venture Forde Classification in the Balance Sheet 2016 2015 Future Joint Venture Distributions $’000 $’000 Current 175 1,943 175 1,943 Contingent Liabilities The Joint Venture has no contingent liabilities. Contingent Assets The Joint Venture has no contingent assets.

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NOTE 36 INTEREST IN JOINT VENTURES - CONTINUED Joint Venture Name Estate Name Crace Joint Venture Crace The LDA was involved in an unincorporated joint venture during the reporting period, for the residential development of Crace. The two venture partners in the Crace Joint Venture are the LDA and Crace Developments Pty Ltd each having a 50% ownership interest and 50% voting power. The reporting date of the LDA and Crace Joint Venture is 30 June. 2016 2015 $’000 $’000 Share of Joint Venture Profit is as follows: Revenue 6,570 38 Expenses 144 (333) Operating Profit before Income Tax Per Crace Joint Venture Statement 6,426 371 Total Net Income 6,426 371 Share of Joint Venture Assets and Liabilities is as follows: Assets 297 517 Liabilities 72 218 Net Assets as per Crace Joint Venture Financial Statements 225 299 The Carrying Amount of the Investments in the Joint Venture Balance of Investments in Joint Venture at the Beginning of the Reporting Period 299 928 Share of Operating Profit from Joint Venture 6,426 371 Distribution from Joint Venture (6,500) (1,000) Balance of Investment in Joint Venture at the End of the Reporting Period 225 299


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NOTE 36 INTEREST IN JOINT VENTURES - CONTINUED Joint Venture Name Estate Name Crace Joint Venture Crace Classification in the Balance Sheet 2016 2015 Future Joint Venture Distributions $’000 $’000 Current 225 299 225 299 Contingent Liabilities The Joint Venture has no contingent liabilities. Contingent Assets The Joint Venture has no contingent assets.

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NOTE 37 CASH FLOW RECONCILIATION 2016 2015 $’000 $’000 (a) Reconciliation of Cash and Cash Equivalents at the End of the Reporting

Period

in the Cash Flow Statement to the Equivalent Items in the Balance Sheet Total Cash and Cash Equivalents Recorded in the Balance Sheet 283,887 123,983 Cash and Cash Equivalents at the End of the Reporting Period as Recorded in the Cash Flow Statement 283,887 123,983 (b) Reconciliation of the Operating Surplus to the Net Cash Inflows From Operating Activities Operating Surplus 173,257 78,116 Add/(Less) Non-Cash Items Depreciation 351 141 Resources Received Free of Charge (37) (20) Land Transferred in Free of Charge (11,271) (3,445) Land and Building Transferred out Free of Charge - 3,574 Inventory Loss (Related to Land Transferred in Free of Charge) 16,605 17,803 Other Revenue - (103) Other Expenses 37 123 (Less) Items Classified as Investing or Financing Profit on Sale of Asset - (10) Land Received as Capital Injection (5,335) - Share of Joint Venture (Profit)/Loss (6,358) 1,156 Cash Before Changes in Operating Assets and Liabilities 167,249 97,335 Changes in Operating Assets and Liabilities (Increase)/Decrease in Receivables (13,778) 64,546 Decrease/(Increase) in Inventories 124,589 (81,080) (Increase) in Land, Property, Plant and Equipment (6,800) - (Decrease)/Increase in Deferred Tax Liability (46,241) 9,160 Increase/(Decrease) in Employee Entitlements 408 (1,348) Increase/(Decrease) in Payables 2,016 (11,482) Decrease in Provisions 34,019 11,541 Decrease in National Tax Equivalents Payable 103,322 1,427 (Increase)/Decrease in Other Liabilities (67,570) 7,401 Net Changes in Operating Assets and Liabilities 129,965 165 Net Cash Inflows from Operating Activities 297,214 97,500


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NOTE 38 EVENTS OCCURRING AFTER BALANCE DATE There were no events occurring after balance date that had a material effect on the financial statements of the LDA. NOTE 39 RELATED PARTY DISCLOSURES The directors of the LDA during the year were:

Mr Ross Barrett: Chair Mr Robert Tonkin: Deputy Chair Mr David Dawes: Chief Executive Officer and Member Ms Sandra Lambert: Member, on approved leave of absence for the period December 2013 to August 2015 Ms Chris Purdon: Member Mr Jim Shonk: Member 2016 2015 $’000 $’000

Total remuneration paid or due and payable to the directors of the LDA 295 246 Number Number $20,000 - $30,000 - 1 $30,000 - $40,000 - 1 $40,000 - $50,000 1 1 $50,000 - $60,000 2 - $60,000 - $70,000 1 1 $70,000 - $80,000 - 1 $80,000 - $90,000 1 - 5 5

The Chief Executive Officer did not receive any remuneration as a member of the Board.

Transactions with related parties during the reporting period: 2016 2015 $’000 $’000 Payments to the Chief Minister, Treasury and Economic Development Directorate for services:

Executive Management 389 521

Workforce and Human Resources Services 275 183

Governance 255 219

Ministerial and Cabinet (coordination role) 160 151

Policy 123 109

Communication and Media, and Community Consultation 1,108 927

2,310 2,110

Payments received from the Chief Minister, Treasury and Economic Development Directorate for services:

Executive Management (funded by the LDA) 278 213 Financial Management 261 628 539 841 Net Payment to the Chief Minister, Treasury and Economic Development Directorate 1,771 1,269

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NOTE 40 BUDGETARY REPORTING The following are brief explanations of major line item variances between budget estimates and actual outcomes. Variances are considered to be major variances if both of the following criteria are met: (a) The line item is a significant line item: the line item actual amount accounts for more than 10% of the

relevant associated category (Income, Expenses and Equity totals) or sub-element (e.g. Current Liabilities and Receipts from Operating Activities totals) of the financial statements; and

(b) The variances (original budget to actual) are greater than plus (+) or minus (-) 10% of the budget for the financial statement line item.

Original Actual Budget Variance Statement of Comprehensive Income Line Items 2015-16 2015-161 Variance $’000 $’000 $’000 % Land Sales 593,666 557,802 35,864 6.43 The higher land sales is mainly due to higher than budgeted prices realised in Belconnen Section 200, additional revenue received from a variation to the deed agreement for City Section 84 and the settlement of the first part of Denman Prospect stage 1. Partially offset by the deferral of the sale of Asset Recycling Initiative (ARI) sites to future years. See also Note 5: ‘Land Sales’.

Other Expenses 26,957 4,387 22,570 514.47 The higher other expenses is due to transfer of assets from other government agencies free of charge and subsequent inventory write-offs and the transfer of the Black Mountain Peninsula Slipway to ACT Property Group free of charge. See also Note 17: ‘Other Expenses’.

Share of Operating Profit/(Loss) from Joint Ventures 6,358 - 6,358 100.00

The increase was due to unbudgeted receipt of GST refunds from the Australian Taxation Office for the Crace Joint Venture which increased joint venture land sales revenue and associated profit.


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NOTE 40 BUDGETARY REPORTING - CONTINUED Actual Original Budget Balance Sheet Line Items 2015-16 2015-161 Variance Variance $’000 $’000 $’000 % Cash and Cash Equivalents 283,887 100,678 183,209 181.98 The higher cash and cash equivalents is largely due to higher than budgeted operating result and higher amount of land sales at year end. See also Note 21: ‘Cash and Cash Equivalents’.

Current Inventories 133,803 153,625 (19,822) (12.90) The lower current inventories is mainly due to lower than budgeted development activity. See also Note 23: ‘Inventories’.

Non-Current Inventories 109,468 137,516 (28,048) (20.40) The lower non-current inventories is mainly due to lower than budgeted development activity. See also Note 23: ‘Inventories’.

Property, Plant and Equipment 25,420 - 25,420 100.00 The higher balance is due to unbudgeted purchase of rural land in Belconnen, Molonglo and Tuggeranong District as fixed assets.

Current Payables 96,619 43,796 52,823 120.61 The higher current payables are mainly due to the unexpected capital distribution payable to the ACT Government and higher payables to Territory and Municipal Services Directorate for land yet to be developed and sold immediately prior to 30 June 2016. See also Note 27: ‘Payables’.

Current Other Provision 83,561 73,256 10,305 14.07 The higher current other provision is mainly due to the higher value of Provision for Project Completion due the increase in operational acceptance received for blocks in LDA estates thereby recognising public domain works yet to be completed. Partially offset by lower transfer of completed infrastructure assets to the Territory and Municipal Services Directorate and Icon Water. See also Note 29: ‘Other Provisions’.

National Tax Equivalents Payable 80,297 22,209 58,088 261.55 The higher National Tax Equivalents payable compared to budget is due to higher land sales in the fourth quarter of the financial year. Pay as you go tax instalments are paid in the month following a quarter end. Land sales were higher in the final quarter of the year compared to budget.

Non-Current Other Provisions 57,557 34,104 23,453 68.77 The higher non-current other provisions is due to higher non-current Provision for Project Completion resulting from the increase in operational acceptance received for blocks in LDA estates thereby recognising public domain works yet to be completed.

Statement of Changes in Equity These line items are covered in other financial statements.

148

Draft



73

NOTE 40 BUDGETARY REPORTING - CONTINUED Actual Original Cash Flow Statement Line Items 2015-16 Budget1 Variance Variance $’000 2015-16 $’000 % $’000 Land Sales 585,033 540,250 44,783 8.29 The higher cash received from land sales is due to higher than budgeted land sales, explained above. Development Costs 130,503 225,520 (95,017) (42.13) The primary driver of lower development costs is attributable to Denman Prospect being sold as a single land parcel instead of being developed as individual lots. Other cost savings compared to budget were achieved in LDA estates including, Greenway, Kingston Foreshore, Lawson and Throsby.

Land Acquisitions 88,704 79,843 8,861 11.10 The higher cash payment on land acquisition is due to the higher land costs as the result of higher land sales.

Cash Distributions from Joint Ventures 8,200 - 8,200 100.00 The higher cash distributions from Joint Ventures is due to an unexpected cash distribution from the Crace Joint Venture.

Purchase of Property, Plant and Equipment 22,394 - 22,394 100.00 The cash payments on purchase of property, plant and equipment is due to the purchase of land in Belconnen, Molonglo and Tuggeranong District not anticipated in the budget.

Dividend Paid 123,116 110,374 12,742 11.54 The higher dividend payment is due to higher than budgeted final 2014-15 dividend payment as a result of the 2014-15 operating surplus being higher than expected.

1 Original Budget refers to the amounts presented to the Legislative Assembly in the original budgeted financial statements in respect of the reporting period (2015-16 Budget Statements). Note: # in the Line Item Variance % column represents a variance that is greater than 999 per cent or less than -999 per cent.


CRACE JOINT VENTURE

ABN: 62 124 931 161

FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016

152

CONTENTS

Independent Auditor's report 149

Statement of Comprehensive Income 153

Statement of Financial Position 154

Statement of Cash Flows 155

Statement of Changes in Equity 156

Notes to the Financial Statements 157

Declaration by the Joint Venture Partners 164

166

C.3 CAPITAL WORKS

The LDA does not receive appropriation for Capital Works. The following table relates to Development Works undertaken by the LDA.

CIVIL INFRASTRUCTURE CONSTRUCTION

NEW WORKS

Projects Original Project Value

($)

Year of Approval

Original Estimated

Completion Date

Revised Estimated

Completion Date

Revised Project Value ($)

City to the Lake Point Park Design and Construction1

361,955 2015 November 2017 July 2017 6,357,643

Denman Prospect 1A2 Substation Relocation

75,244 2016 July 2016 July 2016 75,244

Development Management Services 242,000 2016 December 2016 December 2016 242,000

Dickson Block 2 Section 33 Motor Registry Vehicle Inspection Station Needs Analysis/Specifications

113,630 2015 August 2016 October 2016 113,630

Furzer Street Precinct Melrose Drive Intersections Works Superintendency

476,907 2014 May 2016 August 2016 542,641

Greenway East Planning and Engineering Consultancy

518,243 2016 July 2016 November 2016 518,243

Gungahlin Town Centre Signage Installation

147,647 2016 February 2017 February 2017 147,647

Gungahlin Project Management GTS 2016 – Jan 2016 to Jan 2017

162,250 2015 January 2017 January 2017 162,250

Hume Block 81 Section 22 Civil Construction

276,492 2016 November 2016 November 2016 258,600

Lyneham Block 8 Section 51 Owen Flats Demolition

908,060 2016 September 2016 October 2016 908,060

Lyneham Block 8 Section 51 Owen Flats Design, Tender and Superintendency

98,615 2016 April 2016 October 2016 98,615

Lyneham Block 12 Section 50 Superintendency for Macarthur House Demolition

149,661 2016 April 2017 April 2017 149,661

Mitchell Block 29 Section 4 Electrical Conduit Installation

35,370 2016 January 2017 January 2017 35,370

North Wright and North Coombs Planning and Engineering Consultancy

1,267,317 2016 June 2017 June 2017 1,267,317

Red Hill Precinct – ARI Planning and Engineering Consultancy (Estate Development Plan)

582,740 2016 May 2017 May 2017 592,000

Red Hill Housing Precinct Site Investigation Report

30,816 2015 August 2016 October 2016 31,031

1. Variation to original contract value due to procurement approach of a Managing Contractor arrangement. Sequential phases of design and construction dealt with through contract variations approved by the Government Procurement Board. Four variations in the 2015-16 financial year have been considered and approved by the Government Procurement Board.



($)

Year of Approval

Original Estimated

Completion Date

Revised Estimated

Completion Date


Taylor 1 Stage 1 Civil Construction 28,699,141 2016 December 2017 December 2017 28,699,141

Taylor 1 Principal Approved Delegate 1,394,525 2016 May 2018 May 2018 1,394,525

Taylor 1 EDP Engineering Services 1,741,302 2015 September 2017 September 2017 2,121,366

Taylor 1 EDP Planning Consultancy 358,455 2015 September 2017 September 2017 476,102

Throsby Stage 1 Civil Construction 19,249,543 2015 February 2017 February 2017 19,249,543

Throsby Stage 2 Civil Construction 24,192,130 2015 April 2017 April 2017 24,192,130

Throsby Stage 3 Civil Construction 15,311,994 2015 February 2018 February 2018 15,311,994

Throsby Construction Principal Approved Delegate

1,785,945 2015 August 2018 August 2018 1,785,945

Throsby Project Manager Engineering Consultancy Total Construction Professional

215,600 2015 October 2016 October 2016 215,600

Throsby Engineering Project Management PAP

190,080 2015 July 2016 August 2017 190,080

WORKS IN PROGRESS


($)

Year of Approval

Original Estimated

Completion Date

Revised Estimated

Completion Date


Belconnen Block 2 Section 23 Police and Remand Centre Demolition

834,533 2014 October 2016 October 2016 834,533

Braddon Block 1 Section 52 Currong Flats Demolition

6,247,772 2014 November 2016 December 2016 13,588,138

Coombs and Wright Civil Project Management

25,000 2014 September 2016 September 2016 30,000

Coombs Broadband 4,304,355 2011 March 2018 March 2018 4,304,355

Coombs Site Management (Variation of Agreement for Wright Site Management)

3,202,310 2012 December 2016 December 2016 4,221,747

Denman Prospect Stage 1A Planning and Engineering Consultancy

1,067,935 2014 January 2017 January 2017 1,207,293

Denman Prospect Stage 1B Planning and Engineering Consultancy


Denman Prospect Stage 1A Superintendency

1,489,000 2014 April 2016 April 2017 1,515,378

Furzer Street Civil Construction 5,557,882 2014 December 2015 August 2016 6,392,016

Greenway West Engineering and Landscape Construction Services

870,471 2013 December 2015 August 2016 871,901

Gungahlin Town Centre East Estate Planning and Engineering

479,736 2015 April 2016 March 2017 507,120

Higgins Block 4 Section 11 Primary School Demolition

1,047,091 2014 August 2016 August 2016 1,047,091

Hume West Stage A (including variation for Stage C) Site Management / Superintendency

290,290 2011 May 2016 May 2016 540,710

168


($)

Year of Approval

Original Estimated

Completion Date

Revised Estimated

Completion Date


Lawson South 1C 21,269,929 2013 November 2014 December 2016 26,757,716

Lawson South Stage 1 Residential Estate Construction Services Engineering Consultancy

682,429 2012 December 2015 June 2017 1,195,573

Lawson South Planning and Engineering Consultancy

1,003,727 2011 December 2012 June 2016 1,956,723

Lawson Stage 2 11kV Relocation Design

1,079,480 2015 June 2016 June 2016 1,079,480

Kingston Foreshore Landscape Rectification

1,782,000 2014 October 2013 November 2016 3,644,744

Kingston Foreshore Sewer Odour Control Unit Engineering Consultancy

205,727 2014 October 2015 December 2017 319,989

Moncrieff East Planning and Engineering

2,007,085 2011 August 2014 December 2016 3,190,859

Moncrieff West Planning and Engineering


Moncrieff West Construction Services Engineering Consultancy

1,591,925 2014 May 2017 May 2017 1,591,925

Moncrieff East Construction Services Engineering Consultancy

1,997,341 2014 June 2016 May 2017 2,315,929

Parkes Section 3 Planning and Engineering Consultancy

899,960 2013 April 2015 July 2016 1,155,013

Throsby Planning and Engineering Design Consultancy

2,084,220 2013 March 2016 December 2016 2,655,757

Throsby Stage 1 Electrical and Streetlight Reticulation

537,856 2014 March 2017 March 2017 537,856

Throsby Stage 2 Electrical and Street Light Reticulation

762,421 2014 May 2018 May 2018 762,421

Throsby Stage 3 Electrical and Street Light Reticulation

406,991 2014 April 2018 April 2018 406,991

Throsby Street Light Luminaires 192,665 2015 June 2016 June 2016 192,665

Wright Broadband 2,500,000 2011 March 2018 March 2018 2,500,000

COMPLETED PROJECTS

Projects Original Estimates ($)

Final Costs ($)

Estimated Completion

Practical Completion

Financially Complete

Barton Grevillea Park Hydraulic Services

73,700 128,689 June 2016 June 2016 Yes

Campbell Section 5 Planning and Engineering Consultancy

952,136 2,885,193 June 2015 August 2016 No

Coombs Stage 1 Civil Construction 20,664,114 28,712,193 August 2014 August 2015 Yes

Denman Prospect Stage 1A1 Civil Construction

18,825,928 21,229,531 March 2016 February 2016 No

Denman Prospect Stage 1A2 Civil Construction

9,171,437 9,650,000 March 2016 May 2016 Yes



Final Costs ($)




Denman Prospect Street Light Reticulation Services Stage 1A

981,561 1,029,834 April 2016 April 2016 Yes

Denman Prospect Electrical Reticulation Services Stage 1A1 and 1A2

345,730 345,730 April 2016 April 2016 Yes

Development Feasibility Services and Advice

66,000 74,634 June 2016 June 2016 Yes

Dickson Block 44 Section 6 Demolition of Flats

366,146 366,146 May 2016 March 2016 No

East Lake Stage 2 ACTEW Prepositioning Costs

398,710 398,710 February 2016 February 2016 Yes

Flemington Road Corridor 2B Design and Superintendency

411,037 490,030 August 2015 August 2016 Yes

Garran Block 3 Section 24 Minor Works

399,371 479,448 May 2016 May 2016 Yes

Greenway East Telstra Realignments 172,210 220,024 June 2016 February 2016 No

Gungahlin Design and Superintendency Metros Verge Remediation

60,000 62,970 December 2015 December 2015 Yes

Higgins Block 3 Section 11 Preschool Minor Works

206,158 166,925 January 2016 January 2016 Yes

Hume Block 81 Section 22 Civil Engineering Consultancy and Superintendency

24,970 35,383 June 2016 June 2016 Yes

Kingston Foreshore Boat Harbour and Black Mountain Slipway

4,000,000 5,755,998 December 2016 May 2016 Yes

Kingston Foreshore Harbour Promenade Design and Superintendency

629,200 963,910 July 2015 May 2016 No

Lawson South 1A and 1B Civil Construction

8,847,907 11,659,421 March 2015 December 2015 No

Lawson Stage 1B SL Design and Construction for Intersection


Molonglo Commercial Concept Plan Review

18,700 28,815 April 2015 January 2016 Yes

Moncrieff West Package 1 Civil Construction

19,064,134 20,808,482 November 2015 January 2016 No

Moncrieff West Package 2 Civil Construction

17,103,897 17,103,897 December 2015 October 2015 No

Moncrieff East Package 1 Civil Construction

21,448,406 21,899,338 February 2016 November 2015 No


14,151,933 14,151,933 February 2016 February 2016 No


11,366,737 11,366,737 June 2016 February 2016 No

Moncrieff West Stage 1 Electrical and Streetlight Reticulation






170


Final Costs ($)




Moncrieff East Stage 1A Electrical and Streetlight Reticulation


Moncrieff East Stage 1B Electrical and Streetlight Reticulation


Moncrieff East Stage 2 Electrical and Streetlight Reticulation


Moncrieff East Stages 3 and 4 Electrical and Streetlight Reticulation

525,713 525,713 May 2016 May 2016 Yes

Moncrieff East Stage 5 Electrical and Streetlight Reticulation

357,719 357,719 June 2016 June 2016 Yes

Phillip Temporary Car Park Civil Construction

240,157 240,157 March 2015 December 2015 Yes

Phillip Temporary Car Parking Detailed Design


Yarralumla Blocks 15 and 16 Section 17 Minor Works Brief /Design and Superintendency

49,500 79,508 June 2013 December 2015 Yes

Yarralumla Blocks 15 and 16 Section 17 Minor Works

499,775 499,775 April 16 April 16 No

LANDSCAPE CONSTRUCTIONNEW WORKS

Projects Original Project Value ($)

Year of Approval

Original Estimated

Completion Date

Revised Estimated

Completion Date


Coombs 3A Open Space Landscape Design and Path Network

74,800 2015 November 2016 November 2016 74,800

Kingston Foreshore Verge Landscaping

508,862 2015 August 2017 August 2017 508,862

WORKS IN PROGRESS


Year of Approval

Original Estimated

Completion Date

Revised Estimated

Completion Date


Coombs Landscape Superintendency Consultancy


Coombs Open Space Landscape Construction


Franklin CRIP Landscape Construction

3,419,833 2014 May 2015 October 2016 3,419,833

Franklin CRIP Landscape Design / Superintendency

107,030 2012 October 2016 October 2016 299,874

Greenway West Open Space Landscaping

3,501,147 2013 May 2016 September 2016 3,562,832



Year of Approval

Original Estimated

Completion Date

Revised Estimated

Completion Date


Lawson South Open Space Stages 1D and 1B1

2,970,121 2015 May 2017 May 2017 3,056,338

Lawson Landscape Design 535,845 2011 January 2017 September 2017 547,995

Wright Stage 2 Landscape Construction

3,628,057 2014 March 2015 August 2016 3,758,379

Wright and Coombs Landscape Project Management


Wright (including Coombs Stage 1) Landscape Design Consultancy

343,926 2010 August 2012 July 2016 554,607

Wright Stage 1B and 2 Landscape Superintendency

435,230 2014 February 2016 August 2016 600,000

COMPLETED PROJECTS


Final Costs ($)




Bonner 1B Landscape Design, Consultancy and Superintendency

125,400 375,054 August 2015 August 2015 Yes

Bonner 3 Landscape Consultancy (Detailed Design, Documentation and Superintendency)


Bonner 3 “Ridgeline” Open Space 2,312,481 2,734,857 June 2015 September 2015 Yes

Bonner 4 Open Space Landscape Construction

1,307,360 2,062,288 May 2015 October 2015 Yes

Bonner 4 Open Space Superintendency and Site Management

684,662 733,820 January 2015 February 2016 Yes

Campbell Section 5 Landscape Works 3,815,566 4,039,074 December 2015 December 2015 No

Franklin Landscape Construction Block 3 Section 95 Pedestrian Laneway

216,913 233,285 November 2015 November 2015 No

Wright Landscape (Public Open Space) Superintendency Consultancy

191,664 213,823 May 2016 May 2016 Yes

Wright Stage 1B Sections 20, 23, 26 Open Space Landscape Construction

5,171,584 6,292,717 March 2015 May 2016 No


Anita HargreavesChief Financial OfficerLand Development Agency+ 61 2 6207 [email protected]

172

C.4 ASSET MANAGEMENT

ASSETS MANAGEDThe LDA managed assets with a total value of $25.517 million as at 30 June 2016. Assets managed are shown in the table below.

Asset Type Comprising Value $’000

Land Land in Tuggeranong, Belconnen and Molonglo district

24,033

Buildings Westside containers, Westside Acton Park

895

Leasehold

Improvements

Fit-out on Ground Floor, Level 6 & Level 7 Transact House

31

Plant and

Equipment

Furniture, Level 7 TransACT House and assets from Boat Hire and Bike Hire Businesses, West Basin

19

Community and

Heritage Assets

John Fowler & Co Locomotive 442

Intangible

Assets

Customer Relationship Management Software

97

During 2015-16 the following assets were added to LDA's asset register:

> Land in Tuggeranong, Belconnen and Molonglo district;

> Westside containers, Westside Acton Park; and

> Assets from Boat Hire and Bike Hire businesses, West Basin.

As at 30 June 2016 the LDA had nil properties which were not being utilised by the Agency or had been identified as potentially surplus.

ASSETS MAINTENANCE AND UPGRADEDuring 2015-16, the LDA managed and maintained the land purchased in Tuggeranong, Belconnen and Molonglo district. Asset upgrades (not including works funded and reported through the Capital Works program) completed during 2015-16 were:

> Community and Heritage Assets – John Fowler & Co Locomotive.

The LDA conducted nil audits (condition, hazardous materials, building etc.) of its assets in 2015-16.

OFFICE ACCOMMODATIONAs at 30 June 2016 the LDA accommodated 100 employees and contractors occupying 1,406m2 in TransACT House, 470 Northbourne Avenue Dickson. The average area occupied by each person is 14m2. The staffing number reflected above will not be the same as the staffing numbers (either FTE or headcount) listed in Section B.8 Human Resource Management. The number above reflects the workpoint utilisation at the LDA’s office and includes seconded officers, contractors, consultants or volunteers, as well as employees, but does not include staff located at non-office based locations and embedded staff within other directorates.


Anita HargreavesChief Financial Officer Land Development Agency + 61 2 6207 1295 [email protected]

C.5 GOVERNMENT CONTRACTING

The LDA undertakes procurement activities for a range of goods, services and works. Details of those contracts on the ACT Government Contracts Register valued at $25,000 or more with an execution date

between 1 July 2015 and 30 June 2016, listed against the LDA are provided on the following pages.


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en

wa

y E

ast

- A

dd

itio

na

l

Sit

e In

vest

iga

tio

n -

So

il

Co

nta

min

ati

on

Ass

ess

me

nt

Quo

tatio

nsCo

nsul

tanc

yN

oDo

ugla

s Par

tner

s Pty

Ltd

31,

870

21/0

1/20

1630

/08/

2016

No

De

sig

n, T

en

de

r a

nd

Su

pe

rin

ten

de

ncy

Pa

rt o

f

Ow

en

Fla

ts

Quo

tatio

nsCo

nsul

tanc

yN

oGH

D Pt

y Lt

d 9

8,61

5 3/

02/2

016

31/1

0/20

16N

o

Cit

y to

th

e L

ak

e -

Pro

ject

Co

ntr

ol B

oa

rd s

erv

ice

s

Sing

le S

elec

tCo

nsul

tanc

yYe

sM

21 A

dvis

ory

Pty

Ltd

110

,000

8/

02/2

016

31/1

2/20

17Ye

s

Act

ew

AG

L P

reli

min

ari

es

- R

elo

cati

on

Wo

rks

for

Ea

stla

ke

Sta

ge

2

Sing

le S

elec

tSe

rvic

es (n

on-

cons

ulta

ncy)

Yes

Icon

Dist

ribut

ion

Inve

stm

ents

Li

mite

d An

d Je

men

a (A

CT) P

ty

Ltd

T/a

Acte

wag

l Dist

ribut

ion

559

,166

9/

02/2

016

9/02

/201

9N

o

En

viro

nm

en

tal W

ork

s -

De

mo

liti

on

- H

igg

ins

Quo

tatio

nsW

orks

No

Coffe

y En

viro

nmen

ts A

ustra

lia

Pty

Ltd

37,

500

11/0

2/20

1612

/02/

2017

No

Gre

en

wa

y E

ast

- P

lan

nin

g

An

d E

ng

ine

eri

ng

Co

nsu

lta

ncy

- C

ali

bre

Co

nsu

ltin

g

Sing

le S

elec

tCo

nsul

tanc

yYe

sCa

libre

Con

sulti

ng (A

CT)

Pty

Ltd

518

,243

23/0

2/20

1623

/02/

2017

Yes


Cont

ract

Titl

e Pr

ocur

emen

t M

etho

dolo

gy

Proc

urem

ent

Type

Exem

ptio

n fr

om Q

uota

tion

and

Tend

er

Thre

shol

d Re

quire

men

ts

Cont

ract

or N

ame

Co

ntra

ct

Amou

nt

($)

Exec

utio

n Da

teEx

piry

Da

te

Smal

l to

Med

ium

En

terp

rise

Pro

visi

on

of

Ve

nu

e

Ma

na

ge

me

nt

Se

rvic

es

for

We

stsi

de

Act

on

Pa

rk

Quo

tatio

nsSe

rvic

es (n

on-

cons

ulta

ncy)

No

Dam

sel a

nd S

prou

t Pty

Ltd

91,

546

24/0

3/20

1611

/09/

2016

No

Ma

cart

hu

r H

ou

se D

em

oli

tio

n

Su

pe

rin

ten

de

ncy

Quo

tatio

nsCo

nsul

tanc

yN

oIn

desc

o Pt

y Li

mite

d 1

49,6

617/

04/2

016

7/04

/201

7N

o

Kin

gst

on

Fo

resh

ore

Pu

bli

c L

an

dsc

ap

ing

Sing

le S

elec

tW

orks

Yes

Chas

e Bu

ildin

g Gr

oup

(Can

berra

) Pty

Lim

ited

508

,862

10/0

5/20

1631

/08/

2017

Yes

We

st B

asi

n S

ew

er

Ma

ste

r

Pla

n

Quo

tatio

nsCo

nsul

tanc

yN

oIn

desc

o Pt

y Li

mite

d 1

51,0

6023

/05/

2016

28/0

2/20

17N

o

Lyn

eh

am

De

mo

liti

on

Ow

en

Fla

ts

Publ

ic T

ende

rW

orks

No

Brem

a Fi

nanc

e Pt

y Lt

d 9

08,0

60

8/06

/201

631

/01/

2017

Yes

Pa

rke

s W

ay

Tra

ffic

mo

de

llin

g

an

d d

eis

gn

de

velo

pm

en

t

Publ

ic T

ende

rCo

nsul

tanc

yN

oAr

up P

ty L

td 1

,052

,578

30

/03/

2016

1/03

/201

7Ye

s

Bri

ckw

ork

s si

te

inve

stig

ati

on

s

Quo

tatio

nsCo

nsul

tanc

yN

oSM

EC A

ustra

lia 1

64,9

56

23/0

5/20

16N

o

Wo

rks:

Kin

gst

on

Th

e P

ier

Off

site

Sing

le S

elec

tW

orks

Yes

Bloc

(ACT

) Pty

Ltd

2,0

57,1

57

12/0

4/20

1612

/12/

2016

No

Na

rra

bu

nd

ah

Su

pe

rin

ten

de

ncy

de

mo

liti

on

Quo

tatio

nsCo

nsul

tanc

yN

oCa

rdno

NSW

/ACT

Pty

Ltd

81,

329

2/05

/201

62/

05/2

017

No

En

gin

ee

rin

g/P

roje

ct

Ma

na

ge

me

nt

Co

nsu

lta

ncy

Sing

le S

elec

tCo

nsul

tanc

yYe

sO

PM C

onsu

lting

199

,872

14

/10/

2015

14/0

4/20

16Ye

s

Cit

y to

th

e L

ak

e -

Act

on

Pe

nin

sula

r S

tru

ctu

re p

lan

Sing

le S

elec

tCo

nsul

tanc

yYe

sO

xige

n Pt

y Lt

d 1

04,5

00

29/1

0/20

1531

/12/

2015

Yes

En

viro

nm

en

tal S

ite

Inve

stig

ati

on

Kin

gst

on

Fo

resh

ore

Sit

es

11

& 1

6B

Quo

tatio

ns

Cons

ulta

ncy

No

WSP

/Par

sons

Brin

kerh

off

Pty

Ltd

164

,447

21

/06/

2016

31/0

1/20

17N

o

Hig

gin

s W

ate

r

serv

ice

s u

pg

rad

es

Publ

ic T

ende

rW

orks

No

CB E

xcav

atio

ns P

ty L

td 2

06,1

58

12/1

1/20

1520

/01/

2017

No

176

Cont

ract

Titl

e Pr

ocur

emen

t M

etho

dolo

gy

Proc

urem

ent

Type

Exem

ptio

n fr

om Q

uota

tion

and

Tend

er

Thre

shol

d Re

quire

men

ts

Cont

ract

or N

ame

Co

ntra

ct

Amou

nt

($)

Exec

utio

n Da

teEx

piry

Da

te

Smal

l to

Med

ium

En

terp

rise

Ca

mp

be

ll 5

Bio

div

ers

ity

Off

set

ma

na

ge

me

nt

pla

n -

Yarr

alu

mla

Eq

ue

stri

an

Pa

rk

Sing

le S

elec

tCo

nsul

tanc

yYe

sSM

EC A

ustra

lia 5

0,00

0 10

/06/

2016

30/0

6/20

17N

o

Re

d H

ill H

ou

sin

g P

reci

nct

-

Sit

e In

vest

iga

tio

n

Pane

lCo

nsul

tanc

yN

oDo

ugla

s Par

tner

s Pty

Ltd

38,

362

28/1

1/20

1528

/11/

2016

No

Re

d H

ill H

ou

sin

g P

reci

nct

-

Sit

e In

vest

iga

tio

n r

ep

ort

Pane

lCo

nsul

tanc

yN

oIn

desc

o Pt

y Lt

d 3

0,81

6 18

/01/

2016

30/0

6/20

16N

o

Dic

kso

n B

lock

s 2

2 &

25

Sit

e in

vest

iga

tio

n

Quo

tatio

nsCo

nsul

tanc

yN

oCa

rdno

NSW

/ACT

26,

822

16/1

1/20

1530

/06/

2016

No

Dic

kso

n N

ort

hb

ou

rne

Ho

usi

ng

Arc

hiv

al R

eco

rd

Quo

tatio

nsCo

nsul

tanc

yN

oPh

ilip

Lees

on A

rchi

tect

s (T

rust

ee fo

r Lee

son

Fam

ily T

rust

)

40,

205

16/0

6/20

1630

/06/

2016

Yes

La

wso

n S

tag

e 2

-

Re

loca

tio

n H

igh

Vo

lta

ge

(11

kV

) F

ee

de

r C

ab

les

Sing

le S

elec

tSe

rvic

es (n

on-

cons

ulta

ncy)

Yes

Icon

Dist

ribut

ion

Inve

stm

ents

Li

mite

d An

d Je

men

a (A

CT) P

ty

Ltd

T/a

Acte

wag

l Dist

ribut

ion

1,0

79,4

7929

/06/

2015

29/0

6/20

16N

o

Ja

cka

an

d K

en

ny

En

viro

nm

en

tal L

an

d U

se

Ca

pa

bil

ity

An

aly

sis

Quo

tatio

nsCo

nsul

tanc

yN

oCa

rdno

NSW

/ACT

50,

050

2/07

/201

530

/09/

2015

No

Th

rosb

y -

En

gin

ee

rin

g

an

d P

roje

ct M

an

ag

em

en

t

Co

nsu

lta

nt

Sing

le S

elec

tCo

nsul

tanc

yYe

sW

arw

ick

Jone

s Con

stru

ctio

n Se

rvic

es P

ty L

td 1

90,0

8021

/07/

2015

21/0

7/20

16N

o

Be

lco

nn

en

Zo

ne

Su

bst

ati

on

Ea

rth

ing

Stu

dy

Quo

tatio

nsCo

nsul

tanc

yN

oSa

fear

th C

onsu

lting

36,

826

23/0

7/20

1523

/12/

2015

No

Th

rosb

y R

esi

de

nti

al E

sta

te-

Pri

nci

pa

l’s A

pp

rove

d

De

leg

ate

Publ

ic T

ende

rCo

nsul

tanc

yN

oCa

libre

Con

sulti

ng (A

CT)

Pty

Ltd

1,7

85,9

45

3/08

/201

53/

08/2

018

Yes

En

gin

ee

rin

g C

on

sult

an

cy

Tayl

or

Re

sid

en

tia

l Est

ate

Sta

ge

1

Sing

le S

elec

tCo

nsul

tanc

yYe

sIn

desc

o Pt

y Li

mite

d 1

,741

,302

9/

09/2

015

9/09

/201

7N

o


Cont

ract

Titl

e Pr

ocur

emen

t M

etho

dolo

gy

Proc

urem

ent

Type

Exem

ptio

n fr

om Q

uota

tion

and

Tend

er

Thre

shol

d Re

quire

men

ts

Cont

ract

or N

ame

Co

ntra

ct

Amou

nt

($)

Exec

utio

n Da

teEx

piry

Da

te

Smal

l to

Med

ium

En

terp

rise

Pla

nn

ing

Co

nsu

lta

ncy

Ta

ylo

r

Re

sid

en

tia

l Est

ate

Sta

ge

1

Sing

le S

elec

tCo

nsul

tanc

yYe

sTh

e Ex

pert

Clie

nt P

ty L

td

T/a

Tait

Wad

ding

ton

358

,454

9/

09/2

015

9/09

/201

7Ye

s

En

gin

ee

rin

g C

on

sult

an

tSi

ngle

Sel

ect

Cons

ulta

ncy

Yes

Tota

l Con

stru

ctio

n Pr

ofes

sion

al 2

15,6

00

20/1

0/20

1519

/10/

2016

No

La

wso

n S

ou

th O

pe

n S

pa

ce

La

nd

sca

pe

Co

nst

ruct

ion

Sta

ge

s 1

D &

1B

1

Publ

ic T

ende

rW

orks

No

Bria

rwoo

d Pt

y Lt

d T/

a RA

M

Cons

truc

tions

2,9

70,1

2128

/10/

2015

8/06

/201

7Ye

s

Hu

me

S2

2 B

81

Civ

il

En

gin

ee

r C

on

sult

an

cy &

Su

pe

rin

ten

de

ncy

Quo

tatio

nsCo

nsul

tanc

yN

oIn

desc

o Pt

y Li

mite

d 3

0,89

5 3/

11/2

015

30/0

6/20

16N

o

Co

om

bs

3A

Op

en

Sp

ace

lan

dsc

ap

e d

esi

gn

an

d p

ath

ne

two

rk

Quo

tatio

nsCo

nsul

tanc

yN

oRe

dbox

Des

ign

Grou

p Pt

y Lt

d 7

4,80

015

/12/

2015

26/1

1/20

16Ye

s

De

velo

pm

en

t m

an

ag

em

en

t

Se

rvic

es

Sing

le S

elec

tCo

nsul

tanc

yYe

sGa

vin

Kem

p Co

nsul

ting

Pty

Ltd

242

,000

18

/01/

2016

20/1

2/20

16Ye

s

Wa

ter

Qu

ali

ty M

on

ito

rin

g –

Ca

mp

be

ll 5

Sing

le S

elec

tSe

rvic

es (n

on-

cons

ulta

ncy)

Yes

Uni

vers

ity o

f Can

berra

T/a

The

Inst

itute

of A

pplie

d Ec

olog

y 1

05,5

44

1/02

/201

631

/12/

2019

No

Mo

lon

go

3 S

tag

e 2

Urb

an

De

velo

pm

en

t F

ram

ew

ork

Quo

tatio

nsCo

nsul

tanc

yN

oTh

e Tr

uste

e fo

r TH

E RD

D TR

UST

T/a

Robe

rts D

ay G

roup

Pt

y Lt

d

126

,457

12/0

4/20

1631

/07/

2016

No

Th

rosb

y S

tag

e 3

- E

lect

rica

l

Re

ticu

lati

on

Sing

le S

elec

tW

orks

Yes

Icon

Dist

ribut

ion

Inve

stm

ents

Li

mite

d An

d Je

men

a (A

CT) P

ty

Ltd

T/a

Acte

wag

l Dist

ribut

ion

406

,991

28/0

4/20

1628

/04/

2018

No

Th

rosb

y S

tag

e 2

-

Ele

ctri

cal R

eti

cula

tio

n

Sing

le S

elec

tW

orks

Yes

Icon

Dist

ribut

ion

Inve

stm

ents

Li

mite

d An

d Je

men

a (A

CT) P

ty

Ltd

T/a

Acte

wag

l Dist

ribut

ion

732

,421

2/05

/201

62/

05/2

018

No

Th

rosb

y: S

tag

e 1

Civ

il

con

stru

ctio

n

Publ

ic T

ende

rW

orks

No

Wod

en C

ontra

ctor

s Pty

Ltd

19,

249,

542

30/0

9/20

153/

05/2

017

Yes

Th

rosb

y: S

tag

e 2

Civ

il

con

stru

ctio

n

Publ

ic T

ende

rW

orks

No

Canb

erra

Con

tract

ors

24,

192,

130

23/1

0/20

1523

/06/

2017

Yes

178

Cont

ract

Titl

e Pr

ocur

emen

t M

etho

dolo

gy

Proc

urem

ent

Type

Exem

ptio

n fr

om Q

uota

tion

and

Tend

er

Thre

shol

d Re

quire

men

ts

Cont

ract

or N

ame

Co

ntra

ct

Amou

nt

($)

Exec

utio

n Da

teEx

piry

Da

te

Smal

l to

Med

ium

En

terp

rise

Th

rosb

y: S

tag

e 3

Civ

il

con

stru

ctio

n

Publ

ic T

ende

rW

orks

No

Grou

p O

ne P

ty L

td 1

5,31

1,99

3 1/

12/2

015

30/0

4/20

15Ye

s

Th

rosb

y S

tre

etl

igh

t

Lu

min

air

es

Publ

ic T

ende

rGo

ods a

nd

Serv

ices

No

Peca

n Li

ghtin

g (T

rust

ee fo

r Pe

can

John

ston

Uni

t Tru

st)

192

,665

22

/06/

2016

22/0

6/20

17N

o

Hu

ntl

y C

on

sult

an

cySi

ngle

Sel

ect

Serv

ices

(non

-co

nsul

tanc

y)Ye

sIa

n H

ughe

s 4

8,00

0 8/

04/2

016

8/10

/201

6Ye

s

Th

rosb

y S

tag

e 1

- E

lect

rica

l

Re

ticu

lati

on

Sing

le S

elec

tW

orks

Yes

Icon

Dist

ribut

ion

Inve

stm

ents

Li

mite

d An

d Je

men

a (A

CT) P

ty

Ltd

T/a

Acte

wag

l Dist

ribut

ion

537

,856

8/03

/201

68/

03/2

017

No

Gu

ng

hli

n T

ow

n C

en

tre

Pro

ject

Ma

na

ge

me

nt

Sing

le S

elec

tCo

nsul

tanc

yYe

sGr

iffith

s Con

sulti

ng 1

62,2

50

4/01

/201

615

/01/

2017

Yes

De

nm

an

Pro

spe

ct 1

A2

Su

bst

ati

on

re

loca

tio

n

Sing

le S

elec

tW

orks

Yes

Icon

Dist

ribut

ion

Inve

stm

ents

Li

mite

d An

d Je

men

a (A

CT) P

ty

Ltd

T/a

Acte

wag

l Dist

ribut

ion

75,

244

1/01

/201

631

/07/

2016

No

Hu

me

Civ

il: B

81

S2

2Pu

blic

Ten

der

Wor

ksN

oCo

mpl

ex C

ivil

276

,492

12

/02/

2016

30/1

1/20

16Ye

s

Pia

llig

o S

ou

th L

an

dfi

ll

site

s in

vest

iga

tio

ns

Pane

lCo

nsul

tanc

yN

oAe

com

Aus

tralia

Pty

Ltd

131

,275

13

/11/

2015

13/1

1/20

16Ye

s

No

rth

We

sto

n -

Sa

mp

lin

g, A

sse

ssm

en

ts,

Qu

ali

ty p

lan

nin

g

Pane

lCo

nsul

tanc

yN

oAe

com

Aus

tralia

Pty

Ltd

28,

860

6/05

/201

630

/09/

2016

Yes

Wil

lia

msd

ale

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Anita HargreavesChief Financial OfficerLand Development Agency+ 61 2 6207 [email protected]

180

C.6 STATEMENT OF PERFORMANCE

FOR THE YEAR ENDED 30 JUNE 2016


REPORT OF FACTUAL FINDINGS



Report on the statement of performance The statement of performance of the Land Development Agency for the year ended 30 June 2016 has been reviewed.

Responsibility for the statement of performance The Governing Board of the Land Development Agency is responsible for the preparation and fair presentation of the statement of performance in accordance with the Financial Management Act 1996. This includes responsibility for maintaining adequate records and internal controls that are designed to prevent and detect fraud and error, and the systems and procedures used to measure the results of the performance indicators reported in the statement of performance.

The auditor’s responsibility Under the Financial Management Act 1996 and Financial Management (Statement of Performance Scrutiny) Guidelines 2016, I am responsible for providing a report of factual findings on the statement of performance.

The review was conducted in accordance with Australian Auditing Standards applicable to review engagements, to provide assurance that the results of the performance indicators reported in the statement of performance have been fairly presented in accordance with the Financial Management Act 1996.

A review is primarily limited to making inquiries with representatives of the Land Development Agency, performing analytical and other review procedures and examining other available evidence. These review procedures do not provide all of the evidence that would be required in an audit, therefore, the level of assurance provided is less than that given in an audit. An audit has not been performed and no audit opinion is being expressed on the statement of performance.

The review did not include an assessment of the relevance or appropriateness of the performance indicators reported in the statement of performance or the related performance targets.

No opinion is expressed on the accuracy of explanations provided for variations between actual and targeted performance due to the often subjective nature of such explanations.

REPORT OF FACTUAL FINDINGS



Report on the statement of performance The statement of performance of the Land Development Agency for the year ended 30 June 2016 has been reviewed.

Responsibility for the statement of performance The Governing Board of the Land Development Agency is responsible for the preparation and fair presentation of the statement of performance in accordance with the Financial Management Act 1996. This includes responsibility for maintaining adequate records and internal controls that are designed to prevent and detect fraud and error, and the systems and procedures used to measure the results of the performance indicators reported in the statement of performance.

The auditor’s responsibility Under the Financial Management Act 1996 and Financial Management (Statement of Performance Scrutiny) Guidelines 2016, I am responsible for providing a report of factual findings on the statement of performance.

The review was conducted in accordance with Australian Auditing Standards applicable to review engagements, to provide assurance that the results of the performance indicators reported in the statement of performance have been fairly presented in accordance with the Financial Management Act 1996.

A review is primarily limited to making inquiries with representatives of the Land Development Agency, performing analytical and other review procedures and examining other available evidence. These review procedures do not provide all of the evidence that would be required in an audit, therefore, the level of assurance provided is less than that given in an audit. An audit has not been performed and no audit opinion is being expressed on the statement of performance.

The review did not include an assessment of the relevance or appropriateness of the performance indicators reported in the statement of performance or the related performance targets.

No opinion is expressed on the accuracy of explanations provided for variations between actual and targeted performance due to the often subjective nature of such explanations.

182

Electronic presentation of the statement of performance Those viewing an electronic presentation of the statement of performance should note that the review does not provide assurance on the integrity of information presented electronically, and does not provide an opinion on any other information which may have been hyperlinked to or from the statement of performance. If users of the statement of performance are concerned with the inherent risks arising from the electronic presentation of information, then they are advised to refer to the printed copy of the reviewed statement of performance to confirm the accuracy of the electronically presented information.

Independence Applicable independence requirements of Australian professional ethical pronouncements were followed in conducting the review.

Review opinion Based on the review procedures, no matters have come to my attention which indicate that the results of the performance indicators, reported in the statement of performance of the Land Development Agency for the year ended 30 June 2016, are not fairly presented in accordance with the Financial Management Act 1996.

This review opinion should be read in conjunction with the other information disclosed in this report.

Dr Maxine Cooper Auditor-General 16 September 2016

SECTION D: EXCEPTION AND AGENCY SPECIFIC REPORTING


D.1 DANGEROUS SUBSTANCES

The LDA was not served with any notices of non-compliance relating to the Dangerous Substances Act 2004 during the 2015-16.



D.2 MEDICINES, POISONS AND THERAPEUTIC GOODS

The LDA was not served with any notices of non-compliance relating to the Medicines, Poisons and Therapeutic Goods Act 2008 during the 2015-16.



SECTION E: EDUCATION AND TRAINING


E. EDUCATION AND TRAINING

The LDA has no items to report against this section.

SECTION F: HEALTH


F. HEALTH


SECTION G: GAMBLING AND RACING


G. GAMBLING AND RACING


SECTION H: MINISTERIAL AND DIRECTOR-GENERAL DIRECTIONS


H. MINISTERIAL AND DIRECTOR-GENERAL DIRECTIONS

The LDA did not receive any Ministerial Directions under the Planning and Development Act 2007 during 2015-16.



SECTION I: PUBLIC LAND MANAGEMENT PLANS


I. PUBLIC LAND MANAGEMENT PLANS

The LDA was not custodian of public land in 2015-16 and was therefore not required to prepare any public land management plans during the year.



SECTION J: THIRD PARTY INSURANCE


J. THIRD PARTY INSURANCE


SECTION K: VICTIMS OF CRIME


K. VICTIMS OF CRIME


SECTION L: WASTE MINIMISATION CONTRAVENTIONS


L. WASTE MINIMISATION CONTRAVENTIONS


SECTION M: COMMUNITY ENGAGEMENT AND SUPPORT


M. COMMUNITY ENGAGEMENT AND SUPPORT

OVERVIEW OF DIRECTORATE/AGENCY APPROACH TO ENGAGEMENTThe 2015-16 LDA SOI outlined a commitment by the LDA to ‘engage the community in a timely manner in the land development process and continue to improve community engagement processes for high profile redevelopments.’

A key deliverable was to ‘deliver high quality, sustainable developments, including public realm and community development’.

The CMTEDD Community Engagement team provides strategies and services to the LDA Executives and project teams with the aim of ensuring open, proactive and meaningful communications and community engagement. The team aims for best practice by:

> collaborating with project team members to achieve project objectives, recognising their expertise and experience;

> integrating early with project teams working on urban renewal projects, land releases, and arts, business and policy initiatives;

> developing comprehensive community engagement strategies; and

> tailoring activities to specific target audiences and project goals. The team is guided by the following principles and values (based on those of the International Association for Public Participation, IAP2):

1. Public participation is based on the belief that the interests of those who are affected by a decision are considered in the decision-making process.

2. Appropriate and managed public participation will produce better and more sustainable outcomes. Public participation promotes sustainable decisions by recognising and communicating the needs and interests of all participants, including decision makers.

3. Public participation seeks out and facilitates the involvement of those potentially affected by or interested in a decision.

4. Public participation seeks input from participants in designing how they participate.

5. Public participation provides participants with the information they need to participate in a meaningful way.

6. Public participation communicates to participants how their input affected the decision.

The LDA continues to implement its community development program called Mingle, which is designed to build vibrant local communities within new LDA estates. The program aims to achieve a number of social objectives based around the notion of encouraging new residents to feel part of the community and become involved in community life and activities. Mingle ultimately assists residents to create networks, groups and programs that will become self-sustaining.

The program is tailored for each suburb to suit demographics, resident feedback and proximity to surrounding services. The LDA continues to work closely with other ACT Government Directorates to help meet program objectives and to deliver events. In 2015-16 the Mingle program continued in Bonner and Molonglo Valley (Wright and Coombs) and supported community initiatives in Franklin including Neighbourhood Watch. It also commenced in Moncrieff.

COMMUNITY ENGAGEMENT ACTIVITIES

LDA EVENTS

The LDA has engaged with the community through corporate events including the ‘Celebrate Gungahlin’ festival, the Real Estate Institute ACT Home Buyers’ Expo and the Moncrieff Display Village launch.

CANBERRA BRICKWORKS PRECINCT

In August 2015, the Chief Minister Andrew Barr announced the Canberra Brickworks proposal. The site, of 16 hectares, delivers activation of the Brickworks and its public realm.

The Canberra Brickworks Precinct gave the LDA an opportunity to try a new form of community engagement. In November 2015 the LDA established a Community Panel to develop Precinct Objectives for the site. The Community Panel consists of six stakeholders, and has met six times over a period of five months. During this period all panel members were expected to consult with and

210

present views of the group they represented and, in turn, convey considerations and outcomes of the panel to their members. The Precinct Objectives were published on the LDA’s website and included in the RFP, forming part of the evaluation criteria. RFP sales documents were released to the market on 2 April 2016 in a two-stage process to select a preferred tenderer.

The RFP closed on 16 June 2016 and the Community Panel was invited to provide advice to the RFP Evaluation Panel on Proponents responses to the Precinct Objectives. As advisors to the LDA they were asked to consider the need for probity protocol and participate within probity requirements.

This type of community engagement has not been undertaken in the ACT before and the Community Panel members expressed very strong support for this collaborative engagement process. The Community Panel will continue to be involved in the second phase of the sales process, the Request for Tender (RFT).

FURZER STREET PRECINCT, PHILLIP

Work on the Furzer Street Precinct in Phillip began in April 2015 and is due for completion in July 2016. The realignment of Corinna Street began in late November 2015, requiring the closure of a section of Corinna Street between mid-February and July 2016. Community engagement tools included face to-face meetings with the Woden Seniors Centre, Westfield Shopping Centre and nearby businesses to inform them of any traffic interruptions or impact, letterbox drops, emails, website updates and presentations to the Woden Community Council. Approximately 400 letters were distributed to nearby apartments, government buildings and businesses, and 20 people attended an information session in February 2016 at Woden Library. Under the ACT Government’s Indicative Land Release Program, the Furzer Street Precinct (Phillip Block 16 Section 3) is scheduled for release in 2017-18.

GUNGAHLIN TOWN CENTRE

The LDA has engaged with the community through corporate events including the ‘Celebrate Gungahlin’ festival and the Gungahlin Movie Marathon. This includes Communities@Work, My Gungahlin and the Gungahlin Community Council. Gungahlin Movie Marathon monthly meetings were held with stakeholders to develop the event and movie program. A community survey was also conducted to seek feedback on the movie program which received 260 responses. A total of 19 movies were screened over three days with all ticket proceeds going to 12 not-for-profit groups working to benefit the Gungahlin community.

MONCRIEFF

The LDA has engaged with the MBA on the development of the Moncrieff Display Village.

In 2015-16, in Moncrieff there was one community event linked to the opening of the Moncrieff Display Village, and one community newsletter.

SOUTHQUAY GREENWAY PARK NAMING COMPETITION

The community was invited by the LDA and the ACT Place Names Committee to help name a new park in Southquay Greenway by nominating the name of a person who made a significant contribution to the local community, a deceased Australian architect, or a word or characteristic associated with the history of the local area. A total of 10 nominations from the community were received, and are being assessed by the ACT Place Names Committee. Official park naming notification will occur in 2016-17.

CAMPBELL PARK NAMING POLL

The LDA and the ACT Place Names Committee invited the community to help select a name for the Campbell park. In keeping with the theme for the suburb, five names were short-listed by the ACT Place Names Committee. The selected names reflected the nomenclature themes of Defence Personnel and/or the names of people who have some provenance with the suburb of Campbell. The park naming was via a voting system where the LDA received 372 votes in total across the five names put forward. Official park naming notification will occur in 2016-17.

MOLONGLO VALLEY – WRIGHT AND COOMBS

The LDA has initiated a working group for Molonglo Valley residents to meet monthly to discuss progress in the suburbs and opportunities for new events and activities. A number of large-scale Community Information Sessions have been held to communicate development updates and ACT Government programs and initiatives. There have been guest speakers from the PHRT, TAMS, EPD and the Molonglo River Corridor Team. Attendance at meetings has varied from 8 -100 residents. A community survey was conducted in May/June 2016 which received 196 responses. In 2015-16, in Wright and Coombs there were a total of 22 activities and three community newsletters. Activities included fitness classes, Bike Day, Cancer Council’s Biggest Morning Tea, Ranger Walk, Easter Egg Hunt, Dogs Day Out and Astronomy Night.


BONNERIn 2015-16, in Bonner there were a total of six activities and two community newsletters. Activities included community conversation workshop, ACT Brumbies sports day, Astronomy Night, Easter Egg Hunt, Party at the Shops and a photography competition. The LDA has worked with a number of Bonner residents as part of the transition strategy for finalising the program in the community. The LDA has been involved in a number of strategic conversations on the future of community activities in the area.There are approximately eight to 10 active members in the group.

GUNGAHLIN COMMUNITY ASSOCIATION GROUP FORUM

The LDA commenced a Gungahlin community forum in June 2016 with representatives from Bonner, Crace, Casey, Franklin and Forde to establish improved links with connecting suburbs.

WEST BASIN WATERFRONT, CITY TO THE LAKE

On 26 September 2015, the community were invited to comment on a Works Approval application for the West Basin waterfront, which is part of the City to the Lake project. The three week consultation process was conducted by the NCA as the agency with responsibility for development proposals at West Basin and follows community engagement processes undertaken by the ACT Government in 2013 and 2015. The application included two works packages. ‘Works package 1’ sought approval for lake reclamation, a new lake wall and site servicing. ‘Works package 2’ was for the construction of the landscape foreshore earthworks, hard and soft landscaping, boardwalk, pavilions and associated works. The application submitted included an illustrative Master Plan, detailed drawings and artist impressions showing what the precinct would look like when complete. The application was supported by various studies that were undertaken to inform the waterfront design, including heritage, environment, tree assessment and retail analysis. Accompanying the application was the City to the Lake Strategic Urban Design Framework to guide the project over the next 20 years. It reflects the principles of good urban design and outlines a set of key moves and design principles to achieve an urbane,

diverse and pedestrian friendly precinct. Sustainability and design excellence are core goals of the project. The draft framework was displayed at the drop in sessions held during the consultation period in June 2015, and was updated to reflect feedback received.

Construction of the Point Park boardwalk is scheduled to commence in late 2016.

URBAN RENEWAL COMMUNITY ENGAGEMENT – MAKING CANBERRA’S HEART SING

From 4 – 8 April 2016, the ACT Government hosted the visit of two international urban renewal experts. Professor Larry Beasley and Mr Gordon Harris were invited to share their experiences on creating successful, sustainable cities that are valued by the community. Professor Beasley is the retired Chief Planner for the City of Vancouver. He led the planning and development management initiatives to transform Vancouver into a world model for contemporary sustainable and liveable cities. He now teaches and advises on urbanism around the world. Mr Harris leads the development of UniverCity, an award-winning sustainable community on the Burnaby Mountain endowment lands of British Columbia’s Simon Fraser University.

Professor Beasley and Mr Harris delivered an intensive program of public lectures, master classes and workshops during their weeklong visit. Activities were structured to identify the gaps and opportunities for state-of-the-art transformation in central Canberra and transformation ideas for central Canberra.

Participants across the week of events included university students and representatives from government, industry and the community. 150 people attended the lunchtime address, 144 spaces were filled for the master classes, 60 people participated in the forum and 100 people attended a free debate. Feedback received during the engagement process has informed the development of draft principles and a strategy statement for the transformation of central Canberra.

212

KINGSTON FORESHOREIn 2015-16, the LDA developed quarterly Kingston Foreshore Shoreline for the community.

There has been ongoing community engagement with Kingston Foreshore stakeholders. These include:

> meetings of commercial boat operators and Lake User Group associated with slipway design and location;

> rowing facilities (stakeholders including Capital Lakes Rowing Club);

> residents and stakeholder meetings; and

> general progress update / consultation.

PARKES SECTION 3

In Parkes Section 3, extensive consultation has been undertaken with the Canberra Institute of Technology (CIT), Pedal Power, the community and the Department of Finance.

SPONSORSHIP PROGRAMS

OVERVIEW OF DIRECTORATE/AGENCY APPROACH TO SUPPORT

CMTEDD is actively involved in a large range of activities in undertaking its primary role to enhance economic development for the ACT’s future. It has a large stakeholder base that includes industry and business institutions, professional societies and community councils and groups.

The interface with these stakeholders and the LDA’s partnership approach attracts a number of requests for sponsorship. The support requested may be in the form of cash payment, in-kind support through provision of goods, labour or services, or a combination of these.

LDA SPONSORSHIPS

Outgoing sponsorship provides an opportunity to enhance the LDA’s and ACT Government’s corporate identity and to promote government delivered programs and services.

Details of sponsorships provided during the 2015-16 financial year are on page 213 of this Annual Report.


Recipient Project Purpose/Summary Amount ($)

Construction Industry Training Council (CITC) Silver sponsor of the CITC Training Excellence Awards 2015

$2,750

Leukaemia Foundation Sponsorship of the ‘Light the Night' event held at Kingston Foreshore 2015.

$5,000

MG Cultural Program Sponsorship of the ‘Art, Not Apart’ Festival 2016 $110,000

Australian Property Institute (API) Sponsorship of the Excellence in Property Awards $4,400

Salvation Army Sponsorship of the Christmas Carols at Tuggeranong Town Park

$5,000

Real Estate Institute of the ACT Sponsorship of the 2016 Home Buyers Expo $5,500

Community Housing Canberra (CHC) Sponsorship of the CHC Micro-Unit Exhibition $10,000

Devil Moon Sponsorship of the 2015 ACT ‘Parties at the Shops’ event program

$15,000

Canberra Glassworks Winter Glass Market 2016 sponsor $3,000

Communities@Work Key sponsor of the ‘Celebrate Gungahlin’ Festival $15,800

Australian Property Institute (API) Sponsorship of the API ACT Industry Forum 2016 $3,520

Master Builders Association Sponsorship of the Civil Contractors Federation Earth Awards 2016

$3,800

Construction Industry Training Council (CITC) Silver sponsor of the CITC Training Excellence Awards 2016

$1,650



SECTION N: JUSTICE AND COMMUNITY SAFETY


N. JUSTICE AND COMMUNITY SAFETY

The LDA has provided input to the Justice and Community Safety Directorate in relation to bushfire risk management, freedom of information, human rights and legal services directions for inclusion in the 2015-16 Justice and Community Safety Directorate Annual Report.

SECTION O: PUBLIC SECTOR STANDARDS AND WORKFORCE PROFILE


O. PUBLIC SECTOR STANDARDS AND WORKFORCE PROFILE

The LDA has provided input to the Commissioner for Public Administration in relation to the directorate’s culture and behaviours, Public Interest Disclosures and workforce profile for inclusion in the 2015-16 State of the Service Report.

SECTION P: TERRITORY RECORDS


P. TERRITORY RECORDS

The LDA has provided input to the Director of Territory Records on the directorate’s records management program for inclusion in the 2015-16 Director of Territory Records Annual Report.

ALPHABETICAL INDEX


ALPHABETICAL INDEX

Affordable Housing 55

Initiatives 19

Asbestos 10, 13, 25

Asset Recycling Initiative 16, 22, 23, 66, 67, 98, 106, 115, 146

Awards 15, 21, 24, 27, 38, 211, 213

Canberra Brickworks Precinct 26, 42, 49, 209

Capital Metro Corridor 10, 13, 22, 23, 24

Capital Works 11, 16, 21, 24, 166, 172

City to the Lake Project 18, 27, 46, 211

CMTEDD Corporate Framework 33

CMTEDD Strategic People Plan 2015-2017 33

Community Engagement 6, 10, 11, 20, 21, 26, 44, 52, 53, 208, 209, 210, 211, 212

Community Housing 14, 17, 19, 20, 28, 213

Commercial Land Release Program 22

Denman Prospect 18, 20, 22, 23, 25, 27, 42, 45, 49, 50, 52, 55, 166, 167, 168, 169, 178

Green Star Communities 20, 28

Greenfield Developments 55

Health and Safety 11, 16, 19, 29, 31, 32, 33

Independent Audit Reports 75-76, 149-150, 181-182

Indicative Land Release Program 2, 10, 210

Kingston Arts Precinct 18, 23, 24, 25

Kingston Foreshore 20, 22, 42, 43, 52, 168, 169, 170, 175

Land Rent 19, 28, 44, 55

Mingle Community Development Program 11

Public Housing Renewal Program 16, 18, 19

Staff 9, 18, 21, 30-35, 56, 57, 172

Urban Renewal 9, 10, 16, 19, 21, 22, 23, 24, 26, 35, 37, 38, 209, 211

West Belconnen Development 28

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