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Annual Report 2012-13

Housing Authority

To A�ordable HousingOPENINGDOORSGovernment of Western Australia

Housing Authority

Housing Authority – Annual Report 2012-13 1

Hon Bill Marmion MLA Minister for Housing

In accordance with section 63 of the Financial Management Act 2006, I hereby submit for your information and presentation to Parliament, the Annual Report of the Housing Authority for the financial year ended 30 June 2013.

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

Grahame Searle Chief Executive Officer

20 September 2013

Statement of Compliance

Housing Authority – Annual Report 2012-132

Glossary

CBD Central Business District

CHO Community Housing Organisation

GROH Government Regional Officers’ Housing

NAIDOC National Aborigines and Islanders Day Observance Committee

NGO Non government organisation

NPAH National Partnership Agreement on Homelessness

NPARIH National Partnership Agreement on Remote Indigenous Housing

NRAS National Rental Affordability Scheme

RAESP Remote Area Essential Services Program

PRAAL Private Rental Aboriginal Assistance Loans

About the coverImagine coming home to a caravan where three people live, after a day of hard work. That is what Jhonas and Danvin from Port Hedland did before being allocated a house under a new initiative to provide housing to the local workforce.

Affordability in the town of Port Hedland has become a major issue for small businesses and employees alike as they struggle to come to grips with housing affordability issues in the area. This has resulted in soaring rental costs and small businesses having to subsidise housing in order to retain staff.

The Hedland 125 Service Worker Intervention Package is providing much needed affordable housing. At the close of the financial year 116 of 125 houses were delivered.

By providing affordable housing, the project is helping to retain valuable workers within Port Hedland, reducing costs to small businesses and providing workers like Jhonas and Danvin with a place to call home.

The program is funded through Royalties for Regions.

http://www.housing.wa.gov.au/investorsandpartners/swa/hedland/Pages/default.aspx


Contents

Statement of Compliance 1

Celebrating excellence 4

Overview 5

Introducing ourselves 6

Chief Executive Officer’s overview 10

Opening Doors to Affordable Housing 14

About the Housing Authority 17

Our divisions 22

Performance Management Framework 23

Agency Performance 27

Delivering Our Vision 28

Land and Housing Supply 30

Affordable Rental 42

Affordable Home Ownership 49

Social Housing 54

Our Partners, Our People 77

Significant Issues Impacting the Authority 87

Our environment 88

Delivering on the State Government’s Affordable Housing Strategy 89

National Partnership Agreements 92

Disclosures and Legal Compliance 93

Auditor General’s opinion 95

Financial Statements 98

Key Performance Indicators 162

Ministerial directives 172

Other financial disclosures 172

Governance disclosures 179

Other legal requirements 180

Government policy requirements 184

Appendices 189

Appendix 1: Housing statistics 190

Appendix 2: Customer service 194

Appendix 3: Our offices 195


Celebrating excellence

The Authority continues to set the benchmark in affordable housing and has been credited with multiple awards and best practice achievements across the housing industry. During the year, we received the following recognition:

Award winningRoyal Institute of British Architects for architectural excellence 2013Fitzgerald Street social housing development, Perth – JCY Architects and Urban DesignersImage courtesy of JCY Architects and Urban Designers (the project Architects) and Damien Hatton (photographer)

Western Australian Architecture Awards 2013 – Winner – The Harold Krantz Award for Residential Architecture, Multiple ResidencesLime Street, East Perth – Formworks Architecture

Australasian Housing Institute Award for Professional Excellence – Winner – Leading Innovation Award (National and Western Australia)Warmun Recovery Project Team

Australasian Housing Institute Award for Professional Excellence – Winner – Leading Housing Solution Award (National and Western Australia)Aboriginal Housing Services and Community Construction Team – NPARIH roll out

RecognitionAustralasian Housing Institute Award for Professional Excellence – Highly Commended – Leading Practice AwardDisruptive Behaviour Management Unit

2012 Premier’s Awards

Finalist in Developing the Economy Project: Affordable Housing Call for Submissions Program

Finalist in Improving Indigenous Outcomes Project: Building Homes, Creating Futures – Leveraging cross government partnerships for housing construction to build sustainable skill development and employment in Indigenous communities

http://www.architecture.com/NewsAndPress/News/RIBANews/News/2013/Winnersofthe2013RIBAInternationalAwardsawardsforarchitecturalexcellenceannounced.aspx


This section provides an overview of our role, highlights for the year, responsibilities, and organisational structure.

Leeanne, a new home owner through the Opening Doors Affordable Sales Program

Overview


Introducing ourselvesThrough the State Government’s Affordable Housing Strategy 2010 – 2020: Opening Doors to Affordable Housing (Affordable Housing Strategy) the Housing Authority (the Authority) is focused on increasing the range and diversity of affordable housing options for people on low to moderate incomes – from social housing and private rental to affordable home ownership.

We provide public housing for those most in need, land and affordable housing opportunities, low deposit home loans through Keystart, assistance to access the private rental market, and quality homes in regional areas for government employees and other key workers so that they can deliver necessary services to their communities.

We play a pivotal role in connecting stakeholders and partners from the private and not-for-profit sectors, local government authorities and other State Government agencies. The aim is to work together and leverage each other’s strengths to make a difference for individuals, families and communities struggling with affordable housing challenges.

Housing Authority staff member

http://www.housing.wa.gov.au/aboutus/affordablehousingstrategy/Pages/default.aspx


Our Vision Our RoleOur MissionOpening Doors. Working in partnership to build

economic and social prosperity by enabling Western Australians to have a place to call home.

The Authority seeks to build better communities and support the economic and regional development of the State through enabling Western Australians to have a place to call home.

“We play a pivotal role in increasing the range and diversity of affordable housing options for people on low to moderate incomes.

Affordable housing, Ellenbrook

“

PREV NEXTSTATEMENT OF COMPLIANCE

OVERVIEW AGENCY PERFORMANCE

SIGNIFICANT ISSUES

DISCLOSURES AND LEGAL

APPENDICIESCONTENTS


Our Values > Accountability

We take responsibility for our actions and outcomes.

> Continuous improvement We proactively incorporate innovation and best practice to change.

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

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

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

> Respect We positively acknowledge everyone’s contributions.

Housing Authority staff members


What we doIn support of the State Government’s Affordable Housing Strategy, the Authority delivers a range of services that create affordable housing options.

Table 1: Key activities of the Authority and the target group.

Key activity Target group

Social rental housing provided directly by the Authority (public housing) or via not-for-profit organisations (community housing)

Very low income earners and people with complex needs who are unable to secure housing in the private rental market

Private rental programs such as bond assistance loans and housing via the National Rental Affordability Scheme (NRAS)

Low to moderate income earners living in the private rental market

Assisted home purchase (through Keystart Home Loans) – including low deposit and shared equity loans

Low to moderate income earners (mostly first homebuyers) who cannot meet the high entry costs for home ownership

Land development program via joint ventures and in-house developments

Development of lots for the Government’s social and affordable housing programs and for sale to the general public

Regional key worker housing via Government Regional Officers’ Housing (GROH) and new key worker initiatives

Regional government employees and key workers in targeted high cost locations

Remote Aboriginal housing and essential services (eg. power and water supplies)

Residents of remote Aboriginal communities


Chief Executive Officer’s overview

I am pleased to present the agency’s 100th Annual Report to the Parliament of Western Australia. The 2012-13 Annual Report for the Housing Authority outlines the activities and achievements of the agency in the past 12 months.

The past year has been a challenging but successful one for the Authority. We continued to make a substantial contribution to the economic and regional

development of Western Australia by providing housing for a growing workforce needed to build the State’s economy. We also helped more Western Australians realise their dream of home ownership as well as housing those most in need for the duration of their need.

Through the year, the Authority maintained its strong focus on the delivery of the State Government’s Affordable Housing Strategy. Three years into the Strategy, we have already passed the half-way mark of providing 20,000 affordable housing opportunities by 2020.

We are increasingly focused on encouraging innovation and collaborating with not-for-profit and private sector partners to deliver outcomes to the Western Australian community.

We continue to seek out and find innovative ways to provide greater housing opportunities, particularly for those on low to moderate incomes, through the attraction of significant private capital to increase the supply and diversity of affordable housing in Western Australia.

One on Aberdeen in Northbridge will provide 161 apartments in the heart of the city. This development was made possible through the provision of land by the Authority. This enabled our private sector partner to finance the construction, which began in November 2012. From a piece of land worth around $6 million, we will create a $73 million commercial/residential development.

The Opening Doors Affordable Sales Program has achieved success since its launch in September 2011. The program has provided more than 750 families, singles and seniors on modest incomes with a home they can afford. This program was one of the first major initiatives of the Affordable Housing Strategy and is the largest successful shared home ownership scheme in Australia.

Regional development is supported through a continued commitment to provide quality homes for service workers, government and non government employees in regional areas so that they can deliver the necessary services to their communities. The lack of affordable housing in Pilbara towns such as Port Hedland and Newman has had a significant impact on local businesses and their employees.



We completed 58 properties for staff of 34 not-for-profit organisations in the Pilbara and Kimberley to ensure essential community workers remain in the North West. The Authority delivered 400 houses for government employees such as police, teachers and nurses to live and work in key regional areas across the State.

The 125 Service Worker Intervention Package in South Hedland provides a lifeline to local businesses. The project has delivered 116 houses for key workers with the remainder to be ready in late 2013. Other projects include the development of residential lots in the Osprey Estate in South Hedland, with the first release underway, and the Osprey Key Worker Village which will be occupied by the first residents in October 2013.

Western Australia’s community housing organisations (CHOs) have taken on an increasingly significant role in delivering affordable housing under a key initiative in the Affordable Housing Strategy. Through the Asset Transfer Program, the Authority has transferred nearly $400 million worth of public housing assets to community housing growth providers since 2010. These CHOs are then able to use any positive cash flow and leverage these assets to borrow funds and provide additional social and affordable housing. Eight CHOs have since committed to a combined growth target of 491 units over the next 10 years. A total of 46 units have already been completed with more than 100 under construction.

Foundation Housing’s Newcastle Street development, NorthbridgeImage courtesy of Foundation Housing and CODA Studios (project’s architect)


The Authority continues to improve its reputation with key stakeholders through our successful partnerships across all sectors including:

> continuing engagement with the home building industry through our innovative Call for Submissions Program, which provides a flexible market orientated procurement process for new affordable housing supply;

> signing an agreement with the Metropolitan Redevelopment Authority to create 1,300 units of affordable housing by 2020;

> opening of the 148 bedroom Lime Street development, in partnership with St Bartholomew’s House, which provides much needed accommodation in the Perth Central Business District (CBD) for social housing tenants, the homeless and aged persons; and

> commencing the Bentley Regeneration Project, in partnership with the City of Canning, to develop up to 1,500 new dwellings.

We are also improving the management of public housing through the implementation of the State Government’s Disruptive Behaviour Management Strategy to address community concerns about antisocial behaviour by a minority of public housing tenants. This year, the Disruptive Behaviour Management Unit was expanded by 35 staff members across the State.

The Authority continued implementing its long term commitment to improve housing options for remote Aboriginal families and communities. I am particularly pleased with early results from a new program in the East Kimberley that links housing, work and education.

This initiative, delivered in partnership with Community Housing Limited and the Wunan Foundation, is already making a real difference to the lives of those participating in the program.

Kahana Parkway, Brighton


The Authority exceeded again this year its targets set under the National Partnership Agreement on Remote Indigenous Housing (NPARIH). We have achieved this for the past four years, clearly demonstrating our ability to successfully deliver new homes and refurbishments in some of the most remote and challenging Aboriginal communities in the country. I am also pleased that our organisation and staff continued our journey to reconciliation through the implementation of our Reconciliation Action Plan.

The Authority, the Department of Planning and the Western Australian Planning Commission commissioned Housing We’d Choose: A study for Perth and Peel, which was co-funded by industry partners. The report provided important evidence of the need to focus on delivering a wider range of affordable options in infill locations to meet consumer preferences.

The Authority concluded its centenary year with a series of special events, activities and celebrations throughout 2012. The centenary activities gave staff and stakeholders the opportunity to look back on the Authority’s significant milestones and outstanding achievements over the past 100 years and reflect on the important role that the Authority has played in the economic development of the State and the growth of metropolitan and regional centres.

We continue to evolve as an innovative, responsive organisation that works to increase the availability of affordable housing options in the State, from building social housing to developing new land releases, assisting low to moderate income earners into home ownership, constructing housing in remote Aboriginal communities, and providing housing for the increasing workforce in the North West.

This would not be possible without the dedication and professionalism of our people who have worked diligently over the past year. They are the future of the organisation and that’s why we have continued to invest in our graduate and leadership programs, maintained our commitment to staff learning and development and recognised the benefits of diversity.

I look forward to leading the Authority as it works with industry, the non government sector and all levels of government to deliver economic benefits for the State through the Affordable Housing Strategy. Over the next year, we will continue to meet the challenges and capitalise on opportunities that will enable more Western Australians to have a place to call home.


20 September 2013

http://www.planning.wa.gov.au/publications/6772.asp


Public Housing Public Housing

CommunityHousing

Affordable Private Rentals

Affordable Home Ownership

A�ordableHousingStrategy

Figure 1: Affordable housing continuum

Opening doors to affordable housing

The Authority’s strategic direction is set by the Housing Act 1980 and through the State Government’s Affordable Housing Strategy which was endorsed by Cabinet and launched by the then Minister for Housing, the Hon Troy Buswell MLA, in May 2011.

The strategy is the first of its kind in Australia and has a whole of government approach to increasing the supply of affordable housing, with a minimum target of 20,000 additional affordable opportunities by 2020. It has particular focus on providing a range of housing opportunities along the housing continuum that will address the decline in affordable housing entry points, boost the supply and diversity of housing options, and strengthen the social housing system.

In doing so it reshapes the Government’s role in housing away from an over concentration on public rentals as the main solution, to working more widely with partners and markets to increase the range of housing options available.

The continuum (Figure 1) demonstrates the interconnected options across the housing system ranging from social housing at one end to full home ownership at the other.

Since 1 January 2010, the Authority has created more than 10,000 affordable housing opportunities across the affordable housing continuum.



1,600+Public houses freed up

and reallocated to waitlist applicants

secured

$373.1mRoyalties for Regions –

Housing for Workers initiative

370+constructed

1,000+refurbished

houses in remote Aboriginal communities

3,800+New social houses

4,600+Households who could not otherwise

access finance helped to purchase a home through Keystart Home Loans

1,400+Dwellings constructed for affordable

private rental at 20% less than market rate (NRAS)

10,000+Affordable housing opportunities

Affordable Housing Outcomes

This graphic demonstrates highlights for the State Government’s Affordable Housing Strategy 2010-2020: Opening Doors to Affordable Housing for the period 1 January 2010 to 30 June 2013.


Affordable Housing Strategy progress highlights 1 January 2010 to 30 June 2013Through partnerships with the private and community sectors, the Authority has delivered innovations in procurement, design, construction and finance to increase the supply of affordable and social housing for people on low to moderate incomes. Under the State Government’s Affordable Housing Strategy, the following has been achieved:

> 3,864 new social houses for people with very low incomes and no other viable housing choices. This includes:

> $130 million in funding for 433 social houses in the 2012-13 State Budget as part of a two year program, with 328 dwellings commenced; and

> $210.9 million additional funding over four years to housing and support services for 458 people with high support needs, with 228 dwellings completed and a further 31 under construction.

> 373 houses constructed and 1,032 refurbished in remote indigenous communities, exceeding targets under the NPARIH with the Commonwealth Government.

> 1,033 houses provided under the National Partnership Agreement on Homelessness (NPAH) and ‘A Place to Call Home’ program.

> 491 additional houses to be delivered by community housing growth providers, with 46 already completed and a further 101 under construction.

> 1,618 public houses freed up and reallocated to applicants with higher needs.

> 1,427 dwellings completed and construction started on another 713 under NRAS. State Government funding committed for an additional 1,000 dwellings, bringing Western Australia’s total commitment to 7,000 by 2016.

> Partnered with the private sector to contract 1,222 new ‘entry level’ affordable homes.

> 4,655 households who could not otherwise access finance, helped to purchase a home through Keystart Home Loans.

> Assisted 643 low to moderate income households to purchase a home through the SharedStart shared equity program.

> 34,639 people assisted by the Authority through bond assistance loans.

> $373.1 million of Royalties for Regions funding secured over six years (2011-12 to 2016-17) for the Housing for Workers initiative in addition to the 458 dwellings already completed for government regional officers and employees of non government organisations (NGOs).

> 6,686 lots produced by the Housing Authority and its joint venture partners for sale to market as well as for government housing programs.

http://www.dhw.wa.gov.au/sharedstart/Pages/default.aspx


About the Housing Authority

Responsible MinisterThe Housing Authority and the legislation administered are under the control of the Hon Bill Marmion MLA, Minister for Housing, who was appointed in March 2013.

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

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

> Country Housing Act 1998

> Government Employees’ Housing Act 1964

> Housing Act 1980.

Changes to legislation administeredThe Housing Regulations 1980, amended in 2011-12, increase a range of conveyancing fees charged by the Authority. The increased charges commenced on 1 July 2013.

Significant changes to legislation affecting the AuthorityEffective 30 July 2012 amendments were made to the Residential Tenancies Act 1987.


Organisational Structure Minister for Housing Hon Bill Marmion MLA

Chief Executive Officer Grahame Searle

Office of the Director General

General Manager Steve Parry

Aboriginal Housing and Client Services North

Client Services South

Service Delivery Central

Maintenance

Service Delivery

Asset Management and Planning

Corporate Services

Finance

Business Development

Strategic Projects

Housing Programs

Land and Housing Development

Project Management Office

Workforce Development

Communications and Marketing

Business Planning and Improvement

Organisational Transformation

Inter-Governmental Outcomes

Social and Affordable Housing Systems

Market Innovations and Partnerships

Strategic Coordination

General Manager Duncan Mackay

Figure 2: Housing Authority organisational structure as at 30 June 2013

Strategy and Policy

General Manager Tania Loosley-Smith

General Manager Paul Whyte

Commercial and Business Operations



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

As Chief Executive Officer, Grahame is focused on forging new and innovative ways to

meet the increasing demand for housing, including establishing new partnerships with the private sector and CHOs across the State.

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

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

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

In June 2012, the Institute of Public Administration Australia (WA Division) recognised Grahame’s accomplishments by honouring him with the Patrons Award for his outstanding contribution over a substantial number of years towards excellence in public sector administration and management.

Executive profiles

Foundation Housing’s Newcastle Street development, NorthbridgeImage courtesy of Foundation Housing and CODA Studios (project’s architect)


Tania Loosley-Smith General Manager, Strategy and Policy

Tania joined the Authority in August 2008 and was appointed the General Manager of the Strategy and Policy Division in December 2009.

This division is responsible for providing leadership in the implementation of the

Affordable Housing Strategy and related initiatives. This involves creating new policy options, pathways and market-based solutions to help address the demand for social and affordable housing, supporting the sustainable development of the social housing sector and shaping and negotiating national reform priorities and funding arrangements.

Tania is a Western Australian housing representative on the Housing Ministers’ Advisory Committee, Chair of the National Housing and Homelessness Policy and Research Working Group and a board member of Ellenbrook Management Pty Ltd.

Tania has a Bachelor of Social Science and an Australian and New Zealand School of Government Executive Masters in Public Administration.

She joined the public service in 1994 and has worked previously in the Disability Services Commission and Landgate. Before joining the public sector Tania worked in the non government sector and with Westpac Banking Corporation.

Steve Parry General Manager, Service Delivery

Steve was appointed General Manager, Service Delivery in January 2010. Steve has a Graduate Diploma in Social Science (Housing Management and Policy) and is a member of the Australian Institute of Company Directors and the Australian Housing Institute. In 2011,

Steve was selected to attend the Australia and New Zealand School of Government Executive Fellows Program for public sector leaders.

Steve has had substantial experience across the Authority in a career which has taken him from regional work to leadership roles in key areas of service delivery, housing management, Aboriginal housing and infrastructure delivery.

In his current role, Steve is responsible for driving and overseeing a diverse portfolio focused on housing service delivery and Aboriginal housing services. The combined portfolio is responsible for managing and maintaining social housing homes, consisting of public housing rental properties, joint venture and government officer housing and homes in remote Aboriginal communities.

In recent years Steve has been closely involved in a number of major housing initiatives, in particular the NPARIH. Under Steve’s leadership the Authority has exceeded its refurbishment and construction targets in 2012-13.


Paul Whyte General Manager, Commercial and Business Operations

Paul is the General Manager of the Commercial and Business Operations Division. He has broad experience in the private and public sectors. Before joining the Housing Authority in September 2009, he was acting Chief Executive

Officer at Landgate and held the permanent position of Executive Director, Business Development.

Paul was with Landgate (formerly the Department of Land Information and before that the Department of Land Administration) from 2001. Prior to this, he was a member of the Corporate Executive at the Valuer General’s Office.

Paul has held the position of policy adviser to the Western Australian Treasury Corporation and has worked in the private sector as a management consultant and managing director of a number of successful established and start-up businesses.

Paul holds a Bachelor of Commerce and Master of Business Administration, and is a Certified Practising Accountant. He is a board member of Keystart and Ocean Springs Pty Ltd (Butler Joint Venture).

Duncan Mackay General Manager, Organisational Transformation

Duncan is the General Manager of the Organisational Transformation Division and has broad experience in organisational change and strategy, communications and market regulation. Before joining the Authority

in April 2011, he was Director of Consumer Protection Policy at the Department of Commerce for two years. He was responsible for policy and legislative reform in many areas of consumer affairs, including aspects of the land and housing markets.

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


Our divisions

The Authority is organised into four divisions that contribute to supporting the goals of the State Government through the Affordable Housing Strategy and the Authority’s strategic direction.

Strategy and Policy

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

> developing new policy options, pathways and market based solutions to help increase affordable housing options; and

> negotiating reform priorities and funding arrangements.

Service Delivery

Service Delivery strives to be leaders in the delivery and management of housing services and programs to Western Australians by:

> coordinating effective, efficient and value for money maintenance services;

> effective continuous improvement in the provision of property and tenancy management services; and

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

Commercial and Business Operations

Commercial and Business Operations is responsible for a wide range of commercial, corporate and governance services including:

> complex projects such as the State and Commonwealth Stimulus and larger construction projects;

> built form and civil construction to increase housing stocks, land and housing development including the New Living Program which is the largest urban renewal program undertaken in Western Australia;

> housing programs, such as housing for government employees in regional Western Australia and community housing; and

> providing corporate services and governance to the organisation, including financial services, information and communications technology services, facilities management, information management and legal and legislative services.

Organisational Transformation

Organisational Transformation implements and supports the strategic direction, culture and capabilities required to take the Authority into the future. The division initiates and drives change through:

> strategic planning, reporting and performance;

> business improvement;

> communications and marketing;

> workforce development; and

> project management capability.


Outcome Based Management FrameworkThe Authority enhances the quality of life and wellbeing of Western Australians by satisfying the fundamental human need for shelter. In the wider context, affordable, safe and secure housing assists in contributing to positive social outcomes in health, education and employment.

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

The Authority also contributes through GROH which provides government employees with suitable and appropriate housing in regional and remote areas. This supports the Government’s commitment to delivering public services such as education, health and policing throughout the State. Figure 3 illustrates the Authority’s key outcome, services and key performance indicators for the community of Western Australia.

Performance Management Framework

Government Goal

Results-Based Service Delivery

Greater focus on achieving results in key service delivery

areas for the benefit of all Western Australians

Service

Rental Housing

Home Loans

Land

Government Regional Officers’ Housing

Efficiency measures

Operating cost per rental property

Operating cost per current loan account

Operating cost per lot developed

Operating cost per property

Figure 3: The Authority’s outcomes, services and key performance indicators and relationship to government goals.

Housing Authority Agency Level Outcome

Housing eligible Western Australians

Effectiveness measures

The extent to which the Housing Authority

is responsive to the housing needs of eligible Western

Australians

Waiting time for accommodation – applicants housed

The extent to which the Government Regional Officers’

Housing is responsive to the provision of housing to meet

the needs of eligible Western Australian

Government employees


Changes to Outcome Based Management FrameworkThe Authority’s Outcome Based Management Framework did not change during 2012-13.

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

Financial performanceTable 2: Summary of financial performance for 2012-13.

Financial TargetsTarget(1)

$’000Actual(2)

$’000Variation

$’000 Explanation

Total cost of services 1,553,162 1,406,858 (146,304) This variance is mostly attributed to Keystart's interest expense being lower than the Budget. The targeted level of market demand did not eventuate in 2011-12 resulting in a smaller loan book with less borrowings in 2012-13 and consequently reduced interest. Keystart interest is fully offset under Interest Revenue.

Net cost of services 255,018 247,592 (7,426) Reduction in the net cost of services in 2012-13 mostly attributed to reflow of assets transferred to the community housing sector that are scheduled to be transferred in 2013-14.

Total equity 12,769,227 13,607,679 838,452 Equity is greater than anticipated, mostly due to an increase in the book value of property assets.

Net increase (decrease) in cash held 50,469 (36,929) (87,398) The cash movement is largely due to Royalties for Regions funding being received late in the previous financial (2011-12) and mostly spent in 2012-13.

Notes:(1) The targets were derived from the 2012-13 Budget Papers (Volume 2, Part 13).(2) As specified in the Financial Statement section of this report.


Key Performance IndicatorsTable 3: Summary of non financial performance (Key Performance Indicators) for 2012-13

Indicator Target(1) Actual(2)

Explanation of variance

Outcome and effectiveness indicators

Outcome – Housing eligible Western Australians

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

0.84 0.64 The Actual ratio was lower than the Target ratio primarily due to the lower than expected demand on the Bond Assistance Loan Scheme. The unexpected change in vacancy rates and affordability effectively excluded many low income households from movement within the marketplace and, consequently, reduced the demand for bond assistance.

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

134 weeks 132 weeks

Effectiveness indicator 3:The extent to which the Government Regional Officers’ Housing is responsive to the provision of housing to meet the needs of eligible Western Australian Government Employees

95% 94%

Notes:(1) The targets were derived from the 2012-13 Budget Papers (Volume 2, Part 13.)(2) Further detailed explanation in the audited Key Performance Indicators 2012-13 section of this report.(3) Calculated as the average wait time in weeks for applicants housed.


Indicator Target(1) Actual(2)

Explanation of variance

Services and efficiency indicators

Service 1 – Rental Housing

Efficiency indicator 1:Operating cost per rental property

$14,397 $14,766

Service 2 – Home loans

Efficiency indicator 2:Operating cost per current loan account

$1,367 $2,078 The higher operating cost per current loan account was due to the lower than anticipated number of active home loans. Changes to lending criteria did not see the demand for loans increase until later in the financial year than expected.

Service 3 – Land

Efficiency indicator 3:Operating cost per lot developed

$14,066 $24,367 The variance is due to a number of projects not meeting their lot development completion targets. This was principally due to not receiving statutory clearances within the anticipated timeframes, including native title clearances, environmental clearances and statutory planning approvals.

Service 4 – Government Regional Officers’ Housing

Efficiency indicator 4:Operating cost per property

$29,398 $31,151 The variance is primarily due to the increasing number of leased properties, predominantly in the Kimberley and Pilbara regions, where rental costs are generally higher than the rest of the State.

Notes:(1) The targets were derived from the 2012-13 Budget Papers (Volume 2, Part 13.)(2) Further detailed explanation in the audited Key Performance Indicators 2012-13 section of this report.

Table 3: Summary of non financial performance (Key Performance Indicators) for 2012-13 (continued)


Agency Performance

This section reports on our organisational performance for the year.

Stella Orion, Success: (L-R) Grahame Searle, Director General, Housing Authority and John O’Neill, Senior Site Manager, Goodland Building Company


Delivering our visionThe Authority is firmly focused on opening doors to help Western Australians progress towards home ownership and to deliver on the State Government’s Affordable Housing Strategy.

Over the past 100 years, the Authority has made an enormous contribution to the economic and social development of Western Australia. This has been achieved through providing housing for a growing work force needed to build the State’s economy, helping more Western Australians realise their dream of home ownership and by housing those in need for the duration of their need.

Today, the Authority works to find innovative ways to increase the availability of affordable housing options in the State, particularly for those on low to moderate incomes.

Our activities range from building public and social housing to developing new land releases, assisting low to moderate income earners into home

ownership, constructing housing in remote and regional Aboriginal communities, and providing housing for the increasing workforce in the North West.

This section articulates our achievements in delivering on the Authority’s mission and vision. The Authority is reporting on its performance, according to activity areas that demonstrate support for the Affordable Housing Strategy:

> Land and Housing Supply;

> Affordable Rental;

> Affordable Home Ownership; and

> Social Housing.

Affordable housing, The Alcove at Meadow Springs

Snapshot


One on Aberdeen is an exciting new residential apartment development that offers the very best in affordable living in a premium inner city location.

Construction of the 161 residential unit and commercial development in the heart of Perth commenced in October 2012 and highlights how partnering with the private sector continues to provide more affordable housing to Western Australians.

This partnership represents an innovative departure from how the Authority has done business in the past. The Authority used its land assets to help the private sector to finance this project. From a piece of land worth around $6 million, the Authority and its partner will deliver a $73 million commercial/residential project in a prime inner city location.

The development offers a range of housing including social and affordable rentals, traditional rental and home ownership and shared home ownership opportunities. The location is in great demand and will not only provide residents with easy access to a range of cafes, restaurants, cultural and entertainment venues, it is also located close to the new Northbridge City Link.

One on Aberdeen is a 13 storey building comprising of 161 one and two bedroom apartments, including a selection of split-level residences plus ground floor commercial space. The majority of these units have been pre-committed off-the-plan.

Through working in partnership with the private sector on unique developments such as One on Aberdeen, the Authority builds economic and social prosperity by enabling Western Australians to have a place to call home.

Artist impression

One on Aberdeen opening doors to affordable inner city living


Land and Housing Supply With the vision of opening doors for more people, the Authority is leading a vital change to the supply of affordable housing in Western Australia to deliver long term benefits to the State. The Authority is striving to do things differently through partnerships and diversifying housing products.

The Authority actively seeks new partnership opportunities, whether that is with State and Local Government agencies, land and housing developers, builders, institutional investors, resource companies, Aboriginal groups and other stakeholders focused on delivering affordable housing. These opportunities assist the Authority to build on its current products, form new relationships and open up markets to create housing opportunities for Western Australians.

The Authority looks to unlock new opportunities, including:

> innovative and sustainable housing solutions and construction techniques;

> new ways of funding and delivering housing projects; and

> forming partnerships with stakeholders seeking to deliver affordable housing outcomes.

Stella Orion, Success


Supply of landThe Authority supports land affordability and provides a return to the Authority through its sales activities to help fund social housing programs while retaining some of the lots it develops for social and community housing programs.

The Authority undertakes the following land activities:

> Broad acre land development – land development programs conducted either by the Authority or in partnership with the private sector;

> Urban Renewal Program – the redevelopment of existing, high public housing presence locations to provide more sustainable suburbs; and

> Urban Redevelopment Program – infill development programs or rezoned sites in existing suburbs.

The Authority continues to provide affordable land in the lower quarter of the market. In 2012-13, 43.5 per cent of lots sold were in the lower quartile (Table 4) and 86 per cent at or below the median price.

During 2012-13, land sales increased by 30 per cent from 1,521 to 1,978, while the Authority developed 1,777 lots (Tables 5 and 6).

Table 4: Comparison of performance of lot sales in the lower quartile between 2011-12 and 2012-13

2011-12 2012-13

Lots(1) 232 663

Percentage 23.2 43.5

Note:(1) Only individual residential sales are taken into account.

Table 5: Land sales (Lots sold)

2011-12 2012-13

Joint Ventures 1,339 1,776

Urban renewal 93 29

Urban Development and Redevelopment

89 173

TOTAL 1,521 1,978

Table 6: Yield in lots

2011-12 2012-13


Urban renewal 144 111

Urban Development and Redevelopment(1)

380 163

TOTAL 1,789 1,777

Note:(1) The Urban Redevelopment Program reports yields on the number of dwelling unit equivalents.


Snapshot

32

Living Space at Cockburn Central is a unique and innovative mix of affordable rental and home ownership options.

Living Space is one of the first multi-storey residential developments in Western Australia to be connected to the National Broadband Network and one of the largest six-star energy rated residential developments in the State.

Living Space is a transit oriented development located only 200 metres from the Cockburn train station and close to a major shopping centre, as well as education and the Murdoch health precinct, which includes the new Fiona Stanley Hospital.

The development offers a range of affordable rental, social rental, commercial rental, and home ownership opportunities which is designed to be financially sustainable over the long term. A number of the units were offered for sale through the Authority’s Opening Doors Affordable Sales Program, with a large proportion of these being offered under the shared home ownership scheme.

Living Space is a five building, 136 unit mixed residential and commercial development comprising one, two and three bedroom units.

A key innovation is the allocation of 52 units for a trial affordable rental program for key workers in the local area who meet certain income and asset eligibility criteria.

Living Space results from a successful partnership with the private sector and demonstrates the significant affordable housing outcomes that can be achieved through innovative cooperation.

Innovative development delivers affordable housing

Cockburn Central, Cockburn

http://www.cockburncentral.com.au/


Land developmentLand development – Partnering with the private sector

The Authority has a long and successful history of working with the private sector to deliver residential land to the market. Collaborating with industry partners through its joint venture land developments, the Authority continues to build capacity and capital to enable it to support sustainable communities.

There were a number of highlights in 2012-13 demonstrating the effectiveness of these partnerships.

Brighton

Brighton is a fully integrated and environmentally responsible, master planned estate, located 40 kilometres from the Perth CBD and just minutes

from the beach. It is one of the largest residential estates in the expanding north west corridor. Brighton is a joint venture between the Authority and Butler Land Company and is managed by Satterley Property Group.

Brighton continues to provide a variety of housing lots, with 304 lots produced and 412 settlements for the year. Upon completion, the community at Brighton will be home to more than 25,000 people housed in more than 7,600 dwellings through the creation of 5,250 lots.

Construction of the district town centre commenced linking Butler Boulevard from Marmion Avenue to the proposed Butler train station.

A major retailer, Masters Home Improvement, commenced works on the site it purchased last year on the corner of Marmion Avenue and Butler Boulevard, and the opening is planned in 2014. This will transform the district town centre into a regional retail and transport precinct.

Subdivision and statutory approvals were obtained for beachside land holdings at Jindalee which represents the final development from this estate. Earthworks and civil works have commenced and these land holdings will provide a source of lots for a further 10 years.

Dalyellup

Dalyellup Beach is a joint venture between the Authority and Home Satterley, managed by the Satterley Property Group and is located just seven

minutes south of Bunbury and 10 minutes from Capel. The focus of Dalyellup Beach is to create a clean, attractive and relaxing environment by preserving and providing access to the nearby beach and tuart forest. Dalyellup Beach offers diversity in homesites available from homestead and traditional lots to smaller lots, cottage lots, and oceanside homesites.

The first lots from Stage 19 were released in May 2013. This included smaller rear-loaded lots priced from $105,000. Demonstration homes will be constructed on three lots to display the smaller product. Other highlights for the estate included the sale of the regional Telethon Country Home and the construction of the East Dalyellup Primary School, which opened in January 2013. Settlement of a district centre site to Woolworths was completed in June 2013, which will significantly improve amenity and commercial activity in the local area.

http://www.satterley.com.au/brighton/

http://www.satterley.com.au/dalyellup-beach/


Ellenbrook

Located in the City of Swan and 21 kilometres north east of the Perth CBD, Ellenbrook is planned as a town of self-supporting villages, each offering its own

individual style. Ellenbrook is a joint venture between the Authority and Morella, and is managed by LWP Property Group.

Phase 3 of the Ellenbrook town centre commenced in 2012 and is well progressed. The Parkway extension and home improvement precinct have been completed. Masters Home Improvement is now operational and construction work has started on the Bunnings building. The St John Ambulance site has been constructed and settled. United Petrol is expected to commence work on a petrol station in 2013-14. These future developments reflect the maturity of the suburb and the needs of the local community for a wider range of services.

Banksia Grove

Banksia Grove is a joint venture between the Authority and Banksia Grove Nominees Pty Ltd, located

30 kilometres north of the Perth CBD, and approximately 5 kilometres from Wanneroo. It comprises 338 hectares and when complete will be home to some 12,000 residents housed in 4,000 homes. The estate features a town centre based on ‘main street’ principles that will incorporate retail, commercial and leisure activities within easy access.

The Joint Venture has delivered a number of 7.5 metres frontage cottage lots, and some 15x20 metre lots to maintain diversity of product and increase the range of land within the development.

Harrisdale

Located 19 kilometres south of the Perth CBD, Harrisdale Green is a contemporary, landmark urban village that will ultimately comprise up to 500 new homes. The

residential development will also include a local retail and community centre with landscaped public space and small scale offices and showrooms. Harrisdale is a joint venture between the Authority and Cedar Woods.

The Commonwealth’s Housing Affordability Fund, administered by the Authority, continues to provide financial incentives for eligible purchasers within the Harrisdale Estate. To date, 85 purchasers at Harrisdale have qualified for the Housing Affordability Fund payment, with a total of $1.59 million in payments processed.

Seacrest

Seacrest is a joint venture between the Authority and Springdale Holdings Pty Ltd, and managed by Humfrey Land Developments. Seacrest is a unique project in

the Mid West town of Geraldton. The project commenced in 2000 and comprises the development and sale of residential land along with the provision of land for schools, recreation and commercial facilities.

Construction of 71 lots in Stage 16 was completed and the release of lots has commenced with detailed design for the final Stage also being completed. Construction of Wandina Primary School commenced in March 2013 with completion due in time for the start of 2014 school year and the Turtle Grove Child Care Centre opened in January 2013. These facilities will add to the future development of the local community.

http://www.lwppropertygroup.com.au/our-communities/ellenbrook/home

http://www.banksiagrove.net.au/

http://www.harrisdalegreen.com.au/

http://www.hld.com.au/forsale_seacrest_estate.php


Oyster Harbour

Oyster Harbour is a joint venture project between the Authority and Lowe Pty Ltd and is project managed by Heath Development. The development is located

6 kilometres north east of Albany overlooking Oyster Harbour and the King River, with a wide range of lots and housing options.

The Oyster Harbour project realised 26 sales for the year. Stage 2A is currently under construction and will provide 33 lots and a new home display centre, with pre-commitments already received from seven local builders. The City of Albany approved the rezoning of the village centre to allow for the eventual development of 5,000 square metres of retail and commercial lettable space. The Joint Venture also constructed a $3 million sewer pump station under an arrangement with the Water Corporation, completing major infrastructure for the estate. The Joint Venture and the City of Albany also completed the upgrading of Lower King Road and provided a new roundabout entry to the estate.

Sienna Wood

Sienna Wood is part of a major land development in the south east corridor of the

Perth metropolitan area. Sienna Wood is located only minutes from the new Haynes shopping centre and is easily accessed by the Tonkin Highway. Sienna Wood will be developed over the next 10 years around the area’s natural landscape and waterways, including the Wungong River. Sienna Wood is a joint venture project between the Authority and Stockland.

The Sienna Wood Joint Venture at Hilbert has realised 86 sales to date, with the average lot size currently at 454 square metres and an average selling price of $179,406. Stage 2 realised 54 sales, while practical completion of Stage 3 was reached in June 2013. Practical completion of Neerigen Brook was reached in May 2013.

The estate is expected to yield over 2,800 lots, a new town centre and 97 hectares for public open space, including active reserves, local parks, landscaped corridors and wetlands, two primary schools and a community centre.

Wellard

Located 35 kilometres south of Perth, The Village at Wellard is the first dedicated transit orientated development in Perth’s southern corridor and features

a pedestrian friendly village centred around the Wellard train station on the Perth to Mandurah railway line. The Village at Wellard is a joint venture between the Authority and Peet Limited.

The Wellard Joint Venture has realised 367 sales. Construction of the Wellard Community Centre commenced in September 2012, and is expected to be completed in September 2013. In September 2012, the Authority also formally offered Lots 211 and 535 to Peet Limited for the construction of a retail site at the village centre. The anticipated completion date is June 2015. A record number of first homebuyers took advantage of Government initiatives for affordable housing at Wellard which includes shared equity opportunities for low to moderate income families and purchasers.

http://www.oysterharbour.com.au/

http://www.stockland.com.au/residential/wa/sienna-wood-about-sienna-wood.aspx

http://www.thevillageatwellard.com.au/


Urban renewal and developmentUrban renewal

The urban renewal program aims to redevelop older public housing estates to create more attractive living environments.

New North

The New North involves the revitalisation of the suburbs of Balga, Girrawheen, Koondoola and Westminster. The Perth Metropolitan New North Project has expanded to include other suburbs such as Nollamara, Innaloo, Bedford and Doubleview. During the year, 68 dwellings were refurbished and sold to the general public, mostly to first home owners and owner occupiers. One hundred and eleven properties were also refurbished and returned to the Authority’s public housing program.

Quattro – Queens Park

Quattro – The New Queens Park has been popular with purchasers and has seen the transformation of the area. This successful urban renewal project has completed its single lot development. Sales of final sundry lots and the sales office site are in progress. The final stage of Quattro will be the construction of the Whitlock Road site that will deliver an 86 unit development consisting of one, two and three bedroom units.

Stellar Living, Lakelands

http://www.satterley.com.au/the-new-north/

http://www.quattroqueenspark.com.au/


Snapshot

Home ownership in South Hedland is set to receive a significant boost with the impending first release of 38 residential lots in the Osprey Estate.

Over the next five years, more than 7,000 new dwellings will be delivered through LandCorp, the Authority and the Department of Regional Development.

The housing shortage impacts on businesses and local workers employed across a range of industries. Osprey Estate lots and the key worker village will provide much needed supply into the housing market in South Hedland.

The lots, which range in size from 300 to 600 square metres and priced from $260,000, will be offered for sale, marking the beginning of a 165 hectare estate comprising a primary school and public open space.

Buyers of the first lots will need to meet strict residency requirements, with the Authority targeting sales at owner-occupiers. Following this initial release, there will be subsequent releases of duplex lots as well as single, cottage and group sites. House and land packages will also be made available.

The availability of affordable, appropriate and attractive accommodation for key workers supports the economic development of Western Australia. The estate includes 12 hectares for more than 290 affordable rental dwellings for key workers. This will enable employees to be able to afford to live in the community they support and employers can attract and retain the staff they need, which helps to build a sustainable community.

Osprey Estate demonstrates the Authority’s commitment to supporting the economic and regional development of the State, through enabling people living and working regional areas to have a place to call home.

Boost for South Hedland home ownership

Osprey Estate, South Hedland

http://www.southhedlandnewliving.com.au/land-for-sale


Urban development

The urban development program develops vacant broad hectare land for residential building purposes in both metropolitan and regional areas.

Golden Bay

The Golden Bay land development is located between Rockingham and Mandurah. The Authority has engaged Peet Ltd as the project manager. When complete, the development will create more than 1,700 lots, incorporating a proportion of affordable product. It is expected that the whole development will be completed by 2020. The Authority has undertaken the first two stages of this development (292 lots) and sales have progressed well. Approximately 160 settlements were achieved as at 30 June 2013. Sale prices range from $120,000 to $250,000.

In the first stage, 62 lots were allocated to the Authority’s affordable built form initiative. The subsequent completed home packages were sold as either full or shared equity sales.

Kwinana

The Kwinana project involves the development of the Authority’s broad hectare land holdings in Parmelia, Bertram, Orelia and the Kwinana town centre. The land has been constrained by the need to obtain environmental clearances which has delayed development of land. Planning is advanced to facilitate release to the market in 2014-15.

Albany

This development, being marketed as Clydesdale Park, will create 437 lots in Albany. To date, 207 lots have been developed. Sales prices range from $82,500 for cottage lots to $120,000 for larger traditional lots. In 2013-14, the Authority will progress the construction of nine homes as part of the affordable built form initiative.


http://www.goldenbay.com.au/

http://www.landport.com.au/getdoc/83add463-af75-4b97-9573-0827519832c2/.aspx

http://www.youtube.com/watch?v=KZ3Kl480Gyg


Land planning and acquisitionsThe Authority has a strategic approach to future land development involving acquisition of land parcels and planning future releases. Continuity in the supply of land for affordable housing relies on thetimely acquisition and planning of land development activities and the development of strategic land parcels.

Keralup

Keralup is a 4,000 hectare parcel of land owned by the Authority, located between Rockingham and Mandurah. The development has the potential to yield 30,000 lots and house up to 90,000 people in a project that will span up to 50 years.

In November 2012, the Authority was successful in securing a rezoning to urban deferred for the first stage of the project (referred to as Keralup West) with a potential yield of 1,100 lots. The Authority is now progressing planning approvals for Keralup East (3,900 hectares) with a view to securing a rezoning to urban deferred on this portion of the land holding in 2016.

Land acquisitions

During the year, the Authority invested more than $80 million in land acquisition to meet its immediate and longer term needs. This includes the final instalment for the acquisition of a 58 hectare landholding in Yanchep acquired in 2011-12.

Key acquisitions included titled lots for immediate use, through to broad acre strategic parcels. A site of approximately 60 hectares was acquired at Yanchep, which will assist the Authority to maintain the continuity of land supply in the north west sector of the Perth region.

The Authority also recently purchased the Jindowie development in Yanchep as part of its focus on offering a diverse range of housing options to the community. The Jindowie project adjoins an existing Authority landholding and will offer new opportunities for the local community and future owners.

There was also a focus on consolidating land holdings within the Authority’s redevelopment projects of Bentley, Ferndale, Beachlands (Geraldton) and Halls Creek.

Return to the Authority

In 2012-13, the land development activities of the Authority produced a net cash return of $41 million back to the Authority. This return provides part of the funding for the Authority to perform its social housing activities (Tables 7 and 8).


An additional objective of the Authority’s land functions is to create and retain some lots for use in its other programs. During 2012-13, 78 lots were retained from the Authority’s various joint venture, urban development and urban renewal programs.

Table 7: Revenue by program

2011-12 $’000

2012-13 $’000


Urban renewal 31,266 7,910


14,256 27,915

TOTAL 181,919 193,824

Table 8: Development expenditure by program

2011-12 $’000

2012-13 $’000


Urban renewal 10,439 21,280


8,917 18,007

TOTAL 75,953 91,131

Construction, spot purchase and refurbishment

The Authority also purchases established dwellings from the market to meet its land and housing program objectives (Appendix 1: Housing Statistics, Table 20).

One on Aberdeen sod turning ceremony: (L-R) Nick Di Latte, Managing Director and Chief Executive Officer, Diploma Group; Grahame Searle, Director General, Housing Authority; and Hon Terry Redman MLA, former Minister for Housing


Snapshot

41

The Authority and the City of Canning are working in partnership to regenerate approximately 25 hectares in Bentley (surrounding Brownlie Towers) into a vibrant community, providing new amenities and services and offering a diverse range of housing options.

The development will deliver at least 1,500 new dwellings, as well as a revitalised multipurpose civic and community facility, a range of diverse and contemporary open public spaces and a commercial and retail precinct.

The latest innovations in housing design construction and urban planning are being used, with a strong focus on community, sustainability and housing affordability.

In June 2013, a community forum was held with 80 people attending. Consultation occurred on all the key aspects of the development including the proposed commercial and retail precinct, built form options, the location and compositions of parks and open space, movement networks and community facilities. Feedback from the community forum has been incorporated into the local structure plan.

Bentley Regeneration represents an important opportunity to demonstrate how both state and local governments can work cooperatively to deliver strategic urban infill in accordance with Directions 2031 and Beyond and the Affordable Housing Strategy.

Community interest in Bentley Regeneration project

Housing Authority staff members reviewing the plans

http://www.housing.wa.gov.au/aboutus/projects/brownlie/Pages/default.aspx


Affordable RentalThe Authority supports access to affordable rental housing opportunities for low to moderate income households through:

> the provision of incentives to owners and landlords to make properties available;

> direct investment in affordable rental projects; and

> the provision of direct assistance to consumers to support them to obtain rental accommodation.

National Rental Affordability Scheme (NRAS)NRAS is a long term partnership between the Commonwealth Government and the states and territories, to invest in affordable rental housing to significantly increase the supply of new affordable rental dwellings across Australia. NRAS offers financial incentives to persons or entities such as the business sector and community organisations to build and rent dwellings to low to moderate income households at a rate that is at least 20 per cent below the market value rent.

This year Western Australia increased its investment in NRAS by 1,000 incentives and will now fund a total of 7,000 incentives for new homes under the scheme. As at 30 June 2013, 1,427 homes had been delivered. By 30 June 2016, the remaining 5,573 homes are expected to be completed. These properties will provide a rental discount of at least 20 per cent for people on low and moderate incomes struggling in the rental market including in the State’s North West.


http://www.fahcsia.gov.au/our-responsibilities/housing-support/programs-services/national-rental-affordability-scheme


Mixed tenure developmentThe Authority is committed to the development of balanced, sustainable communities through encouraging new housing developments which mix affordable housing alongside market-priced housing.

Cockburn Central is one example of this type of mixed rental development. It provides a range of integrated tenure options that combine privately owned dwellings with broader integrated rental facilities designed to cater for low and moderate income households. This development has provided 52 units for rental at 20 per cent below the market rental value.

Bond assistanceThe Bond Assistance Loan Scheme assists eligible Western Australians to access the private rental market. It provides an interest free loan for private rental bonds and two weeks’ rent in advance.

In 2012-13, $8.732 million was made available to Western Australians to enter the private market through the provision of 7,786 private rental bonds and Private Rental Aboriginal Assistance Loans (PRAAL). These figures include new bond loans; rent in advance assistance; reimbursements to bond applicants; and PRAAL applicants.

Expenditure on bond loans

The total expenditure and number of new bond loans includes:

> 7,429 interest-free bond loans providing access to the private rental market worth a total of $5.244 million.

> 7,328 two weeks rent in advance loans worth a total of $3.041 million.

> $256,752 to cover reimbursement of pre-paid bonds for 328 bond applicants, of which 308 also received two weeks rent in advance to the value of $153,673.

> $36,944 to 29 clients for the PRAAL scheme.

Bond loan accountsIn 2012-13, an average of 17,311 loans, were managed per month with a value of $10.454 million (as at June 2013). During the year, $9.042 million was repaid compared to $10.917 million repaid in 2011-12. Direct deductions from Centrelink benefits continued to be the favoured arrangement with 62 per cent of all repayments made using this method.

http://www.housing.wa.gov.au/housingoptions/rentaloptions/bondassistance/Pages/default.aspx


Rental Pathways SchemeThe Authority’s Rental Pathways Scheme is an opportunity for home owners to have long term, stable tenants in their investment properties. Home owners receive various incentives and guarantees for participation in the scheme – it is a way to ensure the property continues to provide a return on investment.

The scheme assists eligible low to moderate income tenants to transition from public housing into private rental accommodation. The scheme aims to provide tenants with the tools to secure and maintain a successful tenancy in the private market. The benefits for home owners are many and varied, including guaranteed rental income for the term of the lease. This scheme is covered in more detail in the Agency Performance – Social housing section of this report.

Housing for WorkersThe State Government’s Royalties for Regions initiatives aim to foster long term regional development in Western Australia. Royalties for Regions funding is being used to deliver worker housing and affordable rental accommodation, particularly in high demand locations such as the North West. These projects are expected to provide 596 housing opportunities for regional workers.

Key worker and service worker

The State Government acknowledged the impact of high housing costs in regional areas through funding allocation of $373.1 million has been approved over six years (2011-12 to 2016-17). The Royalties for Regions – Housing for Workers initiative will deliver increased affordable housing opportunities for key workers in regional Western Australia. To date through this initiative, the State Government has approved projects in Karratha, Port Hedland, Newman and the Avon Valley.

Pelago East Stage 2, Karratha

The Authority has pre-purchased 50 units in Stage 2 of the Finbar Pelago East Development, including 29 one bedroom and 21 two bedroom units. The Authority’s contribution to Stage 2 has expedited the commencement of the entire 178 unit development. The Authority’s units will be used for GROH, affordable rental accommodation and home ownership opportunities. The project is scheduled to be completed by 31 December 2013.

http://www.housing.wa.gov.au/investorsandpartners/rps/Pages/default.aspx

http://www.housing.wa.gov.au/investorsandpartners/swa/Pages/default.aspx


Osprey Key Worker Village, South Hedland

A Request for Proposal was issued to the market in February 2012 seeking private sector partners to design, construct and manage a 293 dwelling key worker lifestyle village on 12 hectares of land within the Authority’s Osprey Estate in South Hedland. Fleetwood Pty Ltd was the successful proponent for the project.

When fully operational the village will house up to 300 key workers at a rental of around 40 per cent below the market rate for similar one, two and three bedroom dwellings. The development will be staged to bring accommodation online at the earliest point in time. This will see the first dwellings scheduled for occupancy in October 2013. The project is on track to achieve its completion target of 31 December 2013.

Newman Service Worker Housing Package

The Newman Service Worker Housing Package will provide 10 two bedroom/two bathroom dwellings for local service workers employed by small and medium businesses in Newman. This project has an anticipated completion date of 30 June 2014.

Avon Valley, Northam

In partnership with the Avon Community Development Foundation, the Authority proposes to address the shortage of housing for key workers by constructing 18 dwellings in Northam. Negotiations with the Avon Community Development Foundation around a funding agreement are being finalised. It is anticipated the project will commence in the second half of 2013.

Hon Bill Marmion MLA, Minister for Housing, at the Osprey Key Worker Village, South Hedland


Snapshot

Small business owners in Port Hedland and their employees have embraced the State Government’s affordable housing project, referred to as the Hedland 125 Service Worker Intervention Package.

The project, funded through Royalties for Regions by the Department of Regional Development, is an initiative of the Authority that has already delivered 116 of the 125 houses planned to service workers and their families.

Lesley, owner of panel beating firm Advanced Panel and Paint in South Hedland, was the first small business owner to be allocated a house under the project and said the project helped to attract skilled workers to the community.

“Being successful in securing affordable housing for our employee has enabled us to move forward with confidence,” Lesley said.

“Service worker housing is badly needed in Port Hedland and we are just so grateful to be successful in the first round.”

With Port Hedland and South Hedland expanding so quickly over the past few years, the town is struggling to meet housing demands. The lack of appropriate and affordable housing in Hedland has also caused a lack of service workers in the town such as shop assistants, hospitality staff and hairdressers.

The Authority, in conjunction with government and private sector partners, continues to build economic development in regional Western Australia by enabling key service workers to have a place to call home.

Small business benefits service worker housing in Port Hedland

Lesley and Yabanja, Advance Panel and Paint, Port Hedland

http://www.housing.wa.gov.au/investorsandpartners/swa/hedland/Pages/default.aspx


Government workersGovernment Regional Officers’ Housing (GROH)

The GROH program provides appropriate government employee housing across regional Western Australia. The Authority delivered a high number of new properties in 2012-13 through capital acquisitions, construction and leasing programs. GROH also continued its extensive refurbishment program. In 2012-13, $4.730 million was spent on property refurbishments to improve the amenity of some properties and extend their economic life.

As at 30 June 2013, the Authority managed a total of 5,773 units of government regional employee housing. Of these, 3,286 units were owned by the Authority and 2,487 units were leased from the private market. Leases represent 43 per cent of GROH’s rental portfolio.

In 2012-13, more than $50 million was spent on capital works, including projects funded through Royalties for Regions. Procurement of 132 properties commenced and 105 units of accommodation were completed during this financial year.

Demand for government employee housing remains strong particularly in the North West. Throughout Western Australia the Authority delivered 400 new units of government employee housing with $200 million in funding from Royalties for Regions Program (Figure 4).

37Great Southern 15

South West

31Goldfields

47Mid West/Gascoyne

105Pilbara

110Kimberley

55Wheatbelt

Figure 4: Dwellings completed in each region (Royalties for Regions) as at 30 June 2013

http://www.housing.wa.gov.au/housingoptions/rentaloptions/govemployeehousing/Pages/default.aspx


West Kimberley Regional Prison Project

The West Kimberley Regional Prison in Derby was completed and commissioned in November 2012. The prison has significantly increased the need for government services and, in turn, government housing within the town. In response to this, the Authority has built 80 new properties since 2010 and leased 66 from private developers to meet this demand. The additional housing has assisted in revitalising the historic town of Derby.

Pelago West, Karratha

As part of the drive to attract and retain government and key workers in regional areas, the Authority has entered into purchase arrangements to deliver ‘high-amenity lifestyle’ accommodation.

Pelago West is an eight storey residential and commercial development forming part of the Karratha CBD revitalisation and is consistent with the Royalties for Regions - Pilbara Cities initiative. The development offers 114 apartments and commercial spaces, a shopping precinct, swimming pool and gym. The Authority has purchased 12 units and leased a further 10 units.

Non government organisations (NGO)

The NGO strategic housing intervention package provided $35 million to deliver 58 houses for NGO workers in the north of the State. Royalties for Regions funding was received by the Authority during 2011-12 to meet this commitment. The houses are located in eight communities identified as having difficulties in providing affordable housing and where NGO services are constrained or are at risk of being withdrawn due to shortages in appropriate worker accommodation.

At the end of the financial year all of the 58 houses for the initiative were allocated to 34 NGOs. Houses have been provided in Broome, Derby, Halls Creek, Kununurra, Karratha, Newman, South Hedland and Roebourne.

http://www.housing.wa.gov.au/investorsandpartners/ngos/Pages/default.aspx


Affordable Home OwnershipThe Authority is a major builder, home financier and land developer in Western Australia. There are a range of products available to assist Western Australians into home ownership. These products include:

> Shared Home Ownership Scheme;

> Land and house sales; and

> Keystart Home Loans.

Lee, Paula and baby, home owners, Ellenbrook

Shared Home Ownership SchemeIn a key initiative under the State Government’s Affordable Housing Strategy, the Authority is supporting home ownership outcomes. The Shared Home Ownership Scheme turns the dream of home ownership into a reality by reducing the initial cost of buying a home and the monthly cost of owning it.

The scheme assists purchasers by partnering with the Government to purchase a share in the home. The scheme is targeted at households on low to moderate incomes ($70,000 for singles and $90,000 for couples/family) and drives down costs for these purchases by taking up to a 30 per cent equity stake in each sale. By sharing ownership with the Authority, Western Australians are able to buy a home that previously they would not be able to afford as they only need to borrow at least 70 per cent of the property’s purchase price. Purchasers enter the scheme initially, but can ‘buy out’ the Authority’s share at a later stage.

Home owners under this scheme may apply for a SharedStart shared equity home loan through Keystart, a wholly-owned mortgage finance subsidiary of the Authority. This scheme since 2011 has already assisted 643 low income households to purchase a home via Authority co-ownership and Keystart home loans and created a $55 million asset for the State in the form of equity in co-owned properties.

http://www.housing.wa.gov.au/sharedstart/Pages/default.aspx

http://www.youtube.com/watch?v=fKYGTeBI4lI


The Shared Home Ownership Scheme has delivered new housing at a time of sustained undersupply, targeting people who would otherwise never achieve home ownership. The self-funded scheme has delivered significant economic and social benefits for the community, business and government.

The scheme has also seen the Authority integrate a range of its functions (land development, housing construction, mortgage finance and housing market policy and development) to deliver new, affordable housing in partnership with the private sector. The Authority uses an innovative approach to partner with the market to source land and construct housing stock.

Burraluba Yura Ngurra Workers Hostel for Aboriginal workers and trainees, Halls Creek


Call for submissionsThe Authority is working closely with the housing industry to significantly increase the supply and diversity of affordable housing in the State. A key initiative of the State’s Affordable Housing Strategy, the innovative Call for Submissions for Affordable Housing Program aims to increase the supply of affordable and social housing by utilising the Authority’s capacity to purchase and utilise its large land assets in partnership with private industry. Delivering diversity in the range of affordable housing available to home buyers in key areas of Western Australia remains a focus of the Authority.

The fourth round of the Call for Submissions for Affordable Housing Program was launched in October 2012, following the success of the original programs introduced in July 2011.

The Authority has been able to influence the market by expanding and supporting the volume and diversity of affordable housing to address long term housing needs and help underpin the State Government’s urban planning objectives.

Project 450The Authority has sourced land to deliver 450 dwellings refer to as Project 450 from the shared equity program, its own land developments and private developers across various locations in the Perth metropolitan area. Project 450 is a significant part of the Authority’s shared equity and affordable housing program and involves the delivery of a minimum of 450 affordable dwellings for sale to private buyers who qualify for a Keystart home loan. The majority of the dwellings are three bedroom/two bathroom and four bedroom/two bathroom, ‘standard – off the shelf’ detached houses. Several group sites will also be developed with two and three bedroom dwellings. Some of these properties will be offered under SharedStart.

Affordable salesThe Authority offers the opportunity for those who do not qualify for its Shared Home Ownership Scheme to buy a home at full market value. These affordable homes are made possible by working closely with industry to ensure properties being developed for sale to the public will be within the reach of as many people as possible.

The homes offered under full home ownership include apartments, units, or three and four bedroom family homes. These are located throughout the Perth metropolitan area and in some regional locations. There is a home to suit all tastes from established properties through to newly built houses and those offered off-the-plan.

http://www.housing.wa.gov.au/investorsandpartners/investmentbusinessopportunities/Pages/default.aspx

http://www.housing.wa.gov.au/housingoptions/homeownershipoptions/LandandHousing/Pages/default.aspx


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52

Since its launch in September 2011, the Opening Doors Affordable Sales Program has helped more than 750 families, singles and seniors on low to moderate incomes achieve the dream of home ownership.

Ashleigh, a young working professional bought a three bedroom/two bathroom house in Baldivis through the program.

“I love my new home and am so happy that I could become a home owner through the Opening Doors Program. I bought my house through a SharedStart loan offered by Keystart, and the whole process went very smoothly and also quite quickly for me,” she said.

“One of the best parts about the Opening Doors Program is that what I am paying now to maintain the loan, is still lower than what I would be paying in rent.”

“I’ve been telling many of my friends about the program as I think it is a great way for young people to get ahead and move into home ownership. I hope they can also benefit from what it has to offer.”

The Authority continues to partner with industry to ensure the supply of high quality affordable homes for the program giving more Western Australians the opportunity to own their own home.

Affordable sales surge ahead

Ashleigh, a new home owner through the Opening Doors Affordable Sales Program

http://www.openingdoorswa.com.au/


Keystart home loansThe Authority offers a range of home ownership products through its lending provider, Keystart Home Loans. Keystart is an initiative of the State Government to assist Western Australians into affordable housing.

The loan products help eligible Western Australians to buy their own homes through low deposit loans and shared equity schemes.

Keystart more than doubled the value of its portfolio of loans following the global financial crisis, as private lending institutions tightened lending criteria and Keystart, with the assistance of the temporary boost to First Home Owners Grants, was required to meet the significant demand gap at that time. The subsequent subdued lending activity in 2010-11 and 2011-12 was reversed in the 2012-13 financial year with increased demand due to changes to Keystart’s lending criteria in September 2012 resulting in 2,723 loans being approved valued at $852.4 million.

Keystart general

Keystart approved 2,035 new loans during the financial year (excluding shared equity properties), spread evenly between new construction and established properties with loans approved totalling $696.9 million.

SharedStart shared equity scheme

SharedStart shared ownership scheme assists first and subsequent homebuyers by partnering with the Government to purchase a share in the home. During the year, 478 properties were purchased with loans approved to the value of $114.4 million. Further information is available in this section under the Shared Home Ownership.

GoodStart shared equity scheme

GoodStart shared equity scheme assists public housing rental tenants and non first home buyers to own their own homes. During the year, GoodStart provided 25 Authority rental tenants and applicants on the Authority’s rental waiting list an opportunity to purchase a home with loans approved of $4.7 million.

Access shared equity scheme

Access shared equity scheme helps people with permanent disabilities to purchase a home. The scheme assisted 87 families with disabilities into home ownership with loans approved of $13.2 million.

Aboriginal shared equity scheme

The Aboriginal shared equity scheme assists Aboriginal and Torres Strait Islanders. The scheme helped 74 families make the transition from renting to home ownership with loans approved of $19.0 million.

Sole parent shared equity scheme

The sole parent shared equity scheme assists sole parents to refinance their current family home following separation or bereavement. The scheme helped 24 families purchase their own home with loans approved of $4.3 million.

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

http://www.keystart.com.au/

http://www.keystart.com.au/


Social HousingThe Authority provides housing options across the State for Western Australians most in need, during their duration of need.

The Authority’s social housing activities include direct housing provision through the public housing program and the construction of housing for the homeless, people with disabilities and the not-for-profit sector. The Authority also works in partnership with the community housing sector to provide rental housing for people on low incomes. Social housing and tenancy services are provided by the Authority through its network of local offices, CHOs, contracted Aboriginal Regional Service Providers, and contracted not-for-profit organisations.

The Authority also delivers housing and essential services to regional and remote Aboriginal communities in Western Australia. This includes tenancy management, employment related accommodation, short stay accommodation and remote area essential services.

Figure 5: Authority’s regional office locations

Regional boundary Offices

North Metropolitan Mirrabooka, Midland, Perth City

South Metropolitan Fremantle, Kwinana, Mandurah

South-East Metropolitan Cannington, Armadale, Victoria Park

Great Southern Albany, Katanning

South-West Bunbury, Busselton, Manjimup

Goldfields Kalgoorlie, Esperance

Mid-West Geraldton, Carnarvon, Meekatharra

Pilbara South Hedland, Karratha

East Kimberley West Kimberley

Kununurra, Halls Creek Broome, Derby

Wheatbelt Northam, Merredin, Narrogin


Tenancy managementThe Authority provides properties for low income households who typically pay no more than 25 per cent of their assessable income as rent, a figure well below market rent and operating cost. Tenants include seniors, families, low income earners, people with a disability, and people with complex physical or mental health needs. Properties are typically one, two or three bedrooms and a mix of houses and units (Appendix 1: Housing Statistics – Table 19). Properties are managed directly through a network of the Authority’s regional offices (Figure 5).

Improved waitlist management to help those in greatest need

The Authority is working to better target social housing to those in greatest need. Additional policy enhancements implemented during 2012 mean that waitlist applicants need to remain eligible for assistance throughout the entire time they are on the waiting list. To address the turnover of housing for priority applicants, the Authority has developed a new approach to assessing priority need that will enable people in greatest housing need to be identified and housed before other people with lesser need. The new approach is being trialled throughout 2013.

The joint waitlist amalgamation project involves the bringing together of the waitlists of CHOs with the Authority’s waitlist. The amalgamation was progressed through a staged approach during 2012-13. As a result of the amalgamation applicants for social housing will only have to maintain their listing with the Authority whilst having greater access to both public and community housing.

The waitlist statistics can be found in Appendix 1: Housing Statistics (Table 19).

Disruptive Behaviour Management Strategy

The State Government’s Disruptive Behaviour Management Strategy sets clearly defined standards of behaviour including processes and sanctions for handling disruptive tenancies.

The Authority applies the strategy within the provisions of the Residential Tenancies Act 1987. In July 2012, amendments to the Act came into effect and provide the Authority with specific powers to impose strong, consistent tenancy sanctions in response to disruptive behaviour and provide the opportunity to terminate a tenancy where these issues are ongoing.

The State Government also approved an additional $12 million over four years to appoint 35 disruptive behaviour management officers to expand the Disruptive Behaviour Management Unit. There are now officers in place across the State. The expanded team will ensure consistent management of disruptive tenancies. In 2012-13, a total of 13,333 complaints were received (Table 9).

Table 9: Summary of performance for 2012-13 relating to the State Government’s Disruptive Behaviour Management Strategy

Summary 2012-13

Total Disruptive Behaviour Reporting System complaints 13,333

Total first strikes issued 678

Total second strikes issued 274

Total third strikes issued 114

Total tenancies terminated as direct result of disruptive behaviour or where disruptive behaviour was present and the tenant vacated for other reasons.

63

http://www.housing.wa.gov.au/contactus/disruptivebehaviour/Pages/default.aspx


Housing Direct

Housing Direct provides a centralised contact service for tenants and members of the public for public housing, property maintenance, disruptive behaviour reports, homelessness advice, contractor inquiries and affordable housing options. In 2012-13, the contact centre worked to implement new maintenance strategies to improve the way the Authority delivers day to day maintenance to its clients. This has included introducing a dedicated reporting line for staff in the field to report critical maintenance to ensure health and safety issues are addressed effectively.

During 2012-13, the centre handled 214,658 inbound calls. The average waiting time experienced by callers was seven minutes.

Housing Direct was also instrumental in the coordination of tenant welfare checks during a heat wave in January 2013 and continues to assist other business units to improve customer service.

Maintenance

The Authority owns and carries out maintenance services to more than 40,000 properties across the State, including GROH, issuing up to 20,000 job orders a month. Maintenance is carried out on the Authority’s properties to ensure tenant safety, asset protection and the longevity of stock, with services managed by a central unit.

Through its quality assurance processes, the Authority ensures that maintenance related expenditure achieves maximum outcomes and drives efficient and cost effective practices. It also allows for the early identification of any trends that require monitoring that are in line with recommendations identified by independent external auditors.

The Authority delivers maintenance services to its 11 regions through a head contractor model, whereby the Authority deals with a small number of head contractors who then manage a multitude of subcontractors to deliver the services required. Head contractors’ performance is measured by the Authority via Service Level Agreements. These allow the Authority to identify performance issues on an ongoing basis and apply penalties if necessary.

In addition to normal business and maintenance programs being undertaken, a number of projects were completed in 2012-13, including the digital television switchover and the solar energy pilot program.

Relationships and agreements

To enhance services that assist tenants to manage their tenancies, the Authority maintains relationships with other government agencies, not-for-profit organisations and the private sector to achieve greater collaboration and information sharing through the coordination, development and management of Memoranda of Understanding and other service delivery contracts and agreements.

The process is managed to ensure strategic and operational outcomes are met through ongoing liaison and relationship building with a variety of stakeholders and provides input and representation into a number of programs and initiatives.

http://www.housing.wa.gov.au/currenttenants/tenanttoolbox/Maintenance/Pages/default.aspx


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The Authority is trialling measures that will bring down the cost of electricity for 400 public housing tenants, through the installation of solar panels. The program acknowledges the economic and environmental benefits including reduced electricity costs for the Authority’s low income tenants.

Under the $1 million pilot program, 1Kw solar photovoltaic (PV) systems are being installed on the roofs of selected Authority properties whose energy consumption will be analysed by the Public Utilities Office of the Department of Finance.

The Authority and Public Utilities Office are testing whether PV panels are an effective way of assisting clients. Power prices have risen over the last three years, while PV panel prices have reduced dramatically.

About 60 of the properties are home to people with disabilities who often require specialised electrical equipment and use more power during daylight hours.

Tenants involved in the scheme are expected to save between $250 and $350 per year on their electricity bills, while excess electricity will be fed back into the grid. The actual amount depends upon the roof aspect to the sun and whether the tenants are at home consuming power during the day.

Solar panel trial for public housing properties

Installer, solar panels


Residential Tenancies Act 1987 amendments

Amendments to the Residential Tenancies Act 1987 came into force on 1 July 2013 and effect the management of tenancies in both public housing and private rental markets.

To enable the Authority to deliver the reforms needed for the full implementation of the amended Residential Tenancies Act 1987, policies and practices were updated including:

> policy development to support the new social housing termination provisions in relation to eligibility and objectionable behaviour;

> flexibility to manage tenancies for 16 and 17 year olds;

> a new approach to bonds – where the Authority has elected to not charge a bond for the majority of new tenants under the revised bond provisions;

> new processes to manage abandoned properties and deceased tenants; and

> the development of new Tenancy Agreements.

Tenancy support services

Support services for tenants who are struggling to manage their tenancy are provided through the Supported Housing Assistance Program. The Authority provides funding to not-for-profit organisations to help tenants develop the knowledge, skills and capacity to meet their tenancy agreement obligations.

The Authority has developed a new framework, as a replacement for this program that focuses on outcomes rather than outputs and is consistent with the State Government’s Delivering Community Services in Partnership Policy. As of 1 July 2013, tenancy support services are delivered by NGOs under the Support and Tenant Education Program and are available across the metropolitan area and throughout regional Western Australia.


Appeals

The Authority’s two tier appeal process delivers a mechanism to review adverse administrative decisions affecting public rental housing tenants.

This process allows tenants to provide further information regarding their appeal and, at Tier 2, to have a face-to-face discussion with members of a Regional Appeals Committee. The committee consists of one Authority representative and two community members who are independent of the Authority. Table 10 provides statistics on appeals matters dealt with during 2012-13.

Table 10: Summary of appeal matters recorded in 2012-13

Appeal matters recorded 2012-13

Total number of appeals requests received 1,976

Total number of ineligible appeals 143

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

679

Total of unsuccessful appeals (ie. referred on to Tier 2)

1,187

Tier 2 Total of successful appeals (including partly successful)

437

Total of unsuccessful appeals 572

Note: > Not all appeals received in the 2012-13 reporting period are finalised in that period. Housing Authority Busselton office, South West region


Transitioning public housing tenants through the housing continuumTenancy compliance

The Authority is implementing a tenancy compliance monitoring and reporting framework to manage the eligibility of public housing tenants across the State. This framework supports the Affordable Housing Strategy by transitioning ineligible tenants from public housing, increasing the availability of public housing stock for those in greatest need.

The framework ensures assessments against eligibility criteria are consistently applied across the State. The process also allows for regional housing market influences to be taken into consideration during the decision making process. The objective is to achieve successful outcomes for both tenants and the Authority.

Tenants asked to vacate because they are no longer eligible for public housing are provided assistance to pursue a range of affordable housing options, including community housing, the Rental Pathways Scheme, NRAS, private rentals and home ownership through various schemes within the Authority and through Keystart.

During 2012-13, the Housing Pathways Unit received 326 referrals from the Tenancy Compliance Unit for tenants predominantly in the metropolitan area, and assisted 76 tenants to transition into affordable housing opportunities. In 2012-13, 265 properties were returned to stock for re-allocation to applicants on the Authority’s waiting list.

Rental Pathways

The Rental Pathways Scheme is a recent initiative that assists eligible tenants to transition from public housing into private rental accommodation. Tenants selected for the scheme exceed the public housing income limit, have the means to rent privately and have a good tenancy history. The Authority offers private investors incentives to participate in the scheme.

A pilot project has commenced under this scheme in the metropolitan area focusing on income eligible public housing tenants. To date, a number of real estate agencies and private owners have participated and there have been a number of successful transitions in 2012-13. During 2012-13 the scheme was extended to Albany and Bunbury. Growth of the Rental Pathways Scheme has been constrained by the competitive situation in the Western Australian rental market at present, which has affected the Authority’s ability to secure affordable rentals.

http://www.housing.wa.gov.au/investorsandpartners/rps/Pages/default.aspx


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Owning your own home became a reality for Susan through the Opening Doors Affordable Sales Program.

Susan, a former public housing tenant, became ineligible for public housing in 2012. “After six years working as a Library Assistant for the City of Busselton I was made full time, and as a result the Housing Authority advised that I was ineligible for public housing and would have to vacate my home,” she said.

“I accepted that my daughter and I had to move so that my property could be used for someone more in need.”

“Thankfully, the Authority referred me to the Housing Pathways Unit to help me transition from public housing.”

“The assistance and information they provided put me on the right path and got me where I am today,” she said.

Susan is now the proud owner of a three bedroom/two bathroom home in Busselton that she bought through the SharedStart scheme.

“My daughter and I are so happy to have this new home, and becoming a home owner has really given me a sense of freedom and control, as well as stability for us as a family. I am now putting money towards something I own that will be for our long term benefit.”

The Authority is committed to supporting our tenants transitioning from public housing to options suiting their circumstances. In Susan’s case she realised her dream of affordable home ownership.

Opening doors to affordable home ownership

Susan, a former public housing tenant, now a home owner through the Opening Doors Affordable Sales Program

http://www.openingdoorswa.com.au/


Social housing boostThe State Government is providing a much needed boost to social housing stock through the injection of $130 million over two years (2012-13 to 2013-14). This will fund the construction of an additional 433 homes. It will have the additional benefit of maintaining a level of activity for the residential construction industry and limiting the movement of skills to other sectors. Under this funding, 328 units were commenced in 2012-13, which exceeded the target of 303 units for the year.

Through all funding sources, a total of 377 units were commenced and 145 were completed for public housing across the State.

Crisis accommodation

The Authority’s Crisis Accommodation Program provided 669 properties across the State to assist people who are homeless or in immediate housing crisis. The program provides capital funds to build and buy residential premises such as women’s refuges, night shelters and emergency accommodation for youth. Properties are located in the metropolitan area and throughout regional Western Australia.

In 2012-13, the Authority commenced the construction of 19 units and completed 20 units under this program. Significant projects during the year included:

> completion of the Anglicare Youth Facility and Transitional Units in Spearwood comprising of six units;

> completion of the Tanderra Hostel in Millars Well, Karratha and an eight bedroom refuge for single men in crisis operated by the Salvation Army; and

> securing of land for an acute homeless shelter to house 10 people per night. Construction is to commence in 2013-14 and be completed in 2014-15.

Homelessness initiatives

The Authority will continue to provide housing services for people who are homeless or at risk of homelessness. Some clients self-refer and others are referred by support agencies. In 2012-13, 275 homes were provided for NPAH clients and a further 543 for other people who were homeless.

As this year represents the final year of the initial four year NPAH, the Auditor General undertook a review that was completed in October 2012. The review found that the program had met its funding and reporting requirements and that the lack of affordable housing remained a problem.

The Authority worked with the Department of Child Protection and Family Services to negotiate an interim NPAH with the Commonwealth Government to ensure the continuity of service provision for 2013-14 for people who are homeless. While the Department for Child Protection and Family Services funds not-for-profit agencies to provide support services, the Authority provides housing and has dedicated staff providing a link with the not-for-profit service providers.

The Authority will receive $4.1 million in 2013-14 as part of this interim NPAH. This is the Commonwealth’s contribution to State initiatives to deliver six transitional housing units and 21 units to increase social housing for people who are homeless.


Growing social housingWorking in partnership with the community housing sector

The Authority has invested significantly in the capacity of the community housing sector and these partnerships continue to produce real benefits for people on low to moderate incomes. Head leasing and ownership transfers under phase one of a Community Housing Growth Strategy has enabled the sector to develop, and to start leveraging stock to build more housing.

At 30 June 2013, a total of 8,795 units of accommodation (without the inclusion of the Hedland 125 Service Worker Intervention Package or growth properties) across the State were being managed by CHOs, State Government agencies and Local Government authorities under various arrangements.

The Authority has invested in the growth of community housing managed accommodation this year including capital works programs that delivered 364 units. A total of 1,833 units of public rental housing are leased to CHOs to manage through the Community Disability Housing Program (Table 11).

Fitzgerald Street social housing, PerthImage courtesy of JCY Architects and Urban Designers (the project Architects) and Damien Hatton (photographer)


Table 11: Summary of community housing accommodation for 2012-13

Community housing accommodation options Total units

Crisis accommodation programResidential premises for people in housing crisis such as refuges, night shelters and emergency accommodation for transitional housing

669

State community housing investment programLong term housing aimed at attracting equity contributions from CHOs to meet the housing needs of people on the Authority’s public rental waiting list

947

Joint venture housing programEnables organisations that have resources to contribute to the development of rental accommodation with the Authority to provide options for people on low incomes

2,066

Lease for Life joint venturesIn a resident funded joint venture, organisations and the Authority pool their resources to provide low income housing to seniors in Western Australia.

Eligible applicants are able to purchase a lease for life under this option

155

Community housing programCommunity managed rental housing for people on low to moderate incomes

1,620

Community disability housing programCommunity managed rental housing for people with disabilities and people with mental health issues

1,833

Asset transferThe transfers of property titles and grant funded units to CHOs for the purpose of building capacity within the community housing sector

1,505


To support the further growth and maturity of the sector, in June 2011, Housing Ministers across Australia agreed to a blueprint for a National Regulatory System for Community Housing Providers. All states, territories and the Commonwealth have been working to implement a nationally consistent regulatory system that aims to:

> protect government funding and equity in the sector;

> enhance investor and partner confidence; and

> improve tenant outcomes.

The Authority is working on an implementation strategy for Western Australia.

Asset transfer and growth outcomes

The Asset Transfer Program forms part of the Affordable Housing Strategy to increase the supply of social and affordable housing in Western Australia. Under this program, the Authority transfers the management of leasehold stock and the title of some freehold public assets to the community housing sector.

The Authority has transferred $392.858 million worth of public housing assets to community housing growth providers between 2010-11 and 2012-13. CHOs are then able to use any positive cash flow and leverage these assets to borrow funds and provide additional social and affordable housing. As well as the asset transfers that have already occurred, a further $205.979 million worth of public housing assets has been committed to between 2013-14 and 2014-15.

To date, eight CHOs have committed to a combined growth target of 491 units over the next 10 years. Forty-six units have been completed and a further 101 units are to be completed by June 2014. The number of growth units being delivered under this strategy will continue to increase as further properties are transferred to these organisations.

Victoria Street, Bunbury

A new lodging house in Victoria Street, Bunbury has been delivered by the Authority. The 37 bedroom lodging house, completed at a cost of $9 million provides accommodation for eligible single men and women seeking short to long term social housing assistance. The housing is the first of its type in the South West, with high demand for services and has been transferred to Access Housing Australia Limited who will manage the facility as part of the Authority’s commitment to build the capacity of CHOs.

Somersault development, Fremantle


Fitzgerald Street social housing, PerthImage courtesy of JCY Architects and Urban Designers (the project Architects) and Damien Hatton (photographer)


Fitzgerald Street, Perth

The construction of 49 dwellings and two commercial units in Fitzgerald Street, Perth was completed in early 2013. The complex comprises three blocks, 18 units for seniors, 11 two bedroom units for families and 20 one bedroom units for singles. There are three separate buildings organised around a central landscaped courtyard. This apartment complex is managed by Community Housing Limited, a registered growth provider with the Authority.

Designed by JCY Architects this housing development has been recognised with an award from the Royal Institute of British Architects (RIBA) in 2013 for architectural excellence and is now eligible for the Lubetkin Prize, awarded to the best international building by a member organisation in London in late 2013.

Apartments within the complex have been designed to respond to the conditions of the local climate and are orientated to maximise sustainable living solutions, including passive solar heating, cooling, cross-ventilation and day lighting strategies.

The project was funded through the State Community Housing Investment Program and represents a quality designed affordable housing project providing a variety of low cost, high quality apartments for a mixture of families, elderly, couples and single occupants.

Beach Street, Fremantle

The Somersault development (formerly known as Fort Knox) at Beach Street, Fremantle comprises 58 one bedroom apartments. Twenty-four of these, with a value of $9.08 million have been allocated to Southern Cross Housing Ltd. The development was purchased through the Commonwealth Stimulus Stage 2 funding and assists target groups, including shared equity home owners, social housing for seniors and affordable sales.

Oxford Street (Oxford Foyer), Leederville

Australia’s first purpose-built Foyer, based on an international housing model, is under construction at the Central Institute of Technology campus on Oxford Street, Leederville. The project is part of the NPAH and the ‘A Place to Call Home’ initiative. Oxford Foyer will provide accommodation and training to help 98 Western Australians between the ages of 16 and 25.

The Authority is funding 46 per cent of this $19.83 million project, with the Commonwealth Government funding the remainder. Lotterywest is also contributing $3.2 million for the fit-out of the building. The project is due for completion in October 2013. The Authority has partnered with Foundation Housing Ltd, who will manage the Foyer, to design and build the Foyer, while Anglicare will provide tenancy support services.


Snapshot

St Bartholomew’s House in Lime Street, East Perth is one of Australia’s leading social housing projects providing 148 people facing or at risk of homelessness with a place to call home.

The award winning $30.6 million development was opened by the Premier, Hon Colin Barnett MLA and then Commonwealth Minister for Defence, Hon Stephen Smith MP in late August 2012.

The Authority is proud to be the lead partner in this seven storey development, which provides essential accommodation and support services to Western Australians most in need.

The development which has been years in the making, comprises 54 one bedroom residential units, 12 one bedroom crisis units, 42 transitional housing beds and a 40 bed aged care facility. The building’s eco-design includes energy saving and sustainability initiatives.

This award winning development is an innovative homeless facility that allows tenants to move from crisis to transitional and eventually long term accommodation while remaining part of the same community. It is the first time a program of this kind and a homeless facility of this complexity has been attempted in Australia.

This unique integrated accommodation project was funded by the State Government, the Commonwealth Government and St Bartholomew’s and is built on land leased from the Metropolitan Redevelopment Authority. The development was designed by Formworks, built by Northerly Group and project managed by APPIAN Group.

St Bartholomew’s House Lime Street opens its doorsThe Lime Street development exemplifies the Authority’s approach of working in partnership with the community sector to improve the economic and social outcomes for Western Australians through opening doors to affordable housing.

Lime Street social housing accommodation, East Perth

http://stbarts.org.au/


Housing people with complex needsCombined Capital Bid Program

People with disabilities, people living with mental illness and those exiting drug and alcohol treatment facilities continued to benefit from the State Government’s commitment of $150.7 million over three years. Achievements of the Combined Capital Bid Program include:

> 143 homes for people with severe and profound disabilities who will be accessing personal care and supported accommodation;

> 98 community based homes for people living with mental illness leaving inpatient facilities; and

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

The Authority worked closely with the Disability Services Commission, Mental Health Commission and Drug and Alcohol Office to develop policy settings to support individualised outcomes for clients and value for money outcomes for government. The Authority has established Memoranda of Understanding with these groups to define the governing and funding arrangements for the Combined Capital Bid Program.

In 2011-12, Cabinet approved an additional $8.7 million in capital funding for 2012-13 to 2014-15. This funding is to meet the needs of people with severe and persistent mental illness and complex care needs who have support packages funded through the Mental Health Commission, and will deliver community based homes for 16 Western Australians with mental illness.

The Authority is overseeing a review of the program to collate the knowledge gained through the implementation of the program to better understand how the provision of housing has delivered improved social outcomes for clients.

Disability group home opening, Wilson


Commitments to the Disability Services Commission and Mental Health Commission

In addition to the Combined Capital Bid Program, the Authority fulfilled its commitment to the Disability Services Commission with the provision of a four bedroom property in Broome for young people previously residing in aged care facilities. Further capital funding of $12.8 million was received to deliver two facilities in Rockingham and Joondalup for the Mental Health Commission. The facility in Joondalup, consisting of 21 residential units and a staff unit was completed in September 2012. A 12 unit property has been identified for purchase in Rockingham for a facility consisting of 11 residential units and a staff unit.

The Commonwealth Government approved $2.5 million capital funding for the Broome sub acute service in the National Partnership Agreement on Improving Public Hospital Services. Land has been identified for purchase in Broome for a facility consisting of six residents units and one staff unit.

Respite facilities for carers

Three purpose built respite facilities were completed at Rockingham, York and Gosnells in 2012-13. The facilities offer carers of a family member with a disability the opportunity to take breaks from their important caring role. This delivers on the State Government’s $11.75 million election commitment to build five respite facilities across Western Australia. These facilities have been designed according to universal design principles offering versatile and spacious living areas, up to seven bedrooms and outdoor recreational areas.


Aboriginal HousingNational Partnership Agreement on Remote Indigenous Housing (NPARIH)

Services to discrete remote and town based Aboriginal communities in Western Australia are undertaken within the framework of a 10 year NPARIH. The aim is to facilitate significant reform in the provision of housing and to address overcrowding, homelessness, poor housing conditions and severe housing shortage.

The key strategies of the agreement are to increase the supply of quality housing, ensure houses are well maintained and managed and subject to mainstream standards, increase employment opportunities and facilities to support people moving from remote communities to take up study or employment opportunities, and resolve land tenure issues to secure the government’s investment.

Capital works is the primary element of the NPARIH aimed at addressing housing condition and overcrowding. At the end of the financial year, 1,032 refurbishments and 373 new houses were completed in 58 remote communities across Western Australia at a cost of $321.210 million against a requirement to complete 1,025 refurbishments and 295 new houses over four years.

The 2012-13 financial year target was exceeded with 287 refurbishments and 140 new houses constructed at a cost of $110.388 million across 58 communities.

The Authority used a close relationship-management approach (early builder involvement) with the private sector to build new houses and undertake refurbishments. The State and Commonwealth Government agreed to an average 20 per cent Aboriginal employment level for all housing capital works projects. In 2012-13, the Authority again exceeded the target, averaging 33 per cent Aboriginal employment rate on these projects and 218 Aboriginal people were employed during the period in NPARIH construction and refurbishment projects.

Employment related accommodation

Employment related accommodation facilities have been constructed to provide a safe, supportive and affordable accommodation option primarily for young adults of Aboriginal descent while they establish themselves in employment, apprenticeship and training opportunities. As at 30 June 2013 there were 58 accommodation units (including four family units) available across four facilities within the Kimberley in Halls Creek, Fitzroy Crossing, Broome and Derby.

The facilities contribute to the success of residents’ employment and training, providing a range of support services which allow for the effective transition from remote locations, the development of independent living skills, and the eventual progression from the facility into sustainable housing alternatives.

http://www.fahcsia.gov.au/our-responsibilities/indigenous-australians/programs-services/housing/national-partnership-agreement-on-remote-indigenous-housing


Kalgoorlie-Boulder Indigenous short stay accommodation

The Kalgoorlie Indigenous Visitors Accommodation Project is a joint venture between the Commonwealth, State and Local Governments that provides Aboriginal visitors to the Kalgoorlie-Boulder region with short term accommodation.

Through a competitive tender process Red Cross Australia was appointed as the service provider to operate and manage the facility for an initial period of two years. The facility was provided to the Australian Red Cross in September 2012, partially opened for residents in November 2012 and has been fully operational since January 2013.

The Department for Child Protection and Family Support manages the operational arrangements and the contract. The Authority is responsible for insurance and higher value property maintenance.

Derby Indigenous short stay accommodation

Works are underway for the construction of a 54 bed short term accommodation facility in Derby, providing Aboriginal visitors to the town with a safe and comfortable place to stay while they access amenities and services. Derby is a key service centre in the West Kimberley, with a great need for accommodation for short term Aboriginal visitors. Many Aboriginal people come into centres like Derby from more remote communities to access important government services and visit family. The Authority has worked closely with the Shire of Derby/West Kimberley to identify a site and plan the facility to ensure minimal disruption to adjoining neighbours.

Employment related accommodation, Derby


Property and tenancy management services

The Authority delivers a comprehensive housing management service to 2,439 houses in 122 remote discrete Aboriginal communities. The Authority contracts six regionally based primarily Aboriginal organisations state-wide for the delivery of housing management services to 1,363 community houses. A further 1,076 houses are directly managed by the Authority.

The Social Housing Practice Implementation Project has aligned delivery of housing management services in remote communities to a public housing like model, setting strong foundations for the management of housing stock under 40 year Housing Management Agreements. This year, the Aboriginal Housing Services Quality Assurance Framework was developed and implemented. Since November 2012, all regional service providers and direct managers have been quality assurance tested, and in these early stages, new processes have been put in place to focus on continuous service and business improvements.

Make Good Reform

The Make Good Reform Project assists Aboriginal housing organisations in regional towns and urban areas to improve the quality of service provided to tenants through attaining registration as mainstream community housing providers. The refurbishment program brings housing stock up to a public housing standard thereby increasing capacity to deliver a viable service. To date four organisations have undergone a business development reform process with two organisations reaching registration and a further two on the pathway to registration, anticipated to occur in the first half of 2013-14. As at 30 June 2013, 304 properties have been refurbished. Up to $60 million is planned to be invested in the Make Good Reform Project.

Aboriginal tenancy support

During 2012-13, the Authority continued to provide tenancy support services to Aboriginal families and individuals living in remote Aboriginal communities through six regional service providers. During the year, a review was undertaken in conjunction with key Aboriginal stakeholders and it was decided to tender for an improved service that was more focussed on case management support for families to maintain their tenancy. Contracts have subsequently been awarded to six regional service providers to deliver the reformed service.

In addition, all tenants moving into a new or refurbished property will be offered access to the New Living Skills Program through the housing management team and will be provided a comprehensive induction to the property. The Authority also undertakes a follow up visit with tenants to promote tenancy support services and offer further support if required.

Rent reform

Consistent with the introduction of public housing standards to remote communities, rent reform will also be introduced in a staged manner from 1 July 2013 for tenants of remote communities who have had their house newly built or refurbished under the NPARIH. The new rent will parallel that charged in other public housing in Western Australia and be up to 25 per cent of assessable household income. As in mainstream public housing, there will be a cap to the level of rent that is paid. In parallel with this there will be a comprehensive rolling inspection and maintenance program to ensure health, safety and amenity levels are maintained.


Snapshot

74

Planting the seeds of home ownership in the KimberleyThe Authority’s Transitional Housing Program has been helping Aboriginal people in the East Kimberley build a solid foundation for home ownership since its launch in September 2012.

The Authority constructed 40 transitional housing dwellings in Kununurra to address the need for affordable housing for Aboriginal families. These new properties provide much needed housing for local Aboriginal people who want to take up work opportunities in the East Kimberley.

The outcome of the program is to see these families transition over a two year period into home ownership. Families have the opportunity to purchase the house that they are renting fostering a personal interest in the care and upkeep of their home.

The program differs from other initiatives in that it takes a holistic approach to the challenges associated with assisting people to make positive social changes. It recognises that housing is just one element required to initiate change, and without a comprehensive program incorporating other key elements such as employment, training, and life skills, the changes are unlikely to be sustained.

Through the program, Aboriginal people engaged in employment or training are provided housing and support services to help them develop independence and take a significant step towards creating personal success and achieving home ownership. One of the families participating in the

East Kimberley Transitional Housing Program

http://www.youtube.com/watch?v=MkI6mEG1__4


Snapshot (continued)

Participants must also ensure children attend school regularly and participate in the associated support program. The support program includes setting lifestyle goals, financial management and progressing referrals to community support networks like health agencies.

The Authority works in partnership with Community Housing Limited to manage the properties and the Wunan Foundation to deliver the support program.

As of June 2013, nine participants have a home loan application in progress and two participants have had their applications approved. The program as also achieved this financial year a 94 per cent school attendance rate and a labour force participation rate for of 94 per cent. The Authority is proud of the outcomes being achieved through this program.

This program demonstrates the outcomes that can be achieved through partnerships with the community housing sector and Aboriginal communities enabling Aboriginal families to have a place to call home.

75

Aboriginal transitional housing, East Kimberley


Aboriginal community infrastructureRemote area essential services

On behalf of the State Government, the Authority is responsible for maintaining power, water and wastewater services in up to 91 remote Aboriginal communities. These services are delivered to communities through the Remote Area Essential Services Program (RAESP), which provides:

> repairs and maintenance of power, water and wastewater infrastructure for approximately 11,000 people;

> maintenance and monitoring of water quality in accordance with Australian Drinking Water Guidelines – as required by the Department of Health; and

> an emergency repair service for approximately 150 smaller non RAESP communities, which is funded by the Commonwealth.

The Authority contracts a State Program Manager (currently Parsons Brinckerhoff Pty Ltd) and three regional service providers, through competitive tender processes, to manage and deliver RAESP. New service provider contracts were awarded in 2012-13 to:

> Kimberley Regional Service Providers in the Kimberley region;

> Pilbara Meta Maya Aboriginal Corporation in the Pilbara/Gascoyne region; and

> Ngaanyatjarra Services Aboriginal Corporation in the Goldfields/Central Reserves.

Essential services capital works program

RAESP relies on a regular capital works program for the upgrade and replacement of assets as they reach end of service life and to ensure sufficient essential services capacity for the growing needs of communities. This has historically been funded by the Commonwealth Government through bilateral arrangements that were superseded by the NPARIH in December 2008.

Since 2008, both the State and Commonwealth Government have provided funding support in response to critical infrastructure needs. This includes $22.15 million from Royalties for Regions over three years (2011-12 to 2013-14).

The Authority also negotiated a Project Agreement under the National Partnership Agreement on Water for the Future, which will provide $10 million in Commonwealth funds for critical water infrastructure across the 2012-13 and 2013-14 financial years.

Town reserves regularisation program

The Authority has continued to work with Horizon Power and the Water Corporation to progress the regularisation of power, water and waste water services to selected town reserve communities. This program has now successfully regularised water services at six locations and power services at 27 locations throughout the State. Works completed in 2012-13 include water services in Mindi Rardi, Kurnangki, Nicholson Camp, and Lundja and power services in Bayulu, Looma and Mowanjum. These communities now receive equitable essential service standards from the relevant State utility.


Our Partners, Our PeopleThe Affordable Housing Strategy signalled the critical importance of partnerships across government, industry and the community sector in achieving its outcomes. During the course of the year, the Authority has actively pursued opportunities to build productive relationships with key stakeholders through collaboration on a range of initiatives.

Our partners and stakeholdersPartnerships

The Authority continues to pursue partnerships with private and public sector partners to deliver mixed tenure developments that break new ground in delivering real affordability within commercial projects. Through the innovative use of Government land and investment, a number of developments have been able to attract private sector capital, increase housing supply and deliver much needed affordable housing.

In the Perth CBD an initial investment of approximately $6 million in land value has facilitated the financing and construction of a $73 million, 161 apartment development incorporating social housing, discounted rentals through NRAS, shared equity home ownership opportunities, and ordinary market sales. The One on Aberdeen development also incorporates seven commercial units.

A new partnership between the Metropolitan Redevelopment Authority and the Authority will fast-track the supply and creation of 1,300 units of affordable housing within Metropolitan Redevelopment Authority project boundaries by 2020. This will help ensure the ongoing supply and availability of affordable housing in key strategic locations across the metropolitan area.Representatives from the Housing Authority

and the Metropolitan Redevelopment Authority


The Housing We’d Choose: A study for Perth and Peel

The Authority, with the Department of Planning, jointly commissioned an independent research report into the nature of housing demand and supply in Perth. Project industry partners included the Property Council of Australia, Housing Industry Association and Planning

Institute of Australia. The project provides new evidence of housing choices, and identifies ‘trade-offs’ that people are prepared to make to secure their preferred housing when constrained by income.

This study is available on the Authority’s website.

Office of Land and Housing Supply

The Authority worked closely with the Department of Planning in the development of a two year work program for the Office of Land and Housing Supply. The office is providing strategic advice on the main barriers to the supply of land and affordable housing, and helping to drive the delivery of key affordable housing projects.

Housing Industry Forecasting Group

Comprising key industry and State Government departments, the Housing Industry Forecasting Group continues to be a reliable source of housing supply forecasts for Western Australia. This group provides valuable information on supply trends to policy makers and industry through its twice yearly reports. The Authority and the Department of Planning jointly fund and provide the secretariat function of the Group.

Supporting Aboriginal employment in the Kimberley

The Authority has recently introduced the Kimberley Employment and Enterprise Program. Under the program, housing construction projects in the Kimberley region with a contract value over $600,000 are required to demonstrate how they will meet the Authority’s 20 per cent Aboriginal labour content by identifying Aboriginal involvement. The program is being trialled in the Kimberley with the intention of rolling out similar programs within Western Australia. The specifics of the program are being refined as feedback and support from various stakeholders including community groups, contractors and suppliers are obtained.

Community development and involvement

The Authority extended its role of supporting key community organisations and activities. Initiatives during 2012-13 include:

> assistance for the Western Australian Council of Social Service to host its biannual state conference;

> corporate support of Leadership Western Australia;

> sponsorship of the Elder Awards for the 2013 Perth National Aborigines and Islanders Day Observance Committee (NAIDOC) Awards; and

> participation in a range of NAIDOC week events.

http://www.housing.wa.gov.au/news/Pages/hwc.aspx

http://www.housing.wa.gov.au/news/Pages/hwc.aspx


Innovating through research and development

The Authority continues to partner and collaborate with academia and research institutions to develop innovative, sustainable solutions for a range of housing needs in Western Australia. These partnerships enable the Authority to grow, improve and diversify products, services and industry capabilities. The Authority supports research and development initiatives including:

> Solar membrane distillation process trial with the National Centre of Excellence in Desalination and Murdoch University. As a provider of essential services such as water and power to remote communities in Western Australia, the Authority continues to explore solutions to address the limited fresh water supply in these communities. The project trials an innovative distillation process that aims to develop a new water treatment system that may provide additional sustainable potable water to communities.

After extensive research and a successful laboratory trial, a small trial water treatment unit will soon be installed at Tjuntjuntjarra community, located 800 kilometres east of Kalgoorlie, and connected to a hyper saline bore. The unit will operate during daylight hours and will be remotely monitored for the six month onsite trial. The results of the trial will be documented in a feasibility report that will be produced to review the performance and suitability of this system for future considerations and possible applications.

> Cooperative Research Centre for Water Sensitive Cities. The Authority is one of the government partners supporting this decade long multi-million dollar Australia-wide and international venture to transform the way new cities are designed and improve existing ones through better urban water management. The Authority is utilising this partnership with the Cooperative Research Centre to address the problems of high groundwater and high nutrient levels at the 4,000 hectare Keralup site on the Serpentine River. The Authority’s Keralup site provides a unique opportunity to collaborate with academia, industry and other government agencies to find solutions to existing challenges while creating liveable, resilient, sustainable and productive cities. The Authority and the Department of Water in Western Australia are working together with the Cooperative Research Centre to ensure the research responds to Western Australia’s unique environmental conditions.

In addition to the work with the Cooperative Research Centre, the Authority is providing funding to the Department of Water to support a trial being undertaken in Gosnells on soil amendments that have nutrient retention qualities. The purpose of the trial is to ascertain the effectiveness of soil amendments in preventing the leaching of nutrients into the groundwater. The trial will have potential benefits to the proposed Keralup development and a number of other Authority projects in low lying areas.


> Use of rammed earth in Aboriginal communities of Australia project with the University of Western Australia. This project is funded by an Australian Research Council Linkage Grant. The project recognises the environmental and social benefits of rammed earth as a construction material in remote communities, and addresses the lack of an Australian Standards code supporting its use. Qualitative and quantitative characterisation of the material and structural properties of rammed earth are being undertaken through laboratory and on site experimental tests. The project will result in the first ‘Proposal Form for Australian Standards Development’ for rammed earth structures to be submitted to Standards Australia. The laboratory testing phase of the project has been completed and the construction of two rammed earth houses incorporating the next stage of testing will be undertaken in the second half of 2013.

In addition to these specific initiatives, the Authority is a corporate member of a number of housing industry related organisations including the Australian Housing and Urban Research Institute, Urban Development Institute of Australia and the Housing Industry Association.

Our PeopleThe Authority strives to build a strong and supportive workplace by creating a collaborative and innovative culture that enables our talented people to excel in the work they do and to make a difference. Our workforce activities focus on building staff capabilities, transforming the organisation’s culture, system and processes as well as recognising diversity.

Learning and development

The Authority is dedicated to providing a learning environment in which staff can broaden their skills and develop future capabilities to achieve their goals.

The Authority’s development and training programs enable staff to contribute to achieving its strategic goals by developing their capabilities in order to meet the current and future demands of its dynamic business environment.

As a strategy for delivering training to remote regions, distance training has been developed using the Authority’s existing communication technology. Using a virtual ‘school of the air’ approach, it has allowed interactive, real-time training to be delivered without the associated travel costs or compromising learning outcomes.

In 2012-13 the Authority, in partnership with the Department of Environmental Regulation (formerly the Department of Environment and Conservation), developed hazardous materials training to ensure staff can recognise and respond to the hazards associated with asbestos containing materials and clandestine drug laboratories, ensuring staff safety. One hundred and thirteen officers completed the Hazardous Materials course while more than 100 officers undertook employment training.

http://www.housing.wa.gov.au/careers/learningdevelopment/Pages/default.aspx


Staff induction

The Authority has implemented a comprehensive Corporate Induction Program that introduces new staff to the vision, values and ethical codes of conduct under which it operates. The program provides new staff with an opportunity to engage with other staff from across the Authority and to understand the context of their role within the wider Authority.

Leadership

Leadership programs have been introduced at all levels of management to provide staff with crucial skills for leading people in a challenging and dynamic environment. Programs include High Impact Leadership that enables experienced managers to meet the challenges of a range of issues from communicating a vision that will inspire others and responding to economic environmental demands through to topics related to daily work activities and managing teams.

Building leadership skills is also provided for staff in supervisory roles to provide critical capabilities to lead teams to produce results. The Authority runs a Women in Leadership Program providing an opportunity for women in the Authority to build networks and develop career opportunities by tapping in to role models and mentors.

Aboriginal traineeships

The Authority is participating in the Public Sector Commission’s Aboriginal Traineeship Program. Six trainees are continuing to work towards the completion of their Traineeship and the Authority has committed to hosting further trainees in regional offices across the State. Upon successful completion of the program, trainees are offered a permanent full time position with the Authority, with one appointment already made.

Housing Authority induction


Graduate program

The Authority’s graduate program has a yearly intake of four graduates for a two year period and provides successful applicants with three monthly rotations through divisions. All four graduates completing the program in 2013 secured further employment with the Authority and four new graduates have been engaged for the 2012-2014 program.

School based trainees

The Authority continues to support the Public Sector Commission’s School Based Traineeship Program and is currently employing three school based trainees in various offices.

Workforce planning

In 2012-13, the Authority’s Workforce Plan was approved, providing a high level review of its workforce risks over the next five years. The plan connects people strategy and business strategy to enable the Authority to plan for and deliver its corporate outcomes. The plan is future focused, identifying actions that need to be implemented to ensure that the Authority has the capacity to support required business achievements.

Diversity

The Authority continues to implement its Equity and Diversity Management Plan 2011-2014. In 2012-13 the Authority’s equity and diversity contact officer network was expanded to cover each of its regional offices, providing its staff across Western Australia with access to a trained officer for equity and diversity information and concerns.

Reconciliation

The Authority has expressed its commitment to maintaining positive relationships with Aboriginal and Torres Strait Islander people in its Reconciliation Action Plan. Launched in November 2011, this initial plan focussed on supporting projects that addressed the key focus areas of Reconciliation Australia’s Reconciliation Action Plan Program: Relationships, Respect and Opportunities.

The Authority’s first Reconciliation Action Plan has provided it with a solid base to develop a refreshed plan, the focus of which continues to be working respectfully, creating opportunities and strengthening relationships between the Authority and our Aboriginal and Torres Strait Islander clients.

A key activity undertaken in support of the Authority’s Reconciliation Action Plan is the implementation of an Aboriginal Employment Strategy which aims to create a culturally inclusive and supportive working environment where Aboriginal and Torres Strait Islander people are supported in pursuing their careers.

In 2013 the Authority released an employee satisfaction survey to specifically engage with Aboriginal and Torres Strait Islander staff. Aligned with the objectives of the Authority’s Aboriginal Employment Strategy and Reconciliation Action Plan, the survey findings will form the basis for new initiatives designed to enhance the working environment at the Authority.

http://www.housing.wa.gov.au/careers/graduateprogram/Pages/default.aspx


The Authority continues to promote and celebrate significant events including Reconciliation Week and NAIDOC Week. In 2013 the Authority sponsored the Male and Female Elder of the Year Awards at the 2013 NAIDOC Perth Awards, which honour the outstanding achievements of Aboriginal and Torres Strait Islander individuals, organisations and businesses in Perth.

Aboriginal communication and awareness

In 2012-13, the Authority’s Aboriginal Communication and Awareness Unit delivered training for 316 staff aimed at improving awareness and relationships between the Authority and Aboriginal clients.

The Aboriginal Communication and Awareness Unit also provided information sessions across metropolitan and regional Western Australia for tenants and stakeholders including:

> seven sessions for Aboriginal clients with 82 attendees; and

> five sessions on the Authority’s policies with 43 people attending, including NGOs and Aboriginal clients.

>

2013 NAIDOC Perth Awards – Kayla Rodd (Housing Authority) with Jean Boladeras, Female Elder of the Year Award recipient


Snapshot

The Authority is committed to providing ongoing training and development opportunities for its staff throughout the State. With this goal in mind, the Authority supported staff member Peter Cappendell to participate in a six week program in the Kimberley to work on Aboriginal development.

The program, run by the Public Sector Commission and Jawun, aims to build capacity and transfer skills between public sector employees and Aboriginal communities.

As the first Jawun secondee from the Authority, Peter was provided with a unique opportunity to share the experience he has developed during his employment with the Authority, to create real outcomes for Aboriginal communities in the East Kimberley.

Peter used these skills to support the development of projects with the potential to add significant value to communities and provide local employment opportunities for community members.

The Authority has also benefitted from the connections made by Peter during his time on secondment, where he met many community elders that were keen to talk, share stories and offer feedback on services.

Sharing knowledge, skills and stories are key objectives of the Authority’s Aboriginal Employment Strategy and Reconciliation Action Plan. As the Authority develops a new Reconciliation Action Plan, experiences such as Peter’s will be invaluable in enhancing opportunities for the Authority to work together with Aboriginal and Torres Strait Islander People to build relationships and foster respect.

Sharing stories and skills in the Kimberley

Peter Cappendell, Housing Authority staff member

http://www.apsc.gov.au/learn/leadership/jawun-secondment-program


Project management

The Authority’s Project Management Office ensures that best practice standards for project management, governance, quality and change associated with its projects are maintained. In 2012-13, the Authority supported the development of internal project management capability through the certification of project staff with the Australian Institute of Project Management and the delivery of tailored project management training. The Project Management Office has established a standardised structure for the development of project business cases within the Authority. The process ensures robust project justification and supports a strong project governance framework which feeds into project tracking and reporting for the Corporate Executive.

Change management

The Authority is building expertise and processes in change management to support its organisational transformation program. The major focus of change management is to support the introduction of new computerised business systems including the Northgate Housing Management System which will replace the ‘Caretaker’ tenancy management system.

Housing Authority staff member


Supporting our volunteers

The Authority supports staff who make valuable contributions to the Australian and Western Australian community through volunteering for the State’s emergency services and the Australian Defence Force Reserves. In December 2012, the Authority received the Defence Reserves Support Council’s Western Australian Employer Award in the State Government category. This award recognises the support provided to Reservist employees over a sustained period including making a special effort to enable them to complete their Reserve commitments.

There are five staff members in the Reserve Forces, and the Authority has supported requests for leave to attend courses, participate in training exercises and become involved in military operations such as the regional assistance mission in the Solomon Islands and the security arrangements for the 2011 Commonwealth Heads of Government Meeting. Over the course of the last three financial years, the Authority has increased the amount of leave hours approved for Reservist staff. The Authority is proud of its continuing commitment to support these officers.

Defence Reserves Support Council’s Western Australian Employer Award - (L-R): John Liston, Shane Edmonds and Duncan Mackay (Housing Authority); Brigadier Stephen Coggin, Senior Australian Defence Force Officer WA; Professor Murray Lampard, Chairman State Council-Defence Reserve Support Council


This section provides a summary of significant current/emerging issues that impact/may impact upon the Authority.

Parkes apartments, Mirrabooka

Significant Issues Impacting the Authority


Our environmentHousing affordability is a major challenge for Western Australia, driven by record population growth, an undersupply of stock and high costs of renting and home ownership.

Median house prices in Perth have hit a record high of $505,000 (March quarter 2013), with a lower quartile price of $405,000. Even the latter figure was above the amount that a household on the estimated median income of $83,050 could afford unless they allocated more than 30 per cent of their income. With Perth’s median rent at $470 per week in the March 2013 quarter, a household would need a gross income of $81,500 per annum if they were to allocate no more than 30 per cent of their income to rent. As a result, securing affordable housing remains challenging for many Western Australians and disproportionately affects people on low incomes.

Home ownership is effectively out of reach for the majority of households living in the North West of Western

Australia. Even with a 20 per cent deposit of $199,500, a borrower allocating 30 per cent of income to repayment would need an income of around $200,000 to buy a median priced property in Port Hedland or an income of $150,000 to be able to allocate 40 per cent of income to repayments. Even when allocating 50 per cent to rent and the recent fall in rents, very high incomes are needed to afford the median private sector rents in Karratha and Port Hedland.

A lack of affordable housing can have a significant impact on the quality and availability of services particularly in regional areas. When businesses have to pay high housing costs for staff, these costs are either passed on to the consumer, the level of services is reduced, or services are withdrawn.

Osprey Estate, South Hedland


Delivering on the State Government’s Affordable Housing Strategy

The Authority, through the State Government’s Affordable Housing Strategy, is working with the private and not-for-profit sectors to increase the diversity and supply of affordable housing options and to take pressure off the social housing system.

Land and affordable housingIn 2013-14, the Authority, through its land development activities, intends to produce up to 2,460 housing lots including 1,756 lots developed with joint venture partners. Significant land development will support affordable, public and community housing throughout metropolitan and regional areas. It is anticipated that 30 per cent of the sales of these lots will be in the lower quartile of the market.

The Authority, through innovative partnerships, procurement and construction methods, is working to deliver more than 10,000 new affordable opportunities under the Affordable Housing Strategy.

Affordable rentalLow to moderate income households are benefiting from private rentals which are discounted by at least 20 per cent from market rates through the Government’s continued participation in funding the NRAS. In conjunction with the Commonwealth Government, 7,000 new affordable rentals will be built by June 2016 under this scheme, with 1,427 homes delivered to 30 June 2013.

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

The Royalties for Regions – Housing for Workers initiative will commit $373.1 million over six years (2011-12 to 2016-17), to provide affordable housing for key workers in regional Western Australia. Of the $373.1 million, $195.6 million has been approved for six projects located in Port Hedland, Karratha, Newman and the Avon Valley. These six projects are expected to provide 596 housing opportunities for regional key workers.

Affordable home ownershipHome ownership outcomes are supported through the SharedStart shared equity home loan initiative. SharedStart has, since 2011, assisted 643 low income households to purchase a home via government co-ownership and Keystart home loans and supported the local housing industry by financing the construction of these new homes.


Stellar Living, Lakelands


Social housingOver the period 2013-14 to 2015-16, the Public Housing Stock Redevelopment Strategy will result in the redevelopment of 200 sites by the Authority, to deliver 500 new affordable homes, with no overall reduction in public housing stock. The strategy will be financed via a $55 million, three year loan facility.

The State Government will commit a further $65 million in 2013-14 as part of a two year program to fund the construction of 433 homes providing a much needed boost to public housing. Vulnerable households who cannot secure housing in the private market due to low income and/or a range of complex needs will benefit the most.

The State Government has invested $12 million over four years from 2012-13 to 2015-16, to support the implementation of its Disruptive Behaviour Management Policy for public housing. The funding has enabled 35 additional specialised staff members to be employed to manage and investigate tenancy complaints from the public and to ensure that the small proportion of public housing tenants who engage in disruptive behaviour are held accountable for their behaviour.

As part of its commitment to supporting outcomes for people in remote communities, the State Government has also committed to a range of initiatives that will benefit Aboriginal Western Australians.

The Authority will receive Royalties for Regions funding of $33.9 million over two years, from 2013-14, for the Kimberley Housing Indigenous Prosperity Program. This will deliver up to 60 new houses in Broome (40) and Derby (20) to facilitate the transition of Aboriginal tenants from public housing to independent housing options. The transitional housing project is a joint venture between the Kimberley Development Commission and the Authority.

A total of $16 million has been committed under Royalties for Regions towards a partnership to deliver two apprentice and trainee hostels in South Hedland and Newman, as part of the Pilbara Cities program. The Authority has partnered with the Department of Regional Development, the Commonwealth Government and BHP Billiton Iron Ore to construct and operate a hostel for apprentices and trainees in South Hedland. Over three years from 2012-13, $22.3 million has been committed to the South Hedland facility. The facilities will support Aboriginal employment in the Pilbara and independent living.

A total of $10 million over two years has been committed under Royalties for Regions for the Jigalong community. This will include the construction of a new power station and electrical distribution network, and the development of a drinking water source that will provide immediate improvements in the standard of living for community residents.


National Partnership Agreements

Essential servicesThe Authority is responsible for the Remote Area Essential Services Program (RAESP). The RAESP provides a cyclical maintenance and breakdown service for power, water and wastewater infrastructure and water quality testing to ensure compliance with Australian Drinking Water Guidelines in up to 91 remote Aboriginal communities. These communities are occupied by approximately 11,000 people and the essential services infrastructure has an estimated asset value of more than $765 million.

Future arrangements for providing essential and municipal services to Aboriginal communities are being negotiated through the Council of Australian Governments and implementation of the NPARIH. The Commonwealth Government has historically had a significant funding role in this area and is seeking to transfer future responsibilities to state and local governments.

This lack of an ongoing and sustainable source of capital works funding has placed additional stress on the RAESP maintenance budget as repairs and maintenance costs have increased, along with the inability to replace or upgrade assets as would have been done in the past. This will have a detrimental effect on the program’s capacity in the future.

The Government, through RAESP delivers essential services to remote Indigenous communities throughout the State. The provision of essential services presents a significant challenge, with much of the infrastructure ageing and becoming increasingly expensive to maintain and repair.

The Authority will receive $30 million per annum until 2016-17, through Royalties for Regions to continue the provision of water, wastewater, power and other essential services under RAESP.

In 2013-14, the Authority will complete urgent infrastructure upgrades to improve the quality of drinking water and the provision of electricity in remote Indigenous communities. This $12.2 million program started in 2011-12, with a final $6.5 million to be received by the Authority from Royalties for Regions in 2013-14.

The Authority continues to work with other State Government agencies to negotiate suitable new service and funding arrangements for essential services with the Commonwealth Government.

The Authority is represented on a national working group established by Housing Ministers to progress these negotiations and works closely with other State and Local Government representatives to develop an appropriate platform for reform. A continuing priority in 2012-13 has been the identification of sources of capital works funding to support RAESP and to respond to growing health and safety risks in remote communities associated with ageing and inadequate infrastructure.


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

Royal Flying Doctor Service provided with key worker accommodation, Port Hedland

Disclosures and Legal Compliance


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Housing A

uthority – Annual Report 2012-13

95

Auditor G

eneral’s opinion

Auditor General

Page 1 of 3

7th Floor Albert Facey House 469 Wellington Street Perth MAIL TO: Perth BC PO Box 8489 Perth WA 6849 TEL: 08 6557 7500 FAX: 08 6557 7600

INDEPENDENT AUDITOR’S REPORT

To the Parliament of Western Australia

HOUSING AUTHORITY

Report on the Financial StatementsI have audited the accounts and financial statements of the Housing Authority.

The financial statements comprise the Statement of Financial Position as at 30 June 2013, the Statement of Comprehensive Income, Statement of Changes in Equity and Statement of Cash Flows for the year then ended, and Notes comprising a summary of significant accounting policies and other explanatory information.

Director General’s Responsibility for the Financial StatementsThe Director General is responsible for keeping proper accounts, and the preparation and fair presentation of the financial statements in accordance with Australian Accounting Standards and the Treasurer’s Instructions, and for such internal control as the Director Generaldetermines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s ResponsibilityAs required by the Auditor General Act 2006, my responsibility is to express an opinion on the financial statements based on my audit. The audit was conducted in accordance with Australian Auditing Standards. Those Standards require compliance with relevant ethical requirements relating to audit engagements and that the audit be planned and performed to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Authority’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of accounting estimates made by the Director General, as well as evaluating the overall presentation of the financial statements.

I believe that the audit evidence obtained is sufficient and appropriate to provide a basis for my audit opinion.

OpinionIn my opinion, the financial statements are based on proper accounts and present fairly, in all material respects, the financial position of the Housing Authority at 30 June 2013 and itsfinancial performance and cash flows for the year then ended. They are in accordance with Australian Accounting Standards and the Treasurer’s Instructions.

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Report on ControlsI have audited the controls exercised by the Housing Authority during the year ended 30 June 2013.

Controls exercised by the Housing Authority are those policies and procedures established by the Director General to ensure that the receipt, expenditure and investment of money, the acquisition and disposal of property, and the incurring of liabilities have been in accordance with legislative provisions.

Director General’s Responsibility for ControlsThe Director General is responsible for maintaining an adequate system of internal control to ensure that the receipt, expenditure and investment of money, the acquisition and disposal of public and other property, and the incurring of liabilities are in accordance with the Financial Management Act 2006 and the Treasurer’s Instructions, and other relevant written law.

Auditor’s ResponsibilityAs required by the Auditor General Act 2006, my responsibility is to express an opinion on the controls exercised by the Housing Authority based on my audit conducted in accordance with Australian Auditing and Assurance Standards.

An audit involves performing procedures to obtain audit evidence about the adequacy of controls to ensure that the Authority complies with the legislative provisions. The procedures selected depend on the auditor’s judgement and include an evaluation of the design and implementation of relevant controls.


OpinionIn my opinion, the controls exercised by the Housing Authority are sufficiently adequate to provide reasonable assurance that the receipt, expenditure and investment of money, the acquisition and disposal of property, and the incurring of liabilities have been in accordance with legislative provisions during the year ended 30 June 2013.

Report on the Key Performance IndicatorsI have audited the key performance indicators of the Housing Authority for the year ended 30 June 2013.

The key performance indicators are the key effectiveness indicators and the key efficiency indicators that provide information on outcome achievement and service provision.

Director General’s Responsibility for the Key Performance IndicatorsThe Director General is responsible for the preparation and fair presentation of the key performance indicators in accordance with the Financial Management Act 2006 and the Treasurer’s Instructions and for such controls as the Director General determines necessary to ensure that the key performance indicators fairly represent indicated performance.

Auditor’s ResponsibilityAs required by the Auditor General Act 2006, my responsibility is to express an opinion on the key performance indicators based on my audit conducted in accordance with Australian Auditing and Assurance Standards.

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An audit involves performing procedures to obtain audit evidence about the key performance indicators. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the key performance indicators. In making these risk assessments the auditor considers internal control relevant to the Director General’s preparation and fair presentation of the key performance indicators in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the relevance and appropriateness of the key performance indicators for measuring the extent of outcome achievement and service provision.


OpinionIn my opinion, the key performance indicators of the Housing Authority are relevant and appropriate to assist users to assess the Authority’s performance and fairly represent indicated performance for the year ended 30 June 2013.

IndependenceIn conducting this audit, I have complied with the independence requirements of the Auditor General Act 2006 and Australian Auditing and Assurance Standards, and other relevant ethical requirements.

Matters Relating to the Electronic Publication of the Audited Financial Statements and Key Performance IndicatorsThis auditor’s report relates to the financial statements and key performance indicators of the Housing Authority for the year ended 30 June 2013 included on the Authority’s website. The Authority’s management is responsible for the integrity of the Authority’s website. This audit does not provide assurance on the integrity of the Authority’s website. The auditor’s report refers only to the financial statements and key performance indicators described above. It does not provide an opinion on any other information which may have been hyperlinked to/from these financial statements or key performance indicators. If users of the financial statements and key performance indicators are concerned with the inherent risks arising from publication on a website, they are advised to refer to the hard copy of the audited financial statements and key performance indicators to confirm the information contained in this website version of the financial statements and key performance indicators.

COLIN MURPHYAUDITOR GENERALFOR WESTERN AUSTRALIAPerth, Western Australia12 September 2013


Financial Statements

Certification of Financial StatementsHousing Authority Financial Statements For the year ended 30 June 2013

The accompanying financial statements of the Housing Authority have been prepared in compliance with the provisions of the Financial Management Act 2006 from proper accounts and records to present fairly the financial transactions for the financial year ending 30 June 2013 and the financial position as at 30 June 2013.

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

Grahame Searle Lorne O’Mara Chief Executive Officer Chief Finance Officer

10 September 2013 10 September 2013

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THE HOUSING AUTHORITY AND CONTROLLED ENTITIES

THE HOUSING AUTHORITYAND CONTROLLED ENTITIES

STATEMENT OF COMPREHENSIVE INCOMEFOR THE YEAR ENDED 30 JUNE 2013

Consolidated Parent Restated * Restated *

Note 2013 2012 2013 2012$000 $000 $000 $000

INCOMERevenueSales 6 315,734 197,751 315,734 197,751Rental revenue 7 430,121 389,952 430,121 389,952Commonwealth grants and contributions 8 204,692 277,051 204,692 277,051Interest revenue 9 200,027 258,026 115,399 178,190Developers' contributions 5,536 1,475 5,536 1,475Other gains 10 16,672 13,997 70,336 56,478TOTAL INCOME 1,172,782 1,138,252 1,141,818 1,100,897

EXPENSESCost of sales 6 203,450 97,807 203,450 97,807Rental expenses 12 327,057 315,962 327,057 315,962New Living expenses 12 33,743 27,591 33,743 27,591Community support expense 13 250,721 246,011 250,721 246,011Employee benefits expense 14 89,027 86,843 88,715 86,674Supplies and services 15 58,081 49,038 54,377 45,625Depreciation & amortisation expense 16 132,003 128,013 131,155 127,308Finance costs 17 162,980 229,306 162,797 229,272Share of net losses of associate 26 2,245 3,065 - -Accommodation expenses 18 12,560 9,940 11,643 9,097Loss on disposal of non-current assets 11 8,323 13,087 8,323 13,087Other expenses 19 151,508 111,397 134,877 98,035TOTAL EXPENSES 1,431,698 1,318,060 1,406,858 1,296,469Loss before grants and subsidies from State Government (258,916) (179,808) (265,040) (195,572)Grants and subsidies from State Government 8 51,744 164,254 51,744 164,254LOSS FOR THE PERIOD 5 (207,172) (15,554) (213,296) (31,318)

OTHER COMPREHENSIVE INCOMEChanges in asset revaluation surplus 40 32,900 333,941 32,909 333,955Total other comprehensive income 32,900 333,941 32,909 333,955TOTAL COMPREHENSIVE INCOME FOR THE PERIOD (174,272) 318,387 (180,387) 302,637

* Refer to Note 3 for correction of prior year error.Refer Note 5 'Schedule of income and expenses by service'The Statement of Comprehensive Income should be read in conjunction with the accompanying notes.

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STATEMENT OF FINANCIAL POSITIONAS AT 30 JUNE 2013

Restated * Restated * Restated * Restated *Note 2013 2012 2011 2013 2012 2011

$000 $000 $000 $000 $000 $000ASSETSCurrent AssetsCash and cash equivalents 20 186,438 279,752 93,553 148,073 254,798 86,799Inventories 21 296,782 226,296 120,360 296,580 226,296 120,360Loans and receivables 22 838,898 757,901 891,991 103,501 99,832 152,852Other current assets 23 49,525 30,420 29,879 60,601 55,357 60,278Non-current assets classified as held for sale 24 4,227 7,131 11,797 4,227 7,131 11,797Other financial assets 25 219,300 390,098 270,066 19,350 - -Total Current Assets 1,595,170 1,691,598 1,417,646 632,332 643,414 432,086

Non-current AssetsInventories 21 502,437 490,399 519,274 502,437 490,399 519,274Loans and receivables 22 2,588,314 2,754,107 3,175,824 3,275,757 3,535,197 3,913,916Other financial assets 25 24 24 1,324 24 24 1,324Investment in associate 26 12,690 14,935 - 18,000 18,000 -Rental properties 27 12,116,742 11,967,939 11,457,212 12,116,742 11,967,939 11,457,212Community Housing properties 28 842,822 804,037 741,067 842,822 804,037 741,067Shared Equity properties 29 559,199 555,618 573,477 559,199 555,618 573,477Other properties 30 143,005 109,266 100,543 143,005 109,266 100,543Plant & equipment 31 6,202 7,580 10,702 3,044 4,566 7,268Buildings under construction 32 212,501 270,424 275,832 212,501 270,424 275,832Intangible assets 33 13,648 7,207 4,207 12,286 6,448 3,470Total non-current Assets 16,997,584 16,981,536 16,859,462 17,685,817 17,761,918 17,593,383TOTAL ASSETS 18,592,754 18,673,134 18,277,108 18,318,149 18,405,332 18,025,469

LIABILITIESCurrent LiabilitiesPayables 35 122,735 90,621 51,468 122,735 90,621 51,468Borrowings 36 114,299 87,776 70,332 114,299 87,776 70,332Provisions 37 26,519 26,318 24,455 26,519 26,318 24,455Other current liabilities 38 19,973 18,653 16,203 15,758 15,117 13,066Total Current Liabilities 283,526 223,368 162,458 279,311 219,832 159,321

Non-current LiabilitiesPayables 35 554 166 24 554 166 24Borrowings 36 4,394,342 4,699,988 5,110,196 4,394,342 4,699,988 5,110,196Provisions 37 36,262 38,312 35,278 36,262 38,312 35,278Total non-current Liabilities 4,431,158 4,738,466 5,145,498 4,431,158 4,738,466 5,145,498TOTAL LIABILITIES 4,714,684 4,961,834 5,307,956 4,710,469 4,958,298 5,304,819NET ASSETS 13,878,070 13,711,300 12,969,152 13,607,680 13,447,034 12,720,650

EQUITY

Contributed equity 39 2,059,354 1,836,711 1,504,576 2,059,354 1,836,711 1,504,576Reserves 40 8,968,895 8,935,995 8,602,054 8,968,148 8,935,239 8,601,284Retained earnings 41 2,849,821 2,938,594 2,862,522 2,580,178 2,675,084 2,614,790TOTAL EQUITY 13,878,070 13,711,300 12,969,152 13,607,680 13,447,034 12,720,650

* Refer to Note 3 for correction of prior year errorThe Statement of Financial Position should be read in conjunction with the accompanying notes.

Parent Consolidated

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Financial StatementsTHE HOUSING AUTHORITY AND CONTROLLED ENTITIES


STATEMENT OF CHANGES IN EQUITYFOR THE YEAR ENDED 30 JUNE 2013

Consolidated Parent

Note 2013 2012 2013 2012$000 $000 $000 $000

Balance of equity at start of period 13,711,300 12,969,152 13,447,034 12,720,650

CONTRIBUTED EQUITY 39Balance at start of period 1,836,711 1,504,576 1,836,711 1,504,576Capital contribution 112,243 176,521 112,243 176,521Other contributions by owner

110,400 155,614 110,400 155,614Balance at end of period 2,059,354 1,836,711 2,059,354 1,836,711

RESERVES 40Balance at start of period 8,935,995 8,580,441 8,935,239 8,579,671Correction of prior period error - 21,613 - 21,613Restated balance at the beginning of the reporting period 8,935,995 8,602,054 8,935,239 8,601,284Profit from asset revaluation 173,531 425,567 173,531 425,567Impairment loss on rental properties (22,232) - (22,232) -Transfer to retained earnings (118,399) (91,626) (118,390) (91,612)Balance at end of period 8,968,895 8,935,995 8,968,148 8,935,239

RETAINED EARNINGS 41Balance at start of period 2,938,594 2,884,135 2,675,084 2,636,403Correction of prior period error - (21,613) - (21,613)Restated balance at the beginning of the reporting period 2,938,594 2,862,522 2,675,084 2,614,790Transfer from reserves 118,399 91,626 118,390 91,612Loss for the period (207,172) (15,554) (213,296) (31,318)Balance at end of period 2,849,821 2,938,594 2,580,178 2,675,084Balance of equity at end of period 13,878,070 13,711,300 13,607,680 13,447,034

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

Royalties for Regions Fund - Regional Infrastructure and Headworks Account

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STATEMENT OF CASH FLOWSFOR THE YEAR ENDED 30 JUNE 2013

Consolidated Parent Note 2013 2012 2013 2012

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

Commonwealth grants and contributions 204,692 277,051 204,692 277,051Rental receipts 431,322 389,746 431,322 389,746Interest received 207,470 269,255 127,365 183,350Inventory receipts on sales 319,716 229,529 319,716 229,529Other receipts 17,619 20,073 73,619 93,543GST receipts on sales 1,770 8,007 1,770 8,007GST receipts from taxation authority 73,934 41,340 73,934 41,340Developers contributions 5,536 1,475 5,536 1,475

PaymentsEmployee benefits (76,349) (65,466) (76,476) (65,466)Accommodation (11,506) (9,097) (11,506) (9,097)Supplies & services (104,584) (93,394) (64,232) (60,720)Finance costs paid to

Commonwealth Government (20,237) (20,857) (20,237) (20,857)WA Treasury Corporation (155,056) (212,696) (155,056) (212,696)Other (975) (355) (975) (355)

Purchase and development of inventory (287,656) (167,039) (287,656) (167,039)GST payments on purchases (73,887) (57,566) (73,887) (57,566)GST payments to taxation authority (460) (539) (460) (539)New Living payments (33,743) (27,591) (33,743) (27,591)Rental property payments (342,830) (322,546) (342,830) (322,546)Other payments (282,571) (267,008) (282,571) (267,008)

Net cash used in operating activities 42 (127,795) (7,678) (111,675) 12,561

CASH FLOWS FROM INVESTING ACTIVITIESReceiptsProceeds from the sale of non-current physical assets 134,420 92,775 134,420 92,775Home loan repayments received 689,020 644,643 - 3Other investing receipts - - 435,000 625,000PaymentsPurchase of non-current physical assets 43 (374,528) (387,902) (372,920) (387,596)New home loans advanced (588,031) (120,866) (2) (3)Other investing payments (19,350) (18,000) (194,350) (278,000)Net cash used in investing activities (158,469) 210,650 2,148 52,179

CASH FLOWS FROM FINANCING ACTIVITIESReceiptsProceeds from borrowings

WA Treasury Corporation 225,000 280,000 225,000 280,000PaymentsRepayment of borrowings from

WA Treasury Corporation (476,245) (654,065) (476,245) (654,065)Commonwealth Government (14,406) (14,065) (14,406) (14,065)

Net cash used in financing activities (265,651) (388,130) (265,651) (388,130)

CASH FLOWS FROM STATE GOVERNMENTCapital contribution 106,303 171,521 106,303 171,521Royalties for Regions Fund 110,400 155,614 110,400 155,614Proceeds from grants 51,744 164,254 51,744 164,254Net cash provided by State Government 268,447 491,389 268,447 491,389Net increase in cash and cash equivalents (283,468) 306,231 (106,731) 167,999Cash and cash equivalents at the beginning of the period 669,841 363,610 254,789 86,790CASH AND CASH EQUIVALENTS AT THE END OF PERIOD 44 386,373 669,841 148,058 254,789

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

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NOTES TO THE FINANCIAL STATEMENTS

1. Australian Accounting Standards

General

The Housing Authority (the "parent entity") and controlled entities financial statements for the year ended 30 June2013 have been prepared in accordance with Australian Accounting Standards. The term 'Australian AccountingStandards' includes Standards and Interpretations issued by the Australian Accounting Standard Board (AASB).

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

Early adoption of standards

The Consolidated Entity cannot early adopt an Australian Accounting Standard unless specifically permitted by TI1101 ‘Application of Australian Accounting Standards and Other Pronouncements’. No Australian AccountingStandards that have been issued or amended but not operative have been early adopted by the Housing Authority forthe annual reporting period ended 30 June 2013.

2. Summary of significant accounting policies

The following accounting policies adopted by the Consolidated Entity are stated in order to assist in a generalunderstanding of the financial statements. Unless otherwise stated these policies are consistent with those adoptedin the previous year.

(a) General statement

The Housing Authority is a not-for-profit entity that prepares general purpose financial statements in accordancewith the Australian Accounting Standards, the Framework, Statements of Accounting Concepts and otherauthoritative pronouncements of the AASB as applied by the Treasurer’s instructions. Several of these aremodified by the Treasurer's Instructions to vary application, disclosure, format and wording.

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

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

(b) Basis of preparation

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

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2. Summary of significant accounting policies (continued)

(c) Basis of consolidation

The consolidated financial statements have been prepared by combining the financial statements of all entitiesthat comprise the Consolidated Entity, being The Housing Authority (the "parent entity") and its controlledentities, in accordance with AASB 127 “Consolidated and Separate Financial Statements” and modified byTreasurer's Instruction 1105. A list of controlled entities appears in note 2(d). Consistent accounting policieshave been applied in the preparation and presentation of the consolidated financial statements.

The consolidated financial statements include the information and results of each controlled entity from the dateon which the Housing Authority obtains control and until such time as the Housing Authority ceases to controlsuch entities. In preparing the consolidated financial statements, all inter entity balances and transactions, andunrealised profits arising within the Consolidated Entity are eliminated in full.

(d) Legal form of controlled entities

(i) The Keystart Housing Scheme includes a trust and company structure set up to enable funds to be raised through the Housing Authority at competitive rates and on lent to Keystart borrowers for the purchasing ofowner occupied homes.The structure comprises of:- The Keystart Housing Scheme Trust established by a Deed of Trust in the State of Western Australia, dated 5 April 1989 with Keystart Loans Ltd (a special purpose nominal capital company) as trustee and the Authority is the sole beneficiary of the trust. Keystart Scheme Management Pty Ltd has been appointed as Manager.- Keystart Support Trust - A special purpose trust used to provide financial support to the Scheme if required.The Housing Authority is the sole beneficiary of this trust.- Keystart Bonds Ltd - A special purpose nominal capital company being the Issuer with Oakvale Capital Ltd as treasury advisor.- Keystart Support Pty Ltd - A special purpose nominal capital company as trustee of the support trust. Themanager is Keystart Scheme Management Pty Ltd.- Keystart Support (Subsidiary) Pty Ltd - A special purpose nominal capital company created to assist KeystartSupport Pty Ltd in its obligations.Keystart Scheme Management Pty Ltd - A special purpose nominal capital company created to providemanagement services to the Keystart Trustee and group of companies.All of these Keystart trusts and companies have been established in the State of Western Australia. The financial transactions for these entities have no effect on the net profit of the Housing Authority. The HousingAuthority provides a support arrangement to the structure through the Support Trust.

(ii) Homeswest Loan Scheme Trust - A special purpose Trust established by a Trust Deed dated 19 September 1995to operate as an agent for the Housing Authority's home loan schemes. In its capacity as agent, the Trustreceives advances for the purpose of providing mortgages to Western Australians. The Housing Authority is thesole beneficiary of the Trust, and Keystart Loans Ltd is the trustee of the Trust.

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(e) Ownership interest (continued)

The Housing Authority is the instigator of the Keystart Housing Scheme and has effective control over the wholestructure either directly or indirectly through various agreements which constitute the structure and to which it is aparty. The Board of Directors of the Keystart group of companies comprise one Director from the Housing Authority andseven directors from the private sector. The ownership interest held by the Housing Authority in the companies is as follows:Keystart Bonds Ltd : 100% of the total shareholdingKeystart Loans Ltd : 100% of the total shareholdingKeystart Support Pty Ltd : 100% of the total shareholdingKeystart Support (Subsidiary) Pty Ltd: 100% of the total shareholdingKeystart Scheme Management Pty Ltd: 100% owned by Keystart Loans Ltd

Controlled entities and contribution to retained earnings.Contribution to Investment

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

2013 2012 2013 2012 2013 2012

Keystart Bonds Ltd 100 100 Nil Nil 6 6Keystart Loans Ltd 100 100 Nil Nil 6 6Keystart Support Pty Ltd 100 100 Nil Nil 2 2Keystart Support (Subsidiary) Pty Ltd 100 100 Nil Nil 2 2Keystart Housing Scheme Trust

Profits 8,368 18,829Transfer from Reserve 10 14

Keystart Support Trust Nil NilHomeswest Loan Scheme Trust Nil Nil

The Housing Authority is obligated to the Scheme in that it has given various representations and obligations toinvestors or other creditors to the extent that it will meet cash shortfalls and losses from the Scheme. Funding forKeystart is through the Housing Authority with no borrowings outstanding through Keystart Bonds Ltd. The HousingAuthority's obligations to the various participants are contained in a Support Agreement of the Scheme. No subsidieswere required from the Housing Authority for the 2012-13 financial year.

(f) Property, plant and equipment

Capitalisation/expensing of assets

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

Initial recognition and measurement

All items of property, plant and equipment are initially recognised at cost.

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

Subsequent measurement

Subsequent to initial recognition as an asset, the revaluation model is used for the measurement of land, buildingsand the cost model for all other property, plant and equipment. Land and buildings are carried at fair value lessaccumulated depreciation on buildings and accumulated impairment losses. All other items of property, plant andequipment are stated at historical cost less accumulated depreciation and accumulated impairment losses.

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

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(f) Property, plant and equipment (continued)

Where market-based evidence is available, the fair value of land and buildings is determined on the basis of currentmarket buying values determined by reference to recent market transactions. Where market-based evidence is notavailable, the fair value of land and buildings is determined on the basis of existing use. This normally applies wherebuildings are specialised or where land use is restricted. Fair value for existing use assets is determined by referenceto the cost of replacing the remaining future economic benefits embodied in the asset, i.e. the depreciatedreplacement cost.

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

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

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

Community Housing properties include properties acquired under the Commonwealth and State programs of CrisisAccommodation and Community Housing and Joint Charity Properties.

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

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

Depreciation and amortisation

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

Major depreciation rates are:2013 2012

Rental properties 2% 2%Community Housing properties 2% 2%Shared Equity properties 3% 3%Other properties - Commercial properties 2% 2% - Office properties 5% 5%Plant & equipment 10% - 50% 10% - 50%Intangible assets 20% - 50% 20% - 50%

(g) Buildings under construction

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

(h) Inventories

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

Non-current inventories consists of both broad hectare land and lots under development, excluding lots available forexternal sale (current inventory), which are valued at acquisition cost plus capitalised costs. Developed lots on whichdwellings are subsequently constructed by the Housing Authority are transferred to the stock of Rental properties atfair value as determined by the Valuer General at the date of practical completion. The difference between thisvaluation and the cost of the land transferred to Rental properties represents a revaluation increment which is broughtto account as an increase in the asset revaluation reserve.

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(h) Inventories (continued)

Joint venture land

Joint venture land represents the Housing Authority's equity in joint venture land development projects.Development costs represent the agreed proportion of development costs incurred plus capitalised costs. Landowned by the Housing Authority is shown at cost plus capitalised costs.

Interests in joint venture operations have been incorporated in the financial statements by including the HousingAuthority's share of assets employed in the joint ventures, the share of liabilities incurred in relation to the jointventures and the share of any expenses incurred in relation to the joint ventures in their respective classificationcategories. Details of the Housing Authority's interests are set out in note 21.

(i) Loans and receivables

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

Receivables land - are carried at nominal amounts. Sales and receivables are recognised once the debtor hasobtained financing and the sale has become unconditional. Land sales are on a 30 day term once the sale hasbecome unconditional.

Receivables rent from tenants - are carried at nominal amounts due less any provision for impairment. Rent receivable is due weekly in advance.

Receivables rental bonds - are carried at nominal amounts due less any provision for impairment. Rental bondassistance receivables represent advances made to qualifying persons for the purpose of renting propertiesexternal to the Housing Authority. Each advance is repayable in minimum fortnightly payments of $15 for loansgranted prior to 1 July 2009 and $25 per fortnight for loans granted from 1 July 2009 with remaining balance beingcollectable on vacation of property unless an arrangement is entered into to repay over time.

Loans

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted inan active market. The collateral held for these loans is by a registered mortgage held over the property.

Recognition and derecognitionFinancial assets that are carried at fair value through profit or loss are initially recognised at fair value and transactioncosts are expensed in the Statement of Comprehensive Income. Loans and receivables are initially recognised at fairvalue. Transaction costs, including loan origination expenses, are included in the measurement of all loans andadvances. The loan origination fees are being amortised in equal instalments over the average life of the loans. Regular way purchases and sales of financial assets are recognised on trade date, which is the date on which theConsolidated Entity commits to purchase or sell the assets.

Financial assets are derecognised when the right to receive cash flows from the financial assets have expired or havebeen transferred and the Consolidated Entity has transferred substantially all the risks and rewards of ownership.

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

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

Fair valueThe fair value of the financial assets traded in active markets is based on quoted market prices at the Statement ofFinancial Position date. If the market for a financial asset is not active (and for unlisted securities), the ConsolidatedEntity establishes fair value by using valuation techniques. These include the use of recent arm’s length transactions,reference to other instruments that are substantially the same, discounted cash flow analysis, and option pricingmodels making maximum use of market inputs and relying as little as possible on entity-specific inputs.

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(i) Loans and receivables (continued)

Impairment of loansThe Consolidated Entity assesses at the end of the reporting period whether there is objective evidence that afinancial asset or group of financial assets is impaired. In case of loans and receivables, an allowance for impairmentis made when there is objective evidence that the loan will not be collectable. When a receivable is impaired, theConsolidated Entity reduces the carrying amount to its recoverable amount, being the estimated future cash flowdiscounted at the original effective interest rate of the instrument and continues unwinding the discount as interestincome.

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

(j) Derivative financial instruments and hedging

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

(k) Intangible assets

Computing software and development

Capitalisation/expensing of assetsAcquisition of intangible assets costing less than $5,000 are expensed in the year of acquisition. Where software isan integral part of the related hardware, it is treated as property, plant and equipment. Where the software is not anintegral part of the related hardware, it is treated as an intangible asset.

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

Costs associated with the acquisition and development of computer systems and software are amortised from thecommencement of live production of the system. Development costs are deferred to future periods to the extent thatfuture economic benefits, are expected beyond any reasonable doubt, to be equal to or exceed those costs. Deferredcosts are amortised, from the commencement of live production of the system, on a straight line basis over the periodof their expected benefit. Intangible assets of $8,807,232 at 30 June 2013 relating to 3 assets were not yet available for use.

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

2013 2012Computing software 20% - 50% 20% - 50%Computing development 20% 20%

(l) Other financial assets

Deposits at callThe fair values of the Bank bills are determined using generally accepted pricing models based on discounted cashflow analysis using prices from observable current market transactions.

Investment in associateAssociates are all entities over which the Housing Authority has significant influence but not control or joint control.The investments in Goldmaster Enterprises Pty Ltd is classified as a business associate within AASB 128'Investment in Associates'. The principal place of business is Success, Perth, Western Australia.

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(l) Other financial assets (continued)

Parent Financial StatementsThe investment in associate is accounted for in the parent financial statements at cost. The Housing Authorityrecognises dividends from the associate when its right to receive the dividend is established.

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

Consolidated Financial StatementsThe investment is accounted for in the consolidated view of the financial statements using the "Equity" method ofaccounting after initially being recognised at cost. Any goodwill is included in the carrying amount of theinvestment.

The Housing Authority's share of its associate's post-acquisition profits or losses is recognised in profit or loss, andits share of post-acquisition other comprehensive income is recognised in other comprehensive income. Thecumulative post- acquisition movements are adjusted against the carrying amount of the investment. Dividendsreceivable from associates are recognised as reduction in the carrying amount of the investment.

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

Unrealised gains on transactions between the Housing Authority and its associates are eliminated to the extent of theHousing Authority's interest in the associates. Unrealised losses are also eliminated unless the transaction providesevidence of an impairment of the asset transferred. Accounting policies of associates have been changed wherenecessary to ensure consistency with the policies adopted by the Consolidated Entity.

(m) Non-current assets held for sale

Non-current assets are classified as assets held for sale if their carrying amount is to be recovered principally througha sale transaction rather than through continuing use, the asset is available for immediate sale and the sale is highlyprobable. Non-current assets held for sale are recognised at the lower of carrying amount or fair value less costs tosell and are disclosed separately in the Statement of Financial Position. Assets classified as held for sale are notdepreciated or amortised.

(n) Impairment of assets

Property, plant and equipment and intangible assets are tested for any indication of impairment at the end of eachreporting period. Where there is an indication of impairment, the recoverable amount is estimated. Where therecoverable amount is less than the carrying amount, the asset is considered impaired and is written down to therecoverable amount and an impairment loss is recognised. As the Consolidated Entity is a not-for-profit entity, unlessan asset has been identified as a surplus asset, the recoverable amount is the higher of an asset’s fair value lesscosts to sell and depreciated replacement cost.

The risk of impairment is generally limited to circumstances where an asset’s depreciation is materially understated,where the replacement cost is falling or where there is a significant change in useful life. Each relevant class ofassets is reviewed annually to verify that the accumulated depreciation/amortisation reflects the level of consumptionor expiration of the asset's future economic benefits and to evaluate any impairment risk from falling replacementcosts.

An impairment loss shall be recognised immediately in profit or loss, unless the asset is carried at revalued amount inaccordance with another Standard (eg in accordance with the revaluation model in AASB 116). Any impairment loss ofa revalued asset shall be treated as a revaluation decrease in accordance with that other Standard.

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(o) Payables

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

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

(p) Borrowings

All borrowings are initially recognised at fair value. Subsequent measurement is at amortised cost using the effectiveinterest rate method. Interest is charged as an expense as it accrues.

Terms

Borrowings - WATC are variable rate borrowings and repayable when due. Fixed rate borrowings are subject tointerest payments only with the full loan being due on maturity. Borrowings - Commonwealth Advances are fixed rate borrowings and repayable on an annual basis withfinal instalments being due between July 2013 and June 2042.

(q) Income

Revenue recognition

Revenue is recognised and measured at the fair value of consideration received or receivable. Revenue is recognisedfor the major business activities as follows:

(i) Rental property revenueThe Housing Authority charges rents in accordance with section 30 of the Housing Act. The basis for the amountof rent to be charged is determined from market rent information received from the Valuer General and dueconsideration to regional rental markets. Rental property revenue represents the net rental revenue which consistsof market rents less vacancies, concessions and rental subsidies granted throughout the year. Rental income isrecognised on a straight-line basis over the lease term.

(ii) SalesRevenue from land sales is recognised when the contract for sale becomes unconditional.

(iii) Grants, donations, gifts and other non-reciprocal contributions.Revenue is recognised at fair value when the Consolidated Entity obtains control over the assets comprising thecontributions, usually when cash is received.

Other non-reciprocal contributions that are not contributions by owners are recognised at their fair value. Contributions of services are only recognised when a fair value can be reliably determined and the services wouldbe purchased if not donated.

Royalties for Regions funds are recognised as revenue at fair value in the period in which the Housing Authority obtains control over the funds. The Housing Authority obtains control of the funds at the time the funds aredeposited into the Housing Authority's bank account.

(iv) InterestInterest income is recognised as interest accrues using the effective interest rate method.

Gains

Realised and unrealised gains are usually recognised on a net basis. These include gains arising on the disposal ofnon-current assets.

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(r) Insurance

In accordance with Treasurer's Instruction 812 the Housing Authority maintains an appropriate level of insurance coverfor insurable risks.

Effective from 1 July 2004 the Housing Authority has adopted a policy of not insuring its residential propertyassets as it is considered uneconomical. As part of the Housing Authority's ongoing risk management processa comprehensive analysis of the Housing Authority's risk exposure to its residential property assets was completed during 2012. The Housing Authority's residential property assets continue to remain not insured as it is considered uneconomical. The Housing Authority's other insurance programs continue to be a combination of insurancepolicies provided by commercial insurance providers and the Western Australian Government's RiskCover Fund.

As per Treasurer’s Instruction 825, Insurance is complemented by a comprehensive approach to Risk Management and prudent management policies and practices.

(s) Provisions

Provisions are liabilities of uncertain timing or amount. The Housing Authority only recognises a provision where thereis a present legal, equitable or constructive obligation as a result of a past event and when the outflow of resourcesembodying economic benefits is probable and a reliable estimate can be made of the amount of the obligation.Provisions are reviewed at the end of each reporting period and adjusted to reflect the current best estimate.

(i) Employee benefits

All annual leave and long service leave provisions are in respect of employees' services up to the end of the reporting period.

Annual leave

The liability for annual leave that is expected to be settled within 12 months after the end of reporting period isrecognised and measured at the undiscounted amounts expected to be paid when the liability is settled. Annualleave that are not expected to be settled within 12 months after the end of reporting period is recognised andmeasured at the present value of amounts expected to be paid when the liabilities are settled using theremuneration rate expected to apply at the time of settlement.

When assessing expected future payments consideration is given to expected future wage and salary levels including non-salary components such as employer superannuation contributions as well as the experience ofemployee departures and periods of service.

The expected future payments are discounted to present value using market yields at the end of the reportingperiod on national government bonds with terms to maturity that match, as closely as possible, the estimatedfuture cash outflows.

The provision for annual leave is classified as a current liability as the Housing Authority does not have anunconditional right to defer settlement of the liability for at least 12 months after the reporting period.

Long service leave

The liability for long service leave that is expected to be settled within 12 months after the end of reporting periodis recognised and measured at the present value of amounts expected to be paid when the liabilities are settledusing the remuneration rate expected to apply at the time of settlement.

Long service leave that is not expected to be settled within 12 months after the end of the reporting period is recognised and measured at the present value of amounts expected to be paid when the liabilities are settled using the remuneration rate expected to apply at the time of settlement.

When assessing expected future payments consideration is given to expected future wage and salary levelsincluding non-salary components such as employer superannuation contributions, as well as the experience ofemployee departures and periods of service. The expected future payments are discounted using market yieldsat the end of the reporting period on national government bonds with terms to maturity that match, as closely aspossible, the estimated future cash outflows.

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(s) Provisions (continued)

Unconditional long service leave provisions are classified as current liabilities as the Housing Authority does nothave an unconditional right to defer settlement of the liability for at least 12 months after the end of reportingperiod. Pre-conditional and Conditional long service leave provisions are classified as non-current liabilitiesbecause the Housing Authority has an unconditional right to defer the settlement of the liabilities until theemployee has completed the requisite years of service.

Superannuation

The Government Employees Superannuation Board (GESB) and other fund providers administer public sectorsuperannuation arrangements in Western Australia in accordance with legislative requirements. Eligibility criteria formembership in particular schemes for public sector employees varies according to commencement andimplementation dates.

Eligible employees contribute to the Pension Scheme, a defined benefit pension scheme closed to newmembers, since 1987, or to the Gold State Superannuation Scheme (GSS), a defined benefit lump sum schemeclosed to new members since 1995. Employees commencing employment prior to 16 April 2007 who were notmembers of either the Pension Scheme or the GSS Schemes became non-contributory members of the WestState Superannuation Scheme (WSS). Employees commencing employment on or after 16 April 2007 becamemembers of the GESB Super Scheme (GESBS). From 30 March 2012, existing members of WSS or GESB andnew employees became able to choose their preferred superannuation fund. The Housing Authority makesconcurrent contributions to GESB or other funds on behalf of employees in compliance with the CommonwealthGovernment’s Superannuation Guarantee (Administration) Act 1992. Contributions to these accumulationschemes extinguish the Housing Authority's liability for superannuation charges in respect of employees who arenot members of the Pension Scheme or GSS.

The Pension Scheme and the pre-transfer benefit for employees who transferred to the GSS Scheme are definedbenefit schemes. These benefits are wholly unfunded and the liabilities for future payments are provided for at theend of the reporting period. The liabilities under these schemes have been calculated separately for each schemeannually by external actuaries using the projected unit credit method.

The expected future payments are discounted to present value using market yields at the end of the reportingperiod on national government bonds with terms to maturity that match, as closely as possible, the estimatedfuture cash outflows.

The GSS Scheme, the WSS Scheme, and the GESBS Scheme, where the current service superannuationcharge is paid by the Authority to the GESB, are defined contribution schemes. The liabilities for current servicesuperannuation charges under the GSS Scheme, the WSS Scheme, and the GESBS Scheme are extinguishedby the concurrent payment of employer contributions to the GESB.

The Gold State Superannuation Scheme is a defined benefit scheme for the purposes of employees andwhole-of-government reporting. However, from an agency perspective, apart from the transfer benefits, it is adefined contribution plan under AASB 119.

(ii) Other

Employment on-costs

Employment on-costs, including workers’ compensation insurance and payroll tax, are not employee benefits andare recognised separately as liabilities and expenses when the employment to which they relate has occurred.Employment on-costs are included as part of the Authority’s ‘Other expenses' and the related liability is includedin Employment on-costs provision.

Development levies

Is a provision calculated on lots sold and community projects representing fencing and landscaping incentives forfirst home buyers to purchase Housing Authority land. The provision represents the estimated liability at balancesheet date for future claims by the purchasers against the Housing Authority.

(t) Accrued salaries

Accrued salaries represent the amount due to staff but unpaid at the end of the financial year. Accrued salaries aresettled within a fortnight of the financial year end. The Housing Authority considers the carrying amount of accruedsalaries to be equivalent to its fair value.

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(u) Borrowing costsBorrowing costs are expensed when incurred and represents the total finance costs in the Statement ofComprehensive Income.

(v) Superannuation expenseThe superannuation expense of the defined benefit plans is made up of the following elements:

• Current service cost;• Interest cost (unwinding of the discount);• Actuarial gains and losses; and• Past service cost.

Actuarial gains and losses of the defined benefit plans are recognised immediately as income or expense in profit orloss.

The superannuation expense of the defined contribution plans is recognised as and when the contributions fall due andforms part of the 'Employee Benefits expense'.

See also note 2(s)(i) ‘Provisions – Employee Benefits’ under the heading “Superannuation”.

(w) Leases

The Housing Authority has entered into a number of operating lease arrangements for buildings and vehicles wherethe lessors effectively retain the majority of the risks and benefits incidental to ownership of the items held under theoperating leases. Equal instalments of the lease payments are charged to the Statement of Comprehensive Incomeover the lease term, as this is representative of the pattern of benefits to be derived from the leased property.

(x) Rental expenses

Expenses incurred relating to the Housing Authority's owned or leased rental properties are accounted for in theRental expenses line of the Statement of Comprehensive Income. These expenses which directly relate to the RentalProgram include maintenance, rates, insurance expenses and renovations and improvements.

(y) New Living expenses

Expenses incurred relating to the Housing Authority's owned rental properties involved in the New Living program areaccounted for in the New Living expenses line of the Statement of Comprehensive Income. These expenses includerenovations and minor improvements.

(z) Comparative figures

Comparative figures are, where appropriate, reclassified to be comparable with the figures presented in the current financial year.

(aa) Segment Information

The Consolidated Entity's operations are divided into four specific services. These are:Rental Public Housing - providing access to affordable rental accommodation for low to moderate income Western Australians;Rental Government Employees - providing access to rental accommodation for government employees inregional areas;Loans - providing realistic home ownership opportunities for low to moderate income Western Australians provided bythe Housing Authority and through its Keystart Housing Scheme;Land operations - provision of low to medium priced subdivided land for sale.

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(ab) Financial Instruments (Refer to note 52 for quantitative disclosure including interest rate risk and liquidity risk analysis.)

In addition to cash, the Consolidated Entity has three categories of financial instruments:

Loans and receivablesFinancial liabilitiesFinancial assets at fair value through profit and loss

These have been disaggregated into the following classes:

Financial AssetsCash and cash equivalentsLoans and receivablesShort term deposits

Financial LiabilitiesPayablesWATC borrowingsCommonwealth borrowings

Initial recognition and measurement of financial instruments is at fair value which normally equates to the transactioncost or the face value. Subsequent measurement is at amortised cost using the effective interest rate method. TheConsolidated Entity does not enter into financial instruments for speculative purposes.

The fair value of short-term receivables and payables is the transaction cost or the face value because there is no interestrate applicable and subsequent measurement is not required as the effect of discounting is not material.

Keystart

The entity's activities expose it to a variety of financial risks; market risk (including interest rate risk), credit riskand liquidity risk. The overall risk management program focuses on the unpredictability of financial markets andseeks to minimise potential adverse effects on the financial performance of the entity. The entity uses different methods to measure different types of risk to which it is exposed. These methods include sensitivity analysis(specifically VaR - Value at Risk model) in the case of interest rate risk and ageing analysis for credit risk and beta analysis in respect of investment portfolios to determine market risk.

Risk management is carried out by the Treasury Committee under policies approved by the Keystart Board ofDirectors. The Treasury Committee identifies, evaluates and hedges financial risks in close co-operation with theentity’s operating units. The Keystart Board provides written principles for overall risk management, as well aspolicies covering specific areas, such as interest rate risk, credit risk, use of non-derivative financial instruments and investment of excess liquidity.

Market Risk

Keystart(i) Interest rate risk

Borrowings issued at short term rates expose the entity to interest rate risk if changes to rates are not passed on tocustomers. Borrowings issued at fixed rates expose the entity to fair value interest rate risk. The entity’s policy is tohedge (i.e fix) a portion of its borrowings portfolio within the following hedge ratio limits of total liabilities:

HEDGE RATIO LIMITSBM Min Max BM = Benchmark

0-1 Year 55% 0% 70%1-2 Years 20% 0% 30%2-3 Years 10% 0% 20%3+ Years 0% 0% 15%

The ratio of hedging applied is calculated with reference to the borrowings only, and does not factor the loan assetsheld by the entity.

During the financial year ending 30 June 2013 and the prior financial year, the entity’s borrowings weredenominated in Australian Dollars.

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(ab) Financial Instruments (continued)(ii) Summarised sensitivity analysis

The Consolidated Entity uses VaR Analysis to measure its sensitivity to movements in interest rates. VaR modelsare designed to measure market risk in a normal market environment. The VaR risk measure estimates the potentialloss in profit over a given holding period for a specific confidence level. The VaR methodology is a statisticallydefined, probability - based approach that takes into account market volatilities as well as risk diversification byrecognising offsetting positions and correlations between products. The main risk arises where the ConsolidatedEntity cannot pass on changes in borrowing interest rates to its loan receivables. The VaR for the ConsolidatedEntity is traditionally low because the Consolidated Entity is able to pass on changes in its borrowing interest rates.

Based on a 99% confidence level and a 250 day observation period, the VaR for Keystart was favourable at 0.19% ofits capital at 30 June 2013 (2012: 0.23%)

The limitation of the VaR model is that historical data may not provide the best estimates of the risk factor changes inthe future and may fail to capture the risk of possible extreme adverse market movements which have not occurred inpast calculations.

2013Historical VaR (99%, 20 day) By risk type Average Minimum Maximum Year End

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

Total VaR Exposure 1,081 381 2,562 5342012Historical VaR (99%, 20 day) By risk type Average Minimum Maximum Year End

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

Total VaR Exposure 1,262 317 2,821 618

Credit Risk ExposureThe Consolidated Entity's maximum exposures to credit risk at reporting date in relation to each class of recognisedfinancial asset is the carrying amount of those assets as indicated in the Statement of Financial Position. TheConsolidated Entity's credit risk is spread over a significant number of parties and is concentrated only to the extentof the WA residential market. The Consolidated Entity is therefore not materially exposed to any particular individualparty or group of parties.

The Consolidated Entity's maximum credit risk exposure in relation to these is as follows:

The Consolidated Entity minimises concentrations of credit risk in relation to loans and advances by undertakingtransactions with a number of borrowers, within specified maximum limits based upon the assessment of eachborrower's ability to service a mortgage. The Consolidated Entity concentrates 100% of its lending to purchase ofresidential real estate within Western Australia. Security is provided to the Consolidated Entity through a mortgageover the property.

The maximum exposure to credit risk at reporting date is the higher of the carrying value and fair value of each classof receivables.

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2. Summary of significant accounting policies (continued)(ab) Financial Instruments (continued)

KeystartCredit risk arises from transactions that give rise to actual, contingent or potential claims against any borrower orcounterparty.

Credit risk is managed on a group basis through having prudential lending policies to mitigate borrower risk. Thisincludes having maximum Debt Servicing Ratios and strict income verification procedures. In addition to thesecredit policies, Keystart maintains adequate provisions for bad and doubtful debts and capital adequacy ratios tomanage the effects of any losses. Counterparty credit risk arises from cash and cash equivalents, loans andreceivables and deposits with banks and financial institutions including outstanding receivables and committedtransactions. For banks and financial institutions, only independently rated parties with a minimum rating of ‘A’ areaccepted. Individual risk limits are set based on internal or external ratings in accordance with limits set by theBoard. Counterparties must have Standard and Poor’s long term rating of at least “A+” for any derivativetransaction executed and “A” (or better) for authorised investments.

Housing AuthorityIn relation to other receivables (including rental and bond debtors), the Housing Authority has a minimal credit riskdue to the receivables debt being spread across a number of debtors exceeding 45,000. The collectability of rentalreceivables is reviewed on an ongoing basis in accordance with the Housing Authority's policy and proceduremanuals. These policy and procedure manuals are reviewed by Management on a regular basis.

Liquidity RiskThe Consolidated Entity is exposed to liquidity risk in respect of its payable, accrued employee expenses andgovernment borrowings, in that the Consolidated Entity needs to be able to pay these amounts when they fall due. The Consolidated Entity has implemented and maintains robust cash management practices, including day-to-daymonitoring and regular liquidity reporting to the Accountable Officer. These practices ensure cash resources areadequate to meet future commitments.

KeystartPrudent liquidity risk management implies maintaining sufficient cash and marketable securities, the availability offunding through an adequate amount of committed credit facilities and the ability to close out market positions.

Due to the dynamic nature of the underlying businesses, the Treasury Committee aims at maintaining flexibility infunding by keeping committed credit lines available.

Management monitors rolling forecasts of the entity’s liquidity reserve on the basis of expected cash flow.

For the purpose of the Statement of Cash Flows, cash and cash equivalents assets comprise cash on hand andshort-term deposits with original maturities of three months or less that are readily convertible to a known amount ofcash and which are subject to insignificant risk of changes in value.

(ac) Capitalisation policy

The cost of non-current assets constructed by the Housing Authority includes the cost of all materials used in construction,direct labour costs incurred on the project during construction and an appropriate proportion of overheads.

(ad) Income tax

The Consolidated Entity is an income tax exempt body.

(ae) Contributed equity

AASB Interpretation 1038 ‘Contributions by Owners Made to Wholly-Owned Public Sector Entities’ requires transfersin the nature of equity contributions to be designated by the Government (the owner) as contributions by owners (atthe time of, or prior to transfer) before such transfers can be recognised as equity contributions. Capital contributions(appropriations) have been designated as contributions by owners by TI 955 ‘Contributions by Owners made to WhollyOwned Public Sector Entities’ and have been credited directly to Contributed Equity.

Transfer of net assets to/from other agencies are designated as contributions by owners where the transfers arenon-discretionary and non-reciprocal.

(af) Assets and services received free of charge or for nominal cost

Assets or services received free of charge or for nominal cost are recognised as income at the fair value of the assetsand/or the fair value of those services that can be reliably measured and the Authority would otherwise pay for.A corresponding expense is recognised for services received. Receipts of assets are recognised in the Statement of Financial Position

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3. Disclosure of changes in accounting policy and estimates.

Initial application of an Australian Accounting Standard

The Housing Authority has applied the following Australian Accounting Standards effective for annual reporting periodsbeginning on or after 1 July 2012 that impacted the Housing Authority.

AASB 2011-9 Amendments to Australian Accounting Standards - Presentation of Items of Other ComprehensiveIncome [AASB 1, 5, 7, 101, 112, 120, 121, 132, 133, 134, 1039 & 1049]

This Standard requires to group items presented in other comprehensive income on the basis of whether they arepotentially reclassifiable to profit or loss subsequently (reclassification adjustments). There are no financial impactto the Housing Authority.

Future impact of Australian Accounting Standards not yet operative

The Housing Authority cannot early adopt an Australian Accounting Standard unless specifically permitted by TI 1101‘Application of Australian Accounting Standards and Other Pronouncements’. Consequently, the Housing Authority has notapplied early any of the following Australian Accounting Standards that have been issued that may impact the HousingAuthority. Where applicable, the Housing Authority plans to apply these Standards from their application date.

Operativeforreportingperiodsbeginningon/after

AASB 9 Financial Instruments - This Standard supersedes AASB 139 Financial Instruments: 1 Jan 2015Recognition and Measurement, introducing a number of changes to accounting treatments. AASB2012-6 Amendments to Australian Accounting Standards - Mandatory Effective Date of AASB 9 andTransition Disclosures amended the mandatory application date of this Standard to 1 January 2015.The Housing Authority has not yet determined the application or the potential impact of the Standard.

AASB 10 Consolidated Financial Statements - This Standard supersedes requirements under AASB 1 Jan 2014127 Consolidated and Separate Financial Statements and Int 112 Consolidation - Special PurposeEntities, introducing a number of changes to accounting treatments. Mandatory application of thisStandard was deferred by one year for not-for-profit entities by AASB 2012-10 Amendments toAustralian Accounting Standards - Transition Guidance and Other Amendments. The Authority hasnot yet determined the application or the potential impact of the Standard.

AASB 11 Joint Arrangements - This Standard supersedes AASB 131 Interest in Joint Ventures, 1 Jan 2014introducing a number of changes to accounting treatments. Mandatory application of this Standardwas deferred by one year for not-for-profit entities by AASB 2012-10. There is no financial impact.

AASB 12 Disclosure of Interest in Other Entities - This Standard supersedes disclosure requirements 1 Jan 2014under AASB 127 Consolidated and Separate Financial Statements and AASB 131 Interest in JointVentures. Mandatory application of this Standard was deferred by one year for not-for-profit entities byAASF 2012-10. The Authority has not yet determined the application or the potential impact of theStandard.

AASB 13 Fair Value Measurement - This Standard defines fair value, sets out a framework for 1 Jan 2013measuring fair value and requires disclosures about fair value measurements. There is no financialimpact.

AASB 119 Employee Benefits This Standard supersedes AASB 119 (October 2010). As the 1 Jan 2013Authority does not operate a define benefit plan the impact of the change is limited to measuringannual leave as a long-term employee benefit. The effect of discounting annual leave and long serviceleave liabilities that were previously measured at the undiscounted amounts is not material.

AASB 127 Separate Financial Statements - This Standard supersedes requirements under AASB 127 1 Jan 2014Consolidation and Separate Financial Statements, introducing a number of changes to accountingtreatments. Mandatory application of this Standard was deferred by one year for not-for-profit entities byAASB 2012-10. The Authority has not yet determined the application or the potential impact of theStandard.

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3. Disclosure of changes in accounting policy and estimates. (continued)

Future impact of Australian Accounting Standards not yet operative (continued)Operativeforreportingperiodsbeginningon/after

AASB 128 Investment in Associates and Joint Ventures - This Standard supersedes AASB 128 1 Jan 2014Investments in Associates, introducing a number of changes to accounting treatments. This Standardwas issued in August 2011. The Authority has not yet determined the application or the potentialimpact of the Standard.

AASB 2010-7 Amendments to Australian Accounting Standards arising from AASB 9 (December 1 Jan 20152010) [AASB 1, 3, 4, 7, 101, 102, 108, 112, 118, 120, 121, 127, 128, 131, 132, 136, 137, 139, 1023 &1038 and Int 2, 5, 10, 12, 19 & 127] This Standard makes consequential amendments to otherAustralian Accounting Standards and Interpretations as a result of issuing AASB 9 in December2010. AASB 2012-6 amended the mandatory application date of this Standard to 1 January 2015. The Authority has not yet determined the application or the potential impact of the Standard.

AASB 2011-7 Amendments to Australian Accounting Standards arising from the Consolidation and 1 Jan 2013Joint Venture Arrangements Standards [AASB 1, 2, 3, 5, 7, 9, 2009-11, 101, 107, 112, 118, 121, 124,132, 133, 136 138, 139, 1023 & 1038 and Int 5, 9, 16 & 17] This Standard gives effect toconsequential changes arising from the issuance of AASB 10, AASB 11, AASB 127 SeparateFinancial Statements and AASB 128 Investments in Associates and Joint Ventures. For not-for-profitentities it applies to annual reporting period beginning on or after 1 January 2014. The Authority hasnot yet determined the application or the potential impact of the Standard.

AASB 2011-8 Amendments to Australian Accounting Standards arising from AASB13 [AASB 1, 2, 3, 1 Jan 20134, 5, 7, 101, 102, 108, 110, 116, 117, 118, 119, 120, 120, 121, 128, 131, 132, 133, 134, 136, 138,138, 139, 140, 141, 1004, 1023 7 1038 and Int 2, 4, 12, 13, 14, 17, 19, 131 & 132]. This Standardreplaces the existing definition and fair value guidance in other Australian Accounting Standards andInterpretations as the results of issuing AASB 13 in September 2011. There is no financial impact.

AASB 2011-10 Amendments to Australian Accounting Standards arising from AASB 119 (September 1 Jan 20132011) [AASB 1, 8, 101, 124, 134, 1049, & 2011-8 and Int 14] This Standard make amendments toother Australian Accounting Standards and Interpretations as a result of issuing AASB 119 inSeptember 2011. There is limited financial impact.

AASB 2012-2 Amendments to Australian Accounting Standards - Disclosures - Offsetting Financial 1 Jan 2013Assets and Financial Liabilities [AASB 7 & 132]. This Standard amends the required disclosures inAASB 7 to include information that will enable users of an entity's financial statements to evaluate theeffect or potential effect of netting arrangements, including right of set-off associated with the entity'srecognised financial assets and recognised financial liabilities, on the entity's financial position. Thereis no financial impact.

AASB 2012-3 Amendments to Australian Accounting Standards - Offsetting Financial Assets and 1 Jan 2014Financial Liabilities [AASB132]. This Standard adds application guidance to AASB 132 to addressinconsistencies identified in applying some of the offsetting criteria, including clarifying the meaningsof 'currently has a legally enforceable right of set-of' and that some gross settlement systems may beconsidered equivalent to net settlement. There is no financial impact.

AASB 2012-5 Amendments to Australian Accounting Standards arising from Annual Improvements 1 Jan 20132009-11 Cycle [AASB 1, 101, 116, 132 & 134 and Int 2]. This Standard makes amendments to theAustralian Accounting Standards and Interpretations as a consequence of the annual improvementsprocess. There is no financial impact.

AASB 2012-6 Amendments to Australian Accounting Standards - Mandatory Effective Date of AASB 1 Jan 20139 and Transition Disclosures [AASB 9, 2009-11, 2010-7, 2011-7 & 2011-8]. This Standard amends themandatory effective date of AASB 9 Financial Instruments to 1 January 2015. Further amendmentsare also made to consequential amendments arising from AASB 9 that will now apply from 1 January2015 and to consequential amendments arising out of the Standards that will still apply from 1January 2013. There is no financial impact.

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Future impact of Australian Accounting Standards not yet operative (continued)Operativeforreportingperiodsbeginningon/after

AASB 2012-10 Amendments to Australian Accounting Standards - Transition Guidance and Other 1 Jan 2013Amendments [AASB 1, 5, 7, 8, 10, 11, 12, 13, 101, 102, 108, 112, 118, 119, 127, 128, 132, 133, 134,137, 1023, 1038, 1039, 1049 & 2011-7 and Int 12]. This Standard makes amendments to ASB 10and related Standards to revise the transition guidance relevant to the initial application of thoseStandards, and to clarify the circumstances in which adjustments to an entity's previous accountingfor its involvement with other entities are required and the timing of such adjustments. The Standardwas issued in December 2012. The Authority has not yet determined the application or the potentialimpact of the Standard.

Correction of Prior Year Error

Correction of error in recording the revaluation reserve on land relating to rental properties that were demolishedin prior periods. During the years ended 30 June 2011 and 30 June 2012, rental properties were demolished and the revaluation reserve relating to the land was wrongly taken into account as Other Comprehensive Income and the land was transferred to Non-Current Inventory at valuation. The error had the effect of overstating the Retained Earnings and Non-Current Inventory and understating Revaluation Reserve and Rental Properties.

The details of the rental properties demolished in prior periods is reflected as follows -

Year No of Cost of Value of LandProperties Land Land Revaluation

Demolished Reserve$000 $000 $000

2012 126 1,211 28,614 27,403

2011 105 388 22,002 21,613

The error impacts on financial years 2010-11 and 2011-12. Accordingly, the Statement of Financial Position andStatement of Comprehensive Income for these years have been restated as follows -

Consolidated Actual Correction Restated 30 June 2012 Comparative year. 2012 of error 2012

Note $000 $000 $000Changes to Statement of Financial Position 2012

Non Current Inventory 21 541,015 (50,616) 490,399Rental Properties 27 11,917,323 50,616 11,967,939Reserves 40 8,886,979 49,016 8,935,995Retained Earnings 41 2,989,551 (50,957) 2,938,594

Changes to Statement of Comprehensive Income 2012Changes in asset revaluation surplus 40 306,538 27,403 333,941

30 June 2011 Comparative year. Actual Correction Restated 2011 of error 2011




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Correction of Prior Year Error (continued)

Parent Actual Correction Restated 30 June 2012 Comparative year. 2012 of error 2012




30 June 2011 Comparative year. Actual Correction Restated 2011 of error 2011




4. Key sources of estimation uncertainty

Defined benefit superannuation plansIn determining the Housing Authority’s ultimate cost of its defined benefit superannuation plans, actuarial assumptions arerequired to be made. The principal actuarial assumptions used are disclosed in note 37 ‘Provisions’.

Long service leave liabilityIn calculating the Housing Authority’s long service leave provision, actuarial assumptions are required to be made. Theprincipal actuarial assumptions used are disclosed in note 37 ‘Provisions’.

Depreciation and amortisationThe depreciation and amortisation rates for the Consolidated Entity have been reviewed. The estimation of the useful livesof assets has been based on historical experience with the retention and disposal of assets. Refer to note 2 (f) fordepreciation rates.

RevaluationThe revaluation of the Housing Authority's assets is undertaken by the Western Australian Land Information Authorityannually. Valuation estimates for financial reporting purposes are determined under the accounting concept of fair value.Fair value is defined as 'the amount for which the asset could be exchanged or a liability settled, between knowledgeable,willing parties at an arms length transaction'. It is based on the assumption that the Housing Authority is a going concernwithout the need or intention to liquidate or wind up its operations or undertake a transaction on adverse terms.




5. Schedule of income and expenses by service

2013 CONSOLIDATED 2012Rental Rental Loans Land Elimination Total Rental Rental Loans Land Elimination TotalPublic Government Public Government

Housing Employees Housing Employees$000 $000 $000 $000 $000 $000 INCOME Note $000 $000 $000 $000 $000 $000

Revenue102,321 59 - 208,676 - 311,056 Sales 6 14,337 424 - 197,720 - 212,481

- - - - 4,678 4,678 Intersegment sales - - - - (14,730) (14,730)204,573 225,359 2 187 - 430,121 Rental revenue 7 195,594 194,211 4 143 - 389,952198,737 - - 5,955 - 204,692 Commonwealth grants and contributions 8 270,523 - - 6,528 - 277,051

569 2,174 196,390 894 - 200,027 Interest revenue 9 337 545 256,094 1,050 - 258,0265,536 - - - - 5,536 Developers contributions 1,475 - - - - 1,4755,183 17 2,489 8,983 - 16,672 Other revenues 10 8,493 100 3,101 2,303 - 13,997

516,919 227,609 198,881 224,695 4,678 1,172,782 Total revenue 490,759 195,280 259,199 207,744 (14,730) 1,138,252Gains

- - 164 - - 164 Gain on the disposal of non-current assets 11 - - - - - -- - 164 - - 164 Total gains - - - - - -

516,919 227,609 199,045 224,695 4,678 1,172,946 Total income 490,759 195,280 259,199 207,744 (14,730) 1,138,252

EXPENSES105,638 71 - 97,741 - 203,450 Cost of sales 6 14,615 431 - 82,761 - 97,807185,528 141,381 - 148 - 327,057 Rental expenses 12 186,059 129,794 - 109 - 315,96233,743 - - - - 33,743 New Living expenses 12 27,591 - - - - 27,591

250,712 - 9 - - 250,721 Community support expense 13 245,962 - 49 - - 246,01167,235 10,867 2,494 8,431 - 89,027 Employee benefits expense 14 65,888 9,836 2,468 8,651 - 86,84345,479 735 4,746 7,121 - 58,081 Supplies and services 15 40,451 697 4,307 3,583 - 49,038

108,387 15,469 7,668 479 - 132,003 Depreciation & amortisation expense 16 105,713 14,470 7,638 192 - 128,01321,586 10,778 122,540 8,076 - 162,980 Finance costs 17 22,516 11,098 188,165 7,527 - 229,3062,245 - - - - 2,245 Share of net losses of associates 26 3,065 - - - - 3,065

10,921 93 938 608 - 12,560 Accommodation expenses 18 8,078 89 1,027 746 - 9,9407,594 892 - 1 - 8,487 Loss on the disposal of non-current assets 11 10,847 1,844 396 - - 13,087

110,729 441 19,313 21,025 - 151,508 Other expenses 19 80,711 460 15,538 14,688 - 111,397949,797 180,727 157,708 143,630 - 1,431,862 Total expenses 811,496 168,719 219,588 118,257 - 1,318,060

Profit/(loss) before grants and subsidies (432,878) 46,882 41,337 81,065 4,678 (258,916) grants and subsidies from government (320,737) 26,561 39,611 89,487 (14,730) (179,808)

48,933 - 2,811 - - 51,744 Grants and subsidies from government 8 161,087 - 3,167 - - 164,254Profit/(loss) after grants and subsidies

(383,945) 46,882 44,148 81,065 4,678 (207,172) grants and subsidies from government (159,650) 26,561 42,778 89,487 (14,730) (15,554)- - - - - - Intersegment transfers - - - - - -

(383,945) 46,882 44,148 81,065 4,678 (207,172) Profit/(loss) for the period (159,650) 26,561 42,778 89,487 (14,730) (15,554)




5. Schedule of income and expenses by service ( continued )

2013 THE HOUSING AUTHORITY 2012Rental Rental Loans Land Elimination Total Rental Rental Loans Land Elimination TotalPublic Government Public Government

Housing Employees Housing Employees$000 $000 $000 $000 $000 $000 INCOME Note $000 $000 $000 $000 $000 $000

Revenue102,321 59 - 208,676 - 311,056 Sales 6 14,337 424 - 197,720 - 212,481

- - - - 4,678 4,678 Intersegment sales - - - - (14,730) (14,730)204,573 225,359 2 187 - 430,121 Rental revenue 7 195,594 194,211 4 143 - 389,952198,737 - - 5,955 - 204,692 Commonwealth grants and contributions 8 270,523 - - 6,528 - 277,051

569 2,174 111,762 894 - 115,399 Interest revenue 9 337 545 176,258 1,050 - 178,1905,536 - - - - 5,536 Developers contributions 1,475 - - - - 1,4755,183 17 56,153 8,983 - 70,336 Other revenues 10 8,493 100 45,582 2,303 - 56,478

516,919 227,609 167,917 224,695 4,678 1,141,818 Total revenue 490,759 195,280 221,844 207,744 (14,730) 1,100,897Gains

164 - 164 Gain on the disposal of non-current assets 11 - - - - - -- - 164 - - 164 Total gains - - - - - -

516,919 227,609 168,081 224,695 4,678 1,141,982 Total income 490,759 195,280 221,844 207,744 (14,730) 1,100,897

EXPENSES105,638 71 - 97,741 - 203,450 Cost of sales 6 14,615 431 - 82,761 - 97,807185,528 141,381 - 148 - 327,057 Rental expenses 12 186,059 129,794 - 109 - 315,96233,743 - - - - 33,743 New Living expenses 12 27,591 - - - - 27,591

250,712 - 9 - - 250,721 Community support expense 13 245,962 - 49 - - 246,01167,235 10,867 2,182 8,431 - 88,715 Employee benefits expense 14 65,888 9,836 2,299 8,651 - 86,67445,479 735 1,042 7,121 - 54,377 Supplies and services 15 40,451 697 894 3,583 - 45,625

108,387 15,469 6,820 479 - 131,155 Depreciation & amortisation expense 16 105,713 14,470 6,933 192 - 127,30821,586 10,778 122,357 8,076 - 162,797 Finance costs 17 22,516 11,098 188,131 7,527 - 229,27210,921 93 21 608 - 11,643 Accommodation expenses 18 8,078 89 184 746 - 9,0977,594 892 - 1 - 8,487 Loss on the disposal of non-current assets 11 10,847 1,844 396 - - 13,087

110,729 441 2,682 21,025 - 134,877 Other expenses 19 80,711 460 2,176 14,688 - 98,035947,552 180,727 135,113 143,630 - 1,407,022 Total expenses 808,431 168,719 201,062 118,257 - 1,296,469

Profit/(loss) before grants and subsidies (430,633) 46,882 32,968 81,065 4,678 (265,040) from government (317,672) 26,561 20,782 89,487 (14,730) (195,572)

48,933 - 2,811 - - 51,744 Grants and subsidies from government 8 161,087 - 3,167 - - 164,254Profit/(loss) after grants and subsidies

(381,700) 46,882 35,779 81,065 4,678 (213,296) from government (156,585) 26,561 23,949 89,487 (14,730) (31,318)- - - - - - Intersegment transfers - - - - - -

(381,700) 46,882 35,779 81,065 4,678 (213,296) Profit/(loss) for the period (156,585) 26,561 23,949 89,487 (14,730) (31,318)

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Consolidated Parent 6. Trading profit 2013 2012 2013 2012

$000 $000 $000 $000Sales

Joint venture land 159,255 137,969 159,255 137,969Land 35,868 46,089 35,868 46,089House and land packages 120,611 13,693 120,611 13,693

315,734 197,751 315,734 197,751Less cost of land sold

Joint venture land 70,479 48,013 70,479 48,013Land 27,286 34,903 27,286 34,903House and land packages 105,685 14,891 105,685 14,891

203,450 97,807 203,450 97,807Trading Profit 112,284 99,944 112,284 99,944

7. Rental revenue

Rental properties 424,175 383,815 424,175 383,815Rental amenities 4,004 4,089 4,004 4,089Commercial properties 1,930 2,036 1,930 2,036Community Housing properties 12 12 12 12Total rental revenue 430,121 389,952 430,121 389,952

8. Commonwealth and State grants

Commonwealth grants and contributionsAboriginal housing 78,819 158,644 78,819 158,644Commonwealth rental grants 107,599 104,747 107,599 104,747Crisis accommodation & Community Housing 12,418 13,660 12,418 13,660Homelessness 5,856 - 5,856 -Total Commonwealth grants 204,692 277,051 204,692 277,051

State grants and subsidiesDepartment of Treasury 32,660 95,056 32,660 95,056Department of Planning 45 - 45 -Office of Energy - 3,400 - 3,400Royalties for Regions 1,636 9,773 1,636 9,773Disability Services Commission - 2,100 - 2,100Mental Health Commission 2,790 20 2,790 20Department of Fire & Emergency Services 14,613 53,905 14,613 53,905Total State grants 51,744 164,254 51,744 164,254

9. Interest revenue

Loan interestKeystart secured mortgage advances 182,170 234,610 - -

182,170 234,610 - -The Housing Authority loan schemes 1 1 1 1

1 1 1 1Total Loan Interest 182,171 234,611 1 1

Other interestInterest on cash at bank 7,203 9,291 7,203 9,291Interest on investments 8,191 12,806 105,733 167,580Interest other 2,462 1,318 2,462 1,318Total other interest 17,856 23,415 115,398 178,189Total interest revenue 200,027 258,026 115,399 178,190

10. Other gains

Bad debts recovered 573 538 573 538Conveyancing fees 1,968 1,116 1,968 1,116Dividends - - 56,000 45,000Other revenue 14,131 12,343 11,795 9,824Total other revenues 16,672 13,997 70,336 56,478

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Consolidated Parent 2013 2012 2013 2012

11. Net gain/(loss) on disposal of non-current assets $000 $000 $000 $000

Proceeds from the disposal of non-current assetsRental properties 96,898 66,000 96,898 66,000Community Housing properties 1,361 279 1,361 279Shared Equity properties 39,527 31,357 39,527 31,357Properties plant & equipment 1 138 1 138

137,787 97,774 137,787 97,774Costs on disposal of non-current assets

Rental properties 104,420 78,485 104,420 78,485Community Housing properties 2,320 502 2,320 502Shared Equity properties 39,363 31,753 39,363 31,753Properties plant & equipment 7 121 7 121

146,110 110,861 146,110 110,861Net loss (8,323) (13,087) (8,323) (13,087)

12. Rental expenses

Maintenance expenses 80,817 103,979 80,817 103,979Debt collection expenses 1,227 1,370 1,227 1,370Estate management expenses 9,253 7,536 9,253 7,536General expenses 13,964 12,962 13,964 12,962Insurance expenses 13,197 10,199 13,197 10,199Rates expenses 76,068 71,617 76,068 71,617Renovations & improvements 25,220 15,979 25,220 15,979Non cancellable operating leases:- Rental properties 107,311 92,320 107,311 92,320Total rental expenses 327,057 315,962 327,057 315,962

New living expenses

Renovations & improvements 31,640 26,225 31,640 26,225Infrastructure expenses 1,612 1,296 1,612 1,296Demolition costs 491 70 491 70Total new living expenses 33,743 27,591 33,743 27,591

13. Community support expense

Aboriginal Housing (i) 242,093 240,973 242,093 240,973Community Housing (ii) 8,619 4,989 8,619 4,989Mortgage and rental assistance program - cash assistance 9 49 9 49Total community support expense 250,721 246,011 250,721 246,011

(i) Aboriginal housing community support consists of expenses incurred in the provision of remote indigenouscommunity housing and support programmes including capitalised administration of $25.64m (2012: $25.65m).

(ii) Community Housing support consists of expenses incurred in the provision of housing undertaken bycommunity groups.

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14. Employee benefits expense $000 $000 $000 $000

Salaries & wages 121,851 106,056 121,666 105,887Superannuation - defined contribution plans 11,246 9,873 11,246 9,873Superannuation - defined benefit plans (1,621) 6,013 (1,621) 6,013

131,476 121,942 131,291 121,773Less Credits:Administration capitalised 38,910 29,677 38,910 29,677Recoups 3,539 5,422 3,666 5,422Total credits 42,449 35,099 42,576 35,099Total employee benefits expenses 89,027 86,843 88,715 86,674

15. Supplies and services

Other personnel costs 8,774 3,447 8,774 3,447Travel 2,921 2,915 2,921 2,915Stationery & supplies 1,234 1,175 903 922Communication 4,437 4,410 4,300 4,288Other costs & expenses 37,604 34,025 34,752 31,280External and Internal Audit fees 805 715 421 422Motor vehicles 1,551 1,080 1,551 1,080

57,326 47,767 53,622 44,354Lease expensesNon cancellable operating leases:- Motor vehicles 755 1,271 755 1,271

755 1,271 755 1,271Total supplies and services 58,081 49,038 54,377 45,625

16. Depreciation and amortisation expense

DepreciationRental properties 111,617 105,960 111,617 105,960Community Housing properties 8,007 8,076 8,007 8,076Shared Equity properties 6,751 6,927 6,751 6,927Other properties 888 1,345 888 1,345Plant & equipment 2,959 4,196 2,409 3,680

AmortisationIntangible assets 1,483 1,320 1,483 1,320Other assets 298 189 - -

Total depreciation and amortisation expense 132,003 128,013 131,155 127,308

17. Finance costs

Interest on interest-bearing liabilities 162,945 229,272 162,797 229,272Finance charges 35 34 - -Total finance costs 162,980 229,306 162,797 229,272

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Consolidated 2013 2012 2013 2012

18. Accommodation expenses $000 $000 $000 $000

Office rental & accommodation 8,513 6,196 8,482 6,177Lease expensesNon cancellable operating leases:- Office properties 4,047 3,744 3,161 2,920Total accommodation expenses 12,560 9,940 11,643 9,097

19. Other expenses

Doubtful debts expense 13,529 8,628 8,158 4,788Fees - Keystart 11,170 9,494 - -Grants & subsidies 1,041 672 1,041 672Land expenses 19,555 13,505 19,555 13,505Loan scheme expenses 1,195 1,479 1,195 1,479Write down of assets classified as held for sale 1,031 1,197 1,031 1,197Employee on costs 8,721 8,006 8,721 8,006Other expenses 23,897 17,947 23,807 17,919Assets transferred to Community Housing (a) 71,369 50,469 71,369 50,469Total other expenses 151,508 111,397 134,877 98,035

(a) As at 30 June 2013, the Housing Authority transferred 218 property assets valued at $71.37m (2012: 203 propertyassets valued at $50.47m) to Community Housing Organisations in accordance with Commonwealth Stimulus fundingrequirements.

20. Cash and cash equivalents

Cash at bank - operational 50,615 122,862 12,250 97,908Cash advances 15 9 15 9

50,630 122,871 12,265 97,917Restricted cash:Rental tenants bonds 15,451 14,791 15,451 14,791Joint venture cash 33,945 29,830 33,945 29,830Remote indigenous housing 4,666 4,481 4,666 4,481Indigenous strategic intervention program - 82 - 82Royalties for Regions Fund 81,746 107,697 81,746 107,697

135,808 156,881 135,808 156,881Total cash and cash equivalents 186,438 279,752 148,073 254,798

Rental Tenants Bonds represents bond monies received by the Housing Authority from rental clients. These funds are heldin trust in accordance with the Residential Tenancies Act. Joint Venture Cash is restricted for the use of joint ventureoperations and is controlled by the respective management groups. Unspent funds for Royalties for Regions are committedto projects and programs in WA regional areas. The Housing Authority is a property manager for remote indigenouscommunities and does not have ownership of these properties. The cash held represents unspent funds for theseproperties.

21. Inventories Restated * Restated * Restated * Restated *2013 2012 2011 2013 2012 2011

Current $000 $000 $000 $000 $000 $000Land held for sale at cost (note 2(h)) currentCost of acquisition and development 185,358 136,921 55,517 185,358 136,921 55,517Capitalised rates, taxes, administration and interest 1,894 1,720 1,645 1,894 1,720 1,645

187,252 138,641 57,162 187,252 138,641 57,162Joint venture land at cost (note 2 (h)) 52,005 63,063 59,819 52,005 63,063 59,819House and land packages at cost 57,525 24,592 3,379 57,323 24,592 3,379Total current inventories 296,782 226,296 120,360 296,580 226,296 120,360

Non-currentLand held for sale at cost (note 2(h)) non - currentCost of acquisition and development 400,457 382,487 411,079 400,457 382,487 411,079Capitalised rates, taxes, administration and interest 7,090 7,176 7,307 7,090 7,176 7,307

407,547 389,663 418,386 407,547 389,663 418,386Joint venture land at cost (a) 94,890 100,736 100,888 94,890 100,736 100,888Total non-current inventories 502,437 490,399 519,274 502,437 490,399 519,274

Parent

Consolidated Parent

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21. Inventories (Continued)

(a) The Housing Authority enters into joint venture operations for the development of land holdings. Listed below are current joint ventures

ButlerThe Housing Authority holds a 46.8% interest in a joint venture operation named Ocean Springs Pty Ltd for the development of land at the Brighton estate. The Housing Authority contributes development costs and receives revenues on the basis of the interest held in the joint venture.

Dalyellup BeachThe Housing Authority holds a 50% interest in a joint venture operation named Dalyellup Beach Pty Ltd forthe development of land at Dalyellup Beach, Bunbury. The Housing Authority contributes development costs andreceives revenues on the basis of the interest held in the joint venture.

EllenbrookThe Housing Authority holds a 47.1% interest in a joint venture operation named Ellenbrook for thedevelopment of land at Ellenbrook. The Housing Authority contributes development costs and receives revenues onthe basis of the interest held in the joint venture.

SeacrestThe Housing Authority holds a 50% interest in a joint venture operation named Seacrest Corporation Pty Ltd for the development of land at Wandina, Geraldton. The Housing Authority contributes development costs andreceives revenues on the basis of the interest held in the joint venture.

Oyster HarbourThe Housing Authority holds a 50% interest in the Oyster Harbour joint venture for the development of land at the OysterHarbour Estate, Bayonet Head, Albany. The Housing Authority contributes development costs and receives revenues onthe basis of the interest held in the joint venture.

WellardThe Housing Authority holds an interest in a 'farm in' joint venture operation named Wellard for the development of Housing Authority land in Wellard. The Housing Authority does not contribute funds for the development of the land and receives a 10% land payment on the sale of each lot and 80% share in the profits.

Banksia GroveThe Housing Authority holds an interest in the Banksia Grove 'farm in' joint venture for the development of its landholdings at Banksia Grove. The Housing Authority does not contribute funds for the development of the land and receives a35% land payment on the sale of each lot and 40% share in the profits.

BrookdaleThe Housing Authority holds a 50% interest in a joint venture operation named Brookdale for the development of land atBrookdale. The Housing Authority contributes development costs and receives revenues on the basis of interest held inthe joint venture.

HarrisdaleHarrisdale Green is a 'farm in' joint venture arrangement with the Housing Authority providing land and the other participantmeeting the development costs. The Authority receives a 30% land payment on the sale of lots and a 10% land paymenton the sale of built form. Profits are shared with the Housing Authority at 66.6% and Cedar Woods at 33.3%

BeeliarThe Housing Authority holds an interest in a joint venture operation named Meve for the development of Housing Authorityland in Beeliar. The Housing Authority does not contribute to the development of the land. The revenue received is 33%of the gross sales and 50% share of the profits.

Woodrise EstateThe Housing Authority holds an interest in a joint venture operation named Woodrise Estate for the development of HousingAuthority land in Albany. The Housing Authority does not contribute to the development of the land. The revenue receivedis 30% of gross sales.




21. Inventories (Continued)JOINT VENTURE OPERATIONS

Butler Dalyellup Ellenbrook Seacrest Oyster Brookdale Albany Harrisdale Wellard Banksia TotalBeach Harbour Grove

$000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000CURRENT ASSETSCash and cash equivalents 20 9,396 5,000 10,402 672 42 8,433 - - - - 33,945Receivables 22 2,135 1,946 7,423 40 70 2,283 - - - - 13,897Inventories 21 15,416 6,031 26,321 - 1,957 2,280 - - - - 52,005Other current assets 23 - - 2,897 151 1 - - - - 3,049

26,947 12,977 47,043 863 2,069 12,997 - - - - 102,896NON-CURRENT ASSETSReceivables 530 - - 81 - - - - - - 611Office Equipment 31 - - 47 - - - - - - 47Buildings 30 211 113 266 - - - - - - 590Development costs (1) 21 14,437 14,656 8,164 5,112 4,641 14,741 - - - 61,751

15,178 14,769 8,477 5,193 4,641 14,741 - - - - 62,999Total assets 42,125 27,746 55,520 6,056 6,710 27,738 - - - - 165,895

CURRENT LIABILITIESPayables 36 3,720 3,297 3,069 174 495 1,101 - - - - 11,856Other Liabilities - - - - - - - - - - -Provisions 38 2,345 310 1,736 202 - 324 - - - - 4,917

6,065 3,607 4,805 376 495 1,425 - - - - 16,773NON-CURRENT LIABILITIESPayables and Interest-bearing liabilities 36 530 - 24 - - - - - - - 554Provisions - - - - - - - - - - -

530 - 24 - - - - - - - 554Total liabilities 6,595 3,607 4,829 376 495 1,425 - - - - 17,327NET ASSETS 35,530 24,139 50,691 5,680 6,215 26,313 - - - - 148,568

Land (1) 21 2,681 - 2,918 315 8,412 4,246 - 1,030 5,468 8,069 33,139

1. The total of development costs ($61.751 million) and Authority land ($33.139 million) represents the total ($94.890 million) joint venture land.

2013




21. Inventories (Continued)JOINT VENTURE OPERATIONS

2012Butler Dalyellup Ellenbrook Seacrest Oyster Brookdale Albany Harrisdale Wellard Banksia Total

Beach Harbour Grove

$000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000CURRENT ASSETSCash and cash equivalents 20 13,474 4,402 5,625 1,331 32 4,966 - - - - 29,830Receivables 22 7,915 666 2,177 72 789 - - - - - 11,619Inventories 21 12,516 9,772 31,961 - 2,828 5,986 - - - - 63,063Other current assets 23 - - 3,016 540 - - - - - - 3,556

33,905 14,840 42,779 1,943 3,649 10,952 - - - - 108,068NON-CURRENT ASSETSReceivables - - - 101 - - - - - - 101Office Equipment 31 - - 66 - - - - - - - 66Buildings 30 488 98 659 - - - - - - - 1,245Development costs (1) 21 20,988 14,626 10,122 5,368 3,732 9,668 - - - - 64,504

21,476 14,724 10,847 5,469 3,732 9,668 - - - - 65,916Total assets 55,381 29,564 53,626 7,412 7,381 20,620 - - - - 173,984

CURRENT LIABILITIESPayables 36 3,952 1,973 1,293 591 247 3,274 - - - - 11,330Other Liabilities - - - - - - - - - - -Provisions 38 2,649 341 4,965 225 - 78 - - - - 8,258

6,601 2,314 6,258 816 247 3,352 - - - - 19,588NON-CURRENT LIABILITIESPayables and Interest-bearing liabilities 36 - - 24 142 - - - - - - 166Provisions - - 159 - - - - - - - 159

- - 183 142 - - - - - - 325Total liabilities 6,601 2,314 6,441 958 247 3,352 - - - - 19,913NET ASSETS 48,780 27,250 47,185 6,454 7,134 17,268 - - - - 154,071

Land (1) 21 3,196 - 3,574 968 7,953 3,286 109 1,116 6,294 9,736 36,232

1. The total of development costs ($64.504 million) and Authority land ($36.232 million) represents the total ($100.736 million) joint venture land.

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22. Loans and receivables $000 $000 $000 $000

CurrentGeneral 41,656 42,525 41,014 41,748Loans to homebuyers 734,755 657,292 - -Joint venture receivables 13,897 11,619 13,897 11,619Rental and Lease bonds 18,938 20,714 18,938 20,714Rents from tenants and other rents 31,690 29,612 31,690 29,612Commercial organisations (a) 3,967 1,144 3,967 1,144

844,903 762,906 109,506 104,837Less provision for impairment 6,005 5,005 6,005 5,005Total receivables current 838,898 757,901 103,501 99,832

A provision for impairment loss is recognised when there is objective evidence that an individual receivable is impaired.

Reconciliation of changes in the allowances for impairment of receivables

Carrying amount at start of period 5,005 4,995 5,005 4,995Charge for the period 8,157 4,788 8,157 4,788Amounts written off (7,157) (4,778) (7,157) (4,778)Carrying amount at end of period 6,005 5,005 6,005 5,005

An impairment loss of $8.16m (2012: $4.78m) has been recognised by the Housing Authority.

Current receivables individually determined as impaired at the end of the reporting period:Carrying amount before deducting any impairment loss 399 271 399 271Impairment loss (399) (271) (399) (271)

- - - -

(a) The loans to Commercial Organisations includes a loan facility provided to Goldmaster Enterprises of $26.4 m. As at 30 June 2013 $700,000 has been drawn down. Repayment of the total loan facility is due in May 2014. Theinterest rate is based on the rate quoted by the Western Australian Treasury Corporation plus 1.25%

Non currentNon-current loans and advancesKeystart preferential shares (a) - - 3,275,000 3,535,000Loans to homebuyers (b) 2,594,872 2,758,959 18 15Loans otherCommercial organisations (c) 125 62 125 62Local & statutory authorities 3 19 3 19Less provision for impairment 7,297 5,034 - -

2,587,703 2,754,006 3,275,146 3,535,096

Joint venture receivables 611 101 611 101General receivables - - - -Total receivables non current 2,588,314 2,754,107 3,275,757 3,535,197

Provision for impairment lossAs at 30 June 2013, loans to homebuyers with a nominal value of $3.22m (2012: $3.58m) were impaired, andwritten off against provision for impairment following disposal of mortgaged property. The amount of the provision was$7.30m (2012: $5.03m). The individually impaired receivables are mainly due to property abandonment andvoluntary property surrender.

The creation and release of the provision for impaired receivables has been included in doubtful debts expenses in theStatement of Comprehensive Income. Amounts charged to the allowance account are generally written off when thereis no expectation of recovering additional cash.

For the year ended 30 June 2013, the provision for impairment of loans and receivables include all loans that were pastdue. In previous financial year, only loans that were past-due for 90 days or more were considered impaired and included in the provision for impairment.

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22. Loans and receivables (Continued) $000 $000 $000 $000

Movement in Provisions for Impairment

Carrying amount at start of period 5,034 4,709 - -Charge for the year 5,371 3,839 - -Amounts written off (3,108) (3,514) - -Carrying amount at end of period 7,297 5,034 - -

Ageing analysis of receivables past due but not impaired at the end of the reporting period

Not more than 3 months 10,616 33,324 10,616 13,693More than 3 months but less than 6 months 4,403 5,679 4,403 5,679More than 6 months but less than 1 year 21,461 7,599 21,461 7,599More than 1 year 12,710 12,251 12,710 12,251

49,190 58,853 49,190 39,222

All loans and advances are reviewed and graded according to the anticipated level of credit risk. The classificationadopted is described below:

Outstanding balance on loans for which collateral will be repossessedBalance 12,191 17,730 - -Provision for impairment (2,753) (3,896) - -

9,438 13,834 - -

Interest foregone on non-accrual and restructured loans 856 1,598 - -

Restructured loansBalance without provisions 5,528 2,476 - -

A Safety Net Scheme is offered to clients who require assistance because of changes in their financial situation. Inmost cases, Phase 1 assistance is sufficient and is granted for short terms of up to six (6) months. Those who requirelonger periods are assigned to Phase 2. These 2 stages provide assistance in the form of an interest rate reduction tolower repayments. The table shows the position as at the end of the financial period.

Number 2013 Number 2012

Phase 1 99 21,027 76 14,189Phase 2 - - - -

99 21,027 76 14,189

Past due loansBalance without provision - - - 5,423

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22. Loans and receivables (continued)

“Non-accrual loans” are loans and advances where the recovery of all interest and principal is considered to bereasonably doubtful, and hence allowances for impairment are recognised.

“Assets acquired through the enforcement of security” are assets acquired in full or partial settlement of a loan orsimilar facility through the enforcement of security arrangements.

“Restructured loans” arise when the borrower is granted a concession due to continuing difficulties in meeting theoriginal terms, and the revised terms are not comparable to new facilities. Loans with revised terms are included innon-accrual loans when impairment provisions are required.

“Past-due loans” are loans where payments of principal and/or interest are in arrears. Allowance for impairment arerecognised for all such loans. Full recovery of both principal and interest is expected. In the prior financial year, only loans at least 90 days in arrears were considered past-due, at which time a provision for impairment was recognised.

(a) Keystart preferential sharesThe Western Australian Treasury Corporation has provided the Housing Authority with a $5,000 million loan facility tofund Keystart Loans Ltd. The Housing Authority has purchased redeemable preference shares in Keystart Loans Ltdto the same value as the drawn down loan facility as security over the funds. The terms and conditions of the sharesreflect the terms and conditions of the loan facility. Keystart Loans Ltd. meets all principal, interest and other costs associated with the facility. To date $3,275 m (June 2012 $3,535 m) of this facility has been drawn down.

(b) Loans to Homebuyers(a) Interest rate risk

Refer to note 2 (ab) for an analysis of the Consolidated Entity’s exposure to interest rate risk in relation to loan and otherreceivables. Summarised analysis of the sensitivity of loan and other receivables to interest rate is illustrated in note 2(ab).

(b) Fair value and credit risk

Current loan and other receivable

Due to the short term nature of these receivables, their carrying value is assumed to approximate their fair value

The maximum exposure to credit risk at the reporting date is the fair value of each class of receivables mentioned above. (Refer to note 2 (ab) for more information on the risk management policy of the Consolidated Entity.)

Non-current loan and other receivables

Fair value Consolidated Parent 2013 2012 2013 2012

The fair values and carrying values of non-current $’000 $’000 $’000 $’000receivables are as follows:

Loan and receivables - fair value 3,327,238 3,411,809 146 96

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22. Loans and receivables (Continued)

Credit Risk

The maximum exposure to credit risk at the reporting date is the higher of the carrying value and fair value of each classof receivables mentioned above. (Refer to note 2 (ab) for more information on the risk management policy of theConsolidated Entity).

(c) Collateral held

Collateral is in the form of registered first mortgages over residential properties in Western Australia purchased with theproceeds of loans from Keystart. The parties granting the mortgage must be the same as the Keystart borrowers.

Terms and conditions associated with the use of collateral are such that should a borrower breach the terms andconditions of their mortgage, Keystart has the facility to recover all or part of the outstanding exposure by;

(a) exercising its rights under the mortgage, including the power of sale and (b) exercising any rights available under law.

The collateral held as security for loans that are past due or impaired is in the form of mortgaged residential property.

Consolidated Parent 2013 2012 2013 2012$’000 $’000 $’000 $’000

Fair value of collateral obtained in terms of the 9,438 13,834 - -the exercising of rights under the mortgages

Mortgagee sales are considered as the last resort in relation to continually defaulting borrowers. The execution of themortgagee sales must comply with the National Consumer Protection Credit Act 2009 and National Credit Code,where appropriate.

Repossessed collateral is sold at best possible market price, with any surpluses being returned to the borrowersconcerned. Any shortfalls are written-off against allowance.

(c) The Housing Authority has one interest free loan with a face value of $96,000 (original principal was $200,000 in2001) which is carried at amortised cost with an effective interest rate of 2.95%. The carrying amount as at June 302013 is $85,836 (June 2012 $91,737).

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23. Other current assets $000 $000 $000 $000Accrued revenueInterest on cash at bank 1,713 2,405 1,713 2,405Debenture sinking fund interest 1,361 - 1,361 -Interest Keystart investments - - 11,076 24,937

3,074 2,405 14,150 27,342PrepaymentsInsurance premiums - 20 - 20Lease rentals 9,203 7,806 9,203 7,806Development proposals 34,199 16,633 34,199 16,633Joint venture 3,049 3,556 3,049 3,556

46,451 28,015 46,451 28,015Total other current assets 49,525 30,420 60,601 55,357

24. Non-current assets classified as held for sale

Opening BalanceRental properties 7,131 11,797 7,131 11,797

Assets reclassified as held for saleRental properties 48,527 44,687 48,527 44,687Less impairment 1,031 1,198 1,031 1,198

47,496 43,489 47,496 43,489Total assets classified as held for sale

Rental properties 54,627 55,286 54,627 55,286Less assets sold

Rental properties 50,400 48,155 50,400 48,155Closing balance

Rental properties 4,227 7,131 4,227 7,131

These properties are the Housing Authority's New Living and Redevelopment programs properties that form part of the rentalproperty class that are marketed and available for immediate sale in accordance with AASB 5. Assets held for sale are heldat fair value less selling costs.

25. Other financial assets

CurrentDeposits at call (a) 199,950 390,098 - -Debentures (b) 19,350 - 19,350 -Total current other financial assets 219,300 390,098 19,350 -

Non - current investmentsEllenbrook Management Pty Ltd Shares (c) 24 24 24 24Total non - current other financial assets 24 24 24 24

(a) The fair values of the short term deposits are determined using generally accepted pricing models based on discounted cash flow analysis using prices from observable current market transactions.

(i) Risk exposure - Information about the Consolidated Entity's exposure to market risk, credit risk and liquidity risk isprovided in note 2 (ab)

(ii) Impairment - Financial assets are assessed for indicators of impairment regularly. Financial assets are impairedwhere there is objective evidence that as a result of one or more events that occurred after initial recognition of thefinancial asset the recoverability of the investment has been impacted.

(b) Debentures classified as held-to-maturity investments with a carrying amount of $19.35 million (2012: nil) havean interest rate of 20% and mature in 2013/2014. In accordance with the Convertible Note Deed Poll, Goldmasterhave the option of converting the Notes into Shares on the terms set out in the Condition of Issue.

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25. Other financial assets (continued)

(c) Interest is held in the following companies.

Dividends Value of Principal Type of Percentage of each received shares at

Name activities shares share class held $000 cost '$0002012 2013 2012

% %Ellenbrook Management Pty Ltd Real estate Ord. 47.14 47.14 Nil 24

development

Consolidated 26. Investments in associates 2013 2012 2013 2012

$000 $000 $000 $000

Goldmaster Enterprises Pty Ltd shares 12,690 14,935 18,000 18,000Total investments in associates 12,690 14,935 18,000 18,000

2013 2012

(a) Movements in carrying amount $000 $000Carrying amounts at the beginning of the financial year 14,935 -Reclassification from other financial assets - 1,300Acquisition of associates - 16,700Share of losses after income tax (2,245) (3,065)Carrying amount at the end of the financial year 12,690 14,935

(b) The Housing Authority has significant influence but does not exercise control or have joint control over GoldmasterEnterprises Pty Ltd. Accordingly, the financial statements of Goldmaster Enterprises Pty Ltd have not beenconsolidated and the investment has been accounted for using the “Equity” method in the consolidated financialstatements.

The Consolidated Entity's share of the results of it's principal associate and it's aggregated assets (includinggoodwill) and liabilities are as follows:

Ownership Type of Assets Liabilities Revenues LossName Interest shares $000 $000 $000 $000

2013%

Goldmaster Enterprises Pty Ltd 54.55 Ord. 18,001 18,287 18 2,245

2012%

Goldmaster Enterprises Pty Ltd 54.55 Ord. 6,350 4,823 342 3,065

(c) Unrecognised share of losses: current currentperiod period including current period

2013 2012 2013 2012

$000 $000 $000 $000

Goldmaster Enterprises Pty Ltd 1,837 4,079 19,212 17,375

cumulative

Parent

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Consolidated Parent Restated * Restated * Restated * Restated *

27. Rental properties 2013 2012 2011 2013 2012 2011Rental properties at fair value $000 $000 $000 $000 $000 $000

Improvements 5,653,563 5,623,749 5,283,792 5,653,563 5,623,749 5,283,792Land 6,372,583 6,299,340 6,157,128 6,372,583 6,299,340 6,157,128

12,026,146 11,923,089 11,440,920 12,026,146 11,923,089 11,440,920Less accumulated depreciation 3,802 5,828 5,779 3,802 5,828 5,779

12,022,344 11,917,261 11,435,141 12,022,344 11,917,261 11,435,141Leasehold improvements at cost 176 178 201 176 178 201Less accumulated depreciation 127 116 132 127 116 132

49 62 69 49 62 69Vacant land at fair value 94,349 50,616 22,002 94,349 50,616 22,002Total Rental properties 12,116,742 11,967,939 11,457,212 12,116,742 11,967,939 11,457,212

Consolidated Parent 28. Community Housing properties 2013 2012 2013 2012

$000 $000 $000 $000Crisis accommodation properties at fair value

Improvements 74,699 73,051 74,699 73,051Land 117,754 114,244 117,754 114,244

192,453 187,295 192,453 187,295Community Housing properties at fair value


486,419 458,208 486,419 458,208Joint charity projects at fair value


154,372 149,433 154,372 149,433Indigenous urban housing at fair value


10,249 10,106 10,249 10,106843,493 805,042 843,493 805,042

Less accumulated depreciation:Crisis accommodation 119 93 119 93Community Housing 305 702 305 702Joint charity projects 247 210 247 210Indigenous urban housing - - - -

671 1,005 671 1,005Total Community Housing properties 842,822 804,037 842,822 804,037

29. Shared Equity properties

Shared Equity properties at fair valueImprovements 226,820 222,933 226,820 222,933Land 332,730 332,866 332,730 332,866

559,550 555,799 559,550 555,799Less accumulated depreciation: 351 181 351 181Total Shared Equity properties 559,199 555,618 559,199 555,618

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30. Other properties Consolidated Parent 2013 2012 2013 2012$000 $000 $000 $000

Other properties at fair valueOffices


53,751 52,840 53,751 52,840Commercial


12,555 10,422 12,555 10,422Indigenous assets


11,223 8,080 11,223 8,080Joint venture buildings 1,329 1,910 1,329 1,910

78,858 73,252 78,858 73,252Less accumulated depreciation:Offices - (2) - (2)Commercial 5 22 5 22Indigenous assets 38 177 38 177Joint venture buildings 739 665 739 665

782 862 782 86278,076 72,390 78,076 72,390

Leasehold improvements at cost 3,225 1,820 3,225 1,820Less accumulated depreciation: 1,661 1,462 1,661 1,462

1,564 358 1,564 358Vacant land at fair value 63,365 36,518 63,365 36,518Total other properties 143,005 109,266 143,005 109,266

31. Plant and equipment

Plant & equipment at costAir conditioning 1,171 1,171 1,171 1,171Commercial vehicles 141 207 141 207Computing facilities & equipment 17,457 16,304 13,707 13,044Furniture & fittings 2,320 2,296 339 327Office machines & equipment 3,314 3,200 3,142 3,019Joint venture office equipment 172 172 172 172Plant & equipment 106 106 106 106

24,681 23,456 18,778 18,046Less accumulated depreciation:Air conditioning 997 926 997 926Commercial vehicles 141 200 141 200Computing facilities & equipment 13,740 11,784 11,605 9,787Furniture & fittings 760 544 292 286Office machines & equipment 2,610 2,210 2,468 2,069Joint venture office equipment 125 106 125 106Plant & equipment 106 106 106 106

18,479 15,876 15,734 13,480Total plant and equipment 6,202 7,580 3,044 4,566




32. Property, plant and equipment reconciliation

Rental Community Shared Other Plant & Buildings Total Rental Community Shared Other Plant & Buildings TotalProperties Housing Equity Properties Equipment under Properties Housing Equity Properties Equipment under

Properties Properties Construction Properties Properties Construction$000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000

11,967,939 804,037 555,618 109,266 7,580 270,424 13,714,864 Carrying amount at start of period 11,457,212 741,067 573,477 100,543 10,702 275,832 13,158,83383,548 28,300 44,406 46,924 1,406 175,774 380,358 Additions 140,921 24,199 20,802 19,028 1,214 235,509 441,673

164,525 81,452 2,351 (14,631) - (233,697) - Transfers 134,479 95,865 3,073 980 - (234,397) -(63,395) (73,448) (39,947) (653) (181) - (177,624) Disposals (29,258) (48,493) (32,245) (21,542) (1,289) - (132,827)(49,068) - - - - - (49,068) Classified as held for sale (44,687) - - - - (6,520) (51,207)124,263 10,414 3,299 3,062 - - 141,038 Revaluation increments (a) 415,005 (534) (2,805) 11,249 - - 422,915

(111,070) (7,933) (6,528) (963) (2,603) - (129,097) Depreciation (105,733) (8,067) (6,684) (992) (3,047) - (124,523)12,116,742 842,822 559,199 143,005 6,202 212,501 13,880,471 Carrying amount at end of period 11,967,939 804,037 555,618 109,266 7,580 270,424 13,714,864

Rental Community Shared Other Plant & Buildings Total Rental Community Shared Other Plant & Buildings TotalProperties Housing Equity Properties Equipment under Properties Housing Equity Properties Equipment under

Properties Properties Construction Properties Properties Construction$000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000

11,967,939 804,037 555,618 109,266 4,566 270,424 13,711,850 Carrying amount at start of period 11,457,212 741,067 573,477 100,543 7,268 275,832 13,155,39983,548 28,300 44,406 46,924 913 175,774 379,865 Additions 140,921 24,199 20,802 19,028 1,118 235,509 441,577

164,525 81,452 2,351 (14,631) - (233,697) - Transfers 134,479 95,865 3,073 980 - (234,397) -(63,395) (73,448) (39,947) (653) (181) (177,624) Disposals (29,258) (48,493) (32,245) (21,542) (1,289) - (132,827)(49,068) - - - - - (49,068) Classified as held for sale (44,687) - - - - (6,520) (51,207)124,263 10,414 3,299 3,062 - - 141,038 Revaluation increments (a) 415,005 (534) (2,805) 11,249 - - 422,915

(111,070) (7,933) (6,528) (963) (2,254) - (128,748) Depreciation (105,733) (8,067) (6,684) (992) (2,531) - (124,007)12,116,742 842,822 559,199 143,005 3,044 212,501 13,877,313 Carrying amount at end of period 11,967,939 804,037 555,618 109,266 4,566 270,424 13,711,850

Depreciation includes adjustments on disposal of assets in addition to thedepreciation expense for the year.

(a) Independent valuations of land and buildings are provided annually by the Western Australian Land Information Authority (Valuation Services) and recognised with sufficient regularity to ensure that the carrying amount doesnot differ materially from the asset's fair value at the end of the reporting period.

2013 2012CONSOLIDATED

2013 2012PARENT

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33. Intangible assets $000 $000 $000 $000

Computing software at cost 10,225 9,171 8,063 7,745Less accumulated amortisation 5,618 4,879 4,818 4,212

4,607 4,292 3,245 3,533Computing development at cost 21,327 14,323 21,327 14,323Less accumulated amortisation 12,286 11,408 12,286 11,408

9,041 2,915 9,041 2,915Total intangible assets 13,648 7,207 12,286 6,448

Intangible assets reconciliationCarrying amount at start of period 7,207 4,207 6,448 3,470Additions 8,131 4,508 7,322 4,297Disposals - - - -Amortisation expense (1,782) (1,508) (1,484) (1,319)Carrying amount at end of period 13,556 7,207 12,286 6,448

Assets with a value of $8,807,233 relating the development of the Northgate project are not yet available for use. Once development is finalised and the system is in production, these assets will begin to be amortised.

34. Impairment of Assets

There were no indications of impairment of property, plant and equipment, infrastructure or intangible assets at 30 June 2013. The Housing Authority held no goodwill or intangible assets with an indefinite useful life during thereporting period. All surplus assets at 30 June 2013 have either been classified as assets held for sale or written off.

35. Payables

CurrentContractors retention monies 12,918 8,098 12,918 8,098Joint venture creditors 11,856 11,330 11,856 11,330Rental properties water consumption 3,138 2,342 3,138 2,342Rental tenants bonds 15,451 14,791 15,451 14,791Trade creditors 79,372 54,060 79,372 54,060Total current payables 122,735 90,621 122,735 90,621

Included in the trade creditors line are the unspent funds associated with the Indian Ocean Territories (IOT)service delivery arrangements as per the following:

2013 2012$ $

Amounts carried forward from previous financial year. 23,496 -18,805Payments made by the Commonwealth for IOT services. 44,000 45,000Cost of services. 25,779 2,699Construction paid - -Amounts carried forward to following financial year. 41,717 23,496

Due to the short term nature of these payables, their carrying value is assumed to approximate their fair value.

Non - currentJoint venture creditors 554 166 554 166Total non-current payables 554 166 554 166

36. Borrowings

CurrentBorrowingsWA Treasury Corporation 99,534 73,374 99,534 73,374Commonwealth advances 14,765 14,402 14,765 14,402Total current borrowings 114,299 87,776 114,299 87,776

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36. Borrowings (continued) $000 $000 $000 $000

Non - currentBorrowingsWA Treasury Corporation 3,971,698 4,262,574 3,971,698 4,262,574Commonwealth advances 422,644 437,414 422,644 437,414Total non-current borrowings 4,394,342 4,699,988 4,394,342 4,699,988Total borrowings 4,508,641 4,787,764 4,508,641 4,787,764

The fair values for WATC borrowings have been calculated by Western Australian Treasury Corporation, based on marketvaluations. The State Nominated and Commonwealth advances have been calculated using a discount rate of 3.81% whichis the Commonwealth bond rate. (June 2012, 2.95%)

ConsolidatedTotal carrying amount Aggregate Net Fair

Value2013 2012 2013 2012$000 $000 $000 $000

Borrowings - WATC 4,071,232 4,335,948 4,086,656 4,360,802Borrowings - Commonwealth advances 437,409 451,816 466,614 527,298

4,508,641 4,787,764 4,553,270 4,888,100

ParentTotal carrying amount Aggregate Net Fair

Value2013 2012 2013 2012$000 $000 $000 $000

Borrowings - WATC 4,071,232 4,335,948 4,086,656 4,360,802Borrowings - Commonwealth advances 437,409 451,816 466,614 527,298

4,508,641 4,787,764 4,553,270 4,888,100

37. Provisions

CurrentEmployee benefitsLong service leave 10,453 8,595 10,453 8,595Annual leave 9,830 8,523 9,830 8,523

20,283 17,118 20,283 17,118OtherEmployee benefits on-costs 1,319 942 1,319 942Joint venture provisions 4,917 8,258 4,917 8,258Total current provisions 26,519 26,318 26,519 26,318

Non - CurrentEmployee benefitsLong service leave 9,126 8,100 9,126 8,100Superannuation 24,388 28,352 24,388 28,352

33,514 36,452 33,514 36,452OtherEmployment on-costs 593 445 593 445Joint venture provisions - 159 - 159Development levies (note 2s(ii)) 2,155 1,256 2,155 1,256Total non-current provisions 36,262 38,312 36,262 38,312

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37. Provisions (continued) Consolidated Parent 2013 2012 2013 2012$000 $000 $000 $000

Long service leave liabilities have been established by actuarial assessment dated 18 July 2013. The assessment of thenon-current portion of the liability is at net present value allowing for a salary inflation rate of 3.5% and an investmentearning rate (discount) of 2.76%.

(a) Annual leave liabilities have been classified as current as there is no unconditional right to defer settlement for at least12 months after the reporting period. Assessments indicate that actual settlements of the liabilities is expected to occuras follows:

Within 12 months of the end of the reporting period 9,830 8,523 9,830 8,523

(b) Long service liabilities have been classified as current where there is no unconditional right to defer settlement for atleast 12 months after the end of the reporting period. Assessments indicate that actual settlements of the liabilities willoccur as follows:

Within 12 months of the end of the reporting period 5,537 4,582 5,537 4,582More than 12 months after the end of the reporting period 14,042 12,113 14,042 12,113

19,579 16,695 19,579 16,695

The settlement of annual and long service leave liabilities gives rise to the payment of employment on-costs includingworkers’ compensation premiums and payroll tax. The provision is the present value of expected future payments. Theassociated expense, apart from the unwinding of the discount (finance cost), is included at note 19 ‘Other expenses’.

Movement in ProvisionsEmployment on-costs 1,912 1,387 1,912 1,387

Carrying amount at start of period 1,387 1,110 1,387 1,110Additional provisions recognised 6,968 6,954 6,968 6,954Payments (6,443) (6,677) (6,443) (6,677)Carrying amount at end of period 1,912 1,387 1,912 1,387

Development levies 2,155 1,256 2,155 1,256Carrying amount at start of period 1,256 3,327 1,256 3,327Additional provisions recognised 3,039 (528) 3,039 (528)Payments (2,140) (1,543) (2,140) (1,543)Carrying amount at end of period 2,155 1,256 2,155 1,256

Joint venture provisions 4,917 8,417 4,917 8,417Carrying amount at start of period 8,417 9,013 8,417 9,013Additional provisions recognised 3,439 4,780 3,439 4,780Payments (6,939) (5,376) (6,939) (5,376)Carrying amount at end of period 4,917 8,417 4,917 8,417

Defined benefit superannuation plansThe superannuation liability has been established from data supplied by the Government Employees Superannuation Board.

The amounts recognised in the Statement of Comprehensive Income are as follows:

2013 2012 2013 2012$000 $000 $000 $000

Interest cost 612 1,013 152 281Net actuarial losses/(gains) recognised (1,634) 3,770 (209) 815Total included in Employee benefits expense (1,022) 4,783 (57) 1,096

The amounts recognised in the Statement of Financial Position are as follows:

Present value of unfunded obligations 19,525 22,733 4,863 5,619Liability in the Statement of Financial Position 19,525 22,733 4,863 5,619

Pension Scheme

Pre-transfer benefit -Gold State

SuperannuationScheme

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37. Provisions (Continued)

The Authority has no legal liability to make up the liability other than by continuing to comply with the employerfunding arrangements as detailed below.

Reconciliation of the unfunded liability recognised in the Statement of Financial Position is as follows:

2013 2012 2013 2012$000 $000 $000 $000

Liability at the start of the period 22,733 20,449 5,619 5,651Current service cost - - - -Interest cost (unwinding of the discount) 612 1,013 152 281Net actuarial losses/(gains) recognised (1,634) 3,770 (209) 815Benefits paid (2,186) (2,499) (699) (1,128)Liability at the end of the period 19,525 22,733 4,863 5,619

Reconciliation of the fair value of plan assets is as follows:

Fair value of plan assets at the start of the period - - - -Employer contributions 2,186 2,499 699 1,128Benefits paid (2,186) (2,499) (699) (1,128)Fair value of plan assets at the end of the period - - - -

The principal actuarial assumptions used (expressed as weighted averages) were as follows:

2013 2012 2011 2010Discount rate 3.38% 2.84% 5.28% 5.48%Future salary increases 5.00% 5.50% 4.50% 4.50%Future pension increases 2.50% 2.50% 2.50% 2.50%

Historic summary

Pension scheme: 2013 2012 2011 2010 2009Present value of unfunded obligation 19,525 22,733 20,449 21,402 21,402Fair value of plan assets - - - - -Deficit 19,525 22,733 20,449 21,402 21,402

Pre-transfer benefit - Gold State superannuation Scheme:Present value of unfunded obligation 4,863 5,619 5,651 5,651 7,064Fair value of plan assets - - - - -Deficit 4,863 5,619 5,651 5,651 7,064

Experience adjustments arising on plan liabilities:Pension scheme (1,395) (81) 985 3,153 3,153Pre-transfer benefit - Gold State superannuation (37) 23 224 161 161Scheme

The funding policy adopted by the Government in respect of the defined benefit plans is directed at ensuring thatbenefits accruing to members and beneficiaries are fully funded at the time the benefits become payable. As such,the Schemes’ actuary has considered long-term trends in such factors as scheme membership, salary growth andaverage market value of the schemes’ assets when advising the Government on employer and employeecontribution rates. The employer funding arrangements for the defined benefit plans under the StateSuperannuation Act 2000 are summarised as follows:

Pension Scheme

The Pension Scheme is a unit-based scheme. The level of pension payable is determined by the number of unitspurchased, the length of service and the final salary of the member. The employer liability is funded only on theemergence of a member’s pension benefit entitlement and is recouped by the Government EmployeesSuperannuation Board fortnightly following the payment of each pension.

Employer contributions of $2,086,000 are expected to be paid to the Pension Scheme for the year ending 30 June 2014.

Gold StateSuperannuation

SchemePension Scheme

Pre-transfer benefit -

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37. Provisions (Continued)

Gold State Superannuation Scheme

The Gold State Superannuation Scheme is a lump sum scheme. The Housing Authority is required under the StateSuperannuation Regulations 2001 to make concurrent employer contributions direct to the Scheme in respectof contributory members who are the Authority’s employees.

The employer contribution rate for 2012/13 for contributory members was 15% (2011/12: 15%) of a member’ssalary, based on a 5% member contribution. The employer contribution rate is proportionately less or more where members elect a contribution rate of 3%, 4%, 6% or 7% of salary.

In respect of those members who transferred their membership from the Pension Scheme, the employer liability inrelation to service or period of employment constituted as service for the purposes of the State SuperannuationAct 2000, is calculated at a rate of 12% of final average salary for each year of such service, based upon a 5%member’s average contribution rate to the scheme (this rate is proportionately less where a member’s averagecontribution rate is less than 5%). This employer liability becomes payable on the payment of the benefit to themember.

Employer contributions of $503,000 are expected to be paid to the Gold State Superannuation Scheme for theyear ending 30 June 2014.

38. Other liabilities Consolidated Parent 2013 2012 2013 2012$000 $000 $000 $000

CurrentAccrued expenses:Administrative & general expenses 11,190 9,681 7,576 6,893

11,190 9,681 7,576 6,893Joint venture liabilities - - - -Unearned income 8,783 8,972 8,182 8,224Total current other liabilities 19,973 18,653 15,758 15,117

39. Contributed equity

Opening balance 1,836,711 1,504,576 1,836,711 1,504,576Capital contributions 112,243 176,521 112,243 176,521Other contributions by owner

Royalties for Regions Fund - Regional Infrastructure and 110,400 155,614 110,400 155,614Headworks Account

Closing balance 2,059,354 1,836,711 2,059,354 1,836,711

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Consolidated Parent Restated * Restated * Restated * Restated *

40. Reserves 2013 2012 2011 2013 2012 2011$000 $000 $000 $000 $000 $000

(i) Asset revaluation reserveBalance brought forward from prior period 8,935,239 8,601,284 7,727,617 8,935,239 8,601,284 7,727,617Transferred to retained earnings (118,390) (91,612) (75,274) (118,390) (91,612) (75,274)Revaluations during the period 173,531 425,567 948,941 173,531 425,567 948,941Impairment loss on Rental Properties (22,232) - - (22,232) - -Closing balance 8,968,148 8,935,239 8,601,284 8,968,148 8,935,239 8,601,284

Revaluations recognised during the year were in respect of:Rental properties - current 146,496 415,006 865,672 146,496 415,006 865,672Community Housing properties - current 10,414 (534) 9,516 10,414 (534) 9,516Shared Equity properties - current 3,342 (2,805) 52,002 3,342 (2,805) 52,002Other properties - current 3,062 11,254 1,639 3,062 11,254 1,639Land transferred to Rental properties 10,217 2,646 20,112 10,217 2,646 20,112

173,531 425,567 948,941 173,531 425,567 948,941 Transferred to retained earnings

Revaluation amount of rental properties - sold (78,610) (60,981) (50,870) (78,610) (60,981) (50,870)Revaluation amount of rental properties - demolished (23,741) (20,774) (19,259) (23,741) (20,774) (19,259)Revaluation amount of Community Housing properties - sold (5,778) (1,167) 87 (5,778) (1,167) 87Revaluation amount of other properties - sold - - (226) - - (226)Revaluation amount of Shared Equity properties - sold (10,261) (8,690) (5,006) (10,261) (8,690) (5,006)

(118,390) (91,612) (75,274) (118,390) (91,612) (75,274)

The asset revaluation reserve is used to record increments and decrements on the revaluation of non-current assets, as described in accounting policy note 2(f).

(ii) Interest Assistance Lowstart reserveBalance brought forward from prior year 756 770 788 - - -Transfer to retained profits (9) (14) (18) - - -Closing balance 747 756 770 - - -

Total reserves 8,968,895 8,935,995 8,602,054 8,968,148 8,935,239 8,601,284

41. Retained earnings

Opening balance 2,938,594 2,862,522 3,145,036 2,675,084 2,614,790 2,906,4362,938,594 2,862,522 3,145,036 2,675,084 2,614,790 2,906,436

Prior year adjustment - - 2,445 - - 2,445Transfer from asset revaluation reserve upon disposal 118,390 91,612 75,274 118,390 91,612 75,274Transfer from Interest Assistance Lowstart reserve 9 14 18 - - -Net profit/(loss) for the year (207,172) (15,554) (360,251) (213,296) (31,318) (369,365)Total retained earnings 2,849,821 2,938,594 2,862,522 2,580,178 2,675,084 2,614,790

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Consolidated Parent 42. Reconciliation of cash flows from 2013 2012 2013 2012

operations with profit for the period $000 $000 $000 $000

Net Profit (207,172) (15,554) (213,296) (31,318)Non - cash items:Depreciation & amortisation expense 135,211 131,895 131,156 127,307Doubtful debts expense 8,158 4,788 8,158 4,788Loss on disposal of non-current assets 13,711 16,925 8,324 13,087Cash items:Grants & subsidies and from government (51,744) (164,254) (51,744) (164,254)(Increase)/decrease in assets:Receivables 31,180 87,668 50,553 129,988Inventories (129,534) (118,864) (129,534) (118,864)Other assets 8,475 3,490 9,841 3,588Decrease in Investments in associates 2,245 3,065 - -Increase/(decrease) in liabilities:Provisions (13,417) (14,331) (13,417) (14,331)Payables 73,735 66,253 86,927 71,329Net GST payments 1,357 (8,759) 1,357 (8,759)Net cash flows (used in) provided by operating activities (127,795) (7,678) (111,675) 12,561

43. Purchase of non-current physical assets

Buildings under construction 241,235 249,011 241,235 249,011Computing facilities & equipment 9,641 5,451 8,045 5,205Office machines & equipment 204 188 192 128Properties 123,448 133,252 123,448 133,252Total purchase of non-current physical assets 374,528 387,902 372,920 387,596

44. Reconciliation of cash

For the purposes of the Statement of Cash Flows cash includes cash at bank and interest bearing depositswith Banks.

Cash at the end of the year is shown in the Statement of Financial Position as:

Cash at bank - operational 50,615 122,862 12,250 97,908Deposits at call 199,950 390,098 - -Rental tenants bonds 15,451 14,791 15,451 14,791Joint venture cash 33,945 29,830 33,945 29,830Remote indigenous communities 4,666 4,481 4,666 4,481Indigenous strategic intervention program - 82 - 82Royalties for Regions Fund 81,746 107,697 81,746 107,697

386,373 669,841 148,058 254,789

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45. Remuneration of the accountable authority and senior officers

Remuneration of members of the accountable authority

The number of members of the accountable authority whose total of fees, salaries, superannuation, non-monetary benefitsand other benefits for the financial year, falls within the following bands:

2013 2012$440,001 - $450,000 - 1$470,001 - $480,000 1 -

$000 $000

Base remuneration and superannuation 2013 511 411Annual leave & long service leave accruals (48) 20Other benefits 13 10The total remuneration of the members 476 441of the accountable authority

The total remuneration includes the superannuation expense incurred by the Housing Authority in respect of members of the accountable authority.There are no members of the accountable authority who are currently members of the Pension Scheme.

Remuneration of senior officers

The number of senior officers other than senior officers reported as members of the accountable authority, whose total offees, salaries, superannuation, non-monetary benefits and other benefits for the financial year fall within the followingbands:

2013 2012$20,001 - $30,000 1 -$160,001- $170,000 - 1$180,001- $190,000 1 2$190,001- $200,000 1 2$200,001- $210,000 1 -$210,001- $220,000 1 -

$000 $000

Base remuneration and superannuation 2013 823 879Annual leave & long service leave accruals (23) 26Other benefits 32 23The total remuneration of senior officers 832 928

The total remuneration includes the superannuation expense incurred by the Housing Authority in respect of senior officers other than senior officers reported as members of the accountable authority.There are no senior officers presently employed who are currently members of the Pension Scheme.

Consolidated Parent 46. Remuneration of auditor 2013 2012 2013 2012

$000 $000 $000 $000Remuneration paid or payable to the Auditor General in respect ofthe audit for the current financial year is as follows:

Auditing the accounts, financial statements and key 419 366 290 275performance indicators'

419 366 290 275

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47. Commitments for expenditure Consolidated Parent 2013 2012 2013 2012$000 $000 $000 $000

At June 30 2012 the expenditure commitments being contracted capital expenditure additional to the amounts reported inthe financial statements, are payable as follows:

(a) Capital expenditure commitmentsWithin 1 year 340,612 223,085 340,612 223,085Later than 1 year & not later than 5 years 2,576 1,322 2,576 1,322Later than 5 years 37 - 37 -

343,225 224,407 343,225 224,407The capital commitments include amounts for the following:Dwelling construction & upgrades 222,609 144,565 222,609 144,565Land development and redevelopment 19,333 3,667 19,333 3,667Crisis accommodation program 2,196 4,050 2,196 4,050Joint venture land development 14,627 13,631 14,627 13,631New living 30,793 292 30,793 292Local Government & Community Housing programs 1,681 3,786 1,681 3,786Affordable Housing 51,986 54,416 51,986 54,416

343,225 224,407 343,225 224,407(b) Loan advance commitmentWithin 1 year 243,486 36,233 - -Later than 1 year & not later than 5 years - - - -Later than 5 years - - - -

243,486 36,233 - -Loan advance commitment includes the following:Loans to Home Buyers 243,486 36,233 - -

243,486 36,233 - -

Expenditure commitments have increased by $118.82 million from the previous year.

There has been a slight increase in the 2012-13 commitments for joint venture development mainly due to the additional works of projects in Brookdale, Butler and Dalyellup.

There has been a reduction in the committed carryover for Community Housing due to all new units in the State Community Housing Investment Program (SCHIP) reaching completion. The Housing Authority, in collaboration with the Community Housing sector, will continue to provide and sustain social housing in the State.

Committed carryover for Loans to Homebuyers has increased by $207.25 million. Due to a change in lending criteria, a higher volume of loans were formally approved in 2012-13 than in the prior year, resulting in an increased carryover of loan amounts available for borrowers to draw down.

The high carry over commitments of $51.99 million for the Affordable Housing Construction Program in 2012-13 is due to the continued growth in demand for affordable construction products to homebuyers in WA. The minor drop compared to 2011-12 is as a result of timing issues arising from the signing of both construction and land acquisition contracts in relation to year end cut off.

The increase in capital commitments for the construction of houses is due to the majority of units commencing in the second half of the financial year with some only starting in the last three months of the financial year.

The decrease in 2012-13 Capital commitments for Remote Village Construction has arisen due to more houses reaching completion in 2012-13. Also fewer contracts were entered into in 2012-13 under the Town Reserve Regularisation program as the latter nears completion

There has been an increase in the GROH and Key Workers capital commitments due to a higher number of commencements in2012-13 compared to 2011-12.

Committed carryover for Land Development and Redevelopment has increased from the previous year due to a number of civil works contracts being entered into in 2012-13 with regards to Golden Bay, Bentley Brownlie Towers and Gosnells Verna Street development activities

New Living Development commitments have increased in comparison to the prior year as a result of a later start at Osprey and the Trumpet subdivisions in South Hedland. Developments at Trumpet subdivision are at the tender process and Catamore and Pedlar subdivisions will occur in 2013-14. A further contributing factor is the construction of the “Cottier Apartments” complex in South Hedland that has commenced in 2012-13

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47. Commitments for expenditure (continued) $000 $000 $000 $000

(c) Lease commitments

Commitments in relation to leases contracted for at the end of the reporting period but not recognised in the financialstatements as liabilities are payable as follows:

Rental property leases:Lease commitments on non cancellable operating leases are:Within 1 year 66,960 76,075 66,960 76,075Later than 1 year & not later than 5 years 67,080 71,911 67,080 71,911Later than 5 years 516 1,138 516 1,138

134,556 149,124 134,556 149,124Motor vehicle leases:Lease commitments on non cancellable operating leases are:Within 1 year 759 758 759 758Later than 1 year & not later than 5 years 493 279 493 279

1,252 1,037 1,252 1,037

Office property leases:Lease commitments on non cancellable operating leases are:Within 1 year 4,025 3,517 3,309 2,809Later than 1 year & not later than 5 years 7,656 7,797 5,449 4,965Later than 5 years - 191 - 132

11,681 11,505 8,758 7,906

48. Contingent liabilities

Contaminated sitesUnder the Contaminated Sites Act 2003, the Housing Authority is required to report known and suspected contaminatedsites to the Department of Environment and Conservation (DEC). In accordance with the Act, DEC classifies these siteson the basis of the risk to human health, the environment and environmental values. Where sites are classified ascontaminated - remediation required or possibly contaminated – investigation required, the Housing Authority may have aliability in respect of investigation or remediation expenses. There are three sites that have been identified as'Contaminated - Remediation Required'.

During the year the Housing Authority reported two new suspected contaminated sites to DEC. These sites have yet to beclassified. The Housing Authority is unable to assess the likely outcome of the classification process, and accordingly, itis not practicable to estimate the potential financial effect or to identify the uncertainties relating to the amount or timing ofany outflows. Whilst there is no possibility of reimbursement of any future expenses that may be incurred in theremediation of this site, the Housing Authority may apply for funding from the Contaminated Sites Management Accountto undertake further investigative work or to meet remediation costs that may be required.

Litigation in progressThe Housing Authority has been joined in legal actions involving asbestos related illness. The estimated value of these claimsagainst the Housing Authority is $420,000 (2012: $380,000). Liability is being denied and any legal claim will be defended.

49. Losses to the Housing Authority through thefts, defaults or other causes:

Cashier shortage incurred for the year ended 30 June 2013 was nil. (2012: $51.71).Reportable thefts in the year ended 30 June 2013 was nil (2012: nil).Bad Debts written off by the Accountable Authority in the year ended 30 June 2013 totalled $7,157,836(2012: $4,794,833)Bad Debts recovered during the year ended 30 June 2013 totalled $572,924 (2012: $537,561)

50. Gifts of public property

In the year ended 30 June 2013 the Housing Authority made no gifts of public property.

51. Events occurring after the end of the reporting period

The Housing Authority had no adjusting or non-adjusting events after the end of the reporting period.

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52. Financial instrument disclosures

Financial instruments held by the Consolidated Entity are cash and cash equivalents, other financial assets, loans tohomebuyers, loans to commercial organisations, loans to local and statutory parties, State Nominated borrowings, WATCborrowings, Commonwealth Advances, rental deposits and tenant bonds.

The carrying amounts of each of the following categories of financial assets and financial liabilities at the balancesheet date are as follows:

Consolidated Parent 2013 2012 2013 2012$000 $000 $000 $000

(i) Financial AssetsCash and cash equivalents 50,630 122,871 12,265 97,917 Restricted cash and cash equivalents 135,808 156,881 135,808 156,881Other financial assets 199,950 390,098 - -Investment in associate 12,690 14,935 18,000 18,000Receivables - Keystart preference shares - - 3,275,000 3,535,000 - debentures 19,350 - 19,350 - - general 22,792 7,942 22,150 7,166 - land debtors 33,312 46,222 33,312 46,222 - rent from tenants and other 27,765 26,387 27,765 26,387 - rental and lease bonds 16,918 19,014 16,918 19,014 - loans to homebuyers 3,322,330 3,411,218 18 15 - loans to commercial organisations 4,092 1,206 4,092 1,206 - loans to local and statutory parties 3 19 3 19Other current assets 3,074 2,405 14,150 27,342Total financial assets 3,848,714 4,199,198 3,578,831 3,935,169

(ii) Financial LiabilitiesBorrowings - WATC 4,042,564 4,293,809 4,042,564 4,293,809 - Commonwealth advances 437,409 451,816 437,409 451,816Payables 0- general 104,700 73,489 104,700 73,489- rental deposits and tenant bonds 15,451 14,790 15,451 14,790- rental property water consumption 3,138 2,342 3,138 2,342Other current liabilities 11,163 9,681 7,576 6,893Total financial liabilities 4,614,425 4,845,927 4,610,838 4,843,139

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52. Financial instrument disclosures (continued )

Interest Rate Risk

The following table represents a summary of the interest rate sensitivity of the Consolidated Entity's financial assets andliabilities at the end of the reporting period on the profit for the period and equity for a 1% change in interest rates. It isassumed that the change in interest rates is held constant throughout the reporting period.

The Consolidated Entity's exposure to market interest rates relates primarily to the Consolidated Entity's long term debtobligations.

CONSOLIDATED-1% +1%

Carryingamount Profit Equity Profit Equity

2013 $000 $000 $000 $000 $000(i) Financial AssetsCash and cash equivalents 50,630 (506) (506) 506 506

Restricted cash and cash equivalents 135,808 (1,358) (1,358) 1,358 1,358Other financial assets 199,950 (2,000) (2,000) 2,000 2,000Loans to homebuyers 3,329,627 (33,296) (33,296) 33,296 33,296(refer to note 2 (ab))Debentures 19,350 (194) (194) 194 194

(ii) Financial LiabilitiesBorrowings - WATC floating 2,430,000 24,300 24,300 (24,300) (24,300) - WATC fixed * 1,612,564 - - - - - Commonwealth advances * 437,409 - - - -Total Increase/(Decrease) (13,054) (13,054) 13,054 13,054

-1% +1%Carryingamount Profit Equity Profit Equity

2012 $000 $000 $000 $000 $000(i) Financial AssetsCash and cash equivalents 122,871 (1,230) (1,230) 1,230 1,230

Restricted cash and cash equivalents 156,881 (1,570) (1,570) 1,570 1,570Other financial assets 390,098 (3,900) (3,900) 3,900 3,900

Loans to homebuyers 3,416,252 (34,160) (34,160) 34,160 34,160(refer to note 2 (ab))

(ii) Financial LiabilitiesBorrowings - WATC floating 3,785,000 37,850 37,850 (37,850) (37,850) - WATC fixed * 508,809 - - - - - Commonwealth advances * 451,816 - - - -Total Increase/(Decrease) (3,010) (3,010) 3,010 3,010

* Commonwealth Advances and WATC (fixed) are fixed interest loans that are not affected by interest rates.

Interest rate risk

Interest rate risk

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PARENT-1% +1%

Carryingamount Profit Equity Profit Equity


Restricted cash and cash equivalents 135,808 (1,358) (1,358) 1,358 1,358Keystart preference shares 3,275,000 (32,750) (32,750) 32,750 32,750Debentures 19,350 (194) (194) 194 194

(ii) Financial LiabilitiesBorrowings - WATC floating 2,430,000 24,300 24,300 (24,300) (24,300) - WATC fixed * 1,612,564 - - - - - Commonwealth advances * 437,409 - - - -Total Increase/(Decrease) (10,125) (10,125) 10,125 10,125

-1% +1%Carryingamount Profit Equity Profit Equity


Restricted cash and cash equivalents 156,881 (1,569) (1,569) 1,569 1,569Keystart preference shares 3,535,000 (35,350) (35,350) 35,350 35,350

(ii) Financial LiabilitiesBorrowings - WATC floating 3,785,000 37,850 37,850 (37,850) (37,850) - WATC fixed * 508,809 - - - - - Commonwealth advances * 451,816 - - - -Total Increase/(Decrease) (48) (48) 48 48

* Commonwealth Advances and WATC (fixed) are fixed interest loans that are not affected by interest rates.

Interest rate risk

Interest rate risk

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52. Financial instrument disclosures (continued)

Credit Risk

CONSOLIDATED

More than More thanNot past due 3 months 6 months Impaired

Carrying and not Not more less than less than More than financialAmount impaired than 3 months 6 months 1 year 1 year assets

$000 $000 $000 $000 $000 $000 $000

2013

Cash and cash equivalents 50,630 50,630 - - - - -Restricted cash and cash equivalents 135,808 135,808 - - - - -Receivables - debentures 19,350 19,350 - - - - - - general 22,792 20,669 324 81 167 1,551 - - land debtors 33,312 17,161 939 - 15,212 - - - rent from tenants and other 27,765 3,762 8,737 3,698 5,022 6,546 - - rental lease bonds 16,918 15,610 616 624 68 - -Other current assets 3,074 3,074Loans and advances - loans to homebuyers 3,322,330 3,322,330 - - - - - - loans to commercial organisations 4,092 4,092 - - - - - - loans to local and statutory organisations 3 3 - - - - -Other financial assets 199,950 199,950 - - - - -Investment in associate 12,690 12,690 - - - - -Total financial assets 3,848,714 3,805,129 10,616 4,403 20,469 8,097 -

2012

Cash and cash equivalents 122,871 122,871 - - - - -Restricted cash and cash equivalents 156,881 156,881 - - - - -Receivables - general 7,942 4,949 2,432 72 297 192 - - land debtors 46,222 42,663 367 1,823 507 862 - - rent from tenants and other 26,387 2,367 10,050 2,731 4,955 6,078 206 - rental lease bonds 19,014 15,099 843 1,054 1,840 114 64Other current assets 2,405 2,405Loans and advances . - loans to homebuyers 3,411,218 3,391,587 19,631 - - - - - loans to commercial organisations 1,206 1,206 - - - - - - loans to local and statutory organisations 19 19 - - - - -Other financial assets 390,098 390,098 - - - - -Investment in associate 14,935 14,935 - - - - -Total financial assets 4,199,198 4,145,080 33,323 5,680 7,599 7,246 270

Aged analysis of financial assets

Past due but not impaired

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52. Financial instrument disclosures (continued)

Credit Risk

PARENT

More than More than Not past due 3 months 6 months Impaired

Carrying and not Not more less than 6 less than More than financialAmount impaired than 3 months months 1 year 1 year assets

$000 $000 $000 $000 $000 $000 $000

2013 Cash and cash equivalents 12,265 12,265 - - - - -Restricted cash and cash equivalents 135,808 135,808 - - - - -Receivables - debentures 19,350 19,350 - - - - - - general 22,150 20,027 324 81 167 1,551 - - land debtors 33,312 17,161 939 - 15,212 - - - rent from tenants and other 27,765 3,762 8,737 3,698 5,022 6,546 - - rental lease bonds 16,918 15,610 616 624 68 - -Other current assets 14,150 14,150Loans and advances - loans to homebuyers 18 18 - - - - - - loans to commercial organisations 4,092 4,092 - - - - - - loans to local and statutory organisations 3 3 - - - - -Keystart preference shares 3,275,000 3,275,000 - - - - -Investment in associate 18,000 18,000 - - - - -Total financial assets 3,578,831 3,535,246 10,616 4,403 20,469 8,097 -

2012

Cash and cash equivalents 97,917 97,917 - - - - -Restricted cash and cash equivalents 156,881 156,881 - - - - -Receivables - general 7,166 4,173 2,432 72 297 192 - land debtors 46,222 42,663 367 1,823 507 862 - rent from tenants and other 26,387 2,367 10,050 2,731 4,955 6,078 206 - rental lease bonds 19,014 15,099 843 1,054 1,840 114 64Other current assets 27,342 27,342Loans and advances - loans to homebuyers 15 15 - - - - - - loans to commercial organisations 1,206 1,206 - - - - - - loans to local and statutory organisations 19 19 - - - - -Keystart preference shares 3,535,000 3,535,000 - - - - -Investment in associate 18,000 18,000 - - - - -Total financial assets 3,935,169 3,900,682 13,692 5,680 7,599 7,246 270

Aged analysis of financial assets

Past due but not impaired





Liquidity risk and interest rate exposure

CONSOLIDATED Contractual Maturity DatesWeighted Fixed Variable Non- Within 1 - 2 2 - 3 3 - 4 4 - 5 More Adjustment TotalAverage Interest Interest Interest 1 year years years years years than 5 for carryingEffective Rate Rate Bearing years discounting amount

Interest Rate2013 % $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000

(i) Financial AssetsCash and cash equivalents 3.09% - 50,630 - 50,630 - - - - - - 50,630Restricted cash and cash equivalents 3.40% - 135,808 - 135,808 - - - - - - 135,808Receivables - - - - - - - - - - debentures 20.00% 19,350 19,350 19,350 - general *** - - 22,792 22,792 - - - - - - 22,792 - land debtors *** - - 33,312 33,312 - - - - - - 33,312 - rent from tenants and other - - 27,765 27,765 - - - - - - 27,765 - rental and lease bonds *** - - 16,918 16,918 - - - - - - 16,918Other current assets *** - - 3,074 3,074 - - - - - - 3,074Loans and advances - - loans to homebuyers 5.51% 18 3,322,312 - - - - - - 3,322,330 - 3,322,330 - loans to commercial organisations 7.00% 3,967 - 125 3,967 - - - - 125 - 4,092 - loans to local and statutory parties *** - - 3 - - - - - 3 - 3Other financial assets 3.46% - 199,950 - 199,950 - - - - - - 199,950Investment in associate *** - - 12,690 - - - - - 12,690 - 12,690Total financial assets 23,335 3,708,700 116,679 513,566 - - - - 3,335,148 - 3,848,714

(ii) Financial LiabilitiesBorrowings - WATC 3.32% 1,612,564 2,430,000 - 2,341,486 773,856 1,180,999 355,049 602,037 6,297,509 7,508,372 4,042,564 - Commonwealth advances 4.56% 437,409 - - 34,366 34,084 33,773 33,418 33,125 534,817 266,174 437,409Payables- general * *** - - 104,700 104,700 - - - - - - 104,700- rental deposits and tenant bonds ** *** - - 15,451 15,451 - - - - - - 15,451- rental property water consumption *** - - 3,138 3,138 - - - - - - 3,138Other current liabilities *** - - 11,163 11,163 - - - - - - 11,163Total financial liabilities 2,049,973 2,430,000 134,452 2,510,304 807,940 1,214,772 388,467 635,162 6,832,326 7,774,546 4,614,425

Interest rate exposure and maturity analysis of financial assets and financial liabilities






CONSOLIDATED Contractual Maturity DatesWeighted Fixed Variable Non- Within 1 - 2 2 - 3 3 - 4 4 - 5 More Adjustment TotalAverage Interest Interest Interest 1 year years years years years than 5 for carryingEffective Rate Rate Bearing years discounting amount

Interest Rate2012 % $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000

(i) Financial AssetsCash and cash equivalents 4.74% - 122,871 - 122,871 - - - - - - 122,871Restricted cash and cash equivalents 4.74% - 156,881 - 156,881 - - - - - - 156,881Receivables - - general *** - - 7,942 7,942 - - - - - - 7,942 - land debtors *** - - 46,222 46,222 - - - - - - 46,222 - rent from tenants and other *** - - 26,387 26,387 - - - - - - 26,387 - rental and lease bonds *** - - 19,014 19,014 - - - - - - 19,014Other current assets *** - - 2,405 2,405 - - - - - - 2,405Loans and advances - loans to homebuyers 6.43% 15 3,411,203 - - - 3,411,218 - 3,411,218 - loans to commercial organisations 7.00% 1,144 - 62 1,144 - - - - 62 - 1,206 - loans to local and statutory parties *** - - 19 - - - - - 19 - 19Other financial assets 4.71% - 390,098 - 390,098 - - - - - - 390,098Investment in associate *** - - 14,935 - - - - - 14,935 - 14,935Total financial assets 1,159 4,081,053 116,986 772,964 - - - - 3,426,234 - 4,199,198

(ii) Financial LiabilitiesBorrowings - WATC 4.63% 508,809 3,785,000 - 2,969,642 937,603 824,232 521,547 328,235 2,343,600 3,631,050 4,293,809 - Commonwealth advances 4.55% 451,816 - - 34,640 34,362 34,080 33,770 33,414 568,006 286,456 451,816Payables- general * *** - - 73,489 73,489 - - - - - - 73,489- rental deposits and tenant bonds ** *** - - 14,790 14,790 - - - - - - 14,790- rental property water consumption *** - - 2,342 2,342 - - - - - - 2,342Other current liabilities *** - - 9,681 9,681 - - - - - - 9,681Total financial liabilities 960,625 3,785,000 100,302 3,104,584 971,965 858,312 555,317 361,649 2,911,606 3,917,506 4,845,927

* Payables general includes an amount of $799,221 (2012 $1,060,507) for estate improvements. These funds are committed to various groups across the state. The repayment of these funds is based on the property market activity within each area. The maturity is not date based and cannot be forecast.** Rental deposits and Tenant bonds are repayable only when the tenant vacates the rental property. The full amount owing is not necessary the amount that will be repaid upon vacation as this money can be offset against any outstanding rental payments or other payments that are outstanding.*** Not applicable for non-interest bearing financial instruments







PARENT Contractual Maturity DatesWeighted Fixed Variable Non- Within 1 - 2 2 - 3 3 - 4 4 - 5 More Adjustment TotalAverage Interest Interest Interest 1 year years years years years than 5 for carryingEffective Rate Rate Bearing years discounting amount

Interest Rate2013 % $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000

(i) Financial AssetsCash and cash equivalents 3.40% - 12,265 - 12,265 - - - - - - 12,265Restricted cash and cash equivalents 3.40% - 135,808 - 135,808 - - - - - - 135,808Receivables - debentures 20% 19,350 19,350 - - - - - - 19,350 - general *** - - 22,150 22,150 - - - - - - 22,150 - land debtors *** - - 33,312 33,312 - - - - - - 33,312 - rent from tenants and other *** - - 27,765 27,765 - - - - - - 27,765 - rental and lease bonds *** - - 16,918 16,918 - - - - - - 16,918Other current assets *** - - 14,150 14,150 - - - - - - 14,150Loans and advances - loans to homebuyers 5.38% 18 - - - - - - - 18 - 18 - loans to commercial organisations 7.00% 3,967 - 125 3,967 - - - - 125 - 4,092 - loans to local and statutory parties *** - - 3 - - - - - 3 - 3Keystart preference shares 2.97% 845,000 2,430,000 - 1,850,000 500,000 575,000 50,000 300,000 - - 3,275,000Investment in associate *** - - 18,000 - - - - - - 18,000 18,000Total financial assets 868,335 2,578,073 132,423 2,135,685 500,000 575,000 50,000 300,000 146 18,000 3,578,831

(ii) Financial LiabilitiesBorrowings - WATC 3.32% 1,612,564 2,430,000 - 2,341,486 773,856 1,180,999 355,049 602,037 6,297,509 7,508,372 4,042,564 - Commonwealth advances 4.56% 437,409 - - 34,366 34,084 33,773 33,418 33,125 534,817 266,174 437,409Payables- general * *** - - 104,700 104,700 - - - - - - 104,700- rental deposits and tenant bonds ** *** - - 15,451 15,451 - - - - - - 15,451- rental property water consumption *** - - 3,138 3,138 - - - - - - 3,138Other current liabilities *** - - 7,576 7,576 - - - - - - 7,576Total financial liabilities 2,049,973 2,430,000 130,865 2,506,717 807,940 1,214,772 388,467 635,162 6,832,326 7,774,546 4,610,838







PARENT Contractual Maturity DatesWeighted Fixed Variable Non- Within 1 - 2 2 - 3 3 - 4 4 - 5 More Adjustment TotalAverage Interest Interest Interest 1 year years years years years than 5 for carryingEffective Rate Rate Bearing years discounting amount

Interest Rate2012 % $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000

(i) Financial AssetsCash and cash equivalents 4.74% - 97,917 - 97,917 - - - - - - 97,917Restricted cash and cash equivalents 4.74% - 156,881 - 156,881 - - - - - - 156,881Receivables - general *** - - 7,166 7,166 - - - - - - 7,166 - land debtors *** - - 46,222 46,222 - - - - - - 46,222 - rent from tenants and other *** - - 26,387 26,387 - - - - - - 26,387 - rental and lease bonds *** - - 19,014 19,014 - - - - - - 19,014Other current assets *** - - 27,342 27,342 - - - - - - 27,342Loans and advances - loans to homebuyers 5.38% 15 - - - - - - - 15 - 15 - loans to commercial organisations 7.00% 1,144 - 62 1,144 - - - - 62 - 1,206 - loans to local and statutory parties *** - - 19 - - - - - 19 - 19Keystart preference shares 4.58% 50,000 3,485,000 - 2,205,000 580,000 500,000 200,000 - 50,000 - 3,535,000Investment in associate *** - - 18,000 - - - - - 18,000 - 18,000Total financial assets 51,159 3,739,798 144,212 2,587,073 580,000 500,000 200,000 - 68,096 - 3,935,169

(ii) Financial LiabilitiesBorrowings - WATC 4.63% 508,809 3,785,000 - 2,969,642 937,603 824,232 521,547 328,235 2,343,600 3,631,050 4,293,809 - Commonwealth advances 4.55% 451,816 - - 34,640 34,362 34,080 33,770 33,414 568,006 286,456 451,816Payables- general * *** - - 73,489 73,489 - - - - - - 73,489- rental deposits and tenant bonds ** *** - - 14,790 14,790 - - - - - - 14,790- rental property water consumption *** - - 2,342 2,342 - - - - - - 2,342Other current liabilities *** - - 6,893 6,893 - - - - - - 6,893Total financial liabilities 960,625 3,785,000 97,514 3,101,796 971,965 858,312 555,317 361,649 2,911,606 3,917,506 4,843,139

* Payables general includes an amount of $799,221 (2012 $1,060,507) for estate improvements. These funds are committed to various groups across the state. The repayment of these funds is based on the property market activity within each area. The maturity is not date based and cannot be forecast.** Rental deposits and Tenant bonds are repayable only when the tenant vacates the rental property. The full amount owing is not necessarily the amount that will be repaid upon vacation as this money can be offset against any outstanding rental payments or other payments that are outstanding.*** Not applicable for non-interest bearing financial instruments


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EXPLANATORY STATEMENT OF FINANCIAL RESULTS

53(a). COMPARISONS OF ESTIMATES 2012-13 AND ACTUAL OPERATING RESULTS FOR 2012-13

Section 40 of the Financial Management Act 2006 requires The Housing Authority to prepare annual budget estimates. Treasurer's Instruction 945 requires an explanation of significant variations between these estimates and actual results. Significant variations are considered to be those greater/less than $10 million or 10% greater/less than the budgeted amount.

Budget Actual Variation$000 $000 $000

1. Revenues have varied by the following:

* Sales 788,679 315,734 (472,945)

* Rental revenue 382,815 430,121 47,306

* Commonwealth grants and contributions 250,189 204,692 (45,497)

* Interest revenue 255,263 115,399 (139,864)

* Developers' contributions 218 5,536 5,318

* Other gains 46,991 70,336 23,345

2. Expenses have varied by the following:

* Cost of sales 670,073 203,450 (466,623)

* Rental expenses 309,348 327,057 17,709

Rental Expense are over budget mostly due to an an increase in lease costs associated with properties leased by GROH.

Interest Revenue is below budget due to a reduced Keystart loan portfolio. The expected market demand did not eventuate in 2011-12 resulting in a smaller loan book with less borrowings in 2012-13 and consequently reduced interest. Keystart interest is fully offset under Finance Costs.

The Authority has received financial contributions from Community Housing Organisations in relation to the receipt of properties funded through the State Community Housing Investment Program. The variance is attributable to timing differences

The under budget position on Cost of Sales reflects the reduced number of lots sold, as well as a reduction in selling expenses associated with decreased sales.

Sales revenue came in under the original budget of $788.68 million by 60%. Contributing factors were underspend in the acquisition of suitable vacant land for the Affordable Housing program, which has impacted the progress in construction. Sales revenues were also impacted due to delays in settlements caused by Native Title issues.

The variance of $47.31 million is primarily attributable to an increase in GROH rents. GROH has increased the number of properties they have to rent to meet demands for government housing in remote and regional areas. This combined with increased lease costs for accommodation has led to the budget for Rent revenue being exceeded.

This variance is predominantly due to a portion of the 2012-13 funding from the Commonwealth Indigenous Housing NPA being received in 2011-12 as the program was ahead of targets.

The increase in Other gains to the 2012-13 Actual is made up of an additional $11 million Keystart dividend. The GST liability for land development was $5.47 million less than anticipated.

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53(a). COMPARISONS OF ESTIMATES 2012-13 AND ACTUAL OPERATING RESULTS FOR 2012-13 (continued)

Budget Actual Variation$000 $000 $000

* Loss on disposal of non-current assets 3,626 8,323 4,697

* Community support expense 225,839 250,721 24,882

* Accommodation expenses 7,965 11,643 3,678

* Finance costs 316,161 162,797 (153,364)

* Grants and subsidies from State Government 64,172 51,744 (12,428)

The under budget position of $4.70 million reflects increased activity in the New Living program, in particular the demolition of properties which have reached the end of their useful life to enable more efficient use of public land.

Community support expense is higher than anticipated due to the NPA Remote Indigenous Housing program being ahead of targets.

Expenses exceeded budget during the year due to increased costs in leasing and maintenance of the Authority's offices.

Finance costs are lower than budget due to the expected market demand not eventuating in 2011-12, resulting in a smaller loan book with less borrowings in 2012-13 and consequently reduced finance costs. Finance Costs are fully offset against Keystart interest.

In 2012-13 there was a reduction of $25 million State appropriation for GST recoup which is to be received as equity in 2013-14. Offsetting this is the $14.61 million funding from Department of Fire and Emergency Services under WANDRRA for the rebuilding of Warmun community after unforeseen floods destroyed the community.

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53(b). COMPARISONS OF ACTUAL OPERATING RESULTS FOR 2012-13 WITH THOSE OF THE PRECEDING YEAR

Details and reasons for significant variations between actual operating results for 2012-13 and the preceding year aredetailed below. Significant variations are considered to be those greater/less than $10 million or 10% greater/less than the actual amount for the preceding year.

Actual Actual Variation2013 2012

1. Revenues have varied by the following: $000 $000 $000

* Sales 315,734 197,751 117,983

* Rental revenue 430,121 389,952 40,169

* Commonwealth grants and contributions 204,692 277,051 (72,359)

* Interest revenue 115,399 178,190 (62,791)

* Developers' contributions 5,536 1,475 4,061

* Other gains 70,336 56,478 13,858

2. Expenses have varied by the following:

* Cost of sales 203,450 97,807 105,643

Commonwealth grants and contributions have decreased by $72.36 million. Funding under the National Partnership Agreement for remote indigenous communities decreased by $79.82 million in 2012-13. The Authority received additional funding from the Commonwealth for the Homelessness strategy of $5.85 million.

Sales have increased by $117.98 million. This is due to a significant increase in the sale of Affordable Housing properties to the public of Western Australia with the program in its second year.

Rental revenue has increased by $40.17 million primarily due to an increase in the rents of Government Regional Officers Housing properties by $31.15 million. There was an increase in the number of properties required to meet the demand for housing government workers in remote and regional areas, and an sharp increase in rents in the north west of the State, as can be seen in the explanation for the increase in rental expenses. Public housing rents increased by $7.57 million due to a market rent increases across the portfolio.

Interest revenue has decreased by $62.79 million. This is predominantly due to a decrease in the value of preference shares as a result of a reduction in the Keystart loan portfolio this financial year and a decrease in rates of WATC borrowings for Keystart.

Developers' contributions has increased by $4.06 million due to a number of Community Housing contributions to current construction projects, including $2 million from BHP for Keyworkers.

Other gains have increased by $13.86 million. This is due to an increase in dividend received from Keystart of $11 million. The Authority also received $2.48 million more in Other Income from joint venture operations

Cost of sales has increased by $105.64 million due to a significant cost increase of $91.02 million in the sale of Affordable Housing properties to the public of Western Australia with the program in its second year. There has also been a increase of $8.45 million in the cost of general land sales for the financial year.

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53(b). COMPARISONS OF ACTUAL OPERATING RESULTS FOR 2012-13 WITH THOSE OF THE PRECEDING YEAR (continued)

Actual Actual Variation2013 2012$000 $000 $000

* Rental expenses 327,057 315,962 11,095

* New Living expenses 33,743 27,591 6,152

* Supplies and services 54,377 45,625 8,752

* Finance costs 162,797 229,272 (66,475)

* Accommodation expenses 11,643 9,097 2,546

* Loss on disposal of non-current assets 8,323 13,087 (4,764)

* Other expenses 134,876 98,035 36,841

3. Grants and subsidies from State Government have varied by the following:

* Grants and subsidies from State Government 51,744 164,254 (112,510)

Other expenses have increased by $36.84 million predominantly due to an increase in the transfer of properties to the Community Housing sector under the Commonwealth Stimulus program by $20.90 million, an increase in the impairment provision of $3.37 million and professional services of $2.08 million. Land operating expenses increased by $5.90 million due to increased activity, along with an increase in Affordable Housing expenses of $1.95 million.

New Living expenses have increased by $6.15 million as a result of increased spending in property improvements in the program.

Rental expenses have increased by $11.10 million predominantly due to an $9.24 million increase in rental property improvements to preserve assets of the Authority, an increase of $14.99 million in properties leased by Government Regional Officers Housing and an increase of $4.45 million in property rates expense. Maintenance expenses have reduced by $23.16 million with tighter management of the maintenance contract with a general increase in rental property expense of $5.61 million.

State grants have decreased by $112.51 million due to the following reasons. In the 2012-13 financial year the Authority received $39.29 million less funds for the Warmun rebuilding program due to the bulk of the project being carried out in 2011-12. Funding for the growth of the community housing sector of $38.90 million was received in 2011-12. No further funding was received in 2012-13. Royalties for Regions recurrent funding of $8.4 million for key workers and Indigenous communities was received in 2011-12. No further recurrent funding was received in 2012-13. In 2012-13 there was a reduction of $25.00 million in State appropriation for GST recoup which is to be received as equity in 2013-14.

Supplies and services expense has increased by $8.75 million. This is due to an increase in the payment of contract employees of $4.21 million, to facilitate the progressive change in business activities such as the Affordable Housing Strategy Shared Equity scheme 'Shared Start' and an increase of $1.31 million in staff general expenses. The Authority also recovered $3.57 million in contractor costs in the previous financial year.

Finance costs have decreased by $66.47 million due to a decrease in borrowings from Western Australian Treasury Corporation for Keystart home loans. This is directly linked to a decrease in interest revenue. There was also a general reduction in Western Australian Treasury Corporation borrowings providing a saving of $5.61 million for the year.

Accommodation expenses have increase by $2.54 million due to the provision of accommodation for increased staffing levels for the Northgate Project and other areas of the Authority.

Loss on sale of non-current assets has decreased by $4.76 million predominantly due to an increase in the consideration received for rental properties compared to their book values


Key Performance Indicators

Certification of Key Performance IndicatorsI hereby certify that the key performance indicators are based on proper records, are relevant and appropriate for assisting users to assess the Housing Authority’s performance, and fairly represent the performance of the Housing Authority and its subsidiary for the financial year ended 30 June 2013.

Grahame Searle Chief Executive Officer Accountable Authority

10 September 2013


Key Performance IndicatorsOutcome: Housing eligible Western Australians

The Authority primarily contributes to the following government goal:

> Goal 3: Results-Based Service Delivery–greater focus on achieving results in key service delivery areas for the benefit of all Western Australians.

The Authority seeks to enhance the quality of life and wellbeing of all people throughout Western Australia by satisfying the basic need for shelter. In the wider context, affordable, safe and secure housing assists in contributing to positive social outcomes in health, education and employment. The Authority contributes to Goal 3 by providing housing through its rental housing, home finance and land activities for eligible Western Australians who may not otherwise be able to obtain housing. Through the provision of Government Regional Officers’ Housing, the Authority also provides government employees with suitable and appropriate housing in regional and remote areas to support the delivery of public services such as education and policing.

Eligibility for public rental housing and home loans is determined by assessable income limits and other eligibility criteria. The opportunity to purchase the Authority’s land, priced in the low to medium price bracket, is available to all Western Australians. In addition, the Authority makes available loans to cover the cost of security bonds so that income-eligible applicants can access housing in the private rental market.

It is a key strategy of the Authority to ease the pressure on the waiting list for public housing by expanding the range and diversity of housing products and services for people on low to moderate incomes. Varying alternatives will provide new entry points for clients as well as new and evolving options that support their transition along the housing continuum as their circumstances improve, either through the purchase of a low to medium priced housing lot or through a home loan.


Key Performance IndicatorsEffectiveness indicator 1

The extent to which the Housing Authority is responsive to the housing needs of eligible Western AustraliansThis indicator measures the Authority’s capacity to respond to expressed unmet housing demand. It is calculated as the ratio of the total number of units of housing assistance provided each year, to the number on the waiting list at 30 June of the previous year. The higher the ratio, the greater the assistances provided in relation to expressed unmet demand.

Housing assistances comprise of: public rental housing; people housed from the waiting list into community housing options; bond assistance loans; home loans and land sales. The Authority’s public rental housing waiting list is used to represent total expressed unmet housing demand, as the other forms of housing assistance do not have a waiting list.

0.5

0.7

0.9

1.1

1.3

1.5

Ratio

2008-09 2009-10 2010-11 2011-12 2012-13

Target

Ratio

Actual Target

2008–09 2009–10 2010–11 2011–12 2012–13 2012–13

Total housing assistances #1

19,431 22,378 16,555 13,796 14,577

Public rental waiting list at June previous financial year 16,932 21,728 24,136 23,411 22,871

Ratio 1.15 1.03 0.69 0.59 0.64 0.84

Comment on performance:The ratio (0.64) for 2012-13 was lower than the Target (0.84). The Bond Assistance Loan Scheme is an alternative to public housing and assists income eligible people with limited finances to enter the private rental housing market with the support of a bond loan. The estimated demand on the Bond Assistance Loan Scheme in 2012-13 was based on historical trend information. This projection did not eventuate due to a significant decline in the private rental market vacancy rate and a corresponding increase in the median weekly rent of available properties. The unexpected change in vacancy rates and affordability effectively excluded many low income households from movement within the marketplace and, consequently, reduced the demand for bond assistance.

Ratio of the number of units of housing assistance per annum to the number on the waiting list at the start of the reporting period

#1 For 2012-13 the total units of housing assistance comprised: number of people (applications) allocated from the waiting list into community housing options :515; number of home loans approved (new and increased)a : 2,774; number of Housing Authority (including Joint Venture partner) land sales below $175,000b :663; number of public rental occupations :2,868; number of bond assistance loans approved :7,757.a From 2010-11 increased loans are only provided to clients to buy additional equity.b The benchmark cut-off for the lower end of the market ($175,000) lower quartile is derived from the Real

Estate Institute of Western Australia’s Market Update Report (March Quarter 2013), which contains the final December Quarter 2012 lower quartile. The report provides the lower quartile for Western Australia (State) residential land sales.(2008-09=$175,000; 2009-10=$161,000; 2010-11=$172,000; 2011-12=$168,000).



Waiting times for accommodation – applicants housedThis indicator measures the Authority’s capacity to provide public rental housing to eligible applicants who are on the waiting list. Waiting times for accommodation measures the time between an applicant being listed on the waiting list and when they are housed. The greater the capacity to meet demand, the shorter the waiting time. The waiting time indicator includes properties that are head leased to community housing providers.

The graph below shows the waiting times of all applicants housed during the year in terms of average and median.

Average

2008-09 2009-10 2010-11 2011-1291 93 113 131

63 72 91 111

2012-13132

98

134115

Target Average

Target Median

Median

Wee

ks

20

40

60

80

100

120

1402008–09

(%)2009–10

(%)2010–11

(%)2011–12

(%)2012–13

(%)

< 1 month 17.22#1 21.38#1 14.08 12.19 14.47

1-12 months 26.82 20.90 22.07 21.18 21.90

1-3 years 34.44 35.14 34.34 30.17 27.44

3-5 years 15.28 15.52 19.11 20.73 18.24

5+ years 6.24 7.07 10.40 15.73 17.96

Comment on performance:The average waiting time was consistent with the 2012-13 Target.

Overall the rental waiting list has decreased from 23,411 in 2011-12 to 22,871 in 2012-13. A higher proportion of applicants were housed in less than 12 months during 2012-13 (36.37 per cent) compared to the previous year (33.37 per cent), particularly those who waited less than one month. This has resulted in a decrease in the median waiting time.

Waiting times for accommodation - applicants housed average and median in weeks The table below illustrates the distribution of wait times for applicants housed

#1 An increase in the allocation of housing to community housing providers (head leases) where the wait times are negligible has impacted upon the category for within one month.



The extent to which the Government Regional Officers’ Housing is responsive to the provision of housing to meet the needs of eligible Western Australian government employeesThis indicator measures the capacity to provide accommodation in response to requests from government departments. This is calculated as supply divided by demand and is presented as a percentage. Supply is represented by the number of properties allocated to departments at the end of the financial year. Demand is calculated by adding the number of properties allocated to departments to the number of unmet accommodation requests from departments at the end of the financial year.

90919293949596979899

100

Actual

2008-09 2009-10 2010-11 2011-12 2012-13

2012-13 Target

Perc

enta

ge

Actual Target

2008-09 2009-10 2010-11 2011-12 2012-13 2012-13

Supply 4,902 4,944 5,099 5,213 5,235

Demand 5,225 5,227 5,332 5,439 5,554

Percentage of demand met 94% 95% 96% 96% 94% 95%

Comment on performance:The Authority met 94 per cent of requests in 2012-13 to provide government employees with suitable and appropriate housing in regional and remote areas supporting the delivery of public services.

The percentage of demand met (94 per cent) was consistent with the Target (95 per cent) and with results from previous years.

Percentage of demand met Supply and demand


Key Performance IndicatorsEfficiency indicators:The Authority provides four major services: rental housing, home loans, residential land and Government Regional Officers’ Housing.

Service 1: Rental HousingThis service contributes to the Authority’s outcome by providing eligible Western Australians with:

> public rental housing and State-owned Indigenous public housing

> community housing managed properties: rental properties managed by not-for-profit housing companies, community organisations, housing associations and local governments through the Authority’s joint venture and community housing and crisis accommodation programs

> properties built for Indigenous communities.


Key Performance IndicatorsEfficiency indicator 1

Operating cost per rental propertyThe operating cost per rental property measures the cost efficiency of rental housing, and is calculated by dividing the total cost of the service (total expenses) of the Authority by the total number of rental properties.

The total operating cost of the rental service consists of:

> administration costs (employee benefits, supplies and services, and accommodation)

> finance costs

> New Living program (refurbishment of public housing in high density areas)

> depreciation and amortisation

> rental expenses

> other expenses

> community support (includes the repair and maintenance of infrastructure, as well as power, water and wastewater in Indigenous communities and town reserves, which cannot be directly attributed to a property).

Expenses relating to community housing managed properties are borne by both the Authority and the community housing organisations.

Nominal rental cost*

2008-09 2009-10 2010-11 2011-12 2012-13

$11,624 $12,190 $11,886 $13,614

$14,397

$11,624 $12,505 $12,539 $14,670 $14,766

$13,408

2012-13 Nominal cost target

Real rental cost**

$ do

llars

7,500

10,000

12,500

15,000

17,500

Comment on performance:The operating cost per rental property for 2012- 13 ($14,766) was consistent with the Target ($14,397).

Operating cost per rental property (nominal and real)

* Nominal refers to the face value of the money.** Real refers to the value of money adjusted for inflation (Consumer Price Index – All Groups Perth):

the cost per rental property has been adjusted to 2008-09 prices.


Comment on performance:The operating cost per current loan account ($2,078) was higher than the target ($1,367) due to the effect on demand of new lending criteria changes occurring later in the financial year than expected. Changes to lending criteria, announced in October 2012, lifted the income caps, the property purchase price caps and the allowable debt level. As a result the number of active home loans was lower than anticipated resulting in a higher cost per operating cost per current loan account.

Key Performance IndicatorsService 2: Home LoansThis service contributes to the Authority’s outcome by providing home ownership schemes for eligible applicants.

Efficiency indicator 2

Operating cost per current loan account

The cost per current loan account measures the cost efficiency in home ownership products and services. It is calculated by dividing the total cost of the service (total expenses) by the total number of loans (Keystart and other loan products).

The total operating cost of the home loans service consists of:

> administration costs (employee benefits, supplies and services and accommodation)

> community support


> rental expenses

> other expenses.

Keystart finance costs for loan advances to clients are excluded, as borrowing costs are incurred and borne by clients and therefore do not relate to the resources in approving and processing loan applications and managing loan accounts.

Nominal loancost*

$1,520 $1,297 $1,493

$1,367

$1,520 $1,330 $1,575 $1,845

$1,712

$2,078

$1,887


Real loan cost**

$ do

llars

1,000

1,250

1,500

1,750

2,000

2,250

2008-09 2009-10 2010-11 2011-12 2012-13

Operating cost per current loan account (nominal and real)

* Nominal refers to the face value of the money. ** Real refers to the value of money adjusted for inflation (Consumer Price Index – All Groups Perth):

the cost per current loan account has been adjusted to 2008-09 prices.


Key Performance IndicatorsService 3: LandThis service contributes to the Authority’s outcome by providing housing lots.


Operating cost per lot developed

This indicator measures the efficiency of the land service. It is calculated by dividing the total cost of the service (total expenses) by the number of lots and dwelling unit equivalents developed. Number of lots is used for the land development programs of Joint Ventures, Urban Development and New Living. Number of dwelling unit equivalents is used for the Urban Redevelopment Program rather than lots, as the intent of the program is to produce group and higher density housing instead of lots.

The total operating cost of the land service consists of:

> administration costs (employee benefits, supplies and services and accommodation)


> finance costs

> rental expenses

> other expenses.

Nominal land cost*

$25,498 $18,103 $17,431 $18,413

$14,066

$25,498 $18,571 $18,389 $19,841 $24,367

$22,126


Real land cost**

$ do

llars

5,000

10,000

15,000

20,000

25,000

30,000

2008-09 2009-10 2010-11 2011-12 2012-13

Comment on performance:The operating cost per lot developed ($24,367) was higher than the Target ($14,066) due to a number of projects not meeting their lot development completion targets in 2012-13. This was principally due to not receiving statutory clearances within the anticipated timeframes, including native title clearances, environmental clearances and statutory planning approvals. These will be delivered in 2013-14.

Operating cost per lot developed (nominal and real)


the cost per lot developed has been adjusted to 2008-09 prices.


Key Performance IndicatorsService 4: Government Regional Officers’ HousingThis service contributes to the Authority’s outcome by providing government employees with suitable and appropriate housing in regional and remote areas to support the delivery of public services such as education and policing.



This indicator measures the cost efficiency of providing Government Regional Officers’ Housing. It is calculated by dividing the total costs by the total number of properties at the end of the year.

Nominal propertycost*

$24,651 $26,221 $25,140 $27,394

$29,398

$24,651 $26,899 $26,522 $29,520 $31,151

$28,286

2012-13 Target

Real property cost**

$ do

llars

15,000

20,000

25,000

30,000

35,000

2008-09 2009-10 2010-11 2011-12 2012-13

Comment on performance:The operating cost per property for 2012-13 ($31,151) was higher than the 2012-13 Target ($29,398) primarily due to the increasing number of leased properties, predominantly in the Kimberley and Pilbara regions, where rental costs are generally higher than the rest of the State. This is operated on a cost neutral basis being fully recouped from the Authority’s client agencies.

Total depreciation costs were also higher due to the increase in number of newer properties.



the cost per property has been adjusted to 2008-09 prices.


Ministerial directivesNo ministerial directives were received during 2012-13.

Other financial disclosuresAct of grace paymentsAs at 30 June 2013, there were no act of grace payments recorded.

Pricing policies – RentRent charged to tenants is determined by the Authority and approved by the Minister for Housing under section 30(1) of the Housing Act 1980.

Public housing rents are determined based on households’ capacity to pay. Tenants who remain eligible for public housing are required to pay either 25 per cent of assessable household income in rent or the notional market rent of the property, whichever is the lower amount. Market rents are set according to locality-based indices determined by the Valuer General’s Office.

Eligible tenants who were in occupation before 12 July 1997 paid 23 per cent of their assessable household income in rent in accordance with the policies in place at that time; those who took occupation after that date pay 25 per cent. Since 1 October 2010, the Authority has been incrementally moving towards harmonisation in the setting of rents, and by October 2013 all tenants will be paying the 25 per cent rate.

Some additional payments, such as Family Tax Benefit (above the basic amount) and child maintenance payments are assessed at lower rates and various payments for specific purposes are not assessed for rent.

Capital projectsThe value of the Authority’s 2012-13 capital works program was estimated at $971 million comprising mostly of the construction and purchase of new dwellings, land development and Royalties for Regions – Housing for Workers and SharedStart construction.

Details of these estimates (as published in the 2012-13 State Budget Papers) and actual expenditure across capital works programs are shown in Tables 12, 13 and 14.

Explanations have been provided for variations for actual expenditure that differ by more than $2 million and 10 per cent greater/less than the estimated cost.

Indigenous Visitors’ Hostel, Kalgoorlie


Table 12: Summary of capital works projects (2012-13 Budget versus Actual) for 2012-13

ProgramBudget ($’000)

Actual ($’000)

Variance ($’000) Explanation

Community Housing 2,580 1,396 (1,184)

Computer hardware and software 8,066 8,045 (21)

Construction and purchase of houses 110,578 80,398 (30,180) Mostly related to expenditure on the social housing boost being under budget. While the commencement targets associated with the boost were surpassed, construction on a number of dwellings will carry over to complete in 2013-14. The program will be acquitted against the allocation by June 2014.

A Place to Call Home – Commonwealth Election commitment

5,783 7,190 1,407 The actual 2012-13 expenditure was above budget due to the carryover of the 2011-12 expenditure into 2012-13.

Employment Related Accommodation – South Hedland

- 382 382 New three year ($22.5 million) program commencing in 2012-13.

Commonwealth Stimulus Package for Social Housing

6,150 8,472 2,322 Expenditure originally budgeted to be completed in the 2011-12 financial year carried over to be actually spent in 2012-13.

Crisis Accommodation 10,580 11,048 468

Disability Services (169 dwellings) 36,695 18,392 (18,303) 143 of the 169 (84 per cent) units have been commenced under the three year program. The remaining units are expected to be completed before June 2014. Program savings have resulted in an expected increase in unit numbers with the additional units being delivered in 2014-15.

Drug and Alcohol Office - 1,277 1,277 The budget was based on estimated funding allocation. Expenditure reflects a carryover from 2011-12. The program concluded in 2012-13.

Dwellings Mental Health 1,527 18,059 16,532 The 2012-13 Actual includes carryover expenditure for this program from 2011-12 financial year. The program is progressing well with four units left to complete from the 2011-12 to 2012-13 program.

East Kimberley Development Project - 3,231 3,231 The actual 2012-13 expenditure was above budget due to the unspent carryover from 2011-12. The final eight units have been completed.



Actual ($’000)


Mental Health Care Units 8,788 767 (8,021) The Joondalup 22 unit facility is complete. A development for Rockingham has been secured with fit-out to occur in early 2013-14.

Royalties for Regions – Indigenous Visitor Hostels

10,396 195 (10,201) Funding received in May 2013. The project has progressed to tender. It is expected that the facility will be constructed and expenditure realised in 2013-14.

Royalties for Regions – Housing For Workers initiative

99,370 121,572 22,202 The 2012-13 Actuals includes program expenditure carried over from 2011-12. Program is on target.

GROH Construction and Purchase (including Land Acquisition)

21,784 37,130 15,346 The 2012-13 Actual expenditure was above budget due to the unspent carryover from 2011-12. Completions are on target.

Royalties for Regions – Housing GROH Workers ($200 million) Program

- 11,648 11,648 Program completed in 2012-13.

GROH – Accommodation for Corrective Services – Derby Prison

- 3,261 3,261 Program completed in 2012-13.

Urban Renewal – New Living (Estate Improvement Land Redevelopment)

30,729 20,407 (10,322) New Living Development is $10.32 million under budget. Delayed commencement of Osprey and the Trumpet subdivisions in South Hedland have resulted in lower than anticipated expenditure to date. Osprey's subdivision has since gained clearance and Trumpet is expected to receive clearance by end of August 2013. Committed expenditure should be incurred by the second quarter of the 2013-14 financial year.

Acquisition 5,000 70,267 65,267 The 2012-13 Budget did not include the $40 million Land Borrowings for Strategic Land parcels. In June 2013 the Authority acquired the remaining landholdings in the Jindowie Estate in Yanchep for approximately $53 million utilising $40 million of loan funding to meet majority of the costs. The 2012-13 Actuals also included $7.8 million land acquisition for final payment of Yanchep strategic land purchase.

Development 120,499 83,724 (36,775) Development expenditure is under budget primarily at Brookdale, Dalyellup and Oyster Harbour Joint Ventures. More than $15 million unbudgeted distributions were received, resulting in reduced investment. Internal developments were delayed by environmental and planning issues. The funds are committed and should be incurred by the end of 2013-14 financial year.

Table 12: Summary of capital works projects (2012-13 Budget versus Actual) for 2012-13 (continued)


Table 12: Summary of capital works projects (2012-13 Budget versus Actual) for 2012-13 (continued)


Actual ($’000)


Holding costs 443 21 (422)

Build out building costs 10,400 1,921 (8,479) Project scheduling and reflowing into 2012-13.

Redevelopment 9,112 3,671 (5,441) The appointment of a demolition contractor, town planners and engineers for the Bentley Regeneration project in late 2012-13 has resulted in expenditure being reflowed in to the next financial year.

Shared Equity Program 19,000 17,185 (1,815)

Debentures - 19,350 19,350 The Debentures for 2012-13 were set up after the development of the budget.

Affordable housing including SharedStart Program

450,000 203,459 (246,541) The demand from builders and private buyers for smaller lower priced lots continues to be strong increasing the competition for suitably priced affordable titled lots. Where the Authority has managed to acquire these lots, settlement may occur some months into the future with reciprocal delays to property completion dates.

Minor works 1,000 215 (785)

Offices and shops 2,322 2,613 291

Other 316 179 (137)

TOTAL 971,118 755,476 (215,642)


In accordance with Treasurer’s Instruction 903(13)(ii), the Authority identifies the capital works projects that remain ongoing at the end of the financial year (Table 13) and the projects completed during the year (Table 14).

Table 13: Summary of capital works projects in progress in 2012-13

ProgramExpected year of completion

Estimated cost to complete

($’000)

Estimated total cost of project

($’000)

Variance from previous financial year

($’000)

A Place to Call Home – Commonwealth Election Commitment

2014 2,265 28,306 -

Acute Homeless Shelter 2014 1,353 4,000 -

Disability Services (169 Dwellings) 2014 34,961 95,651 -

Dwellings Mental Health 2015 9,279 55,195 -

Individualised Community Living 2014 971 2,790 -

Mental Health Care Units 2014 8,357 12,800 -

Royalties for Regions – Indigenous Visitor Hostels 2014 11,127 12,634 (366)

Royalties for Regions – Housing For Workers initiative

2017 245,463 369,380 17,613

Royalties for Regions – Employment Related Accommodation – South Hedland

2015 21,868 22,250 -

Social Housing Boost 2014 87,893 130,000 -

Notes:(1) The table includes all programs with defined funding sources. (2) Table 13 does not include ongoing programs that contain multiple projects without one specific completion date, which are internally funded based on Corporate Executive approved allocation of funding.


Table 14: Summary of capital works projects completed in 2012-13

Program

Total cost of project

($’000)

Variance from previous financial year

($’000)

Drug and Alcohol Office 8,500 -

Accommodation for the Department of Corrective Services (Derby) 33,200 -

Royalties for Regions – NGO Housing 35,000 -

Commonwealth Stimulus Package for Social Housing 549,727 -

Royalties for Regions – Housing for GROH Workers program 200,000 -

East Kimberley Development Program 46,000 -


Employment and industrial relationsIndustrial relations

The Authority has joint consultative and workload review committees in place with the Civil Service Association/Community and Public Sector Union which meet on a bi-monthly basis.

There were no matters involving the Industrial Magistrates Court in 2012-13. One application has been lodged with the Western Australian Industrial Relations Commission – Public Service Arbitrator under the provisions of the Industrial Relations Act 1979. This remains active but is pending notice of discontinuance by the claimant.

One matter was lodged with the Equal Opportunity Commission and that matter was subsequently withdrawn.

Recruitment

The Authority has continued to develop strategies around more flexible and efficient recruitment processes as provided for in the Public Sector Commissioner’s Instructions for filling a public sector vacancy.

The Authority has continued to recruit key staff to support the implementation of the State Government’s Affordable Housing Strategy and related projects. There has also been a focus on more flexible recruitment options in regional areas including the establishment of casual pools. The Authority is committed to Aboriginal recruitment to support the Authority’s employment strategy in this area.

Staffing levels

The Authority’s full time equivalent staffing levels are detailed in Table 15.

Table 15: Authority’s employment profile from 2010-11 to 2012-13

Program 2010-11 2011-12 2012-13

Permanent full time 861.00 954.27 1,067.11

Permanent part time 66.07 75.32 116.21

Contract full time and part time 278.90 259.53 317.25

Seconded in 0 5.00 8.80

Seconded out 8.00 7.80 2.00

Total Full Time Equivalents 1,213.97 1,301.92 1,511.37



Governance disclosures

Contracts with senior officersIn accordance with the Treasurer’s Instruction 903 (14(iii)), senior officers of the Authority are required to disclose particulars, other than normal contracts of employment of service, of any interest in any existing or proposed contract which a senior officer; or a firm of which a senior officer is a member; or an entity in which a senior officer has a substantial financial interest, has made with the agency or any subsidiary body, related body or affiliated body of the agency.

At the date of reporting, no senior officers had declared any interests in existing or proposed contracts with the Authority other than normal contracts of employment of service.

SubsidiariesKeystart Loans Limited (Keystart) is a special purpose, nominal company controlled by the Authority. Keystart acts as trustee for the Keystart Housing Scheme Trust. It also controls Keystart Bonds Limited, Keystart Scheme Management Pty Ltd, Keystart Support Pty Ltd, and Keystart Support (Subsidiary) Pty Ltd. Keystart is managed by a board of directors.

Litigation in progressThe Authority has been joined in legal actions involving asbestos-related illness. The estimated value of these claims against the Authority is $420,000. Liability is being denied and any legal claim will be defended.

Director’s indemnity insuranceFollowing the abolition of the State Housing Commission and the Government Employees’ Housing Authority Boards on 1 July 2006, an insurance policy remained in force until 31 October 2012 to protect past commissioners, board members and the two Authorities in accordance with the Statute of Limitations. The policy lapsed on 31 October 2013 following the expiration of the Statute of Limitations on 1 July 2012.

InsuranceIn accordance with Treasurer’s Instruction 812 the Authority maintains an appropriate level of insurance cover for insurable risks.

Effective 1 July 2004, the Authority has adopted a policy of not insuring its residential property assets as it is considered uneconomical. As part of the Authority’s ongoing risk management process a comprehensive analysis of the risk exposures to its residential property assets was undertaken during 2012. No changes have subsequently been made to the risk management arrangements for residential property assets. The Authority’s other insurance programs continue to be a combination of insurance policies provided by commercial insurance providers and the State Government’s RiskCover Fund.

As per Treasurer’s Instruction 825, insurance is complemented by a comprehensive approach to risk management and prudent management policies and practices.


Other legal requirements

AdvertisingIn accordance with section 175ZE of the Electoral Act 1907, the Authority incurred expenditure in advertising, direct mail and media advertising. Total expenditure for 2012-13 was $758,437.39. Expenditure incurred by, or on behalf of, the Authority is outlined in Table 16.

Table 16: Advertising expenditure for 2012-13

Program 2012-13

Advertising Agencies $94,979.42

Linc Integrated $1,646.70

Think Creative $1,059.00

Vinten Browning $92,273.72

Market Research Organisations $131,224.50

Hames Sharley $131,224.50

Polling Organisations $0

Direct Mail Organisations $69,726.14

Salmat Businessforce Pty Ltd $69,726.14

Media Advertising Agencies $462,507.33

Adcorp $275,670.21

OMD – Optimum Media Decisions $186,837.12

Disability access and inclusion plan outcomesThe Authority is committed to ensuring people with disability, their families and carers are able to fully access its services, information and facilities. The Disability Services Act 1993 requires that Public Authorities develop and implement a Disability Access and Inclusion Plan detailing the overarching strategies that will be undertaken by the Authority in support of the access and inclusion outcomes specified by the Disability Services Commission.

In 2012-13, the Authority undertook a review of its Disability Access and Inclusion Plan and drafted a new five year plan to further improve access and inclusion. The revised plan was advertised for public consultation and feedback as required by the Disability Services Act 1993 and was lodged with the Disability Services Commission in June 2013. The new Disability Access and Inclusion Plan 2013-2017 has been deemed compliant with legislative requirements.

A recent amendment to the Disability Services Act 1993 requires that a new outcome is incorporated into the Authority’s Disability Access and Inclusion Plan. The new outcome relates to the Authority’s commitment to people with disability having the same opportunities as other people to gain employment with the Authority. The Authority is currently preparing its consultation process as it works towards the incorporation of this outcome into its Disability Access and Inclusion Plan 2013-2017 and is enhancing its strategies to encourage people with disability to apply for employment.

http://www.housing.wa.gov.au/aboutus/aboutthedepartment/Pages/Our-Disability-Access-and-Inclusion-Plan.aspx


In 2012-13, the Authority undertook the following initiatives to deliver access and inclusion outcomes for its staff and customers:

Outcome 1: People with disability receive the same opportunities as other people to access any of the Authority’s services and events.

> Made available to all staff an events checklist to ensure that the requirements of people with disability are considered when planning events; and

> Reviewed the staff online education module prior to its implementation to align it with the strategies contained in the Authority’s Disability Access and Inclusion Plan 2013- 2017.

Outcome 2: People with disability have the same opportunities as other people to access the buildings and other facilities of the Authority.

> Continued to respond to the findings of the 2010 review of office accommodation which identified disability access issues and replacement priorities with current accommodation. The next review is scheduled for October 2013.

Outcome 3: People with disability receive information from the Authority in a format that will enable them to access the information as readily as other people are able to access it.

> Continued to include details on how to request information in alternate formats in publications and on its website; and

> Maintained website accessibility compliance with Priority 1 guidelines based on World Wide Web Consortium Web Accessibility Standards.

Outcome 4: People with disability receive the same level and quality of service from Authority staff.

> Raised awareness amongst staff of the Disability Access and Inclusion Plan through its inclusion in the Authority’s Corporate Induction Program;

> Developed and advertised the Disability Access and Inclusion Plan 2013-2017 to staff; and

> Continued to improve the quality of information available to customers and staff through embracing new communication technologies.

Outcome 5: People with disability have the same opportunities as other people to make complaints to the Authority.

> Maintained a customer feedback page on its website; and

> Accepted complaints in a range of formats including via written correspondence, telephone, in person or by an alternate medium.

Outcome 6: People with disability have the same opportunities as other people to participate in any public consultation by the Authority.

> Ensured that feedback from people with disability is sought as appropriate; and

> Continued to work with relevant stakeholders, including the Disability Services Commission, the Mental Health Commission and the Drug and Alcohol Office in the development of the Community Disability Housing Program Policy.


Recordkeeping Plan

In accordance with section 61 of the State Records Act 2000 and the State Records Commission’s Standard 2 Principle 6 the following reports on the activities in 2012-13 in relation to the management of corporate documents and information. The Authority complies with the State Records Act 2000 and is committed to the principles and standards provided by the State Records Commission.

The Authority’s Recordkeeping Plan was reviewed in early 2009 and approved by the State Records Commission on 22 June 2009. The next review of the plan is due in 2014.

Recordkeeping training program

The recordkeeping program comprises training products for staff. All new staff members are enrolled for the training within a month of commencing as part of their induction program. Existing staff are enrolled in all new modules as they are implemented.

The outcomes of the Authority’s Recordkeeping and information management training suite for this period are detailed in Table 17.

Business practice guides have been developed for record tracking and the identification and management of vital records.

Table 17: Outcomes for Recordkeeping course completions

Course Completions In progress Total

Recordkeeping awareness training 71% 5% 76%

Recordkeeping awareness refresher training

38% 9% 47%

TRIM Essentials 63% 4% 67%

Business classification 64% 5% 69%

House keeping (Record keeping in the Housing Authority)

23% 3% 26%

Housing Authority’s Aboriginal trainees


Compliance with public sector standards and ethical codes

In accordance with section 31 (1) of the Public Sector Management Act 1994, the Authority complied with the Public Sector Standards, the Western Australian Public Sector Code of Ethics and the Housing Authority’s Code of Conduct. Policies and procedures designed to ensure such compliance were in place and appropriate internal assessments were conducted.

Activities undertaken by the Authority relating to ensuring compliance with Public Sector Standards, the Western Australian Public Sector Code of Ethics and the Housing Authority’s Code of Conduct in 2012-13 included:

> Providing information to new staff as part of the induction program;

> Providing information and training on the Housing Authority’s Code of Conduct and the Western Australian Public Sector Code of Ethics;

> Assessing compliance with Standards through internal audits and reviews of breach claims. The Authority has clearly documented processes for resolving grievances and investigating alleged breaches of the Code of Conduct; and

> Reinforcing employees’ understanding of the Code of Conduct and related policies through participation in the online Accountable and Ethical Decision Making training, achieving a 93 per cent completion rate.

The Authority continues to make policies and ethical codes in relation to these standards and codes available to staff through the Authority’s intranet site.

Details of breaches lodged during 2012-13 are as follows:

> six breach claims related to the employment standard. Four matters were resolved internally and two matters were progressed to the Public Sector Commission for review with no breach claims upheld;

> one breach claim against the Grievance Standard that was resolved internally; and

> one breach claim against the Termination Standard that was progressed to the Public Sector Commission for review and was successfully resolved via conciliation.



Government policy requirements

Occupational safety, health and injury management The Authority recognises that the health and safety of its employees is of prime importance in all aspects of its planning and operations. Additionally management recognises the Authority’s duty to provide adequate information, training and supervision to assist in the provision of a safe working environment.

In the event of a workplace injury the Authority ensures that injury management is implemented in accordance with the requirements of the Workers’ Compensation and Injury Management Act 1981 and the Code of Practice (Injury Management) 2005. The Authority has an Injury Management System which is compliant with the requirements of the Act and the Code of Practice.

The Authority’s Health and Safety Policies and Procedures are available to staff on the Health and Safety page of the Authority’s intranet site. This function continues to be a priority within the Authority.

An independent audit of the Authority’s Occupational Health and Safety systems was completed in 2011 and recommendations contained in that report continue to be progressed. A frontline safety project team has been established to review and develop risk management strategies to improve staff safety.

An increase in staffing numbers has resulted in a reduction in the percentage of managers who have undergone Occupational Health and Safety training for managers. Additional training will commence in September 2013 and be available to all supervisory staff.

The Agency’s Health and Wellness Program continues to deliver positive outcomes for staff and all officers continue to have access to the Employee Assistance Program at no cost.

Consultation mechanisms

Management and employees are committed to effective workplace consultation, with the opportunity for staff to fully participate in any decisions which impact on their working life and environment. The Authority’s well established Occupational Safety and Health Policy Committee consists of a senior management representative, management representatives and health and safety representatives. The committee meets on a three monthly basis and provides an appropriate forum for the discussion and resolution of high level policy issues.

The committee is underpinned by an extensive network of local Occupational Safety and Health Committees, which represent each regional office location across the State. The Authority’s Corporate Executive, managers and employees are committed to an objective of continuous improvement in the quality of workplace occupational health and safety.


Workers’ compensation and injury management

The Authority received 23 claims in 2012-13 of which 14 involved lost time from work with only one claim exceeding 60 days. Injured employees in this category were provided access to the Authority’s injury management and employee assistance programs. The Authority’s performance is detailed in Table 18.

There were four injury management cases carried across from the previous financial year and four new cases established in 2012-13.

Table 18: Occupational safety, health and injury management performance

Measure Actual results Results against target

2010-11 2011-12 2012-13 Target Comment on result

Number of fatalities 0 0 0 0 Target met

Lost time injury and/or disease incidence rate

0.49 0.48 0.92 0 Target not met. Increase in the lost time injury incidence rate is due to an increase in the number of client related incidents. This is being addressed through the Service Delivery Division’s Frontline Safety Project.

Lost time injury and/or disease severity rate

0.33 0.16 0.07 Zero or 10% improvement on previous 3 years

Target met

Percentage of injured workers return to work within

13 weeks N/A 100% 50% Greater than 80% return to work within 26 weeks26 weeks 66% 100% 78% Target not met due to the complexities of some injury

management cases.

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

59% 78% 71% Greater than or equal to 80%

Target not met. An increase in staffing numbers has resulted in a reduction in the percentage of managers who have undergone Occupational Health and Safety training for managers. Additional training will commence in September 2013 and be available to all supervisory staff.


Substantive equalityThe Authority is committed to ensuring that substantive equality principles are reflected in its policies, procedures and practices through the implementation of the State Government’s Policy Framework for Substantive Equality. The Policy Framework aims to achieve substantive equality in the Western Australian public sector by eliminating systemic racial discrimination in the provision of public sector services and promoting sensitivity to the different needs of client groups.

This commitment is demonstrated through the continuing work of the Authority to support the integration of substantive equality principles into all business practices.

During 2012-13, a needs and impact assessment was completed on an identified area of current business practice with the recommendations and report provided to the Equal Opportunity Commission in May 2013.

The Authority has made significant progress in implementing the recommendations contained within the final report of the Implementation and Monitoring Committee for the Equal Opportunity Commission Inquiry in the Existence of Discriminatory Practices in Relation to the Provision of Public Housing and Related Services to Aboriginal People in Western Australia (Finding a Place Report) published in March 2011. This work closely correlates with the work being undertaken to implement the Policy Framework for Substantive Equality which results in the review of policies and procedures to determine any adverse impacts on different client groups.

Through the implementation of these recommendations and continued engagement with the Equal Opportunity Commission the Authority aims to ensure better outcomes for our clients.

AuditAudit Committee

The Audit Committee is a five member advisory committee comprised of members of the Corporate Executive. The committee was established to assist the Accountable Authority (the Chief Executive Officer) to discharge his responsibilities under section 53 of the Financial Management Act 2006.

The committee met twice during 2012-13.

Internal audit function

In accordance with the requirements of the Financial Management Act 2006, the Management Review and Audit Branch operates as an independent appraisal unit within the Authority.

In addition to the internal audit services, there is also scope for the branch to undertake management reviews as permitted under this Act. This has broadened the focus of internal audit to include strategic and operational risks as well as business improvement.


Comprehensive audit plans that address core business activities and key strategic business risks are developed annually and contribute to the Authority’s control framework. The audit function helps the Authority promote mechanisms that encourage a culture that is conscious of risk, control and process; assists the Authority in its drive for business improvement and the achievement of its objectives; and assesses enabling systems and technology.

The approved audit plan for the 2012-13 financial year encompassed 14 reviews addressing corporate governance, operational, compliance, financial, information systems, probity and risk assessments.

Delegation of Authority

Authority to undertake transactions under the Housing Act 1980, is conferred on the Accountable Authority (the Chief Executive Officer) or the Minister for Housing in most circumstances.

Section 13 of the Act, however, allows the Accountable Authority to delegate any of its powers or functions under the Act. Through delegation, the Chief Executive Officer does not need to be approached for approval of many essentially administrative matters associated with day-to-day operations and activities.

A delegation framework and a comprehensive register exist to record formal delegations that empower officers to approve and negotiate matters on behalf of the Authority.

Risk managementThe Chief Executive Officer is accountable in accordance with Treasurer’s Instruction 825 for ensuring that the Authority appropriately identifies and manages its risk and is supported in this by the Corporate Executive.

The Authority has a risk management framework in place consisting of a Risk Management Policy, the risk management committee, the risk appetite in the form of risk reference tables, a risk management implementation plan and the corporate risk register.

The Risk Management Committee, consisting of senior management, provides oversight of the risk management process and works to ensure that appropriate risk identification and risk mitigation processes are in place across all divisions.

The committee is also responsible for regularly reviewing, monitoring and where appropriate, providing advice to the Corporate Executive regarding significant risks to the Authority.

This year the Corporate Executive reviewed its strategic risks and controls. At the operational level, business unit risk reviews identified areas where controls have been strengthened. Project risk assessments continue to be undertaken on a range of corporate and business unit projects to identify and strengthen controls.


Business continuity planningIn 2012-13 the Authority’s business continuity policy was updated by the Corporate Executive along with the business continuity plans for critical functions. The update of continuity plans for regional offices has also commenced. The regular maintenance of continuity plans is in accordance with Public Sector Commissioner’s Circular 2009-19.

The Authority’s crisis management unit conducted an exercise to confirm that crisis management resources remain in place for use when required at both the Authority’s Head Office and alternate metropolitan venue.

The Authority’s inclusion in the Western Australian State Government WESTPLAN – Heatwave led to its response to heatwaves in December 2012 and February 2013 in accordance with its responsibilities under the plan.

The Authority also participated in the State Emergency Coordinating Group formed in response to the predicted outcomes on Port Hedland of Tropical Cyclone Rusty in February 2013.

Housing Authority’s Housing Direct staff members participating as a critical part in the Authority’s heatwave response in February 2013


This section contains housing statistics, our customer service charter and regional office contact details.

Community housing apartments, Mandurah

Appendices


Appendix 1: Housing statistics

2008-09 2009-10 2010-11 2011-12 2012-13Rental waiting list by customer typeFamily 11,437 12,176 11,710 11,359 10,198

Senior single 2,887 3,277 3,006 2,841 2,757

Senior couple 878 828 642 508 429

Singles 6,526 7,855 8,053 8,163 7,737

TOTAL 21,728 24,136 23,411 22,871 21,121

Rental waiting list by bedroom entitlement2 Bedroom family 5,577 6,125 5,886 5,825 5,170

3 Bedroom family 4,201 4,270 4,048 3,821 3,405

4 Bedroom family 1,283 1,386 1,384 1,359 1,294

5+ Bedroom family 376 395 392 354 329

Senior single 2,887 3,277 3,006 2,841 2,757

Senior couple 878 828 642 508 429

Singles 6,526 7,855 8,053 8,163 7,737

TOTAL 21,728 24,136 23,411 22,871 21,121

New tenancies by customer typeFamily 1,743 1,861 1,960 1,748 1,518

Senior single 572 512 521 567 543

Senior couple 231 345 329 169 174

Single 660 407 507 675 633

TOTAL 3,206 3,125 3,317 3,159 2,868

Tenant income sources(1)

Age Pension 24.2% 24.0% 23.9% 25.2% 25.2%

Disability Support Pension 22.0% 22.6% 23.2% 24.9% 24.8%

Parenting Payment Single 11.8% 11.4% 9.2% 11.8% 9.9%

Newstart Allowance 7.4% 7.9% 7.1% 8.6% 10.6%

Veteran Services 1.4% 1.3% 1.2% 1.2% 1.0%

Low Wage Income 6.8% 5.7% 6.4% 6.5% 6.1%

Other 6.6% 6.1% 9.8% 6.6% 6.3%

Full Rent and Concessions 19.7% 21.0% 19.2% 15.2% 16.1%

Table 19: Public housing rental statistics 2008-09 to 2012-13


2008-09 2009-10 2010-11 2011-12 2012-13Rental arrearsAverage arrears per account $35.15 $35.73 $49.12 $50.15 $42.98

Percentage of accounts in arrears 9.8% 9.8% 9.8% 8.6% 8.08%

Rental stock by bedroom number(2)

Bedsitter 176 175 130 119 82

1 Bedroom 8,331 8,342 8,518 8,654 8,771

2 Bedroom 10,729 10,823 11,198 11,304 11,332

3 Bedroom 13,140 13,074 13,077 13,023 12,875

4 Bedroom 2,863 2,927 2,966 2,979 2,975

5+ Bedroom 561 609 650 670 679

TOTAL 35,800 35,950 36,539 36,749 36,714

Rental stock by dwelling type(3)

House 12,348 12,281 12,314 12,193 13,827

Duplex 4,578 4,562 4,629 4,639 4,592

Medium-High Density(3) 18,874 19,107 19,596 19,917 18,295

TOTAL 35,800 35,950 36,539 36,749 36,714

Land productionLots Produced(4) 1,332 1,953 2,228 1,789 1,777

Notes: (1) This excludes Externally Leased properties.(2) All stock numbers relate to Public Housing and Aboriginal Rental Housing Program dwellings only.(3) Medium-High Density: Townhouses, Flats and Apartments.(4) Lots produced include land development and redevelopment, estates improvement and joint ventures.

Table 19: Public housing rental statistics 2008-09 to 2012-13 (continued)


Table 20 provides information on construction, spot purchases and refurbishments undertaken under the Authority’s various capital works programs. The table includes details of the number of units commenced and completed as well as expenditure during 2012-13.

Table 20: Construction, spot purchase and refurbishment in 2012-13

Commenced CompletedExpenditure

($’000)

Construction and Spot PurchasePublic rental housing

General rental 377 145

Community Housing General 10 54

Community Disability Housing Program 92 123

Joint venture 10 15

House and land for sale 48 17

TOTAL 537 354 109,280

Aboriginal housingAboriginal housing – communities 91 160 89,941

TOTAL 91 160 89,941

Community housingCommunity Housing Program 8 3 1,280

Crisis Accommodation Program 19 20 8,080

State Community Housing Investment Program 0 148 1,895

TOTAL 27 171 11,254

Affordable housingAffordable housing 444 495 73,003

TOTAL 444 495 73,003


Commenced CompletedExpenditure

($’000)

Workers housingGovernment Regional Officers’ Housing 132 105 46,204

Key Worker housing 584 122 110,667

TOTAL 716 227 156,871

RefurbishmentNew Living (retained properties)

Refurbishments 163 163 20,549

TOTAL 163 163 20,549

Aboriginal housingAboriginal housing – communities Refurbishments 282 290 39,376

Indigenous CHOs refurbishments 43 73 7,744

TOTAL 325 363 47,120

Community housingCommunity Housing Program 1 1 116

Crisis Accommodation Program 2 0 112

State Community Housing Investment Program 0 0 2,323

TOTAL 3 1 2,552

Notes: > Construction and Spot Purchase Expenditure includes capitalised administration costs for applicable programs.

> Community Housing General includes units transferred or earmarked for transfer to CHOs. Some units originally designated as General Rental in previous years’ Annual reports, can change to Community Housing General, as the specific use is finalised. The distribution between General Rental and Community Housing General is subject to possible further changes.

> Aboriginal housing communities construction includes units in Aboriginal communities as well as units for Employment Related Accommodation and Visitors Centres (ie: 0 units commenced and 10 units completed).

> Aboriginal housing communities refurbishments includes units in Aboriginal communities as well as units for Visitors Centres (ie: 0 units commenced and 3 units completed).

> Expenditure on Aboriginal communities refurbishments includes other works.

> Expenditure on Indigenous CHOs refurbishments includes other upgrade works.

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

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

> Construction and Spot Purchase Commencement and Completion figures include units that have been transferred between programs.

Table 20: Construction, spot purchase and refurbishment in 2012-13 (continued)


Appendix 2: Customer service

The Authority strives to deliver a standard of service that our customers are proud to receive and we are proud to provide. Our service standards are available in the Authority’s Customer Service Charter.

When you visit our office we will:

> Greet you and let you know if there may be service delays

> Keep waiting time to a minimum

> Treat you with respect, courtesy and dignity

> Listen to you carefully and fully consider your issues

> Help you with accurate information on our products and services

> Ensure you understand documents and forms

> Assist you to contact other officers or agencies if required

When you write to us we will:

> Reply to you promptly by phone or letter, depending on your request

> Invite you to contact us again if we can’t solve your problem completely

When you phone us we will:

> Answer the phone promptly

> Try to solve your problem ourselves or refer you quickly to someone who can

> Call you back if we cannot resolve your query promptly

How you can help us:

> Treat us with respect and courtesy; we will do our best for you

> Tell us if your contact details change

> Let us know if there’s anything you don’t understand

> Give us feedback on our service

If you don’t agree with an officer’s decision

> We will help you access the review process


Appendix 3: Our offices

Office

99 Plain Street East Perth 6004 Tel: (08) 9222 4666 Toll free: 1800 093 325 Website: www.housing.wa.gov.au

Metropolitan Offices

North Metropolitan

Mirrabooka 8 Sudbury Road Mirrabooka 6061 Tel: (08) 9345 9655

City Office 605 Wellington Street Perth 6000 Tel: (08) 9476 2444

Joondalup Unit 4/7 Wise Street (Corner of Collier Pass and Wise Street) Joondalup 6027 Tel: (08) 9404 3300

Midland 21 Old Great Northern Highway Midland 6056 Tel: (08) 9250 9191

South Metropolitan

Fremantle 42 Queen Street Fremantle 6160 Tel: (08) 9432 5300

Kwinana Unit 1/2 Stidworthy Way Kwinana 6167 Tel: (08) 9411 9500

Mandurah 11 Pinjarra Road Mandurah 6210 Tel: (08) 9583 6100

South East Metropolitan

Cannington 17 Manning Road Cannington 6107 Tel: (08) 9350 3244

Armadale Shop 2a, Armadale Shopping Centre Corner Commerce Ave and Third Road Armadale 6112 Tel: (08) 9391 1600

Victoria Park 269 Albany Highway Victoria Park 6100 Tel: (08) 9350 3700

Great Southern

Albany 131 Aberdeen Street Albany 6330 Tel: (08) 9845 7144

Katanning 6 Daping Street Katanning 6317 Tel: (08) 9891 1800


South West

Bunbury 22 Forrest Avenue Bunbury 6230 Tel: (08) 9792 2111

Busselton Suite 1A, 9 Harris Road Busselton 6280 Tel: (08) 9781 1300

Manjimup Unit 10, 30-32 Rose Street Manjimup 6258 Tel: (08) 9771 7800

Goldfields

Kalgoorlie Unit 1-2, 84-96 Brookman Street Kalgoorlie 6430 Tel: (08) 9093 5200

Esperance Balmoral Square The Esplanade Esperance 6450 Tel: (08) 9072 3000

Mid West

Geraldton Union Bank Building 201 Marine Terrace Geraldton 6530 Tel: (08) 9923 4444

Carnarvon 30 Robinson Street Carnarvon 6701 Tel: (08) 9941 6500

Meekatharra Main Street Meekatharra 6642 Tel: (08) 9956 5000

Pilbara South Hedland Cnr Brand and Tonkin Streets South Hedland 6722 Tel: (08) 9160 2800

Karratha 3-5 Welcome Road Karratha 6714 Tel: (08) 9159 1700

East Kimberley

Kununurra Cnr Messmate Way and Konkerberry Drive Kununurra 6743 Tel: (08) 9166 5100

Halls Creek Lot 72 and 73 Great Northern Highway Halls Creek 6770 Tel: (08) 9168 9300

West Kimberley

Broome Frederick Street Broome 6725 Tel: (08) 9158 3600

Derby Lot 265 Loch Street Derby 6728 Tel: (08) 9158 4000


Wheatbelt

Northam McIver House 297 Fitzgerald Street Northam 6401 Tel: (08) 9690 1900

Merredin 27 Mitchell Street Merredin 6415 Tel: (08) 9081 3800

Narrogin Government Building 11 Park Street Narrogin 6312 Tel: (08) 9881 9400

Government Regional Officers’ Housing (GROH)

Central Office 203 Nicholson Road Shenton Park 6008 Tel: (08) 9286 6000 Toll Free: 1800 644 708

Kalgoorlie Units 1 & 2 Brookman Mews 80-94 Brookman Street Kalgoorlie 6430 Tel: (08) 9093 5200

Karratha 3-5 Welcome Road Karratha 6714 Tel: (08) 9144 4213

South Hedland Cnr Brand and Tonkin Streets South Hedland 6722 Tel: (08) 9160 2800

Keystart/Country Housing Authority

2 Brook Street East Perth 6892

Toll Free (metro): 1300 578 278 Toll Free (country): 1800 158 200

Website: www.keystart.com.au Email: [email protected]

Housing Authority 2012-13 Annual Report Copies of this document are available in alternative formats upon request.

99 Plain Street, East Perth WA 6004

Tel: (08) 9222 4666 TTY: (08) 9476 2446

Email: [email protected]

www.housing.wa.gov.au

Government of Western AustraliaHousing Authority

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