AH-Annual-Report-2016

ANNUALANNUAL
REPORTREPORTREPORTREPORTREPORTREPORTREPORT
2016

CONTENTS
HIGHLIGHTS 1
ABOUT ACCESS HOUSING AUSTRALIA LTD 2
OUR VISION, VALUES AND STRATEGIC PILLARS 4
CHAIRMAN’S REPORT 5
BOARD PRIORITIES 7
PATRON AND BOARD DIRECTORS 7
COMMITTEES AND SUBSIDIARY BOARDS 9
CHIEF EXECUTIVE OFFICER’S REPORT 10
TENANT SATISFACTION 15
LEADERSHIP TEAM 21
ACCESS HOUSING REALTY PTY LTD 22
COMMUNITY 23
AWARDS 24
VALUED PARTNERS 25
FINANCIAL REPORT 26

167PROPERTIES UNDER
MANAGEMENT
ACCESS HOUSING
REALTY - AWARDED
MANAGEMENT OF
ROTTNEST ISLAND
AUTHORITY STAFF
HOUSING ON THE
ISLAND
$154MBALANCE SHEET EQUITY
$47.36M
TOTAL INCOME
ACCESS HOME CHOICE
DEVELOPMENT OF A SHARED
EQUITY HOME OWNERSHIP
SCHEME IN CONJUNCTION
WITH KEYSTART
WINNER
2016 BUSINESS NEWS RISING
STARS AWARD (NOT FOR
PROFIT CATEGORY)
FINALIST
2016 WACOSS COMMUNITY
SERVICES EXCELLENCE AWARDS
(LARGE ORGANISATION
CATEGORY)
163UNITS CONSTRUCTED OR
ACQUIRED SINCE 2013
173ACCESS HOUSING AUSTRALIA
NRAS INCENTIVES ACTIVATED
AS AT 30 JUNE 2016
PROJECTS
(180 DWELLINGS)
BEING PROGRESSED
IN 2015/16
REFURBISHMENTS AND
IMPROVEMENTS TO
130 PROPERTIES
COMMENCED
AN IN-HOUSE
GARDEN
MAINTENANCE
TEAM, WITH
OUTSTANDING
RESULTS
Ŏ 87%TENANT SATISFACTION
1,766PROPERTIES MANAGED
$14MSOCIAL VALUE INDICATOR
REDUCTION OF LIVING COSTS
DELIVERED TO TENANTS
THROUGH AN AVERAGE 56%
RENTAL SUBSIDY
28%SUPPORTED TENANCIES
COMMENCED PARTNERSHIP
WITH ST JOHN OF GOD HEALTH
CARE, PROVIDING HOMES
FOR THEIR HORIZON HOUSE
PROGRAM (SEE PAGE 10)
STRATEGY
DEVELOPMENT OF A
TENANT SUSTAINABILTY
AND CHOICES STRATEGY
11
2016
ACCESS HOUSING ANNUAL REPORT
1

ABOUT
ACCESS HOUSING
AUSTRALIA LTD
Access Housing is one of Western Australia’s leading providers of community
housing, specialising in tenancy and property management and property
development for low to moderate income earners including seniors, people
living with a disability or mental health illness, families and singles.
Established in 2007 under the Corporations Act as a
not-for-proﬁt (NFP) company limited by guarantee,
Access Housing is a public benevolent institution, an
income tax exempt charity and deductible gift recipient.
Access Housing is a registered Growth Provider with
the WA Housing Authority. Growth Providers are
NFP housing companies with a proven track record
in property and tenancy management that have the
ﬁnancial capacity and capability to undertake property
developments to increase the supply of affordable
housing in WA.
Access Housing’s property
development activities are
driven by local demand and
deliver homes the company
retains for affordable and
social rental purposes. It
also develops properties
that are sold to National
Rental Affordability Scheme
(NRAS) investors to increase
the provision of affordable
housing, as well as to owner-
occupiers.
2016
2

3
2016
3

OUR VISION
Access Housing Australia is a leading affordable housing
provider delivering strong growth in housing options which
make a difference to people’s lives.
4
OUR PURPOSE
To enhance opportunities for
people in need through the
provision of affordable housing
solutions and quality services.
OUR VALUES
Fairness
Respect
Integrity
Sustainability
Cooperation
PRINCIPLES AND
BUSINESS PHILOSOPHY
Making a Difference
Opportunity and Choice
Quality Services
Customer Focus
Independence and Sustainability
No Free Kicks
Commercial Viability
Liveable Communities
Strategic Alliances and Partnerships
STRATEGIC PILLARS
Access Housing has developed a new Strategic Business Plan
for 2015-2020 that will build on its achievements.
Making a Difference (Creating Choices)
Sustainable Growth and Capacity (Creating Homes)
Strategic Leadership (Creating Awareness)
Sector Development and Innovation
(Creating New Markets)
2016
444

CHAIRMAN’S REPORT
The challenging property
market environment that
was noted in last year’s
Annual Report worsened
during FY2015/16.
Whilst construction
activity has remained
relatively buoyant since
the downturn in the
resources sector, margins
have reduced and lower
construction activity
is likely over the next
couple of years.
Access Housing is not immune from these economic
fundamentals, given the importance of property sales
in reducing debt and enabling us to gear up for future
development projects. In response to the prevailing
market, the Board and Executive agreed to a prudent
approach to new development proposals so, whilst
we had 11 projects underway during the year, we put
a hold on further development approvals prior to
Christmas until such time as we see a positive shift in
demand. The Executive initiated a review of the types
of projects that can be pursued in a soft market, and
that report will be considered by the Board early in
FY2016/17.
At the political level it was a mixed and changing
environment. In 2014 we noted the retreat of the
Commonwealth Government from the affordable
housing space.
However, towards the end
of 2015, there were some
encouraging signs with
the establishment of the
Affordable Housing Working
Group (AHWG) by the
Council on Federal Financial
Relations, chaired by Social
Services Minister Hon Christian
Porter MP. We are particularly
pleased that there is
bi-partisan support for
the work of the AHWG.
At the State level, the lack of progress by the
WA Housing Authority (WAHA) in developing a
Community Housing Growth Plan under the Opening
Doors Strategy has been disappointing. Whilst other
states, including Tasmania, New South Wales and
South Australia, have driven progressive strategies
to grow their social and affordable housing systems
in partnership with not-for-proﬁt (NFP) and private
sector consortiums, WA has lagged behind with little
encouragement for the community housing sector.
That said, Access Housing has maintained a positive
relationship with the WAHA and, in particular, I wish
to note the patience and continued support from
both the Minister for Housing Hon Colin Holt MLC and
acting Director General Paul Whyte for our proposed
Access CCIN project, which has faced particular
hurdles in attracting private capital in the subdued
Perth property market.
2016
5

Against this backdrop, the Board’s priorities and key
activities for the year included:
Approval in August 2015 of the 2015-2020 Business
Plan, reflecting the company’s revised strategic
objectives, with an emphasis on tenancy choice
and outcomes; financial innovation to drive scalable
increases in housing supply; strategic leadership on
social and affordable housing issues and support for
community housing sector growth and capacity.
Continued oversight and support for the Access
CCIN project to attract sophisticated private equity
investment capital. I’d like to acknowledge my
fellow Access CCIN Ltd Board members for their
governance oversight, specifically Hon Jim McGinty
(Chair), Malcolm O’Dell, Debra Bakker and Mark
Roberts, as well as Private Invest and the Access
Housing Executive for their ongoing endeavours.
A more active political engagement role. The Board
approved key advocacy priorities during the year.
As Chair, I have attended a range of meetings with
our Chief Executive Officer Garry Ellender and
fellow Board Directors (in particular I thank the Hon
Jim McGinty) with State and Federal Government
Members of Parliament and senior executives from
key government agencies. We have put forward
alternative policy options, which are broadly aligned
with the considerations of the AHWG. In the lead
up to the State election on 11 March 2017 the Access
Housing Board and Executive will continue to try to
influence a progressive policy agenda to revitalise
and drive more competitive and innovative housing
solutions.
Oversight of our property development program,
with an active Development sub-committee
comprising Board Directors Matt Raison (Chair)
and myself, WAHA representative Ivor Byrde
and independent consultant Louise Ainsworth. I
thank committee members and Access Housing’s
General Manager Property Assets Su Groome and
Development Manager Duane Moroney for their
insights and contributions in enabling continued
delivery of growth targets within a constrained
market environment.
Approval of a Shared Equity Home Sales scheme,
in conjunction with Keystart, to be trialled in
FY2016/17. I’d like to acknowledge our CEO and
Executive for their work and negotiations with
Keystart on this project, and also Keystart CEO
John Coles for his support and encouragement.
The Board looks forward to the scheme launch
towards the end of 2016.
Strategic and operational financial oversight via our
Finance and Audit Committee, comprising Board
Directors Geoff Lotter (Chair), Chris Parkinson and
Debra Bakker and independent risk consultant
Tracy Destree. The Finance and Audit committee
has overseen a comprehensive review of financial
reporting requirements, elevating reporting to a
strategic level. The committee also has oversight
of the company’s IT, risk management and internal
audit plans. It has done an outstanding job and
provides a high level of comfort to the Board. A
special thank you to our Chief Financial Officer
Ian Aiyathurai and his team for continuing to
challenge our business models to ensure that we
are extracting full value from our balance sheet. The
annual financial statements show that the financial
performance of the company remained solid.
Governance oversight. The Board ensured the
company’s legislative, contractual and regulatory
compliance and reporting obligations were met
during the year. Our Governance Committee,
comprising Board Directors Malcom O’Dell (Chair)
and Rebecca Strom and company patron Hon
Antoinette Kennedy has continued to implement
the key recommendations from the independent
evaluation of the Board undertaken in 2015. The
committee has provided clear advice to the
Board on specific governance matters that have
emerged during the year. Thank you to our Manager
Corporate Strategy and Systems Lyn Brun for
providing research and secretariat support to the
Governance Committee.
Board governance of our real estate company,
Access Housing Realty Pty Ltd (AHR). My thanks to
Board Chair Garry Ellender and fellow AHR Director
Allan Wilkerson who acted quickly from December
2015 in response to significant cost pressures
within the company as a result of the deteriorating
property market. Their actions stemmed losses for
the year and have repositioned AHR for a return to
profitability in FY2016/17.
I wish to express my thanks to all Directors and
committee members for their voluntary time
commitment, their expertise and, at times, their
candour. I also acknowledge Michael Mitchell, who
stepped down as a Director during the year due
to pressing work commitments, and thank him for
his support and contributions over a number of
years. Finally, my thanks to our tireless CEO Garry
Ellender for continuing to push the boundaries, to
his hardworking Executive leadership team and the
amazing Access Housing staff who are truly making
a difference to people’s lives.
David Lantzke
Chairman
Access Housing Australia Ltd
2016
6

BOARD
PRIORITIES
During 2015/16 the Board was
primarily focussed on:
Development and approval of a new
Business Plan, 2015-2020 based on the
company’s revised strategic objectives
adopted in early 2015;
Oversight of key activities and priorities
identified in the Business Plan, including
approval to develop an Access Housing
Shared Equity Home Ownership program,
in partnership with Keystart;
Strategic oversight of the development of a
private equity investment structure (Access
CCIN);
Governance oversight, including continued
implementation of independent Board
evaluation finalised in January 2015;
Strategic financial management; and
Oversight of Access Housing’s property
development and sales programs, including
progress against contractual growth
targets with the WA Housing Authority.
THE HONOURABLE
ANTOINETTE KENNEDY AO
PATRON
PATRON
AND BOARD
DIRECTORS
DAVID LANTZKE
CHAIRMAN
2016
7

MICHAEL
MITCHELL
DIRECTOR
CHRIS
PARKINSON
DIRECTOR
MATT
RAISON
DIRECTOR
REBECCA
STROM
DIRECTOR
MALCOLM
O’DELL
DEPUTY
CHAIRMAN
DEBRA
BAKKER
DIRECTOR
GEOFF
LOTTER
DIRECTOR
THE
HONOURABLE
JAMES (JIM)
MCGINTY AM
DIRECTOR
2016
8

COMMITTEES
PROPERTY DEVELOPMENT
COMMITTEE
Matt Raison (Chair)
David Lantzke
Ivor Byrde
Louise Ainsworth
Duane Moroney
Garry Ellender*
Su Groome*
Ian Aiyathurai*
FINANCE & AUDIT COMMITTEE
Geoff Lotter (Chair)
Chris Parkinson
Debra Bakker
Tracy Destree
Garry Ellender*
Ian Aiyathurai*
GOVERNANCE COMMITTEE
Malcolm O’Dell (Chair)
Antoinette Kennedy
Michael Mitchell (resigned 08/06/16)
Rebecca Strom
Garry Ellender*
Lyn Brun*
* Executive
ACCESS HOUSING REALTY PTY
LTD BOARD
Garry Ellender (Chair)
Allan Wilkerson
Terry Foster (resigned 11/01/16)
Liz Waterhouse (Company Secretary)
ACCESS CCIN LTD BOARD
Jim McGinty (Chair)
Malcolm O’Dell
David Lantzke
Debra Bakker
Mark Roberts
Liz Waterhouse (Company Secretary)
SUBSIDIARY
BOARDS
2016
9

CHIEF EXECUTIVE
OFFICER’S REPORT
The constrained real
estate markets in Perth
and the South West
formed the backdrop to
Access Housing’s work
during the year, with
mixed impacts.
High vacancy rates
and decreasing rents
in the private market
had a knock on effect
on our Community
Housing division. We
experienced higher than
usual tenancy turnover, with a number of affordable
housing tenants opting for private rental options. On
the one hand this aligns with our goal to transition
people out of community housing into private housing;
on the other it resulted in marginally decreased
revenue and additional maintenance costs. Despite this,
net profit for the division remained healthy at $5.97
million. A restructure was successfully implemented
during the first half of 2016, which will result in
savings and improved efficiencies in future years.
Some of the savings are being reinvested into a new
Tenant Program Coordinator position. This position
has responsibility for initiatives to improve tenant
sustainability outcomes and increase opportunities
for tenants to enhance their financial circumstances
and move out of social housing. My thanks to General
Manager Tenancy Services Allan Wilkerson and his
leadership team for providing a steady hand on the
tiller during this period of change.
For our property development projects, market
conditions meant slow sales, investor caution and a
reduction in end values. On the upside, it created the
opportunity to purchase a new apartment complex in
Nollamara at competitive pricing, providing additional
housing stock without the development and sales
risk. Overall we were progressing 180 units during
the year across 11 projects (inclusive of the Nollamara
acquisition). We expended $22.5 million on these
projects to 30 June 2016, including the prior year’s
expenses on projects carried forward into FY2015/16.
Two projects were completed, including nine villas in
Waikiki and two disability housing units in Busselton
(see page 19).
HORIZON HOUSE PARTNERSHIP
In November 2015 Access Housing partnered
with St John of God Social Outreach through
its Horizon House Program.
Horizon House provides stable, long-term
accommodation for at-risk youth to enable
them to access education, training and/or
employment opportunities. Clients undertake
a life-skills program to help them develop the
skills they will need to make the transition
to independent living. Horizon House also
provides counselling and support to help
address the specific needs of young people,
some of whom have faced significant
challenges in their lives such as family
conflict, physical or mental abuse,
homelessness and substance abuse.
Access Housing’s two-year pilot project with
Horizon House will see 10 of its clients move
into Access Housing properties to enhance
the Program’s second tier, which provides
transitional accommodation for a period of
up to 12 months before clients move onto
independent living arrangements.
The role of secure, affordable housing in
the journey towards independence cannot
be understated and it is with great pride
that Access Housing can participate in, and
contribute to, this initiative.
2016
10

At 30 June 2016 we had completed 163 construction
and acquisition units since 2013, retaining 124 for
social rental housing. Of our 304 approved NRAS
incentives, 173 have been activated on dwellings
constructed by various parties. Eight projects (152
units) were underway at year's end in Rockingham,
Baldivis, Waikiki, Coolbellup, White Gum Valley,
Hamilton Hill, Boyanup and Dardanup. We expect all
to reach practical completion during FY2016/17. Our
thanks to BGC Construction, Switch Homes, JAXON
Construction, LandCorp, the South West Development
Commission and the Department of Regional
Development for their professionalism and support
and to the Cities of Rockingham and Cockburn
and Shires of Capel and Dardanup for their positive
approach to our development proposals. My thanks also
to our outstanding Property Development team headed
up by General Manager Property Assets Su Groome.
Diversifying our revenue base has been a key goal
for Access Housing since 2011 and Access Housing
Realty Pty Ltd (AHR) was established in part in
response to that aim. Whilst FY2015/16 proved to be
a tough year for AHR, the company was successful in
winning an important tender in November 2015 for the
management of Rottnest Island Authority staff housing.
The new strategic business priorities approved by the
Board in early 2015 enabled the Executive to develop
an exciting Business Plan 2015-2020 and to lock in
business priorities for the medium term.
Key initiatives were pursued under each of our
strategic pillars:
Strategic Leadership (Creating Awareness)
Sustainable Growth (Creating Homes)
Making A Difference (Creating Choices)
Sector Development and Innovation
(Creating New Markets)
(L-R) Shire of Dardanup Deputy President Peter
Robinson, Member for South West Region Hon Colin
Holt MLC, Access Housing Chief Executive Officer
Garry Ellender and acting South West Development
Commission Chief Executive Officer Anna Oades at
the Dardanup project launch.
NO PLACE LIKE HOME
FOR SOUTH WEST SENIORS
Access Housing’s Royalties for Regions-funded
South West Ageing in Place Housing Pilot
projects at Boyanup and Dardanup will deliver
new and refurbished homes for seniors who
wish to remain in their local communities as
they grow older.
Construction is well underway for 14 new
seniors homes at Dardanup and another nine
units at Boyanup. Three existing units at the
Boyanup site are also benefitting from modern
refurbishments.
Ageing in place has fantastic benefits for
seniors in regional areas as they can continue
to enjoy their existing social, health and other
amenity and support networks. Without these
sorts of projects, people approaching their
retirement years in regional areas traditionally
would have to relocate to larger towns or cities
to access housing better suited to their needs.
Both developments were made possible by
a $4.87 million investment through the State
Government’s Royalties for Regions program.
Access Housing purchased the land and,
together with project expenses, has invested
$1.5 million into the projects.
Twelve of the 26 units will be made available for
sale to local seniors, with sales proceeds used
to fund another seniors housing project in the
South West. Access Housing will retain 14 units
for affordable rental purposes.
2016
11

STRATEGIC LEADERSHIP
The Board approved key advocacy priorities during
the year with proposals to reform Federal-State
policy and funding arrangements, create greater
contestability and accountability in the social and
affordable housing system, incentivise NFP and private
sector investment and address the declining and
ageing public housing asset base. A series of positive
meetings were held with Members of Parliament
at Federal and State levels. We also developed a
comprehensive submission for the Council of Federal
Financial Relations Affordable Housing Working
Group, which was received with considerable interest.
In addition, I continued as a company director on the
Board of PowerHousing Australia, which has stepped
up its advocacy activities on behalf of larger scale
community housing providers.
On the marketing front, Access Housing was the proud
winner of the Business News 2016 Rising Stars Award
in the Not For Profit category. The timing of the award
was perfect as it announced the commencement of
a year-long celebration, with 2016/17 being Access
Housing’s 10th anniversary since our establishment
through the merger of three smaller housing
associations in 2006.
SUSTAINABLE GROWTH
Our major innovation project, Access CCIN, which is
a vehicle for attracting private equity investment for
the provision of social and affordable rental housing,
continued to progress during the year. We received
a positive private tax ruling on the structure from
the ATO (thank you to Jonathon Leek, Barrister,
for his outstanding work on this). An Information
Memorandum to investors was issued by consultants
Private Invest on behalf of Access CCIN in May 2016
and at the end of the financial year Private Invest
and Social Ventures Australia were engaging with a
number of potential investors. We are hopeful of a
successful capital raising being concluded early in
2016/17 so that the first projects (100 units across 14
sites) can commence.
At year's end we had designs progressing to
development approval and a construction contract
finalised with builder Ausco Modular. My thanks to
consultant Mark Roberts for his tireless work on this
pioneering project, to Access CCIN Ltd Board Chair
Jim McGinty, the other CCIN Directors and to the
Access Housing team, in particular Daniel Miskiewicz,
Su Groome and Ralton Benn. Thanks also to Leo
Crohan and the Ausco team, Alan Churley at Corrs
Chambers Westgarth and to the WAHA who have
stayed the course with us over what has been an
extended journey.
MAKING A DIFFERENCE
A second key innovation project that we pursued was
the development of a Shared Equity Home Ownership
scheme jointly with Keystart. Approvals to trial a
scheme in 2016/17 were given by the Access Housing
and Keystart Boards during the year and at 30 June
2016 legal and marketing documentation were being
finalised. My thanks to Keystart CEO John Coles
for his support and to Access Housing’s Lyn Brun
for managing the project development for Access
Housing. Shared equity will act as a pathway for some
of our affordable rental tenants, but also as a broader
home ownership entry point for people on moderate
incomes at a time when home ownership rates are
falling across the country in most age cohorts.
Late in the year we engaged a Tenant Program
Coordinator to develop a strategy and implement
initiatives to improve tenant sustainability outcomes
and to facilitate programs to enable tenants to
improve their financial circumstances and transition
out of social rental housing. The strategy will be
finalised in 2016/17 and we are excited at the prospect
of working with project partners to create some
genuine opportunities and choices for tenants.
2016
12

28%of tenancies are
supported tenancies
OUR COMMUNITY HOUSING PORTFOLIO
ACROSS 31 LOCAL GOVERNMENT AREAS
Peel Region
263
South West Region
214
Perth Metro
1289
 61%  39%
TENANT PRIMARY
INCOME SOURCE
WAGES
CENTRELINK
OTHER
PRIMARY TENANT
AGE GROUPS
15 to 24 years
25 to 44 years
45 to 64 years
65 & over
85%
4%
11%
GENDER OF PRIMARY TENANTS
38%34%3% 25%
OUR COMMUNITY
HOUSING PORTFOLIO
17% Mental Health Illness
9% Disability
2%
Crisis
2016
13

COMMUNITY HOUSING
SECTOR DEVELOPMENT
AND INNOVATION
I’m particularly proud to report that the key initiatives
that we drove during the year under this objective
were aimed at assisting the broader sector rather
than directly benefiting Access Housing. Su Groome
worked in a consultancy capacity with the Central
Eastern Aged Care Alliance (CEACA), on behalf of
11 Wheatbelt Shires, to successfully secure funds
through Royalties for Regions for the largest single
government investment in seniors housing in a WA
region (75 homes). These projects should commence
in FY2016/17.
Allan Wilkerson took a leadership role with the sector
by hosting a number of forums for providers involved
in housing for people with mental health illness and
chairing state and national Operations Managers
forums, which enable community housing providers to
share best practice and discuss common issues.
BUSINESS FOUNDATIONS
Overall, the financial performance of the company
was solid, despite market pressures. The key financial
numbers included:
Revenue of $47.36 million. When we exclude asset
transfers, revenue equated to $21.72 million, an
increase of 8.0% on the previous year.
Total comprehensive income (Net Profit) of $26.73
million. Excluding asset transfers, net profit was
$1.08 million, an increase of 17.8%.
Total assets increased to $184.05 million, an increase
of $37.98 million (26%).
Total equity increased to $154.30 million, an increase
of $26.73 million (21%).
The WAHA completed its asset transfer
commitments to Access Housing under the SLA300
contract, gifting $25.645 million of property
assets to underpin our property development
growth capacity. Our thanks to the WAHA for their
generous support over the past decade.
My thanks to our Chief Financial Officer Ian Aiyathurai
and his team that worked closely with the Finance and
Audit Committee during the year to revise our financial
reports, and internally to automate key reports to
provide early visibility over potential financial risks. This
was essential in enabling the Access Housing Realty
Board to make some key decisions halfway through
the year to reign in costs, limiting Financial Year losses.
Ian has continued to challenge our business models
and at years end, driven in part by the higher risk
profile of delivering projects in a supressed market,
was working with our Property Assets team to re-think
our property development models and understand
the medium to long term cost pressures on our owned
and leasehold assets. This work will fundamentally
drive new strategic asset management proposals to be
introduced in FY2016/17.
Finally, my thanks to our Human Resources Manager
Jane House and Salary One consultant Julian Keys
for successfully managing our enterprise bargaining
agreement (EBA) negotiations. A new EBA was
lodged with Fair Work Australia in October 2015.
OUR PROPERTIES BY BEDROOMS
23% 44% 26% 6% 1%
1
BED
2
BED
3
BED
4
BED
5
BED
OUR HOUSEHOLD COMPOSITIONS
Single person
Sole parent plus
child/ren under 16
Couple only
Couple plus
child/ren under 16
Family
Group/non-related
56%10%
15%
12%
4%
3%
2016
14

TENANT SATISFACTION
Access Housing conducted its annual Tenant Survey
mid-year in order to understand tenants’ levels of
satisfaction with the services provided by Access
Housing and to determine how those services could
be improved in the future. This feedback gave the
company great insight relating to our Customer
Service, Property Maintenance, Communication
and Overall Tenant Satisfaction over the 12 months
preceding the survey.
This year we received 581 completed surveys (a 35%
response rate). The ﬁndings and feedback from the
survey showed a high level of satisfaction amongst the
tenants that completed and returned the survey.
In addition to rating their satisfaction with Access
Housing, some tenants also provided additional
feedback. Here is a selection of their comments:
2016
Satisfaction Rate
Overall satisfaction with Access
Housing / Housing Services
87%
Property condition 90%
Communication from
Access Housing
88%
Staff helpfulness in relation to your
last maintenance request
90%
Repairs and maintenance services 88%
Repairs done by contractors 87%
Listening and acting on tenant
views
83%
Maintenance Hotline 82%
ALL STAFF I HAVE
DEALT WITH …
HAVE ALWAYS
ACTED EXTREMELY
PROFESSIONAL AND
COURTEOUS…
GREAT STAFF AND
SERVICE, LIVING
HERE HAS GREATLY
IMPROVED MY LIFE.
COMMUNICATION
IS GREAT
I REALLY APPRECIATE
EVERYTHING THEY DO
AND REALLY APPRECIATE
HOW HARD THEY ALL
WORK. MY SON AND I HAVE
BEEN HEALTHIER AND
ARE SLOWLY REALISING
HOW LUCKY WE ARE.
MY HOUSING
COORDINATOR IS VERY
RESPECTFUL. I HAVE
NEVER FELT JUDGED
FOR MY MENTAL
HEALTH ISSUES.
ACCESS HOUSING PROVIDES
ME WITH A SAFE AND SECURE
PLACE TO LIVE. I AM TOTALLY
HAPPY WITH THIS PLACE. I FEEL
COMFORTABLE HERE. I CANNOT
THANK ACCESS HOUSING
ENOUGH FOR LETTING ME
STAY IN THIS GREAT PLACE.
THESE GUYS HERE ARE VERY
HELPFUL AND NOTHING IS
TOO MUCH FOR THEM TO TAKE
CARE OF. VERY HAPPY WITH
EVERYONE, THE STAFF ARE ALWAYS
CHEERFUL AND HAPPY. THANK
YOU TO ACCESS FOR GIVING ME
A BETTER QUALITY OF LIFE.
I’VE BEEN WITH ACCESS
FOR FIVE YEARS. I THINK
THAT THE SERVICE YOU
PROVIDE IS GREAT. THANK
YOU FOR A NICE UNIT AND
A SAFE PLACE TO BE IN.
ACCESS HOUSING PEOPLE
MAKE YOU FEEL GOOD
WHEN YOU TALK TO THEM
ON THE PHONE. THEY ALSO
SEND REPAIR MEN OUT
STRAIGHT AWAY. THANK
YOU ACCESS HOUSING.
WE ARE VERY PRIVILEGED
FOR THIS BEAUTIFUL RENTAL
HOME AND FURTHER BLESSED
WITH THE SUPPORT AND
CONSIDERATE STAFF ACCESS
HOUSING HAS TO OFFER. WE
ARE VERY SATISFIED 100%
AND WE THANK YOU AGAIN.
ACCESS HOUSING HAS
IMPROVED THE QUALITY
OF LIFE OF MY YOUNG
SON AND I GREATLY
APPRECIATE IT. THEY
ARE APPROACHABLE
AND EFFICIENT.
2016
15

LOOKING AHEAD
2016/17 marks our 10th year in business, with the
anniversary being a time for reflection, celebration
and a chance to consider the next decade. The
challenging Perth property market and lack of
government strategy to support large scale expansion
of the community housing sector vindicates Access
Housing’s revised strategic priorities adopted in 2015,
which have required us to take a stronger strategic
leadership and sector support and development role
as industry leaders. It has also reinforced our decisions
to invest in financial innovation to build scalable,
replicable, unsubsidised investment models for new
housing supply.
In the next year or so we are particularly looking
forward to:
Implementing the Access CCIN project in Cloverdale
and development of further investment tranches;
Trialling our first Shared Equity Home Sales
program;
Implementing initiatives to improve the choices and
opportunities for applicants and tenants to enable
people to better transition into and out of the social
housing system;
Further exploration of opportunities to become part
of a larger national affordable housing company
with significant market power and scale;
Developing and implementing new strategic asset
management programs to renew and revitalise
owned and leasehold assets;
Ongoing delivery of new quality, affordable housing
through our property development programs;
Continuing diversification of our revenue base and, in
particular, growing Access Housing Realty Pty Ltd;
Productively working with strategic partners to
expand housing options for high needs clients,
including those with a disability; and
Relocating to new offices.
We are hopeful that the Federal Government’s
Affordable Housing Work Group process will be a
game changer, with the Federal Government driving
housing initiatives to reform Federal-State housing
funding arrangements, encourage the growth and
development of the community housing sector and
create market incentives to attract large scale private
and NFP capital to drive new housing supply. We
are also hopeful that the State election will see the
adoption of bi-partisan support for vital reforms to the
social housing system in WA, with significant support
for the role and growth of the community housing
sector.
In closing, I would like to acknowledge the vision and
drive of my Executive team, the professionalism and
dedication of our staff and the commitment of my
Board Chairman and fellow Directors. I would also
like to acknowledge my colleagues among our key
stakeholders in the private sector, Local and State
Government agencies and the NFP housing and
community services sectors who all contribute to
Access Housing’s success in making a difference to
people’s lives.
Garry Ellender
Chief Executive Officer
Access Housing Australia Ltd
Artist's impression of our South West Ageing in Place
development at Dardanup
Artist's impression of our White Gum Valley development
2016
16

REPORT CARD
ON OUR STRATEGIC PLAN KEY
ACTIVITIES AND ACHIEVEMENTS
FOR THE YEAR
STRATEGIC
LEADERSHIP
CREATING
AWARENESS
“provide strategic
leadership
on housing
affordability
issues to influence
government
strategies and
policies, raise public
awareness and
increase Access
Housing’s public
profile.”
This year we:
Won the 2016 Business News
Rising Stars Award in the Not
For Profit category
Joined project partners
City of Perth and Access
Housing Realty in receiving a
‘High Commendation’ in the
Excellence in Social Housing
category at the Australasian
Housing Institute’s Professional
Excellence in Housing Awards
for the City’s Penny Lane
Key Worker Accommodation
complex
Were a finalist in the 2016
WACOSS Community Services
Excellence Awards in the Large
Organisation category
Developed and promoted
Access Housing’s key housing
affordability policy advocacy
priorities
Prepared a comprehensive
submission to the Federal
Council on Financial Relations
Affordable Housing Working
Group
Held regular meetings with
Federal and State Members of
Parliament and senior executives
of key government agencies
Undertook a number of public
speaking engagements at
conferences and forums,
including the 2015 National
Housing Conference in Perth
Increased our media profile
through promotion of
development projects, media
releases, development of a
corporate video and other
initiatives
SUSTAINABLE
GROWTH AND
CAPACITY
CREATING HOMES
“significantly
increase social
and affordable
housing choices in
local communities,
create scalable
housing solutions
and diversify our
revenue base.”
This year we:
Continued to progress the
Access CCIN private equity
financing project, achieved a
positive ATO private tax ruling,
undertook detailed design
development and signed a
construction contract with
Ausco Modular
Were successful, via tender, in
securing management rights for
Rottnest Island Authority's staff
housing on the island
Progressed a significant
construction and acquisition
program, comprising work on
11 projects (180 units)
Completed a family housing
project in Waikiki and a disability
housing project in Busselton
2016
17

Commenced a major apartment
development (51 units) in Baldivis
(named Jervis Rise) in a 50:50
financing agreement with builder
BGC Construction (below)
Commenced an innovative
project in White Gum Valley
to provide housing for a local
artists' collective. Appointed
JAXON Construction as the
builder
Commenced a small disability
housing project in Waikiki
(nine units)
Commenced two seniors
housing projects in Boyanup
and Dardanup after receiving
generous Royalties for Regions
funding
Made upgrades and
refurbishments to 130 properties,
expending more than $550,000
Commenced development of a
pilot program to refresh WAHA
leasehold assets and reduce our
long term maintenance liabilities
MAKING A
DIFFERENCE
CREATING CHOICES
“focus on
customer-first, best
practice services
that increase choice
and opportunity
and facilitate
effective pathways
across the housing
continuum.”
This year we:
Developed and negotiated a
Shared Equity Home Ownership
scheme in conjunction with
Keystart, which will commence
in late 2016
Implemented a major restructure
of our Community Housing
division to improve customer
service and efficiencies
Continued to drive case
management and early
intervention strategies in respect
to rent arrears, tenant debts and
anti-social tenancy issues
Commenced development of
a Tenant Sustainability and
Choices Strategy
Reviewed our Bunbury lodging
operations, introducing changes
to improve program viability and
tenant outcomes
Partnered with St John of God
Health Care, providing homes
for their Horizon House youth
transitional housing program
Participated in Ruah's 50 Lives
50 Homes initiative, which is
addressing street homelessness
through the offering of
permanent housing and
wrap-around support services
Commenced an in-house garden
maintenance team, with good
feedback from tenants and
results on the ground
Achieved excellent Annual
Tenant Survey results, with
an overall 87% customer
satisfaction level - 5% higher
than the industry benchmark
2016
18

COMMUNITY
HOUSING SECTOR
DEVELOPMENT
AND INNOVATION
CREATING NEW
MARKETS
“diversify client
markets and
services and expand
the role of the
sector, particularly
in regional
communities.”
This year we:
Assisted CEACA, on behalf of
11 Wheatbelt Shires, to secure
Royalties for Regions funding for
the biggest single government
investment in seniors housing in
regional WA (75 houses)
Were proactive in building
engagement between the
disability and community
housing sectors
Initiated regular forums for
Community Housing Providers
and support agencies involved in
housing for people with mental
health illness
Continued to expand our
housing portfolio in the South
West through our investment
(construction) activities and
growth in management leases
(L-R) Disability Services Commission Local Coordinator Teresa Jeffries,
Access Housing Tenancy Services Manager – South West Matina Aitken and
Access Housing Chief Executive Officer Garry Ellender join Dillan to help him
celebrate moving into his new home.
BUSSELTON HOMES OFFER
GREATER INDEPENDENCE
Independence at home is now a reality for a group of
Busselton residents with disability thanks to a housing project
developed in partnership between the Disability Services
Commission, Access Housing and the Housing Authority.
The partnership was formed in 2015 to design and
construct five homes to support six South West locals to
live independently in their home town. Access Housing
proudly funded the development of two 2-bedroom,
2-bathroom units, which were completed in May 2016.
This project has delivered fantastic social outcomes as it
allows local residents to live independently within their
home town and adds to the supply of not only affordable
housing in the region but also specialist disability
accommodation.
Access Housing’s units are located in a central location
within the township, ensuring residents remain close to all
required amenities and support services.
One of our new tenants at our development, Dillan, said
his new home gave him privacy and freedom. He receives
support under his WA NDIS plan to assist him to achieve his
goals to live independently, have friendships and community
connections and to be as fit and healthy as possible.
Access Housing is proud to have partnered with the Disability
Services Commission on this project.
2016
19

BUSINESS
FOUNDATIONS
“ensure sustainable,
efficient and
compliant business
systems, policies
and practices
to support and
optimise business
outcomes.”
This year we:
Achieved solid financial
results despite difficult market
conditions
Developed improved, automated
financial and performance
reports to enable more effective
financial and risk management
Commenced analysis of our
medium term financial outlook
to understand the impact of
increasing maintenance liabilities
on our debt servicing capacity
Commenced development of
an Asset Renewal program to
be considered by the Board in
FY2016/17
Successfully negotiated a new
Enterprise Agreement, which
was lodged with Fair Work
Australia in October 2015
Introduced a new competencies
framework for the alignment
of salaries, determining
position levels and establishing
performance expectations
Trialled a Purchased Leave
scheme
Continued to improve our
health and safety culture
and awareness across the
organisation
Improved workplace flexibility,
adopting mobile technologies to
enable employees to hot desk,
work out of office and from
home
Prepared the business to
migrate our integrated IT system
(OneHousing) to the cloud on
1 July 2016 to allow for more
mobile working practices, data
security and business continuity
Waikiki development completed August 2015
2016
20

ACCESS HOUSING
LEADERSHIP TEAM
Access Housing Leadership Team (L-R): Jane House (Human Resources Manager), Ian Aiyathurai (Chief Financial Officer),
Allan Wilkerson (General Manager Tenancy Services), Beverlie Denver (Licensee – Access Housing Realty Pty Ltd),
Su Groome (General Manager Property Assets), Lyn Brun (Manager Corporate Strategy and Systems),
Luli Kastrati (Tenancy Services Regional Manager – Metro), Garry Ellender (Chief Executive Officer)
and Kathryn Moorey (Tenancy Services Regional Manager – South West)
2016
21

22
ACCESS HOUSING
REALTY PTY LTD
Access Housing Realty Pty Ltd (AHR) was registered on 22 May 2013 and
commenced trading on 1 November 2013. At 30 June 2016 the company
directors were Access Housing CEO Garry Ellender (Chairman) and General
Manager Tenancy Services Allan Wilkerson. During the year, licensee Terry Foster
resigned from the company, relinquishing his Board position. There were no
further Board appointments during the year. A new licensee was recruited and
the company’s license was reassigned to Beverlie Denver in February 2016.
After breaking even in FY2014/15, the Board
anticipated a steady increase in revenue in
FY2015/16 from property management fees, National
Rental Affordability Scheme (NRAS) compliance
management, sales commissions and strata
management, with a small operating profit. However,
the sharp downturn in the real estate market and
delays in construction projects impacted on sales
commissions, strata fees and property and NRAS
management fees. To make matters worse we also
lost an important management contract comprising
60 management authorities. Despite this, revenue
increased marginally over the previous year, although it
was 31% down against budget.
The collapse in budgeted revenue was apparent
by November and the Board took urgent action,
cutting expenses overall by 14% through reductions in
administration and staffing costs. This contained the
annual net loss to $69,000.
On the upside, AHR was successful in winning a
property management tender from the Rottnest Island
Authority. This included management services for 60
staff houses and utilities management. The contract
commenced on 1 December 2015 and, at 30 June 2016,
was running well.
Total properties under management grew marginally
from 159 to 167.
FORWARD OUTLOOK
In the life cycle of businesses, AHR is still a ‘start-up’
company.
The new licensee has developed a realistic Operational
Plan to build a solid platform for future growth. We
are forecasting an increase in revenue of $111,000 to
$693,000, with a moderate net profit. The revenue
improvements are attributable to increases in NRAS
management fees, a moderate increase in property
management fees as full year receipts from the
Rottnest Island Authority contract flow through and
an increase in sales commission income from the
settlement of sales from completed development and
asset sales programs.
On the expenses side, the cost base has been flat-lined
following the sharp adjustments that we made from
December 2015.
As Board Chair, I wish to express my thanks to Beverlie
Denver who has come into the licensee role and
provided clarity and confidence; to my fellow director
Allan Wilkerson who has been hands-on, providing
leadership and support to Beverlie whilst she has
found her feet at AHR; and to the AHR staff who have
been tremendous through what has been a tough year.
Garry Ellender
Chairman
Access Housing Realty Pty Ltd
0
50
100
150
200
13/14
121 159 167
14/15 15/16
2016

COMMUNITY
BEYONDBLUE
Access Housing enhanced its commitment to helping
the community beyond its affordable housing role in
2016 by sponsoring leading mental health support
service provider beyondblue.
Approximately 20% of Access Housing’s tenants
identify as living with a diagnosed mental health
illness, so the company determined a partnership
with a premier mental health support service provider
would be beneficial to those tenants, as well as the
broader Australian community. Access Housing will
make annual donations of $5,000 to beyondblue for
three years.
STARLIGHT CHILDREN’S
FOUNDATION
Access Housing confirmed its support of the Starlight
Children’s Foundation for three years in FY2014/15.
Access Housing’s annual contributions of $5,000 to
the charity assist more than 120 seriously ill children
to take part in the Starlight Express Room program at
Princess Margaret Hospital each year.
2016 VINNIE’S CEO SLEEPOUT
Garry Ellender returned to the WACA Ground on 23
June to join more than 100 other Perth business and
community leaders for a night ‘sleeping rough’ at
Perth’s 2016 Vinnies CEO Sleepout event.
A cool, clear evening greeted the participants, who spent
the night sleeping outside on cardboard mattresses and
braving the elements to get something of a first-hand
experience and understanding of some of the hardships
homeless Australians deal with every day, in a bid to raise
funds for the St Vincent de Paul Society. This year saw
Garry raise $5,250, which took his total funds raised
for the St Vincent de Paul Society from the past four
CEO Sleepouts past $26,000.
SWAGS FOR THE HOMELESS
Access Housing continued its support of frontline
homelessness service providers by again donating
swags for the homeless as part of National
Homelessness Week 2016.
The annual awareness week saw Access Housing
donate swags to organisations assisting the homeless
across the metropolitan area and South West region.
The year also saw Access Housing proudly support other worthwhile charities via paying entry costs
for a number of staff to compete in the Perth City to Surf Fun Run for Activ Foundation and the HBF
Run for a Reason.
2016
23

AWARDS
Access Housing was recognised for its growth, diversification and
innovation when it claimed the Not For Profit category award at
the 2016 Business News Rising Stars Awards ceremony.
The Business News Rising Stars Awards are used
as a platform to uncover and showcase rising star
organisations that have experienced recent growth but
still have future potential. Eligible companies must be
based in Western Australia, have shown growth over
the past few years, wish to inspire others to grow their
enterprises and wish to build its profile.
Chief Executive Officer Garry Ellender said the award
recognised the evolution and substantial growth
of Access Housing over recent years, which has
significantly benefitted Western Australians in need of
affordable, sustainable housing.
“An award such as this cannot be understated as it
acknowledges the hard work everyone at Access
Housing has put in to enhance, strengthen, diversify
and grow the company from its roots of solely
managing a small number of social housing tenancies
to now include a successful property development
division, an expanded rental portfolio and an holistic,
broadened customer service provision,” Mr Ellender
said.
“We have an exciting period ahead of us and I extend
my congratulations to my colleagues at Access
Housing and our Board of Directors for the collective
efforts that helped us take out this prestigious award.
I also extend my thanks to the awards judging panel
and Business News team for bestowing this honour
upon Access Housing.”
Access Housing staff collect the organisation’s Rising Stars Award from awards judge Yehuda Cohen (far right)
2016
24

VALUED PARTNERS
Government of Western Australia
Mental Health Commission
Opteon Property Group
LMW
ESD Australia
Crossland & Hardy Surveyors
Donaldson and Warn
Wood & Grieve Engineers
JMG Consulting
Calibre Consulting
Galt Environmental
CADDS Group
JCY Architects
MNG
2016
25
Leimac_BC_FA.indd 1 5/12/08 3:59:38 PM

26
FINANCIAL REPORT
ACCESS HOUSING AUSTRALIA LIMITED
ABN: 67 128 888 157
DIRECTORS’ REPORT
Your directors present this report on the company for
the financial year ended 30 June 2016.
DIRECTORS
The names of each person who has been a director
during the year and to the date of this report are:
Malcolm O’Dell appointed (13/04/2010)
David Lantzke (Chairperson) appointed (26/10/2010)
Rebecca Strom appointed (28/08/2013)
Christopher Parkinson appointed (30/10/2013)
Matthew Raison appointed (30/10/2013)
Geoff Lotter appointed (30/10/2013)
Debra Bakker appointed (01/12/2014)
Hon. James (Jim) McGinty AM appointed (01/12/2014)
The following directors resigned during the year:
Michael Mitchell resigned (08/06/2016)
PRINCIPLE ACTIVITIES
The principle activities of the entity during the year were:
The management of social and affordable housing in
Perth, Peel and the South West;
Expansion of the portfolio of social and affordable
housing stock under management;
A property development program to provide
additional social and affordable housing and homes
for sale to home buyers and investors;
Broadening of Access Housing Realty Pty
Ltd services, a for-profit real estate property
management company to include strata
management and an expanded sales role; and
Development of a private equity investment
structure for the purpose of financing affordable
housing supply through Access CCIN Ltd, a wholly
owned subsidiary company of Access Housing
Australia Ltd.
REVIEW OF OPERATIONS
AND RESULTS
In pursuing the strategic objectives the company
achieved the following key results:
Total income for the year was $47.233 million (FY’2015:
$20.118 million) and the group delivered profit of
$26.728 million (FY’2015: $0.917 million).
On a recurring basis, year over year increase in income
excluding contributions from gifted properties and
non-recurring grants reflects an increase from $18.972
million in FY’2015 to $21.455 million in FY’2016.
BOARD PRIORITIES
During 2015/16 the Board has been primarily focused
on:
Development and approval of a new Business
Plan, 2015-2020 based on the company’s revised
strategic objectives adopted in early 2015;
Oversight of key activities and priorities identified in
the Business Plan, including approval to develop an
Access Housing Shared Equity Home Loan program;
Strategic oversight of the development of a private
equity investment structure (Access CCIN);
Governance oversight, including continued
implementation of independent Board evaluation
finalised in January 2015;
Strategic financial management;
Oversight of Access Housing’s property
development and sales programs, including
progress against contractual growth targets with
the Government of Western Australia Housing
Authority.
INFORMATION ON DIRECTORS:
David Lantzke
Chairperson
David Lantzke is the General Manager of Ardross
Group of Companies; a family owned diversified
property and land development group. He is a
qualified Chartered Accountant, a Fellow of Leadership
Western Australia, has completed the Advanced
Management Program at Harvard Business School and
has extensive experience in infrastructure planning,
project facilitation, asset management, town planning,
land and property development. David is a WA State
Government Ministerial appointee to the Board of the
Wheatbelt Development Commission.
2016

27
2016
Malcolm O’Dell
Director
Malcolm O’Dell is the Principal Lawyer at the not-for-
profit Central Desert Native Title Services Ltd. where
he provides advice, representation and legal expertise
on a range of matters relating to native title, land use
and corporate governance. He has a comprehensive
understanding of the housing and broader social
issues faced by many indigenous Western Australians
and is strongly committed to providing sustainable
solutions to address those issues.
Rebecca Strom
Director
Rebecca Strom is currently a partner at law firm,
Corrs Chambers Westgarth, where she has worked for
over 14 years. Rebecca’s area of focus is commercial
property and infrastructure, specialising in complex
sales and acquisitions, major leasing, and project
structuring and delivery. Rebecca’s current clients
include Woolworths, BP, Australia Post and Mirvac.
Rebecca is a member of the Property Council of
Australia, the Urban Development Institute of Australia,
the Law Society of Western Australia and is a Graduate
of the Australian Institute of Company Directors.
She is also a keen sportsperson, having previously
participated in netball, athletics, basketball and touch
football at representative levels, representing Australia
in Indoor Netball for over 10 years and captaining her
team to a World Cup Victory.
Christopher Parkinson
Director
Chris Parkinson is Chief Financial Officer and Company
Secretary of PDC Group, an engineering design, steel
detailing and building information modelling business
with operations in Australia, the Philippines and the
USA. Chris has previously been the Chief Financial
Officer and Company Secretary of an Australian
Securities Exchange listed mineral exploration
company and a partner with a global accounting and
advisory firm.
Chris is a Graduate Member of the Australian Institute
of Company Directors and a member of the Institute of
Chartered Accountants in Australia.
Matthew Raison
Director
Matt Raison is a qualified Civil and Structural Engineer
with 15 years experience in property and project
management.
Matt has worked for Peet on various master planned
projects and Mirvac, responsible for land subdivision
projects and head of New Business. Matt oversaw the
acquisition and project establishment of a wide range
of broad acre, integrated housing, luxury apartments,
mixed use and tourism projects. Matt played a key
role in the establishment of Mirvac’s first residential
development fund in Western Australia.
In 2007 Matt established Generation Projects,
a boutique project management and property
development consultancy, involved in a wide range of
residential, commercial, mixed use, retail and industrial
projects. In 2012 Generation Projects joined with
Modus Project Management to form GMPM Consulting,
one of Perth’s leading project managers in the
property development industry, its key projects include
Signature Circle, the Beaconsfield Regeneration
Project and the Sage Hotel West Perth.
Geoff Lotter
Director
Geoff Lotter is a partner at EY with more than 30
years experience auditing medium to large corporate
entities. A Chartered Accountant and Registered
Company Auditor, Geoff manages a large portfolio
of clients, providing a full assurance offering across
the real estate, construction and hospitality sectors.
He has a particular focus on the emerging and owner
managed private companies, and audits a number of
non-for-profit entities.
Geoff has provided audit and accounting advice
on a number of property related transactions,
predominately in the retail and hospitality sectors.
In addition to audits, Geoff’s expertise includes
investigations, due diligence and independent
accountant reports. Prior to joining EY, Perth in
1999, Geoff spent 17 years with KPMG South Africa.
Geoff is also a Director of the Cycling Development
Foundation.
Debra Bakker
Director
A highly credentialed and experienced resources-
industry banking and corporate finance professional,
Debra Bakker is the Western Australian representative
of global physical precious metals merchant Auramet
Trading LLC.
Debra has extensive experience as a banking financier
and deal maker in the resources industries in Australia,
the United Kingdom and the Americas. She has a
deep and broad understanding of most aspects of the
resources industry and services to industry in Australia
and globally thanks to her time spent in Sydney,
London, Chicago, New York and Perth structuring and
executing corporate finance transactions.
Debra’s financial acumen includes corporate advisory,
negotiation, cross-border, JVs and partnerships and
project finance.
The Honourable James (Jim) McGinty AM
Director
The Honourable Jim McGinty AM joined Access
Housing board last year after a decorated career in the
Western Australian Parliament including as Attorney-
General and Minister for Housing, Health, Services,
Construction, Heritage, Justice, Legal Affairs, Electoral
Affairs, Peel, South West and Environment at different
times during his 18 years as Member for Fremantle
until his retirement from politics in 2008. During this
time he also held a range of Shadow portfolios while in
Opposition, including as Leader of the Opposition.
In addition to his directorship with Access Housing,
Jim also sits on the boards of the Telethon Kids
Institute, Brightwater Group Inc and is a volunteer with
Fremantle Sea Rescue.

28
2016
Michael Mitchell
Director (resigned 08/06/2016)
Michael, ex AFL player, holds a Bachelor Degree of
Applied Science in Indigenous Community Health
specialising in Mental Health. He is the Program
Manager for the Specialist Aboriginal Mental Health
Service (Metropolitan). Michael believes that one
of the key factors in improving mental health is the
availability of secure housing and a holistic approach
to sustaining tenancies wherever possible.
Liz Waterhouse
Company Secretary
Liz Waterhouse BA (Hons), Cert Gov (Risk) has a
strong background in Social and Affordable Housing
with over a decade’s experience working across the
housing, policy and corporate areas in Fremantle
Housing Association Inc. and Access Housing Australia
Ltd. Liz graduated with a BA (Hons) in Politics and
Philosophy in 2000 and undertook Honours in 2001-
2 to examine discrimination and disadvantage. Liz
completed a Certificate IV in social housing in 2004-5
and a Certificate in Governance and Risk Management
in 2014. Liz is company Secretary of Access Housing
Australia Ltd, as well as Access Housing Realty Pty Ltd
and Access CCIN Ltd.
MEETINGS OF DIRECTORS
During the financial year, 9 meetings of directors were
held. Attendances by each director were as follows:
DIRECTORS’ MEETINGS
No. Eligible
to attend
No.
attended
David Lantzke
(Chairperson 2015-16)
9 9
Malcolm O’Dell 9 7
Michael Mitchell 8 4
Rebecca Strom 9 8
Christopher Parkinson 9 8
Matthew Raison 9 9
Geoff Lotter 9 9
Debra Bakker 9 8
Hon. James (Jim) McGinty AM 9 8
Director’s fees were set at $200 per Board meeting
attended. The directors have chosen not to accept
payments and, in lieu of this, an equivalent amount has
been donated or set aside for charitable purposes.
The entity is incorporated under the Corporations
Act 2001 and is a company limited by guarantee. It
is governed by the Corporations Act 2001 and the
Australian Charities and Not-for-profits Commission
Act 2012. If the company is wound up, the constitution
states that each member is required to contribute a
maximum of $1 each towards meeting any outstanding
obligations of the company. At 30 June 2016 the
collective liability of members was $8 (2015: $9).
SUBSEQUENT EVENTS
No material events have occurred subsequent to the
reporting period.
CHANGES IN STATE OF AFFAIRS
There was no significant change in the state of affairs
of the Group during the financial year.
AUDITOR’S INDEPENDENCE
DECLARATION
The auditor’s independence declaration for the year
ended 30 June 2016 has been received and can be
found on page-6 of the financial report.
Signed in accordance with a resolution of the Board of
Directors.
Director
David William Lantzke
Dated this 28th day of September 2016

29
2016
AUDITOR'S INDEPENDENCE DECLARATION
To The oard of Directors
Auditor’s Independence Declaration
As lead audit director for the audit of the financial statements of Access Housing
Australia Limited for the financial year ended 30 June 2016, I declare that to the best of
my nowledge and belief, there have been no contraventions of:
the auditor independence requirements of the Corporations Act 2001 in relation to
the audit; and
any applicable code of professional conduct in relation to the audit.
ours faithfully
BENTLEYS MARK DELAURENTIS CA
Chartered Accountants Director
Dated at Perth this 28th
day of September 2016

30
2016
STATEMENT OF PROFIT
OR LOSS AND OTHER
COMPREHENSIVE INCOME
for the year ended 30 June 2016,
Access Housing Australia Limited
NOTE
2016
$ ‘000
2015
$ ‘000
Revenue 2 47,100 19,842
Other Income 133 276
Gain on disposable of
property, plant and
equipment 128 216
47,361 20,334
Employee benefits
expense (7,754) (6,942)
Depreciation and
amortisation expense 3 (2,917) (2,670)
Doubtful debts
expense 3 (247) (306)
Rental expense 3 (360) (355)
Property expenses 3 (3,755) (3,394)
Ongoing maintenance
expenses 3 (2,923) (2,621)
Finance expenses (545) (429)
Other expenses (1,995) (2,705)
Impairment loss on
properties 3 (209) (-)
Share of net profit
from Joint Venture
operations 10 42 -
Profit before income
tax expense 26,698 912
Income tax benefit 4 30 5
Profit for the year after
tax 26,728 917
Other comprehensive
income - -
Total comprehensive
income for the year 26,728 917
The accompanying notes form part of these financial
statements.
STATEMENT OF
FINANCIAL POSITION
as at 30 June 2016, Access Housing Australia Limited
NOTE
2016
$ ‘000
2015
$ ‘000
CURRENT ASSETS
Cash and cash
equivalents 5 3,455 3,283
Trade and other
receivables 6 4,459 2,648
Current tax assets 4 21 -
TOTAL CURRENT
ASSETS 7,935 5,931
NON CURRENT
ASSETS
Deferred tax assets 4 41 11
Property, plant and
equipment 7 157,073 131,153
Development projects
under work in
progress 8 18,225 8,059
Intangible assets 9 771 857
Investment in Joint
Venture 10 - 54
TOTAL NON
CURRENT ASSETS 176,110 140,134
TOTAL ASSETS 184,045 146,065
CURRENT
LIABILITIES
Trade and other
payables 11 6,832 4,850
Current tax liabilities 4 - 6
Provisions 13 745 546
TOTAL CURRENT
LIABILITIES 7,577 5,402
NON-CURRENT
LIABILITIES
Other Payable 11 15 -
Provisions 13 156 94
Financial liabilities 12 22,000 13,000
TOTAL NON-
CURRENT
LIABILITIES 22,171 13,094
TOTAL LIABILITIES 29,748 18,496
NET ASSETS 154,297 127,569
EQUITY
Retained earnings 154,297 127,569
TOTAL EQUITY 154,297 127,569
statements.

31
2016
STATEMENT OF CASH FLOWS
for the year ended 30 June 2016
NOTE
2016
$ ‘000
2015
$ ‘000
CASH FLOW
FROM OPERATING
ACTIVITIES
Rental income
received 16,885 15,915
Other receipts 300 473
Receipt of grants 3,465 4,292
Interest received 24 29
Payments to suppliers
and employees (17,752) (15,715)
Finance costs paid (535) (357)
Tax paid (27) (33)
Net cash generated
by operating
activities 16 2,360 4,604
CASH FLOWS
FROM INVESTING
ACTIVITIES
Proceeds from sale
of property, plant and
equipment 1,375 786
Payment for property,
plant and equipment (12,597) (11,055)
Payment for intangible
assets (62) (199)
Distributions from
Joint Venture 96 200
Net cash used in
investing activities (11,188) (10,268)
CASH FLOW
FROM FINANCING
ACTIVITIES
Proceeds from
borrowings 9,000 5,500
Net cash used in
financing activities 9,000 5,500
Net increase /
(decrease) in cash held 172 (164)
Cash and cash
equivalents at the
beginning of the
financial year 3,283 3,447
Cash and cash
equivalents at the end
of the financial year 5 3,455 3,283
statements.
STATEMENT OF CHANGES IN EQUITY
RETAINED EARNINGS
$ ‘000
Balance as at 1 July 2014 126,652
Profit for the year 917
Other comprehensive income for the year -
Total comprehensive income for the year 917
Balance at 30 June 2015 127,569
Balance as at 1 July 2015 127,569
Profit for the year 26,728
Other comprehensive income for the year -
Total comprehensive income for the year 26,728
Balance at 30 June 2016 154,297
statements.
NOTES TO THE FINANCIAL
STATEMENTS
NOTE 1. STATEMENT OF SIGNIFICANT
ACCOUNTING POLICIES
The financial statements comprise the consolidated
financial statements of the Group. Access Housing
Australia Limited (Access Housing) is incorporated
and domiciled in Australia. Access Housing Australia
Limited is a not-for-profit Company limited by
guarantee and governed by the Corporations Act
2001 and the Australian Charities and Not-for-profits
Commission Act 2012. The address of its registered
office and its principal place of business is Level 1, 39
Adelaide Street, Fremantle WA 6959.
BASIS OF PREPARATION
The financial statements are general purpose financial
statements that have been prepared in accordance
with Australian Accounting Standards (including
Australian Accounting Interpretations) and the
Corporations Act 2001.
Australian Accounting Standards set out accounting
policies that the AASB has concluded would result
in a financial report containing relevant and reliable
information about transactions, events and conditions
to which they apply. Material accounting policies
adopted in the preparation of this financial report are
presented below. They have been consistently applied
unless otherwise stated.
The financial report has been prepared on an accruals
basis and is based on historical costs, modified,
where applicable, by the measurement at fair value
of selected non-current assets, financial assets and
financial liabilities.

32
2016
The financial statements are presented in Australian
dollars, which is the company’s functional currency.
The company is a company of the kind referred to
in ASIC Class Order 98/100, dated 10 July 1998, and
in accordance with that Class Order amounts in the
director’s report and the financial statements are
rounded off to the nearest thousand dollars, unless
otherwise indicated.
The financial statements were authorised for issue on
28 September 2016 by the directors of the Group.
ACCOUNTING POLICIES
BASIS OF CONSOLIDATION
The consolidated financial statements incorporate
the financial statements of the Group and entities
(including structured entities) controlled by the Group
and its subsidiaries. Control is achieved when the
Group:
has power over the investee;
is exposed, or has rights, to variable returns from its
involvement with the investee; and
has the ability to use its power to affect its returns.
The Group reassesses whether or not it controls an
investee if facts and circumstances indicate that there
are changes to one or more of the three elements of
control listed above.
When the Group has less than a majority of the voting
rights of an investee, it has power over the investee
when the voting rights are sufficient to give it the
practical ability to direct the relevant activities of the
investee unilaterally. The Group considers all relevant
facts and circumstances in assessing whether or not
the Group’s voting rights in an investee are sufficient
to give it power, including:
the size of the Group’s holding of voting rights
relative to the size and dispersion of holdings of the
other vote holders;
potential voting rights held by the Group, other vote
holders or other parties;
rights arising from other contractual arrangements;
and
any additional facts and circumstances that indicate
that the Group has, or does not have, the current
ability to direct the relevant activities at the time
that decisions need to be made, including voting
patterns at previous shareholders’ meetings.
Consolidation of a subsidiary begins when the Group
obtains control over the subsidiary and ceases when
the Group loses control of the subsidiary. Specifically,
income and expenses of a subsidiary acquired or
disposed of during the year are included in the
consolidated Statement of Profit or Loss and Other
comprehensive Income from the date the Group
gains control until the date when the Group ceases to
control the subsidiary.
Profit or loss and each component of other
comprehensive income are attributed to the owners of
the Group and to the non-controlling interests. Total
comprehensive income of subsidiaries is attributed to
the owners of the Group and to the non-controlling
interests even if this results in the non-controlling
interests having a deficit balance.
When necessary, adjustments are made to the financial
statements of subsidiaries to bring their accounting
policies into line with the Group’s accounting policies.
All intragroup assets and liabilities, equity, income,
expenses and cash flows relating to transactions
between members of the Group are eliminated in full
on consolidation.
A. REVENUE
Grant revenue is recognised in the Statement of
Profit or Loss and Other Comprehensive Income
when the Group obtains control of the grant and
it is probable that the economic benefits gained
from the grant will flow to the Group and the
amount of the grant can be measured reliably.
When grant revenue is received and the Group
incurs an obligation to deliver economic value
directly back to the contributor, this is considered
a reciprocal transaction and the grant revenue is
recognised in the statement of financial position as
a liability until the service has been delivered to the
contributor, otherwise the grant is recognised as
income on receipt.
Access Housing receives non-reciprocal
contributions of assets from the Government for
no nominal value. These assets are recognised
at fair value on the date of acquisition in
the Statement of Financial Position with a
corresponding amount of income recognised
in the Statement of Profit or Loss and Other
Comprehensive Income. The gain or loss on
disposal is calculated as the difference between
the carrying amount of the asset at the time of
disposal and the net proceeds on disposal.
Donations and bequests are recognised as revenue
when received.
Access Housing has contractual relationships with
Authority where Access Housing has management
rights to the Government of Western Australia
Housing Authority properties. Access Housing
is entitled to receive rental income from these
properties and has an ongoing commitment to
ensure that they are maintained on an ongoing
basis, which depending on the condition and
age of the properties will include some extensive
renovation costs on a cyclical basis.
Revenue including rental income is recognised
upon the delivery of the service to the customer.
All revenue is stated net of the amount of goods
and services tax (GST).
Interest income from a financial asset is recognised
when it is probable that the economic benefits will
flow to the Group and the amount of revenue can
be measured reliably. Interest income is accrued
on a time basis, by reference to the principal

33
2016
outstanding and at the effective interest rate
applicable, which is the rate that exactly discounts
estimated future cash receipts through the
expected life of the financial asset to that asset’s
net carrying amount on initial recognition.
Dividend income is recognised at the time the right
to receive payment is established.
B. INVESTMENTS IN ASSOCIATES
AND JOINT VENTURES
An associate is an entity over which the Group has
significant influence. Significant influence is the
power to participate in the financial and operating
policy decisions of the investee but is not control
or joint control over those policies.
A joint venture is a joint arrangement whereby the
parties that have joint control of the arrangement
have rights to the net assets of the joint
arrangement. Joint control is the contractually
agreed sharing of control of an arrangement,
which exists only when decisions about the
relevant activities require unanimous consent of
the parties sharing control.
The results and assets and liabilities of associates
or joint ventures are incorporated in these
consolidated financial statements using the
equity method of accounting, except when the
investment, or a portion thereof, is classified as
held for sale, in which case it is accounted for
in accordance with AASB 5. Under the equity
method, an investment in an associate or a joint
venture is initially recognised in the consolidated
statement of financial position at cost and adjusted
thereafter to recognise the Group’s share of the
profit or loss and other comprehensive income of
the associate or joint venture. When the Group’s
share of losses of an associate or a joint venture
exceeds the Group’s interest in that associate
or joint venture (which includes any long-term
interests that, in substance, form part of the
Group’s net investment in the associate or joint
venture), the Group discontinues recognising
its share of further losses. Additional losses are
recognised only to the extent that the Group
has incurred legal or constructive obligations or
made payments on behalf of the associate or joint
venture.
An investment in an associate or a joint venture is
accounted for using the equity method from the
date on which the investee becomes an associate
or a joint venture. On acquisition of the investment
in an associate or a joint venture, any excess of
the cost of the investment over the Group’s share
of the net fair value of the identifiable assets and
liabilities of the investee is recognised as goodwill,
which is included within the carrying amount of
the investment. Any excess of the Group’s share
of the net fair value of the identifiable assets and
liabilities over the cost of the investment, after
reassessment, is recognised immediately in profit
or loss in the period in which the investment is
acquired.
The requirements of AASB 139 are applied to
determine whether it is necessary to recognise
any impairment loss with respect to the Group’s
investment in an associate or a joint venture.
When necessary, the entire carrying amount of
the investment (including goodwill) is tested
for impairment in accordance with AASB 136
Impairment of Assets as a single asset by
comparing its recoverable amount (higher of
value in use and fair value less costs to sell)
with its carrying amount. Any impairment loss
recognised forms part of the carrying amount of
the investment. Any reversal of that impairment
loss is recognised in accordance with AASB
136 Impairment of Assets to the extent that
the recoverable amount of the investment
subsequently increases.
The Group discontinues the use of the equity
method from the date when the investment ceases
to be an associate or a joint venture, or when the
investment is classified as held for sale. When the
Group retains an interest in the former associate
or joint venture and the retained interest is a
financial asset, the Group measures the retained
interest at fair value at that date and the fair value
is regarded as its fair value on initial recognition
in accordance with AASB 139. The difference
between the carrying amount of the associate or
joint venture at the date the equity method was
discontinued, and the fair value of any retained
interest and any proceeds from disposing of a part
interest in the associate or joint venture is included
in the determination of the gain or loss on disposal
of the associate or joint venture. In addition,
the Group accounts for all amounts previously
recognised in other comprehensive income in
relation to that associate or joint venture on the
same basis as would be required if that associate
or joint venture had directly disposed of the
related assets or liabilities. Therefore, if a gain or
loss previously recognised in other comprehensive
income by that associate or joint venture would be
reclassified to profit or loss on the disposal of the
related assets or liabilities, the Group reclassifies
the gain or loss from equity to profit or loss (as
a reclassification adjustment) when the equity
method is discontinued.
The Group continues to use the equity method
when an investment in an associate becomes an
investment in a joint venture or an investment
in a joint venture becomes an investment in an
associate. There is no remeasurement to fair value
upon such changes in ownership interests.
When the Group reduces its ownership interest
in an associate or a joint venture but the Group
continues to use the equity method, the Group
reclassifies to profit or loss the proportion of the
gain or loss that had previously been recognised
in other comprehensive income relating to that
reduction in ownership interest if that gain or
loss would be reclassified to profit or loss on the
disposal of the related assets or liabilities.

34
2016
When a group entity transacts with an associate
or a joint venture of the Group, profits and losses
resulting from the transactions with the associate
or joint venture are recognised in the Group’s
consolidated financial statements only to the
extent of interests in the associate or joint venture
that are not related to the Group.
C. PROPERTY, PLANT AND EQUIPMENT
Each class of plant and equipment is carried
at cost or fair value less, where applicable, any
accumulated depreciation and impairment losses.
PROPERTY
Freehold land and buildings that have been
contributed at no cost are recognised at the fair
value of the asset at the date that it is received.
PLANT AND EQUIPMENT
Plant and equipment are measured on the
cost basis and therefore carried at cost less
accumulated depreciation and any accumulated
impairment. In the event the carrying amount of
plant and equipment is greater than the estimated
recoverable amount, the carrying amount is written
down immediately to the estimated recoverable
amount. A formal assessment of recoverable
amount is made when impairment indicators are
present.
The carrying amount of plant and equipment is
reviewed annually by the directors to ensure it is
not in excess of the recoverable amount from these
assets. The recoverable amount is assessed on the
basis of depreciated replacement cost.
The cost of fixed assets constructed within the
Group includes the cost of materials, direct labour
and borrowing costs.
Plant and equipment that have been contributed
at no nominal cost are recognised at the fair value
of the asset at the date that it is acquired.
DEPRECIATION
The depreciable amount of all fixed assets,
including buildings but excluding freehold land,
is depreciated on a straight-line basis over the
asset's useful life to the Group commencing from
the time the asset is available for use. Leasehold
improvements are depreciated over the shorter
of either the unexpired period of the lease or the
estimated useful lives of the improvements.
The depreciation rates used for each class of
depreciable assets are:
Class of Fixed Asset Depreciation Rate
Buildings and improvements 2.5% - 12.5%
Plant and equipment 10% - 50%
Motor Vehicles 12.5% - 33.3%
The assets’ residual values and useful lives are
reviewed, and adjusted if appropriate, at the end of
each reporting period.
Gains and losses on disposals are determined
by comparing proceeds with the carrying
amount. These gains and losses are included
in the Statement of Profit or Loss and Other
comprehensive income.
CAPITAL WORK IN PROGRESS
Capital work in progress is measured at cost. Cost
includes both the fixed and variable cost relating
to the specific contracts and those costs that are
attributable to the contract activity in general and
that can be allocated on a reasonable basis.
REVALUATIONS
The Group’s policy is to have its secured properties
valued on at least a three year basis in compliance
with the finance facility agreement. The directors
elected to value the non-secured properties on
a three year basis or where it believes there is
an indication that its property assets have been
impaired.
EQUITY PROJECTS
Equity projects represent the investments in
properties jointly owned by the Group and
Authority. The Group has contributed between
2% and 20% of the capital value of the properties.
These are recognised at cost.
D. BORROWINGS
Borrowings are initially recognised at fair value,
net of transaction costs incurred. Borrowings
are subsequently measured at amortised cost.
Any difference between the proceeds (net of
transaction costs) and the redemption amount
is recognised in the income statement over the
period of the borrowings using the effective
interest method.
Borrowings are classified as current liabilities
unless the Group has an unconditional right to
defer settlement of the liability for at least 12
months after the balance sheet date.
E. BORROWING COSTS
Borrowing costs directly attributable to the
acquisition or construction of qualifying assets,
which are assets that necessarily take a substantial
period of time to get ready for their intended use
or sale, are added to the cost of the assets, until
such time as the assets are substantially ready for
their intended use.
All other borrowing costs are recognised
in Statement of Profit or Loss and Other
Comprehensive Income in the period in which they
are incurred.
F. LEASES
Lease payments for operating leases, where
substantially all the risks and benefits remain with
the lessor, are charged as expenses on a straight-
line basis over the lease term.

35
2016
G. FINANCIAL INSTRUMENTS
INITIAL RECOGNITION AND MEASUREMENT
Financial assets and financial liabilities are
recognised when the Group becomes a party to
the contractual provisions to the instrument. For
financial assets, this is equivalent to the date that
the Group commits itself to either the purchase
or sale of the asset (i.e. trade date accounting is
adopted).
Financial instruments are initially measured at
fair value plus transaction costs, except where
the instrument is classified “at fair value through
profit or loss”, in which case transaction costs are
expensed to profit or loss immediately.
CLASSIFICATION AND SUBSEQUENT
MEASUREMENT
Financial instruments are subsequently measured
at fair value, amortised cost using the effective
interest method, or cost.
Amortised cost is calculated as the amount at
which the financial asset or financial liability is
measured at initial recognition less principal
repayments and any reduction for impairment,
and adjusted for any cumulative amortisation of
the difference between that initial amount and the
maturity amount calculated using the effective
interest method.
(i) Financial assets at fair value
through profit or loss
Financial assets are classified at fair value through
profit or loss when they are held for trading for
the purpose of short term profit taking, derivatives
not held for hedging purposes, or when they
are designated as such to avoid an accounting
mismatch or to enable performance evaluation
where a group of financial assets is managed by
key management personal on a fair value basis in
accordance with a documented risk management
or investment strategy. Such assets are
subsequently measured at fair value with changes
in fair value (i.e. gains or losses) being recognised
in profit or loss.
(ii) Loans and receivables
Loans and receivables are non-derivative financial
assets with fixed or determinable payments
that are not quoted in an active market and are
subsequently measured at amortised cost.
(iii) Held-to-maturity investments
Held-to-maturity investments are non-derivative
financial assets that have fixed maturities and fixed
or determinable payments, and it is the Group’s
intention to hold these investments to maturity.
They are measured at amortised cost using the
effective interest method less any impairment.
(iv) Financial Liabilities
Non-derivative financial liabilities other than
financial guarantees are subsequently measured at
amortised cost.
(v) Impairment
At the end of each reporting period, the Group
assesses whether there is objective evidence that a
financial instrument has been impaired.
In the case of available-for-sale financial assets, a
prolonged decline in the value of the instrument is
considered to constitute a loss event. Impairment
losses are recognised in profit or loss immediately.
Also, any cumulative decline in fair value previously
recognised in other comprehensive income is
reclassified to profit or loss at this point.
(vi) Derecognition
Financial assets are derecognised where the
contractual rights to receipt of cash flows expires
or the asset is transferred to another party
whereby the Group no longer has any significant
continuing involvement in the risks and benefits
associated with the asset. Financial liabilities are
derecognised where the related obligations are
discharged, cancelled or expired. The difference
between the carrying value of the financial liability,
which is extinguished or transferred to another
party and the fair value of consideration paid,
including the transfer on non-cash assets or
liabilities assumed, is recognised in profit or loss.
H. IMPAIRMENT OF ASSETS
At the end of each reporting period, the Group
reviews the carrying value of its tangible and
intangible assets to determine whether there
is any indication that those assets may have
been impaired. If such an indication exists, an
impairment test is carried out on the asset by
comparing the recoverable amount of the asset,
being the higher of the asset’s fair value less costs
to sell and value in use, to the asset’s carrying
amount. Any excess of the asset’s carrying
amount over its recoverable amount is recognised
immediately in profit or loss.
Where the future economic benefits of the
asset are not primarily dependent on the asset’s
ability to generate net cash inflows and when the
Group would, if deprived of the asset, replace its
remaining future economic benefits, value in use is
determined as the depreciated replacement cost
of an asset.
Where it is not possible to estimate the recoverable
amount of an asset class, the Group estimates the
recoverable amount of the cash-generating unit to
which the class of assets belong.
I. EMPLOYEE BENEFITS
Provision is made for the Group’s liability for
employee benefits arising from services rendered
by employees to the end of the reporting period.
Contributions are made by the Group to an
employee superannuation fund and are charged as
expenses when incurred.
J. MAINTENANCE COSTS
Day to day servicing costs or maintenance
are charged to profit or loss when expenses
are incurred, except where they relate to the

36
2016
replacement of a part or components of an asset,
which extends its life or increases the value of the
asset in which case the costs are capitalised within
property plant and equipment.
K. CASH AND CASH EQUIVALENTS
Cash and cash equivalents include cash on hand,
deposits available on demand with banks and
other short-term highly liquid investments.
L. GOODS AND SERVICES TAX (“GST”)
Revenues, expenses and assets are recognised net
of the amount of GST, except where the amount of
GST incurred is not recoverable from the Australian
Tax Office (“ATO”).
Receivables and payables are stated inclusive
of the amount of GST. The net amount of GST
recoverable from, or payable to, the ATO is
included with other receivables or payables in the
statement of financial position.
Cash flows are presented on a gross basis. The GST
components of cash flows arising from investing
or financing activities which are recoverable from,
or payable to, the ATO are presented as operating
cash flows included in receipts from customers or
payments to suppliers.
M. INCOME TAX
Income tax expense represents the sum of the tax
currently payable and deferred tax.
CURRENT TAX
The current income tax payable is based
on taxable profit for the year. Taxable profit
differs from profit before tax as reported in the
consolidated Statement of Profit or Loss and
Other comprehensive Income because of items of
income or expense that are taxable or deductible
in other years and items that are never taxable or
deductible. The Group’s current tax is calculated
using tax rates that have been enacted or
substantively enacted by the end of the reporting
period.
DEFERRED TAX
Deferred tax is recognised on temporary
differences between the carrying amounts of
assets and liabilities in the consolidated financial
statements and the corresponding tax bases used
in the computation of taxable profit. Deferred tax
liabilities are generally recognised for all taxable
temporary differences. Deferred tax assets are
generally recognised for all deductible temporary
differences to the extent that it is probable that
taxable profits will be available against which
those deductible temporary differences can be
utilised. Such deferred tax assets and liabilities
are not recognised if the temporary difference
arises from the initial recognition (other than in a
business combination) of assets and liabilities in a
transaction that affects neither the taxable profit
nor the accounting profit. In addition, deferred
tax liabilities are not recognised if the temporary
difference arises from the initial recognition of
goodwill.
Deferred tax liabilities are recognised for taxable
temporary differences associated with investments
in subsidiaries and associates, and interests in
joint ventures, except where the Group is able to
control the reversal of the temporary difference
and it is probable that the temporary difference
will not reverse in the foreseeable future. Deferred
tax assets arising from deductible temporary
differences associated with such investments and
interests are only recognised to the extent that
it is probable that there will be sufficient taxable
profits against which to utilise the benefits of the
temporary differences and they are expected to
reverse in the foreseeable future.
The carrying amount of deferred tax assets is
reviewed at the end of each reporting period and
reduced to the extent that it is no longer probable
that sufficient taxable profits will be available to
allow all or part of the asset to be recovered.
Deferred tax assets and liabilities are measured
at the tax rates that are expected to apply in the
period in which the liability is settled or the asset
realised, based on tax rates (and tax laws) that
have been enacted or substantively enacted by the
end of the reporting period. The measurement of
deferred tax liabilities and assets reflects the tax
consequences that would follow from the manner
in which the Group expects, at the end of the
reporting period, to recover or settle the carrying
amount of its assets and liabilities.
Deferred tax liabilities and assets are offset when
there is a legally enforceable right to set off
current tax assets against current tax liabilities and
when they relate to income taxes levied by the
same taxation authority and the Group intends to
settle its current tax assets and liabilities on a net
basis.
N. INTANGIBLES
COMPUTER SOFTWARE
Computer software is initially recorded at cost,
has a finite life and is carried at cost less any
accumulated amortisation and impairment losses.
It has an estimated useful life of 3 to 8 years and is
assessed annually for impairment.
The development expenditure of computer
software developed within the Group includes
costs of services and costs of employee benefits
arising from the generation of the asset.
DERECOGNITION OF INTANGIBLE ASSETS
An intangible asset is derecognised on disposal, or
when no future economic benefits are expected
from use or disposal. Gains or losses arising from
derecognition of an intangible asset, measured
as the difference between the net disposal
proceeds and the carrying amount of the asset
are recognised in profit or loss when the asset is
derecognised.
O. PROVISIONS
Provisions are recognised when the Group has a
legal or constructive obligation, as a result of past
events, for which it is probable that an outflow

37
2016
of economic benefits will result and that outflow
can be reliably measured. Provisions recognised
represent the best estimate of the amounts
required to settle the obligation at the end of the
reporting period.
P. TRADE AND OTHER PAYABLES
Trade and other payables represent the liability
outstanding at the end of the reporting period for
goods and services received by the Group during
the reporting period which remain unpaid. The
balance is recognised as a current liability with
the amounts normally paid within 30 days of the
recognition of the liability.
Q. COMPARATIVE FIGURES
Where required by Accounting Standards
comparative figures have been adjusted to
conform with changes in presentation for the
current financial year.
R. FAIR VALUE OF ASSETS AND LIABILITIES
The Group measures some of its assets and
liabilities at fair value on either a recurring or non-
recurring basis, depending on the requirements of
the applicable Accounting Standard.
Fair value is the price the Group would receive
to sell an asset or would have to pay to transfer
a liability in an orderly (i.e. unforced) transaction
between independent, knowledgeable and willing
market participants at the measurement date.
As fair value is a market-based measure, the
closest equivalent observable market pricing
information is used to determine fair value.
Adjustments to market values may be made
having regard to the characteristics of the specific
asset or liability. The fair values of assets and
liabilities that are not traded in an active market
are determined using one or more valuation
techniques. These valuation techniques maximise,
to the extent possible, the use of observable
market data.
To the extent possible, market information is
extracted from either the principal market for the
asset or liability (i.e. the market with the greatest
volume and level of activity for the asset or
liability) or, in the absence of such a market, the
most advantageous market available to the entity
at the end of the reporting period (i.e. the market
that maximises the receipts from the sale of the
asset or minimises the payments made to transfer
the liability, after taking into account transaction
costs and transport costs).
For non-financial assets, the fair value
measurement also takes into account a market
participant’s ability to use the asset in its highest
and best use or to sell it to another market
participant that would use the asset in its highest
and best use.
The fair value of liabilities and the entity’s own
equity instruments (excluding those related to
share-based payment arrangements) may be
valued, where there is no observable market
price in relation to the transfer of such financial
instruments, by reference to observable market
information where such instruments are held as
assets. Where this information is not available,
other valuation techniques are adopted and, where
significant, are detailed in the respective note to
the financial statements.
VALUATION TECHNIQUES
In the absence of an active market for an identical
asset or liability, the Group selects and uses one
or more valuation techniques to measure the fair
value of the asset or liability, The Group selects
a valuation technique that is appropriate in the
circumstances and for which sufficient data is
available to measure fair value. The availability of
sufficient and relevant data primarily depends on
the specific characteristics of the asset or liability
being measured. The valuation techniques selected
by the Group are consistent with one or more of
the following valuation approaches:
Market approach: valuation techniques that use
prices and other relevant information generated by
market transactions for identical or similar assets
or liabilities.
Income approach: valuation techniques that
convert estimated future cash flows or income and
expenses into a single discounted present value.
Cost approach: valuation techniques that reflect
the current replacement cost of an asset at its
current service capacity.
Each valuation technique requires inputs that
reflect the assumptions that buyers and sellers
would use when pricing the asset or liability,
including assumptions about risks. When selecting
a valuation technique, the Group gives priority
to those techniques that maximise the use
of observable inputs and minimise the use of
unobservable inputs. Inputs that are developed
using market data (such as publicly available
information on actual transactions) and reflect
the assumptions that buyers and sellers would
generally use when pricing the asset or liability
are considered observable, whereas inputs for
which market data is not available and therefore
are developed using the best information
available about such assumptions are considered
unobservable.
FAIR VALUE HIERARCHY
AASB 13 requires the disclosure of fair value
information by level of the fair value hierarchy,
which categorises fair value measurements
into one of three possible levels based on the
lowest level that an input that is significant to the
measurement can be categorised into as follows:
Level 1
Measurements based on quoted prices
(unadjusted) in active markets for identical assets
or liabilities that the entity can access at the
measurement date.

AH-Annual-Report-2016

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