Date:
1 Oct 2020

The Portable Long Service Authority’s 2018–19 Annual Report and accompanying financial statements present a summary of the Authority's performance over the 2018–19 financial year.

Responsible body’s declaration

In accordance with the Financial Management Act 1994 (Vic), I am pleased to present the Portable Long Service Benefits Authority’s Annual Report for the period ended 30 June 2019.
Julius Roe
Chair, Governing Board

Note on accessibility

We've provided as much of this annual report in HTML as practicable. Complex financial tables are provided in position in Word documents.

For accessibility assistance understanding this report, contact us.

Overview

Delivering a quality Portable Long Service Benefits Scheme to protect the benefits of those who are entitled to them.

The Portable Long Service Benefits Authority is an independent statutory body established to administer the Long Service Benefits Portability Act 2018. The Act, together with the Interim Long Service Benefits Portability Regulations 2019 provide a scheme for the portability of long service benefits to eligible workers in the Community Services, Contract Cleaning and Security Industries.

The Scheme was created in response to the Victorian Parliament’s Economic, Education, Jobs and Skills Committee inquiry into portability of long service leave entitlements. It enables eligible workers to accrue long service benefits based on length of time employed in their respective industry, as opposed to length of time employed by one employer.

Vision

Delivering a quality Portable Long Service Benefits Scheme to protect the benefits of those who are entitled to them.

Purpose

Administering an effective Portable Long Service Benefits Scheme through prudent, sustainable investment and supporting all stakeholders – including employers and workers alike – as well as educating and enforcing every stakeholder’s role and interest in the scheme.

Values

The Authority has adopted the Victorian Public Sector values, which underpin the behaviours that the government and community rightly expect of it. Acting consistently with these values strengthens the Authority’s capacity to operate effectively and achieve our objectives. These values are:

  • Responsiveness – We are approachable and provide timely, useful and accurate information.
  • Integrity – We have unbiased and honest interactions.
  • Impartiality – We are firm and consistent in our application of the law.
  • Accountability – We fulfil our objectives in a clear, transparent and responsible manner.
  • Respect – We respect our stakeholders, each other and ourselves.
  • Leadership – We seek to have a positive influence and to empower others.
  • Human rights – We administer the law and deliver decisions, advice and policy that respect and support everyone’s human rights.

Chair and Chief Executive Officer / Registrar’s Report

The start of the 2019-20 financial year on 1 July 2019 marked the commencement of the Portable Long Service Leave Scheme (the Scheme) in Victoria for the Community Services, Contract Cleaning and Security Industries. For the first time, eligible workers in these sectors could accumulate long service benefits after working in their industry for seven years, irrespective of the number of employers that they have worked for over that time. Covered employers also became obliged to comply with the requirements set out in the Long Service Benefits Portability Act 2018 (the Act) as well as any accompanying Regulations issued by the Authority.

From an operational perspective, the first year of operations for the Authority as a Regulator has been one of strong achievement, with the Scheme registering over 100,000 workers – well in excess of the Victorian government’s target of 75,000 workers as set out in the 2019-20 Victorian State Budget Papers. Under the oversight of an experienced Governing Board, the Authority’s leadership team has established strong corporate governance and risk management practices that have guided the Authority’s approach to its education and enforcement activities, having clear regard for the interests of all stakeholders whether they are eligible workers or covered employers.

From a staff perspective, it is likely that we will perhaps all remember 2019-20 only for the far-reaching efforts that the global coronavirus (COVID-19) pandemic has created for us. Notwithstanding that the Authority is based predominantly in Bendigo in regional Victoria where the impact has been comparatively low, the arising consequences of coronavirus (COVID-19) on work practices and how we support our staff with social distancing protocols, balancing home teaching and other care duties, as well as occupational health, safety and mental health support has all been challenging.

Although only in its first year of operations, we are pleased to say that the Authority’s staff and management team displayed exemplary resilience and dedication to ensure that there were no unplanned outages during the financial year, both in terms of the Authority’s core systems or contact centre all while maintaining staff morale and productivity.

There remains much work of a challenging nature to be done in 2020-21 by the Authority. While the Authority is financially sustainable, the pace of change with technology will require some investment in new systems and interfaces with the public to respond both to stakeholder feedback and to changes that will occur arising from the Long Service Benefits Portability Regulations 2020, which is expected to come into effect before the end of 2020.

We look forward to building on the success of 2019-20 as we progress towards our vision of delivering a high-quality Portable Long Service Leave Scheme to protect the benefits of those who are entitled to them.

Role and functions

The Authority has several key functions pursuant to the Act:

  1. administering the Portable Long Service Benefits Scheme in the covered industries
  2. making payments of benefits
  3. keeping registers of covered employers and workers
  4. resolving disputes as to the timing of taking a period of leave (applicable only to workers in the Contract Cleaning and Security industries)
  5. consulting other industries that may be affected by decisions made under the Act in relation to covered industries

Business Units

The Executive, Governance, Legal and Secretariat Business Unit is responsible for establishing good governance, delivering sound legal advice to the Authority as well as facilitating the efficient and effective running of the Governing Board and Audit and Risk Committee.

The Financial Services Business Unit underpins our operations and the Chief Financial Officer has specific responsibilities under the Financial Management Act 1994. Performance monitoring, responsible budgeting, and a robust investment strategy ensure that the entitlements of registered workers are managed prudently, and helps to ensure the sustainability of the Scheme.

The Client Service and Operations Business Unit is the largest business unit within the Authority and delivers our core registry and enforcement functions through engaging with employers and workers to support them to fulfil their obligations and understand their rights.

The Facilities, Information and Technology Business Unit underpins our core operations and manages key vendors which support our network infrastructure and telephony systems. Having the best systems in place enables us to be efficient and effective in delivering on our functions.

The People and Culture Business Unit supports the growth and development of our people and culture. Our people are our greatest asset. Without our people, we have no capability to fulfil our statutory obligations under the Act.

The Communications and Engagement Business Unit leads communications, identification of and engagement with key stakeholders and internal and external education activities to ensure that employers understand and can meet their obligations and workers know their rights. As a new scheme in Victoria, it is vital that we communicate and engage with employers and eligible workers across the covered sectors.

Objectives

  • Fulfil our legislative obligations by effectively administering and supporting compliance with the Long Service Benefits Portability Act 2018.
  • Implement responsible budget and effective investment strategies which grow levy funds and deliver long-term sustainability.
  • Be clear, consistent, transparent and responsive in our stakeholder communications to encourage registration and levy payments and ensure that eligible workers and employers are aware of their rights and obligations.
  • Maintain a healthy and safe workplace with a culture that encourages engaged, resilient and solution-focused staff.
  • Maintain an innovative, secure, resilient and integrated information technology environment that supports effective operations now and into the future.
  • Protect the long-term interests of the Authority through effective regulation using governance,
  • strategic risk management and clear policies and procedures.

The year in review

Meet Alison Cosker, the scheme’s 100,000th registered worker

Community service worker Alison Cosker was the 100,000th worker to be registered with the Portable Long Service Benefits Scheme after being signed up by her employer, e.motion21.

The Kew-based not-for-profit aims to enhance lives for people with Down syndrome and change perceptions of Down syndrome through performance-based activities and community engagement.

Alison is the learning facilitator for e.motion21’s pilot initiative; Impact21, working with a select group of students in a tertiary setting to prepare them for work and explore customised employment that suits their skills and interests.

Portable long service was introduced to provide portability of long service benefits for workers in sectors that struggle to qualify for long service entitlements under traditional long service.

The community services sector is often characterised by short-term contracts and funding arrangments, meaning workers are not always able to stay with a single employer long enough to access long service leave despite working in a similar role or area for many years.

For community services workers like Alison, the Portable Long Service Benefits Scheme is game changing. Portable long service makes sure workers in the covered industries can accrue long service benefits for their total years in a single industry, rather than with a single employer.

Impact21

Alison, whose background is in teaching and human services, has been working with her students for the past twelve months out of the Torrens University campus on Flinders Street in Melbourne.

On a typical day the 12 students travel into the CBD from all around Melbourne, and from as far away as Geelong and the Mornington Peninsula. Commuting into the university campus is integral as it exposes the participants to social and professional connections from all around the world. Impact21 provides its students with an opportunity to experience tertiary education, where this may otherwise have been impossible or unlikely.

The program has employment partners that offer work experience and internship opportunities.

An average day in the program includes classroom time, city time and coffee breaks, supplemented with simulated work and project-based learning.

Alison says the participants “kept kicking goals” once the COVID-19 pandemic became a reality, working hard to become technically savvy and confident in using technology to stay connected to each other and learn.

While the program has experienced “massive hurdles” with COVID-19, Alison said it has given participants the opportunity to grow in other directions, using online tools and “becoming okay with the unknown; continuing to learn in a situation where we don’t have an answer to questions about its end date or about what work can recommence”.

Drawn to community service work

Growing up with a mother working in a range of roles within the disability support sector was hugely influential for Alison, who says her upbringing was “very comfortable with all different kinds of people and the context of disability work.”

While she was studying education, Alison provided in-home support for a young boy with disabilities before moving in to respite services. She gravitates towards working with “older young people” – those in their teens, twenties and thirties.

The students Alison works with want to live their life, go out, have fun, have partners, learn and work. Through the program they are growing their communication skills and confidence.

Alison wants to see a disruption in community perceptions around Down syndrome so that young people like those she works with can experience everyday life like other people their age. Some of her favourite moments have been seeing her students confidently blending in among peak-time commuters on Flinders Street, preparing and serving cocktails at e.motion21’s 10th anniversary gala, or be approached for assistance without hesitancy by shoppers.

Portable long service

Alison says the Portable Long Service Benefits Scheme offers people in the sector security that they haven’t had previously and hopes it will attract young people and youthful ideas to the sector while also giving more experienced people the chance to take a break.

“So much of what I know and believe and advocate for, I’ve learned through having had lots of experiences in different organisations, with different leaders, values and approaches. There is so much to learn by moving around organisations but continuing to service that world.

If portable long service gives people the incentive to feel safe and try different organisations and practices while growing and developing in their role, I can’t see any negative.”

Event with Members of Parliament

At the start of the year the Authority hosted Steve Dimopoulos, Parliamentary Secretary to the Treasurer; and Maree Edwards, Deputy Speaker for the Legislative Assembly and local Member of Parliament for Bendigo West.

The Ministerial Event gave the Authority the opportunity to present the new scheme and provide our visitors with an overview of the system and employer experience.

ISSA Cleaning and Hygiene Expo 2019

In October 2019, Authority staff represented the scheme at the ISSA Cleaning and Hygiene Expo.

Held at the Melbourne Convention and Exhibition Centre and hosted by ISSA - The Worldwide Cleaning Industry Association and Interpoint Events, the expo showcased cleaning products and services from local and international exhibitors.

The Authority partnered with QLeave, our Queensland counterpart, to take part in the expo. It was a great opportunity for our Customer Service and Education Officers to meet key players in the industry and provide information about the Portable Long Service Benefits Scheme to stakeholders and employers.

First Staff Recognition Awards

In October, the team came together for an afternoon tea following the Governing Board Meetings, where some of the other Board Members joined us to celebrate the contributions made by our team since the establishment of the Authority.

There were a large number of nominees for Staff Awards, with each one having gone ‘above and beyond’ in pursuit of the Authority’s values.

Customer Service and Education Officers Deb Danahay, Karl Quast and Maxine Rae received awards for their combined willingness to get the job done, knowledge of the scheme and outstanding stakeholder interactions.

International Women’s Day

In March, Authority staff had the opportunity to attend the International Women’s Day Dinner, hosted by the Zonta Club of Bendigo and held at the Conservatory in Bendigo.

The event’s keynote speaker was Dr Airlie Chapman, who holds a PhD in Aeronautics & Astronautics from the University of Washington.

Dr Chapman is a LÓREAL – UNESCO Women in Science Fellow and a strong advocate for Science, Technology, Engineering and Mathematics (STEM) education and has a special interest in underrepresented groups such as women and students in rural and remote areas. She currently lectures in Mechatronics at the University of Melbourne, where she is also the director of their Flight Lab.

Dr Chapman devoted most of her speech to sharing her journey in STEM, and advocating for the promotion of careers in STEM

Zonta International is a leading global organization of professionals empowering women worldwide through service and advocacy. The organisation has over 30,000 members in more than 1,200 clubs across 66 countries

COVID-19 response

As it did with all businesses, the COVID-19 pandemic has presented many challenges for the Portable Long Service Authority.

In March 2020, a Continuity Leadership Team was established to plan and implement the Authority’s response to the pandemic. This team facilitated the successful move to remote working arrangements quickly and efficiently, while also implementing the crisis communications procedure and operational procedures to minimise investment risk in a volatile market caused by the pandemic.

During the last quarter of the year, the Authority found itself well positioned to enable operations to continue with minimal interruption; our staff and systems remaining operational, agile and responsive.

Our Customer Service and Education Officers have been able to continue providing valuable advice and have even delivered online training sessions for employers for how to complete quarterly returns.

Remote working life

The shared tea station at customer service officer Sheree Laursen’s home office.

Following advice that if Victorian Public Service employees could work from home, they must work from home, authority staff worked together in a new way, giving us all a glimpse into each other’s lives that we hadn’t had before.

Q&A with Khayshie Tilak Ramesh

Khayshie Tilak Ramesh was employed as a graduate in the Authority’s legal function where she provides support to our in-house legal team while working towards her admission as a lawyer.

Tell us a bit about yourself and how you came to work for the Authority?

I am 23 and a passionate community volunteer and advocate for youth, regional and multicultural issues. I have served on a number of boards and committees including ARC Justice, Ambulance Victoria Community Advisory Committee, Loddon Campaspe Multicultural Services and City of Greater Bendigo Economic Steering Committee. I also served as the first Youth Mayor for the City of Greater Bendigo in 2019, Law Student of the Year 2019, Young Citizen of the Year in 2017 and was named in the Top 100 future leaders of Australia. As well as my position at the Authority, I am also the Multicultural Youth Commissioner of Victoria.

I studied law in La Trobe University and was in my final honours year when the Authority started in Bendigo in 2019. I was passionate about the social justice element of long service portability and applied for a position within the legal and governance team, combining my love of law and community boards. I was extremely fortunate to be selected and am now working in my ideal job as a graduate.

What attracted you to the public service?

I was attracted to the public service because of the immense career progression opportunities and the chance to work within multidisciplinary teams where you get to experience a bit of everything and really appreciate the work of your co-workers.

What attracted you to law?

I like the educational side of law and increasing access to justice through making legal obligations more accessible to the wider community. It baffles me that we are bound by laws which we don’t always understand so I enjoy increasing that wider understanding by translating complex concepts into simpler ones. I also love problem solving and tackling new challenges every day which I am lucky to do in my role at the Authority.

What do you enjoy most about working for the Authority?

My favourite thing about working for the Authority is the diversity of staff backgrounds! A lot of our staff are not from government backgrounds so it’s always fun to hear about what industries they came from and their past experiences on lunch breaks.

What has surprised you most about working for the Authority?

That the heart of the Authority is in Bendigo. All too often I’ve seen organisations claim to have a regional centre but then their head office is in Melbourne but the Authority is well and truly grounded here. I grew up in Bendigo and love my local community so it meant so much to me that I could continue my career progression in my ideal job within my hometown.

What might someone be surprised to know about you?

I am an avid self-taught musician in my spare time! I sing and play acoustic guitar, piano and ukulele. I also got a bit bored in self-isolation and took up electric guitar and kalimba.

State of the sectors

Observations are based on information the PLSA currently has on its active Employer and Worker’s Registers as at 30 June 2020.

Community Services

  • the most common location for registered employers is the Melbourne CBD
  • South Cranbourne is the most common location for registered workers to live
  • average 3.1 hours in a working day*
  • $35.69 is the median hourly rate for registered workers
  • majority of registered workers are female

Contract Cleaning

  • the most common location for registered employers is the Melbourne CBD
  • Werribee is the most common location for registered workers to live
  • average 2.5 hours in a working day*
  • $26.24 is the median hourly rate for registered workers
  • approximately equal gender split of registered workers

Security

  • the most common location for registered employers is Melbourne CBD
  • Roxburgh Park is the most common location for registered workers to live
  • average 3.3 hours in a working day*
  • $30.73 is the median hourly rate for registered workers
  • majority of registered workers are male

* The above observations are based on information the Authority currently has on its active Employer and Worker’s Registers as at 30 June 2020. The Worker Register does not currently capture information on whether a single worker is employed in more than one covered industry; thus these figures are calculated per worker per industry.

Our performance

The Authority's financial and output performance for the 2019-20 financial year.

Departmental objectives, indicators and outputs

The Authority had one output associated performance measure within the Victorian Budget 2019-20.

The medium-term departmental objectives, associated indicators and linked outputs as set out in the 2019-20 Budget Paper No. 3 Service Delivery are shown below.

  • 2019/20 actual number of workers registered under the Portable Long Service Benefits Scheme: 114,137
  • 2019/20 target number of workers registered under the Portable Long Service Benefits Scheme: 75,000

Business Unit reports

We have built a strong foundation during our start-up phase to ensure that the Authority is operating with key processes and controls in place to administer an effective and successful portable long service benefits scheme.

Both our Governing Board and Audit and Risk Committees have been established with the appropriate supports in place to facilitate effective decision making and we have exceeded our performance targets for number of workers registered.

In addition the Governing Board approved a risk framework including setting the risk appetite for the Authority, an integrity framework guides our work to ensure that we continue to uphold public sector values and we have appointed an internal audit service provider who has executed the first year of an approved a three-year internal audit program.

The establishment of our in-house Legal function has enabled us to provide internal legal advice to support our compliance with the legislation.

We drafted and executed our Authority’s Business Continuity Policy and associated Pandemic Plan ensuring our Continuity Leadership Team could effectively transition our staff to carrying out the operations of the Authority from home. Our business was able to continue operations as normal, despite having to shift quickly to working completely online.

The experience and achievements of the past twelve months means that the Authority is well positioned to build on its strong foundations and continue to effectively advise on and administer the Scheme as it grows.

Financial Services

This year has seen the successful set up of the Authority’s business systems and bank accounts, achieved on time and without any disruptions. We have completed the Authority’s first financial statements, involving an actuarial review of the portable long service benefits entitlements, and are achieving compliance with the Standing Directions 2018 issued by the Assistant Treasurer under the Financial Management Act 1994.

The development of our investment policy and the setup of the investment portfolio with the Victorian Funds Management Corporation (VFMC) has been a significant achievement that will ensure the fund can continue to grow to support the entitlements of workers.

Another highlight of the year was the introduction of the employer reimbursement process. Through this process, employers can apply to the Authority for a reimbursement of a long service leave payment made directly to a Worker under the Long Service Leave Act 2018 or a fair work instrument. The Authority will reimburse employers for the period of service recorded with the Authority.

COVID-19 has impacted the revenue of businesses and this has resulted in several employers requesting a payment arrangement in line with the Business Support policy, however the impact to employers at this stage has been less than we initially expected.

Client Service and Operations

Over the past year we have seen an increase in awareness of the Scheme across the covered industries. We have found that the majority of employers for the Scheme are small and need assistance to fully understand their portable long service leave obligations.

Our operational procedures for pursuing, assessing and approving registration applications are working effectively, along with procedures for the submission and amendment of quarterly returns and invoice payment. Records management and complaint handling frameworks have also been designed and implemented.

We implemented a successful quality assurance pilot to review quarterly returns to ensure entitlements and levies paid were reported correctly. Accordingly, we have seen an increase in quarterly returns being lodged in a timely manner without adjustments being required.

An external compliance framework has been designed and implemented and we are finding that most employers meet their obligations once the Compliance team makes contact. As a result, only a small number of enforcement activities are progressing towards prosecution for employers who have failed to comply with the Act.

The year has also seen the continual development and improvement of processes and business systems, often through the feedback that we receive from employers and workers.

The impact of COVID-19 presented a number of challenges; however, staff were agile and responsive in adapting to a remote working environment and the impact to employers has so far not been as significant as we initially anticipated – particularly in terms of payment arrangements or businesses entering voluntary administration.

Facilities, Information and Technology

Over the past 12 months, the Authority has refined many of its processes to support and drive ongoing registrations and compliance. This has culminated in many collaborative initiatives throughout the year, such as recording “how-to” videos for our social media channels, supporting processing large returns by bulk uploads and researching and making use of online tools such as EventBrite and Vision6 to support our communications.

Highlights of the 2019-20 financial year have included the implementation of project, change, risk and issues management frameworks. The Business Unit successfully delivered the remaining establishment project deliverables, and implemented the Worker CRM 2.0 release, enabling the Authority to mature its compliance activities and enhance operational efficiency.

We have also successfully developed and tested disaster recovery of the Worker CRM platform and migrated staff from personal OneDrive storage accounts to centralised SharePoint storage which reduces risk and increases compliance and data retention practices.

COVID-19 has been a significant challenge for many businesses; however, the Authority is well-positioned with its modern architecture to continue operations with minimal interruption. By adapting systems and processes to support remote working and call centre operations, our staff and systems have remained operational throughout the pandemic.

As the Authority grows as an organisation, it is paramount that we continue investing in technology to enable effective collaboration, workflow management, case management, compliance activity, automation, and business intelligence, and continuously improve our processes to adapt to the ever-evolving needs of covered employers and eligible workers.

Flexible work practices will likely continue in some form post-COVID-19 and our systems and processes that support this will need to continue to evolve and ensure the Authority can continue to provide a high level of service.

Communications and Engagement

In the first 12 months of operation, the Authority needed to establish processes to communicate and engage with employers and eligible workers across the covered industries to ensure that employers understood their obligations and workers knew their rights under the Scheme.

One of the first initiatives was to establish an Authority site on the Victorian

Government’s Single Digital Presence (vic.gov.au). Over the year, the website attracted 71,900 unique visitors seeking information about the Scheme. We continue to work with DPC’s Single Digital Presence team to improve search engine optimisation for the Authority’s website content.

In the lead up to the first quarterly return being due in October 2019, Authority staff delivered more than 34 pop-up information sessions for stakeholders across Victoria.

Throughout the year, communications and engagement activities have sought to remain responsive to the needs of our stakeholders. This has included the development and distribution of a Guidance Note for the application of the predominance test in community services, the launch of “how-to” videos to guide employers through registration and submission of quarterly returns, and the delivery of a series of online training sessions for employers during the COVID-19 pandemic.

To ensure that Authority staff can communicate adequately with employers and workers within the Scheme, we partnered with Language Loop to provide translation and interpreter services for phone calls. Calls originating in the customer service centre can now be transferred with ease to a qualified interpreter who assists our staff with their communications and enquiries.

Throughout the year, we have distributed registration certificates to all registered employers and information packs to more than 100,000 workers registered with the Scheme, as well as sending out a fortnightly eNews to more than 3,000 subscribers.

We continue to develop our relationships with unions, peak bodies, and other key stakeholders to share messages and support communications activities.

People and Culture

During the past year, the People and Culture Business Unit has overseen the establishment of an employee reward and recognition program, led the recruitment process for several new roles and been the liaison point for other government agencies and the union for the public sector.

Other highlights have included representing the Authority through the development and consultation surrounding the Victorian Public Service’s new Enterprise Bargaining Agreement and the establishment of the Occupational Health and Safety Group.

The unit has also been responsible for coordinating the organisation’s learning and development needs.

The COVID-19 pandemic has impacted the way that our organisation operates, and the way that we view employee wellbeing. With the unprecedented disruption in both our working and personal lives, the People and Culture Business Unit has been key in delivering services to strengthen our organisation and support our people during this time. This has included more than 80 one-on-one check-in consultations with staff.

Despite the challenges faced, the past 12 months has helped our organisation build a work culture that is collegiate, effective and values-based and will serve us well into the future.

Delivering on our objectives

The Authority’s Corporate Plan 2019-20 set out the organisation’s goals, objectives and activities for its first twelve months of operations. Below is an overview of the activities contributing towards these objectives.

Fulfil our legislative obligations by effectively administering and supporting compliance with the Long Service Portability Act 2018.

2019-20 activities:

  • maunched the Worker Customer Relationship Management (CRM) system
  • monitoring and enforcing compliance
  • negotiated data sharing arrangements with state and federal regulatory agencies
  • implemented employer reimbursement
  • business Support policy in place
  • recruited an independent Audit and Risk Committee member
  • implemented online Board papers solution
  • approved an external compliance policy

Numbers:

  • 2,179 applications for registration processed (1914 employers being registered)
  • 1,363 community services employers registered
  • 347 cleaning employers registered
  • 204 security employers registered
  • 114,137 workers registered
  • 4,576 quarterly returns issued and processed (96% submission rate)
  • 8,437 calls answered
  • 12,777 outbound calls
  • 10,115 email enquiries received and responded to
  • 393 applications for prior service granted

Implement effective responsible budget and investment strategies that grow levy funds and deliver long-term sustainability.

2019-20 activities:

  • set inaugural levy rates
  • developed the Authority’s first responsible budget and reforecast
  • investment strategy developed and implemented
  • implemented operational procedures to minimise investment risk in a volatile market caused by the COVID-19 pandemic
  • appointed an Actuarial Advisor as required under the Act
  • total expenditure under budget for the year

Numbers:

  • $38.8m invoiced with only $1.193 million outstanding at 30 June 2020
  • $26.2 million invested with VFMC in the Balanced Portfolio

Be clear, consistent, transparent and responsive in our stakeholder communications which encourages registration, levy payments and ensures that workers and employers are aware of their rights and obligations.

2019-20 activities:

  • developed and implemented a 2019-20 strategic communications plan
  • ran first advertising campaign in September 2019
  • detailed guidance note published to guide employer registrations
  • developed and embedded communications processes and procedures
  • developed social media channels Facebook, LinkedIn and YouTube
  • developed relationships with key stakeholders
  • launched fortnightly eNews publication
  • online employer reporting training
  • procedure for crisis communications implemented in response to COVID-19
  • partnered with Language Loop to provide translation and interpreter services for phone calls
  • increased search engine optimisation for Authority website content
  • worked with the Department of Premier and Cabinet’s Behavioural Insights team on strategies to encourage compliance with the Scheme through our messaging and communications
  • represented the Authority at events such as the ISSA Cleaning and Hygiene Expo and the regular ASIAL Stakeholder Breakfast

Numbers:

  • 573 radio advertisements
  • 105 non-English language radio spots.
  • 11,602 emails to potential employers
  • 71,938 visits to the Authority’s website (197 visits per day)
  • 3,512 eNews subscribers
  • 29 eNews editions
  • 28 meetings with employers
  • 16 meetings with peak bodies
  • 34 pop-up information sessions across Victoria

Maintain a healthy and safe workplace with a culture that encourages engaged, resilient and solution-focused staff.

2019-20 activities:

  • established a Melbourne office
  • established a Continuity Leadership Team to plan and implement the Authority’s response to the COVID-19 pandemic
  • established an OHS Committee and a Peer Support program
  • appointed First Aiders and Floor Wardens and provided required training
  • set up an Employee Assistance Program
  • received positive results from Employee Wellbeing and Remote Work survey
  • built collegiate, effective and values-based work culture
  • implemented an employee reward and recognition program
  • implemented a new recruitment system
  • completed a comprehensive performance development planning process for all staff

Numbers:

  • 100% PDPs completed
  • 1 fixed term higher duties assignment
  • 3 internal promotions (merit based)
  • 1 external secondment
  • 30 staff as at 30 June 2020
  • 84 one-on-one check is with staff during the COVID-19 pandemic.

Implement an innovative, secure, resilient and integrated information technology environment that supports effective operations now and in the future.

2019-20 activities:

  • executed a Business Continuity Policy and a Pandemic Plan
  • implemented a cyber security awareness program that tests our resilience and provides ongoing education for staff
  • undertook Amazon Web Services (AWS) Performance Monitoring of the Worker CRM to ensure vendor contract compliance
  • developed a specification with our Worker CRM vendor to remove double handling of customer information, streamline tasks and provide consistency
  • developed modern access and security practices to protect the Worker CRM and enable remote access

Numbers:

  • 151 incidents lodged and closed with Cenitex
  • 1 project managed with Cenitex

Protect the long-term interests of the Authority through effective regulation using procedure governance, strategic risk management and clear policies and procedures.

2019-20 activities:

  • developed and implemented the Corporate Plan 2019-20
  • set our vision, purpose and values
  • established a risk framework, including a risk policy, procedures and appetite
  • insurance program in place to cover insurable risks
  • developed key corporate policies and a policy framework
  • established an integrity framework
  • recruited and appointed internal auditors and established a 3-year internal audit program
  • implemented project, change, risk and issues management frameworks, and successfully delivered remaining establishment project deliverables
  • tested business continuity planning and disaster recovery processes
  • designed and established a compliance framework

Numbers:

  • 50% compliance files closed before enforcement action commenced
  • 15 eligible employers registered within two months through compliance outreach
  • 4 show cause notices issued
  • 7 Board meetings held

Financial performance

Five-year financial summary

The Authority commenced operations on 18 March 2019, therefore only one year of comparative information is available.

Table 2: Two-year financial summary

Summary 2019-20 ($’000) 2018-19 ($’000)
Total income from transactions 62,419 1,820
Total expenses from transactions 53,146 301
Net result for the period 9,273 1,519
Net cash flow from operating activities 40,387 -
Total assets 59,740 2,351
Total liabilities 48,948 832
Net assets 10,792 1,519

Current-year financial performance

The 2019-20 financial year is the Authority’s first full year of operations, having only commenced on 18 March 2019.

The Authority administers three schemes which provide portability of long service benefits for registered workers in the Community Services, Contract Cleaning and Security Industries in Victoria.

The Authority levy’s registered employers for workers in the covered industries in accordance with the Long Service Benefits Portability Act 2018 and makes payments for benefits taken.

In the 2019-20 financial year, the Authority achieved a net result for the year of a $9.3 million surplus.

Income from levy contributions from employers and contractors commenced during the year based on levy rates set by the Governing Board following an actuarial review. This was achieved through 114,137 registered workers with 1,914 registered employers completing three quarterly returns during the financial year.

The Authority commenced investing with the Victoria Funds Management Corporation (VFMC) Balanced Fund in February 2020 and transferred a total of $26.2 million during the year. Investment income totalled $0.6 million; however, this was offset by a net loss on financial instruments of $0.4 million.

A total of $6.2 million in government grants was received during the financial year to help establish the Authority.

The first long service valuation totalled $47.7 million for portable long service benefits expense.

Administration expenses totalled $5.2 million with $3.7 million relating to employee benefits expense and $1.4 million for information technology costs, office expenses, professional services, and internal and external audit fees.

Financial position balance sheet

The Authority ended the financial year with net assets of $10.8 million and a solvency ratio of 122.1%.

Cash at bank totalled $13.9 million, which included scheme funds collected and not transferred to VFMC investments and the remaining Government grants received but not spent.

The Authority has $25.7 million invested with VFMC and accrued $17.2 million for the fourth quarter employer levy contribution payable by 31 July 2020.

The Authority’s actuary calculated the first long service leave valuation which totalled

$47.7 million for portable long service benefits expense. This valuation is based on 118,345 workers at 30 June 2020 which includes the current 114,137 workers adjusted for an additional 4,208 new workers that are estimated to be included in the fourth quarter return by employers.

Operating cash flows

Net cash flow from operating activities was positive for the year totalling $40.4 million, which included $37.7 million of receipts from employers for their worker levy contributions and $6.2 million from Government to continue the establishment of the Authority.

The Authority transferred $26.2 million to the VFMC Balance Fund and purchased $0.1 million of plant and equipment, which finalised the office fit-out and IT equipment purchases.

Investment performance

The Governing Board approved the Authority’s investment strategy following workshops facilitated by VFMC based on an analysis of desired investment returns against investment risk appetite. Investment manager performance is actively monitored by management of the Authority.

The investment objectives of the Authority at 30 June 2020 are:

  • Return: To achieve an average return objective of at least CPI + 3.0% p.a. with greater than 60% probability over a rolling 10‑year period; and
  • Risk: To limit the likelihood of a negative annual return to no more than one year in every five years and when negative returns occur, for this not to exceed a 10% loss of capital on average.

Current-year investment performance

Under the Long Service Benefits Portability Act 2018, the Authority is permitted to invest Scheme assets for the benefit of the Schemes.

For the 12 months from 1 July 2019 – 30 June 2020, total unrealised investment losses for the Authority was $0.4 million against total scheme funds of $33.9 million at 30 June 2020. The $0.4 million investment losses were offset by $0.5 million of investment income received during the year. As a result, the net investment gain for the financial year was $0.1 million (or 0.5% return for the financial year). This compares with a benchmark 7.6% investment loss for Australian Equities, 4.7% investment gain for international equities and a 4.2% investment gain for Australian Bonds for the financial year.

Previous-year investment performance

The Authority did not invest any funds during the 2018-19 financial year.

Outlook

The Authority is working with its advisers to adjust portfolio positioning in response to market movements and changes to economic conditions and policy outlook of governments, which may affect key investment asset classes.

Governance and organisational structure

The Governing Board of the Authority.

The Authority is responsible to a Governing Board appointed by the Victorian Minister for Industrial Relations. The Governing Board comprises a mix of expert skills, qualifications and experience, including individuals from organisations who represent employers and workers for the three covered industries.

The directors of the Governing Board perform their duties consistent with the standards set in the Code of Conduct for Directors of Victorian Public Entities and the duties and values contained in the Public Administration Act 2004.

In accordance with the Long Service Benefits Portability Act 2018, the Governing Board:

  • sets the levy to be paid by employers and contract workers
  • is responsible for the governance, strategic planning and risk management of the Authority
  • advises the Minister on agreements for corresponding schemes across Australia and
  • may perform functions and exercise the powers of the Authority that it deems appropriate

Julius Roe, Chair

Julius’s career spans 40 years in industrial relations, including as Fair Work Commissioner from 2010 to 2017. He has been a member of the Police Registration and Services Board since 2018. Since July 2017, Julius has been working as a consultant, handling mediation in a diverse range of workplace disputes in the public and private sectors. Julius has been a leader in vocational education and training policy, including on a number of boards at both state and national level. He was National President of the Australian Manufacturing Workers Union from 2000–2010.

Claire Filson, Deputy Chair

Claire Filson has worked extensively in the financial services sector, with more than 20 years’ boardroom experience in superannuation and infrastructure businesses. Before taking a break to travel in 2010, she was a Director on the Board of Emergency Services & State Superannuation, a 150,000-member public sector superannuation fund managing $15 billion. Claire has a mix of skills spanning law, governance and risk management.

Emma King

CEO of the Victorian Council of Social Service, Emma King is a strong voice on social justice.

She has a Master’s in Industrial and Employee Relations and has worked as a policy adviser, teacher and in a range of industrial and training roles.

Emma is currently Chair of the Future Social Service Institute, President of the Farnham Street Neighbourhood Learning Centre and a Board Member with Mental Health Victoria.

Kate Marshall

National Junior Vice President of the Health Services Union, Kate Marshall joined the union in 2015 and is now the Assistant State Secretary of the Health and Community Services Union (HSU, Vic No. 2 Branch).

Before that, she was a legal officer with the Construction, Forestry, Mining and Energy Union in Victoria and Tasmania, heading the legal department to run matters before the Fair Work Commission, the Federal Court and the Federal Circuit Court. Kate was an associate in the Federal Court in Queensland, and completed her articles at Maurice Blackburn Lawyers.

Tim Piper AM

Tim Piper has been Head of the Australian Industry Group’s Victorian branch since 2002, advocating for more than 12,000 businesses in Victoria and over 60,000 across Australia. He’s had significant engagement with government at both levels. He Chairs the Industry Capability Network and sits on a number of Ministerial Committees and government bodies.

A lawyer in private practice in Australia and the UK, Tim was previously executive director of the Australian Retailers Association in Victoria.

Tim was appointed a Member of the Order of Australia (AM) in the Queen’s Birthday 2020 Honours List for significant service to industry and manufacturing, to skills training, and to multicultural youth.

Rachaell Saunders

Rachaell Saunders – founder of National Protective Services, a top Australian professional security company – is a leader in her field. She currently sits on the board of the Australian Security Industry Association, the peak body for security employers.

As CEO of National Protective Services, Saunders sets the strategic direction for the business with a focus on operations, finance, human resources, sales and marketing.

Julie Warren

In addition to her work with the Authority, Julie is also on the Board of Victorian WorkCover Authority (WorkSafe Victoria) and the Migrant Workers Centre Inc.

She has worked for more than 20 years with the National Union of Workers and has been president of the union’s Victoria branch since 2006. In that role, she has been part of a number of valuable changes in strategic direction.

Previously Julie Warren was the Senior Vice President of the Victorian Trades Hall Council and has considerable understanding of the issues and concerns that are relevant to contract industries.

Linda White

As the Australian Services Union’s assistant national secretary, Linda White is responsible for the union’s strategy in the private and community sectors and also works on the union’s growth strategy.

She coordinated the ASU’s ground-breaking Equal Pay case in the Fair Work Commission and before joining the ASU, was a senior associate at Maurice Blackburn for a decade, practising in crime, industrial law, personal injuries and criminal injuries compensation.

Joseph Yeung

Joseph Yeung is an experienced corporate governance and corporate services professional and was the chief financial officer at the Department of Premier and Cabinet from 2017 to 2019.

Before working in State Government, Joseph was an Assistant Secretary in the Civil Justice and Legal Services Division at the Commonwealth Attorney-General’s Department in Canberra. A chartered accountant and lawyer, Joseph also holds an MBA (Executive).

Audit and Risk Committee

The Audit and Risk Committee is established by the Governing Board and in accordance with the Standing Directions for the Minister for Finance (2018) under the Financial Management Act 1994 (the Standing Directions).

It provides independent assurance and advice to the Governing Board and Chief Executive Officer/Registrar on the effectiveness of the Authority’s financial management systems and controls, performance and stability, compliance with laws and regulations and risk management.

The Audit and Risk Committee comprises four members, at least one of which must be independent from the Governing Board and the Authority. The Committee is governed by a charter detailing its role and responsibilities consistent with the Standing Directions and best practice corporate governance principles.

Audit and Risk Committee Members

The Audit and Risk Committee consists of the following members:

  • Claire Filson
  • Rachaell Saunders
  • Julie Warren
  • Peter Wyatt (independent member)

The Audit and Risk Committee’s independent member, Peter Wyatt, is the Chief Financial Officer of Treasury Corporation Victoria (TCV) and has responsibility for TCV’s finance and reporting and settlements functions. Prior to joining TCV in 2006, Peter was the Chief Financial Officer of the State Superannuation Fund, having formerly held senior management roles in life insurance and financial services organisations.

Peter has a Bachelor of Business and a Graduate Diploma of Applied Finance, is a Certified Practicing Accountant, a Senior Associate of the Financial Services Institute of Australasia and a member of the Australian Institute of Company Directors (GAICD).

Organisational structure

Governing Board

  • Joseph Yeung - CEO/Registrar
  • Peter Leersen - CFO
  • Suzie Thoraval - Head of Governance and Policy
  • Ashley Pratt - Facilities and Information Technology Manager
  • Phil Waren - Operations Manager
  • Amy Gardner - Senior People and Culture Adviser
  • Bianca Stapleton - Senior Communications and Engagement Adviser

Conflicts of interest

The Authority has a Conflict of Interest Policy for the Governing Board and for employees. These policies set out obligations in relation to managing conflicts of interest.

The policies ensure that there is a clear, transparent and accountable process in place to manage actual and perceived conflicts of interest which facilitates the Authority’s compliance with section 81 of the Public Administration Act 2004 and section 45 of the Long Service Benefits Portability Act 2018 in relation to pecuniary interests.

Occupational health and safety

The Authority is committed to providing and maintaining a healthy, safe working environment for staff and visitors in accordance with the Occupational Health and Safety Act 2004 and associated regulations.

In 2019-20, we recorded:

  • nil worker injury claims
  • nil days of lost time due to injury
  • nil formal written complaints
  • nil equal opportunity, bullying or harassment complaints

OHS Committee

The Authority’s OHS Committee meets bi-monthly to discuss the health, safety and wellbeing of staff and visitors in the workplace. The committee consists of management, employees and health and safety representatives from both our Bendigo and Melbourne offices.

During the COVID-19 pandemic the committee has overseen the liaison with workers working from home to support them to undertake ergonomic self-assessments and fulfil any equipment needs.

Employment and conduct principles

The Authority is committed to applying merit and equity principles when appointing staff. The selection processes ensure that applicants are assessed and evaluated fairly and equitably on the basis of the key selection criteria and other accountabilities, without discrimination.

The Authority has introduced policies and practices that are consistent with the Victorian Public Sector Commission’s employment standards and provide for fair treatment, career opportunities and the early resolution of workplace issues. The Authority has also adopted the VPS Enterprise Agreement common policies.

Other disclosures

Other disclosures for the financial year 2019-20.

Local Jobs First

The Local Jobs First Act 2003, introduced in August 2018, brings together the Victorian Industry Participation Policy (VIPP) and Major Project Skills Guarantee (MPSG) policy which was previously administered separately.

The Authority is required to apply the Local Jobs First policy to all metropolitan Melbourne or state-wide projects valued at $3 million or more, or any regional Victoria projects valued at $1 million or more.

The Authority undertook no projects subject to the Act during the 2019-20 reporting period.

Government advertising expenditure

In 2019-20, there was one government advertising campaign with total media spend of $100,000 or greater (exclusive of GST). This advertising campaign was primarily targeted at eligible employers to raise their awareness of obligations under the Scheme. The campaign incurred a total of $160,000 (excl. GST).

Consultancy expenditure

Details of consultancies (valued at $10,000 or greater)

In 2019-20, there was one consultancy where the total fees payable to the consultants were $10,000 or greater.

The total expenditure incurred during 2019-20 in relation to these consultancies is $127,000 (excl. GST).

Details of consultancies under $10,000

In 2019-20, there were no consultancies engaged during the year, where the total fees payable to the individual consultancies was less than $10,000.

The total expenditure incurred during 2019-20 in relation to these consultancies was nil.

Information and communication technology expenditure

Information and communication technology (ICT) expenditure refers to the Authority’s costs in providing business enabling ICT services within the current reporting period.

For the 2019-20 reporting period, the Authority had a total ICT expenditure of $0.5 million. It comprises Business as Usual (BAU) ICT expenditure and Non-Business as Usual (Non-BAU) ICT expenditure. Non-BAU ICT expenditure relates to extending or enhancing the Authority’s current ICT capabilities. BAU ICT expenditure is all remaining ICT expenditure that primarily relates to ongoing activities to operate and maintain the current ICT capability.

Disclosure of major contracts

The Authority did not award any major contracts valued above $10 million or more during 2019-20.

Freedom of information

The Freedom of Information Act 1982 allows the public a right of access to documents held by the Authority.

Information about the type of material produced by the Authority is available on its website under the Part II Information Statement.

During the 2019-20 financial year, the Authority received no applications.

Access to documents may be obtained through a written request to the Freedom of Information Officer, as detailed in s17 of the Act.

Making a request

FOI requests can be lodged online at ovic.vic.gov.au. An application fee of $29.60 applies. Access charges may also be payable if the document pool is large, and the search for material time consuming.

Access to documents can also be obtained through a written request to the Authority’s Freedom of Information Officer, as detailed in s17 of the Act.

When making an FOI request, applicants should ensure requests are in writing, and clearly identify what types of material/documents are being sought.

Requests for documents in the possession of the Authority should be addressed to:

Attn: Freedom of Information Officer
Portable Long Service Benefits Authority
Level1, 56-60 King Street
Bendigo VIC 3550

Requests can also be lodged online at ovic.vic.gov.au.

Further information

Access charges may also apply once documents have been processed and a decision on access is made for example, photocopying and search and retrieval charges. Further information regarding Freedom of Information can be found at ovic.vic.gov.au.

Compliance with the Building Act 1993

The Authority does not own or control any government buildings and consequently is exempt from notifying its compliance with the building and maintenance provisions of the Building Act 1993.

The Authority met all relevant compliance provisions of the Building Act 1993 (Vic) in our building and maintenance activities during the year.

Competitive neutrality policy

The Authority does not provide services that compete with the private sector and is therefore not subject to the requirements of the Victorian Competitive Neutrality Policy or subsequent reforms.

Compliance with the Public Interest Disclosure Act 2012

The Public Interest Disclosure Act 2012 (previously known as the Protected Disclosure Act 2012) was amended by the Integrity and Accountability Legislation Amendment (Public Interest Disclosures, Oversight and Independence) Act 2019 which came into operation on 1 January 2020. The Act encourages and assists people in making disclosures of improper conduct by public officers and public bodies. The Act provides protection to people who make disclosures in accordance with the Act and establishes a system for the matters disclosed to be investigated and rectifying action to be taken.

The Authority encourages its officers and members of the public to report known or suspected incidences of improper conduct and detrimental action.

Disclosures of improper conduct or detrimental action by the Authority or any of its employees and/or officers must be made directly to the Independent Broad-based Anti-corruption Commission:

Level 1, North Tower, 459 Collins Street
Melbourne, VIC 3000
Phone: 1300 735 135
Internet: https://ibac.vic.gov.au

During the year 2019-20, there were zero assessable disclosures made by an individual to the Authority and notified to the Independent Broad-based Anti-corruption Commission.

Compliance with the Carers Recognition Act 2012

To the extent applicable, the Authority has taken all practical measures to comply with obligations under the Carers Recognition Act 2012. These include:

  • ensuring our staff have an awareness and understanding of the care relationship principles set out in the Act.
  • considering the care relationships principles set out in the Act when setting policies and providing services.
  • promoting the availability of flexible work arrangements and providing resources to effectively support this.
  • providing support to all staff through the Employee Assistance Program.
  • increasing awareness of the flexible work arrangements and special leave arrangements available to staff during the COVID-19 pandemic to support home schooling and caring responsibilities.

Compliance with the Disability Act 2006

The Authority acknowledges the importance of strengthening the rights of people with a disability. We are committed to creating and maintaining an accessible and inclusive environment for all people with a disability who come into contact with the Authority, whether as employees, stakeholders or members of the public more generally.

The Department of Premier and Cabinet developed a comprehensive Disability Action Plan 2017–20 which informs the Authority’s policies ensuring we remain responsive to the needs of people with a disability.

Office-based environmental impacts

The Authority’s two offices maximise natural light, with electronics, lighting and heating and cooling turned off each evening.

Staff are encouraged to avoid printing where possible and senior staff members have been provided with devices to assist with this initiative.

In addition, the implementation of “Follow Me” printing allows us to undertake usage reporting, apply print policies organisation-wide and solve mobile printing issues while also reducing waste, saving on average, 30% of wasted print jobs sent by mistake.

All office waste systems across both of our locations are segregated, reducing the amount of recyclable material directed to landfill.

Authority staff are strongly encouraged to adopt “green commuting” through active or public transport when undertaking business activities, particularly when travelling between our Bendigo and Melbourne locations.

Subsequent events

There are no post balance date events that materially affect the Authority’s 2019-20 financial statements.

Additional information

The Authority’s published reports and documents are available online at the PLSA homepage.

Any relevant information in relation to the financial year is retained by the Accountable Officer and is available on request subject to the provisions of the Freedom of Information Act 1982.

Attestation for financial management compliance with Standing Direction 5.1.4

Portable Long Service Authority Financial Management Compliance Attestation Statement

I Julius Roe, on behalf of the Responsible Body, certify that the Portable Long Service Authority has no Material Compliance Deficiency with respect to the applicable Standing Directions under the Financial Management Act 1994 and Instructions.

_______________________________________________
Julius Roe
Chair, Governing Board
Portable Long Service Benefits Authority

Financial statements

Financial statements for the financial year ended 30 June 2020.

Statutory certification

We certify that the attached financial statements for the Portable Long Service Benefits Authority have been prepared in accordance with Direction 5.2 of the Standing Directions of the Minister for Finance under the Financial Management Act 1994, applicable Financial Reporting Directions, Australian Accounting Standards including interpretations, and other mandatory professional reporting requirements.

We further state that, in our opinions, the information set out in the Comprehensive Operating Statement, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and the accompanying notes, presents fairly the financial transactions during the financial year ended 30 June 2020 and the financial position of the Authority as at 30 June 2020.

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

We authorise the attached financial statements for issue on 18 August 2020.

_______________________________________________
Julius Roe
Chair
Portable Long Service Benefits Authority

_______________________________________________
Joseph Yeung
Chief Executive Officer and Regulator
Portable Long Service Benefits Authority

_______________________________________________
Peter Leersen
Chief Financial Officer
Portable Long Service Benefits Authority

Understanding the financial statements

Comprehensive operating statement

The comprehensive operating statement measures our performance over the year and shows if a surplus or deficit has been made in delivering our services. The statement includes all sources of income less all expenses incurred in earning that income.

For the year ending 30 June 2020, the Authority made a net profit of $9.3 million.

Balance sheet

The balance sheet sets out our net accumulated financial worth at the end of the financial year. It shows the assets we own as well as liabilities or claims against those assets.

Both assets and liabilities are expressed as current or non-current. Current assets or current liabilities are expected to be converted to cash receipts or outlays within the next twelve months. Non-current assets or liabilities are longer-term.

Equity is our reserves and accumulated profits that have been reinvested in the Authority over the year.

Statement of changes in equity

The statement of changes in equity shows the changes in equity from last year to this year.

The total overall change in equity during a financial year comprises the net result for the year.

Cash flow statement

The cash flow statement summarises our cash receipts and payments for the financial year and the net cash position at the end of the year. It differs from the comprehensive operating statement in that it excludes non-cash expenses such as the accruals taken into account in the comprehensive operating statement.

For the year ending 30 June 2020, the Authority had net cash flow from operating activities of $40.4 million.

Notes to the accounts

The notes to the accounts provide further information about how the financial statements are prepared as well as additional information and detail about specific items within them.

The notes also describe any changes to accounting standards, policy or legislation that may affect the way the statements are prepared. Information in the Notes is particularly helpful if there has been a significant change from the previous year’s comparative figures.

Statutory certificate and Independent Auditor’s Report

These provide the reader with a written undertaking that the Financial Statements fairly represent the Authority’s financial position and performance for 2019-20. The Report from the Auditor General provides an independent view and outlines any issues of concern.

Comprehensive operating statement

For the financial year ended 30 June 2020 Notes 2020 ($'000) 2019 ($'000)
Income from transactions
Government grants 2.2.2 6,236 1,820
Contributions from employers and contractors 2.2.1 55,997 -
Investment income 2.2.3 571 -
Interest 33 -
Net loss on financial instruments 4.2.1 (418) -
Total income from transactions 62,419 1,820
Expenses from transactions
Employee benefits expense 3.3.1 3,740 168
Portable long service benefits expense 3.4.1 47,684 -
Administration expense 3.2 1,444 133
Interest expense 6.2.2 15 -
Depreciation 4.1.2, 6.2.2 263 -
Total expenses from transactions 53,146 301
Net result from transactions (net operating balance) 9,273 1,519
Net result 9,273 1,519
Comprehensive result 9,273 1,519

The accompanying notes form part of these financial statements.

Balance sheet

As at 30 June 2020 Notes 2020 ($'000) 2019 ($'000)
ASSETS
Current assets
Cash and deposits 6.3 13,959 -
Receivables 5.1 19,487 1,731
Investments and other financial assets 4.2 11,225 -
Prepayments 21 -
Total current assets 44,692 1,731
Non-current assets
Property, plant, equipment and vehicles 4.1 529 620
Investments and other financial assets 4.2 14,519 -
Total non-current assets 15,048 620
TOTAL ASSETS 59,740 2,351
LIABILITIES
Current liabilities
Trade and other payables 5.2 272 160
Employee benefits 3.3.2 424 52
Accrued portable long service benefits 3.4.2 3,123 -
Borrowings 6.1 249 221
Total current liabilities 4,068 433
Non-current liabilities
Employee benefits 3.3.2 109 -
Accrued portable long service benefits 3.4.2 44,561 -
Borrowings 6.1 210 399
Total non-current liabilities 44,880 399
TOTAL LIABILITIES 48,948 832
NET ASSETS 10,792 1,519
EQUITY
Reserves 6.5 1,782 -
Accumulated surplus 9,010 1,519

NET WORTH

10,792 1,519

The accompanying notes form part of these financial statements.

Cash flow statement

For the financial year ended 30 June 2020 Notes 2020 ($’000) 2019 ($’000)
Cash flows from operating activities
Receipts
Receipts from Government 7,379 100
Receipts from employers 37,661 -
Goods and services tax received from the ATO (i) 126 4
Total receipts 45,166 104
Payments
Payments to suppliers and employees (4,750) (104)
Payments to scheme employers and workers (29) -
Total payments (4,779) (104)
Net cash flows from / (used in) operating activities 6.3.1 40,387 -
Cash flows from investing activities
Payments for investments (26,162) -
Proceeds from sale of investments 67 -
Payments for property, plant and equipment (100) -
Net cash flows from / (used in) investing activities (26,195) -
Cash flows from financing activities
Repayment of finance lease liabilities 6.2.3 (233) -
Net cash flows from / (used in) financing activities (233) -
Net increase in cash and cash equivalents 13,959 -
Cash and cash equivalents at the beginning of the financial year - -
Cash and cash equivalents at end of financial year 6.3 13,959 -

The accompanying notes form part of these financial statements.

(i) Goods and Services Tax paid to the Australian Taxation Office is presented on a net basis.

Statement of changes in equity

For the financial year ended 30 June 2020 Notes Reserves ($’000) Accumulated surplus ($’000) Total ($’000)
Balance at 1 July 2018 - - -
Net result for the year - 1,519 1,519
Transfer to reserves - - -
Balance at 30 June 2019 - 1,519 1,519
Net result for the year - 9,273 9,273
Transfer to reserves 1,782 (1,782) -
Balance at 30 June 2020 1,782 9,010 10,792

The accompanying notes form part of these financial statements.