The Portable Long Service Benefits Authority (the Authority) is an independent statutory body established to administer the Long Service Benefits Portability Act 2018 (the Act). The Act, together with the Long Service Benefits Portability Regulations 2020, provide a scheme for the portability of long service benefits to covered workers in the community services, contract cleaning and security industries.

The Portable Long Service Benefits Scheme (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 covered 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.

Since the Scheme commenced in 2019, the Authority has grown to become one of the largest portable long service leave schemes in Australia. As well as managing the registration of employers and workers, the Authority oversees investment funds created by a levy on employers for the future portable long service leave entitlements of covered workers.

The Authority continues to engage with key stakeholders, which includes educating employers about their obligations under the Act. That education process is reinforced with investigative and enforcement powers prescribed in the legislation, notably to ensure covered workers are registered with the Authority by their employer. The issue of under registration of workers by employers will continue to be addressed and is a key priority for the Authority.

There is also an undertaking to continue educating workers about their rights under the Scheme. With a greater understanding, workers will be more empowered to question their employers about their eligibility for registration and manage their details with the Authority.

Vision

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

Purpose

The Authority administers 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 adheres to 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

On behalf of the Governing Board, we are pleased to present the Annual Report of the Portable Long Service Authority for the financial year ended 30 June 2023.

The Authority, which manages the Portable Long Service Benefits Scheme for the community services, contract cleaning and security sectors, is one of the largest portable long service leave schemes in Australia with over 3,000 registered employers and 290,000 registered workers. Victorian employers have embraced the Scheme as a way of attracting and retaining staff in a competitive labour market.

The Authority is also an investment manager of over $300 million in Scheme assets used to fund the future long service leave entitlements of registered workers. We are pleased to report the Scheme's investment return for the 2022-23 financial year was 9.51%, with an average solvency ratio for the three Schemes being 105.3%.

The 2022-23 financial year was a busy year, and this Annual Report highlights the breadth of the positive achievements that have been delivered by the Authority.

The Authority is an independent statutory authority and public sector body that adheres to the Victorian Public Sector Values.

During the financial year, the Authority continued to focus its work on delivering a quality Scheme whether this was through communicating with employers and workers; or processing quarterly returns or other requests; or safeguarding and managing the Scheme's investments and Treasury operations.

Looking forward, the Authority has recently released its 2023-26 Corporate Plan, which outlines the strategic priorities that have been endorsed by the Governing Board. Central to these priorities will not only be the continued education of employers and workers on how the Scheme operates, but also the commencement of enforcement action against those residual employers that have failed to register with the Authority or are under-registering their workers and therefore depriving them of their legal entitlements.

We are reviewing our processes to ensure they are efficient and fit for purpose in readiness for the expected increase in benefit claims over the next few years.

Lastly, in presenting this Annual Report, we want to acknowledge the Authority's staff for their hard work and commitment during what has been another challenging 12 months. The Board is proud to lead the Authority and its cohort of professional and resilient staff, who have adapted to the constant change that is now expected of any mature workforce following the COVID-19 pandemic.

Together with all stakeholders, the Authority remains committed to delivering a quality Portable Long Service Benefits Scheme to protect the benefits of those who are entitled to them.

Julius Roe
Chair, Governing Board

Joseph Yeung
Chief Executive Officer / Registrar

Three thousand reasons why many Victorian workers are getting a better deal

In March 2023 the Authority celebrated another significant milestone with 3,000 employers being registered with the Scheme.

To mark the milestone, a special event was held at the historic St KiIda Road property of Deaf Children Australia.

The reason the event was held at the Melbourne headquarters of Deaf Children Australia was in recognition of the organisation's valuable contribution to the community.

Deaf Children Australia has been supporting families with deaf or hard of hearing children since 1862. Helping more than 4,500 families and young people a year, its workers provide vital services through programs which include family camps, parent mentoring, and learn to drive classes.

Deaf Children Australia has also launched Australia's first nationally endorsed swimming program for deaf and hard of hearing children, with more than 800 accredited swimming teachers instructing Puggles Swim in pools across Australia.

Another Deaf Children Australia initiative is their specialist disability employment service, Sign for Work. It delivers a tailored approach to helping people with a disability, health condition, illness and people that are deaf or hard of hearing, find and keep meaningful employment. It is currently helping over 180 Victorians and 50 people in Queensland.

Industrial Relations Minister, Tim Pallas, met with Deaf Children Australia staff at the gathering and congratulated the 3,000 Victorian employers on providing workers with a more secure financial future.

"For many workers, long service leave was something that just wasn't available to them because of the nature of their industries," said Mr Pallas.

"It's fantastic that community services workers, contract cleaners and security guards who move around in their work can qualify for benefits, just as a single-employer worker can. It's a win for the workers and for fairness," he added.

Deaf Children Australia Chief Executive Officer, David Wilson, added that "the Scheme rewards our registered staff for their contribution and dedication in helping the families of deaf and hard of hearing children."

Functions

The Authority has several key functions pursuant to the Act:

1. Administering the Scheme in the covered industries.
2. Making payments of benefits.
3. Keeping registers of employers and workers.
4. Resolving disputes as to the timing of taking long service leave.
5. Consulting other industries that may be affected by decisions made under the Act in relation to covered industries.

Independence

The Authority is an independent statutory body with an official seal.

Under the Act, the Authority may sue and be sued and acquire, hold and dispose of property.

The Authority employs staff who are Victorian Public Service (VPS) employees.

Two talented community services workers: Tom and Chris

The journey for Tom Bradford and Chris Lardner to joining Sign for Work - a subsidiary of Deaf Children Australia - followed two very different paths.

Tom had dedicated his time and energy to Melbourne's theatre and music industry. In between performances, Tom taught music and musical programs at various primary schools. Teaching and helping was something he found very rewarding.

The COVID-19 epidemic put an end to performing and teaching assignments but it gave Tom the opportunity to study Auslan full-time during the two years of lockdowns and restrictions. His new skills opened different doors. One of those was the deaf not-for-profit sector and working as a Disability Employment Consultant at Sign for Work. Tom has been at Sign for Work for nearly a year.

Tom says, "every day is different as I help deaf people to find work. I see up to six clients a day helping them upskill, search and apply for jobs or assist a client already in work maintain employment".

"I also promote our clients to employers, along with providing communication support to deaf people during job interviews, work trials and training days," he added.

Tom finds the proudest moment in his working day is when one of his clients secures a job or gains a promotion.

Chris has a more diverse work history. Firstly, in the mining industry, then as a research and development technician in the automotive industry, followed by magazine layout artist. There was another career twist as an engineering factory manager. With such a diverse jobs history, Chris settled on working in the employment services industry.

In between these career moves, Chris studied music and played in various rock bands in Adelaide. One of Chris's great loves is music, but he also takes great joy in helping people find work.

Chris recently took up the role of Disability Employment Services Manager at Sign for Work. He has worked for the organisation for 12 years and as the manager, he leads a team of consultants, such as Tom, in providing essential employment services to deaf or hard of hearing people and people with a disability.

"The role brings me immense fulfilment as I witness the positive impact we have on the lives of our clients at Sign for Work," says Chris.

"Through our collective efforts, we break down barriers, empower individuals to overcome challenges, while creating a more inclusive and accessible workforce," he added.

Before Tom and Chris joined Deaf Children Australia, they were strangers unaware of their shared love of music, but now they share a passion for helping pave a better road for people in need.

As registered workers with the Portable Long Service Authority, Tom and Chris look forward to the day they receive their financial entitlements. For Tom, the plan is to take a comedy show he has created on tour somewhere in Australia or even overseas. For Chris, it will be a well-earned holiday.

Year in Review

Variety is the spice of life

When Glenn Plover decided on a career change from a Ballarat bricklayer to pub bouncer many years ago, it was a far less sophisticated industry.

As Glenn explains, "there were no surveillance cameras in pubs, clubs and other business premises. Mobile phones didn't exist, and security staff didn't have to pass an intensive certified training course".

In other words, it was an unregulated industry with none of the modern tools available to prevent anti­-social behaviour.

After working for a security company for more than a decade, both as a security guard and co­-ordinator, Glenn decided to start his own business.

"Plover Security commenced operations with one pub and three security guards," says Glenn. "Within a few weeks, my company was providing security to virtually every pub and poker machine venue in Ballarat," he added.

Over the years, Plover Security has grown to be one of the largest providers of security services in western Victoria.

Plover Security staff say that besides the variety of work, it's being part of a team or 'one big happy family' that they really enjoy. "Security staff need to have total confidence and trust in each other when dealing with crowd situations," says Glenn.

Rowena Singleton joined Plover Security several years ago and says most of the staff love the work. Rowena says, "every shift at a pub or club involves different scenarios dependent on the varying behaviour of the patrons. You must stay alert throughout your shift".

Besides the pubs and clubs, there are also roles providing security at hospitals, large scale events such as music concerts, festivals, swap meets, protecting building sites and even personal security.

A recent country football promotion saw former AFL stars including Gary Ablett Junior, Dane Swan and David Mundy play for local clubs around Ballarat. Plover Security member Nathan Delmo had the job of minding the players Nathan says, "the main issue was dealing with very excitable and over-exuberant fans rather than troublemakers".

Glenn says some of the more unusual assignments in recent years involved guarding 10,000 head of cattle in an enormous feed lot to deter cattle thieves. On another occasion, staff were employed to keep a 24-hour watch over tens of thousands of chickens housed in giant sheds for several months due to threats.

Glenn believes it's just part of the rich tapestry of security work in country Victoria.

Plover Security has more than 130 security personnel registered with the Authority.

Glenn fully supports the Scheme as he understands the casual and ad hoc nature of the security industry. He respects his staff, treating them as family members and wants every worker who should be covered to enjoy portable long service benefits.

The greatest challenge facing his business is rising costs, but Glenn believes if you offer the best security service available in western Victoria, people will continue to come knocking on his door.

Business Units

Finance

The Finance business unit underpins the Authority's operations whilst the Head of Finance has specific responsibilities under the Financial Management Act 1994. Performance monitoring, responsible budgeting and a robust investment strategy ensures that the entitlements of registered workers are managed prudently and helps to ensure the sustainability of the Scheme.

Operations

Customer Service and Education

The Customer Service and Education team delivers the core registry and Scheme administration functions by responding to queries from workers and employers, assisting employers to apply for registration, assessing and determining registration applications along with submission and review of quarterly returns. During the next three years, the team will expand to include the processing of claims from workers who have accrued seven years of service.

Compliance and Enforcement

The Compliance and Enforcement team is responsible for ensuring compliance across the Authority's key compliance and enforcement areas, including pursuing employers who have failed to register, submit quarterly returns and/or pay levies.

The team applies strategic risk-based, intelligence-led principles to implement an effective and proportionate compliance and enforcement program to ensure all employers comply with the Scheme.

Research and Engagement

The Research and Engagement team undertakes research and provides data analysis support to inform the Authority's activities and implement a range of education and engagement initiatives to grow employer and worker registration.

Legal, Governance and Secretariat

Legal

Supports the Authority by providing practical legal advice that advances the Authority's objectives whilst being consistent with the law and regulatory environment. The unit provides both in-house commercial legal advice in conjunction with advice on the Authority's regulatory obligations.

Governance

Responsible for establishing good governance, including an integrity framework, ensuring comprehensive risk management practices, corporate planning and project management.

Secretariat

Supports and facilitates the efficient and effective running of the Governing Board, Audit and Risk Committee and relevant sub-committees established from time to time.

Facilities and Information Technology

Facilities

Manages the Authority's accommodation and other fixed asset leases, as well as supporting infrastructure, including telephony systems and the Authority facilities.

Information Technology

Ensures the Authority operates to its full potential by providing quality IT support, including IT security and records management to business units and staff, as well as providing management of the Authority's external portal for employers and workers.

Communications and Engagement

Leads communications and engagement with internal and external stakeholders to ensure that employers understand and are meeting their obligations. The Communications and Engagement business unit also leads the communications strategy to workers so they are aware of their rights, and engage with the Authority through communication channels such as the website and portal.

People and Culture

Supports the growth and development of the Authority's staff by helping create a safe and welcoming work environment. The business unit empowers staff to thrive and drive a positive culture but is also responsible for ensuring that the Authority has a robust performance development and performance management framework.

Empowering Indigenous consumers

ICAN Learn is a registered employer with the Authority accomplishing great deeds for First Nations people. As a social enterprise with an office in Bendigo, ICAN Learn is a division of the Indigenous Consumer Assistance Network (ICAN).

ICAN is Australia's only First Nations consumer targeted organisation that provides both financial counselling and consumer advocacy assistance. ICAN Learn was established in 2017 to support the development of First Nations people in the sector.

ICAN Learn runs training courses for both First Nations and non-First Nations people that concentrate on community services and financial counselling. The aim for ICAN Learn students after graduation is to provide support and counselling to communities struggling with financial vulnerability and other related community service issues.

Bendigo ICAN Learn Executive Officer, Tracey McCurdy, says, "First Nations people are over­-represented amongst financially vulnerable Australians."

A 2019 study¹ identified that half of the First Nations population is experiencing financial stress compared to one in ten in the broader Australian population "This is often caused by challenges in accessing financial services due to distance, language barriers and the cost of access to services," Tracey added.

Since its inception just six years ago, ICAN Learn has supported more than 200 First Nations people to undertake financial wellbeing and community service sector training.

ICAN Learn is based in Bendigo as the organisation has strong industry connections with the region and across Victoria. Courses are conducted in Bendigo, with training delivered nationally online, along with face-to-face sessions.

ICAN Learn has about 20 workers registered with the Authority and uses the Scheme as an added incentive to attract and retain staff. "We include our registration with the Authority in our job advertisements," says Tracey.

The future for ICAN Learn is to train and educate more First Nations people who can then go out and support their communities.

¹Weier, M et al, Money Stories: Financial Resilience Among Aboriginal and Torres Strait Islander Australians (2019)

Objectives

The Authority's primary objectives are to:

• Fulfil our legislative obligations by effectively administering the Long Service Benefits Portability Act 2018.
• Implement effective, responsible budget and 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 covered 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-focussed 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 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 Act, 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
• may perform functions and exercise the powers of the Authority that it deems appropriate.

Governing Board

Julius Roe, Chair

Julius Roe's career spans 40 years in industrial relations, including as a Fair Work Commissioner from 2010 to 2017.

He is currently a member of the Police Registration and Services Board and, since 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 various 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, Claire was a Director on the Board of Emergency Services and 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 and is currently a director of Greater Western Water and Redundancy Payment Central Fund Limited, and the Deputy Chair of the Port of Hastings Development Corporation and the Indigenous Land & Sea Corporation.

Emma King OAM

During this financial year, Emma King was CEO and Company Secretary of the Victorian Council of Social Service. Emma is a strong voice on social justice, has a Masters in Industrial and Employee Relations and has worked as a policy adviser, teacher and in a range of industrial and training roles.

Emma is also a member of the Victorian Skills Authority and the Chair of the Farnham Street Neighbourhood House Learning Centre. Emma received a Medal of the Order of Australia (OAM) in the King's Birthday 2023 Honours List for services to the community through social welfare organisations.

Tim Piper AM

Tim Piper is the Head of the Australian Industry Group's Victorian branch, advocating for more than 12,000 businesses in Victoria and over 60,000 across Australia. He has had significant engagement with government at all levels. He chairs the Industry Capability Network, is deputy Chair of the Rail Industry Advisory Council and sits on a number of Ministerial Committees and government bodies. During the financial year he was also on the Board and a Director at GS1 and ColNVEST.

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

RachaelI Saunders is founder and CEO of National Protective Services a leading national security organisation that specialises in both protective services and electronic security. Having founded the organisation in 1988 Rachaell has an extensive career within the security industry.

Rachaell has various qualifications in marketing, international business, risk management, security and business. As CEO of National Protective Services, she sets the strategic direction for the business with focus on operations, finance, human resources, sales and marketing.

RachaelI has been on the board of the Australian Security Industry Association Limited (ASIAL) the peak body for security employers for several years and is currently Vice President.

Lisa Darmanin

Lisa Darmanin is the current Secretary of the Australian Services Union (Victorian and Tasmanian Authorities and Services Branch). The ASU leads advocacy and campaigning across social and community services, local government, and the public sector.

In 2016, Lisa was inducted into the Victorian Honour Roll for Women in recognition of her significant contribution to the Victorian community, specifically in achieving gender equity for women. Lisa has extensive board experience and is currently Chair of Vision Super, Board Director of the Australian Institute of Superannuation Trustees, and the Trust for Nature, as well as a Shareholder Representative of the IFM Shareholder Advisory Board.

Elisa Dickenson

Elisa Dickenson is Senior Industrial Officer of the Health and Community Services Union (Health Services Union, Vic No. 2 Branch) and has been at the union since 2015. She leads the industrial team at the union and represents members working in disability and mental health.

She holds a Bachelor of Arts/Laws degree and has extensive legal and advocacy experience. Prior to working at the union, she was a Senior Criminal Solicitor at the Victorian Aboriginal Legal Service and regularly appeared in the Magistrates' Court across Victoria.

Julie Warren

In addition to her work with the Authority, Julie Warren is also on the Board of Victorian WorkCover Authority (WorkSafe Victoria).

She has worked for more than 20 years with the National Union of Workers and was president of the union's Victoria branch for 13 years. In that role, she has been part of a number of valuable changes in strategic direction. Previously Julie 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.

Joseph Yeung

Joseph Yeung is an experienced government Senior Executive and was previously 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).

As Registrar, Joseph is a non-voting member of the Governing Board.

As Chief Executive Officer, Joseph is responsible for the day-to-day management of the Authority and its operations.

The following table indicates Director attendance at Governing Board meetings for the Authority.

Table 2: Director attendance at Governing Board meetings

*Noting that Lisa Darmanin is a new Director appointed on 1 September 2022.

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. 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)

Peter Wyatt

Independent Member - Audit and Risk Committee

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, 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, and a member of the Australian Institute of Company Directors (GAICD).

The following table indicates committee member attendance at Governing Board meetings for the Authority.

Table 3: Attendance at Audit and Risk Committee meetings

*Noting that Julie Warren has departed the Audit and Risk Committee on 1 September 2022.

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 Act in relation to pecuniary interests.

Occupational Health and Safety

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

OH&S Committee

The Authority's OH&S 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.

Workforce Data

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. Employees have been correctly classified in workforce data collections.

Public sector values and employment principles

The Authority maintains policies and practices that are consistent with the Victorian Public Sector Commission's employment standards for the application of the Public Administration Act 2004 employment principles and provide for fair treatment, career opportunities and the early resolution of workplace issues. The Authority has advised its employees on how to avoid conflicts of interest, how to respond to offers of gifts, and how it deals with misconduct.

Comparative workforce data

The following table discloses the head count and full-time equivalent (FTE) of all Authority employees employed in the last full pay period in June 2023, and in the last full pay period in June 2022 of the previous reporting period.

The following table discloses the annualised total salary for senior employees of the Authority, categorised by classification. The salary amount is reported as the full-time annualised salary.

Table 4: Annualised total salary for executives and other senior-non-executive staff

Local Jobs First

The Local Jobs First Act 2003, introduced in August 2018, brings together the Victorian Industry Participation Policy and Major Project Skills Guarantee, which were 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 2022-23 reporting period.

Government advertising expenditure

In 2022-23 there were no government advertising campaigns with total media spend of $10,000 or greater (exclusive of GST).

Consultancy expenditure

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

In 2022-23, there were two consultancies where the total fees payable to the consultants were $10,000 or greater. 

The total expenditure incurred during 2022-23 in relation to this consultancy is $11,000 (excl. GST).

Table 5: Details of consultancies (valued at $10,000 or greater)

Details of consultancies under $10,000

In 2022-23, there was one consultancy engaged during the year, where the total fees payable to the individual consultancy was less than $10,000.

The total expenditure incurred during 2022-23 in relation to this consultancy was $8,000 (excl. GST).

Information and communication technology expenditure

Details of information and communication technology (ICT) expenditure.

For the 2022-23 reporting period, the Authority had a total ICT expenditure of $0.764m, with details shown below.

Table 6: ICT expenditure ($ thousand)

ICT expenditure refers to the Authority's costs in providing business enabling ICT services within the current reporting period. 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 2022-23.

Freedom of information

The Freedom of Information Act 1982 (the FOI Act) 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 2022-23 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 section 17 of the FOI Act.

Making a request

Access to documents can be made by a written request to the Authority's Freedom of Information Officer.

When making a Freedom of Information request, applicants should ensure requests are in writing and clearly identify the documents being sought.

Requests for documents in possession of the Authority can be made via email to foi@plsa.vic.gov.au(opens in a new window) or by mail to:

Attention: Freedom of Information Officer  
Portable Long Service Authority  
PO Box 443  
Bendigo VIC 3552

An application fee of $31.80 applies.

Further information

Access charges may also apply once documents have been processed and a decision on access is made, such as but not limited to photocopying, search and retrieval charges. Further information regarding Freedom of Information can be found at ovic.vic.gov.au/freedom-of-information/(opens in a new window).

Compliance with the Building Act 1993 (Vic)

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 (Vic).

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 Disclosures Act 2012

The Public Interest Disclosures Act 2012 (the PID Act) encourages and assists people in making disclosures of improper conduct by public officers and public bodies. The PID Act provides protection to people who make disclosures in accordance with the PID Act and establishes a system for the matters disclosed to be investigated.

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(opens in a new window)  
Internet: www.ibac.vic.gov.au(opens in a new window)

Table 7: Disclosures under the Public Interest Disclosures Act 2012

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 (the CR Act). These include:

• ensuring our staff have an awareness and understanding of the care relationship principles set out in the CR Act.
• considering the care relationships principles set out in the CR 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 Access and Inclusion Plan 2021-25 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, in Bendigo and Melbourne, maximise natural light, with electronics, lighting, heating and cooling switched off each evening.

The Galkangu Bendigo GovHub is highlighted by a major environmentally sustainable design feature. It is Victoria's largest timber frame office building, along with containing efficient indoor air quality systems, solar panels, water and energy monitoring systems.

Staff are encouraged to avoid printing where possible and senior staff members have been provided with portable devices to assist with this initiative. In addition, the Authority utilises "Follow Me" printing which 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 our two 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 as well as a higher percentage of meetings being conducted via video conferencing where possible to reduce unnecessary or excessive travel.

The Authority committed to and phased out single-use plastics in its offices. This is in line with the Authority's recognition of the importance of reducing our impact on the environment.

Subsequent events

There are no post balance date events that materially affect the Authority's 2022-23 financial statements.

Additional information

The Authority's published reports and documents are available online at plsa.vic.gov.au.

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 FOI Act.

Attestation for financial management compliance with Standing Directions 5.1.4

Portable Long Service Benefits Authority Financial Management Compliance Attestation Statement

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

Asset Management Accountability Framework (AMAF) maturity assessment

The following sections summarise the Authority's assessment of maturity against the requirements of the Asset Management Accountability Framework (AMAF). The AMAF is a non-prescriptive, devolved accountability model of asset management that requires compliance with 41 mandatory requirements. These requirements can be found on the Department of Treasury and Finance (DTF) website (dtf.vic.govau/infrastructure-investment/asset­ management-accountability-framework(opens in a new window)).

The Authority's target maturity rating is 'competence', meaning systems and processes are fully in place, consistently applied and systematically meet the AMAF requirement, including a continuous improvement process to expand system performance above AMAF minimum requirements.

The Authority has assessed requirements 3 and 10 as not applicable.

Leadership and Accountability (requirements 1-19)

The Authority has met its target maturity level in this category.

Planning (requirements 20-23)

The Authority has met its target maturity level in the category.

Acquisition (requirements 24 and 25)

The Authority has met its target maturity level in this category.

Operation (requirements 26-40)

The Authority has met its target maturity level in this category.

Disposal (requirement 41)

The Authority has met its target maturity level in this category.

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 financial year ending 30 June 2023, the net gain of the Authority was $17.5 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 surplus that have been reinvested in the Authority over 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 2023, the Authority had net cash flow from operating activities of $115.4 million.

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.

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 to the Accounts 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 Auditor General's Report

These provide the reader with a written undertaking that the financial statements fairly represent the Authority's financial position and performance for 2022-23. The Report from the Independent Auditor provides an independent view and outlines any issues of concern.

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 Assistant Treasurer 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 opinion, the information set out in the Comprehensive Operating Statement, Balance Sheet, Cash Flow Statement, Statement of Changes in Equity and the accompanying notes, presents fairly the financial transactions during the financial year ended 30 June 2023 and the financial position of the Authority as at 30 June 2023.

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 15 August 2023.

Comprehensive operating statement

For the financial year ended 30 June 2023

The accompanying notes form part of these financial statements.

Balance sheet

As at 30 June 2023

The accompanying notes form part of these financial statements.

Cash flow statement

For the financial year ended 30 June 2023

The accompanying notes form part of these financial statements.

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

Statement of changes in equity

For the financial year ended 30 June 2023

The accompanying notes form part of these financial statements.

Business Unit Reports

Finance

The Finance business unit is a pillar of responsible financial management.

Investment funds continue to grow, with the Authority investing employer contributions with the Victorian Funds Management Corporation (VFMC). The Authority and VFMC have worked closely together to ensure that funds are invested into an appropriate portfolio to maximise returns whilst analysing risk. This comes on top of our comprehensive review of the Authority's investment policy.

The actuarial valuation process for the accrued portable long service benefit liabilities has been strengthened through the development of a new quarterly valuation methodology. Further to this, the year-end valuation process is again assisted by an additional year of data used to validate key assumptions underlying the valuation model.

The improvement of reimbursement procedures has been a bonus for employers by providing an easier administrative process.

We have also streamlined our accounts receivable processes and reviewed payroll tax to reflect our regional employer status.

In the next financial year our focus will be on creating a claims team to ensure the Authority is future claims ready. We will also be undertaking a levy review and assisting with the wider Authority strategic priorities.

Operations

The Operations business unit contains three teams: Customer Service and Education, Compliance and Enforcement and Research and Engagement.

Customer Service and Education

The team has continued to deliver on its core responsibilities of assessing employer applications for registration, as well as being the key point of contact for employers and workers.

A focus of the 2022-23 financial year was to empower the team to review complex queries involving the community services sector. The internal Refinement and Realignment project enabled the team to progress more complex cases which require a comprehensive understanding of legislative changes.

The appointment of a new Manager of Customer Service and the addition of a second team leader has supported the team to meet growing demand.

Looking ahead, we will focus on enhancing the education component for both employers and workers to ensure we obtain accurate data to safeguard worker entitlements.

Compliance and Enforcement

The Compliance and Enforcement team works with employers to ensure they meet their obligations within the parameters of the Act.

There have been significant changes to the process of assigning work to team members to give greater focus to each major work category. This has enabled prioritisation based on risk and applying compliance or enforcement actions proportionate to suspected or proven non-compliance.

The management of entities in liquidation has been refined to include greater identification at the earliest point.

The team has also redesigned formal correspondence and communications to employers, inserting behavioural insights and emphasising the consequences of non-compliance.

A key challenge in the new financial year will be the mapping of processes, workflows and a review of escalation triggers to improve the early identification of non-compliance.

Research and Engagement

The Research and Engagement team identifies employers in the covered industries who are likely to be covered for the Scheme, developing tests and evaluating the engagement processes required for converting this information into registrations.

We have developed online screening tools for each sector that inform employers if they are likely to be covered by our Scheme. These tools will be available on the Authority website next financial year.

The team continues to progress data-sharing arrangements with various agencies using the Victorian public sector Data Sharing Heads of Agreement. This work is ongoing and involves coordination among various Authority business units.

Legal, Governance and Secretariat

Legal

The Legal team provides high-level practical and strategic advice to ensure the Authority fulfills its legislative obligations to effectively administer the Act.

The team provides relevant guidance to all business units within the Authority, aiming to be proactive and strategic to allow the Authority to make informed decisions to achieve the organisation's objectives.

Collaboration with the various business units continues to be key as the Authority matures as a regulator. A highlight of this collaboration in the last 12 months has been leading the Refinement and Realignment key strategic project resulting in the Authority producing community services resources for internal and external stakeholders.

Governance

The Governance team reinforces chains of responsibility and communication in support of the Authority's goals and strategies. The team has established policies, standards and control mechanisms to enable the Authority staff to carry out their roles and responsibilities effectively.

The focus continues on our internal audit program, risk management and corporate planning.

Secretariat

The Secretariat has continued to support the Governing Board and its sub-committees by ensuring timely, professional agendas, packs and minutes and the prompt facilitation of actions arising.

Facilities and Information Technology

The Facilities and Information Technology business unit underpins the Authority's core operations and manages key vendors which support the technology infrastructure, registration system and office leases.

The team collaborates with the other business units to implement and enhance technology systems which support their operations while ensuring there are systems in place that enable the Authority to be an efficient and effective organisation.

A major highlight of the year was the relocation to Galkangu Bendigo GovHub following several years of preparations and planning. The move from the former King Street head office was successful and saw over 50 staff transition to Galkangu where they were able to immediately start work in the new building. During the relocation planning period, an internal transition working group was established to support staff and kept them updated on developments.

The business unit has continued to implement enhancements to our Formation Customer Relationship Management (F.CRM) system as well as having a key role in the planning for the introduction of a Business Process Management system establishing LEAN Six Sigma practices.

There was also an ongoing focus on security and compliance activities through a targeted security program to strengthen staff training in identifying cyber threats.

The Authority also progressed planning the implementation of a modern Public Record Office Victoria (PROV) compliant document management system. This aligned with the Digital Records and Information Management Shared Services (DRIMSS) project where we have collaborated with other Victorian Government departments to further enhance and simplify records management within the Authority.

The Authority also commenced development of our own Records Destruction Authority (RDA) which will be finalised during the 2023-24 financial year.

Communications and Engagement

The Communications and Engagement business unit continued its commitment to providing the Authority with high level internal and external communications.

A major milestone was the Authority's third birthday, with a celebration and successful media event held in the Bendigo head office. The event was hosted by Chairperson Julius Roe with guest speakers including Member for Bendigo West, Maree Edwards and Industrial Relations Victoria Deputy Secretary, Matt O'Connor.

The business unit also co-ordinated the Authority's presence at trade shows including the Community Services Expo in Melbourne along with the Security Exhibition and the Cleaning and Hygiene national conference which were both held in Sydney. It was an important opportunity to raise the Authority's profile after the impact of COVID-19 lockdowns and related travel restrictions. The Authority also took part in Victoria's Law Week by conducting online seminars, which were well received.

It was a busy year for the business unit overhauling internal communications, commencing the brand review and delivering executive media training as part of the Authority's risk preparedness program. Elsewhere, the focus continued on media opportunities, social media and the Authority's website.

The business unit also commenced a project to revise the Authority's writing style guide to support the brand review.

The Communications and Engagement business unit will continue to raise the profile of the Authority to ensure covered employers understand their obligations and seek registration whilst workers are increasingly empowered and aware of their rights under the Scheme.

People and Culture

People and Culture continued to support the Authority's workforce and contribute to a positive employee experience. The key focus for the year was supporting employee health and wellbeing and partnering with managers to build productive and empathetic teams.

The People and Culture business unit remains committed to developing managers and staff at all levels to ensure our people have the skills to achieve their work, feel supported in learning and development, as well as experience high job satisfaction.

The year saw the recruitment of key senior personnel, along with other staff through a merit-based process to ensure the best fit for our culture and organisation. Our staff also had the opportunity to undertake secondments and higher duties for their professional growth and career advancement.

We began the four-part 'Respectful Workplace' training program which all staff are participating in. The program promotes health and wellbeing awareness in the workplace, traits and development of high performing teams, robust and empathetic relationship development, and responses to challenges and embracing constructive criticism.

Authority leaders also completed the 'Thriving Through Change' session to excite and empower teams when dealing with change while driving inclusion, empathy, vulnerability and resilience through change.

People and Culture supported our new way of working with a hybrid model approach of three days in office and two days working from home to promote an improved work/life balance. Staff were encouraged to speak to their business unit leader regarding individual flexibility arrangements to meet staff needs with parenting, caring arrangements, health and wellbeing and other factors where support was needed.

Through this process we learned the importance of change management, how individuals can respond differently, as well as the importance of celebrating success and building a fun and inclusive work culture.

The challenge ahead for People and Culture is supporting the continued growth of the organisation and building a workforce that can adapt to changes and challenges as they arise.

Future focus

Looking ahead the Authority will focus on:

• Identifying the key sub-sectors where there is under-registration of employers and workers whilst using data and systems to focus on particular employers and workers.
• Implementing an effective enforcement strategy to address under-registration.
• Improving our communication with workers and ensuring that we have the ability to contact those workers when and if they change employer.

The journey to creating Ocean Mind

For many people, standing on a surf beach and watching the waves roll in provides a range of deep and calming emotions. It can be meditative, healing, and equally awe inspiring.

Rachael Parker looked at ways of harnessing nature's holistic qualities to create Ocean Mind, a charity aiming to improve the mental health and wellbeing of young people by connecting them with the sea and surfing. Ocean Mind is a registered employer with the Authority.

We spoke to Rachael Parker about her journey.

How did you come upon the idea for Ocean Mind?

"I founded the organisation based on my own personal experiences and after discovering the therapeutic benefits of surfing and being in the ocean. I recognised the potential of surfing as a means of improving mental health and wellbeing and established Ocean Mind with the aim of making surf therapy more accessible to others who may be facing similar challenges."

There is obviously a love for Victoria's Surf Coast and surfing. Was there a desire to share that love with young people?

"Absolutely. At Ocean Mind we believe the Surf Coast region and surfing have so much to offer young people, especially those who may be struggling with mental health challenges. Our goal is to share our love of the ocean and surfing in a way that promotes healing and growth for young people."

What is the most satisfying part of being involved with Ocean Mind for staff and volunteers?

"It is seeing the positive impact that our programs have on young people. Seeing our participants gain confidence, develop new skills and improve their mental health and wellbeing is incredibly rewarding."

Being based at Torquay, has it been difficult to find the right staff for the job?

"It can be challenging to find staff who are both qualified to teach surfing and equipped to work with young people with special needs. However, we have a dedicated team of staff and volunteers who are trained to work with young people of all abilities. We provide ongoing professional development to ensure that our team is equipped with the necessary skills and knowledge."

Has the NDIS Scheme been helpful in providing young people the chance to take part in your programs?

"Yes, the NDIS Scheme has been beneficial. We work closely with NDIS providers to ensure that our programs are accessible and inclusive for all participants."

Ocean Mind has about 20 workers registered with the Authority. Generally, what roles do they perform?

"Ocean Mind is made up of a diverse group of people who are passionate about surfing, mental health and helping young people. We have a range of roles, including surf instructors, mental health professionals, youth workers, and administrative staff."

Employers pay a levy to provide their registered community service workers the opportunity of a portable long service benefit. What are your views?

"I believe that the Portable Long Service Authority levy is an important investment in the wellbeing of our staff and the long-term sustainability of our programs. While it may be seen as an additional cost by some employers, we see it as an opportunity to attract and retain skilled staff in the community services sector."

What is the greatest challenge for Ocean Mind?

"One of the biggest challenges is securing funding to sustain and expand our programs. As a non­ profit organisation, we rely heavily on donations and grants to cover operational costs and provide free therapy services to individuals facing mental health and social challenges."

And the future?

"The future for Ocean Mind is to continue growing our programs, reaching more young people who can benefit from our unique blend of surfing and therapy."

Delivering on our objectives

The Authority's Corporate Plan 2020-23 sets out the Authority's short- and medium-term priorities along with its key measures for success.

Fulfil our legislative obligations by effectively administering the Long Service Benefits Portability Act 2018.

Key highlights

Customer Service and Education

• Successful review of the overdue quarterly return process resulting in a reduction in processing time with outstanding quarterly returns actioned immediately and referred directly to the Compliance and Enforcement team.
• Following an internal evaluation of information provided to the Authority by a national employer, the team completed a complex registration process, ensuring the employer understood their obligations to the Scheme. All workers received their entitlements.
• During the year, the team engaged with over 7,500 inbound calls and over 11,500 outbound calls through the call centre.
• The team delivered a community health centre project to ensure worker entitlements were recognised for their full service period.

Compliance and Enforcement

• Conducted an outreach program engaging 286 potential employers to register with the Scheme, of which 89% of employers complied.
• Issued 107 request for information notices to compel documents and information with 45% of employers complying and the remainder being actively pursued.
• Issued 23 letters of demand for overdue levy invoices, of which 43% of employers complied before further action was taken.
• Engaged 343 employers who were not meeting their obligations, resulting in 70% complying with their obligations.
• Investigations launched after workers alerted the Authority that 88 employers may have been failing to register covered staff. Subsequent employers are now declaring all covered workers and paying the correct levies.
• Engaged with 732 employers where obligations were in dispute resulting in 86% of employers complying with the remainder under investigation.

Research and Engagement

• The Research and Engagement team worked across the Authority to identify subsectors of interest and assessed a wide range of sources to develop a 'Review of Segmentation Models' for the community services, contract cleaning and security sectors. This was achieved by identifying gaps in the Authority segmentation models of its covered sectors and comparing Authority and external data in the covered sectors.
• The team commenced a CALD community engagement program, identifying individuals to participate in a series of interviews to gather information and data to support our communication initiatives.
• The team designed and implemented a stakeholder engagement process in support of the Authority's Refinement and Realignment project leading to the development of additional educational materials.

Numbers

• 290,577 workers registered
  • 190,434 in community services
  • 72,171 in contract cleaning
  • 27,972 in security
• 3,068 employers registered
  • 1,980 in community services
  • 650 in contract cleaning
  • 438 in security
• 15,713 employer quarterly returns submitted (incorporating the retrospective returns outside of this financial year due to late registration with the Scheme)
• 19,096 calls were made and received during the financial year.

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

Key highlights

• Reviewed the investment strategy to further reflect the maturity of the Authority. This included an analysis of the investment policy.
• Investment frequency moved from quarterly to monthly and distributions reinvested back into funds.
• First year of a three-year rolling internal audit review of compliance with the Standing Directions of the Assistant Treasurer. The audit did not identify any material compliance deficiencies.
• Total Authority expenditure remained prudent for the year.
• Performance reporting enhancements implemented to allow a focus on performance drivers.
• Budgeting enhancements introduced to focus on projecting future worker entitlements and funds under Authority management.
• Business unit budgets refined to ensure Authority strategy requirements can be implemented.

Numbers

• $127.2 million receipts from employers, $5.9 million outstanding on 30 June 2023 of which $0.9 million is more than 90 days overdue.
• $320.7 million invested with the Victorian Funds Management Corporation in the Balanced Fund.
• $337.7 million in cash and investments.
• $4.0 million reimbursed to employers for workers who have taken long service leave.

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.

Key highlights

• Successful stakeholder event attended by the Minister for Industrial Relations celebrating 3,000 registered employers, creating further awareness of the Authority and the Scheme.
• Social media engagement continued to grow following the establishment of our Twitter account to complement existing presence on Facebook and LinkedIn.
• External email newsletter circulation remains strong with the further development of interesting and educational content for our employer and worker audiences.
• Internal communications expanded and refined via Pulse - the Authority's intranet - to provide information and increase staff engagement.
• A comprehensive Authority brand review commenced aiming to refresh the organisation's visual design and colour palette.
• Development of both employer and worker case studies to showcase registration benefits.
• Commenced a major website review to update architecture, content and accessibility.
• Delivered media training and conducted crisis communications review.

Numbers

• 300,000+ website visits
  • 57% female and 43% male
  • Of Victorian website visits: 89% metropolitan and 11% regional
  • Worker and employer information pages generated the most traffic
• Social media engagement
  • Linkedln engagement rose by 116.7%
  • Facebook engagement rose by 9.9%
  • Twitter engagement rose by 4,800%
• Average open rate for external monthly email newsletter was 48%.

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

Key highlights

• The Authority celebrated diversity in our organisation and community by recognising significant diversity and inclusion days including National Reconciliation Week, IDAHOBIT Day, International Women's Day, R U OK Day and NAIDOC Week.
• The Cultural Champions Group - an initiative following staff feedback - has continued to grow and drive a positive and inclusive organisational culture.
• The People Matter survey is the Victorian public sector's independent employee opinion survey enabling staff to share their genuine feedback and experiences of working with the Authority. Key highlights included:
  • 83% of staff understand how their role contributes to organisational goals
  • 85% of staff feel people in their workgroup are able to bring up problems and tough issues, and that their manager models the organisation values.
• From the feedback received in the 2022-23 People Matter Action Plan, the following three key focus areas were identified:
  • Organisational strategy, team cohesion, and strengthening communication
  • Enhancing capabilities and leadership support to staff
  • Creating a respectful culture, sustaining a psychologically safe workplace, and enhancing staff mental health and wellbeing.

Numbers

• Two merit-based fixed-term higher duties assignments with eight internal promotions
• 13 staff earmarked for Peer Support Training
• 17 staff recruited
• 53 staff employed as of 30 June 2023; an increase of 6% from last financial year.

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

Key highlights

• Implemented the release and update of Formation Customer Relationship Management (F.CRM) and F.CRM V3.2 which provided the following key enhancements and features the Authority will benefit from:
  • Bulk reimbursements functionality
  • Batch customer flag processing
  • Customer audit extracts
  • Reimbursement requests via the portal
  • Penalty interest capabilities.
• Established a framework to prioritise business requests for our core systems and developed new capabilities to ensure all business units aligned to improve communication and visibility of emerging issues.
• Undertook Information and Communication Technology (ICT) asset renewal with the roll out of 31 replacement laptops as well as mobile phones whilst implementing a new Mobile Device Management platform.
• Tested all recovery procedures ensuring staff and management are well prepared for any Business Continuity events in future. It also provided an opportunity to finesse any elements after applying our plans to a real-life scenario.

Numbers

• 18 new major features for F.CRM
• 42 requests for data updates or minor system configuration changes
• 118 bug fixes
• 37 incidents lodged and closed with Cenitex
• One major project managed with Cenitex
• 258 internal ICT support interactions.

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

Key highlights

• New Board Secretary and Corporate Governance Manager appointed.
• Provided Secretariat support to the Governing Board, Audit & Risk Committee and Coverage Sub­-Committee with prompt facilitation of actions arising.
• Organised and supported Executive Leadership team strategy day.
• Improved consistency of reporting on business unit plan developments.
• Facilitated the progress of the Authority's 2023-24 strategic priorities.
• Developed the Authority's 2023-26 three-year Corporate Plan.
• Reviewed and supported the update of the Authority's risk appetite statements.
• Conducted an analysis of enterprise risk register and created relevant new enterprise risk projections.
• Governance, risk and project management support to key internal projects.
• Chaired Quarterly Risk management meetings.
• Held risk review meetings with business unit leaders.
• Facilitated the Authority's strategic internal audit program.
• Focussed on completing internal audit actions items.
• Organised Authority-wide training on integrity, fraud and corruption and gift, benefits and hospitality.
• Implemented technological solutions to track workflow and improve efficiencies within the team.
• Review of corporate policies.
• Support and advice to staff on conflict-of-interest matters.
• Refinements and new content for the Authority's internal SharePoint Governance page.

Numbers

• Seven Governing Board meetings, including one Governing Board Annual Planning Day
• Five Audit and Risk Committee meetings
• Three Board Coverage Sub-committee meetings
• One Executive Leadership team strategic planning day
• Eight internal audits completed
• 24 internal audit actions concluded
• 91% overall score on the risk maturity self-assessment.

Financial performance

Five-year financial summary

The Authority commenced operations on 18 March 2019, therefore only four full years of comparative information is available.

Table 1: Authority five-year financial summary    

Current-year financial performance

The 2022-23 financial year is the Authority's fourth full year having only commenced on 18 March 2019.

The Authority administers three schemes which provide portability of long service leave benefits for registered workers in the community services, contract cleaning and security industries in Victoria.

The Authority levies registered employers for workers in the covered industries in accordance with the Long Service Benefits Portability Act 2018 and the Portable Long Service Regulations 2020 and makes payments for benefits taken compared to a loss of $22.6 million in the previous financial year.

In the 2022-23 financial year, the Authority reported a net gain for the year of $17.5 million compared to $2.8 million net loss in 2021-22. The major driver of performance in the current year result was a gain of $14.2 million on the fair value of investments compared to a loss of $22.6 million in the previous financial year.

Levy contributions from employers and contractors based on levy rates set by the Governing Board was the largest source of income from transactions. Levy contributions increased by $13.3 million in the current year because of the increase in registered workers. There are 290,577 (228,767 2021-22) registered workers with 3,068 (2,875 2021-22) registered employers.

The Authority transferred $136.9 million to the VFMC Balanced Fund, increasing total investments to $320.7 million.

The portable long service benefit expense for 2022-23, which represents the increase in the benefits liability for workers, was $120.8 million ($93.1 million 2021-22).

Administration costs totalled $8.6 million with $6.1 million relating to employee benefits expense and $2.5 million for information technology costs, office expenses, professional services, promotion costs along with internal and external audit fees.

Financial position balance sheet

The Authority ended the financial year with net assets of $31.1 million and a Scheme solvency ratio of 105.3%.

Cash at bank totalled $17.0 million, which included Scheme funds collected and not transferred to VFMC investments.

The Authority increased the investment funds with VFMC to $320.7 million and accrued $4.1million of investment income due in July 2023.

The Authority's actuary valued the long service leave benefits for the Scheme's 290,577 registered workers as of 30 June 2023. This amounted to $350.2 million and is supported by $369.6 million in Scheme assets.

Operating cash flows

Net cash flow from operating activities was positive for the year totalling $115.4 million, which included $127.2 million of receipts from employers for their worker levy contributions.

The Authority transferred $136.9 million to VFMC Balanced Fund and received $11.3 million of investment distributions during the year.

Investment performance

The Governing Board has approved an investment strategy based on an analysis of desired investment returns against investment risk appetite.

The investment objectives of the Authority at 30 June 2023 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 not to exceed a 10% loss of capital.

The Authority exceeded its investment return objective of CPI + 3.0% p.a. with a return of 9.51% for the 2022-23 financial year.

Current-year investment performance

Under the Act, the Authority is permitted to invest Scheme assets for the benefit of the schemes.

The Authority has appointed VFMC as its investment manager and VFMC has determined the following balanced asset allocation of investments for the Authority's portfolio:

For the 12 months from 1 July 2022 - 30 June 2023, the Authority recorded a gain on fair value of investments of $14.2 million against total scheme funds of $320.7 million at 30 June 2023. The Authority received $6.8 million of investment distribution during the year.

Outlook

The Authority is continually working with its investment manager 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.