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ANNUAL REPORT2018

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Image: Owners Only Ambassadors, Brittany Taylor and Rick Hart, with retired racing animals Mynameskenny, Dynamite Dan and Falak Blues

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The Hon Paul Papalia CSC MLA

Minister for Tourism; Racing and Gaming; Small Business; Defence Issues;

Citizenship and Multicultural Interests.

In accordance with Section 61 of the Financial Management Act 2006, we

hereby submit for your information and presentation to Parliament, the

Annual Report of Racing and Wagering Western Australia for the financial year

ended 31 July 2018.

The annual report has been prepared in accordance with the provisions of

the Financial Management Act 2006 and the Racing and Wagering Western

Australia Act 2003.

_________________________ _________________________

Jeff Ovens Anthony Hasluck

Chairman RWWA Board Chairman Audit and Risk Committee

15 October 2018 15 October 2018

Statement of Compliance

For the year ended 31 July 2018

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Chapter 1: OverviewWho Are We 1

Chairman and CEO Report 3

Industry Funding 9

Western Australian Racing Overview 10

Operational Structure 12

Racing and Wagering Western Australia Board 14

Board Committees 15

Code Committees 16

Strategic Priorities 17

Future Outlook 2018/19 19

Chapter 2: Report on OperationsRacing 21

Infrastructure Grants 27

Animal Welfare 29

Racing Integrity 37

Racing Marketing and Communications 43

Wagering 49

Corporate Social Responsibility 51

People and Culture 55

Chapter 3: Disclosures and Legal ComplianceOpinion of the Auditor General 58

Certification of Financial Statements 62

Financial Statements

Statement of Comprehensive Income 63

Statement of Financial Position 64

Statement of Changes in Equity 65

Statement of Cash Flows 66

Notes to the Financial Statements 67

Certification of Key Performance Indicators 98

Performance Management Framework 99

Key Performance Indicators 100

Other Financial Disclosures 104

Governance Disclosures 106

Other Legal Requirements 109

Government Policy Requirements 110

Contents

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Image: Owners Only Ambassador Brittany Taylor and retired race horse Falak Blues

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Our Brands Purpose

To provide a sustainable future for the Western Australian

racing industry.

VisionTo be a national leader in racing and wagering entertainment.

Values• Enthusiasm and Pride

• Achievement

• ‘Real’ationships

• Team Play

• Honesty

About Us

RWWA’s Charter under the Racing and Wagering Western

Australia Act 2003 is to foster development, promote the

welfare and ensure the integrity of metropolitan and country

thoroughbred, harness and greyhound racing in the interests

of the long-term viability of the racing industry in Western

Australia. RWWA also has responsibility for the off-course

wagering functions trading as the TAB. The organisation

cover approximately 54,000 races per year spread across

the three codes, supporting more than 330 TAB retail outlets

across Western Australia.

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We are pleased to present the 2017/18

Annual Report for Racing and Wagering

Western Australia (RWWA).

RWWA continues to perform its role as

the Principal Racing Authority (PRA) for all

three codes of racing in Western Australia

and as the operator of the WA TAB.

Historically, the sport of Racing has

been a favourite pastime and prominent

community fixture in Australia, however

the racing industry is facing significant

challenges in terms of maintaining

its relevance among an increasingly

competitive consumer entertainment

and wagering marketplace.

RWWA is proactively progressing

various initiatives with key stakeholders

locally, and at the national level,

to navigate these challenges while

continuing to enhance the racing

industry’s significant contribution to the

Western Australian economy.

The WA racing industry continues to

provide a vital contribution to the State’s

economic performance, generating

more than $821M in real gross value

add to the economy and accounting for

more than 24,000 people – or 1 in 79 of

WA’s adult population – who participate

in the sport, with 823,000 people

attending race meetings annually.

Since its inception in 2003, RWWA has

increased its annual funding to the

racing industry from $63M to more than

$157M in 2017/18.

In August 2018, RWWA announced a

record $157.4M in annual distribution

and industry funding, up $6M on the

previous year. This funding came on the

back of a stable performance from the

WA TAB and improved income from the

WA Race Bets Levy.

The WA TAB continues to provide a

significant revenue stream from betting

on national and international racing and

sporting product which, together with

increased revenues from the WA Race

Bets Levy, provided the organisation

the capacity to increase its funding

commitment to the WA racing industry.

Financial PerformanceRWWA continues to evolve relevant

strategies and operations while managing

expenses across its multiple business

units, lifting productivity and increasing

wagering revenues over the last year to

afford greater investment back to the

racing industry.

Overall revenues for 2017/18 were

$404.7M comprised of $321.5M from

wagering, $58.4M from WA Race Bets

Levy and $24.8M from other items.

Income generated by the WA Race Bets

Levy from domestic and international

wagering operators betting on WA

racing increased by 8.2% or $4.4M

for the year, growing from $54.0M to

$58.4M (see Note 27 & 41 in Financial

Statements: Grants and Subsidies from

State Government).

The WA Race Bets Levy is revenue

paid to RWWA but is treated as Grants

Income from the State Government

because RWWA operates as both the

PRA and wagering operator.

It is important to note that while RWWA

reported a net deficit of $9.1M having

distributed available funds for relevant

racing infrastructure, as outlined below,

the WA TAB produced a profit in 2017/18

of $133M excluding support costs.

The 2017/18 financial year incorporated

a 53rd trading week generating further

wagering revenue of $4M and improving

performance overall.

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2012

$53M

$293M

$52M

$316M

2013

$54M

$339M

2014

$64M

$336M

2015

$71M

$330M

2016

$77M

$315M

2017

$83M

$322M

2018

Chart 1: Wagering Revenue and Other Income (2012 - 2018)

Other Income (Incl Race Bets Levy) Wagering Revenue

* Payments to Sports Wagering Account of $4.6M in 2017/18 are not included in this graph.

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RWWA increased funding to the racing

industry via distributions, grants and

subsidies by $6M to a new total of $157M.

In terms of infrastructure grants, RWWA

chose to distribute funds for relevant

racing infrastructure projects and

investment priorities across all three

codes, drawing on surplus funds accrued

over past years, resulting in a $9.1M

deficit for 2017/18.

After taking into account the various

financial outcomes including the increase

in industry funding, working capital

reduced by $8M over the prior year as

highlighted in Chart 3.

$114M

Chart 2: Distributions*, Grants and Subsidies (2012 - 2018)

$116M $131M $143M $149M $151M $157M

2012 2013 2014 2015 2016 2017 2018

$22M

Chart 3: Working Capital (2012 - 2018)

$32M $46M $54M $48M $50M $42M

2012 2013 2014 2015 2016 2017 2018

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WageringAustralia’s wagering industry continues

to attract increasing levels of public and

political attention.

During the 2017/18 financial year,

RWWA has worked proactively with

the Department of Treasury Western

Australia, the Minister for Racing and

Gaming, and racing stakeholders to

inform and contribute to the evaluation

of the potential privatisation of the WA

TAB.

Consistent communication with the

racing industry across the State has

allowed participants and stakeholders to

stay abreast of this progress, participate

in open discussion forums and provide

submissions on this important issue.

As announced by the Minister for

Racing and Gaming and the Treasurer

in March 2018, the State Government

committed to a thorough consultation

with the racing industry regarding the

future of the WA TAB following detailed

analysis conducted by Treasury and its

commercial advisor, Investec.

The subsequent consultation process

was divided into two stages: stage

one involved discussions with the

RWWA Board and its subcommittees

representing the three racing

codes (thoroughbred, harness and

Greyhounds). Stage two commenced

with publication of a detailed discussion

paper to facilitate discussion and

analysis of the key issues, and enable

the racing industry and other key

stakeholders to provide input and

feedback, supplemented by a series of

consultation forums for stakeholder

groups arranged by RWWA.

While the State Government has not

yet announced its intentions regarding

the potential privatisation of the WA

TAB, RWWA continues to advocate for

the racing industry on this and other

relevant matters of policy.

In September 2017, the Federal

Government passed a Bill to amend the

Interactive Gambling Act 2001 (IGA) to

remove uncertainty around wagering

operators interpretations of what does

and does not comply with the IGA, in

particular with respect to ‘in play’ sports

betting.

Furthermore, State and Federal Ministers

have agreed to the implementation

of a National Consumer Protection

Framework for wagering operators

to comply with. RWWA endorses this

framework in support of its efforts to

address responsible wagering and reduce

harm created by excessive advertising

and inducement of wagering offers.

The Federal and State government

regulatory environment affecting

online and retail wagering continues

to change with further tightening on

responsible wagering, Anti-Money

Laundering/Counter Terrorism

Financing compliance and acceptable

standards around customer advertising

and inducements. Whilst RWWA has

a positive track record of compliance

across the various regulatory

organisations and racing authorities,

ongoing investment in compliance

resourcing is required to maintain this

standard.

RWWA is presently working with the

State Government regarding the

potential benefits and concerns arising

from the possible introduction of a new

point of consumption (POC) tax.

Amid the progress of these various

initiatives and considerations, RWWA’s

wagering business performed strongly

during 2017/18 taking wagering revenue

to over $321.5M.

Wagering revenue was up primarily due

to growth in fixed odds racing of 13.8%.

Increase in betting volume of 6.3%

for the year was negatively offset by a

reduction in average bet value of 6.0%.

Pari-mutuel margin increases eclipsed

minor falls in fixed odds margin,

however, overall blended margin

reduced slightly over the year.

RacingThree Racing Code Committees were

formed in late 2017 to generate greater

collaboration and engagement with all

racing participants and stakeholders.

These sub-committees of the RWWA

Board continue to evolve while

improving consultation with industry

across all three codes.

During the year, RWWA continued to

refine strategic plans for each of the

three racing codes that were approved

last financial year and implemented in

2017/18. These code strategic plans

remain fundamental to the business

generally, and vital in communicating

and gaining stakeholder support for

each code in order to achieve positive

long term commercial sustainability.

RWWA, together with the local racing

industry, continued to develop the

quality of the Western Australian racing

product, which remains a key focus in

recognition of state racing industries

competing nationally for animal

ownership, bloodstock and wagering

investment.

Further investment in on-course vision

and wagering equipment has been a

necessary and positive step towards

improving the on course experience.

RWWA continues to advance the

modernisation program to major

thoroughbred, harness and greyhound

tracks.

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In particular, the commencement of the

$3M Pinjarra harness project, including

new stalls and machinery shed at the

Pinjarra Paceway, is necessary for the

continued success of the code.

The Mandurah greyhound track at

Kanyana Park was reopened following an

extensive upgrade involving resurfacing

of the race track and amendments to the

course design generating racing, wagering

and animal welfare improvements.

The State Government funding component

of $150K was supplemented by almost

$250K from RWWA’s Infrastructure Grants

funding pool allowing the eight-week

construction program to finish ahead of

schedule in July.

In addition, the State Government

contributed $1.3M towards racing

infrastructure grants during the year

through the Royalties for Regions

program and matching Government

racing infrastructure grants funding.

An important part of summarising

Racing’s key achievements for 2017/18

is to recognise the winners of the major

Group races throughout the season. They

are as follows:

Thoroughbreds

• GREAT SHOT; Rhys Radford (trainer);

Craig Staples (Jockey); and Dr F J &

Mrs M E Edwards (owners).

• Winterbottom Stakes (Group

One): won by VIDDORA; Lloyd

Kennewell (trainer); Joe Bowditch

(Jockey); and Lloyd Kennewell,

C J Cooke, M Adami, Dr E T

Hodgson, Mrs J Bowditch, Blue Hills

Syndicate(Mgr: G J Matheson) F &

Mrs G L Fitzgibbon, R Williamson,

J B Kaufman, N J E Lovett,M L

Simpson, D & Mrs K Rogers, S & Mrs

M Ferguson (owners).

• Kingston Town Classic (Group One):

won by POUNAMU ; Alan Mathews

(trainer); Patrick Carbery (Jockey);

and Thommo’S Syndicate(Mgr: J L

Thompson) Mrs P M, Ms R C & Ms A

J Thompson & G Hilton (owners).

• Perth Cup (Group Two): won by

MATERIAL MAN; Justin Warwick

(trainer); Lucy Warwick (Jockey); and

M J & Mrs J Mac Dermott (owners).

• WATC Derby (Group Two): won by

ACTION; Grant & Alana Williams

(trainer); William Pike (Jockey); and

Peters Investments Pty Ltd Syndicate

(Mgr: R J & Mrs S L Peters) (owners).

• Karrakatta Plate (Group Two): won

by VALOUR ROAD; Simon A. Miller

(trainer); Aaron Mitchell (Jockey);

and D L Carvell, B J Mc Gougan,

I S Devenish, Mrs C M Devlin, P

R Conway, R G Sayers, Jacques

De Bissy, Mrs D M Williams, J A

Vingerhoets & Mrs S J Conway

(owners).’

Harness

• Inter Dominion (Group One): won

by LAZARUS (NZ); Mark Purdon

(trainer); Mark Purdon (driver); and G

J Kennard, P I Kennard, T G Casey &

K J Riseley (owners).

• Fremantle Pacing Cup (Group

One): won by MY HARD COPY

(NZ); Gary Hall Snr (trainer); Clinton

Hall (driver); and S K Chapman, C

Chapman & D Chapman (owners).

• WA Pacing Cup (Group One): won

by SOHO TRIBECA; B E Cousins

(trainer); Kim Prentice (driver); and

Robert Watson (owners).

• WA Derby (Group One): won by

KING OF SWING (NZ); Gary Hall Snr

(trainer); Gary Hall Jnr (driver); and

B V Richardson, M A Congerton,

Go Racing, K A Hall, G L Moore, S D

MacGregor, R Patriarca & F Patriarca

(owners).

• WA Oaks (Group One): won by OUR

MAJOR MAMA (NZ); Justin Prentice

(trainer); Justin Prentice (driver); and

Solid Gold Stanardbreds, B L Jones,

K Woolfenden, J R Brennan, R V

Brennan, G Monaghan, R Vassallo, R

Fitzgerald, L Dewar & CAD Syndicate

(owners).

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Greyhound

• Perth Cup (Group One): won by

TROUPER MONELLI; David Hobby

(trainer); and Mike & Michelle

Quinsee (owners).

• Galaxy (Group One): won by

RIPPIN’ SAM; Robert Britton

(trainer); and Loren Harborne

(owner).

• All Stars Sprint (Group Two): won

by EQUANIMITY; Enzo Crudeli

(trainer); and Robbie Brankstone

(owner).

Strategic OutlookRWWA maintains a strong focus on the

following strategic priorities over the

medium and long term to achieve the

organisation’s stated purpose:

1. Work with industry to increase

the effectiveness and utilisation of

racing assets;

2. Increase our share of the

competitive wagering market

through enhanced product and

services;

3. Strengthen government relations

and demonstrate the economic

and social benefits of a positive

and sustainable racing industry;

4. Improve the quality of racing

product, oncourse attendance and

relevance of Western Australian

racing through increasing stakes

distribution and industry marketing

and planning;

5. Implement strategies to

demonstrate best practice in

animal welfare, as well as the

promotion and delivery of

responsible wagering; and

6. Strengthen the integrity and

welfare standards across Western

Australian racing to ensure public

confidence and support.

In addition to the above strategic

priorities, RWWA is focused on working

with Government to provide the best

long term outcomes from the proposed

POC tax and the possible sale of the

WA TAB.

Our PeopleIn light of challenges and opportunities

that the Western Australian racing

industry continues to encounter under

the authority and guidance of RWWA,

whether they be foreign or domestic

and either within or outside of our

control, our organisation works hard

to achieve the best outcome for its

stakeholders.

There are more than 24,000 people

involved in racing in this state, many of

whom are fulltime, assisting to improve

the quality of our racing product and

promote to sport on a national and

international stage.

Mr Robert (Bob) Pearson stood down

as a Director of RWWA at the end of

the year, after many years of dedicated

service to the racing industry in Western

Australia. Bob’s contribution has been

enormous and appreciated by fellow

Board members and the industry at

large.

Finally, we take this opportunity to

thank our racing participants, staff,

agents, Government and importantly

our customers for their ongoing

commitment in providing a sustainable

future for the Western Australian racing

industry as we endeavour to be a

national leader in racing and wagering

entertainment.

Jeff OvensChairman

Richard BurtCEO

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The Western Australian racing industry is funded via the profits made by the Western Australian TAB together with income

generated via WA Race Bets Levy from national wagering operators. For the 2017/18 financial year, RWWA contributed $162M

in funding to the Western Australian racing and sporting industry, and $24.4M in funding towards its racing and integrity

services, at total increase of $7M from the previous financial year.

$141.9m

RACING DISTRIBUTION

$24.4m

RACING & INTEGRITY SERVICES

$4.6m

SPORT DISTRIBUTION

$15.4m

RWWA GRANTS & CLUB SUBSIDIES

Western Australian Racing and Sporting industry

Racing Distribution

RWWA Grants & Club Subsidies

Racing & Integrity Services

Sport Distribution

In 2017/18 $141.9M of funding was distributed to the Western Australian racing industry as prize money, owner and breeder bonuses, participant payments, event fees and training services, as well as providing funding for initiatives such as the Australian Jockey Association and welfare initiatives.

RWWA has continued to assist clubs with infrastructure grants outside of the Racecourse Infrastructure Grants Program (RIGP) and Royalties for Regions (RFR) funding, with $15.4M in grants and subsidies provided to the Western Australian racing industry in 2017/18.

In 2017/18 $24.4M funding was allocated to racing and integrity services to ensure the proper conduct and integrity of racing activities across the State.

Every year RWWA, through the profits generated by the TAB, invests a portion of sports wagering revenue back into community sports through the Sports Wagering Account with the Department of Sport and Recreation, with a total contribution of $4.6M in 2017/18.

Industry Funding

Purpose of Funding

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The Western Australian racing industry is responsible for generating more than $821M in economic contribution to the State.

Furthermore, the industry has a presence in all regions of Western Australia, with 48 out of 52 race clubs located in regional areas,

meaning all of the State benefits from the racing industry.

Regions Number of Race Clubs

Number of Race Meetings

Real Gross Value-Added*

Metropolitan 3 333 $504.0M

Peel 4 203 $120.3M

South West 6 62 $58.3M

Wheatbelt 12 132 $57.6M

Goldfields-Esperance 7 51 $28.1M

Great Southern 5 31 $24.7M

Mid-West 7 24 $13.4M

Kimberley 4 15 $8.0M

Gascoyne 2 12 $3.6M

Pilbara 4 12 $3.0M

TOTAL 54** 875 $821M

*Real gross value-added is the measure of the value of production from economic activity. **The Western Australian Greyhound Association (WAGRA) are counted as one club, but run from three different race tracks, each in a different region.

Western Australian Racing Overview

Image: Broome Turf Club

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Western Australian Racing Overview

The continual increase in funding reflects RWWA’s wider strategy to improve the quality of racing product, on-course attendance and relevance of Western Australian racing.

Economic and Social Impact

The Western Australian racing industry generates more than $682M in direct expenditure, with more than half of expenditure occurring in regional areas.

The training and preparation of racing animals results in more than $165M in expenditure.

In excess of 823,000 racegoers attend thoroughbred, harness and greyhound race meetings in Western Australia each year; over 57% of these attendances occur at country racecourses, with Peel and the South West representing the largest regions.

More than 24,000 individuals participate in the Western Australian racing industry (as an employee, participant or volunteer), which equates to approximately 1 in every 79 adult residents in the State.

The economic activity generated by the racing industry sustains more than 7,360 full-time-equivalent positions in Western Australia.

On average 260 community organisations and charities are financially assisted by the

industry, and over 150 community organisations share race club facilities and resources.

(Source: WA Racing Economic & Social Report, IER, January 2016).

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Enabling Legislation

RWWA commenced operations on 1

August 2003 upon promulgation of

the Racing and Wagering Western

Australia Act 2003. The Act established

RWWA as the controlling authority for

thoroughbred, harness and greyhound

racing in Western Australia, together

with the responsibility for off-course TAB

wagering. Implementation of RWWA’s

responsibilities occurred in two stages.

Effective 1 August 2003, RWWA assumed

the principal club/controlling authority

responsibilities of The Western Australian

Turf Club, Western Australian Trotting

Association and Western Australian

Greyhound Racing Authority. On 30

January 2004, the Totalisator Agency

Board Betting Act 1960 was repealed

and RWWA assumed responsibility

for the conduct of off-course TAB

wagering. The Racing and Wagering

Western Australia Regulations 2003

were enacted to establish key employee

licensing procedures relating to RWWA’s

wagering activities, and to include those

provisions of the Totalisator Agency

Board (Betting) Regulations 1988 needed

to control RWWA’s wagering activities.

To complement the formation of RWWA,

the Betting Control Board, established

under the Betting Control Act 1954, was

abolished and its functions transferred

to the Gaming Commission of Western

Australia, which was re-titled the

Gaming and Wagering Commission of

Western Australia. Hence, the Gaming

and Wagering Commission, under the

Gaming and Wagering Commission Act

1987, now regulates RWWA’s gambling

activities.

As part of the legislative package to

establish RWWA, the Totalisator Agency

Board Betting Tax Act 1960 was repealed

and replaced by the Racing and Wagering

Western Australia Tax Act 2003. The

Racing Restriction Act 2003 replaced the

Racing Restriction Act 1917. Under the

Racing Restriction Act, no thoroughbred,

harness or greyhound race for prize

(exceeding $50 in value) or betting may

be held without a licence from RWWA.

LegislationThe principal legislation governing

RWWA is:

• Racing and Wagering Western

Australia Act 2003;

• Racing and Wagering Western

Australia Tax Act 2003;

• Racing Restriction Act 2003;

• Racing Bets Levy Act 2009;

• Gaming and Wagering Commission

Act 1987; and

• Betting Control Act 1954.

Other legislation to which RWWA must

comply includes the following. The list

is not exhaustive but represents the

legislation which impacts on the general

operation of RWWA:

• Anti-Money Laundering and

Counter Terrorism Financing Act

2006 (Commonwealth);

• Broadcasting and Recorded

Entertainment Award 2010;

• Copyright Act 1968

(Commonwealth);

• Corruption, Crime and Misconduct

Act 2003;

• Criminal Code Act 1913 (WA)

and Criminal Code Act 1995

(Commonwealth);

• Electoral Act 1907;

• Equal Opportunity Act 1984;

• Financial Management Act 2006;

• Freedom of Information Act 1992;

• Gaming and Betting (Contract

Securities) Act 1985;

• Interactive Gambling Act 2001;

• Liquor Control Act 1988;

• Long Service Leave Act 1958;

• Occupational Safety and Health Act

1984;

• Patents Act 1990;

• Public Interest Disclosure Act 2003;

• Spam Act 2003;

• State Government Agencies

Administration Award 2010;

• State Superannuation Act 2000;

• Statutory Corporations (Liabilities of

Directors) Act 1996;

• Superannuation Guarantee

(Administration) Act 1992;

• Trade Marks Act 1995;

• Trade Practice Act 1974;

• Unclaimed Money Act 1990;

• Workers Compensation and Injury

Management Amendment (Jockeys)

Act 2012; and

• Fair Work Act 2009.

Responsible MinisterThe Hon Paul Papalia CSC MLA (Minister

for Tourism; Racing and Gaming; Small

Business; Defence Issues; Citizenship and

Multicultural Interests) was appointed the

responsible Minister on 17 March 2017.

The Hon Paul Papalia CSC MLA (Minister for Tourism; Racing and Gaming; Small Business; Defence Issues; Citizenship and Multicultural Interests) was appointed the responsible Minister on 17 March 2017.

Operational Structure

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Operational Structure

The organisational structure of RWWA is based on a corporate model comprising a number of divisions which oversee the varying activities of the organisation.

Chief Executive OfficerRichard Burt

General Manager RacingCharlotte Mills

General Manager Racing Integrity Denis Borovica

General Manager Human ResourcesMatthew Thomas

Chief Information OfficerSam McCready

General Manager WageringMichael Saunders

Chief Financial OfficerIan Edwards

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Racing and Wagering Western Australia Board

Mr Jeff OvensFirst appointed 21 November 2011

Chairman, Jeff has helped implement

significant change programs aimed at

improving company performance in

ASX listed and private companies, the

tertiary education sector, health and the

sports industry.

Mr Robert Pearson First appointed 1 August 2003

(Retired 31 July 2018)

Nominated by Thoroughbred

Racing Industry Bodies since the

inception of RWWA in 2003 until

31 July 2018, former Chairman and

Director of Australian Racing Board,

WATC Committee, Director roles

in the sporting industry and current

Chairperson and Managing Director

Statewide Oil Distributors since 1985.

Mr Bob Fowler First appointed 1 August 2016

Mr Bob Fowler is the Managing Director

of Fowler Group of Companies. Bob’s

passion is Allwood Stud Farm situated

in Bullsbrook, Western Australia. He

was the President of Western Australian

Standardbred Breeders Association from

1985-1988.

Mr Gary GliddonFirst appointed 21 November 2011

Gary is the nominated Code Director for

Greyhounds and has previously been a

Licensed Owner through syndication.

He is currently the Managing Director of

Braxford Consultancy, a firm specialising

in Corporate Governance, Probity and

Audit related services.

Mr Anthony HasluckFirst appointed 1 February 2014

Anthony is one of WA’s leading

communications consultants and heads

Clarity Communications, the largest

independent agency in Western Australia

assisting corporations with public

relations, branding, design and digital

communications.

Dr Lianne Cretney-Barnes First appointed 1 February 2011

Lianne has a Doctor of Business

Administration and is a Fellow of

the Australian Institute of Company

Directors, the Australian Institute

of Management and the Australian

Marketing Institute.

Mrs Kirrilee WarrFirst appointed 1 February 2014

Director of a broad acre agricultural

enterprise Kirrilee currently holds

board appointments with Midwest

Development Commission, CBH

Grower Advisory Council, and

is Deputy President of Shire of

Chapman Valley. Also a member and

Graduate (2012) of the Australian

Institute of Company Directors, and

Graduate of the Australian Rural

Leadership Program .

Mr Stephen LangsfordFirst appointed 1 February 2018

Corporate Adviser, Company

Director and entrepreneur

founding and operating a number

of companies in the consumer

digital and information technology

sectors.

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Board Committees

Integrity Assurance CommitteeThe Integrity Assurance Committee (IAC) has primary

oversight of those aspects of RWWA’s functions that

relate to stewards, drug testing and control, licensing and

registration, handicapping, racing appeals, rules of racing

and wagering compliance.

Committee members:

• Dr Lianne Cretney-Barnes (Chairperson)

• Mr Stephen Langsford

• Mrs Kirrilee Warr

• Mr Anthony Hasluck (ex-officio)

Audit and Risk CommitteeThe Audit and Risk Committee (ARC) plays an important

role in providing oversight of RWWA’s values and ethics,

governance, risk management and internal control practices.

The ARC has oversight of the Internal Audit function. The

ARC also reviews and approves the Annual Report.

Committee members:

• Mr Anthony Hasluck (Chairman)

• Mr Jeff Ovens

• Mr Gary Gliddon

Remuneration and Nomination Committee The Remuneration and Nomination Committee (RNC)

oversees and reports on remuneration for the CEO,

bonuses for staff and executive, allowances for committee

members, and the nomination process for the recruitment,

appointment and development of the Board and

Committees, in accordance with its Charter.

Committee members:

• Mr Jeff Ovens (Chairman)

• Dr Lianne Cretney-Barnes

• Mr Robert Pearson

Animal Welfare CommitteeTo regularly review and revise all matters pertaining to the

proper control of the welfare of all racing animals within

the WA Racing Industry and to provide a communications

conduit between the WA Racing Industry and the general

public with respect to responding to public opinion and to

promulgate the proper regulation of racing animal welfare

within WA.

Committee members:

• Chief Executive Officer (Chairman)

• General Manager Racing

• General Manager Racing Integrity

• Racing Industry Veterinarian

• Manager Animal Welfare

• Manager Corporate Communications

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Code Committees

The purpose of the Thoroughbred Racing Committee is to make recommendations to the Board for

endorsement in relation to the specialised functions in relation to racing as prescribed within Section 35 of

the Act in its role as the Principal Racing Authority.

Name Nominated by

Mr Robert Pearson (Chairman) RWWA Code Director (Retired 31 July 2018)

Mr Robert Bransby (Chairman) RWWA Code Director (Appointed 1 August 2018)

Mr Neil Pinner Perth Racing

Mr Frank Fiore WAPTRA/CRA

Mr Alan Bansemer Stakeholder Associations

Mr Jarrod Rendell Independent (appointed by Committee)

Mr Anthony Cipriano Independent (appointed by Committee)

Racing CommitteesFormed in December 2017, the three individual code racing committees are responsible for the strategic role and direction of their

respective codes.

Thor

oug

hbre

dH

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reyh

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The purpose of the Harness Racing Committee is to make recommendations to the Board for endorsement

in relation to the specialised functions in relation to racing as prescribed within Section 35 of the Act in its

role as the Principal Racing Authority.

Name Nominated by

Mr Robert (Bob) Fowler (Chairman) RWWA Code Director

Mr Michael Radley GPHR

Mr Peter Trefort WACHRA

Mr Howard King Stakeholder Associations

Ms Lisa Hando Independent (appointed by Committee)

Mr Glen Mortimer Independent (appointed by Committee)

The purpose of the Greyhound Racing Committee is to make recommendations to the Board for

endorsement in relation to the specialised functions in relation to racing as prescribed within Section 35 of

the Act in its role as the Principal Racing Authority.

Name Nominated by

Mr Gary Gliddon (Chairman) RWWA Code Director

Mr Richard Humphries WAGRA

Mr Noel Reilly WAGRA

Mr Gary Weston WAGBOTA

Mr Dean Starkie WAGBOTA

Mr Ken Norquay Independent Nominee

Ms Cheryl Isaac Independent Nominee

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Strategic Priorities

RWWA maintains a strong focus on the following strategic

priorities over the medium and long-term in the context of

achievement of the organisation’s stated purpose:

Sustainable Growth:

Deliver products and functionality that drives customer

engagement and increases financial outcomes.

Customer and Stakeholder Experience:

Create and lead the best customer and stakeholder

experience.

Risk and Compliance:

Maintain best practice standards of risk management and

compliance in a rapidly changing wagering and racing

landscape.

Racing Administration:

Ensure high standards of integrity and improve the quality

and sustainability of the racing industry through greater

collaboration.

Productivity:

Drive greater productivity and effectiveness across the

business.

People and Culture:

Continue to improve staff engagement and build a high

performing workforce.

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The following announcements form

part of RWWA’s wider strategy to

increase the quality of racing product,

on-course attendance and relevance of

racing in Western Australia.

Industry Funding

RWWA will provide distribution and

club subsidies to industry of $157.4M

in 2018/19, to support the delivery of

the strategic plans for thoroughbred,

harness and greyhound racing. This

represents an increase of $5.2M in new

funds to implement the framework

which will drive the delivery of the three

code strategic plans. The newly formed

RWWA Racing Committees have played

an important role in determining the

areas of funding priority for the three

racing codes. A further $3M in grants

have been allocated in 2018/19 to

complete the Pinjarra Harness Stalls

project, purchase and install a new big

screen at Ascot Racecourse and various

other racing projects. In addition,

$1.45M will be allocated to new digital

marketing initiatives predominantly

in the thoroughbred code to drive

ownership and participation.

Thoroughbreds

Priorities for the 2018/19 racing season

include new digital marketing initiatives

that have been allocated $1.2M to

drive the promotion of racing animal

ownership. This includes targeted

marketing and branding initiatives along

with $200K to rollout a comprehensive

digital content strategy in the

thoroughbred code. The thoroughbred

industry will also continue to benefit

from the full year effect of stake money

increases announced in February

2018 across all metropolitan and

provincial thoroughbred race meetings,

headlined by a $10K boost to Saturday

metropolitan races. Moreover, the

revised stakes distribution formula

(providing prizemoney to be paid back

to tenth place and a $100 subsidy to all

non-stakes earning runners) will also

continue to be funded. Thoroughbred

Owners and Breeders will also benefit

from the WestSpeed Platinum bonus

scheme now applying to both 2YO and

3YO crops at the full level, increasing

the bonus for 3YOs to $15K.

Harness

The key priority for the 2018/19 racing

season is the implementation of the

new business model for harness

racing, with almost $1M allocated to

this important project. Transitional

stakes tiering will be introduced

from 1 September 2018 along with

enhancing the racing circuits and

implementation of further elements of

the new business model. Following this

period of transitional stakes increases,

all remaining stakes increases will be

implemented from 1 November 2018,

delivering Gloucester Park mid-week

total meeting stakes increases of

$10K and Gloucester Park prime total

meeting stakes will increase by an

additional $7.5K. Total meeting stakes

for Provincial 2/Country race meetings

will increase by a further $500 from 1

November 2018, with an additional $1K

in total meeting stakes for Provincial 1

race meetings from this date.

Greyhounds

More than $500K will fund an increase

in the trainer’s subsidy (to $50) to

recognise the additional costs trainers

and owners bear throughout the

career of a racing greyhound, and help

with the costs in maintaining retired

greyhounds in their kennel immediately

post their racing career before entering

the Greyhounds as Pets assessment

program. In terms of animal welfare,

$200K will be invested in rehoming

initiatives involving Greyhounds as

Pets (GAP) and other animal advocacy

and rehoming agencies, while $250K

in funds will support an expanded

track injury rebate scheme. From 3

August 2018, revised stake money

levels incorporating stake tiering within

the Sprint Grade will see increases of

up to $545 specific to City Grade 5

520m races; $375 specific to Provincial

Grade 5 490m and 520m races; and

$225 specific to Country 490m, 509m

and 520m races. WAGRA will receive

an increase of $330K including an

Event Fee increase, further training

funding and financial support to deliver

subsidised public trials.

Future Outlook 2018/19

RWWA will provide distribution and club subsidies to industry of $157.4M in 2018/19, to support the delivery of the strategic plans for thoroughbred, harness and greyhound racing.

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Chapter 2: Report on Operations

Image: Mollie Clak and Casey Hunter

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The Racing division is responsible

for racing operations and the overall

strategic direction of the racing industry

in Western Australia. Responsibilities

include fixture planning, racing

systems and information maintenance,

handicapping and grading, race

programming, base and feature stakes

allocations, domestic and international

vision contracts, industry consultation,

racing industry development, industry

training, club and racing industry related

occupational safety and health (OSH),

and control of RWWA-owned animal

industry training venues.

Throughout the year racing and

technical teams have been working

through the transition to the new

Single National System that will

support the thoroughbreds from early

2019. Continued focus has been on

maximising the OzChase support system

for Greyhounds and will continue

to deliver self service functions for

participants through the next 12 months.

RWWA, as the Principal Racing Authority

for the three codes of Racing in Western

Australia, operates under the Racing and

Wagering Western Australian Act 2003

but also applies National Rules of Racing

for each code. The Racing division

results listed below are for the period 29

July 2017 to 27 July 2018.

The 2017/18 season provided 875

race meetings across the three codes

of racing, featuring a total of 7,976

races contested by 68,683 starters. Of

these, 6,562 individual animals raced

including 3,427 thoroughbreds, 1,691

standardbreds and 1,444 greyhounds.

Funding For Race Clubs

In 2017/18, RWWA provided distribution

funding as follows:

• One greyhound club (Western

Australian Greyhound Racing

Association (WAGRA)) racing

at three venues (Cannington,

Mandurah and Northam).

• 37 thoroughbred clubs (including

tenanted arrangements for

Coolgardie Race Club at

Kalgoorlie)*.

• 14 harness clubs.

• Five harness training only venues

(Byford, Dunbarton, Jandakot,

Wanneroo and York).

• Total distribution funding (in the

form of event fees, training funding,

international rights and on-course

bookmakers levy rebate) provided

to Western Australian racing clubs

in 2017/18 amounted to $25.4M or

17.1% of total industry distributions.

• Total distributions to race clubs

excludes capital infrastructure

funding, on-course vision

production costs, SKY broadcast

transmission costs, wagering

pooling fees and product fees.

• The source of funds for

distributions is made up of RWWA

profits/retained earnings and

revenue from the WA Race Bets

Levy (under which all race fields

income is passed on to the race

clubs).

• Capital infrastructure funding

was sourced via the Racing

Infrastructure Grants Program

(RIGP), Royalties for Regions

(RFR), race club and RWWA

supplementary funding.

*Note: dual code race clubs, York

Racing and Narrogin Race and Pace, are

included in the above figures.

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Major thoroughbred racing activities in 2017/18:

• RWWA provided thoroughbred

race clubs and participants with

payments for stakes and subsidies of

$67.5M.

• The WestSpeed Scheme provided

owners, breeders, trainers and riders

with an additional $7.1M in bonuses.

• Race clubs conducted a total of 295

race meetings (including non-TAB

meetings) and 2,212 races.

• The Western Australian

thoroughbred race clubs paid a

total of $61.2M in prize money, with

20,924 starters.

• There were 3,427 individual

thoroughbreds that raced.

• The Magic Millions Yearling Sales

recorded an aggregate for the sale

of $11.66M and an average sale price

of $45.8K, with a clearance rate of

84.7%.

• Owners benefited from the increase

of WestSpeed Platinum bonuses of

$5k on previous year. A total of 115

Prime Metro WestSpeed bonuses

were paid during 2017/2018 season.

• Ascot hosted the TABtouch Masters

series featuring a $1M Group One

race on three consecutive Saturdays.

• Bunbury Turf Club and Pinjarra

Race Club hosted standalone

metropolitan class Saturday fixtures.

• RWWA continued a project to

migrate from the internal legacy

thoroughbred racing computer

system to the Single National

System administered by Racing

Australia. The project, which was

initially expected to be delivered in

May 2018, was delayed by Racing

Australia and is now expected to be

completed in early 2019.

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Major Harness racing activities in 2017/18:

• RWWA provided harness race

clubs with payments for stakes and

subsidies of $35.7M.

• RWWA paid out an additional $1.4M

in WestBred bonuses.

• Race clubs conducted a total of

263 race meetings and 2,219 races,

which provided 21,815 racing

opportunities for 1,691 individual

horses that raced.

• The 21,815 starters were trained

by 382 individual trainers, with 59

trainers having 100 or more starters

for the year, and 20 having 200 or

more starters.

• A total of 221 Western Australian

trained mares earned at least one

of the EPONA bonuses, winning

478 races and generating $231K in

credits. Six mares each earned the

maximum credit amount of $5K,

and a total of $115K was paid out in

claims to the owners of 54 mares.

• The Australian Pacing Gold Yearling

Sales recorded a sale of $1.31M

and an average sale price for fillies

of $15K and for colts $16K, with a

clearance rate of 80.4%.

• RWWA and Gloucester Park

Harness Racing (GPHR) hosted the

third series of the TABtouch Perth

Inter Dominion Championship

Series in December 2017 with the

overall series worth $1.8M in prize

money.

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Major greyhound racing activities in 2017/18:

• RWWA provided WAGRA with base

and feature stakes funding of $11M.

• The WESTCHA$E Incentive Scheme

paid out $1M in bonuses for the

year.

• WAGRA conducted 3,545 races

at 317 race meetings, with 25,945

starters.

• There were 1,444 individual

Greyhounds that raced.

• The Group 1 Perth Cup was won

for the third year in a row, by a

Western Australian trained, owned

and bred greyhound TROUPER

MONELLI. Trainer David Hobby,

Owners and Breeders Mike &

Michelle Quinsee.

• The Group 1 pinnacle was

also achieved by the Western

Australian trained, owned and

bred greyhound QUICK JAGGER,

who won the Group 1 Sale Cup

in Victoria. Trainer Chris Halse,

Owner Declan Edmonds, Eamon

Fitzpatrick & Geoff Chatfield,

Breeder Christine Robartson.

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Industry Training

Major industry training highlights in 2017/18:

• Three apprentice jockeys

commenced race riding, with

three graduating into senior ranks

during the year. Eight commenced

as trainees. One transferred to

Victoria and one transferred back

to complete his apprenticeship.

Additionally one apprentice returned

to race riding after having two years

off due to injury.

• RWWA again supported the National

Apprentice Jockey Challenge, with

a heat being held at Ascot in April,

which was won by WA Apprentice

Tayla Stone. Western Australian

apprentices rode in each heat,

represented by Fiona Bell (Tasmania),

Randy Tan (Victoria), Tayla Stone

(Queensland, ride was scratched,

rode in South Australia),

• Tayla Stone won the leading

metropolitan apprentice

premiership, Brodie Kirby the leading

Provincial and leading Country

Apprentice.

• Two new C grade harness drivers

(trials only) commenced during the

season.

• One driver progressed to B grade

drivers’ licences during the period.

• The Garrard’s Young Drivers

Challenge was won by Dani Roberts.

• RWWA Careers in Racing promotions

have been supported by Racing

Marketing to raise the profile of

career opportunities in the racing

industry.

Image: Ben Paterson, Jockey

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Infrastructure Grants

Racecourse Infrastructure Grants Program (RIGP) and Royalties for Regions

In July 2010, the Western Australian State

Government announced a $13M funding

program over five years toward racing

infrastructure. The Western Australian State

Government also approved boost funding

from Royalties for Regions (RFR) of $6.6M

in November 2012, increasing infrastructure

grant funding to the racing industry to

$19.6M during the period 2010/11 –

2014/15.

RWWA administers the Racecourse

Infrastructure Grants Program (RIGP) for

the Minister for Racing and Gaming. During

2017/18 financial year outstanding projects

were progressed towards completion, with

no additional Government funding or grants

approved by the Minister.

Other major projects completed from RIGP/RfR funding include:

• Pinjarra Harness Racing Club –

Sempahore Board

• Vision Cabling – Albany Racing Club

• Vision Cabling – Mt Barker

• Remedial Track Works – Narrogin

Racing

• Remedial Track Works – Broome

• New Tractor – Wagin

• New Jump Out Barriers – Esperance

Code Funding Metro Non-Metro

Thoroughbreds $1.69M 51% 49%

Harness $350K 47% 53%

Greyhounds $460K 100% n/a

Major RWWA Funded Grants

In 2017/18, $4.5M of RWWA Grant Funding was made available to all Race

Clubs based on wagering performance in the previous year, with minimum

funding available to each Club of $10,000 specific to OSH and infrastructure

projects.

Key projects completed include:

• Ascot Grandstand Major

Electrical Upgrade

• Perth Racing Track Maintenance

Equipment

• Ascot Bar Upgrades

• Kalgoorlie-Boulder Race Club

Bar Upgrade

• Northam Race Club Tractor

• Geraldton Turf Club Tractor

• Albany Racing Club Irrigation

Upgrade

• Pinjarra Race Club Solar Panels

• Pinjarra Race Club TV Cabling

Upgrade

• Bunbury Turf Club Track

Equipment

• Gloucester Park Network

Upgrade

• Pinjarra Harness Racing Club

Track Conditioner

• Bunbury Trotting Club Solar

Panels

• Northam Harness New Toilets

• Mandurah Greyhound Track

Upgrade

• Northam Greyhound Lure

Upgrade

• Other major RWWA funded

grants in 2017/18 include:

• Gloucester Park Bridge Bar

• Greyhound Sectional Timing

• Kalgoorlie-Boulder Race Club

Swimming Pool Upgrade

• Roebourne New Judges Tower

• Vision Cabling – Ascot

• Vision Cabling – Esperance

• Vision Cabling – Geraldton

Image: Gloucester Park

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Animal Welfare

RWWA is committed to ensuring that

racing animals in all three codes of

racing (thoroughbred, harness and

greyhound) are afforded appropriate

care and attention before, during and

after their racing careers. RWWA aims to

be a leader in animal welfare and build

a racing culture in which the health

and wellbeing of racing animals is

paramount to all participants

and owners.

To ensure welfare remains at the

forefront of all decisions, RWWA has

an Animal Welfare Committee (AWC)

comprising the CEO, General Manager

Racing, General Manager Racing

Integrity, Racing Industry Veterinarian,

Manager Corporate Communications

and Animal Welfare Manager.

The AWC meets regularly to discuss

strategic objectives and operations

regarding animal welfare. Additionally,

RWWA continues to identify areas of

focus within racing and refine strategies

intended to successfully drive positive

outcomes and deliver reform to

contribute to a sustainable future for

racing in WA.

In evolving these strategies, RWWA

sought consultation with industry

stakeholders to best understand and

address the key issues relating to

greyhound and equine welfare. These

strategies will serve to guide RWWA

and the racing industry into the future,

setting clear priorities and objectives

regarding the welfare of thoroughbred,

harness and greyhound Racing.

Equine WelfareRWWA recognises the importance of

appropriate care and consideration for

racing animals throughout their entire

lifecycle, including retirement, and

is committed to executing strategies

aimed at facilitating thoroughbreds and

Standardbreds transitioning to careers

outside of racing.

In recognising the importance of equine

welfare and in complementing National

Standards and the thoroughbred and

Harness Racing Strategic Plans, RWWA

will work towards the following welfare

commitments;

1. Full Lifecycle Tracking

2. Maximising Race Potential

3. Minimising Racing Injuries

4. Ensuring Best Practice

5. Education

6. Increasing Demand For Retired Racehorses

7. Retirement Requirements

Consistent with achieving these

aims, the following strategies were

implemented in 2017/18;

• From 1 September 2017, RWWA

implemented mandatory

microchipping of Standardbred

horses to enhance data capture

and promote full life-cycle tracking

of Standardbreds.

• Through the 2016/17 period,

RWWA developed a new business

model for harness Racing

aimed at providing greater race

opportunities for all horses. This

model should extend the racing life

of a horse and reduce the number

of horses exiting the industry

prematurely.

• Increased penalties for whip rules

breaches in harness racing and

revised whip rule to be introduced

on 1 September 2018.

• Policy development – use of

joggers.

Research and EducationRWWA has a research partnership

with Murdoch University and this

year made a contribution towards

funding a three year research project

examining Exercise Induced Pulmonary

Hemorrhage (EIPH) in horses.

The final publication, published in April

2018, examined the progression of

the condition and made observations

around tailoring racehorses exercise

schedules to limit the progression of

EIPH.

The project has previously published

two papers in the Equine Veterinary

Journal; one investigating risk factors

for disease, and the second examining

the association between EIPH and

performance.

Image: Retired racehorse Scenic Blast

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Off the Track (OTT)RWWA’s Off the Track (OTT) program

continues to be an active voice within

the racing and equestrian industries,

positioning retired racehorses as breeds

of choice for equestrian disciplines and

other pursuits.

The program’s activities increase

the demand for, and supports the

placement of, retired thoroughbred

and Standardbred racehorses in second

careers via the marketing initiatives

including sponsoring of events, sharing

successful stories, promoting re-trainers

and rehoming services, and holding

education clinics for retired racehorses.

Key achievements in 2017/18 include:

Cavalletti ClassifiedsOTT facilitates the sale of horses

on behalf of owners and trainers on

Australia’s most popular horse-selling

website – Cavalletti Classifieds. Through

this online platform, OTT has assisted in

the rehoming of 119 retired racehorses

since February 2017. Additionally, the OTT

program provides information to assist

trainers and owners to independently

transition their horses to successful

secondary careers.

Riding for the Disabled Association of Western Australia (RDA) Horses In 2017/18, two retired racehorses (one

Standardbred and one thoroughbred)

sourced by Off the Track were specifically

assessed and re-trained for RDA purposes

and have been gifted complete with

saddlery to RDA’s Centre in Collie.

Education Clinics In order to maximise rehoming success,

RWWA provides Education Clinics

through the OTT. These clinics are

valuable as they provide new owners

with tools to train and care for their

retired racehorse. The workshops bring

together experts in the fields of dressage,

show jumping, cross country and general

horse care including nutrition, farriery

requirements, dental and veterinarian

care to support the successful transition

of racehorses into second careers.

Events and Sponsorship OTT attended many events throughout

2017/18 to promote the capabilities

and versatility of thoroughbred and

Standardbred horses, including the Scenic

Blast Stakes, Magic Millions Yearling Sales,

Rockingham Beach Cup, Dowerin Field

Day, Equestrian WA Thoroughbred Horse

Of The Year, Patron’s Cup, Harness Horse

Of The Year Awards, IGA Perth Royal

Show, Harvey Dickson Rodeo, Equestrian

WA State Show jumping Championships

and The Blackwood Marathon.

OTT also provided sponsorship to 234

retired racehorse events and shows

throughout Western Australia.

Retired thoroughbred racehorse showjumping over the OTT jump at the Alcoa International Horse Trials at Fairbridge

Animal Welfare

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Greyhound WelfareRWWA is committed to ensuring that

the best levels of care are given to

greyhounds throughout all stages

of their lives, through a program of

investment, education, monitoring and

regulation. When a greyhound retires

from the racing industry, at any age,

RWWA will aim to have every healthy

and behaviourally sound greyhound

re-homed.

RWWA has a strict ‘Code of Practice

for the Keeping of Greyhounds’, which

outlines its expectations for the care of

greyhounds by all industry participants.

RWWA is proactive regarding greyhound

welfare and has implemented many

of the reforms from Commissioner

McHugh AC QC’s 2016 report on the

Special Commission of Inquiry into the

Greyhound Racing Industry in New

South Wales. The phased approach to

achieving these reforms is documented

in the 2017 RWWA Annual Report.

The central disciplines that make up an

effective welfare centric approach to

greyhound racing include;

1. Controlling supplyIn light of increased expectations

regarding rehoming greyhounds post

racing, reaching a state of equilibrium

between supply and demand is critical.

RWWA has implemented reforms aimed

at controlling the number of dogs in the

WA racing population while ensuring

race fields are maintained. Specifically,

RWWA is seeking to achieve this

balance through the introduction of:

stricter controls on breeding, breeding

licences and other measures targeted

towards supply; the introduction of

‘DAM’ registrations; a breeding review

panel; and through maximising racing

opportunities for greyhounds of all

abilities.

2. EducationRWWA is committed to ensuring

greyhound racing participants are

offered the highest level of training and

education to maintain a welfare centric

approach to breeding, rearing, training

and racing.

3. SocialisationThe early stages of a greyhound’s

life are extremely important for their

development and their early rearing

environment is critical for building

resilience. As part of RWWA’s ‘Code of

Practice for the Keeping of Greyhounds’

within the Western Australian Racing

Industry, young greyhounds must be

provided with a structured program

of controlled exposure to a range of

stimuli from an early age. The stimuli

should represent likely scenarios that

the greyhound will experience in later

life, such as exposure to other breeds

of dogs.

4. Minimising track injuriesRWWA is committed to ensuring that

euthanasia of greyhounds, where not

indicated for medical or behavioural

reasons, is prevented. In December

2017, RWWA introduced an Injury

Rebate Scheme designed to offer

more greyhounds the opportunity to

recover from a serious injury sustained

on the race track. Under the scheme,

if a greyhound sustains an injury on

the track and subsequently meets the

eligibility requirements, RWWA will

offer a financial contribution to help

the trainer/owner pay for the costs of

surgery.

Additionally, RWWA investigates,

assesses and reports on track injuries

and incidents that result in catastrophic

injury while racing. RWWA maintains

an injury recording system within the

greyhound racing database, OzChase.

This injury data is continually monitored

and trends analysed with a view to

improving safety and welfare where

possible. Through an infrastructure

grant from RWWA, the West Australian

Greyhound Racing Association (WAGRA)

purchased new track measuring devices

to collect data aimed at identifying

optimum track surface.

5. Increasing demandRWWA is committed to strategies aimed

at maintaining community demand

for greyhounds as pets. In working to

achieve this goal, RWWA increased

investment in the Greyhounds as Pets

(GAP) program.

6. Re-homingRWWA is committed to ensuring all

behaviourally sound greyhounds are

able to transition to life as a pet post

racing. In keeping with best practice,

RWWA introduced a rule change

effective 1 January 2018, requiring

all greyhounds to be sterilized prior

to rehoming unless the greyhound

is being accepted into an adoption

agency that undertakes sterilisation as

part of their rehoming practices. RWWA

implemented a Sterilization Rebate in

tandem with this rule to assist industry

participants to comply with increased

welfare requirements.

7. Tracking

RWWA is committed to full lifecycle

tracking of all greyhounds throughout

their racing career and into retirement.

RWWA greyhound Stewards have

continued to be active both in lifecycle

tracking retirements of greyhounds

through auditing industry compliance

with the submission of mandatory

Rule 106 retirement forms. These

requirements are being strictly enforced

by Stewards with penalties issued for

non-compliance. Greyhound Stewards

conducted 210 individual kennel/

property inspections in 2017/18.

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8. Consultation

The WA Greyhound Welfare Working

Group (GWWG) was established by the

Minister for Racing and Gaming, the

Hon. Paul Papalia CSC MLA, and Lisa

Baker MLA, Member for Maylands with

regular meetings facilitated by RWWA.

The aim of the group is to foster greater

collaboration between the greyhound

racing industry and major greyhound

welfare and adoption groups for the

advancement of greyhound welfare in

WA through all stages of a greyhounds

life.

Research and Education – RWWA has

conducted an analysis of data from the

past two years of injury records to gain

a better understanding of factors that

might contribute to the development

of hock fractures in greyhounds.

Collaboration is being sought from

researchers at Murdoch University to

assist with this data analysis, with a view

to identifying any contributing factors

that can be mitigated in order to prevent

occurrence of hock fractures.

Review of the use of barking muzzles –

On behalf of RWWA, Murdoch University

veterinary consultant in animal

behaviour, Dr Nicole Lobry de Bruyn,

completed a review into the use of

barking muzzles following a recent WA

ban off the back of recommendations

in the McHugh report. This independent

report confirmed the negative welfare

implications of barking muzzles and

reaffirmed the ban.

Optimum Track Design - A report from

the University of Technology Sydney

into optimal track design commissioned

by Greyhound Racing NSW outlined

a number of recommendations, both

long and short term to reduce injury

and ensure best practice. RWWA has

already implemented some of the short

term recommendations including the

implementation of hoop arm lures at

most racetracks.

Greyhound Retirement Data For the period 1 August 2017 to 31 July 2018, the following numbers of greyhounds were reported to RWWA by the latest

registered owners of persons responsible for the greyhounds at the relevant time, under requirements of greyhound rule of

racing LR106, as retired from racing or deceased.

Metric 2016/17* 2017/18* Variance

Adopted through GAP 245 270 10%

Adopted through other greyhound rehoming organisations 331 225 -32%

Adopted as pet to a third party (non-owner / trainer) 125 84 -33%

Adopted as pet to an owner / trainer 56 30 -46%

Retired for breeding 40 37 -8%

Total number of greyhounds retired 797 646 -19%

Deceased or euthanasia due to accidental death, natural causes, illness or age 82 55 -33%

Deceased or euthanasia due to racing related injury 83 74 -11%

Euthanasia not suitable for rehoming 53 43 -19%

Euthanasia not suitable for racing 7 0 -100%

Total number of greyhounds deceased 225 172 -24%

Total number of greyhounds retired or deceased 1022 818 -20%

* The data for 2017/18 was extracted from OzChase on 4 September 2018 and is correct as of that date whilst the data for 2016/17 was reported in the 2016/17 Annual Report (correct as of 10 October 2017). Minor variances in some data can occur over time as LR106 forms are received and processed on a continuous basis, and the status of individual greyhounds may be updated from time to time with new information received.

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This report has been prepared using the information on

greyhound racing injury, fatality and related euthanasia recorded

by on track veterinarians and Stewards at race meetings held in

WA and maintained in the OzChase system by RWWA. This is an

annual report covering the period 1 August 2017 to 31 July 2018

inclusive.

Injury severity classification All greyhounds with an on-track post-race or post-qualifying

trial veterinary reported injury have been included in this

report. As the injuries range from very mild and requiring no

incapacitation period (stand-down period) to catastrophic

injuries leading to death or euthanasia the rating guide in Table 1

has been used to categorise injury severity.

The examination of a greyhound post racing identifies any

injuries, including minor injuries such as general muscle

soreness, that potentially impacted its racing performance, and

thus the reporting of injuries has both an integrity and welfare

function. The period of incapacitation (stand down) prescribed

is intended to enable the greyhound to return to full race

fitness to resume competitive racing, above and beyond the

time required to overcome the reported injury. Accordingly the

examination and subsequent reporting is based on a high level

and conservative veterinary assessment of any injury, related

to the greyhound’s ability to compete at the required level of

racing, beyond the primary requirements for a more standard

welfare assessment.

Rating Incapacitation period Typical injury types

Minor Class I 0 days Mild skin abrasions/grazes

Minor Class II 1- 10 days Grade 1 muscle injury Minor skin laceration

Medium 11- 21 days Joint /ligament sprain Skin laceration Grade 2 muscle injury

Major Greater than 21 daysGrade 3 muscle injury

Bone fractures

Catastrophic Deceased or euthanased immediatelySevere skull or spinal trauma

Complex /open/joint fractures

Table 1: Greyhound injury rating guide indicating expected stand-down periods and examples of related injury types.

Between 1 August 2017 and 31 July 2018 (inclusive) 3,493

greyhound races and 170 qualifying trials were conducted

across WA at racing venues with a total of 25,562 race starters

and 744 qualifying trial starters (26,306 total starters). Table

2 details the number of injury incidents reported where a

greyhound with at least one injury was identified by an on track

veterinarian after participation in a race or qualifying trial in WA

during this period.

These injury incidents affected a total of 753 individual starters.

This equates to an injury incident being reported on track from

2.9% of official starters in races and qualifying trials. Of the total

reported injury incidents, 54% were of a minor nature requiring

either no stand-down period or a stand-down period of less

than 11 days. The percentage of starters affected by either a

Major or Catastrophic injury was 0.6%.

A 2018 review of consistency of incapacitation (stand-down)

periods by RWWA in conjunction with official track veterinarians

resulted in some minor and medium grade injuries attracting

slightly longer incapacitation periods during 2017/18. This has

provided increased recuperation time for greyhounds and may

be reflected in an overall lowering of the total injury rate from

3.5% in 2016/17 to 2.9% in 2017/18.

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Rating Incapacitation period Total numbers of injury incidents

Injury rate (injury inci-dents/1000 starts)

Injury rate as % of total starters

Minor Class I 0 days 46 1.7 (1.8) 0.17% (0.18%)

Minor Class II 1- 10 days 335 12.7 (22.0) 1.27% (2.20%)

Medium 11- 21 days 214 8.1 (6.6) 0.81% (0.66%)

Major Greater than 21 days 113 4.3 (3.6) 0.43% (0.36%)

Catastrophic Deceased or euthanased immediately

45 1.7 (1.4) 0.17% (0.14%)

Table 2: Number of race injury incidents, injury rates and severity reported at WA race meetings by on track veterinarians between 1 August 2017 and 31 July 2018. (Figures for 2016/17 in green)

Table 3: GAP key statistics outlining total number of adoptions, Greyhounds in foster care, pre-assessments undertaken and euthanasia’s.

Greyhounds as Pets (GAP)GAP is a program of RWWA. GAP’s mission is to promote, encourage and facilitate greyhound pet ownership to the wider

community through the provision of safe, healthy greyhounds to homes throughout Western Australia.

2015/16 2016/17 2017/18 Variance from 2016/17 – 2017/18

Adoptions 121 245 272 11%

Greyhounds in Foster 60 112 82 -26%

Pre-Assessments 99 432 367 -15%

Euthanasia at Kennels 16 18 14 -22%

Euthanasia % of Total Adoptions 13% 7% 5%

Note – while we endeavour to rehome all greyhounds, there will be times when humane euthanasia is the most compassionate and responsible course for the animal’s wellbeing and for public health and safety. GAP may euthanse animals, as either medically or behaviourally necessitated, who are found to meet criteria for unhealthy/untreatable/unadoptable animals.

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Image: GAP National Adoption Day 2018

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On Sunday 29 April 2018, GAP hosted

an inaugural National Adoption Day in

conjunction with five other states (QLD,

NSW, VIC, TAS, SA) in a consolidated

effort to rehome retired greyhounds.

The WA event was hosted at the GAP

Southern River facility with more than

300 members of the general public

attending and a record number of 60

greyhounds adopted to families across

the state.

During the year, GAP continued to grow existing partnerships and programs:

Bunbury Regional Prison

The Bunbury Prison Program provides

the opportunity for prisoners in the

pre-release unit to care for GAP foster

greyhounds for a period of six weeks.

The prisoners are entrusted with

the responsibility of caring for the

greyhounds, who learn basic obedience

and household manners to assist them in

preparing for life in their future adoptive

homes. Recognised for the positive

impact the program has on prisoners,

the facility doubled their commitment to

the program increasing the number of

dogs from two to five. In doing so they

expanded the initiative into the medium

security prison.

South Metropolitan TAFEThe GAP program expanded its

relationship with South Metropolitan TAFE

to include work experience at the kennel

facility. The existing program sees animal

studies students care for two foster

greyhounds to gain experience handling

and working with large breed dogs. Over

the year, 20 students who are completing

their Certificate III in Companion Animal

Services undertook their work placement

hours at the GAP facility. Five students

attended throughout the year who

are completing work placement hours

through other vocational education

programs.

School Visits One student attended from St Norberts

College completing the in-school

WorkPrep Program by completing

volunteer hours on site at GAP.

Also a relationship with Carey Baptist

College commenced for one day a term

for ten Year 11 students to come and

volunteer at the facility.

Volunteer ProgramOur volunteer program continues to be

very popular with approximately four

volunteers per day over the year coming

in to walk, groom and socialise our

greyhounds. The volunteer program

benefits our greyhounds hugely by giving

them extra handling and socialising with

our volunteers before becoming a forever

pet in a home.

Community EventsAs part of continuing the positive

positioning of greyhounds within the

Western Australian community, GAP has

attended many events this year including

the Perth Royal Show, Perth Cup Heats

and Final at Cannington, Sighthound

Club Show, RSPCA Million Paws Walk and

various community days.

Image: A rehomed Greyhound via GAP

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Racing Integrity

The WA Racing Industry is governed

by a unique model compared to most

other states where a Statutory Body

(RWWA) is charged with specialised

functions in relation to Racing (Part 4

Racing and Wagering Western Australia

Act 2003).

In this capacity, RWWA has all the

functions of the principal club/

controlling body in relation to

thoroughbreds, harness and

Greyhounds, however is precluded by

law from conducting race meetings

on its own behalf (S35(2)). This is an

important structural distinction which

provides a level of separation of powers

and governance from the actual

conduct of a race meeting which is

of benefit to the proper discharge of

integrity functions.

The objective of the Racing Integrity

Division is to maintain a level playing

field for racing participants through

the promotion of integrity, ethics and

fair play with a view of preventing all

methods or practices which might

jeopardise the integrity of racing.

Prohibited Substance ControlRWWA continues to invest heavily in

drug control, which represents some

$1.3m for analytical service costs alone.

The restrictions on drugs in racing,

which includes stimulants, analgesics

and anti-inflammatory drugs, not only

ensures the confidence of the betting

public that the results of races are

determined through honest means, but

also ensures that the animals competing

do so on their own merits without

compromising their welfare.

ChemCentre in Perth is contracted to

undertake the screening of all samples

taken by RWWA. Through the year they

have invested in acquiring additional

modern instrumentation to assist in

delivering a broader level of screening

for every post-race sample taken.

As a result of the greater breadth of

analysis of each sample an increase in

the number of detections of prohibited

substances has been seen. Such result

Thoroughbred Samples Positives

Post Race 1,987 10

TCO2 1,449 0

OOCT 123 0

Human 244 4

Harness Samples Positives

Post Race 1,658 9

TCO2 2,082 2

OOCT 70 0

Human 121 0

Greyhound Samples Positives

Post Race 1,199 7

OOCT 37 0

Table 1: Indicates total swabbing levels for the year 2017/18*.

(* Figures of positives correct as at 17 August but subject to variation upon subsequent reporting from ChemCentre)

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From a total of 8,605 horse or

greyhound swabs, 28 positive swabs

were recorded for the year. This figure

is inflated on previous years due to the

following, with only 10 positives for the

year resulting in penalty to the trainers.

Thirteen of the recorded positive swabs

were established on inquiry to involve

the ingestion of arsenic by horses

chewing Chromated Copper Arsenate

(CCA) treated timbers commonly used

in the construction of fencing and

paddocks. As such these positives were

not the result of deliberate treatments

but rather environmental factors. In

some cases several horses housed in

the same environment from a single

trainer exceeded the threshold which

resulted in those horses concerned

being disqualified from the races they

won with no other penalties recorded

against the trainers in view of the

circumstances.

Various warnings to industry have been

publicised through the year with respect to

horses exposure to CCA treated timbers.

The broadening of screening has also

seen an increase in the number of

cobalt positives for the year to nine.

Of the remaining six positives, with the

exception of the two which related

to TCO2, there was one positive to

the stimulant caffeine in Greyhounds

with the remaining three being of a

therapeutic nature.

The increased level of positives for

2017/18 is evident in the following chart.

Greyhounds

Harness

Thoroughbreds

07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18

100

99.5

99

98.5

98

Per

cent

age

Positive Swabs

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The level of swabbing relative to percentage of winners across all three codes is represented graphically as follows and has been

consistently maintained.

InquiriesThe Western Australian Racing industries are recognised

nationally as having the strongest approach to integrity

matters with the range of penalties for serious offences at

the upper end of the spectrum when compared to national

penalties. This strong approach, particularly in matters

of animal welfare, assists in maintaining the image and

reputation of the racing industries as being properly regulated.

The following refers to matters of a serious nature that have

been dealt with by the RWWA Primary Inquiries Panel that

is Chaired by the General Manager Racing Integrity and

comprised of the Senior Integrity Officers across the codes

who are empanelled to determine matters in accordance with

the rules of racing. Parties called to such proceedings are

often represented by Senior Counsels with decisions made

in accordance with the principles that apply to domestic

tribunals.

Code Total Inquiries Appeals Disqualifications Suspensions Fine Reprimands

Thoroughbred 8 3 4 - 3 -

Harness 19 12 8 - 9 -

Greyhound 8 4 7 1 - -

Total 35 19 19 1 12 -

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07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18

20

30

40

50

60

70

80

90

100

10

Winners Swabbed

Greyhounds

Harness

ThoroughbredsPer

cent

age

40

The results of the determinations in

respect of the racing codes for the

year 2017/18 are summarised below.

(Courtesy RPAT Annual Report)

During the year, four appeals were carried

over from 2016/17 and 19 new appeals

were lodged with the Tribunal. As at 30

June 2018, the Tribunal had determined

20 appeals, including four from the

previous year, with three appeals being

carried over to 2018/19. These appeals,

together with appeals from the previous

year, are summarised by racing code:

Racing Code Appeals carried over to 2017-18 Appeals Lodged Appeals

DeterminedAppeals carried over

to 2018-19

Thoroughbred 0 3 3 0

Harness 2 12 11 3

Greyhound 2 4 6 0

TOTAL 4 19 20 3

Racing Appeals

Performance Summary for 2017/18

The results of the determinations in respect of the racing codes for the year 2017-18 are summarised below.

2017/2018

Results Thoroughbred Harness Greyhound

Allowed in Full 0 2 0

Allowed in Part (Penalty Reduced) 2 1 3

Referred Back to Stewards (RWWA) 0 1 0

Dismissed 1 6 2

Withdrawn 0 1 1

Leave to Appeal Refused 0 0 0

TOTAL 3 11 6

Appeals Carried Over to 2018/19 Thoroughbred Harness Greyhound

Reserved Decision 0 1 0

Reserved Decision on penalty only 0 0 0

Reasons to be published 0 0 0

Yet to be heard 0 2 0

TOTAL 0 3 0

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Stays of ProceedingsIn 2017/18, there were six applications for stays of proceedings. The Chairperson made the determinations as follows:

Stays of Proceedings 2017/18

Results Thoroughbred Harness Greyhound

Stays Granted 0 0 1

Stays Refused 0 4 1

Withdrawn 0 0 0

TOTAL 0 4 2

Image: Port Hedland Turf Club

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Image: WA Country Cups Fashion on the Fields Gascoyne Regional Heat winner Sam Wells

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Racing Marketing and Communications

The Racing Marketing division has

promoted RWWA’s key objectives

through its media assets, developing

and implementing racing marketing

plans aimed at:

• Increasing on-course attendance

• Promoting animal ownership

• Repositioning the brand of racing

• Promoting careers in racing

The Racing Marketing Strategy requires

strong stakeholder engagement across

the racing industry, ensuring the local

industry has a role to play in the process

is critical to the overall success of the

division’s objectives.

Key Achievements in 2017/18:• Expanded Owners Only into the

acquisition phase via:

- The launch of the ‘Own the

Dream Events Series’

incorporating the ‘Win a Share

in a Racehorse’ competition

- Facilitating events for Public

Promoters of Syndication for

thoroughbreds and harness

• Continuation of the WA Country

Cups brand, including:

- Showcasing the Regions

- WA Country Cups Fashions

on the Field competition

• Launched the Careers in Racing

digital marketing campaign

• Digital marketing promotions for

Perth Cup and Galaxy

Owners OnlyOwners Only, RWWA’s dedicated

ownership program, is designed to

recognise and reward current Western

Australian racing animal owners, with

the ultimate intention being to attract

new participants to the industry.

A number of events were held in

partnership with Public Promoters of

Syndication for both thoroughbred and

harness racing enthusiasts, the sole

intention facilitating the selling of shares

in available horses.

Own the Dream Events Series

A collaboration with Magic Millions

and Thoroughbred Breeders WA led to

promoting WA’s Thoroughbred

Yearling Sale, and the important lead up

period, under a uniform brand. From

this the “Own the Dream Events Series”

came to fruition. Driven by Racing and

Wagering WA’s Owners Only initiative,

the series of nine events ran for a

four-week period showcasing behind

the scenes insight into the racing

industry, providing potential owners the

opportunity to engage with WA’s racing

industry participants.

The announcement of Brittany Taylor

as an Ambassador for Owners Only

saw a competition to ’Win a Share in

a Racehorse’ come to life. Running

concurrently with the Own the Dream

Events Series, the competition was

aimed at educating prospective

owners about the various facets of the

industry. The strategy was to incentivise

interested parties to participate in

the series with the draw card being

the opportunity to win a share in a

racehorse, 92 teams encompassing

over 440 people took part.

The acquisition strategy for ownership

in 2018/19 will be rolled out

progressively throughout the season.

Image: Owners Only Ambassadors Brittany Taylor and Rick Hart with retired race horse Mynameskenny

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WA Country CupsWA Country Cups is an initiative run by

RWWA to foster the development and

promote the longevity of country racing

across the State. WA Country Cups

works with regional race clubs and local

communities to further promote their

major race meetings, to showcase not

only the race events themselves but also

local tourism and fashion.

Showcasing the RegionsRWWA, via WA Country Cups,

continued to produce promotional

videos for regional areas, which

feature the nominated race days and

their surrounding local attractions.

Further promoting and enhancing the

country racing ‘experience’ by not only

showcasing major race events but

also showcasing tourist attributes of

the region (e.g. local attractions, local

produce and landmarks), and using these

celebrated racing events as a focal point.

Fashions on the FieldRWWA, incorporating WA Country Cups

and Community TAB, continued the

WA Country Cups Fashions on the Field

initiative. The initiative is a state-wide

racing fashion competition consisting

of nine regional heats held at major

race meetings across the State. The

culmination is a final at Ascot Racecourse

on Winterbottom Stakes Day with finalists

competing for a racing holiday and

spending money at Royal Ascot, United

Kingdom, thanks to TABtouch.

In addition to the nine nominated regional

heats, any winner of a Western Australian

regional Fashions on the Field competition

is able to enter into an online ‘Wildcard

Competition’.

The three entrants with the most votes

were also invited to Ascot where one of

the top three were selected to join the

regional heat finalists in the Final. The

overall 2017/18 winner Elizabeth Winlo was

a wildcard entrant and a very deserving

winner.

Image: WA Country Cups Fashions on the Field Final 2017 - Francesca Cumani and winner Elizabeth Winlo

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“The Racing Marketing Strategy requires strong stakeholder engagement across the racing industry, ensuring the local industry has a role to play in the process is critical to the overall success of the division’s objectives”

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Images: Careers in Racing Marketing Campaign

Careers in Racing (CIR)One of the biggest challenges concerning racing nationally

is the industry’s ability to recruit, develop and retain skilled

apprentices and jockeys, therefore ensuring the sustainability

of racing. RWWA ran a short-term marketing campaign to

promote CIR in WA, in particular apprentice jockeys. The

campaign formed the basis of an ongoing, overarching

marketing strategy for recruitment and retention. Part of this

has been a brand refresh utilising strong branding elements

(font, imagery, music and voiceover) to present careers in

racing as a strong competitor in the elite athlete education

arena and therefore attractive to the target audience.

Racing Marketing and Communications

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events award image here?

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Perth Cup and Galaxy (Greyhounds)Vision from the 2017 Leap Lead Love campaign was repurposed to promote the Perth Cup Carnival, incorporating the two

Group 1 Greyhound features, SKY Racing Perth Cup and SKY Racing Galaxy. This was a joint marketing initiative with WAGRA.

A digital campaign including Seven West Media assets and social media was used to promote the events with exposure also on

SKY Racing.

EventsAnnual awards events funded by RWWA and coordinated by Racing Marketing were held to showcase the contribution by the

people and animals of the racing industry across all three codes. These included:

• Country Racing Association Awards

• Apprentice Jockey of the Year Awards

• Harness Horse of the Year Awards

• Greyhound of the Year Award

Image: 2017 Harness Horse of the Year Awards - Gareth Hall and Bob Harnett

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Image: TABtouch Better your bet campaign

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Wagering

The Wagering division is responsible for

the functions of the Western Australian

TAB including sales, marketing and

wagering operations. The sales channels

include an exclusive retail licence

containing a network of more than 330

TAB agencies, hotels and clubs, as well

as the TABtouch account channels in

mobile, internet and call centre. The

WA TAB offers totalisator and fixed

odds betting on racing and sporting

events. It is also the commercial selling

agent for SKY Racing, which broadcasts

thoroughbred, harness and greyhound

racing into WA TAB agencies.

In 2017/18 the WA TAB successfully

maintained its wagering dominance

in Western Australia and increased

its market share from the east coast.

TABtouch was highly competitive in the

online market with a strong customer

experience in racing and a competitive

sports offer.

Key highlights for 2017/18 include:

• 1.78% growth in core wagering turnover

• 21.90% growth in turnover from mobile devices

• 10.4% growth in fixed odds turnover

• Active TABtouch account customers up 5.70%

• 16 x TAB Racewall and Terminal installations

TABtouch Digital Customers wagering by mobile device

grew by 21.9% in 2017/18 as a result of

targeted investment and migration from

other wagering channels. The increase

in mobile betting enables TABtouch

to deliver more customer value to

individual customers.

The Wagering and technical teams have

co-located into one refurbished office

space as part of the broader change

program to support RWWA’s shift to

operating a scaled agile delivery model.

This shift is already seeing a continued

focus on delivering value to customers

based on their feedback, while blending

the delivery of technical capability and

addressing all new legislation changes

that have been introduced over the last

12 months.

TABtouch mobile still has a considerable

growth opportunity, hence, a

continuous improvement approach has

been adopted to ensure the customer

experience evolves, including:

• Enhanced wagering product

offering through existing and new

contracted arrangements;

• Targeted development of the

TABtouch mobile and internet

platforms for a better customer

experience;

• Focus on customer experience and

building a differentiated position in

the market;

• Matching competitors on

sports product and price whilst

differentiating with unique offers;

and

• Enhanced view of customer data,

insights and analytics to understand

customers better.

TAB RetailA key part of RWWA’s strategic plan

has been to invest in its exclusive

retail wagering license. The Racewall

technology was installed in 16 agencies

during 2017/18 with investment targeted

toward hotels and high turnover full-

time TAB agencies.

The Racewall has been embraced

by TAB Agents and customers alike.

The investment in the paperless

systems delivers TAB Agents a more

labour efficient race-day whilst their

customers can access the next six

races to jump with a direct tote to fixed

odds comparison, expert ratings and

traditional racing information.

Racewalls are complemented by

market-leading customer terminals that

offer extended racing information, form

and ratings plus cash and cashless self-

service betting. The increasing customer

acceptance of self-service betting

terminals has seen terminals account for

69% of sales in licensed outlets and 60%

of RWWA’s total retail sales.

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Image: Netball WA Aboriginal programs sponsored by Community TAB

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Corporate Social Responsibility (CSR) is

the way a business takes into account

the financial, environmental and social

impacts of decisions and actions it is

involved in. Effective CSR guides and

contributes to the sustainability of

RWWA, is recognised as good business

practice and is increasingly expected

by stakeholders. Community TAB is the

brand that is responsible for upholding

the CSR of RWWA externally and

internally.

Major PartnersA new partnership was entered into

in 2017/18 between Community

TAB and the Netball WA Aboriginal

Grassroots and All Stars Programs.

This new partnership saw a $40K

contribution from Community TAB to

Netball WA to support their delivery

of these programs and items such as

equipment, uniforms, coaches, umpires

and off court education programs for

the 10 Aboriginal Grassroots Sites. The

partnership allows RWWA through

Community TAB to help Netball provide

a positive environment and nurtures

local role models to improve health

and wellbeing and build sustainable

capacity for regional towns and

local communities. As well as this

contribution Community TAB sponsored

300 starter packs for players around

the State and provided volunteers and

support at various Netball WA events.

Community TAB was the major partner

for Lifeline WA’s ‘Lights for Lifeline’

campaign for the fourth year in a row

during 2017/18. The campaign shone

a light on suicide prevention during

the festive period when demand

for Lifeline’s crisis support services

are highest. The partnership saw a

contribution of $25K to directly support

the training of new crisis support

volunteers and help their service run

24/7. This brings Community TABs total

sponsorship contribution to Lifeline

over the course of the partnership to

$200K not including other informal

contributions. Lifeline WA provided

speakers at RWWA events and RWWA

fundraised for Lifeline WA through

various internal activities.

A fourth year of partnership between

Community TAB and Riding for the

Disabled WA (RDAWA) was completed in

2017/18 which saw a fourth sponsorship

donation of $80K to the organisation

to support their program development

and ensure high standards of animal

welfare for RDA horses around the

State. RWWA employees volunteered

their time at RDAWA events such as

the RDA State Games and Community

TAB was sponsor of the Games as well

as the RDA Awards. RDAWA has 19

riding centres statewide, which assist

more than 1,000 riders with disabilities

to enjoy safe, fun and therapeutic

recreational riding. This service has

proved to help the physical and mental

well-being of children and adults with

disabilities.

Community SportIn November 2017, Community TAB

launched the Community TAB Sports

Grants. Since launching the grants

360 applications for grants have been

received from sporting clubs in regional

and metropolitan WA. To date 16 grants

Corporate Social Responsibility

Image: Riding for the Disabled State Games at Fairbridge Village, Pinjarra

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of up to $4K have been awarded to

clubs. Community TAB was sponsor of

the Integrated Football Program again

in 2017/18 through the sponsorship of

the Wembley Integrated Football Team,

Willetton Integrated Football Team and

the WA State Integrated Team who

travelled to Tasmania to compete against

all other States. The Integrated Football

Program caters for men and women with

intellectual disabilities who want to play

in an amateur football team.

Over the past 10 years more than $30M

of funding has gone to the Department

of Sport and Recreation, and in 2017/18

the contribution was close to $4.6M.

Some of the prominent sport and

recreation organisations and programs

that are funded by the TABs contribution

include the WA Sports Federation, Parks

and Leisure WA, Hockey WA, Royal

Life Saving Society WA, Westcycle,

Club Development Officer Scheme,

Annual Grants Scheme, Football West

and Sports Medicine. Through these

programs hundreds of sporting clubs,

teams, athletes and organisations are

funded to help grow the WA community

physically, socially and economically.

Community TAB continued to promote

the programs that are sponsored through

this contribution.

Racing Industry SupportSince February 2015, Community TAB

has been running a program with WA

race clubs to fundraise for not-for-profit

groups in their communities. In 2017/18

Community TAB once again asked WA

race clubs to choose a not-for-profit

organisation in their community, give

them the opportunity to fundraise at a

major race day, and Community TAB will

match what is raised for the community

partner. In 2017/18, Community TAB has

had 32 partnerships with race clubs and

has matched nearly $50K in fundraising.

The total amount of funds raised and

matched by Community TAB since

the inception of the Program is over

$465K. Some community groups that

have benefited from the project include,

Isolated Children and Parents Association,

Give Me 5 for Kids, Men’s Shed, Lions

Club, Royal Flying Doctor Service, various

St John Ambulance Sub Centres, Full

Circle, SAFE, South West Bushfire Relief,

Breast Cancer Care WA and Beyond Blue.

In 2017 Community TAB was the brand

that supported Team Teal on behalf of

RWWA. The campaign saw eight female

WA harness drivers take part in the

initiative where RWWA donated $200 to

the Women’s Cancer Foundation every

time one of the drivers won a race.

Image: Community TAB and Netball WA Partnership at the Kwinana Grassroots site

Corporate Social Responsibility

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Nearly $5k was donated to the

Foundation to fund ovarian cancer

research. Some WA race clubs also

supported the campaign by fundraising

on race days.

Awards SponsorshipsCommunity TAB was sponsor of the WA

Regional Achievement and Community

Awards in 2017/18, as a Category

Sponsor of the Community Service

Award. The Community Service Award

recognises individuals or groups who

make a significant contribution through

community service or social justice

initiatives in the areas of culture, health,

emergency services or education. The

awards have been in place for the past

16 years and are designed to encourage,

acknowledge and reward the valuable

contributions individuals, communities

and businesses are making throughout

regional and rural WA.

In 2017/18, Community TAB was a

Category Sponsor of the WA Sports Star

Awards. Community TAB was sponsor

of the Official of the Year Award and the

Award Ceremony was attended by many

high profile personalities and athletes

and was aired on television.

Community TAB was also a Major

Sponsor of the Parks and Leisure WA

Awards also in 2017/18. The annual

awards recognise outstanding initiatives

and innovative effort of people who

create opportunities for the good use

of leisure time for a number of social,

environmental and economic benefits

to the community.

Internal EngagementCommunity TAB has become even more

responsible for internal engagement at

RWWA over the past 12 months. Stress

Down Day, Responsible Gambling

Week, Purple Bra Day, Mental Health

Week, RSL fundraising are examples of

initiatives that are communicated and

organised through Community TAB to

enhance employees and community

engagement. Community TAB has also

worked closely with Human Resources

at RWWA to align the CSR and Wellness

Programs at RWWA.

Employees are given opportunities to

take part in volunteering as an individual

or as a team. Employees are welcome

to volunteer with Community TAB

major partners or organise volunteering

opportunities outside of these partners.

All volunteering opportunities for

employees are communicated through

Community TAB.

In 2017/18, Community TAB continued

the RWWA Not-For-Profit Recognition

Program where RWWA employees

nominate organisations that they think

deserve a donation. RWWA employees

vote and each month one organisation

receives a donation of $500 from

Community TAB. Since the launch of

this program, 28 nominations have

been received and 17 organisations have

received donations.

Image: TAB agencies fundraise for the RSL WA each year

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Full Page Image here

Image: Hannans Handicap Kalgoorlie 2017

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People and Culture

Whilst the uncertainty of privatisation

continued to be an external factor

for employees, we pursued initiatives

and strategies designed to enable the

organisation to achieve its business

outcomes through its people. Within

the reporting period, RWWA conducted

a staff engagement survey, which was

previously conducted in 2015.

The overall results were fairly balanced,

with some good progress made

in key engagement areas however

it also identified opportunities for

improvement. The feedback captured

from this survey became the foundation

on which a variety of activities were

initiated to enhance and improve on

RWWA’s key engagement drivers. There

was also a greater focus employed

by the RWWA leadership team, with

the creation of engagement working

groups, to establish ways engagement

drivers could be improved such as clear

measures and strategy, recognition and

team effectiveness.

Further activities conducted throughout

the year included the continuation of

existing successful programs such as

the leadership learning groups, bite

size learning and emerging leaders.

There was also the introduction of

new initiatives. Through the use of

technology RWWA was able to further

enhance employees’ engagement at the

workplace through the use of Hyphen, a

mobile activated pulse survey tool.

This tool allowed for a more ‘real-time’

assessment of employees’ sentiment and

in turn provided greater awareness for

the organisation of areas of concern that

required addressing. The introduction

of a broader wellness program, which

included the introduction of an eight

week mindfulness program, and a

commitment to an Inclusion & Diversity

program, were two such initiatives

that gained traction and support by

employees over the course of the year.

RWWA has continued to maintain

high staff retention rates across the

business and this is testament to an

ongoing commitment to invest in our

people, with the aim of building a high

performing workforce and continually

improving staff engagement.

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Chapter 3: Disclosures and Legal Compliance

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Image: Carnarvon Ladies Day, Saturday 9 June 2018

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Opinion of the Auditor General

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Opinion of the Auditor General

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Certification of Financial Statements

For the year ended 31 July 2018

The accompanying financial statements of Racing and Wagering Western Australia have been prepared in compliance

with the provisions of the Financial Management Act 2006 from proper accounts and records to present fairly the

financial transactions for the financial year ended 31 July 2018 and the financial position as at 31 July 2018.

At the date of signing we are not aware of any circumstances which would render the particulars included in the

financial statements misleading or inaccurate.

Jeff Ovens

Chairman RWWA Board

15 October 2018

Anthony Hasluck

Chairman Audit and

Risk Committee

15 October 2018

Ian Edwards

Chief Financial Officer

15 October 2018

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Statement of Comprehensive IncomeFor the year ended 31 July 2018

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Racing and Wagering Western AustraliaStatement of Comprehensive IncomeFor the year ended 31 July 2018

Income Notes 2018 2017$000 $000

RevenueMargin 6 321,514 314,694 Interest Revenue 2,146 2,048 Other Revenue 9 22,625 21,127

Total Revenue 346,285 337,869

Gains

Gains on disposal of non-current assets 10 35 180 Total Gains 35 180

Total Income 346,320 338,049

Expenses

ExpensesCost of Sales 7 84,557 80,047 Wagering Tax 8 41,510 40,351 Racing Services 11,41 24,413 19,244 Wagering Services 11,41 84,757 85,508 Support Services 11,41 29,652 29,763 Grants and Subsidies to racing 12 16,697 17,294 Distribution to racing and sports 13 146,541 138,895

Total Expenses 428,127 411,102

Loss before Grants and Subsidies from State Government (81,807) (73,053) Grants and Subsidies from State Government (a) 27 72,710 67,973

Loss for the period (9,097) (5,080)

Other Comprehensive Income

Items not reclassified subsequently to profit or lossChanges in asset revaluation surplus 28 (507) (1,595) Total other comprehensive income (507) (1,595)

Total Comprehensive Income for the period (9,604) (6,675)

See also Note 41 'Schedule of Income and Expenses by Service'The Statement of Comprehensive Income should be read in conjunction with the accompanying notes.

(a) Government grants include WA Racefields income (see note 27)

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Statement of Financial Position

As at 31 July 2018

Racing and Wagering Western AustraliaStatement of Financial PositionAs at 31 July 2018

Assets Notes 2018 2017$000 $000

Current AssetsCash and cash equivalents 29 74,733 67,205 Restricted cash and cash equivalents 14 1,060 1,455 Other Financial Assets 31 10,023 20,000 Inventories 15 743 811 Receivables 16 3,655 2,258 Other Current assets 18 4,154 4,377 Non-Current assets classified as held for sale 19 388 434

Total Current Assets 94,756 96,540

Non-Current AssetsInvestments 17 455 455 Other Non-Current assets 18 310 286 Property, Plant and Equipment 20 51,515 44,751 Capital Works In Progress 22 4,250 3,439 Intangible Assets 23 18,338 19,714

Total Non-Current Assets 74,868 68,645

Total Assets 169,624 165,185

Liabilities

Current LiabilitiesPayables 25 45,059 39,316 Provisions 26 7,251 7,292

Total Current Liabilities 52,310 46,608

Non-Current LiabilitiesPayables 25 1,080 1,095 Provisions 26 1,179 984

Total Non-Current Liabilities 2,259 2,079

Total Liabilities 54,569 48,687

Net Assets 115,055 116,498

Equity

Contributed Equity 28 69,045 60,884 Reserves 28 46,010 55,614

Total Equity 115,055 116,498

The Statement of Financial Position should be read in conjunction with the accompanying notes.

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Statement of Changes in EquityFor the year ended 31 July 2018

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Racing and Wagering Western AustraliaStatement of Changes in EquityFor the year ended 31 July 2018

NoteContributed

EquityGeneral

Reserves

Asset Revaluation

ReservesRetained Earnings Total Equity

$000 $000 $000 $000 $000

Balance at 1 August 2016 28 60,884 43,076 19,214 - 123,174

Surplus/(deficit) - - - (5,080) (5,080) Other comprehensive income - - (1,595) - (1,595)

- - (1,595) (5,080) (6,675) Transactions with owners in their capacity as owners:

Capital appropriations - - - - - Other contributions by owners - - - - - Transfers between reserves - (5,080) - 5,080 - Distributions to owners - - - - -

Total - (5,080) - 5,080 -

Balance at 31 July 2017 60,884 37,996 17,619 - 116,498

Balance at 1 August 2017 60,884 37,996 17,619 - 116,498

Surplus/(deficit) - - - (9,097) (9,097) Other comprehensive income - - (507) - (507)

- - (507) (9,097) (9,604) Transactions with owners in their capacity as owners:

Capital appropriations - - - - - Other contributions by owners 8,161 - - - 8,161 Transfers between reserves - (9,097) - 9,097 - Distributions to owners - - - - -

Total 8,161 (9,097) - 9,097 8,161

Balance at 31 July 2018 69,045 28,899 17,111 - 115,055

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

Total comprehensive income for the year

Total comprehensive income for the year

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Statement of Cash Flows

Racing and Wagering Western AustraliaStatement of Cash FlowsFor the year ended 31 July 2018

Cash Flows from Operating Activities Notes 2018 2017$000 $000

ReceiptsReceipts from customers 2,018,558 1,974,285 Interest received 2,148 2,048 GST receipts on sales 40,154 38,126 Other receipts 14,052 14,233

PaymentsCustomers (1,685,970) (1,648,028) Creditors (201,710) (197,341) Employee benefits (40,781) (39,723) Distributions, Grants and Subsidies (163,238) (156,189) Interest paid (15) (16) GST payments on purchases (18,517) (17,081) GST payments to taxation authority (21,936) (21,311) Other payments (6,170) (6,031)

Net cash used in operating activities 29 (63,425) (57,028)

Cash Flows from Investing Activities

ReceiptsProceeds from sales of non-current assets 80 285 Proceeds from investments in unit trusts 9,977 -

PaymentsPurchase of non-current physical assets (12,209) (7,547) Payments for investments in unit trusts - (20,000)

Net cash used in investing activities (2,152) (27,262)

Cash Flows from State Government

Government Grant reimbursement 72,710 67,973 Net cash provided by State Government 72,710 67,973

Net increase/(decrease) in cash and cash equivalents 7,133 (16,317) Cash and cash equivalents at the beginning of period 68,660 84,977

Cash and cash equivalents at the end of period 29 75,793 68,660

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

For the year ended 31 July 2018

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1. Australian Accounting StandardsGeneral RWWA’s financial statements for the

year ended 31 July 2018 have been

prepared in accordance with Australian

Accounting Standards. The term

‘Australian Accounting Standards’

includes Standards and Interpretations

issued by the Australian Accounting

Standard Board (AASB).

RWWA has adopted any applicable,

new and revised Australian Accounting

Standards from their operative dates.

Early adoption of standards RWWA cannot early adopt an Australian

Accounting Standard unless specifically

permitted by Treasurer’s Instruction

(TI) 1101 ‘Application of Australian

Accounting Standards and Other

Pronouncements’. There has been no

early adoption of any other Australian

Accounting Standards that have been is-

sued or amended (but not operative) by

RWWA for the annual reporting period

ended 31 July 2018.

2. Summary of significant accounting policies(a) General Statement RWWA is a not-for-profit reporting

entity that prepares general purpose

financial statements in accordance with

the Australian Accounting Standards, the

Framework, Statements of Accounting

Concepts and other authoritative

pronouncements of the AASB as applied

by the Treasurer’s Instructions. Several

of these are modified by the Treasurer’s

Instructions to vary application,

disclosure, format and wording.

The Financial Management Act 2006

and the Treasurer’s Instructions impose

legislative provisions that govern the

preparation of financial statements and

take precedence over the Australian

Accounting Standards, the Framework,

Statements of Accounting Concepts and

other authoritative pronouncements of

the AASB.

Where modification is required and has

had a material or significant financial

effect upon the reported results, details

of that modification and the resulting

financial effect are disclosed in the notes

to the financial statements.

(b) Basis of Preparation The financial statements have been

prepared on the accrual basis of

accounting using the historical cost

convention, except for land and building

and other financial assets which have

been measured at fair value.

The accounting policies adopted in the

preparation of the financial statements

have been consistently applied

throughout all periods presented unless

otherwise stated.

The financial statements are presented

in Australian dollars and all values are

rounded to the nearest thousand dollars

($’000).

Note 3 ‘Judgements made by

management in applying accounting

policies’ discloses judgements that have

been made in the process of applying

RWWA’s accounting policies resulting in

the most significant effect on amounts

recognised in the financial statements.

Note 4 ‘Key sources of estimation

uncertainty’ discloses key assumptions

made concerning the future and other

key sources of estimation uncertainty

at the end of the reporting period,

that have a significant risk of causing

a material adjustment to the carrying

amounts of assets and liabilities within

the next reporting period.

(c) Reporting Entity

The reporting entity comprises Racing

and Wagering Western Australia (RWWA).

(d) Contribution equityAASB Interpretation 1038 Contributions

by Owners Made to Wholly-Owned

Public Sector Entities requires transfers

in the nature of equity contributions,

other than as a result of a restructure

of administrative arrangements, to be

designated by the Government (the

owner) as contributions by owners (at

the time of, or prior to transfer) before

such transfers can be recognised

as equity contributions. Capital

appropriations have been designated

as contributions by owners by TI 955

Contributions by Owners made to

Wholly Owned Public Sector Entities

and have been credited directly to

Contributed Equity.

The transfers of net assets to/from

other agencies, other than as a result

of a restructure of administrative

arrangements, are designated as

contributions by owners where the

transfers are non-discretionary and

non-reciprocal.

(e) Income Revenue RecognitionRevenue is recognised and measured at

the fair value of consideration received

or receivable.

Revenue is recognised for the major

business activities as follows:

Betting ReceiptsThis represents bets taken net of

monetary prizes and GST. Revenues

are only recognised when the events to

which they relate are finalised.

InterestInterest income is accrued on a time

basis by reference to the outstanding

principal and the effective interest rate

applicable.

Notes to the Financial Statements

For the year ending 31 July 2018

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Unclaimed DividendsIn accordance with the RWWA Act

2003 (section 104), dividends that

are not claimed within seven months

are included as income under Other

Revenue.

GainsThe gain or loss on the disposal of assets

is recognised at the date the significant

risks and rewards of ownership of the

asset passes to the buyer, usually when

the purchaser takes delivery of the

asset. The gain or loss on disposal is

calculated as the difference between

the carrying amount of the asset at the

time of disposal and the net proceeds on

disposal.

Government Grants and SubsidiesThe Western Australian Government

provides partial reimbursement for GST

paid on RWWA’s margin and partial

reimbursement for Wagering Tax paid on

VIP turnover.

Under the Gaming and Wagering

Commission Act 1987 (section 110B), the

Gaming and Wagering Commission may

credit RWWA with the proceeds collected

under the Western Australian Race Fields

legislation. The Racing and Wagering

Western Australia Act 2003 (section 107A)

requires these funds to be credited into a

special purpose account and distributed

to registered racing clubs in Western

Australia. Treasurer’s Instruction 1102

requires these amounts to be disclosed as

Grants from the State Government.

Royalties for Regions funds, as well

as contributions received through

the Racecourse Infrastructure Grants

Program, are recognised as revenue at

fair value in the period in which RWWA

obtains control of the funds. RWWA

obtains control of the funds at the time

the funds are deposited into RWWA’s

bank account.

(f) Tax

Section 102 of the Racing and Wagering

Western Australia Act 2003 requires

RWWA to pay tax in respect of bets at the

rate imposed by Sections 4 and 5 of the

Racing and Wagering Western Australia

Tax Act 2003.

State Wagering Tax The tax rate for Parimutuel Sports betting

is 5.0% of turnover, whereas the tax rate

for Parimutuel Racing is 11.91% of gross

revenue. The tax rate for Fixed Odds

Betting (FOB) Sports is 0.5% of turnover

and FOB Racing is 2.0% of turnover.

(g) Goods and Services Tax (GST)Revenues, expenses and assets are

recognised net of GST, except where

the amount of the GST incurred is not

recoverable from the Australian Taxation

Office (ATO). In these circumstances, the

GST is recognised as part of the cost of

acquisition of the asset or as part of the

expense.

The net amount of GST recoverable from,

or payable to, the ATO is included as a

current asset or liability in the Statement

of Financial Position.

Cash flows are included in the Statement

of Cash Flows on a gross basis. The

GST components of cash flows arising

from investing and financing activities

which are recoverable from, or payable

to, the ATO are classified as operating

cash flows. The GST on operator’s

margin, which is partially reimbursed

by the Western Australian Government,

is classified as cash flows from State

Government.

(h) Property, Plant and Equipment

Capitalisation/expensing of assets

Items of property, plant and equipment

costing over $5,000 are recognised as

assets and the cost of utilising assets is

expensed (depreciated) over their useful

lives. Items costing less than $5,000

are expensed direct to the Statement

of Comprehensive Income (other than

where they form part of a group of similar

items which are significant in total).

Initial recognition and measurement

All items of property, plant and

equipment are initially recognised at cost.

For items of property, plant and

equipment acquired at no cost or for

nominal cost, the cost is the fair value at

the date of acquisition.

Subsequent measurement

Subsequent to initial recognition as an

asset, the revaluation model is used

for the measurement of land and

buildings and the historical cost for all

other property, plant, equipment and

infrastructure. Land and buildings are

carried at fair value less accumulated

depreciation (buildings only) and

accumulated impairment losses. All

other items of property, plant and

equipment are carried at historical cost

less accumulated depreciation and

accumulated impairment losses.

Where market-based evidence is

available, the fair value of land and

buildings is determined on the basis

of current market buying values

determined by reference to recent

market transactions. When buildings

are revalued by reference to recent

market transactions, the accumulated

depreciation is eliminated against the

gross carrying amount of the asset and

the net amount restated to the revalued

amount.

In the absence of market-based

evidence, the fair value of land and

buildings is determined on the basis of

existing use. This normally applies where

buildings are specialised or where land

use is restricted. Fair value for existing

use assets is determined by reference

to the cost of replacing the remaining

future economic benefits embodied

Notes to the Financial Statements

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in the asset i.e. the depreciated

replacement cost. Where the fair value

of buildings is determined on the

depreciated replacement cost basis, the

accumulated depreciation is eliminated

against the gross carrying amount of

the asset and the net amount restated

to the revalued amount. Fair value for

restricted use land is determined by

comparison with market evidence for

land with similar approximate utility

(high restricted use land) or market value

of comparable unrestricted land (low

restricted use land).

Land and buildings are independently

valued annually by the Western

Australian Land Information Authority

(Valuation Services) and recognised

annually to ensure that the carrying

amount does not differ materially from

the assets’ fair value at the end of the

reporting period.

Infrastructure is carried at historical

cost less accumulated depreciation and

accumulated impairment loss.

The most significant assumptions and

judgements in estimating fair value are

made in assessing whether to apply

the existing use basis to assets and in

determining estimated economic life.

Professional judgement by the valuer

is required where the evidence does

not provide a clear distinction between

market type assets and existing use

assets.

Derecognition

Upon disposal or derecognition of an

item of property, any revaluation relating

to that asset is retained in the asset

revaluation surplus.

Asset Revaluation Reserve

The asset revaluation reserve is used to

record increments and decrements on

the revaluation of non-current assets on

a class of assets basis.

Depreciation

All non-current assets having a limited

useful life are systematically depreciated

over their estimated useful lives in a

manner that reflects the consumption of

their future economic benefits.

Depreciation is calculated using the

straight line method, using rates which

are reviewed annually. Estimated useful

lives for each class of depreciable asset

are:

2017/18

Buildings 10 to 40 years

Infrastructure 10 years

Leasehold Improvements (a) 5 to 15 years

Motor vehicles 5 years

Machinery, Plant and Equipment 5 years

Furniture and Fittings 5 years

Computer Equipment (b) 3 to 7 years

Software (c) 2 to 15 years

(a) Leasehold Improvements useful life will depend on duration of lease.(b) Rate reflects the estimated economic life of the asset.(c) Software that is integral to the operation of related hardware.

Land is not depreciated.

Notes to the Financial Statements

(i) Intangible Assets

Capitalisation/Expensing of Assets

Acquisitions and internally generated

intangible assets costing over $50,000

are capitalised. The cost of utilising the

assets is expensed (amortised) over their

useful life.

All acquired and internally developed

intangible assets are initially measured

at cost.

The cost model is applied for

subsequent measurement requiring

the asset to be carried at cost less

any accumulated amortisation and

accumulated impairment losses.

Amortisation for intangible assets

with finite useful lives is calculated

for the period of the expected benefit

(estimated useful life which is reviewed

annually) on the straight line basis using

rates which are reviewed regularly. All

intangible assets controlled by RWWA

have a finite useful life and zero residual

value.

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The expected useful lives for each class

of intangible asset are:

(a) Software that is not integral to the operation of any related hardware.

Computer Software

Software that is an integral part of

the related hardware is recognised as

property, plant and equipment. Software

that is not an integral part of the related

hardware is recognised as an intangible

asset.

Web Site Costs

Web site costs are charged as expenses

when they are incurred unless they relate

to the acquisition or development of an

asset when they may be capitalised and

amortised. Generally, costs in relation

to feasibility studies during the planning

phase of a web site, and ongoing costs

of maintenance during the operating

phase are expensed. Costs incurred in

building or enhancing a web site, to the

extent that can be reliably measured,

are capitalised to the extent that they

represent probable future economic

benefits.

Domain Names

Domain names have a finite useful life

and are carried at cost less accumulated

amortisation and accumulated

impairment losses.

(j) Impairment of AssetsProperty, plant and equipment,

infrastructure and intangible assets are

tested for any indication of impairment at

the end of each reporting period. Where

there is an indication of impairment,

the recoverable amount is estimated.

Where the recoverable amount is less

than the carrying amount, the asset

is considered impaired and is written

down to the recoverable amount and an

impairment loss is recognised. Where an

asset measured at cost is written down

to its recoverable amount, an impairment

loss is recognised in profit or loss. Where

a previously revalued asset is written

down to recoverable amount, the loss is

recognised as a revaluation decrement

in other comprehensive income. As

RWWA is a not-for-profit entity, unless a

specialised asset has been identified as

a surplus asset, the recoverable amount

is the higher of an asset’s fair value less

costs to sell and depreciated replacement

cost.

The risk of impairment is generally

limited to circumstances where an asset’s

depreciation is materially understated,

where the replacement cost is falling or

where there is a significant change in

useful life. Each relevant class of asset

is reviewed annually to verify that the

accumulated depreciation/amortisation

reflects the level of consumption or

expiration of the asset’s future economic

benefits and to evaluate any impairment

risk from falling replacement costs.

Intangible assets with an indefinite useful

life and intangible assets not yet available

for use are tested for impairment at the

end of the reporting period irrespective

of whether there is any indication of

impairment.

The recoverable amount of assets

identified as surplus assets is the higher

of fair value less costs to sell and the

present value of future cash flows

expected to be derived from the asset.

Surplus assets carried at fair value have

no risk of material impairment where

fair value is determined by reference

to market-based evidence. Where fair

value is determined by reference to

depreciated replacement cost, surplus

assets are at risk of impairment and the

recoverable amount is measured. Surplus

assets at cost are tested for indications of

impairment at the end of each reporting

period.

(k) Non-current Assets Classified as Held for SaleNon-current assets held for sale are

recognised at the lower of carrying

amount and fair value less costs to sell,

and are disclosed separately from other

assets in the Statement of Financial

Position.

(l) LeasesRWWA holds a number of operating

leases for buildings. Lease payments are

expensed on a straight line basis over the

lease term as this represents the pattern

of benefits derived from the leased

properties.

(m) Financial InstrumentsIn addition to cash, RWWA has three

categories of financial instrument:

• Receivables

• Financial assets at fair value through

profit or loss

• Financial liabilities measured at

amortised cost

These have been disaggregated into the

following classes:

Financial Assets

• Cash and cash equivalents

• Restricted cash and cash equivalents

• Receivables

• Investments

• Cash held in unit trusts

Financial Liabilities

• Payables

• Agents Deposits

Initial recognition and measurement of

financial instruments is at fair value which

normally equates to the transaction

cost or the face value. Subsequent

measurement of cash held in unit trusts is

at fair value using quoted prices from the

fund manager. Subsequent measurement

of other financial instruments is at

2017/18

Software (a) 2 to 15 years

Web site costs 3 to 5 years

Domain names 10 years

Notes to the Financial Statements

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amortised cost using the effective

interest method.

The fair value of short-term receivables

and payables is the transaction cost

or the face value because there is no

interest rate applicable and subsequent

measurement is not required as the

effect of discounting is not material.

(n) Cash and Cash EquivalentsFor the purpose of the Statement of

Cash Flows, cash and cash equivalent

(and restricted cash and cash equivalent)

assets comprise cash on hand and short

term deposits with original maturities

of six months or less that are readily

convertible to a known amount of cash

and which are subject to insignificant

risk of changes in value.

(o) Accrued SalariesAccrued salaries represent the amount

due to staff but unpaid at the end of

the reporting period. Accrued salaries

are settled within a fortnight of the

reporting period end. RWWA considers

the carrying amount of accrued salaries

to be equivalent to its fair value.

(p) InventoriesInventories are measured at the lower

of cost and net realisable value. The

cost of inventories is based on the

first-in first-out principle, and includes

expenditure incurred in acquiring the

inventories and bringing them to their

existing location and condition.

Inventories not held for resale are

measured at cost unless they are no

longer required, in which case they are

measured at net realisable value.

(q) ReceivablesReceivables are recognised at original

invoice amount less an allowance

for any uncollectible amounts (i.e.

impairment). The collectability of

receivables is reviewed on an ongoing

basis and any receivables identified as

uncollectible are written-off against

the allowance account. The allowance

for uncollectible amounts (doubtful

debts) is raised when there is objective

evidence that RWWA will not be able to

collect its debts. The carrying amount

is equivalent to fair value as it is due for

settlement within 30 days. Agents settle

on a weekly basis.

(r) PayablesPayables are recognised at the amounts

payable when RWWA becomes obliged

to make future payments as a result of

a purchase of assets or services. The

carrying amount is equivalent to fair

value, as settlement is generally within

30 days.

(s) ProvisionsProvisions are liabilities of uncertain

timing and amount and are recognised

where there is a present legal or

constructive obligation as a result of

a past event and when the outflow

of resources embodying economic

benefits is probable and a reliable

estimate can be made of the amount of

the obligation. Provisions are reviewed

at the end of each reporting period.

(i) Provisions – Employee Benefits

All annual leave and long service leave

provisions are in respect of employees’

services up to the end of the reporting

period.

Annual Leave

Annual leave is not expected to be

settled wholly within 12 months after

the end of the reporting period and

is therefore considered to be ‘other

long-term employee benefits’. The

annual leave liability is recognised

and measured at the present value of

amounts expected to be paid when

the liabilities are settled using the

remuneration rate expected to apply at

the time of settlement.

When assessing expected future

payments consideration is given to

expected future wage and salary levels

including non-salary components

such as employer superannuation

contributions as well as the experience

of employee departures and periods of

service. The expected future payments

are discounted using market yields

at the end of the reporting period on

national government bonds with terms

to maturity that match, as closely as

possible, the estimated future cash

outflows.

The provision for annual leave is

classified as current liability as RWWA

does not have an unconditional right

to defer settlement of the liability for

at least 12 months after the reporting

period.

Long Service Leave

A liability for long service leave is

recognised after an employee has

completed two years of service based

on remuneration rates current as at the

end of the reporting period.

When assessing expected future

payments consideration is given to

expected future wage and salary levels

including non-salary components

such as employer superannuation

contributions, as well as the experience

of employee departures and periods of

service. The expected future payments

are discounted using market yields

at the end of the reporting period on

national government bonds with terms

to maturity that match, as closely as

possible, the estimated future cash

outflows.

Unconditional long service leave

provisions are classified as current

liabilities as RWWA does not have an

unconditional right to defer settlement

of the liability for at least 12 months

after the end of the reporting period.

Pre-conditional and conditional long

Notes to the Financial Statements

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service leave provisions are classified as

non-current liabilities because RWWA

has an unconditional right to defer

the settlement of the liability until the

employee has completed the requisite

years of service.

Superannuation

The Government Employees

Superannuation Board (GESB) and other

fund providers administer public sector

superannuation arrangements in Western

Australia in accordance with legislative

requirements. Eligibility criteria for

membership in particular schemes for

public sector employees varies according

to commencement and implementation

date.

Employees may contribute to the Gold

State Superannuation Scheme (GSS), a

defined benefit lump sum scheme now

closed to new members. Employees

commencing employment prior to 16

April 2007, who were not members of

GSS, became non-contributory members

of the West State Superannuation

Scheme (WSS).

Employees commencing employment on

or after 16 April 2007 became members

of the GESB Super Scheme (GESBS).

From 30 March 2012, existing members

of WSS or GESBS and new employees

became able to choose their preferred

superannuation fund provider. RWWA

makes contributions to GESB or other

fund providers on behalf of employees

in compliance with the Commonwealth

Government’s Superannuation

Guarantee (Administration) Act 1992.

Contributions to these accumulation

schemes extinguish RWWA’s liability for

superannuation charges in respect of

employees who are not members of the

Pension Scheme or GSS.

The GSS Scheme, the WSS Scheme, and

the GESBS, where the current service

superannuation charge is paid by RWWA

to the GESB, are defined contribution

schemes. The liabilities for current service

superannuation charges under the GSS,

the WSS, and the GESBS are extinguished

by the concurrent payment of employer

contributions to the GESB.

The GSS is a defined benefit scheme for

the purposes of employees and whole-

of-government reporting. However,

from an agency perspective, apart from

the transfer benefits, it is a defined

contribution plan under AASB 119.

(ii) Provisions – Other

Employment on-costs

Employment on-costs, including workers’

compensation insurance, are not

employee benefits and are recognised

separately as liabilities and expenses

when the employment to which they

relate has occurred. Employment

on-costs are included as part of ‘Other

expenses’ and are not included as part of

RWWA’s ‘Employee benefits expense’. The

related liability is included in ‘Employment

on-costs provision.’

(t) Superannuation Expense

Superannuation expense is recognised in

the Statement of Comprehensive Income

in profit or loss for defined contribution

plans, including the concurrent payment

of employer contributions to the GSS

scheme, as and when the contribution

falls due.

(u) Comparative Figures

Comparative figures are, where

appropriate, reclassified to be

comparable with the figures presented in

the current reporting period.

3. Judgements made by management in applying accounting policies

The preparation of financial statements

requires management to make

judgements about the application of

accounting policies that have a significant

effect on the amounts recognised in the

financial statements. RWWA evaluates

these judgements regularly.

Operating lease commitments

RWWA has entered into a number of

leases for buildings for branch agency

accommodation. Some of these leases

relate to buildings of a temporary nature

and it has been determined that the

lessor retains substantially all the risks

and rewards incidental to ownership.

Accordingly, these leases have been

classified as operating leases.

4. Key sources of estimation uncertainty

Key estimates and assumptions

concerning the future are based on

historical experience and various other

factors that have a significant risk of

causing a material adjustment to the

carrying amount of assets and liabilities

within the next reporting period.

Long Service Leave

Several estimations and assumptions

used in calculating RWWA’s long service

leave provision include expected future

salary rates, discount rates, employee

retention rates and expected future

payments. Changes in these estimations

and assumptions may impact on the

carrying amount of the long service leave

provision.

5. Disclosure of changes in accounting policy and estimates

Voluntary changes in accounting policy

There are no voluntary changes in

accounting policies during the reporting

period.

Notes to the Financial Statements

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Changes in accounting estimates

There have been no changes in accounting estimates during

the year.

Future impact of Australian Accounting Standards not yet

operative

RWWA cannot early adopt an Australian Accounting Standard

unless specifically permitted by TI 1101 ‘Applications of

Australian Accounting Standards and Other Pronouncements’

or by an exemption from TI 1101.

Where applicable, RWWA plans to apply the following

Australian Accounting Standards from their application date.

Title Operative for reporting periods

beginning on/after

AASB 9 Financial Instruments

This Standard supersedes AASB 139 Financial Instruments: Recognition and Measurement, introducing a number of changes to accounting treatments.

RWWA has not yet determined the application or the potential impact of the Standard.

1 Jan 2018

AASB 15 Revenue from Contracts with Customers

This Standard establishes the principles that RWWA shall apply to report useful information to users of financial statements about the nature, amount, timing and uncertainty of revenue and cash flows arising from a contract with a customer. RWWA has not yet determined the application or the potential impact of the Standard.

1 Jan 2019

AASB 16 Leases

This Standard introduces a single lessee accounting model and requires a lessee to recognise assets and liabilities for all leases with a term of more than 12 months, unless the underlying asset is of low value. RWWA has not yet determined the application or the potential impact of the Standard.

1 Jan 2019

AASB 1058 Income of Not-for-Profit Entities

This Standard clarifies and simplifies the income recognition requirements that apply to not for profit (NFP) entities, more closely reflecting the economic reality of NFP entity transactions that are not contracts with customers. Timing of income recognition is dependent on whether such a transaction gives rise to a liability, or other performance obligation (a promise to transfer a good or service), or a contribution by owner, related to an asset (such as cash or another asset). RWWA has not yet determined the application or the potential impact of the Standard

1 Jan 2019

AASB 1059 Service Concession Arrangements: Grantors

This Standard addresses the accounting for a service concession arrangement (a type of public private partnership) by a grantor that is a public sector agency by prescribing the accounting for the arrangement from the grantor’s perspective. Timing and measurement for the recognition of a specific asset class occurs on commencement of the arrangement and the accounting for associated liabilities is determined by whether the grantee is paid by the grantor or users of the public service provided. RWWA has not yet determined the application or the potential impact of the Standard.

1 Jan 2019

Notes to the Financial Statements

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Title Operative for reporting periods

beginning on/after

AASB 2010-7 Amendments to Australian Accounting Standards arising from AASB 9 (December 2010) [AASB 1, 3, 4, 5, 7, 101, 102, 108, 112, 118, 120, 121, 127, 128, 131, 132, 136, 137, 139, 1023 & 1038 and Int 2, 5, 10, 12, 19 & 127]

This Standard makes consequential amendments to other Australian Accounting Standards and Interpretations as a result of issuing AASB 9 in December 2010.

The mandatory application date of this Standard has been amended by AASB 2012-6 and AASB 2014-1 to 1 January 2018. RWWA has not yet determined the application or the potential impact of the Standard.

1 Jan 2018

AASB 2014-1 Amendments to Australian Accounting Standards

Part E of this Standard makes amendments to AASB 9 and consequential amendments to other Standards. It has not yet been assessed by RWWA to determine the application or potential impact of the Standard.

1 Jan 2018

AASB 2014-5 Amendments to Australian Accounting Standards arising from AASB 15

This Standard gives effect to the consequential amendments to Australian Accounting Standards (including Interpretations) arising from the issuance of AASB 15. RWWA has not yet determined the application or the potential impact of the Standard.

1 Jan 2018

AASB 2014-7 Amendments to Australian Accounting Standards arising from AASB 9 (December 2014)

This Standard gives effect to the consequential amendments to Australian Accounting Standards (including Interpretations) arising from the issuance of AASB 9 (December 2014).

RWWA has not yet determined the application or the potential impact of the Standard.

1 Jan 2018

AASB 2015-8 Amendments to Australian Accounting Standards – Effective Date of AASB 15

This Standard amends the mandatory application date of AASB 15 to 1 January 2018 (instead of 1 January 2017). It also defers the consequential amendments that were originally set out in AASB 2014-5. There is no financial impact arising from this standard.

1 Jan 2018

AASB 2016-3 Amendments to Australian Accounting Standards – Clarifications to AASB 15

This Standard clarifies identifying performance obligations, principal versus agent considerations, timing of recognising revenue from granting a licence, and, provides further transitional provisions to AASB 15.

RWWA has not yet determined the application or the potential impact.

1 Jan 2018

AASB 2016-7 Amendments to Australian Accounting Standards Deferral of AASB 15 for Not for Profit Entities

This Standard defers, for not for profit entities, the mandatory application date of AASB 15 to 1 January 2019, and the consequential amendments that were originally set out in AASB 2014 5.There is no financial impact arising from this standard.

1 Jan 2018

AASB 2016-8 Amendments to Australian Accounting Standards Australian Implementation Guidance for Not for Profit Entities

This Standard inserts Australian requirements and authoritative implementation guidance for not for profit entities into AASB 9 and AASB 15. This guidance assists not-for-profit entities in applying those Standards to particular transactions and other events. There is no financial impact.

1 Jan 2019

Notes to the Financial Statements

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Notes to and forming part of the Financial StatementsFor the year ended 31 July 2018

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Racing and Wagering Western AustraliaNotes to and forming part of the Financial StatementsFor the year ended 31 July 2018

2018 2017$000 $000

6 MarginMargin on Turnover inclusive of GST 347,909 341,116 Goods and Services Tax (26,395) (26,422)

321,514 314,694

Goods and Services Tax (GST) is not applied to the consumption of gambling services. It is however, applied to the operator's margin defined as the total amounts wagered less total monetary prizes.

The State provides reimbursement to gaming operations (including RWWA) for GST paid on the operator's margin on Fixed Odds Betting and Parimutuel Sports.

Treasurer's Instruction 1102 requires the GST reimbursement to be disclosed as a grant from the State Government rather than offset against the cost to which it applies.

7 Cost of SalesCost of Sales mainly include pooling fees, product fees and rebates. 84,557 80,047

84,557 80,047

8 Wagering TaxTax on Turnover 12,774 11,351 Tax on Margin 28,736 29,000

41,510 40,351

9 Other RevenueOther Revenue 15,450 13,192 Unclaimed Dividends 7,175 7,935

22,625 21,127

10 Net gain/(loss) on disposal of non-current assetsProceeds from disposal 81 285 Cost of disposal (46) (105) Net gain 35 180

11 Racing, Wagering and Support ServicesEmployee benefit expense (a) 40,936 39,304 Depreciation and Amortisation expense 12,747 14,175 Finance costs 15 16 Supplies and services 37,701 38,058 Advertising and promotions 27,102 24,198 Communications 5,762 5,274 Accommodation 7,037 6,954 Other expenses (b) 7,522 6,537

138,822 134,515

(a) An amount of $3,497,659 (2017: $3,647,307) was paid to Government Employees Superannuation Board, a related party of RWWA under the definitions of AASB124.(b) An amount of $292,349 (2017: $5,411,012) was paid to Insurance Commission and Riskcover Fund, a related party of RWWA under the definitions of AASB124. In 2017 two years premiums were paid which accounts for the variance year to year.

76

Notes to and forming part of the Financial Statements For the year ended 31 July 2018

Racing and Wagering Western AustraliaNotes to and forming part of the Financial StatementsFor the year ended 31 July 2018

2018 2017$000 $000

12 Grants and Subsidies to racingGrants and Subsidies expenseGrants (a) 4,547 5,821 Other Subsidies (a) 10,880 9,549 Racecourse Infrastructure Grants Program 510 664 Royalties for Regions 760 1,260

16,697 17,294

(a) Included in Grants and Other Subsidies is an amount of $976,572 (2017: $1,960,552) paid to the Western Australian Greyhound Racing Association, a related party of RWWA under the definitions of AASB124.

13 Distributions to Racing and SportsThoroughbreds 89,235 83,580 Harness 34,593 34,454 Greyhounds (a) 18,146 17,965 Sports (b) 4,567 2,896

146,541 138,895

(a) Greyhound distributions are paid to the Western Australian Greyhound Racing Association, a related party of RWWA under the definitions of AASB124.(b) Sports distributions are paid to Department of Local Government, Sport and Cultural Industries, a related party of RWWA under the definitions of AASB124.

14 Restricted cash and cash equivalentsCurrentRoyalties for Regions Fund (a) 1,060 1,455

1,060 1,455

(a) Unspent funds are committed to projects and programs in Western Australian regional areas.

15 InventoriesCurrentInventories not held for resale:

At CostTickets 625 697 Agency Spares and Consumables 118 114

743 811

16 ReceivablesCurrentReceivables 794 1,082 Accrued revenue 239 175 Other Debtors 2,688 1,073 Allowance for impairment of receivables (66) (71)

3,655 2,258

Reconciliation of changes in the allowance for impairment of receivables:Balance at start of year 71 105 Doubtful debts expense recognised in the income statement 20 65 Amounts written off during the year (25) (99) Balance at end of year 66 71

RWWA does not hold any collateral as security or other credit enhancements relating to receivables.

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For the year ended 31 July 2018

Notes to and forming part of the Financial Statements For the year ended 31 July 2018

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Racing and Wagering Western AustraliaNotes to and forming part of the Financial StatementsFor the year ended 31 July 2018

2018 2017$000 $000

17 InvestmentsNon-CurrentAt CostUnlisted shares 455 455

455 455

ReconciliationCarrying amount at start of period 455 455 Revaluations - - Disposals - - Carrying amount at end of period 455 455

18 Other AssetsCurrentPrepayments 4,154 4,377

4,154 4,377

Non-CurrentPrepayments 310 286

310 286

19 Non-Current assets classified as held for saleOpening balanceFreehold land 275 275 Buildings 159 166

434 441

Revaluation increment / decrementFreehold land (37) - Buildings (9) (7)

(46) (7)

Total assets classified as held for saleFreehold land 238 275 Buildings 150 159

388 434

Less assets soldFreehold land - - Buildings - -

- -

Closing balanceFreehold land 238 275 Buildings 150 159

388 434

78

Notes to and forming part of the Financial Statements For the year ended 31 July 2018Racing and Wagering Western AustraliaNotes to and forming part of the Financial StatementsFor the year ended 31 July 2018

2018 2017$000 $000

20 Property, Plant & EquipmentFreehold LandAt fair value 22,084 18,624 Accumulated impairment losses - -

22,084 18,624

BuildingsAt fair value 12,236 8,704 Accumulated depreciation (26) (98)

12,210 8,606

Leasehold ImprovementsAt cost 10,399 9,990 Accumulated depreciation (9,786) (9,302)

613 689

InfrastructureAt cost 5,216 4,984 Accumulated depreciation (4,675) (4,252)

541 731

Machinery, Plant & EquipmentAt cost 5,270 5,135 Accumulated depreciation (4,406) (3,878)

864 1,257

Computer EquipmentAt cost 48,147 43,032 Accumulated depreciation (34,303) (29,575)

13,844 13,456

Furniture and FittingsAt cost 4,055 4,076 Accumulated depreciation (3,731) (3,665)

324 411

Motor VehiclesAt cost 2,103 1,891 Accumulated depreciation (1,067) (914)

1,035 977

51,515 44,751

Freehold land and buildings except for the transfer of Manduarh racecourse assets from Western Australian Greyhound Racing Association were revalued as at 1 July 2017 by Western Australian Land Information Authority. The valuations were performed during the year ended 31 July 2018 and recognised at 31 July 2018. The fair value of all land and buildings has been determined by reference to recent market transactions. In undertaking the revaluation, fair value was determined by reference to market values for land: $17,708,500 (2017: $18,249,100); current use of land $375,000 (2017: $375,000); market value of buildings $5,627,000 (2017: $5,829,900); current use of buildings $2,653,700 (2017: $2,776,200).

Information on fair value measurement is provided in Note 21.

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For the year ended 31 July 2018

Notes to and forming part of the Financial Statements For the year ended 31 July 2018

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n-

(4

06)

(4

85)

(4

22)

(5

54)

(4

,861

)

(1

71)

(3

52)

(7

,250

)

C

arry

ing

amou

nt a

t end

of

per

iod

22,0

84

12,2

10

613

541

864

13,8

44

324

1,03

5

51,5

15

(a) T

rans

fer o

f Man

dura

h ra

ceco

urse

ass

ets

from

Wes

tern

Aus

tralia

n G

reyh

ound

Ass

ocia

tion.

2017

Car

ryin

g am

ount

at s

tart

of p

erio

d20

,260

8,

941

1,22

3

1,

192

1,60

2

14

,557

47

4

1,00

6

49

,255

Addi

tions

-

14

94

-

217

3,

828

182

39

9

4,73

4

Dis

posa

ls-

-

-

-

-

(1

0)

-

(95)

(1

05)

Impa

irmen

t-

-

-

-

-

(1

09)

-

-

(1

09)

R

eval

uatio

n (d

ecre

men

ts)/i

ncre

men

ts(1

,635

)

40

-

-

-

-

-

-

(1,5

95)

Dep

reci

atio

n-

(3

89)

(6

29)

(4

60)

(5

62)

(4

,810

)

(2

45)

(3

32)

(7

,427

)

C

arry

ing

amou

nt a

t end

of

per

iod

18,6

24

8,60

6

689

731

1,25

7

13,4

56

411

977

44,7

51

80

Notes to and forming part of the Financial StatementsFor the year ended 31 July 2018

Racing and Wagering Western AustraliaNotes to and forming part of the Financial StatementsFor the year ended 31 July 2018

21 Fair Value MeasurementsAssets measured at fair value:

Level 1 Level 2 Level 3

Fair value at end of period

$000 $000 $000 $0002018Non-Current assets classified as held for sale (Note 19) - 388 - 388 Land (Note 20) - 17,709 4,375 22,084 Buildings (Note 20) - 5,627 6,583 12,210

- 23,724 10,958 34,682

2017Non-Current assets classified as held for sale (Note 19) - 434 - 434 Land (Note 20) - 18,249 375 18,624 Buildings (Note 20) - 5,830 2,776 8,606

- 24,513 3,151 27,664

There were no transfers between Levels 1, 2 or 3 during the period.

Valuation techniques to derive Level 2 fair values

Fair value measurements using significant unobservable inputs (Level 3)

Land Buildings$000 $000

2018Fair value at start of period 375 2,776 Transfers 4,000 3,929 Revaluation increments recognised in Other Comprehensive Income - 19 Depreciation Expense - (141) Fair value at end of period 4,375 6,583

2017Fair value at start of period 375 2,830 Additions - - Revaluation increments recognised in Other Comprehensive Income - 88 Depreciation Expense - (142) Fair value at end of period 375 2,776

Level 2 fair values of Non-Current assets held for sale, Land and Buildings are derived using the market approach. Market evidence of sales prices of comparable land and buildings in close proximity is used to determine price per square metre.

Non-Current assets held for sale have been written down to fair value less costs to sell. Fair value has been determined by reference to market evidence of sales prices and comparable assets.

Racing and W

agering WA

Annual Report 2018

81

For the year ended 31 July 2018

Notes to and forming part of the Financial StatementsFor the year ended 31 July 2018

Business

Overview

R

eport on O

perationsD

isclosures and Legal C

ompliance

1

2

3

Racing and Wagering Western AustraliaNotes to and forming part of the Financial StatementsFor the year ended 31 July 2018

21 Fair Value Measurements continuedThere were no changes in valuation techniques during the period.

Valuation ProcessesTransfers in and out of a fair value level are recognised on the date of the event or change in circumstances that caused the transfer. Transfers are generally limited to assets newly classified as non-current assets held for sale as Treasurer's Instructions require valuations of land and buildings to be categorised within Level 3 where the valuations will utilise significant Level 3 inputs on a recurring basis.

Land (Level 3 fair values)Fair value for restricted use land is based on comparison with market evidence for land with low level utility (high restricted use land). The relevant comparators of land with low level utility is selected by the Western Australian Land Information Authority (Valuation Services) and represents the application of a significant Level 3 input in this valuation methodology. The fair value measurement is sensitive to values of comparator land, with higher values of comparator land correlating with higher estimated fair values of land.

Buildings (Level 3 fair values)Fair value for existing use specialised buildings assets is determined by reference to the cost of replacing the remaining future economic benefits embodied in the asset, i.e. the current replacement cost. Current replacement cost is generally determined by reference to the market observable replacement cost of a substitute asset of comparable utility and the gross project size specifications, adjusted for obsolescence. Obsolescence encompasses physical deterioration, functional (technological) obsolescence and economic (external) obsolescence.

Valuation using current replacement cost utilises the significant Level 3 input, consumed economic benefit/obsolescence of asset which is estimated by the Western Australian Land Information Authority (Valuation Services). The fair value measurement is sensitive to the estimate of consumption/obsolescence, with higher values of the estimate correlating with lower estimated fair values of buildings.

Basis of ValuationIn the absence of market-based evidence, due to the specialised nature of some non-financial assets, these assets are valued at Level 3 of the fair value hierarchy on an existing use basis. The existing use basis recognises that restrictions or limitations have been placed on their use and disposal when they are not determined to be surplus to requirements. These restrictions are imposed by virtue of the assets being held to deliver a specific community service.

Amendments to AASB 136

Mandatory application of AASB 2016-4 Amendments to Australian Accounting Standards – Recoverable Amount of Non-Cash-Generating Specialised Assets of Not-for-Profit Entities has no financial impact for RWWA as RWWA is classified as not-for-profit and regularly revalues specialised infrastructure, property, plant and equipment assets. Therefore, fair value of the recoverable amount of such assets is expected to be materially the same as fair value.

Significant Level 3 inputs used by RWWA are derived and evaluated as follows:Consumed economic benefit/obsolescence of assetThese are estimated by the Western Australian Land Information Authority (Valuation Services).

Selection of land with restricted utilityFair value for restricted use land is determined by comparison with market evidence for land with low level utility. Relevant comparators of land with low level utility are selected by the Western Australian Land Information Authority (Valuation Services)

82

Notes to and forming part of the Financial Statements For the year ended 31 July 2018Racing and Wagering Western AustraliaNotes to and forming part of the Financial StatementsFor the year ended 31 July 2018

21 Fair Value Measurements continued

Information about significant unobservable inputs (Level 3) in fair value measurements

Description and fair value as at 31 July 2018

Description and fair value as at 31 July 2017

Valuation technique Unobservable inputs

Relationship of unobservable inputs to fair value

Land $4,375,000

Land $375,000

Depreciated Replacement Cost

Method

Selection of land with similar approximate utility

Higher value of similar land increases estimated fair value

Buildings $6,583,000

Buildings $2,776,200

Depreciated Replacement Cost

Method

Consumed economic benefit/obsolescence of

asset

Greater consumption of economic benefit or increased obsolescence lowers fair value

Reconciliations of the opening and closing balances are provided in Note 20.

Racing and W

agering WA

Annual Report 2018

83

For the year ended 31 July 2018

Notes to and forming part of the Financial Statements For the year ended 31 July 2018

Business

Overview

R

eport on O

perationsD

isclosures and Legal C

ompliance

1

2

3

Racing and Wagering Western AustraliaNotes to and forming part of the Financial StatementsFor the year ended 31 July 2018

2018 2017$000 $000

22 Capital Works In ProgressTAB terminals and Racewall upgrade 1,212 1,332 Software upgrades 1,837 1,205 Computer equipment 769 603 Other 432 299

4,250 3,439

ReconciliationCarrying amount at start of period 3,439 2,395 Expenditure during the year 12,209 7,547 Assets capitalised during the year (11,398) (6,503) Carrying amount at end of period 4,250 3,439

23 Intangible AssetsComputer SoftwareAt cost 64,783 59,744 Accumulated amortisation (46,445) (40,030)

18,338 19,714

Domain NamesAt cost 25 25 Accumulated amortisation (25) (25)

- -

18,338 19,714

ReconciliationComputer SoftwareCarrying amount at start of period 19,714 24,761 Additions 5,040 1,769 Amortisation (5,496) (6,739) Impairment (920) (77) Carrying amount at end of period 18,338 19,714

Domain NamesCarrying amount at start of period - 2 Amortisation - (2) Carrying amount at end of period - -

18,338 19,714

84

Notes to and forming part of the Financial Statements For the year ended 31 July 2018

Racing and Wagering Western AustraliaNotes to and forming part of the Financial StatementsFor the year ended 31 July 2018

2018 2017$000 $000

24 Impairment of Assets

25 PayablesCurrentTrade payables 3,590 2,708 Unclaimed dividends and refunds 4,564 4,582 TAB payables and account betting deposits 22,233 18,316 Other payables 5,681 5,249 GST payable 1,843 2,142 Accrued expenses 7,146 6,319

45,059 39,316

Non-CurrentAgents deposits and property bonds 1,080 1,095

1,080 1,095

There were no indications of impairment to property, plant and equipment or intangible assets at 31 July 2018.

RWWA held no intangible assets with an indefinite useful life during the reporting period.

Racing and W

agering WA

Annual Report 2018

85

For the year ended 31 July 2018

Notes to and forming part of the Financial Statements For the year ended 31 July 2018

Business

Overview

R

eport on O

perationsD

isclosures and Legal C

ompliance

1

2

3

Racing and Wagering Western AustraliaNotes to and forming part of the Financial StatementsFor the year ended 31 July 2018

2018 2017$000 $000

26 ProvisionsCurrentEmployee benefits provisionAnnual Leave (a) 2,931 2,899 Long Service Leave (b) 3,915 3,982

6,846 6,881

Other provisionsEmployment on-costs (c) 405 411

405 411

7,251 7,292

Non-CurrentEmployee benefits provisionLong Service Leave (b) 1,113 929

1,113 929

Other provisionsEmployment on-costs (c) 66 55

66 55

1,179 984

(a) Annual leave liabilities have been classified as current as there is no unconditional right to defer settlement for at least 12 months after the reporting period. Assessments indicate that actual settlement of the liabilities is expected to occur as follows:

Within 12 months of the end of the reporting period 2,084 2,061 More than 12 months after the end of the reporting period 847 838

2,931 2,899

(b) Long service leave liabilities have been classified as current as there is no unconditional right to defer settlement for at least 12 months after the reporting period. Assessments indicate that actual settlement of the liabilities is expected to occur as follows:

Within 12 months of the end of the reporting period 1,156 1,129 More than 12 months after the end of the reporting period 3,872 3,782

5,028 4,911

(c) The settlement of annual and long service leave liabilities gives rise to the payment of employment on-costs including workers compensation premiums and payroll tax. The provision is measured at the present value of expected future payments. The associated expense, apart from the unwinding of the discount (finance cost), is included under 'Other expenses' at Note 11.

Movements in each class of provisions during the financial year, other than employee benefits, are set out below.

Employment on-cost provisionCarrying amount at start of period 466 520 Additional provisions recognised 2,612 2,291 Payments/other sacrifices of economic benefits (2,607) (2,345) Carrying amount at end of period 471 466

86

Notes to and forming part of the Financial Statements For the year ended 31 July 2018

Racing and Wagering Western AustraliaNotes to and forming part of the Financial StatementsFor the year ended 31 July 2018

2018 2017$000 $000

27 Grants and Subsidies from State GovernmentGovernment Grants 72,710 67,973 Government grants include WA Product Fee income (a) , GST and Wagering Tax rebate. 72,710 67,973

28 EquityContributed Equity:Balance at the start of the period 60,884 60,884 Contributions (a) 8,161 - Distributions - - Balance at the end of the period 69,045 60,884

ReservesGeneral reserve:Balance at the start of the period 37,996 43,076 Changes in accounting policy - - Transfer from Retained Earnings (9,097) (5,080) Balance at the end of the period 28,899 37,996

Asset revaluation reserve:Balance at the start of the period 17,619 19,214 Net revaluation increments/(decrements):

Land (578) (1,635) Buildings 70 40

Transfer to General Reserve - - Balance at the end of the period 17,111 17,619

Balance of reserves at end of the period 46,010 55,614

Retained earnings:Balance at the start of the period - - Result for the period (9,097) (5,080) Transfer from Asset Revaluation Reserve - - Transfer to General Reserve 9,097 5,080 Balance at the end of the period - -

(a) Transfer of Mandurah racecourse assets from Western Australian Greyhound Racing Association.

General reserveThe purpose of the general reserve is to cushion the effect of turnover fluctuations, or for supplementing payments made to the racing industry; to meet capital commitments, including the repayment of borrowings; to provide for capital development in the long term interests of RWWA; to meet contingent losses; and for the maintenance, repair, improvement and equipment of premises used by RWWA or its agencies.

(a) Government Grants include $58.4M (2017: $54M) in revenue received via the Gaming and Wagering Commission WA, from national and international wagering operators betting on Western Australian racing product. Generated from RWWA’s commercial activity, this revenue would otherwise be paid directly to RWWA by the wagering operators for distribution to WA race clubs, however, it is treated as a government grant to be consistent with Section 110B.(5) of the Gaming and Wagering Commission Act 1987, and Section 107A of the Racing and Wagering Western Australia Act 2003 .

Racing and W

agering WA

Annual Report 2018

87

Notes to and forming part of the Financial Statements

For the year ended 31 July 2018 For the year ended 31 July 2018

Business

Overview

R

eport on O

perationsD

isclosures and Legal C

ompliance

1

2

3

Racing and Wagering Western AustraliaNotes to and forming part of the Financial StatementsFor the year ended 31 July 2018

2018 2017$000 $000

29 Notes to the Statement of Cash Flows

Cash at bank earns interest at floating rates based on daily bank deposit rates.

Short-term deposits are made for varying periods of between one and six months, depending upon the immediate cash requirements of RWWA, and earn interest at the respective short-term deposit rates.

Reconciliation of cash

Cash at the end of the financial year as shown in the Statement of Cash Flows is reconciled to the related items in the Statement of Financial Position as follows:

Cash and cash equivalentsCash at bank 12,656 9,623 Cash on hand 77 81 Short-term deposits 62,000 57,500

74,733 67,205 Restricted cash (a) 1,060 1,455

75,793 68,660 (a) Royalties for Regions fund - unspent funds are committed to Racecourse Infrastructure Grants Program in WA regional areas.

Reconciliation of profit to net cash flows provided by/(used in) operating activitiesLoss for the period (9,097) (5,080)

Non cash items:Depreciation and amortisation expense 12,747 14,175 Net (gain) on sale of property, plant and equipment (35) (180) Impairment 920 187

Grants and Subsidies from State Government (72,710) (67,973)

(Increase)/decrease in assets:Receivables / Accrued Income (1,397) 1,040 Current inventories 67 (29) Prepayments 198 (387)

(Increase)/decrease in liabilities:Trade creditors 5,216 3,796 Other creditors 810 (1,892) Annual leave and long service leave provisions 150 (364) Other current provisions 5 (54) Change in GST Receivables/Payables (299) (267)

Net cash used in operating activities (63,425) (57,028)

88

Notes to and forming part of the Financial Statements For the year ended 31 July 2018

Racing and Wagering Western AustraliaNotes to and forming part of the Financial StatementsFor the year ended 31 July 2018

2018 2017$000 $000

30 Financial Instruments(a) Financial Risk Management objectives and policies

Credit Risk

Liquidity Risk

Market Risk

(b) Categories of Financial Instruments

Financial AssetsCash and cash equivalents (a) 75,793 68,660 Other financial assets 10,023 20,000 Receivables (b) 3,655 2,258 Investment 455 455

89,926 91,372

Financial LiabilitiesPayables (b) 43,216 37,174 Agent Deposits and property bonds 1,080 1,095

44,295 38,269 (a) Cash and cash equivalents includes restricted cash and cash equivalents.(b) The amount of receivables/payables excludes GST recoverable/payable to the ATO (statutory receivable/payable).

Financial Instruments held by RWWA are cash and cash equivalents, other financial assets, receivables, payables and agent deposits.

RWWA has limited exposure to financial risks. RWWA's overall risk management program focuses on managing the risks identified below.

Credit risk arises when there is the possibility of RWWA's receivables defaulting on their contractual obligations resulting in financial loss to RWWA. The majority of the authority's trading with customers is conducted on a cash basis. In addition, receivable balances are monitored on an ongoing basis with the result that RWWA's exposure to bad debts is minimal. Credit risk in other financial assets is mitigated by RWWA's investment policy which requires surplus funds to be predominantly invested in unit trusts with underlying assets with credit ratings above investment grade (BBB- or above as per a Standard & Poors rating). At the end of the reporting period there were no significant concentrations of credit risk.

The maximum exposure to credit risk at the end of the reporting period in relation to each class of recognised financial assets is the gross carrying amount of those assets inclusive of any provisions for impairment.

Liquidity risk arises when RWWA is unable to meet its financial obligations as they fall due. RWWA is exposed to liquidity risk through its trading in the normal course of business. RWWA has appropriate procedures to manage cash flows by monitoring forecast cash flows to ensure that sufficient funds are available to meet its commitments.

Market risk is the risk that changes in market prices such as foreign exchange rates, interest rates and unit trust prices will affect RWWA's income or the value of its holdings of financial instruments. RWWA does not trade in foreign currency and thus has no exposure to foreign currency risk.

Other than as detailed in the interest rate sensitivity analysis table, RWWA's exposure to interest rate risk is limited because it does not have any borrowings.

RWWA is exposed to unlisted unit trust price risk. This arises from investments held by RWWA and classified on the statement of financial position as financial assets at fair value.

To manage its price risk in these investments RWWA utilises the services of a professional firm of investment advisors. Price risk is mitigated by RWWA's investment policy that provide strategies for the minimisation of price risk with the diversification of risk across a number of classes of investment.

The carrying amounts of each of the following categories of financial assets and financial liabilities at the end of the reporting period are:

Racing and W

agering WA

Annual Report 2018

89

For the year ended 31 July 2018

Notes to and forming part of the Financial Statements For the year ended 31 July 2018

Business

Overview

R

eport on O

perationsD

isclosures and Legal C

ompliance

1

2

3

Racing and Wagering Western AustraliaNotes to and forming part of the Financial StatementsFor the year ended 31 July 2018

30 Financial Instruments continued(c) Financial Instrument Disclosures

Credit Risk

Carrying Amount

Not past due and not impaired

Up to 1 month 1-3 months

3 months to 1 year 1-5 years

More than 5 years

Impaired financial assets

$000 $000 $000 $000 $000 $000 $000 $000

2018Cash and cash equivalents 75,793 75,793 - - - - - - Other financial assets 10,023 10,023 - - - - - - Receivables (a) 3,655 2,691 - 729 235 - - - Investment 455 455 - - - - - -

89,926 88,962 - 729 235 - - -

2017Cash and cash equivalents 68,660 68,660 - - - - - - Other financial assets 20,000 20,000 - - - - - - Receivables (a) 2,258 1,677 - 370 211 - - - Investment 455 455 - - - - - -

91,372 90,792 - 370 211 - - -

(a) The amount of receivables excludes GST recoverable/payable to the ATO (statutory receivable/payable).

The following table discloses the average credit quality of other financial assets.

2018 2017$000 $000

A+ to AA- rating 23 10,000 AA rating 10,000 10,000

10,023 20,000

Liquidity Risk and Interest Rate ExposureThe following table details RWWA's interest rate exposure and the contractual maturity analysis of financial assets and financial liabilities. The maturity analysis section includes interest and principal cash flows. The interest rate exposure section analyses only the carrying amounts of each item.

The following table discloses RWWA's maximum exposure to credit risk and the ageing analysis of financial assets.

RWWA's maximum exposure to credit risk at the end of the reporting period is the carrying amount of financial assets as shown below.

The table discloses the ageing of financial assets that are past due but not impaired and impaired financial assets. The table is based on information provided to senior management of RWWA.

RWWA does not hold any collateral as security or other credit enhancements relating to the financial assets it holds.

Ageing analysis of financial assetsPast due but not impaired

90

Notes to and forming part of the Financial Statements For the year ended 31 July 2018

Rac

ing

and

Wag

erin

g W

este

rn A

ustra

liaN

otes

to a

nd fo

rmin

g pa

rt o

f the

Fin

anci

al S

tate

men

tsFo

r the

yea

r end

ed 3

1 Ju

ly 2

018

30Fi

nanc

ial I

nstr

umen

ts c

ontin

ued

Inte

rest

rate

exp

osur

e an

d m

atur

ity a

naly

sis

of fi

nanc

ial a

sset

s an

d fin

anci

al li

abilit

ies

Wei

ghte

d Av

erag

e Ef

fect

ive

Inte

rest

R

ate

Car

ryin

g Am

ount

Fixe

d In

tere

st

Rat

e

Varia

ble

Inte

rest

R

ate

Non

In

tere

st

Bear

ing

Nom

inal

Am

ount

Up

to 1

m

onth

1-3

mon

ths

3 m

onth

s to

1

year

1-5

year

sM

ore

than

5

year

s%

$000

$000

$000

$000

$000

$000

$000

$000

$000

$000

2018

Fina

ncia

l Ass

ets

Cas

h an

d ca

sh e

quiv

alen

ts2.

47%

75,7

93

37

,000

38,1

56

63

8

75

,793

18,7

93

50

,000

7,00

0

-

-

Oth

er fi

nanc

ial a

sset

s10

,023

-

-

10,0

23

10

,023

-

10

,023

-

-

-

R

ecei

vabl

es (a

)3,

655

-

-

3,

655

3,

655

3,

655

-

-

-

-

In

vest

men

t45

5

-

-

45

5

45

5

-

-

-

-

45

5

89

,926

37,0

00

38

,156

14,7

71

89

,926

22,4

48

60

,023

7,00

0

-

45

5

Fina

ncia

l Lia

bilit

ies

Paya

bles

(a)

43,2

16

-

-

43

,216

43,2

16

43

,216

-

-

-

-

Agen

t Dep

osits

and

pro

perty

bon

ds1.

45%

1,08

0

-

1,

080

-

1,08

0

-

-

-

-

1,08

0

44,2

96

-

1,08

0

43,2

16

44

,296

43,2

16

-

-

-

1,08

0

2017

Fina

ncia

l Ass

ets

Cas

h an

d ca

sh e

quiv

alen

ts2.

41%

68,6

60

37

,500

30,5

39

62

1

68

,660

15,1

60

30

,000

23,5

00

-

-

O

ther

fina

ncia

l ass

ets

20,0

00

-

-

20

,000

20,0

00

-

20,0

00

-

-

-

Rec

eiva

bles

(a)

2,25

8

-

-

2,25

8

2,25

8

2,25

8

-

-

-

-

Inve

stm

ent

455

-

-

455

455

-

-

-

-

455

91,3

73

37

,500

30,5

39

23

,334

91,3

73

17

,418

50,0

00

23

,500

-

45

5

Fina

ncia

l Lia

bilit

ies

Paya

bles

(a)

37,1

74

-

-

37

,174

37,1

74

37

,174

-

-

-

-

Agen

t Dep

osits

and

pro

perty

bon

ds1.

45%

1,09

5

-

1,

095

-

1,09

5

-

-

-

-

1,09

5

38,2

69

-

1,09

5

37,1

74

38

,269

37,1

74

-

-

-

1,09

5

(a) T

he a

mou

nt o

f rec

eiva

bles

/pay

able

s ex

clud

es G

ST re

cove

rabl

e/pa

yabl

e to

the

ATO

(sta

tuto

ry re

ceiv

able

/pay

able

).

Th

e am

ount

s di

sclo

sed

are

the

cont

ract

ual u

ndis

coun

ted

cash

flow

s of

eac

h cl

ass

of fi

nanc

ial l

iabi

litie

s

Mat

urity

Dat

esIn

tere

st R

ate

Expo

sure

Racing and W

agering WA

Annual Report 2018

91

For the year ended 31 July 2018

Notes to and forming part of the Financial Statements For the year ended 31 July 2018

Business

Overview

R

eport on O

perationsD

isclosures and Legal C

ompliance

1

2

3

Racing and Wagering Western AustraliaNotes to and forming part of the Financial StatementsFor the year ended 31 July 2018

30 Financial Instruments continued

Interest rate sensitivity analysis

Carrying amount Surplus Equity Surplus Equity$000 $000 $000 $000 $000

2018Financial AssetsCash and cash equivalents (a) 38,156 (382) (382) 382 382

Agent Deposits and property bonds 1,080 (11) (11) 11 11 Total Increase/(Decrease) (392) (392) 392 392

2017Financial AssetsCash and cash equivalents (a) 30,539 (305) (305) 305 305

Agent Deposits and property bonds 1,095 (11) (11) 11 11 Total Increase/(Decrease) (316) (316) 316 316

(a) Excludes cash amounts that do not earn interest or have a fixed interest rate.

Price Sensitivity Analysis

Carrying amount -5% change +5% change$000 $000 $000

2018Financial AssetsCash held in unit trusts 10,023 (501) 501

2017Financial AssetsCash held in unit trusts 20,000 (1,000) 1,000

Fair Values

-100 basis points +100 basis points

The following table represents a summary of the interest rate sensitivity of RWWA's financial assets and liabilities at the end of the reporting period on the surplus of the period for a 1% change in interest rates. It is assumed that a change in interest rates is held constant throughout the reporting period.

All financial assets and liabilities recognised in the Statement of Financial Position, whether they are carried at cost or fair value, are recognised at amounts that represent a reasonable approximation of fair value unless otherwise stated in the applicable notes.

A change in the market value of unlisted unit trust investments by +/-5% with all other variables held constant would have increased (decreased) RWWA's total surplus of the period as shown below.

92

Notes to and forming part of the Financial Statements For the year ended 31 July 2018

2018 2017$000 $000

31 Other Financial AssetsShort term investment in unit trusts 10,023 20,000

10,023 20,000

Valuation of Investments

Fixed interest unit trust

Fair Value Hierarchy

Recurring fair value measurementsLevel 1 Level 2 Level 3 Total

$000 $000 $000 $0002018Fixed interest unit trusts - 10,023 - 10,023

2017Fixed interest unit trusts - 20,000 - 20,000

There were no significant transfers between Level 1, 2 or 3 during 2018.

The table below provides information about the valuation technique and inputs utilised in fair value measurement (Level2):

Valuation Technique Inputs Utilised

Fixed Interest Unit Trusts Unit Price, Quantity

Level 3 relates to inputs that are unobservable. Unobservable inputs means that fair values are determined in whole or in part using a valuation technique (model) based on assumptions that are neither supported by prices from observable current market transactions in the same instrument nor are they based on available market data.

Quoted prices: Unit price quoted by the Fund Manager

Investment assets are initially recognised at cost and subsequently measured at fair value. The approach to measuring the fair value of investments is described below:

Unit trusts are priced using fund managers' quotes of unit prices determined on the basis of market value of the investment portfolio with an adjustment for transaction costs.

The Fair Value Hierarchy assigns rankings to the level of judgement which is applied in deriving inputs for valuation techniques used to measure fair value. The three levels of the Fair Value Hierarchy are as follows:

Level 1 is the preferred input for valuation and reflects unadjusted quoted prices in active markets for identical assets or liabilities which the economic entity can access at the end of the reporting period. A financial instrument is regarded as quoted in an active market if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service or regulatory agency and those prices represent actual and regularly occurring market transactions on an arms length basis.

Level 2 is the valuation of assets and liabilities either directly or indirectly based upon market observables other than quoted prices. For example: Investments with fair values based on broker quotes, investments in unlisted trusts with fair values obtained via fund managers and assets that are valued using the economic entity's own models whereby the majority of assumptions are market observable.

Racing and W

agering WA

Annual Report 2018

93

For the year ended 31 July 2018

Notes to and forming part of the Financial Statements For the year ended 31 July 2018

Business

Overview

R

eport on O

perationsD

isclosures and Legal C

ompliance

1

2

3

Racing and Wagering Western AustraliaNotes to and forming part of the Financial StatementsFor the year ended 31 July 2018

2018 2017$000 $000

32 CommitmentsCommitments are inclusive of GST

Capital CommitmentsCommitments in relation to capital expenditure contracted for at the reporting date but not recognised in the financial statements as liabilities, are payable as follows:

Within one year 504 122 504 122

The capital commitments include amounts for:Customer Information & Betting Terminals - 58 Racewalls rollout 52 64 IT systems 415 - TAB Radio 37 -

504 122

Lease CommitmentsCommitments in relation to leases contracted for at the reporting date but not recognised in the financial statements as liabilities, are payable as follows:

Within one year 4,409 4,956 Later than one year but not later than five years 10,519 13,344 Later than five years 1,099 5,108

16,027 23,408

Representing:Non-cancellable operating leases 16,027 23,408

16,027 23,408

The non-cancellable operating lease commitments include amounts for:Property 16,027 23,408

16,027 23,408

RWWA has entered into a number of property leases which are non-cancellable leases of varying lengths, with rent payable monthly in advance. Contingent rent provisions within the lease agreements allow annual increases and market reviews. In some instances an option exists to extend the lease at the end of the initial term.

Other Expenditure CommitmentsOther expenditure commitments contracted for at the end of the reporting period but not recognised as liabilities, are payable as follows:

Within one year 10,349 10,180 Later than one year but not later than five years 16,181 25,302

26,530 35,482

33 Contingent (assets) liabilitiesContract performance guarantees exist over future rental payments on TAB Agencies 30 30 Approximate amount receivable from Riskcover in future years for performance adjustment in prior years' Workers Compensation insurance premiums (2,168) (2,966)

34 Events occurring after the end of the reporting periodOn 9th October 2018 the State Government announced a ‘Racing Reform Package’ which included the proposed sale of the WATAB.

94

Notes to and forming part of the Financial Statements For the year ended 31 July 2018

Racing and Wagering Western AustraliaNotes to and forming part of the Financial StatementsFor the year ended 31 July 2018

2018 2017$000 $000

35 Compensation of Key Management PersonnelRWWA has determined that key management personnel include Ministers, board members and senior officers of RWWA. However RWWA is not obligated to compensate Ministers and therefore disclosures in relation to Ministers' compensation may be found in the Annual Report on State Finances.

Total compensation for key management personnel, comprising members of the accountable authority and other senior officers of RWWA for the reporting period are presented within the following bands:

Compensation of members of the accountable authorityCompensation Band ($)20,001 - 30,000 1 - 30,001 - 40,000 - 1 40,001 - 50,000 - 5 50,001 - 60,000 - 1 60,001 - 70,000 6 - 70,001 - 80,000 - 1 110,001 - 120,000 1 -

Short term employee benefits 484 351 Post employment benefits 41 29 Other long term benefits - - Termination benefits - - Total compensation of members of the accountable authority 525 380

Compensation of senior officersCompensation Band ($)40,001 - 50,000 - 1 130,001 - 140,000 (a) - 1 220,001 - 230,000 1 - 250,001 - 260,000 - 1 260,001 - 270,000 - 1 280,001 - 290,000 2 - 290,001 - 300,000 - 1 300,001 - 310,000 1 - 310,001 - 320,000 1 1 330,001 - 340,000 - 1 380,001 - 390,000 1 - 740,001 - 750,000 1 - 760,001 - 770,000 - 1

Short term employee benefits 2,086 1,955 Post employment benefits 218 231 Other long term benefits 242 227 Termination benefits - - Total compensation of senior officers 2,546 2,413

(a) Senior officers employed for partial periods of the financial year in their positions.

Racing and W

agering WA

Annual Report 2018

95

For the year ended 31 July 2018

Notes to and forming part of the Financial Statements For the year ended 31 July 2018

Business

Overview

R

eport on O

perationsD

isclosures and Legal C

ompliance

1

2

3

Racing and Wagering Western AustraliaNotes to and forming part of the Financial StatementsFor the year ended 31 July 2018

2018 2017$000 $000

36 Remuneration of AuditorRemuneration paid or payable to the Auditor General in respect of the audit for the current financial year is as follows:

Auditing the accounts, controls, financial statements and Key Performance Indicators 127 135 127 135

37 Related Party TransactionsRWWA is a wholly owned and controlled entity of the State of Western Australia. In conducting its activities, RWWA is required to pay various taxes and levies based on the standard terms and conditions that apply to all tax and levy payers to the State and entities related to the State.

Related parties of RWWA include:

• All Ministers and their close family members, and their controlled or jointly controlled entities;• All board members, senior officers and their close family members, and their controlled or jointly controlled entities;• Other departments and public sector entities, including related bodies included in the whole of government consolidated financial statements;• Associates and joint ventures, that are included in the whole of government consolidated financial statements;• Government Employees Superannuation Board (GESB).

Significant transactions with government related entities:

• Royalties for Regions Fund (Note 14)• Grants and Subsidies to Western Australian Greyhound Racing Association (Note 12)• Distributions to Western Australian Greyhound Racing Association and Department of Local Government, Sport and Cultural Industries (Note 13)• Insurance payments to the Insurance Commission and Riskcover Fund (Note 11)• Grant income from State Government (Note 27)• Remuneration for services provided by the Auditor General (Note 36)• Transfer of Mandurah Racecourse assets from Western Australian Greyhound Racing Association (Note 20 & Note 28)

Material transactions with other related parties

• Superannuation payments to GESB (Note 11)

During the year, RWWA had no material related party transaction with Ministers/board members/senior officers or their close family members or their controlled (or jointly controlled) entities for disclosure.

38 Related BodiesAt year end RWWA did not have any related bodies.

39 Affiliated BodiesAt year end RWWA did not have any affiliated bodies.

40 Supplementary Financial Information Write-offsBad Debts Written off (25) (99)

(25) (99)

96

Notes to and forming part of the Financial Statements For the year ended 31 July 2018

Rac

ing

and

Wag

erin

g W

este

rn A

ustra

liaN

otes

to a

nd fo

rmin

g pa

rt o

f the

Fin

anci

al S

tate

men

tsFo

r the

yea

r end

ed 3

1 Ju

ly 2

018

41Sc

hedu

le o

f Inc

ome

and

Expe

nse

by S

ervi

ce

2018

2017

2018

2017

2018

2017

2018

2017

$000

$000

$000

$000

$000

$000

$000

$000

INC

OM

ER

even

ueM

argi

n-

-

32

1,51

4

31

4,69

4

-

-

32

1,51

4

31

4,69

4

In

tere

st re

venu

e-

-

-

-

2,

146

2,

048

2,

146

2,

048

O

ther

reve

nue

10,0

10

8,60

9

12,5

98

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83

17

35

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27

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n on

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35

18

0

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8,60

9

334,

112

32

7,17

7

2,19

8

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346,

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9

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84,5

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erin

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acin

g Se

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W

ager

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-

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84,7

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ort S

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-

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29,6

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63

29,6

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29,7

63

Gra

nts

and

subs

idie

s16

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17

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-

-

-

-

16

,697

17

,294

D

istri

butio

n to

raci

ng a

nd s

ports

in

dust

ries

141,

974

135,

999

4,56

7

2,89

6

-

-

146,

541

138,

895

Tota

l Exp

ense

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4

17

2,53

7

21

5,39

1

208,

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29

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63

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7

411,

102

Prof

it/(L

oss)

bef

ore

Gra

nts

and

Subs

idie

s(1

73,0

74)

(1

63,9

28)

11

8,72

1

118,

375

(2

7,45

4)

(2

7,50

0)

(8

1,80

7)

(7

3,05

3)

Gra

nts

and

subs

idie

s fro

m S

tate

G

over

nmen

t (G

ST &

Wag

erin

g Ta

x R

eim

burs

emen

t)58

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54

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14

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13

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-

-

72

,710

67

,973

Prof

it/(L

oss)

for t

he p

erio

d(1

14,6

74)

(1

09,9

15)

13

3,03

1

132,

335

(2

7,45

4)

(2

7,50

0)

(9

,097

)

(5

,080

)

Rac

ing

Wag

erin

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nallo

cate

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Racing and W

agering WA

Annual Report 2018

97

Notes to and forming part of the Financial Statements

For the year ended 31 July 2018 For the year ended 31 July 2018

Business

Overview

R

eport on O

perationsD

isclosures and Legal C

ompliance

1

2

3

Racing and Wagering Western AustraliaNotes to and forming part of the Financial StatementsFor the year ended 31 July 2018

42 Explanatory Statement

Significant variations are considered to be those in excess of 10% or $2.5M.

Significant variances between actual results for 2017 and 2018

Comment 2018 2017Actual Actual Variance$000 $000 $000

RevenueMargin (1) 321,514 314,694 6,820 Interest Revenue 2,146 2,048 98 Other Revenue 22,625 21,127 1,498

GainsGain on disposal of non-current assets 35 180 (145)

ExpensesCost of sales (1) 84,557 80,047 4,510 Wagering Tax 41,510 40,349 1,161 Racing Services (2) 24,413 19,244 5,169 Wagering Services 84,757 85,509 (752) Support Services 29,652 29,763 (111) Grants and subsidies to racing 16,697 17,295 (598) Distribution to racing and sports (3) 146,541 138,895 7,646 Loss on disposal of non-current assets - - -

Grants and subsidies from State Government (4) 72,710 67,973 4,737

Comment(1)

(2)

(3)

(4)

AASB 1055 Budgetary Reporting standard requires specific budgetary disclosures in the general purpose financial statements of not-for-profit entities within the General Government Sector. RWWA falls within the category of Public Non-Financial Corporation Section, also RWWA does not publish annual estimates in the budget papers or the Statement of Corporate Intent.

Therefore, as prescribed under TI 945P, RWWA provides details of any significant variations between the actual results for 2017 and 2018.

The increase in margin and cost of sales is due to a slight increase in turnover including the inclusion of one extra week of turnover necessitated by the financial calendar. Every seventh year an extra week is required to realign with the financial reporting calendar.

The increase in Racing Services results from an increased focus on promotion of racing codes, further focus on industry development and planning, and increased animal welfare activities.

Outside the additional week mentioned in note (1), RWWA Distribution Policy for 2018 allowed for an increase in funding over 2017, with the aim of keeping distribution increases at sustainable levels.

Grants and subsidies from State Government increased from prior financial year due to an increase in racefields Income collected by Department of Local Government, Sport and Cultural Industries and paid to RWWA for distribution to registered racing clubs in Western Australia. Generated from RWWA’s commercial activity, this revenue would otherwise be paid directly to RWWA by the wagering operators for distribution to WA race clubs, however, it is treated as a government grant to be consistent with Section 110B.(5) of the Gaming and Wagering Commission Act 1987, and Section 107A of the Racing and Wagering Western Australia Act 2003.

98

Certification of Key Performance Indicators

For the year ended 31 July 2018

We hereby certify that the key performance indicators for Racing and Wagering Western Australia (RWWA) are

based on proper records, are relevant and appropriate for assisting users to assess the performance of RWWA and

fairly represent the performance of RWWA for the financial year ended 31 July 2018.

Jeff OvensChairman RWWA Board

15 October 2018

Anthony HasluckChairman Audit and

Risk Committee

15 October 2018

Racing and W

agering WA

Annual Report 2018

99

Business

Overview

R

eport on O

perationsD

isclosures and Legal C

ompliance

1

2

3

Perf

orm

ance

Man

agem

ent

Fram

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elat

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To G

over

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lsPe

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ce M

anag

emen

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mew

ork

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nshi

p To

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ernm

ent G

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Out

com

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s In

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whi

ch is

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and

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num

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ovis

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tegi

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al g

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Tur

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WA'

s ke

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e Fi

nanc

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l Rep

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with

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e cl

ubs

100

Key

Per

form

ance

Indi

cato

rsFo

r the

yea

r end

ed 3

1 Ju

ly 2

018

Rac

ing

and

Wag

erin

g W

este

rn A

ustra

liaK

ey P

erfo

rman

ce In

dica

tors

For t

he y

ear e

nded

31

July

201

8

Out

com

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pro

vide

an

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petit

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betti

ng s

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r Wes

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tral

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Effe

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enes

s In

dica

tors

Des

crip

tion

2018

Ac

tual

2018

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2017

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2016

Ac

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2015

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2014

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ult

Prim

ary

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ng S

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m

avai

labi

lity

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avai

labi

lity

of th

e be

tting

sys

tem

is

para

mou

nt to

the

TAB'

s ab

ility

to g

ener

ate

reve

nue.

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hig

h av

aila

bilit

y ta

rget

refle

cts

the

impo

rtanc

e R

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A pl

aces

on

this

. A

serv

ice

that

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liabl

e is

nec

essa

ry fo

r the

TA

B to

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%99

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99

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99

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the

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and

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e w

ith p

rior y

ear r

atio

s.

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f (FT

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ith s

taff

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ben

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ense

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ng

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of th

e la

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t cos

t cat

egor

ies

at R

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man

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g th

e FT

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vels

is a

n im

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nt p

art

of e

nsur

ing

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ffici

ent c

ompe

titiv

e bu

sine

ss.

No.

374

381

366

366

364

362

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e nu

mbe

r of F

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t the

end

of 2

017/

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as

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htly

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er th

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.

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ber o

f Bet

s Pr

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num

ber o

f bet

s pr

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dica

tor

of th

e TA

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com

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in th

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Th

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ets

for 2

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show

s a

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ht

incr

ease

of 2

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on

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et a

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incr

ease

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act

ual r

esul

ts m

ainl

y du

e to

in

clus

ion

of a

n ad

ditio

nal w

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extra

wee

k of

turn

over

is re

quire

d to

be

incl

uded

eve

ry

seve

nth

year

to re

alig

n w

ith th

e fin

anci

al

repo

rting

cal

enda

r.

Effic

ienc

y In

dica

tors

Des

crip

tion

2018

Ac

tual

2018

Ta

rget

2017

Ac

tual

2016

Ac

tual

2015

Ac

tual

2014

Ac

tual

Res

ult

Mar

gin

per e

mpl

oyee

Mar

gin

per e

mpl

oyee

is a

mea

sure

of t

he

com

petit

iven

ess

of th

e bu

sine

ss.

$000

860

860

902

922

937

Mar

gin

per e

mpl

oyee

is c

onsi

sten

t with

last

ye

ar.

Prof

it pe

r em

ploy

eePr

ofit

per e

mpl

oyee

, lik

e m

argi

n pe

r em

ploy

ee, i

s a

mea

sure

of t

he e

ffici

ency

of

the

busi

ness

in d

eliv

erin

g w

ager

ing

reve

nue

and

also

pro

vidi

ng ra

cing

and

inte

grity

se

rvic

es to

the

indu

stry

.

$000

367

365

360

376

369

Prof

it pe

r em

ploy

ee is

con

sist

ent w

ith p

rior

year

s.

Ret

urn

on a

sset

s (O

pera

ting

prof

it as

a

perc

enta

ge o

f tot

al a

sset

s)

Ret

urn

on a

sset

s (R

OA)

is a

wid

ely

acce

pted

in

dica

tor o

f the

effi

cien

cy in

the

use

of a

sset

s.%

81.0

84.7

80

.977

.2

74.9

75

.9

RO

A is

bro

adly

con

sist

ent w

ith ta

rget

and

last

ye

ar.

Racing and W

agering WA

Annual Report 2018

101

Key

Per

form

ance

Indi

cato

rsFo

r the

yea

r end

ed 3

1 Ju

ly 2

018

Business

Overview

R

eport on O

perationsD

isclosures and Legal C

ompliance

1

2

3

Out

com

e:To

ach

ieve

opt

imum

leve

l of f

undi

ng to

the

raci

ng in

dust

ry a

nd fo

r spo

rts.

Effe

ctiv

enes

s In

dica

tors

Des

crip

tion

2018

Ac

tual

2018

Ta

rget

2017

Ac

tual

2016

Ac

tual

2015

Ac

tual

2014

Ac

tual

Res

ult

Dis

tribu

tion

to In

dust

ry$0

0014

6,54

1

145,

852

13

8,89

5

140,

157

13

1,03

3

124,

205

%

Cha

nge

on p

rior

year

5.5

5.0

(0.9

)

7.

3

5.

5

5.

6

Gra

nts

to In

dust

ry (R

WW

A Fu

nded

)G

rant

s to

indu

stry

are

ess

entia

l to

prov

ide

the

safe

st p

ossi

ble

raci

ng e

nviro

nmen

t and

en

sure

the

inte

grity

of t

he ra

cing

pro

duct

.

$000

4,54

7

4,00

0

5,82

1

9,11

2

13,6

55

9,

494

Gra

nts

to in

dust

ry w

ere

slig

htly

abo

ve ta

rget

du

e to

add

ition

al g

rant

s pa

id d

urin

g th

e ye

ar.

Gra

nts

to In

dust

ry (W

A G

over

nmen

t Fun

ded)

$000

1,27

0

2,01

2

1,92

3

1,28

4

3,62

1

3,61

7

N

ot a

ll fu

ndin

g bu

dget

ed fo

r the

fina

ncia

l yea

r w

as d

istri

bute

d to

clu

bs d

urin

g 20

17/1

8. T

hese

am

ount

s w

ill be

dis

tribu

ted

durin

g 20

18/1

9.

Effic

ienc

y In

dica

tors

Des

crip

tion

2018

Ac

tual

2018

Ta

rget

2017

Ac

tual

2016

Ac

tual

2015

Ac

tual

2014

Ac

tual

Res

ult

Mar

gin

Mar

gin

is a

n im

porta

nt in

dica

tor o

f the

ca

paci

ty o

f RW

WA

to fu

nd th

e ra

cing

indu

stry

an

d sp

orts

.

$000

321,

514

31

4,69

4

330,

169

33

5,68

5

339,

474

M

argi

n in

crea

sed

com

pare

d to

last

yea

r pr

imar

ily d

ue to

a s

light

incr

ease

in tu

rnov

er

incl

udin

g th

e in

clus

ion

of a

n ex

tra w

eek

of

turn

over

.

Ope

ratin

g Pr

ofit

excl

udin

g th

e pr

ofit/

loss

from

sal

e of

as

sets

bef

ore

dist

ribut

ion

to

code

s.

Ope

ratin

g Pr

ofit

excl

udin

g th

e pr

ofit/

loss

from

sa

le o

f ass

ets

befo

re d

istri

butio

n to

cod

es

high

light

s th

e am

ount

of r

even

ue th

at h

as

been

gen

erat

ed fo

r dis

tribu

tion

to th

e ra

cing

cl

ubs.

$000

137,

409

13

3,63

5

131,

815

13

6,93

3

133,

464

O

pera

ting

prof

it is

hig

her t

han

last

yea

r due

to

the

incl

usio

n of

an

extra

wee

k's

turn

over

.

RW

WA'

s pr

imar

y pu

rpos

e is

to p

rovi

de a

su

stai

nabl

e fu

ture

for t

he W

est A

ustra

lian

raci

ng in

dust

ry, a

chie

ved

by m

aint

aini

ng th

e op

timum

leve

l of f

undi

ng fo

r the

raci

ng

indu

stry

.

The

resu

lts a

re c

onsi

sten

t with

RW

WA

dist

ribut

ion

polic

y an

d ta

rget

s.

102

Key

Per

form

ance

Indi

cato

rsFo

r the

yea

r end

ed 3

1 Ju

ly 2

018

Out

com

e:

Effe

ctiv

enes

s In

dica

tors

Des

crip

tion

2018

Ac

tual

2018

Ta

rget

2017

Ac

tual

2016

Ac

tual

2015

Ac

tual

2014

Ac

tual

Res

ult

Thor

ough

bred

s %

99.2

99

.9

99.7

99

.6

99.8

Har

ness

%99

.0

99.9

99

.8

99.5

99

.8

Gre

yhou

nds

%99

.4

100.

0

100.

0

99.8

99

.8

Thor

ough

bred

s %

9.7

10.4

10

.4

10.3

10

.7

Har

ness

%9.

8

9.

9

9.

5

9.

7

9.

7

Gre

yhou

nds

%7.

3

7.

6

7.

6

7.

6

7.

9

Annu

al G

row

th in

TAB

Tu

rnov

er o

n W

A ra

cing

The

TAB

acce

pts

bets

on

raci

ng a

nd s

ports

pr

oduc

t fro

m W

A, th

e Ea

ster

n St

ates

, and

In

tern

atio

nal J

uris

dict

ions

. Th

e gr

owth

in T

AB

turn

over

on

WA

Rac

ing

is a

n in

dica

tor t

hat

the

WA

prod

uct i

s se

en a

s an

attr

activ

e pr

opos

ition

, dem

onst

ratin

g a

qual

ity p

rodu

ct,

with

hig

h le

vels

of i

nteg

rity.

%(0

.90)

(6

.32)

(6

.91)

(4

.71)

1.

45

The

stab

le T

AB tu

rnov

er o

n W

A pr

oduc

t for

20

17/1

8 is

con

side

red

a go

od re

sult

in li

ght o

f th

e co

ntin

ued

econ

omic

clim

ate

in W

A.

Effic

ienc

y In

dica

tors

Des

crip

tion

2018

Ac

tual

2018

Ta

rget

2017

Ac

tual

2016

Ac

tual

2015

Ac

tual

2014

Ac

tual

Res

ult

$000

28.2

0

28.1

0

22.2

0

23.5

0

21.1

0

19.0

8

% C

hang

e on

prio

r ye

ar26

.99

28

.25

(5

.44)

11

.42

10

.54

1.

94

Rac

ing

and

Stew

ard

expe

nses

per

WA

race

m

eetin

g

The

raci

ng a

nd s

tew

ardi

ng fu

nctio

ns

perfo

rmed

by

RW

WA

are

para

mou

nt to

bot

h th

e de

velo

pmen

t and

inte

grity

of t

he ra

cing

in

dust

ry.

In d

eliv

erin

g th

ese

func

tions

, R

WW

A en

sure

s th

at th

e co

st o

f del

iver

y is

ke

pt u

nder

con

trol,

and

the

cost

per

mee

ting

is a

n im

porta

nt in

dica

tor o

f how

wel

l RW

WA

is a

t con

trollin

g th

e co

st o

f del

iver

y.

To e

ffici

ently

adm

inis

ter,

and

to p

rovi

de e

ffect

ive

lead

ersh

ip in

the

deve

lopm

ent,

inte

grity

and

wel

fare

of t

he ra

cing

and

wag

erin

g in

dust

ry in

Wes

tern

Aus

tral

ia.

The

resu

lts a

re c

onsi

sten

t with

targ

et. T

he

incr

ease

on

last

yea

r res

ults

was

mai

nly

due

to

an in

crea

sed

focu

s on

pro

mot

ion

of ra

cing

co

des,

indu

stry

dev

elop

men

t and

pla

nnin

g,

and

incr

ease

d an

imal

wel

fare

act

iviti

es.

A ke

y co

mpo

nent

in m

aint

aini

ng th

e in

tegr

ity

of th

e ra

cing

indu

stry

is a

n ef

ficie

nt a

nd

effe

ctiv

e dr

ug te

stin

g re

gim

e an

d th

e "%

of

win

ners

sw

abbe

d / r

etur

ned

nega

tive"

is a

key

in

dica

tor o

f the

dru

g te

stin

g re

gim

e im

pact

on

the

indu

stry

.

The

resu

lts a

re c

onsi

sten

t with

pre

viou

s ye

ars.

The

aver

age

num

ber o

f sta

rters

in W

A ra

ces

is a

n in

dica

tor o

f a h

ealth

y po

pula

tion

of

anim

als

avai

labl

e fo

r rac

ing

in W

A.

Aver

age

num

ber o

f sta

rters

in

WA

Rac

es (e

xclu

ding

no

n-TA

B M

eetin

gs)

% o

f Win

ners

Sw

abbe

d /

Ret

urne

d N

egat

ive

The

resu

lts a

re c

onsi

sten

t with

pre

viou

s ye

ars.

Racing and W

agering WA

Annual Report 2018

103

Key

Per

form

ance

Indi

cato

rsFo

r the

yea

r end

ed 3

1 Ju

ly 2

018

Business

Overview

R

eport on O

perationsD

isclosures and Legal C

ompliance

1

2

3

Out

com

e:

Effe

ctiv

enes

s In

dica

tors

Des

crip

tion

2018

Ac

tual

2018

Ta

rget

2017

Ac

tual

2016

Ac

tual

2015

Ac

tual

2014

Ac

tual

Res

ult

Thor

ough

bred

s %

99.2

99

.9

99.7

99

.6

99.8

Har

ness

%99

.0

99.9

99

.8

99.5

99

.8

Gre

yhou

nds

%99

.4

100.

0

100.

0

99.8

99

.8

Thor

ough

bred

s %

9.7

10.4

10

.4

10.3

10

.7

Har

ness

%9.

8

9.

9

9.

5

9.

7

9.

7

Gre

yhou

nds

%7.

3

7.

6

7.

6

7.

6

7.

9

Annu

al G

row

th in

TAB

Tu

rnov

er o

n W

A ra

cing

The

TAB

acce

pts

bets

on

raci

ng a

nd s

ports

pr

oduc

t fro

m W

A, th

e Ea

ster

n St

ates

, and

In

tern

atio

nal J

uris

dict

ions

. Th

e gr

owth

in T

AB

turn

over

on

WA

Rac

ing

is a

n in

dica

tor t

hat

the

WA

prod

uct i

s se

en a

s an

attr

activ

e pr

opos

ition

, dem

onst

ratin

g a

qual

ity p

rodu

ct,

with

hig

h le

vels

of i

nteg

rity.

%(0

.90)

(6

.32)

(6

.91)

(4

.71)

1.

45

The

stab

le T

AB tu

rnov

er o

n W

A pr

oduc

t for

20

17/1

8 is

con

side

red

a go

od re

sult

in li

ght o

f th

e co

ntin

ued

econ

omic

clim

ate

in W

A.

Effic

ienc

y In

dica

tors

Des

crip

tion

2018

Ac

tual

2018

Ta

rget

2017

Ac

tual

2016

Ac

tual

2015

Ac

tual

2014

Ac

tual

Res

ult

$000

28.2

0

28.1

0

22.2

0

23.5

0

21.1

0

19.0

8

% C

hang

e on

prio

r ye

ar26

.99

28

.25

(5

.44)

11

.42

10

.54

1.

94

Rac

ing

and

Stew

ard

expe

nses

per

WA

race

m

eetin

g

The

raci

ng a

nd s

tew

ardi

ng fu

nctio

ns

perfo

rmed

by

RW

WA

are

para

mou

nt to

bot

h th

e de

velo

pmen

t and

inte

grity

of t

he ra

cing

in

dust

ry.

In d

eliv

erin

g th

ese

func

tions

, R

WW

A en

sure

s th

at th

e co

st o

f del

iver

y is

ke

pt u

nder

con

trol,

and

the

cost

per

mee

ting

is a

n im

porta

nt in

dica

tor o

f how

wel

l RW

WA

is a

t con

trollin

g th

e co

st o

f del

iver

y.

To e

ffici

ently

adm

inis

ter,

and

to p

rovi

de e

ffect

ive

lead

ersh

ip in

the

deve

lopm

ent,

inte

grity

and

wel

fare

of t

he ra

cing

and

wag

erin

g in

dust

ry in

Wes

tern

Aus

tral

ia.

The

resu

lts a

re c

onsi

sten

t with

targ

et. T

he

incr

ease

on

last

yea

r res

ults

was

mai

nly

due

to

an in

crea

sed

focu

s on

pro

mot

ion

of ra

cing

co

des,

indu

stry

dev

elop

men

t and

pla

nnin

g,

and

incr

ease

d an

imal

wel

fare

act

iviti

es.

A ke

y co

mpo

nent

in m

aint

aini

ng th

e in

tegr

ity

of th

e ra

cing

indu

stry

is a

n ef

ficie

nt a

nd

effe

ctiv

e dr

ug te

stin

g re

gim

e an

d th

e "%

of

win

ners

sw

abbe

d / r

etur

ned

nega

tive"

is a

key

in

dica

tor o

f the

dru

g te

stin

g re

gim

e im

pact

on

the

indu

stry

.

The

resu

lts a

re c

onsi

sten

t with

pre

viou

s ye

ars.

The

aver

age

num

ber o

f sta

rters

in W

A ra

ces

is a

n in

dica

tor o

f a h

ealth

y po

pula

tion

of

anim

als

avai

labl

e fo

r rac

ing

in W

A.

Aver

age

num

ber o

f sta

rters

in

WA

Rac

es (e

xclu

ding

no

n-TA

B M

eetin

gs)

% o

f Win

ners

Sw

abbe

d /

Ret

urne

d N

egat

ive

The

resu

lts a

re c

onsi

sten

t with

pre

viou

s ye

ars.

104

Other Financial Disclosures

Ministerial Directives No Ministerial directives were received during the financial year.

Pricing PoliciesRWWA has discretion over pricing for goods and services rendered.

Capital Works In Progress

Project NameExpected Year of

Completion$000

Expected Cost to Complete

$000

Expected Total Cost of Project

$000

Racing Infrastructure 18/19 698 2,753

Wagering Infrastructure 18/19 2,803 25,216

Support Infrastructure 18/19 379 2,995

Image: Craig Staples returning with racehorse Great Shot after winning the 2017 Group One Railway Stakes

Racing and W

agering WA

Annual Report 2018

105

Other Financial Disclosures

Employment and Industrial Relations

Staff Profile

As at the end of the reporting year the number of people

employed at RWWA was 504 up from 482 in 2017. The

increase in headcount can be attributed predominantly

to the establishment of new roles within the Racing and

Information Services divisions. This included the formation of

the Racing Commercial Team, whilst within the Information

Services divisions three new project teams were recruited to

drive strategic and wagering outcomes.

Employee ProfileFull Time Equivalent (FTE)*

2017 2018

Full time 227 240

Part Time 27 33

Casuals 51 62

Maximum-Term Contracts 73 57

Total 374 392

*The employee profile is expressed above as full time equivalent numbers (FTE) rather than a headcount. FTE indicates the number of hours worked and paid, divided by weekly hours of 38.

Industrial RelationsWithin the reporting period the RWWA TAB Radio

Agreement 2015 and the RWWA General Staff Agreement

2015 were in operation and both of these agreements

have nominal expiry dates in August 2018. The RWWA TAB

Radio Agreement 2015 will continue to operate with an

administrative salary increase applied in line with the WA

Government State Wages Policy, and negotiations will soon

commence towards a replacement for the RWWA General

Staff Agreement 2015.

Racing Industry Safety, Health and Injury ManagementThroughout 2017/18 RWWA has supplied the WA

racing industry with the support and guidance to

ensure Occupational Safety and Health (OSH) risks are

managed and legal obligations are met through regular

communications and updates, publications, training,

audits and inspections to identify areas requiring further

improvement.

The focus for 2018/19 will be to continue to maintain a

proactive approach to managing risks and legal obligations

in the Occupational Safety and Health area, as well as

continued support and guidance to the racing industry as

we approach the introduction of new OSH legislation in

mid-2019.

Image: Bonnie Palise

Business

Overview

R

eport on O

perationsD

isclosures and Legal C

ompliance

1

2

3

106

Governance Disclosures

Contracts with Senior Officers

At the date of reporting, other than contracts of

employment or Directorship appointment, no Senior

Officers (Directors and Executives) or firms of which

Senior Officers are members or entities in which Senior

Officers have substantial interests had any interests in

existing or proposed contracts with RWWA. However,

it is noted that some Senior Officers own (in full and/or

part) racehorses and/or greyhounds that participate in

racing within Western Australia.

Insurance Premiums Paid to Indemnify Members of The Board

An insurance policy was undertaken to indemnify

members of the Board against any liability incurred

under sections 13 or 14 of the Statutory Corporations

(Liabilities of Directors) Act 1996. The amount of the

insurance premium paid for 2018 was $15,425.

2018

Aggregate amount of personal use expenditure for the reporting period

$788

Aggregate amount of personal use expenditure settled by the due date (within 5 working days)

$156

Aggregate amount of personal use expenditure settled after the period (within 5 working days)

$632

Aggregate amount of personal use expenditure out-standing at balance date.

$0

Unauthorised Use of Credit Cards

Officers of RWWA hold corporate credit cards where their functions

warrant usage of this facility. Despite each cardholder being reminded

of their obligations under RWWA’s credit card policy, 14 employees

inadvertently utilised their corporate credit card for personal use. The

matters were not referred for disciplinary action as the Chief Financial

Officer noted prompt advice and settlement of the personal use

amount and that the nature of the expenditure was immaterial and

characteristic of an honest mistake.

Image: TABtouch Park Cannington

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Governance Disclosures

RWWA’s Corporate Governance Principles

RWWA’s Board strongly supports the

principles of Corporate Governance and

is committed to maintaining the highest

standards within the organisation. This

is particularly important given that

RWWA has to balance commercial

decisions with the welfare and integrity

of the racing industry within a heavily

regulated environment. This is to ensure

that RWWA and the racing industry

remain viable and sustainable into the

future.

Board Powers, Structure, Composition and MembershipThe management of the business and

affairs of RWWA is under the direction of

the RWWA Board. Racing and Wagering

Western Australia Act 2003 gives

RWWA broad powers in relation to the

management of its affairs and also in

the management and regulation of the

Western Australian Racing Industry.

Whilst the Gaming and Wagering

Commission of Western Australia

regulates RWWA’s commercial wagering

activities, RWWA’s Board is not subject

to government direction. Part 2, Division

2 of the Racing and Wagering Western

Australia Act describes how the Board

is to be structured, its composition and

membership.

The Board comprises:

One chairperson appointed by the

Minister responsible for RWWA;

• Four members selected for their

expertise in management, finance,

business, commerce or information

technology, one of which has

knowledge of and experience in

regional development; and

• Three members representing each

of the racing codes, comprising

one representative from each code.

Boardroom Conduct and Relationships

The roles and delegated authorities

of the Board, Board Committees,

Chairperson, CEO and Executive

Members are clearly defined and

understood within RWWA.

Key roles of the Board include:

• Strategy – set goals and objectives

for the organisation and the racing

industry and provide strategic

direction and planning;

• Policies and procedures –

determine the organisation’s and

industry’s policies and priorities;

• Leadership and selection – appoint

the Chief Executive Officer;

• Monitor performance – monitor

the performance of the

organisation and management in

achieving its goals;

• Financial performance – oversee

the allocation of the organisation’s

finances and resources;

• Risk management – understand

the major risks involved in the

organisation’s operations;

• Relationship with the Minister,

regulators and other key

stakeholders – create a regular

flow of information to and from

the Board, public, employees and

industry stakeholders to contribute

to the marketing and maintenance

of RWWA’s good reputation; and

• Social responsibility – consider

the social, environmental, financial

and ethical impact on RWWA’s

stakeholders and the community

when making decisions.

Regulatory Disclosure and Stakeholders Communications A Board Member who has a notifiable

interest in matters involving RWWA must

conform to the following:

• Disclose this interest to the Board;

• Not vote on the matter; and

• Must not be present while the

matter or resolution is being

considered at the meeting.

However, if the Board has passed a

resolution that specifies the Board

Member, the interest and the matter,

and the other Board Members voting

for the resolution are satisfied, the

interest should not disqualify the Board

Member from considering or voting on

the matter (Sections 18 & 19, Schedule 1,

clause 8(1) of the Racing and Wagering

Western Australia Act 2003).

RWWA complies with the requirements

of disclosure as required by Racing

and Wagering Western Australia Act,

Financial Management Act 2006 and

applicable Australian Accounting

Standards.

RWWA maintains regular

communications with its stakeholders

through:

• Racing Industry Consultative

Groups;

• TAB Agents Advisory Council;

• Meetings with the Minister

responsible for RWWA; and

• Communications with employees.

Risk Management and Compliance

RWWA’s Compliance Risk and Legal

team is responsible for embedding and

maturing the organisation’s approach

to risk management and compliance, as

well as for the internal audit function.

The team reports quarterly to the Audit

and Risk Committee on risk, compliance

and audit matters.

The Board, through its Audit and Risk

Committee, assesses and monitors the

adequacy and effectiveness of the risk

management and compliance systems

and further oversight is provided

through various internal, external and

regulatory reviews, including the internal

audit program. The internal audit

program operates in accordance with

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an internal audit charter and the internal

audit plan. The risk-based internal audit

plan is compiled with reference to the

organisation’s key risks against which

other forms of assurance are mapped

to ensure targeted and effective internal

audit reviews.

Management also signs an annual

representation letter providing the

Board with assurance that its operations,

including financial reports, are based

on a sound system of risk management,

legislative compliance and internal

control.

IntegrityThe maintenance of the integrity

and fairness of the Racing Industry is

paramount to ensuring the confidence

and support of the public and participants

who support the Industry. In an industry

dependent on the public wagering upon

the outcome of races, it is imperative that

racing is conducted on a level playing

field and that the outcome of these races

is determined through honest means.

The importance of ensuring the

confidence of participants and supporters

is recognised by the Racing and Wagering

Western Australia Act 2003, by providing

an Integrity Assurance Committee

responsible for the primary oversight

of those aspects of RWWA’s functions

that relate to stewards, drug testing

and control, licensing and registration,

handicapping, racing appeals and rules of

racing. Critical to the regulation, control

and supervision of racing are the RWWA

Stewards, who are based at the three

codes of racing.

By virtue of the relevant Rules of Racing,

the Stewards are granted wide-ranging

powers in order for them to properly

control and regulate their respective

racing codes. It is the Stewards’ task

to ensure that the Rules of Racing are

adhered to and to investigate, determine

and where necessary penalise any

breaches of the Rules. The Stewards

are responsible for the conduct of race

meetings throughout the State in addition

to the conduct of all persons registered

in varying capacities in the various racing

codes.

Ethical Decision MakingRWWA considers the social,

environmental, financial and ethical

impact on RWWA’s stakeholders and

the community when making decisions.

RWWA has developed a Responsible

Wagering Policy to guide Board

Members, employees and TAB Agents

in the responsible provision of wagering

services and to ensure that RWWA

provides customers with the highest

standard of customer care.

Strategy, Planning and MonitoringTo fulfill RWWA’s Purpose, an annual

Statement of Corporate Intent and a

Strategic Development Plan (longer term

plan) are developed which documents

the plans, direction and vision for RWWA

and the Racing Industry. The Board

monitors and evaluates the progress of

implementing the Strategic and Business

plans of RWWA.

Encouraged Enhanced PerformanceAnnual budgets and business plans are

developed to meet the targets set in the

Statement of Corporate Intent and the

Strategic Development Plan and these

are linked into RWWA’s Performance

Management System.

SustainabilityRWWA considers sustainability an

important issue, not only for the

organisation but also for the Western

Australian Racing Industry. RWWA

believes that sustainability concentrates

on providing a sustainable future;

focusing on economic, environmental

and social elements.

Key initiatives include:

• Continuous OSH audits of all race

clubs;

• Responsible Wagering Program and

Code of Conduct;

• Equity and diversity within the

workplace; and

• Ensuring the financial viability of the

Western Australia Racing Industry

through financial practices.

• RWWA is committed to improving

its sustainability practices and

principles.

Governance Disclosures

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Other Legal Requirements

Other Wagering Costs

In compliance with section 175ZE of the Electoral Act

1907, RWWA reports that it incurred the following

expenditure in relation to account management, market

research, content, direct communications and advertising.

Total expenditure for 2017/18 was $18.33M and was

incurred as follows:

Record KeepingIn accordance with Section 61 of State Records Act 2000,

RWWA provides the following information in support of

compliance with the State Records Commission’s Standard 2

(Principle 6).

To maintain accurate records, a schedule is in place to conduct

testing of records integrity on an ongoing basis. This schedule

is used for checks of records held at offsite storage, on RWWA’s

intra-web and on central databases. The process includes cross

referencing of information recorded on the intra-web with

permanent and temporary records archived both onsite and

offsite.

Supplier$000

Advertising Agencies

Brand Agency 7,016

Market Research Agencies

Painted Dog 437

Media Advertising Organisations

Croc Media 283

Facebook 185

Twitter 12

Redwave Media 95

The West Australian 450

Western Sports Media (Sport FM) 36

Sky Channel 9,223

Signifi Media 339

Scott Hamilton Media 8

Media Agencies

OMD 84

Direct Mail

Engage Digital 34

Telstra SMS Services 47

Mobivate SMS 22

Mobivate Blackbook 5

Telstra Blackbook 57

Total 18,333

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Government Policy Requirements

Occupational Safety and Health

The RWWA Board and Executive team

continue to ensure a proactive and

positive approach to safety within the

organisation whilst also ensuring that all

health and safety legislative requirements

are met. The RWWA OSH Policy and

associated procedures seek to promote

the proactive management of workplace

safety, health and wellbeing throughout

all levels of the organisation by setting

measurable key performance indicators

that are tracked over a twelve month

period. The key performance indicators

have been identified in an effort to

control high risk work activities and

minimise risk exposure whilst improving

the standard of OSH management

throughout RWWA and the wider racing

industry.

2017/18 saw the expansion of the

RWWA OSH team with the addition of an

OSH coordinator, with a pure focus on

managing RWWA’s OSH obligations at

head office, whilst further OSH capability

was directed within the Racing Division

to the racing industry requirements.

This allowed for a greater focus of OSH

support to racing clubs, training centres

and GAP and Off the Track programs

whilst still improving the RWWA OSH

management system with updated

and strengthened policies, procedures

and providing a proactive approach to

risks at all RWWA divisions. In 2018/19

an improved safety induction process

for RWWA employees and contractors,

improved infrastructure, procedures and

training to support a progressive safety

culture within the workplace will be

progressed.

RWWA continues to maintain compliance

with the Workers Compensation

and Injury Management Act 1981

with the management of all workers

compensation claims including the

completion of return to work plans and

the provision of vocational rehabilitation

as and when required. For the next twelve

months this requirement will continue

to see regular workers compensation

claim reviews involving representatives

from RWWA and the insurer RiskCover

to ensure that active claims are being

appropriately managed and finalised in an

appropriate timeframe.

Insurance and Lost Time Injury Table

Measure

Results 2015-16(1)

Base year

Results 2016-17

Prior year

Results 2017-18(1)

Current reporting year

TargetsComments

towards targets

Number of fatalities 0 0 0 0 Target Achieved

Lost time injury and/or disease incidence rate

0.52 0.79 00 or 10% reduction in incidence rate

Reduction in total FTE numbers

Lost time injury and/or disease severity rate

0.26 0 00 or 10% reduction

in severity rateTarget Achieved

Percentage of injured workers returned to work (I) within 13 weeks

100% 100% 100%Actual result to be

statedTarget Achieved

Percentage of injured workers returned to work (ii) within 26 weeks

100% 100% 100%Greater than or equal to 80%

Target Achieved

Percentage of managers trained in occupational safety, health and injury management responsibilities, including refresher training within 3 years

71% 81% 61.76%Greater than or equal to 80%

Target not met due to

refresher training still being

undertaken

Note (1) The performance reporting examines a three year trend and as such the comparison base year is to be two years prior to the current reporting year (i.e. current year is 2017/18 and comparison year is 2015/16).

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